Bill Gross’s Pimco Total Return Fund Draws $124 Million

Bill Gross’s Pimco Total Return Fund (PTTRX), the world’s biggest mutual fund, attracted $124 million in May, according to Morningstar Inc. (MORN), as it outperformed its peers.

The fifth straight month of net deposits followed the addition of $2.7 billion the previous month. The fund’s assets climbed to a record $258.7 billion in April. Investors pulled about $3 billion from the fund in the three months ended Dec. 31, bringing withdrawals last year to about $5 billion, said Chicago-based Morningstar.

Pacific Investment Management Co.’s Total Return Fund has advanced 5.6 percent in 2012, beating 98 percent of similarly managed funds, according to data compiled by Bloomberg. This year investors added a net $4.5 billion, Morningstar’s data show.

Gross, who eliminated Treasuries from the fund more than a year ago, reversed his position and boosted the portion of assets in U.S. government and Treasury debt to 38 percent as of the end of January. He reduced Treasuries to 31 percent and held 53 percent of assets in mortgages as of April 30, according to Pimco’s website.

Pimco, based in Newport Beach, California, is a unit of the Munich-based insurer Allianz SE. (ALV)

To contact the reporters on this story: Alexis Leondis in New York at aleondis@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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