Gross’s Pimco Total Return Attracted $1.4 Billion in June

Bill Gross’s Pimco Total Return Fund (PTTRX), the world’s biggest mutual fund, attracted $1.4 billion in June, according to Morningstar Inc. (MORN), as it outperformed its peers.

The sixth straight month of net deposits contributed to $5.9 billion in new cash for the year through June 30, overcoming last year’s withdrawals of about $5 billion, Chicago- based Morningstar said today.

Pacific Investment Management Co.’s $263 billion Total Return Fund advanced 5.8 percent in 2012 through last week, beating 99 percent of similarly managed funds, according to data compiled by Bloomberg. Last month’s deposits were the second- highest of the year after April’s $2.7 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 increased Treasuries to 35 percent in May from 31 percent the prior month, the first increase since January, according to Pimco’s website.

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

To contact the reporter on this story: Alexis Leondis in New York at aleondis@bloomberg.net

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

Bill Gross, co-chief investment officer of Pacific Investment Management Co. Photographer: Tim Boyle/Bloomberg