Gross’s Pimco Total Return Fund Attracts $2.5 Billion

Bill Gross’s Pimco Total Return Fund (PTTRX), the world’s biggest mutual fund, attracted $2.5 billion in November, the 11th straight month of net deposits.

The amount brings net new money contributed to the fund this year to about $17.1 billion and helped lift assets to $285 billion, Chicago-based research firm Morningstar Inc. (MORN) said today in an e-mail. Deposits of $2.8 billion in September were the highest this year.

Pacific Investment Management Co.’s Total Return Fund advanced 10.3 percent this year through yesterday, beating 95 percent of similarly run mutual funds, according to data compiled by Bloomberg. The fund lost $5 billion to withdrawals in 2011, according to Morningstar, as Gross endured what he termed “a stinker” after eliminating U.S. Treasuries early in the year and missing a rally when investors rushed to the safety of government-backed debt.

Gross increased his holdings of Treasuries in October for the first time since April after reducing Treasuries and government debt for three straight months. The allocation was 24 percent as of Oct. 31 compared with 20 percent a month earlier, according to the company’s website. In his monthly investment outlook posted yesterday, Gross said structural headwinds may reduce real economic growth below 2 percent in the U.S. and other developed nations.

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

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

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