The fund, run by Pacific Investment Management Co. in Newport Beach, California, had estimated net redemptions of $4.5 billion in June, shrinking assets to $225.2 billion, Chicago-based research company Morningstar Inc. said today in an e-mailed statement. That’s down from a peak of $293 billion last year.
Gross, 70, has sought to stanch redemptions and reassure investors, telling clients Pimco funds will again rank at the top by year-end. Pimco is betting on a “new neutral” era characterized by global growth converging toward lower, more stable speeds and interest rates that remain below their pre-crisis equilibrium.
“Patient investors are rewarded over the long-term by sticking with core bond allocations in a diversified portfolio,” Mark Porterfield, a spokesman for Pimco, said in an e-mailed statement. “The Pimco Total Return fund (PTTRX) has outperformed its benchmark and a majority of its peers over the last 1, 3, 5, 10 and 15 years.”
The formerly top-ranked fund has seen its five-year ranking slip to the 58th percentile, according to data compiled by Bloomberg. Total Return climbed 0.2 percent in the past month, beating 84 percent of peers. Investors pulled a record $41.1 billion from the fund last year, according to Morningstar.
The exchange-traded fund version of Total Return received net investor money of $33 million in June, bringing assets to $3.4 billion, the data show.
Morningstar estimates deposits or withdrawals for mutual funds by computing the change in assets on a monthly basis that isn’t accounted for by performance. The fund’s actual withdrawals or deposits may differ from Morningstar’s estimates because of the timing of purchases and redemptions or dividend distributions.
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