Pimco Total Return Fund Drew $889 Million in December

Bill Gross’s Pimco Total Return Fund, the world’s biggest mutual fund, attracted $18 billion in investor deposits last year after beating most rivals.

The fund drew $889 million in December, its 12th straight month of deposits, helping lift assets to $285 billion, Chicago-based Morningstar Inc. said today in an e-mail. Deposits of $2.8 billion in September were the highest in 2012.

Pacific Investment Management Co.’s Total Return Fund rebounded from its first ever year of withdrawals in 2011 as it advanced 10.4 percent last year, beating 95 percent of rivals, according to data compiled by Bloomberg. The fund lost $5 billion to redemptions in 2011, according to Morningstar, as Gross trailed peers after eliminating U.S. Treasuries early in the year and missing a rally when investors rushed to the safety of government-backed debt.

Gross decreased his holdings of Treasuries in November after increasing them in October. The allocation was 23 percent as of Nov. 30 compared with 24 percent a month earlier, according to the company’s website. In his monthly investment outlook posted today, Gross said investors should be alert to the longer term inflationary risks of stimulus programs such as quantitative easing.

Pimco, based in Newport Beach, California, is a unit of Munich-based insurer Allianz SE and manages $1.9 trillion in assets.

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