Bill Gross just can’t catch a break. As investors flock to funds designed to make money even if interest rates increase, Gross’s Pacific Investment Management Co. is alone among the biggest bond managers in suffering withdrawals from the strategy.
In a category that’s been the most popular choice for fixed-income investors this year, the Pimco Unconstrained Bond Fund has lost $2.7 billion to redemptions. Similar offerings from Goldman Sachs Group Inc., JPMorgan Chase & Co. and BlackRock Inc. have seen a surge of deposits from investors seeking to avoid potential bond-market losses. The Pimco fund has trailed a majority of peers over the past three and five years, and has lagged behind most rivals over the past year.