Pimco Total Return Clients Said to Pull Under $3 Billion in MayMary Childs
Client redemptions from Pacific Investment Management Co.’s flagship fund last month slowed to the lowest level since July 2014, according to a person familiar with the matter.
Investors withdrew less than $3 billion from the Pimco Total Return Fund, compared with $5.6 billion in April and $7.3 billion in March, said the person, who asked not to be identified because the information isn’t public. Assets in the fund have plunged by more than 60 percent from a peak of $293 billion in April 2013.
Pimco’s flagship fund, which last month lost the title of the world’s biggest bond mutual fund, has faced record redemptions since Bill Gross left on Sept. 26 for Denver-based Janus Capital Group Inc. The fund, now run by Scott Mather, Mark Kiesel and Mihir Worah, returned 1.3 percent this year, outperforming 82 percent of similarly run funds, according to data compiled by Bloomberg.
Agnes Crane, a spokeswoman for the Newport Beach, California-based firm, declined to comment on the withdrawals, which were first reported by the Wall Street Journal.
The Vanguard Total Bond Market Index Fund, a passive product tracking a broad fixed-income benchmark, became the world’s biggest bond fund with $117.5 billion in assets at the end of April. It has returned 0.6 percent this year.
Gross, who co-founded Pimco in 1971 and built it into one of the world’s largest investment firms, departed after losing a power struggle. He now runs the $1.52 billion Janus Global Unconstrained Bond Fund.
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