Bill Gross’s Unconstrained Bond Fund Lured $29 Million in Juneby
Janus fund had positive flows for fourth consecutive month
Performance for Gross’s fund is beating 67% of peers this year
Investors added a net $29 million to Bill Gross’s Janus Global Unconstrained Bond Fund in June, the fourth consecutive month of positive flows, according to data compiled by Bloomberg.
Assets rose to $1.48 billion as of June 30 for the fund, which returned 3.35 percent this year through July 8, outperforming 67 percent of its Bloomberg peers. It has returned 2.4 percent since Gross took over management in October 2014, after his acrimonious departure from Pacific Investment Management Co. About half of the fund’s money is from Gross’s personal fortune, estimated at approximately $2 billion.
The June inflow is down from $143 million in May, the mutual fund’s biggest net addition since December 2014. It has been attracting money even as returns trail the Barclays U.S. Aggregate Bond Index, the broad benchmark for intermediate-term fixed-income funds.
The Janus fund takes positions based on Gross’s reading of macroeconomic events by investing in assets including derivatives and fixed-income securities, usually with a short-time effective duration.
In a July 8 interview, Gross said he’s shorting high-yield bonds since he thinks they’re too risky. He said he had a “long night” on June 23 that “turned out well” when U.K. voters passed a referendum to exit the European Union, a surprise outcome that sparked market volatility as investors balanced currency and Treasury positions.
“It is not the way capitalism should be run,” Gross said in the July 8 Bloomberg Television interview. “It is a casino as opposed to a Midwestern farm.”
Estimates for the Janus fund’s flows are based on the change in assets over the month that isn’t accounted for by performance or reinvested dividends. The number may vary from actual figures and from estimates compiled by other data providers.
Erin Passan, a Janus spokeswoman, declined to comment.