Tags: Gross | Pimco | redemptions | bonds

Pimco Total Return Fund Had $7.5 Billion of Redemptions in July

Friday, 02 Aug 2013 12:35 PM

Bill Gross’s Total Return Fund, the world’s biggest mutual fund, had its third straight month of withdrawals as investors continued to flee bonds.

Clients pulled an estimated $7.5 billion from Pacific Investment Management Co.’s Total Return Fund, research firm Morningstar Inc. said today in an e-mailed statement. The withdrawals left the fund with $262 billion in assets at the end of July, Chicago-based Morningstar said.

Mark Porterfield, a spokesman for Newport Beach, California-based Pimco, didn’t immediately respond to an e-mail seeking comment on the withdrawals.

The flight from bond funds was triggered by Federal Reserve Chairman Ben S. Bernanke, who rattled markets in May and June by outlining a plan to end the central bank’s unprecedented asset purchases. Bernanke told reporters June 19 that policy makers may start decreasing those purchases later this year and end them by mid-2014 if the economy meets expectations.

Investors pulled about $60 billion from U.S. bond funds in June, the biggest monthly redemptions in records going back to 1961, according to estimates from the Investment Company Institute. They’ve pulled about $9.5 billion from the funds through July 24, according to ICI estimates.

Pimco Total Return Fund had a record $9.9 billion in redemptions during June as Pimco overall had $14.5 billion in net withdrawals.

© Copyright 2015 Bloomberg News. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved