Tags: Pimco | Flagship Fund | US Government | Bond Debt Holdings

Pimco's Flagship Fund Decreases US Govt-Related Holdings in January

Wednesday, 11 Feb 2015 12:48 PM

The Pimco Total Return Fund, the world's largest bond fund, ended January with a decrease in U.S. government-related holdings and increased its holdings in mortgage securities, according to the Newport Beach, Calif.-based firm's website.

The Pimco Total Return Fund had 37.71 percent exposure in U.S. government-related securities in January, down from 43.19 percent the previous month, and 30.27 percent exposure in mortgages, up from 25.43 percent, according to Pacific Investment Management Co.'s website.

U.S. government-related securities may include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities and interest rate swaps.

Pimco reported last week that its flagship Total Return Fund posted a 21th straight month of outflows in January. Pimco reported outflows of $11.6 billion for the month for that fund, down from $19.4 billion of withdrawals the previous month.

The Pimco Total Return Fund had assets under management of $134.6 billion at the end of January, down from a peak of $292.9 billion in April 2013.

The Pimco Total Return Fund upped its holdings in non-U.S. developed debt to 0.26 percent in January from 0.07 percent in December while it marginally increased its exposure in U.S. credit to 14.01 percent in January from 13.56 percent the previous month.

In January, the fund's exposure in emerging markets increased a touch to 17.94 percent from 17.67 percent in the earlier month, Pimco said.

Management turmoil at Pimco spooked many investors last year, with then-Chief Executive Mohamed El-Erian leaving amid reports of acrimony with firm co-founder Bill Gross.

In September, Gross shocked markets by leaving Pimco for smaller rival Janus Capital, which prompted a spike in outflows.

In a statement last week, Pimco was quick to highlight the quick comeback in performance since Gross' exit.

Pimco said the Pimco Total Return Fund delivered a net after-fee return of 3.99 percent in the four months since the end of September, or 1.11 percentage points greater than the Morningstar Intermediate-Term Bond Average during that period.

Last month, the fund returned 2.64 percent, net of fees, and returns of 0.54 percentage points above its benchmark and 0.89 percentage points above the Morningstar category.

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The Pimco Total Return Fund, the world's largest bond fund, ended January with a decrease in U.S. government-related holdings and increased its holdings in mortgage securities, according to the Newport Beach, Calif.-based firm's website.
Pimco, Flagship Fund, US Government, Bond Debt Holdings
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2015-48-11
Wednesday, 11 Feb 2015 12:48 PM
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