Tags: Vanguard | DoubleLine | Pimco | fund

Vanguard, DoubleLine Join Pimco Rivals With Record October Inflows

Friday, 07 Nov 2014 01:46 PM

The Vanguard Group was the latest U.S. asset manager to post record monthly inflows into its bond funds for October, benefiting from an exit of funds from rival Pacific Investment Management Co. after the departure of its co-founder Bill Gross.

Vanguard said Friday its bond funds and exchange-traded funds saw a record monthly inflow of $10.3 billion in October compared with $9.3 billion in September. BlackRock Inc's bond funds posted record monthly inflows of $5.2 billion in October, the most investors have poured into the firm's bond funds since May 1998, according to Morningstar data.

For September and October combined, Vanguard's bond funds and ETFs brought in nearly $20 billion, Vanguard said. Some $12 billion of that total was earmarked to the Valley Forge, Pennsylvania firm's largest bond fund: the $131 billion Vanguard Total Bond Market Index Fund.

TCW's Metropolitan West Asset Management unit, overseen by Pimco alum Tad Rivelle, also had inflows of $8.2 billion into its bond funds since Gross' exit in late September. In October alone, MetWest as a fund family posted a record inflow of $7.3 billion with the MetWest Total Return Bond attracting a record $6.7 billion, according to Morningstar.

Jeffrey Gundlach's DoubleLine Funds, an investment firm that has been a major rival of Pimco, reported its ninth consecutive month of inflows in October, totaling $2.38 billion, a record for monthly inflows so far this year.

"People have often pointed to our performance and attractive portfolio characteristics. But I think, now more than ever, clients and advisers are looking at the stability of a team," said Loren Fleckenstein, an analyst at Los Angeles-based DoubleLine.

Gross' exit, eight months after his top deputy Mohamed El-Erian quit amid acrimony, has triggered another round of speculation in the bond market over leadership stability and accelerating outflows from Pimco.

On Monday, Pimco rehired Marc Seidner as chief investment officer of non-traditional strategies, the sixth CIO named since El-Erian's departure.

DoubleLine, TCW, BlackRock and Vanguard have enjoyed robust inflows as Pimco reported outflows of $48.3 billion across its open-ended funds in October following the surprise departure of Gross, adding to $25.5 billion of withdrawals in the previous month, according to Morningstar data earlier this week.

Josh Barrickman, portfolio manager of the Vanguard Total Bond Market Index Fund, said: "I think as some investors reevaluate their bond investments, Vanguard is a pretty logical choice."

© 2017 Thomson/Reuters. All rights reserved.

 
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The Vanguard Group was the latest U.S. asset manager to post record monthly inflows into its bond funds for October, benefiting from an exit of funds from rival Pacific Investment Management Co. after the departure of its co-founder Bill Gross.
Vanguard, DoubleLine, Pimco, fund
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2014-46-07
Friday, 07 Nov 2014 01:46 PM
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