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Pimco Total Return Fund Posts January Cash Withdrawals of $1.6 Billion

Pimco Total Return Fund Posts January Cash Withdrawals of $1.6 Billion

(Dreamstime)

Monday, 06 February 2017 04:50 PM

Investors pulled $1.6 billion from the Pimco Total Return Fund in January, leaving assets under management of $75 billion, Morningstar data showed on Monday.

The Pimco Income Fund, widely seen by investors and analysts as Pimco's new flagship fund, posted $1.6 billion of inflows, resulting in assets under management of $73 billion, Morningstar said.

Pimco Income, which is overseen by Group Chief Investment Officer Dan Ivascyn, has been popular as an income-oriented alternative in the continuing low-yielding environment, while Pimco Total Return, once the world's largest bond fund at a peak of $292.9 billion in assets, has had mixed results.

Todd Rosenbluth, director of ETF and mutual fund research at CFRA, said total returns for Pimco Total Return are in the bottom quartile of its Lipper peer group on one-year and three-year bases, while Pimco Income is in the second quartile in the past year and the top quartile on a three-year basis.

"Investors should dig deeper to understand the differences between them - including the lower interest-rate sensitivity of the Income Fund - but for many, the stronger relative performance matters a lot," he said.

"While money continues to shift to passive strategies, active fixed-income funds that perform well will continue to gather assets."

Pimco's Ivascyn said Pimco Total Return has had a strong start to the year, returning 51 basis points over its benchmark in January. "Given the political and policy uncertainties in 2017, we expect there to be more opportunities in the market for investors who actively pursue them," Ivascyn said. 

© 2021 Thomson/Reuters. All rights reserved.


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Investors pulled $1.6 billion from the Pimco Total Return Fund in January, leaving assets under management of $75 billion, Morningstar data showed on Monday.
Pimco, fund, bond, investing
254
2017-50-06
Monday, 06 February 2017 04:50 PM
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