Wednesday, June 5, 2013

Pimco Flagship Has First Withdrawals Since 2011



From Bloomberg: Bill Gross’s Pimco Total Return Fund, the world’s largest mutual fund, suffered the first client withdrawals since 2011 last month as global bond markets tumbled the most in nine years.  Investors pulled $1.32 billion from the $285 billion fund, according to estimates from Chicago-based research firm Morningstar . An exchange-traded version of the Total Return (BOND) fund saw clients pull an estimated $64.4 million, the first ever withdrawals since the ETF’s inception in 2012.

A bet on U.S. government debt hurt Gross last month as Treasuries tumbled 2 percent amid speculation a strengthening U.S. economy will allow the Federal Reserve to reduce its monetary stimulus. Gross’s fund declined 1.9 percent last month through May 30, its biggest monthly loss since September 2008,…


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