PIMCO Outflows Continue in April as DoubleLine Sees Momentum

Morningstar estimates that more than $3 billion left Bill Gross’ flagship Total Return Fund in the past month

The PIMCO Total Return Fund saw $3.1 billion in April outflows; its DoubleLine counterpart gained $134 million, Morningstar reported. The PIMCO Total Return Fund saw $3.1 billion in April outflows; its DoubleLine counterpart gained $134 million, Morningstar reported.

Bill Gross' annus horribilis just got worse. 

The PIMCO Total Return Fund lost an estimated $3.1 billion of client assets in April, Morningstar said Thursday. Total assets in the fund at the end of April were about $230 billion, according to the research group’s latest estimates.  

(These figures do not include assets held in non-U.S. versions of the fund or ETF.)

PIMCO’s Total Return ETF outflows for April 2014 were some $75 million. Total assets in the fund at the end of April were $3.4 billion.

In contrast, the DoubleLine Total Return Bond Fund had inflows of about $134 million in April, according to Morningstar estimates; its total assets as of April 30 were an estimated $32 billion, the research group says.

DoubleLine, though, says that it actually had inflows of $320 million into its total return bond product and overall inflows of $442.5 million.   

(Morningstar estimates fund flows by computing the change in assets that is not explained by the performance of the fund and acknowledges that the fund’s actual flows may differ from its estimates for "a host of reasons.")

In March, Morningstar reported that $7.4 billion moved out of the PIMCO fund family, and $15.5 billion was withdrawn in the first quarter. PIMCO’s flagship Total Return Fund experienced $3.1 billion in outflows in the third month of the year, when other intermediate-term bond funds had $7.4 billion of inflows.

Performance Picture

Institutional shares of the PIMCO Total Return Fund (PTTRX) were up about 0.74% in April and 2.05% for the year through April 30. That put the fund in the 68th  percentile for the month and the 83rd  percentile year to date for the intermediate-term bond group.

PIMCO’s Total Return ETF (BOND), though, rose 0.73% in April and is up 2.89% year to date. That put it in the 70th  percentile for the month, but also in the top percentile so far in 2014.

The DoubleLine Total Return Bond I Fund (DBLTX) underperformed its PIMCO counterpart for April, with returns of 0.69%, putting it in the 79th performance percentile. However, it outperformed its rival year to date — with returns of 3.1%; that result put it in the 29th percentile in terms of performance in its investment category. 

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