Despite positive momentum in the equity markets, investors moved nearly $7 billion out of stock funds and some $9.6 billion into taxable bond funds in May, according to Morningstar.
But this trend didn’t help the PIMCO Total Return Fund (PTTRX), which saw its outflows worsen in May — when it shed $4.3 billion, the research group said Friday. This brings the fund’s year-to-date outflows to $15.7 billion and its cumulative outflow during the past 12 months to $59.6 billion.
“The fund has returned 3.3% in the first five months of the year but still lags the intermediate-term bond category,” the report said.
Adding to PIMCO’s woes, the PIMCO Low Duration Fund (PTLDX) lost $886 million to outflows.
On the plus side, though, the PIMCO International Low Volatility RAFI-Plus AR (PLVTX) had inflows of more than $1.5 billion for the month; its inflows year to date are about $3.5 billion. The PIMCO EMG International Low Volatility RAFI-Plus AR (PLVLX) had inflows in May of $1.0 billion.
Morningstar points out that the intermediate-term bond category enjoyed its third-straight month of inflows in May, as PIMCO lost market share in the category.
Some funds gaining assets in the period include the Metropolitan West Total Return Bond Fund (MWTIX), the Dodge & Cox Income Fund (DODIX) and the T. Rowe Price New Income Fund (PRCIX).
Also in May, the group says, the DoubleLine Total Return Fund (DBLTX) had inflows of nearly $500 million, its strongest level in more than a year.
In terms of total flows for the PIMCO fund family, outflows totalled $5.5 billion in May, $26.5 billion year to date and $88 billion for the past 12 months, the latest Morningstar data shows.
In contrast, Vanguard’s inflows were $11.6 billion in May, $57.2 billion year to date and $80.3 billion for last year.
Overall, investors added $23 billion to long-term mutual funds in May.
Morningstar points out that outflows from equity funds in the period were partly due to transfers from mutual funds to collective investment trusts (CITs) at Fidelity.