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Latest PIMCO, DoubleLine Figures Shared by Morningstar, Fund Groups

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The flagship PIMCO Total Return Fund, formerly managed by Bill Gross, had estimated net outflows of $9.7 billion, or nearly 6%, in November 2014, according to Morningstar. Its assets were roughly $171 billion vs. $163 billion in October.

These figures, released in early December, excluded non-U.S. versions of the mutual fund and assets held in the Total Return ETF, which is managed by Newport Beach, California-based PIMCO.

(Meanwhile, Gross’ new Janus Global Unconstrained Bond Fund added $770 million in November, bringing its assets to $1.2 billion, Morningstar says.)

According to PIMCO, the Total Return Fund had outflows of about $9.5 billion. “Outflows from the Total Return Fund continued to slow significantly in November, ending the month 65% lower than flows the previous month,” said Daniel Tarman, a spokesperson.

In addition, PIMCO says the fund had an after-fee return of 1%, and excess returns above the benchmark of 0.29% for the month of November, putting it 0.50% above the Morningstar Intermediate-Term Bond Average.

“PIMCO Total Return Fund’s strong absolute and relative returns during the past two months are a testament to our investment process and the talent of our investment professionals. Of course PIMCO is more than the Total Return Fund, and as long-term investors across asset classes, we are therefore pleased that 85% of PIMCO’s U.S. mutual fund assets outperformed their respective benchmarks over the last three years,” said Daniel Ivascyn, group chief investment officer, in a statement.

In contrast to the PIMCO Total Return outflows, the DoubleLine Total Return had net inflows of about $804 million in November 2014, the research group says. This fund had almost $39 billion in total assets in November.

Chicago-based Morningstar notes that it estimates net flows by computing the monthly change in assets not explained by the performance of the fund and that actual fund flows may differ from its estimates for “a variety of reasons, including the timing of actual purchases and redemptions versus our assumptions and the timing and type of dividend distributions.”

According to DoubleLine Funds, which has its headquarters in Los Angeles and is led by Jeffrey Gundlach, the fund family had net inflows of $1.16 billion in November, bringing the year-to-date net inflow to $8.62 billion.

The fund group says its DoubleLine Total Return Bond Fund had net inflows of $819 million in November, bringing the fund’s net inflows to $6.43 billion in the first 11 months of 2014. The DoubleLine Total Return Bond Fund invests primarily in mortgage-backed securities.

The DoubleLine Core Fixed Income Fund’s inflows were $274 million in November, bringing its net inflows to $1.18 billion year to date; this fund, which invests in different fixed-income sectors, has $2.9 billion in assets.

In contrast to Morningstar’s methodology, DoubleLine says, its figures are based on “the actual net results of fund share subscriptions and redemptions.”

In late November, Gundlach, who serves as DoubleLine’s CEO and chief investment officer, said on CNBC that the Federal Reserve “should not be raising interest rates, and yet they don’t want to be at zero. They’re in a conundrum. They might raise rates just to see what happens.”

When asked about Gross’ departure from PIMCO, which included a discussion with Gundlach before Gross joined Janus Capital, the DoubleLine executive says he has “mixed feelings.”

“I will say one thing, our investors are happy, that [such a partnership] didn’t happen, because they invested in something that they thought they knew,” Gundlach explained.


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