Investors pulled a total of about $580 million from Bill Gross’s bond fund in the first half of this year and he turned in the worst performance among his peers during the period.
June marked the fourth straight month of withdrawals for Gross’s Janus Henderson Global Unconstrained Bond Fund and the outflows dragged assets down to $1.48 billion, according to Bloomberg estimates. The go-anywhere fund declined 6.3 percent this year through June.
Unconstrained mutual funds have met with mixed results in 2018 as rising interest rates hurt total returns. The funds have the latitude to stray from conventional benchmarks that usually provide moorings for fund weightings such as duration, credit quality or asset type. The Bloomberg Barclays U.S. Aggregate Index, a benchmark for many intermediate-term funds, declined 1.6 percent in the first six months.
In June, outflows from Janus Henderson Global Unconstrained were about $185 million, an improvement from roughly $300 million in May, which was a record for the fund. Assets as of the end of June were down from $1.69 billion a month earlier and a peak of $2.24 billion in February, Bloomberg’s data show.
Gross’s fund, which relies largely on derivatives and options-based strategies to generate returns, ranked last in first-half performance among 44 peers in its Bloomberg category.