The world's biggest bond fund run by high-profile fund manager
Bill Gross saw clients cash out $5.4 billion in September, the
fifth consecutive monthly redemption.
The data, released by fund tracker Morningstar on Wednesday,
brought the total net redemption this year from the $250 billion
Total Return Fund at Pacific Investment Management Co. to $28.7
billion. The amount represents 10% from the fund's total assets at
the end of 2012, according to Morningstar.
This year's outflow already eclipsed the $18 billion the fund
attracted for the whole year of 2012, according to Morningstar.
Still, the pace of redemption last month eased from a $7.7
billion outflow in August, as the bond market stabilized from a
summer selloff.
The Federal Reserve refrained last month from cutting its $85
billion monthly bond buying program, a move that broke the tide of
rising bond yields since the start of May. Bond prices rise when
their yields fall.
Mr. Gross's fund's return got a lift last month from the Fed
policy. It handed investors a total return of 1.77% in September,
outpacing the 0.95% gain from the benchmark Barclays US Aggregate
Bond Index, according to Morningstar.
The fund still lost ground this year, down 1.97% in 2013 as of
Tuesday, compared to 1.99% loss from the benchmark index, according
to Morningstar. The fund was stung by a record quarterly loss of
3.6% during the April-June period when bond yields rose
sharply.
Write to Min Zeng at min.zeng@wsj.com
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