The turbulent second quarter left a big scar on bond king Bill
Gross: a record quarterly loss for his bond fund and clients
fleeing in droves.
Investors yanked nearly $10 billion in June out of Pacific
Investment Management Co.'s $268 billion Total Return Bond Fund
(PTTRX) run by Mr. Gross, according to fund tracker Morningstar.
The outflow was the biggest cash outflow from the world's biggest
bond fund since Morningstar started tracking the fund's flow in
1993.
The outflow came as Mr. Gross's bond fund handed investors a
loss of 3.6% in total return basis for the second quarter of the
year, the biggest quarterly loss since its inception in 1987,
according to data from fund trackers Morningstar and Lipper.
The fund's performance was worse than the 2.32% loss of its
benchmark--the Barclays US Aggregate Bond Index, according to
Morningstar.
Fund tracker Morningstar reported Tuesday that it estimated Mr.
Gross's fund had a net redemption of $9.6 billion in June. But in a
release on the monthly flow, Morningstar also noted that Pimco has
provided Morningstar with preliminary net cash outflow that was a
bit bigger at $9.9 billion. A spokesman from Pimco wasn't
immediately available for comment Tuesday.
The June outflow followed a net redemption of $1.32 billion in
May from the fund, according to Morningstar. It was the first time
Mr. Gross's fund was hit by two consecutive monthly redemptions
since the fourth quarter of 2011.
The two-month outflows wiped out the net inflow of $3.45 billion
for the first four months of 2013, leaving the fund to post a net
redemption of more than $7 billion for the year through the end of
June, according to Morningstar.
Write to Min Zeng at Min.Zeng@dowjones.com
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