Investors pulled $7.3 billion out of Pacific Investment
Management Co.'s mutual funds in March, the 10th straight monthly
net redemption.
The outflow from Pimco's U.S.-based funds grew from $2.5 billion
in February and $5.7 billion in January, according to data from
fund tracker Morningstar Inc.
The latest setback underscores the challenges confronting the
Newport Beach, Calif.-based money manager following a year of
record redemptions and a management shake-up.
Both stock and bond funds suffered in March. Pimco's bond funds
posted $5.6 billion in outflows, while stock funds had $466.2
million in redemptions.
Pimco has suffered $15.4 billion in outflows in the first three
months of the year, following a $30 billion withdrawal in 2013,
according to Morningstar.
The Pimco Total Return Fund, the firm's flagship bond fund,
suffered $3.1 billion in outflows last month. The fund saw its
assets decline to $232 billion at the end of March, down from
$236.5 billion in February. It remains the world's largest bond
fund by assets.
One of Pimco's competitors, the fund family DoubleLine, posted
2014 inflows of $84.9 million through March this year, although the
company saw outflows of $13.7 million in March, according to
Morningstar.
"Investor's confidence is fading," said Adrian Miller, a global
market strategist at GMP Securities LLC. He said that Pimco's image
has been "somewhat damaged" by the events surrounding the
surprising departure of the firm's chief executive Mohamed
El-Erian.
A Pimco spokesman did not immediately return a request for
comment.
Write to Min Zeng at min.zeng@wsj.com and Kirsten Grind at
kirsten.grind@wsj.com
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