Investors who pulled an estimated $52.7bn from the Pimco Total Return Fund this year may feel like freeway drivers who changed lanes only to see themselves falling behind traffic.
Bloomberg News reports that the erstwhile largest bond mutual fund outperformed 89% of peers in the first calendar year since the ouster of its former manager Bill Gross, returning almost 1% through December 28, according to data compiled by Bloomberg.
Among those it bested were four of the five funds with the largest influx of new money this year through November 30 that Bloomberg classifies as following total return strategies.
The performance, a rebound from two years in which it trailed a majority of peers, helped slow a torrent of redemptions following the September 2014 departure of Gross, who had built Total Return into a $293bn behemoth at its peak in 2013. The fund, which now has $92bn in assets, avoided the debt of energy companies, emerging markets and other high-yield bonds that caused losses for many investors, according to Scott Mather and Mihir Worah, two of the fund’s three co-managers.
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