That’s what’s happening over at Pimco as money continues to exit the bond fund managed by Bill Gross.
The Pimco Total Return Fund, the world’s biggest bond fund, is on track to end the first quarter trailing 87% of its peers, the latest setback for high-profile portfolio managerBill Gross.
The $236.5 billion fund posted a year-to-date total return of 1.28% through Thursday, according to data from fund tracker Morningstar Inc. MORN -0.78% The benchmarkBarclays BARC.LN +0.32% U.S. Aggregate Bond Index, which serves as a gauge for a wide variety of bonds but is dominated by highly rated debt, returned 2.03%. That is also the average return for the 278 bond funds Morningstar places in the same category as Pimco Total Return Fund, which has been managed by Mr. Gross since its creation in 1987. Total return includes price appreciation and interest payments.
Investors are closely watching the performance of Pacific Investment Management Co.’s flagship fund after it posted a negative return of 1.92% in 2013, its biggest loss since 1994. A subsequent management shake-up in January resulted in the departure of Chief Executive Mohamed El-Erian . Clients have yanked money from the fund for 10 consecutive months through February, according to Morningstar.