(Adds quotes from Group CIO Dan Ivascyn and director of ETF and
Mutual Fund Research at S&P Global Market Intelligence)
By Jennifer Ablan
NEW YORK, Sept 2 Investors pulled $615 million
from the Pimco Total Return Fund in August, reducing the fund's
size to $85.5 billion, while investors poured $1.7 billion into
the smaller Pimco Income Fund, parent company Pacific Investment
Management Co said on Friday.
Pimco Total Return, once the world's largest bond fund, has
lost investor cash in nearly every month since assets under
management peaked at $292.9 billion in April 2013.
For the month, the Pimco Total Return Fund posted returns of
negative 0.22 percent after fees, underperforming the benchmark
return of negative 0.11 percent, the Newport Beach, Calif-based
firm said. Through August, the Total Return Fund has posted
year-to-date returns of 4.79 percent after fees, but trails the
benchmark, which has returned 5.86 percent.
"Pimco Total Return has lagged its Lipper peers in 2016
which is not encouraging investors that previously moved to
other active bond funds to return," said Todd Rosenbluth,
director of ETF and Mutual Fund Research at S&P Global Market
Intelligence. "Management needs to rebuild confidence."
The smaller Pimco Income Fund, overseen by Group CIO Dan
Ivascyn and with assets under management of $64.5 billion at the
end of August, has seen inflows of $25.6 billion so far this
year and last.
Ivascyn said in a telephone interview on Friday he has been
adding Emerging Market debt and agency mortgage-backed
securities opportunistically to the fund. Ivascyn also said he
doesn't think the Federal Reserve will raise benchmark U.S.
interest rates this month.
(Reporting by Jennifer Ablan; Editing by Leslie Adler and James