(Adds analyst quotes; performance of Pimco Income, Total Return
By Jennifer Ablan
NEW YORK Oct 6 Investors poured $1.2 billion
into the Pimco Income Fund, overseen by group chief investment
officer Dan Ivascyn, in September, bringing total assets under
management to $66 billion for the portfolio, according to
Morningstar data on Thursday.
The Pimco Income Fund, widely seen by investors and analysts
as Pimco's new flagship fund, has brought in a total of $10.5
billion for the year through September, Morningstar added.
"In this low-yield environment, people are looking for
income-oriented alternatives," Ivascyn said in a telephone
The Pimco Total Return Fund, once the world's largest bond
fund, saw another month of cash withdrawals.
In September, Total Return posted cash outflows of $1.7
billion, bringing its year-to-date outflows to $9.6 billion,
according to Morningstar.
Pimco Total Return, which hit a peak of $292.9 billion in
assets under management in April 2013, now has assets under
management of $84 billion.
"The performance has been solid," Ivascyn said about Pimco
Total Return Fund. "I think core strategies such as Total Return
has been a little less in favor. But Total Return had a good
month of performance and I believe flows will follow good
For the one-month ended Sept. 30, Total Return posted
returns of 0.37 percent, surpassing 95 percent of its peer
category, according to Morningstar data. But in the first nine
months of the year, Pimco Total Return has been trailing its
peers, posting returns of 5.18 percent, lagging behind 76
percent of its category, Morningstar said.
"Pimco Total Return has lagged its Lipper peer group in 2016
while the firm's Income fund has outperformed," said Todd
Rosenbluth, director of ETF and mutual fund research for CFRA.
"Though they have different approaches, investors will shift
assets to the active strategies that are working. Until Total
Return can establish a stronger record, investors will look
Like BlackRock Inc and Janus Capital Group Inc, Pimco adds
dividend reinvestments into its inflow figures. Research
organizations such as Morningstar and the Investment Company
Institute, along with many fund managers, including Vanguard,
Fidelity and DoubleLine, exclude reinvestments and treat only
fund share purchases as inflows.
Pimco, a unit of German insurer Allianz SE, is
headquartered in Newport Beach, California, with more than $1.5
trillion in assets under management.
(Reporting by Jennifer Ablan; Editing by Meredith Mazzilli and