(Adds Morningstar rankings for Pimco Total Return, Pimco Income
By Jennifer Ablan
NEW YORK Feb 6 Investors pulled $1.6 billion
from the Pimco Total Return Fund in January, leaving assets
under management of $75 billion, Morningstar data showed on
The Pimco Income Fund, widely seen by investors and analysts
as Pimco's new flagship fund, posted $1.6 billion of inflows,
resulting in assets under management of $73 billion, Morningstar
Pimco Income, which is overseen by Group Chief Investment
Officer Dan Ivascyn, has been popular as an income-oriented
alternative in the continuing low-yielding environment, while
Pimco Total Return, once the world's largest bond fund at a peak
of $292.9 billion in assets, has had mixed results.
Todd Rosenbluth, director of ETF and mutual fund research at
CFRA, said total returns for Pimco Total Return are in the
bottom quartile of its Lipper peer group on one-year and
three-year bases, while Pimco Income is in the second quartile
in the past year and the top quartile on a three-year basis.
"Investors should dig deeper to understand the differences
between them - including the lower interest-rate sensitivity of
the Income Fund - but for many, the stronger relative
performance matters a lot," he said.
"While money continues to shift to passive strategies,
active fixed-income funds that perform well will continue to
For its part, Morningstar ranks the Pimco Total Return Fund
in the second quartile on a one-year and three-year total return
The Pimco Total Return Fund, which has posted returns of
2.61 percent for the one-year period ended Feb. 3, is surpassing
55 percent of its category peers on a 12-month basis and
exceeding 52 percent of its category peers on a three-year
The Pimco Income Fund ranks in the top quartile on a
three-year period, returning 8.48 percent on an annualized
basis, Morningstar said.
Pimco's Ivascyn said Pimco Total Return has had a strong
start to the year, returning 51 basis points over its benchmark
in January. "Given the political and policy uncertainties in
2017, we expect there to be more opportunities in the market for
investors who actively pursue them," Ivascyn said.
(Editing by Paul Simao and Matthew Lewis)