NEWPORT BEACH, California (November 4, 2014): The PIMCO Total Return Fund (“the Fund”) assets were $170.9 billion as of October 31, 2014, and the Fund remains the largest actively managed bond fund in the world. Outflows from the Fund slowed considerably during the month of October, to approximately $27.5 billion for the month, with nearly half of these flows occurring in the first five trading days. The daily average flow for the last five days in October was approximately one-tenth of the daily average flow during the first five trading days after Bill Gross’s departure, as illustrated in the below chart*.
“Flows from the Total Return Fund peaked on September 26th, and slowed sharply throughout October. October performance of +0.80% after fees was in line with the Total Return Fund’s peer group,” said Daniel Tarman, a PIMCO spokesperson.
On a trailing three-month basis the Fund achieved a return of +0.97% after fees, and year-to-date the Fund has achieved a return of +4.16% after fees.
The liquidity profile of the Fund remains high and, as always, the Fund is being managed consistent with the firm's market outlook and alpha strategies while meeting diminishing redemptions. In addition, the Fund has maintained its desired portfolio structure with appropriate risk exposures as the fixed income markets remain liquid and well-functioning.
Importantly, several other PIMCO strategies and funds, such as the PIMCO Income Fund, continued to have positive inflows for the month. PIMCO’s $39 billion Income Fund achieved a return of +0.91% after fees in October. On a three-month trailing basis, the Income Fund achieved a return of +1.48% after fees, and year-to-date it has achieved a return of +8.24% after fees.
Year-to-date, PIMCO's Income strategies have experienced $13.0 billion of positive flows globally.
*NOTE: the above chart is being provided on a one-time basis to illustrate the slowing pace of outflows from the Total Return Fund.
Performance data above is after fees for the Institutional Class Shares.
PIMCO Total Return Fund Institutional share performance after fees versus the Barclays U.S. Aggregate Index as of 9/30/14: 1-year performance of 3.29% vs. 3.96%, 3-year performance of 4.56% vs. 2.43%, 5-year performance of 5.07% vs. 4.12%, 10-year performance of 5.99% vs. 4.62% and since inception performance of 7.85% vs. 6.81%. Inception Date: 05/11/1987.Total Expense ratio 0.46%.
The average daily outflow from the Fund during the last 5 days of October was approximately 0.3% of the Fund’s assets.
PIMCO Income Fund Institutional share performance versus the Barclays U.S. Aggregate Index as of 9/30/14: 1-year performance of 8.87% vs. 3.96% ,3-year performance of 11.61% vs. 2.43%, 5-year performance of 12.77% vs. 4.12% and since inception performance of 10.30% vs. 4.93%. Inception Date: 03/30/2007. Total Expense ratio 0.45%.