Press Release

PIMCO Statement Regarding October Total Return Fund Net Flows

 

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.

Slowing pace of outflows from the Total Return Fund chart

*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%.

Media Contacts

Michael Reid
Global Head of Corporate Communications – New York
212.739.3253
michael.reid@pimco.com

Agnes Crane
U.S. Corporate Communications – New York
212.739.4212
agnes.crane@pimco.com

Jennifer Spivey
U.S. Corporate Communications – Newport Beach
949.720.6374
jennifer.spivey@pimco.com

Jochen Haegele
EMEA Corporate Communications – Munich
+49.89.26209.6237
jochen.haegele@pimco.com

Laura Batty
U.K. and EMEA Corporate Communications – London
+44.20.3640.1414
laura.batty@pimco.com

Millie Dravers
Australia Corporate Communications – Sydney
+612.9290.9577
millie.dravers@pimco.com

Donna Chan
Asia ex-Japan Corporate Communications – Hong Kong
+852 3650 7752
donna.chan@pimco.com

Disclosures

Click here for performance updated to the most recent calendar quarter

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit www.PIMCO.com/investments or call (888) 87-PIMCO.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative or by visiting www.pimco.com/investments. Please read them carefully before you invest or send money. 

Net Assets information is based on net asset value accounting. As such, shareholder purchases and redemptions placed on a particular business day are not reflected in the net assets reported as of such business day and will instead generally be included in the net assets on the following business day. Estimated Monthly Net Cash Flows include shareholder purchase and redemption orders but exclude most cash dividends and dividend reinvestment. Unlike Net Assets information, which is based on net asset value accounting, Estimated Monthly Net Cash Flows are based on the business day when shareholder purchase and redemption orders are received. This information is unaudited and may be revised at a later date.

Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss.

Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. It is not possible to invest directly in an index.

The minimum initial investment for the Institutional class shares is $1 million; however, it may be modified for certain financial intermediaries who submit trades on behalf of eligible investors.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world. 

PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.