PIMCO's Worst Performing Funds Are Down $100 Billion

Things aren’t looking good for the world’s largest bond manager.
Half of this year’s 10 worst-performing funds are PIMCO funds, the Financial Times reported, citing data from research group Morningstar.

Together, they have bled more than $US100 billion so far this year.

Bill Gross, PIMCO’s former chief investment officer, managed four of those funds before he unexpectedly resigned in September. Since then, clients have shown signs of losing trust in the California firm.

Instead, Vanguard, MetWest, and Goldman Sachs have become favourites for investors.

Gross’ Total Return fund reportedly lost $US75 billion in client redemptions between January and October.

But PIMCO claims the initial panic from Gross’ departure has subsided, and the funds are starting to recover now.

The most popular actively-managed funds in the US this year have been bond funds, contrary to expectations that investors would return to equities this year, according to the FT.

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