Investors pull $14 million from Bill Gross's Janus fund in January: Morningstar

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[February 09, 2016]  By Jennifer Ablan

NEW YORK (Reuters) - Investors pulled $14 million from the Janus Global Unconstrained Bond Fund, run by closely followed investor Bill Gross, in January, according to Morningstar data on Monday.

The Janus Global Unconstrained fund's assets under management stood at $1.26 billion at the end of January, Morningstar said.

"The fund continues to struggle to bring in new money even as investors sought out fixed-income products in January amid market uncertainty," said Todd Rosenbluth, director of ETF & Mutual Fund Research at S&P Capital IQ Global Markets Intelligence.

A Janus Capital Group Inc spokeswoman declined to comment.

January's cash withdrawals mark the Janus Global Unconstrained Bond Fund's third straight outflow, Morningstar said, noting the fund attracted $6.6 million in October.

The Unconstrained Bond Fund, which Gross began managing in October 2014, holds more than $700 million of Gross's personal money.

In his latest Investment Outlook, Gross said global markets and individual economies are "increasingly addled and distorted."

Gross said major central banks including the Federal Reserve, the European Central Bank and the Bank of Japan seem to believe there is an interest rate so low that resultant financial market wealth will ultimately spill over into the real economy.

"Today's Fed and other model-based central banks are, to my way of thinking, the ones that have more and more become 'increasingly addled'."

The BOJ recently joined the ECB and the central banks of Sweden, Denmark and Switzerland in negative-rate territory.

(Reporting by Jennifer Ablan; Editing by Chris Reese and Lisa Shumaker)

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