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On Monday, Pacific Investment Management Inc
said investors yanked another $5.6 billion from its flagship
Pimco Total Return Fund last month, bringing its assets to
$110.4 billion at the end of April. Cash withdrawals in April
marked the fund's 24th consecutive month of net outflows.
By comparison, the Vanguard Total Bond Market Index Fund had
$117.3 billion as of April 30, according to a Vanguard
spokesman.
"We do not view this as an asset gathering horse race," said
John S. Woerth, spokesman at the Valley Forge,
Pennsylvania-based Vanguard Group. "It is, however,
representative of the popularity of low-cost, broadly
diversified index funds."
The Pimco Total Return Fund hit a peak of $292.9 billion in
assets under management in April 2013.
The Pimco Total Return Fund delivered a net after fee return of
1.62 percent year-to-date through April, outperforming its
benchmark by 38 basis points, Pimco said.
Gross, the legendary bond manager long known as the 'Bond King,'
exited Pimco suddenly last September for smaller rival Janus
Capital Group Inc <JNS.N>.
Pimco has seen about $130 billion of net withdrawals from its
open-ended funds since Gross' departure even as performance has
improved.
Outflows from the flagship Pimco Total Return Fund, which Gross
managed since 1987, have slowed to an average of $7 billion to
$8 billion a month recently from $23.5 billion in September.
Pimco, which oversees $1.59 trillion in assets as of March 31,
announced last week that former Federal Reserve chairman Ben
Bernanke was joining the Newport Beach, Calif.-based firm as a
senior adviser, as Pimco seeks to bolster its star power
following the departure of Gross.
(Reporting By Jennifer Ablan; Editing by Bernard Orr)
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