The
Pimco Income Fund, seen by many in the industry as Pimco's new
flagship fund and overseen by group Chief Investment Officer Dan
Ivascyn, posted inflows of $1.2 billion last month. The fund has
attracted a total of $23.9 billion this year and in 2015, Pimco
said.
The Total Return Fund had assets under management of $86.8
billion as of the end of July, compared with its peak of $292.9
billion in April 2013.
The Income Fund had assets under management of $62.7 billion for
the same period.
"Improvement from prior months is a modestly encouraging sign
that sentiment has started to improve for the flagship Total
Return fund," Todd Rosenbluth, director of ETF and mutual fund
research at S&P Global Market Intelligence, said. "However, one
month is not a trend and investors may not remain loyal."
The Pimco Total Return Fund posted returns of 1.08 percent after
fees in July, outperforming the benchmark return of 0.63
percent. Year-to-date through July, the fund has posted returns
of 5.02 percent after fees, trailing the benchmark, which has
returned 5.98 percent.
The portfolio outperformed in July because equities gained,
credit spreads tightened and emerging market assets performed
well, while most sovereign yield curves flattened with front-end
rates generally drifting higher, Pimco said in a statement.
"Rate strategies in both the U.S. and the eurozone (mainly the
periphery) added to performance. Holdings of TIPS were also
additive, as were the fund's non-agency MBS positions," Pimco
said. "Credit strategies including positions in financials,
municipals and dollar-denominated EM debt, all benefited
performance."
Like BlackRock Inc and Janus Capital Group Inc, Pimco includes
dividend reinvestments in its inflow figures. Research
organizations such as Morningstar and the Investment Company
Institute, along with many fund managers, such as Vanguard,
Fidelity and DoubleLine, exclude reinvestments and treat only
fund share purchases as inflows.
(Reporting by Jennifer Ablan; editing by James Dalgleish and
David Gregorio)
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