The
Pimco Total Return Active ETF, an actively managed
intermediate-term ETF intended to mimic the strategy of Pimco's
flagship mutual fund and once run by Pimco co-founder Bill
Gross, posted net outflows of $5.4 million in July, leaving its
assets under management at $2.59 billion.
By comparison, the SPDR DoubleLine Total Return Tactical ETF,
also known as TOTL, led by Jeffrey Gundlach, Philip Barach and
Jeffrey Sherman, ended July with $2.76 billion in assets under
management.
Todd Rosenbluth, director of ETF and mutual fund research at S&P
Global Market Intelligence, said TOTL has modestly outperformed
BOND this year and has benefited from DoubleLine's strong active
management and State Street Global Advisors's strong
distribution resources.
But both BOND, which is up 4.34 percent so far this year, and
TOTL, which is up 4.63 percent, are underperforming the
benchmark Barclays U.S. Aggregate Bond index, which is posting
returns of 5.54 percent, Rosenbluth noted.
"In the case of TOTL or the DoubleLine Total Return Bond Fund,
mortgage exposure has not been helping as it did in the past.
Consistent outperformance of an index is hard to achieve as
well," Rosenbluth said.
Rosenbluth was referring to the $61.3 billion DoubleLine Total
Return Fund, which has a much lower duration than the
Treasury-heavy Barclays Aggregate, so it has not benefited as
much as many other funds this year from the rally in Treasuries.
Additionally, corporate bonds have been strong relative
performers this year, and DoubleLine Total Return holds no
corporate debt.
"Meanwhile, Pimco's previously renowned Total Return franchise
has been under pressure since the departure of prior manager
Bill Gross," Rosenbluth added.
That said, the DoubleLine and Pimco ETFs are "anomalies in the
ETF market that is dominated by index-based offerings,"
Rosenbluth said. "iShares announced in June plans to close four
active equity ETFs in August, including the iShares Enhanced
U.S. Large-Cap ETF," he said.
DoubleLine’s largest equities mutual fund, the $1.2 billion
DoubleLine Shiller Enhanced CAPE fund, had a net inflow of
$117.07 million in July, its largest ever. The fund produces its
returns from an actively managed fixed-income portfolio and a
rules-based exposure to the U.S. stock market.
(Reporting by Jennifer Ablan; Editing by James Dalgleish)
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