"Bond King" Bill Gross
humbled himself last month by admitting that he made a wrong bet on the bond market and has shaken up the PIMCO Total Return Fund
] portfolio, but those moves have failed to stem outflows reports Reuters
Morningstar editorial director Kevin McDevitt said the fund saw $500 million outflows in November. That number is not as large as seen in other months. Over the past 12 months shareholders have pulled a total of $17 billion.
The outflows from Total Return
came despite a strong wind at the back of the bond mutual fund sector as a whole. During November all taxable bond mutual funds reported inflows of $10.2 billion and a 12-month period inflow of $105.8.
McDevvit said the California-based fun "has underperformed this year, and a lot of it goes back to (Gross's) misplaced bet on Treasuries."
The "Bond King" wrote to his investors in October saying he is "just having a bad year" and apologized for his poor performance. Gross faced heavy criticism this year when he bet against the U.S. Treasuries, which subsequently performed strongly.
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