Another tough quarter for Gross' Total Return Fund

The world's biggest bond mutual fund (ETF version: BOND) had a YTD total return of 1.28% through Thursday, according to Morningstar, trailing 87% of its peers. The benchmark Barclays U.S. Aggregate Bond Index (ETF: AGG) returned 2.03%.

Already keeping a close eye on Gross' performance following 2013's 1.92% loss - the worst performance since 1994 - investors have been shaken by the ugly divorce between Pimco and Mohamed El-Erian.

Longer-term: Total Return has averaged a total return of 6.91% over the past five years, beating 55% of peers and the benchmark return of 4.89%. Its 6.6% average return over the past 15 years beat 96% of peers.

The Total Return Fund had $41B of outflows in 2013, with investors pulling another $5.1B in this year's first two months. Pimco parent Allianz (AZSEY -0.7%) continues to struggle alongside its cash cow. It's off 7.6% YTD.

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Comments (7)
  • TAS
    , contributor
    Comments (4063) | Send Message
    Why buy Gross when you can buy Gundlach?
    28 Mar 2014, 03:56 PM Reply Like
  • tmow
    , contributor
    Comments (518) | Send Message
    Why buy Gundlach when you can buy Ivascyn (PIMIX)?
    29 Mar 2014, 07:42 AM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1805) | Send Message
    Gundlach is a flash in the pan, and weird to boot.
    28 Mar 2014, 04:23 PM Reply Like
  • nishtu
    , contributor
    Comments (814) | Send Message
    The sad thing is, this was avoidable. The two of them forgot the basics of bond trading and here's the result and it could have or should have been worse. Watching the 2 of them gleefully talk about loading into the 2's 3's & 5's in Q4 made me think they had lost their minds. I was buying the 10's and a bit longer into the spike to 3% and that's exactly where they should have been and known it. Especially in the 10's of the muni market. The short end always takes the brunt of this curve when the fed raises rates. And now the flattening is taking its toll. So when El Erian resigned suddenly he was clear as day to me what happened, he knew he lost his touch and it was time for the beach for a few years. They both had a great run, time to move over, they have some talent on the bench, use it.
    28 Mar 2014, 05:07 PM Reply Like
  • Trader's Profit Compass
    , contributor
    Comments (2072) | Send Message
    they're both weird...slide data under the door and wait for the answer
    28 Mar 2014, 05:09 PM Reply Like
  • june1234
    , contributor
    Comments (4504) | Send Message
    When you are holding as much cheap underinsured leveraged paper in a rising rate environment these guys are there are no happy campers by the water cooler. Sounds like the one who jumped ship decided to let the other guy explain it to the clients . Beach is nice this time of year, see ya.
    29 Mar 2014, 07:34 AM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
    can't account for "landslides." the White House gave Bill Gross the boot but it would appear he remained true to the cause long after his ideas had been abandoned.


    He'd make a great Secretary of the Treasury...that's fer sure...but in this media driven rodeo i'm not sure anyone is looking for anything right now that actually makes sense. So sure...we have a good one-liner "attacking the owner" (let alone the boss) no less.


    That sounds more revealing of the former employee(s) than the operation.
    Obviously "you can't account for a full scale invasion of Russia...but you can offer your advisory services...for a reduced fee of course."

    29 Mar 2014, 12:32 PM Reply Like
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