Investors have pulled an estimated $4.3B (1.9%) out of Pimco's Total Return bond fund (ETF: BOND) in May, contracting the world’s largest fixed income fund to $229B. The company will publish exact numbers in the next few days.
The May outflow was the worst since last October, and has been the 13th consecutive month of outflows for the fund. Investors seem to have started withdrawing from the fund last spring, when the Fed began preparing the market to expect a tapering of its quantitative easing bond buying program.
In comparison: The Barclays US Aggregate bond market index is up 3.87% in 2014 so far, Pimco's Total Return fund is up 3.32%.