Fri, Jul 05, 2013 - Page 15 News List

US bond funds foreshadow Fed exit

SHIFT:Retail investors, who poured about US$1 trillion into the perceived safety of bond funds since the beginning of 2009, reversed that pattern in the past month


Gross’ PIMCO Total Return Fund, the world’s largest mutual fund, absorbed a record US$9.9 billion in net redemptions last month. Gross underperformed rivals during the bond selloff, taking losses on his holdings of Treasuries and inflation-linked Treasuries, which fell 5.5 percent since May 21, Merrill Lynch indices show.

Gross’ fund lost 2.4 percent over the past month, worse than 92 percent of rivals, according to data compiled by Bloomberg.

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