MetWest Surpasses Pimco as Largest Active Bond Fund Manager

By Matt Wirz 

The Metropolitan West Total Return Bond Fund became the largest actively managed bond fund in the world in November, overtaking the long-dominant Pimco Total Return Bond Fund operated by Pacific Investment Management Co., according to data from Morningstar Inc.

MetWest has been the largest recipient of inflows from former Pimco investors who defected after the firm's co-founder Bill Gross left for Janus Capital Group Inc. in September 2014.

The MetWest fund -- operated by Los Angeles-based TCW Group Inc. -- has grown by about $10 billion this year to $79.6 billion at the end of November, while Pimco's fund has shrunk by about $11 billion to $78.5 billion, according to Morningstar.

Both funds struggled over the last three months, losing about 2.6%, as rising interest rates pushed bond prices lower.

Despite the funds' comparable performance, investors have favored Metwest, adding about $1 billion to that fund since August, while pulling more than $3 billion from Pimco Total return, according to Morningstar.

TCW is run by two portfolio managers Laird Landmann and Tad Rivelle, who have managed the MetWest fund since its inception in 1997.

Write to Matt Wirz at [e-mail]

(END) Dow Jones Newswires

December 06, 2016 15:32 ET (20:32 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.