Pimco's Total Return Loses Title As World's Largest Bond Fund

By Kirsten Grind 

Pacific Investment Management Co.'s flagship Total Return fund ceded its title as largest bond mutual fund to rival Vanguard Group, according to April data released by both companies.

The new king is the Vanguard Total Bond Market Index fund, which had $117.3 billion in assets at the end of last month as compared with $110.4 billion for the Total Return, according to the companies.

Investor flight triggered by the abrupt departure last fall of Total Return manager Bill Gross allowed Vanguard to surpass its rival and end a 17-year reign for Pimco's flagship fund.

Clients pulled a net $5.6 billion from the Total Return fund in April, the 24th consecutive month of withdrawals. The fund is now down about 62% from its peak of $293 billion in April 2013.

The withdrawal from the Pimco Total Return fund in April is the smallest monthly amount since Mr. Gross left in September.

Write to Kirsten Grind at [e-mail]

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