May 3, 2012
Pimco Total Return fund with a record volume of 259 billion dollars
The run by Bill Gross, the world's largest bond fund, Total Return Fund of Pacific Investment Management Co. has reached a record volume of $ 258.7 billion. The Pimco reported on Thursday ... By Wes Goodman and Alexis Leondis
The run by Bill Gross, the world's largest bond fund, Total Return Fund of Pacific Investment Management Co. has reached a record volume of $ 258.7 billion. The Pimco's reported Thursday on its website. The asset management company based in Newport in the U.S. state of California is part of the insurer Allianz SE in Munich.
In April alone, investors pumped $ 2.7 billion into the fund, as is evident from data provided by Morningstar, Inc.. Investors sought the face of slowing economic growth in the U.S. and the debt crisis in the euro zone increased the refuge in bonds. This year is the Pimco Total Return at a yield of 4.4 percent and has beaten it to Bloomberg data, 98 percent of comparable funds.
Fixed income investments - from the Australian government bonds over U.S. Treasuries to high-yield bonds globally - have won in April, 0.7 percent of its value, reinvested interest in the calculation. The exhibit index data from Bank of America Merrill Lynch. For the first time since early 2008, the bond asset class, handed in as the only income. By comparison, the MSCI All-Country World Index lost for shares 1.1 percent, dividends included.
In the U.S., slowed economic growth from three percent in the fourth quarter to 2.2 percent in the first quarter on an annualized basis, as the U.S. Department of Commerce on 27 April said. The rating agency Standard & Poor's lowered on 26 April, the credit ratings of Spain, strengthening concerns that some states do not pay their debts.
Gross had removed more than a year, the U.S. government securities from its portfolio. But then he changed the strategy and increases the proportion of U.S. government securities until the end of January to 38 percent. As the website of Pimco is also apparent that he has subsequently broken down by the end of March, the share of Treasuries to 32 percent and it increased the mortgage loans to 53 percent of the investment volume.
In the fourth quarter, investors had withdrawn about three billion dollars from the total return. Overall, the capital outflows in 2011 totaled some five billion dollars. This is evident from data of the Fund Observer Morningstar. When investment performance of the fund came in 2011, an increase of 4.2 percent and thus lagged 69 percent behind its competitors. Gross had missed the rally in Treasuries, and instead put on riskier investments.
by erectusplus at 3:47 AM |
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