Pimco Total Return fund assets drop below $100bn

The assets in Pimco’s Total Return fund have slumped to around a third of its assets at peak, now amounting to $98.5bn (£64.5bn).

The fund’s asset have dropped past the $100bn mark for the first time since 2007, and have dropped from their peak of $293bn in April 2013.

August saw another $1.8bn of outflows from the fund, although this was lower than the outflows some previous months since prominent manager Bill Gross left Pimco.

However, the fund outperformed its benchmark year to date, returning 0.72 per cent to the end of August, compared to 0.45 per cent for the Barclays US aggregate benchmark. Over one year the fund has underperformed the index, returning 1.29 per cent after fees compared to 1.86 per cent for the benchmark.

Pimco says its better performing income strategies were in favour for the month.

“Recent market conditions and long-term performance have continued to attract investors to out top-performing income strategies,” says the manager in a fund update.

In May the Pimco Total Return Fund lost its title as the world’s largest bond mutual fund, after Vangaurd’s Total Bond Market Index Fund overtook it in assets.