Pimco's Total Return Fund Suffers Outflows of Over $55bn in a Year

Bill Gross's Pimco Total Return Fund, the world's largest bond fund, has suffered 12 consecutive months of outflows, with investors pulling out another $3.1bn in April.

The fund has suffered a total of $55.26bn (£32.72bn, €39.87bn) in net outflows since May 2013, according to Morningstar data.

The Total Return Fund managed assets worth $230bn at end of April 2014, down from a peak of $292.9bn in April 2013.

The capital exodus pace in April was steady from the rate witnessed in March.

The Total Return Fund also continued its string of downbeat returns in April. At 0.74%, it trailed 68% of its peers, according to flash data from Morningstar.

Barclays US Aggregate

The fund also trailed the benchmark Barclays US Aggregate bond index's return of 0.84% for April.

Over the past 12 months, Gross's fund has trailed the Barclays index by 1.45 percentage points.

Goldman, JPMorgan Beat Pimco

Pimco's $24.3bn Unconstrained Bond Fund had lost $2.7bn to withdrawals in the three-and-a-half months to 14 April, 2014, while rival offerings from Goldman Sachs, JPMorgan and BlackRock attracted deposits from investors looking to dodge likely bond-market losses.

In March, the $26.3bn JPMorgan Strategic Income Opportunities Fund beat Pimco Unconstrained, the firm's best-selling mutual fund in 2013, to become the biggest of the so-called non-traditional bond funds.

Gross is battling to quell investor concerns after Mohammed El-Erian, his previous right-hand man, resigned from Pimco in January, without giving a reason.

Pimco's Total Return Fund lost investors 1.9% in 2013.

Pimco manages some $1.94tn in assets and Gross is the firm's co-founder and chief investment officer.

Newport Beach, California-based Pimco, or the Pacific Investment Management Co, is owned by the German insurer Allianz Group.