PIMCO flagship fund attracts $2.5 billion in November

NEW YORK Wed Dec 5, 2012 1:45pm EST

NEW YORK Dec 5 (Reuters) - The PIMCO Total Return Fund, the world's largest mutual fund, attracted $2.5 billion in investor cash in November to bring the fund's assets to $285 billion, according to fund research firm Morningstar Inc on Wednesday.

PIMCO's flagship fund, run by founder and co-chief investment officer Bill Gross, has pulled in $17.1 billion so far this year. The fund gained a return of 0.55 percent last month and is up 10.09 percent this year, beating 89 percent of other intermediate-term bond funds, Morningstar said.

In his December investment letter released Tuesday, Gross, 68, said that high debt-to-GDP ratios, the economic slowdown in China, technology's replacement of jobs, and the aging workforce are "structural headwinds" that could reduce economic growth to less than two percent in developed economies worldwide.

Pacific Investment Management Co had $1.92 trillion in assets as of Sept. 30, according to the firm's website.

The DoubleLine Total Return Bond fund, a competitor to the PIMCO fund, attracted $1 billion in investor cash in November and $18.9 billion so far this year, bringing the fund's assets to $36.2 billion.

The fund is the flagship of DoubleLine Capital LP, which oversees more than $50 billion and is run by prominent bond investor Jeffrey Gundlach.

The fund, which is this year's fastest-growing mutual fund according to Morningstar, gained a return of 0.36 percent in November and is up 8.91 percent so far this year, beating 78 percent of other intermediate-term bond funds.

Since the DoubleLine Total Return Bond fund's inception in April 2010 through November, it has gained a return of 13.2 percent while the PIMCO Total Return Fund gained 7.6 percent over that period, according to Morningstar.