DoubleLine Total Return Bond has sixth month of outflows: Morningstar

NEW YORK Mon Dec 2, 2013 11:23am EST

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NEW YORK (Reuters) - Jeffrey Gundlach's DoubleLine Total Return Bond Fund had $811.2 million in outflows in November on uncertainty over the Federal Reserve's plans for reducing its bond-buying, data from Morningstar showed on Monday.

The outflows marked the sixth straight month of withdrawals from the fund, which is the flagship of the Los-Angeles based DoubleLine Capital LP. Gundlach is the firm's chief executive and chief investment officer.

The outflows also accounted for most of the $823.1 million in total withdrawals from the firm's U.S. mutual funds in November, Morningstar data showed. The Total Return Bond Fund now has roughly $33.3 billion in assets.

"It's a popular bond fund at a time period when bond funds are starting to move out of favor," said Todd Rosenbluth, director of mutual fund research at S&P Capital IQ.

Investors have continued to pull cash out of bond funds since June on fears of a spike higher in interest rates once the U.S. Federal Reserve begins scaling back the $85 billion in monthly bond purchases for its economic stimulus program known as quantitative easing.

Investors pulled $21.8 billion from bond mutual funds and exchange-traded funds in November, marking the biggest outflow since $36.8 billion in August and the fifth-highest monthly outflow on record, according to data from TrimTabs Investment Research.

The yield on the benchmark 10-year U.S. Treasury note rose 20 basis points to 2.74 percent last month on uncertainty over whether the Fed will reduce its bond-buying at its upcoming meeting in December.

U.S. Treasury yields shot higher on November 20 after minutes from a Federal Reserve policy meeting in October suggested the U.S. central bank could begin to scale back quantitative easing in the next few months.

The outflows came despite the fund's strong performance this year relative to peers. The fund is up 0.72 percent this year, beating 91 percent of peers, according to the Chicago-based Morningstar.

DoubleLine had $53 billion in assets as of September 30.

(Reporting by Sam Forgione; Editing by James Dalgleish and Alden Bentley)

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