NEW YORK Oct 1 The Pimco Total Return Fund, the
world's largest mutual fund, rose 1.8 percent in September after
the Federal Reserve kept its bond-buying program unchanged,
preliminary data from investment research firm Morningstar
The return marks the best monthly performance for the bond
fund since January 2012, according to the Chicago-based
Morningstar. The fund's latest monthly performance also bested
98 percent of peers for the month, according to Morningstar.
"The Fed decision to continue to keep their bond-buying
program intact contributed favorably," said Todd Rosenbluth,
director of mutual fund research at S&P Capital IQ, on the
fund's gain. The fund, which is run by Bill Gross, has roughly
$251 billion in assets.
The Fed's decision on Sept. 18 to keep its $85 billion in
monthly purchases of Treasuries and agency mortgages unchanged
led some investors to buy bonds again after a selloff that began
The yield on the 10-year U.S. Treasury note plunged 17
basis points following the Fed decision. As yields fall, prices
Gross's fund had 35 percent of its assets in U.S.
government-related debt and 36 percent of its assets in
mortgages at the end of August, according to firm's website.
Despite the rise in September, Gross's flagship bond fund is
still down 1.9 percent for the year, besting 49 percent of
peers, according to Morningstar.
The Newport Beach, California-based Pacific Investment
Management Co had $1.97 trillion in assets as of June 30,
according to the firm's website. The firm is a unit of European
financial services company Allianz SE.
The Pimco Total Return Exchange-Traded Fund, an
actively managed ETF designed to mimic the strategy of the
flagship bond fund, also did well and rose 1.7 percent for the
month, making it the top performer in its peer group, according
to Morningstar data.
Jeffrey Gundlach's DoubleLine Total Return Bond Fund
, a competitor to the Pimco Total Return Fund, rose 1.2
percent in September, besting 79 percent of peers, according to
preliminary Morningstar data.
The fund, which had its biggest-ever monthly outflows of
$2.1 billion in Sept., is up 0.3 percent for the year,
outperforming the comparable Pimco fund and besting 95 percent
of peers, according to Morningstar.
The Los Angles-based DoubleLine Capital LP had $57 billion
in assets as of June 30.