COSTA MESA, Calif., Sept 30 Pacific Investment
Management co-chief investment officer Bill Gross said on
Wednesday his popular Total Return fund has grown to $186
billion in net assets and he has no plans to close it to new
PIMCO's Total Return Fund (PTTAX.O) has been the
top-selling mutual fund so far in 2009, and posted its best
month yet in August with inflows of almost $5.5 billion to
bring net assets to $177.5 billion. That is nearly double the
next most popular fund, Vanguard's Total Stock Market, with $93
"To the extent that you can continue to beat the pants off
competitors and outperform the market, then it must be OK to
keep on going," Gross, a PIMCO founder, told the women's
investor group WISE at an event near his headquarters.
Gross said that PIMCO and others have asked if they should
close the fund to new investors as it has grown over the last
20 years. He likened his challenge to that of an explorer
walking in a canyon, adding that he would have the smarts to
turn around when he hits a dead end.
"Up until this point, the passage through the canyon has
been a wonderful one and there is no reason to stop," Gross
"But I would hope that at some point where we couldn't
provide bottom-line results for investors -- which is really
what PIMCO is all about and what the industry should be all
about -- then we would close it down," he added.
The fund's net assets currently grow by $300 million per
day, Gross said.