Pimco fund hit by $1.4bn exit

THE WORLD’S largest bond fund had $1.4bn (£895m) in outflows in December, according to fund analytics firm Morningstar.

The Pimco Total Return Fund, led by Bill Gross, suffered total redemptions of $5bn in 2011, a year when the fund underperformed benchmarks after betting heavily against US Treasuries, which rallied on the year.

Gross’ fund has had investor redemptions on and off for more than year. Morningstar estimates that total redemptions from the $241bn. Total Return Fund have exceeded $13bn since November 2010.