Losing Game: Pimco Total Return Risks First Losing Year Since Gross’s Ouster (Fed Isn’t Helping)

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Pimco has been playing a losing game for their total return fund.

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(Bloomberg) — The Pimco Total Return Fund could be headed for its first annual loss since 2013 as the bond firm’s former flagship lags behind competitors four years after the ouster of longtime manager Bill Gross.

Hurt by rising interest rates and emerging-market bets, the $70 billion fund fell 1.62 percent this year through September, ranking in the bottom 30 percent of its peers, according to data compiled by Bloomberg. It also narrowly trails the Bloomberg Barclays U.S. Aggregate index, which has declined 1.6 percent this year.

Total Return’s last negative year was 2013, when it lost about 1.9 percent. Since its 1987 inception, the only year it had a bigger decline was 1994, when it fell 3.6 percent as interest rates soared.

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Of course, The Federal Reserve isn’t helping Pimco’s fund, particularly since The Fed started their great unwind of their balance sheet.

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