Investing April 27, 2001

Outsize Bond Fund Outsells All

April 27, 2001 (PLANSPONSOR.com) - The first quarter's volatile markets saw the country's largest fixed income fund outsell all US equity funds for the third consecutive month.
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At a time when all bets are off in the trading game, demand for PIMCO Advisors Total Return Fund continues to surprise the mutual fund industry, with net sales reaching $1.2 billion in March and year-to-date sales at $3.1 billion, according to Financial Research Corp (FRC) numbers.

The fund, up 2% year-to-date, holds 63% of its assets in mortgage-backed securities and 11% in US Treasury issues, and aims to generate returns from both income and capital gains, and invest primarily in intermediate term investment grade instruments.

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Next Best

The funds closest competitor with net sales of $557 billion, Vanguard Total Bond Index Fund, tracks the whole US bond market gauged by the Lehman Aggregate Bond Index and invests in 80% of the bonds held in this benchmark.

The Vanguard Total Stock Market Index Fund, comes in third, with net sales of $467 million.

According to other FRC figures:

  • Vanguard Group was the top selling mutual fund complex in March with net flows of $2.8 billion.
  • PIMCO Advisors was second with net flows of $1.3 billion,
  • followed by American Funds with net sales of $832 million.

Losers

FRC March figures, which include equity and fixed funds but not money market funds, show:

  • Fidelity Investments recorded net outflows of $3.0 billion
  • Janus Capital with outflows of $2.6 billion.

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