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.

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.

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.


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.