Investors in PIMCO’s Total Return Fund withdrew $41.1 billion in 2013, taking assets down to $237 billion. It’s still a massive bond fund but the 14.7% decline reflects the wavering enthusiasm for bonds, if not dislike.
The trend isn’t getting any better with the fund losing about $4.2 billion in December, or 2% of its assets. With the withdrawals, PIMCO is forced to sell positions that hurt its holdings. The Fed is still buying far more than bond funds are selling but with the taper, the Fed is slowly leaving the game.
