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Pimco Total Return Fund Losing Inventors

(Image source: Bloomberg)

According to Morningstar, Inc. (NASDAQ:MORN), Pimco’s total return fund loss 14% of its assets, which is about $41 billion. Tapering expectations from the Fed is making investors run away from the fund.  According to Bloomberg, $26.4 billion was taking out of the fund by investors in last four months. If yields increase the price of bonds will decrease. Outflows from the fund and losses are causing the fund to fall behind its peer. In July alone outflows accounted for $7.5 billion.