PIMCO Funds Bled $5.5 Billion in April: Morningstar

Morningstar (MORN) says investors added close to $28 billion to long-term mutual funds in April. The fund flows included strong movement to both equity and bond funds.

There’s more bad news than good in the latest data, however, for PIMCO. Overall, the bond shop had net outflows of $5.5 billion last month, bringing its year-to-date outflows to some $21 billion.

On the bright side, the PIMCO Income Fund had $951 million of inflows. 

Still, Morningstar points out, the fixed-income fund group has lost nearly $80 billion to outflows over the past 12 months.

In contrast, Vanguard has seen its total fund flows jump $10.1 billion in April and $45.6 billion from January to April of this year.

The top fund for flows in April was the Vanguard Total Stock Fund, which attracted $3.6 billion in April and $12.3 billion year to date.

In contrast, the flagship PIMCO Total Return Fund had net outflows of $3.1 billion in April. Its outflows for the first four months of the year surpass $11 billion.

Not all bond funds are having bad times.

“After notable outflows last year, core, intermediate-term bond funds saw their second consecutive month of inflows, bringing in $3.3 billion in April,” said Morningstar analyst Michael Rawson, CFA, in a report released Tuesday, which updates its May 2 estimates.

Municipal-bond funds collected $1.3 billion for their fourth straight month of inflows.

Equity Momentum

But in the first four months of 2014, U.S.-equity funds had inflows of $25.2 billion, their strongest start to the year since 2004, the Chicago-based research group says.

“The majority of inflows for the asset class benefited passive funds,” it noted. “Active U.S.-equity funds had outflows of $5.7 billion through April, although JPMorgan, MFS and Putnam have successfully attracted robust flows to active offerings.”

In terms of style categories, large-blend and foreign large-blend led April’s inflows. At the same time, large-growth funds had outflows, including the American Funds Growth Fund of America, which has experienced net redemptions for 51 straight months.

The multi-sector bond category was a popular choice for investors in April, most notably the PIMCO Income Fund—which had $951 million of inflows.

Fund Families

Vanguard’s performance still tops the charts—with $10 billion of net inflows in April and nearly $46 billion so far in 2014.

JPMorgan had April inflows of close to $3 billion; in the first four months of the year, inflows were nearly $11 billion

Dimensional Fund Advisors is close behind, with April inflows of $2.7 billion and year-to-date inflows of $10.4 billion as of April 30, Morningstar says.

Fidelity, however, had outflows of $435 million in April; its year-to-date outflows were close to $2 billion.

American Funds, though, had inflows of $758 in April, and its January-to-April inflows were nearly $2 billion.

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