Pimco can once again lay claim to having the world’s largest actively managed bond fund, just three months after losing bragging rights to West Coast rival TCW.
Co-managed by Pimco’s chief investment officer Dan Ivasycn and Citywire AA-rated Alfred Murata, the Income fund hit $79.1 billion in assets under management as of March 31. In comparison, the MetWest Total Return Bond fund slipped to $78.6 billion, down from $79 billion in February.
For years, Pimco’s Total Return fund held the title of the biggest actively managed bond fund. At its peak in April 2013, the fund, then managed by Bill Gross, held $293 billion of assets.
The giant fund lost hundreds of billions in assets after Gross left firm in 2014. Meanwhile, the Metropolitan West Total Return fund grew, eventually surpassing the Pimco fund in December last year as the latter fell to $78.5 billion and TCW’s offering hit $79.4 billion.
The Pimco Total Return fund had $73.6 billion as of March 31.
In an exclusive interview with Citywire, Ivascyn played down the importance of the Income fund’s status as the firm’s largest strategy.
‘In and of itself it means nothing to us and I personally don’t love the term flagship,’ he said.
‘I’ve been at Pimco almost two decades and in the industry a little longer than that. Strategies will be in vogue from time to time. You’ll see demand shift as client needs evolve. You will see some funds get bigger and some get smaller. The one thing I am confident about is, if you provide good risk-adjusted returns over time and a strong product to investors, you will see positive flows.’
To read the full interview, click here.