Being the world's biggest bond fund is not the only draw of Pimco Total Return Fund (PTTRX). Now "bond king" Bill Gross can add the magnificent recovery of all 2011 net outflow to his pitch, writes Min Zeng for the Wall Street Journal. Gross is Pimco's [profile] chief investment officer and driving force.

According to Morningstar data, the $260.9 billion bond fund drew in $1.36 billion in new cash during June, bringing total inflows through June 30 up to $5.9 billion. This outnumbers the $4.97 billion net outflow for all of 2011, the first calendar-year loss for the fund since its inception in 1987.

In addition, the fund has provided investors a return of 5.75 percent through June 29, coming out ahead of the 2.37 percent on the Barclays Capital US Aggregate Bond Index. The bond has also beaten 96 percent of its rivals so far this year.

Although the 2011 loss resulted from ill-timed wagers on Treasury bonds and Gross himself acknowledged in his June investment outlook the downside risk in holding Treasury bonds, he maintained that Treasury bonds are still the "cleanest of the dirty shirts." 

Edited by: Irene Park


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