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UPDATE 1-Pimco Emerging Market funds' outflows slow in Jan -Morningstar
February 9, 2015 / 6:22 PM / 3 years ago

UPDATE 1-Pimco Emerging Market funds' outflows slow in Jan -Morningstar

(Adds quote from head of Lipper Americas Research, background on withdrawals; byline)

By Jennifer Ablan

NEW YORK, Feb 9 (Reuters) - The Pimco Emerging Local Bond Fund posted $5 million in inflows for January, reversing the net withdrawals seen in the last few months of 2014, but outflows at other Pimco emerging market bond funds continued, albeit at a slower pace, according to Morningstar data provided on Monday.

Investors pulled $554 million in December and $312 million the previous month from the $8.65 billion Pimco Emerging Local Bond Fund, which invests primarily in local currency government bonds, Morningstar said. At the end of January 2014, assets under management stood at $10.73 billion.

“We saw a clear drop in investor fears about emerging markets in January, according to their flows activity,” said Jeff Tjornehoj, head of Lipper Americas Research, a Thomson Reuters research unit.

Pimco’s emerging market funds have suffered from ill-timed investment bets in Russia, Ukraine, Brazil and Venezuela along with the ongoing flight by investors from emerging markets. They have also been hurt by a management shakeup following the dramatic departures of Pimco co-founder Bill Gross and Chief Executive Officer Mohamed El-Erian. [ID: nL2N0NT0XP]

The Pimco Emerging Markets Bond Fund, which focuses on external-currency debt denominated in U.S. dollars, posted $163 million in outflows for January, down from $459 million in December and $562 million in November, Morningstar added. The fund’s assets under management stood at around $2.49 billion as of January, down from $5.93 billion as of January 2014, Morningstar data show.

The Pimco Emerging Markets Corporate Bond Fund, which invests in fixed income securities issued by corporations in emerging markets, posted $79 million in withdrawals for January, with assets under management now at $350 million, Morningstar said. At the end of January 2014, assets under management stood at $1.31 billion, according to Morningstar.

Lipper’s Tjornehoj said the Pimco Emerging Markets Corporate Bond Fund “still can’t catch a break as it’s now shed over $1 billion in assets due to outflows over the past eight months.” (Reporting By Jennifer Ablan; Editing by Peter Galloway)

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