NEW YORK (Reuters) - Pimco, the biggest emerging market bond portfolio manager in the world, posted a record total outflow of $5.8 billion (3.7 billion pounds) from its emerging market funds so far this year through the end of November, according to the latest data by Morningstar.
Pimco’s funds have suffered from ill-timed investment bets in Russia, Brazil and Venezuela along with the ongoing flight by investors from emerging markets, exacerbated by the management shakeup following the dramatic departures of co-founder Bill Gross and Chief Executive Officer Mohamed El-Erian.
The year-to-date outflow figure for Pacific Investment Management Co’s emerging market bond funds easily surpasses 2013’s total outflow of $2.0 billion, mutual-fund data provider Morningstar said on Wednesday.
The $9.8 billion Pimco Emerging Local Bond Fund (PEBLX.O), which invests primarily in local currency government bonds in emerging markets, has seen outflows of over $1.6 billion so far this year through the end of November.
The $3.3 billion Pimco Emerging Markets Bond Fund (PEBIX.O), which focuses on external-currency debt denominated in U.S. dollars, has been cut in half this year through the end of November with net outflows of $3.3 billion, Morningstar added.
The $1.37 billion Pimco Emerging Markets Corporate Bond Fund (PEMIX.O), which invests in fixed income securities issued by corporations in emerging markets, has seen outflows of $876 million so far this year through the end of November, Morningstar said.
Michael Gomez, who is head of Pimco’s emerging markets portfolio management team, said in an email statement: “The investment themes in Pimco’s portfolios are based on long-term ideas and views. While emerging markets have been volatile, we think segments of the market offer compelling risk/reward opportunities for long-term investors.”
Reporting by Jennifer Ablan; Editing by Phil Berlowitz