Pimco's flagship Total Return Bond Fund took a hefty hit in June, due to the sharp rise in bond yields that was sparked by fears the U.S. Federal Reserve will scale back its asset-purchasing program.
The Pimco fund, which is the world's largest bond fund, with over $285 billion asset under management, has shed 3.79 percent from its net asset value since the start of June. This makes it the 12th-worst performer out of 177 similar funds tracked by data firm Lipper, according to the Wall Street Journal.
Established in 1997, and led by Pimco co-founder Bill Gross, the fund boasts the highest performance rating from research firm Morningstar. However, the net asset value of the fund is down 4.57 percent year-to-date at $10.65, a low not seen since August 2008.
(Read More: Waiting on a Bond Market Auction for Cues)
This comes as data from TrimTabs Investment Research showed that mutual and exchange-traded funds hemorrhaged a record $47.2 billion of bonds in June, the highest outflow of any month on record.
The global sell-off in bonds began on May 22, after minutes from a Fed policy meeting signaled that its bond-buying program—which has suppressed bond yields and boosted stocks—could soon be pared back. The sell-off accelerated when Fed Chairman Ben Bernanke echoed these sentiments at a press meeting last Wednesday, suggesting that purchases could be scaled back this year, if the U.S. economic outlook continues to improve.
(Read More: Bond Fund Outflows Hit Record on Tapering Fears)
Bond market outflows stabilized somewhat this week, but the yield on 10-year U.S. Treasury note remains at 2.56 percent, close to a 2-year high.
On Tuesday Pimco CEO Mohamed El-Erian told CNBC that the Fed risked destabilizing the markets by providing too much guidance on their future plans regarding asset purchases.