UPDATE 1-Pimco Total Return Fund ups Treasuries in tumultuous June
July 15 (Reuters) - The Pimco Total Return Fund, the world's largest mutual fund, increased its holdings of Treasury securities and mortgages in June as performance fell to its lowest level since the financial crisis, data from the firm's website showed on Monday.
The fund, run by Pimco founder and co-chief investment officer Bill Gross, increased its holdings of Treasury securities to 38 percent in June from 37 percent in May during a broad selloff in the bond market. The fund also increased its holdings of mortgage securities to 36 percent in June from 34 percent the prior month.
The fund was down 2.64 percent in June, marking its weakest monthly performance since September 2008, according to Morningstar. Investors pulled a record $9.6 billion from the fund last month, reducing its assets to roughly $268 billion, the Chicago-based Morningstar said.
The fund also showed a decrease in its holdings of non-U.S. developed market securities to 5 percent in June from 7 percent the prior month. Holdings of investment-grade and high-yield corporate bonds, as well as emerging market securities, were unchanged in June.
The fund's exposure to "other" securities, which may include municipal and convertible bonds, preferreds, and Yankee bonds, was at 5 percent in June.
Pimco said on its website that its U.S. Treasuries and government-related holdings may include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities, and interest rate swaps.