Pimco's flagship bond product has lost its status as the world's largest mutual fund, Morningstar data has shown.
The $248 billion Pimco Total Return fund was overtaken by the Vanguard Total Stock Market Index fund, a product which tracks the entire U.S. equity market, in October, according to the funds data provider.
The Vanguard fund had $288 billion of assets at the end of October.
The Pimco Total Return fund, which is run by renowned bond manager Bill Gross, saw its sixth consecutive month of outflows in October, as investors withdrew $4.4 billion of net assets, bringing total outflows to $33.2 billion year-to-date.
The Pimco product has lagged the sector of late, returning 0.9 percent in October, compared to a 1 percent average return by U.S. intermediate term bond funds - those with maturity levels of 10 to 15 years - Morningstar data showed. The Pimco fund has lost 1.29 percent over the past year, compared to an average 0.71 percent loss.
Investors' healthy appetite for stocks, which has seen the S&P 500 power 24 percent higher this year, has dampened demand for fixed income investments in general.
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