Pimco flagship fund is still bleeding billions

Paul McCulley and Bill Gross.
CNBC

Investors in June continued to pull money from Pimco's flagship bond fund, despite the high-profile return of one of the firm's top executives.

The Pimco Total Return fund registered its 14th consecutive month of outflows as investors pulled $4.5 billion, which actually was an increase from May's $4.3 billion, according to Morningstar. Those outflows came despite the return of Paul McCulley, who rejoined Pimco in late May as managing director and chief economist, and as the fund gained 0.34 percent, about double that of its peers.

Assets for the fund contracted to $225 billion, though it remains the largest mutual fund in the world and boasted $292.9 billion in April 2013. Pimco manages just below $2 trillion overall.

Total Return has underperformed its benchmark and its peers in 2014. The fund has returned 3.51 percent, compared to 3.93 percent for the Barclays Aggregate Bond index, and the 4.09 percent of its category. It lost 2.3 percent in 2013, which also was worse than its competitors.