In step with the pace of inflows and outflows into bond funds, the Pimco Total Return Bond fund saw its first outflows of cash since December 2001. Bond funds as a category saw outflows of $8.8 billion in July [see MME 8/25/03], and the $72 billion Pimco Total Return Bond fund saw outflows of $834 million in the month, Dow Jones reports. That was 1.2% of its assets.
While a small amount, it was the funds biggest outflow since May 2000, when it $6.5 billion of its assets left the door. In December 2001, investors took out a net $121.5 million from the fund.
July appears to signal a turning point for investors away from bonds into stocks, according to Dow Jones.