Slideshow Leaving Pimco? 4 Gold-Rated Fund Options

  • October 06 2014, 4:40pm EDT
5 Images Total

Leaving Pimco? 4 Gold-Rated Fund Options

In the midst of record redemptions from the Pimco Total Return Fund following the surprise exit of its legendary manager Bill Gross, advisors may be exploring alternative selections for clients' fixed income allocations.

Gross' departure from the firm he co-founded in 1971, for a much smaller fund at Janus Capital, prompted a record $446.5 million in withdrawals on Sept. 26. The following Monday Morningstar downgraded the bond fund's rating from gold to bronze. Overall, Pimco reported net outflows of $23.5 billion in September.

As investors flee, what are their options? "If you are looking for a substitute the next logical step would be to look at the intermediate bond funds that are gold-rated," says Morningstar analyst Josh Charney, who adds that only about 3% of total funds receive such a rating. "That could be a really good starting point."

With many advisors reevaluating their bond fund investments, here are the four intermediate-term bond funds that also carry a gold rating from Morningstar. -- Andrew Coen

View a single-page version here.

All data from Morningstar as of Oct. 2.

Metropolitan West Total Return Bond Fund (MWTRX)

YTD Return: 4.65%
3-year return: 5.64%
Total assets: $34.2 billion
YTD Flows: $7.3 billion

Content Continues Below

Dodge & Cox Income Fund (DODIX)

YTD Return: 4.86%
3-year return: 4.90%
Total assets: $29.4 billion
YTD Flows: $3.4 billion

Fidelity Total Bond Fund (FTBFX)

YTD Return: 4.67%
3-year return: 3.97%
Total assets: $16.1 billion
YTD Flows: $3 billion

Loomis Sayles Investment Grade Bond A (LIGRX)

YTD Return: 4.54%
3-year return: 6.31%
Total assets: $10.4 billion
YTD Flows: $254 million