The Equus Total Return Fund ( EQS) literally is selling for 59 cents on the dollar.
Pimco was wrong, and its flagship Total Return Fund ended the year with a 4.2% return.
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Fund managers are copying the success of Bill Gross and the Pimco Total Return fund, which uses leverage.
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But no investors will be more challenged than those with billions already managed by Bill Gross in the Pimco Total Return Fund.
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However, a recently proposed merger with a sister fund, the DCA Total Return Fund ( DCA), aims to change the investment focus away from the real estate sector.
Returns so far this year for the Pimco Total Return fund were 1.37% as of May 15, putting it in the bottom 14% of comparable funds for the period, according to Morningstar.
BlackRock 's (nyse: BLK - news - people ) Total Return fund returned 1.43% for the year through May 15, putting it in the bottom 18% of like funds.
Pimco's Gross has taken a decidedly different focus than the other two in his total return fund, allocating just 2% of his holdings while emphasizing mortgages, which make up 42%, the largest chunk.
We also continue to own some traditional bonds funds, such as PIMCO Total Return Fund, in addition to other income-oriented investment vehicles such as the Nuveen High Yield Bond Fund, which yields more than 7%.
Bill Gross and Mohamed El-Erian have turned bullish on muni bonds ahead of inevitable tax hikes in 2013, and have put their money where their mouth is by beefing up the allocation to these securities in the Total Return Fund.
And while many investment advisers traditionally wait for a 3-year track record to commit new money to an active strategy, the Pimco Total Return ETF will more likely be judged sooner by its variance to the Pimco Total Return Fund, sporting nearly a quarter-century of returns.
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The firm filed a prospectus with the Securities and Exchange Commission (SEC) to offer their Total Return mutual fund as an Exchange Traded Fund (ETF).
The total return of the fund since its 2001 inception remains 242.1%, the document says.
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Rowe Price fund had a 43.86% total return, and Montgomery's fund is up 46.35%.
The launch of the Pimco Total Return Exchange-Traded Fund will test the mettle of investors with trillions of dollars invested in traditional bond mutual funds.
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The PIMCO Total Return Exchange-Traded Fund (BOND) is a diversified portfolio of high quality bonds that is actively managed in an effort to maximize return in a risk-controlled framework.
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Special Offer: Among mutual fund newsletters Equity Fund Outlook's 17.4% total return in the last 12 months beat all other fund letters according to Hulbert Financial Digest.
According to Morningstar, the average stock mutual fund had a total return of 7%.
From 2000 to 2010 the average mutual fund posted an annual total return of 3.18%.
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Investors should expect this to be the total return from a U.S. total bond market index fund over the next 10 years.
Because the potential total return of bonds is more limited than that of stocks, fund expenses matter much more, especially now that interest rates are at 30-year lows.
By comparison, the average diversified stock mutual fund manager, according to Lipper, had a total return of 12.37% last year.
The flagship AIM Constellation Fund, which Zschappel has steered since 1996, turned in a dazzling 44% total return in 1999.
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