Gundlach’s Total Return Fund Sees First Outflow Since 2014

(Bloomberg) -- Investors pulled $33.2 million from Jeffrey Gundlach's DoubleLine Total Return Bond Fund in October, the first outflow since January 2014.

DoubleLine's open-end mutual funds collectively posted a net inflow of $455.3 million last month and $12.3 billion this year, Los Angeles-based DoubleLine Capital said Tuesday in a statement.

The $61.6 billion Total Return has been one of the industry's fastest growers, and a year ago it reached the $50 billion milestone in record time for an actively run stock or bond mutual fund. This year through October the fund gained 3.7 percent, trailing the benchmark Bloomberg Barclays U.S. Aggregate index, which rose 5 percent. Total Return, which invests mostly in mortgage-backed securities, has outperformed 71 percent of its Bloomberg peers in 2016, 90 percent over the last three years and 92 percent over five years.

Gundlach's biggest fund has received an inflow of $8.3 billion year-to-date, according to DoubleLine.

The firm also said the $7.7 billion DoubleLine Core Fixed Income Fund took in $166.5 million during October, bringing year-to-date net deposits to $2.1 billion. The $1.4 billion DoubleLine Shiller Enhanced CAPE Fund, which combines fixed-income investments with derivatives that track stock sectors, attracted a net $77.3 million in October and $672 million this year.

To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.net. To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Josh Friedman, Vincent Bielski