Gross' flagship PIMCO fund makes first annual loss since 1999

PIMCO's $244bn Total Return fund made its first annual loss since 1999 last year, as the sell-off in US treasuries and other fixed income asset classes took its toll.

The fund, managed by PIMCO co-CIO Bill Gross, lost 2% according to Morningstar data, after the Federal Reserve tapered bond purchases late last month in a move which pushed yields up and prices down. The fund fell 1% in December alone as a result. The fund's performance is the weakest since 1994, when it posted a negative return of 3.6%, and is the first time since 1999 that it has made an annual loss. Treasuries - which make up a large portion of Gross's portfolio, worth 37% according to Reuters - endured a tough second half following the Federal Reserve's indication in May that it w...