The PIMCO Total Return Fund, the world's largest mutual fund, had $5 billion in client redemptions last year as performance trailed that of its rivals.
Clients pulled $1.35 billion from the fund in December, according to Chicago-based researcher Morningstar Inc.
PIMCO Total Return, managed by Bill Gross, co-chief investment officer of Pacific Investment Management Co., returned 4.2% in 2011, trailing 69% of its peers, according to data compiled by Bloomberg.
Mr. Gross missed a rally in Treasuries as the European debt crisis spurred demand for government-backed debt.
In an October letter to clients titled “Mea Culpa,” Mr. Gross called 2011 a “stinker” of a year. After eliminating Treasuries from the portfolio in February, Mr. Gross returned to the securities, bringing government and Treasury debt to 23% as of Nov. 30.