Bill Gross’s Janus Henderson Global Unconstrained Bond Fund dropped more than 3% on Tuesday, an unusually big decline for a mutual fund that invests in corporate bonds and other fixed-income securities.
The fund fell 3.04% on Tuesday, and is now down 5.94% for the year, according to data by Morningstar. Similar funds have returned, on average, a 0.22% decline in 2018, Morningstar said.
“Even for unconstrained bond funds, it’s rare for such a sharp decline,” said Todd Rosenbluth, director of ETF & Mutual Fund research at CFRA.
Rosenbluth said Gross may have been caught flat-footed during Tuesday’s selloff of Italian TMBMKIT-10Y, -4.82% Fearful of an escalating political crisis, investors fled to safer U.S TMUBMUSD10Y, +2.76% and German credits TMBMKDE-10Y, +41.12%
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