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Fund manager Pimco handed its former chief investment officer Bill Gross - known in financial markets as "the bond king" - a $290m bonus in 2013 despite his Total Return Fund lagging behind most of its peers, according to Bloomberg news.
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The fund lagged those indexes for the five years ended in March, according to Morningstar.
After loads are taken into account, needless to say, the average load fund lags far behind.
Invesco Perpetual's Hong Kong and China fund lagged on a gain of only 54 per cent.
In 2011, his Pimco Total Return Fund lagged behind a major bond index by nearly 4% – a giant rift.
The Free Enterprise Action fund lagged the Standard & Poor's 500-stock index by about five percentage points in 2006.
Because they owned no technology stocks during the Internet boom, the fund lagged slightly behind its peer group for the three years ended Thursday.
They found that the average renamed fund lagged behind its control group by 2.3percentt over the year after its name change.
When no one knew that the average load fund lagged behind the average no-load, investors had no motivation to find an alternative source of discipline.
Instead, the fund lagged the indexes by 10.6 percentage points during the period in dispute, the 15 months to March 1998, returning 20.6percentt, less than the 31.2percentt rise in the benchmark.
Little noticed at the time was Mr. Carhart's discovery that the average load fund lags behind the average no-load by approximately 60 basis points a year, even before loads are taken into account -- equivalent to more than 6percentt over a decade.
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