Pimco Income Fund, run by Dan Ivascyn, whipsawed by big bond rally

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Pimco Income Fund, run by Dan Ivascyn, whipsawed by big bond rally
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The massive rally in Treasuries has whipsawed the biggest name in the bond world...

NEW YORK - The massive rally in Treasuries has whipsawed the biggest name in the bond world.

Several macro trades have hurt the fund’s performance so far this year: its underweight position in Treasuries and corporate credit risk and its heavy exposure to mortgages. The Pimco Income Fund is up 4.68 percent year-to-date, lagging its multi-sector bond category by 3.21 percentage points, Morningstar data show. Moreover, the fund is lagging the Bloomberg Barclays U.S. Universal Total Return Index by 4.24 percentage points for the same period, according to Morningstar.

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