Gross’s bond-fund assets fall below $1b

that dates to 1971. Gross leveraged up his bond fund through the use of futures during the first half of 2018, only to suffer big losses on those tied to interest rates. He had almost $153 million of losses on interest-rate futures in the first half.

Unconstrained bond funds, which represent a niche within the fixed-income world, free managers like Gross to hold various types of assets, ranging from cash to banks loans and derivatives.

Bets that US 10-year bond yields would narrow their spread over those of similar German debt were mostly losers in 2018. The gap closed at about 2.46 percentage points on Friday.

Estimates for the Janus fund flows are based on the change in assets over the month that isn’t accounted for by performance, fees or reinvested dividends. The numbers may vary from actual figures and from estimates compiled by other data providers.