Bill Gross's bond mutual fund at Janus Capital Group Inc. suffered a 2.87% decline in its net asset value Monday, according to fund-research firm Morningstar Inc.

The drop is unusually large for a bond fund, according to people familiar with the industry. Mr. Gross's $1.5 billion Janus Global Unconstrained Bond fund follows a strategy that allows it to invest in a variety of securities, unlike a typical bond fund.

"I have spent 25 years investing with managers across every asset class, and I don't think I have ever seen a bond fund drop almost three percent in one day," says Bradley Alford, chief investment officer at Alpha Capital Management in Atlanta, which manages mutual funds.

By comparison, rival BlackRock's $31.1 billion Strategic Income Opportunities fund, which follows a similar strategy, fell 0.2% Monday, according to Morningstar.

A spokeswoman for Janus Capital declined to comment.

Mr. Gross has been managing the Janus Global Unconstrained Bond fund since late September of last year, following his abrupt departure from Pacific Investment Management Co.

Write to Kirsten Grind at kirsten.grind@wsj.com and Gregory Zuckerman at gregory.zuckerman@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 25, 2015 09:15 ET (13:15 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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