Fixed Income  

Pimco sees record redemptions in wake of Gross exit

Pimco has suffered a record $27.5bn (£17.2bn) outflow from its Total Return fund after the exit of bond giant Bill Gross.

The manager announced his decision to quit Pimco and join rival Janus Capital at the end of September and now figures for the first full month since his move show the fund is now $170bn in size. This is down significantly from its $293bn peak in April last year.

The group also said its Dublin-domiciled version of the fund, Pimco GIS Total Return Bond, had seen assets hit $11.4bn as at October 31.

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The group said it saw $2.1bn of outflows from the fund with nearly half of those in the first five days of October.

“The daily average flow for the last five days in October declined approximately 90 per cent from the daily average during the first five trading days following Bill Gross’s departure,” Pimco said.

Pimco said many of its other GIS funds, the Ucits compliant range which has more than 50 funds, “remain in strong client demand”.