Gross' departure hits PIMCO

PIMCO lost more than a quarter of its assets under management worldwide at the end of 2014, after founder Bill Gross announced his departure.

Tuesday, March 31st 2015, 10:00AM

Morningstar data shows PIMCO suffered outflows of US$176 billion worldwide last year, or 26% of its 2013 assets.


Gross announced he would leave the firm to take up a role at Janus Capital Group. Morningstar said that sent a shockwave through the investment world and prompted unprecedented outflows from PIMCO.

Outflows from PIMCO Total Return amounted to $96.1 billion in the space of only five months.

PIMCO’s lost benefited other funds in the intermediate-term bond category. TCW enjoyed consistent inflows to Metropolitan West Total Return Bond MWTIX, and Dodge & Cox Income DODIX attracted significant amounts of investor money.

The Morningstar data shows Vanguard is the biggest asset manager in the world with almost $3 trillion in assets.

“With a wide variety of accessible investment options, the ability to capitalise on economies of scale, and a philosophy of passing the results of efficient operations to its investors in the form of lower costs, Vanguard has built a solid reputation and continues to attract the highest flows,” Morningstar said.

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