Total Return Fund records largest redemptions in its history on Gross exit
Firm says it can manage outflows successfully.
The world’s biggest bond fund recorded its largest outflows in history last month, with investors withdrawing $23.5 billion from the Pimco Total Return fund (PTTAX) as manager Bill Gross left the firm he cofounded in 1971.
The withdrawals would leave the fund with about $198 billion in assets, according to figures from Morningstar Inc.
“Of note, the largest daily outflow occurred on the day of Bill Gross’ resignation from the firm, while outflows on the two following days were considerably smaller,” Pimco said in a statement. “The core fixed-income market in which the Total Return Fund invests is one of the largest and most liquid markets in the world, trading on average $700 billion of securities a day. Moreover, the fund is well positioned to meet potential redemptions. Short-term cash management is an area of expertise and strength at Pimco.”
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