Pimco's funds plunge following Bill Gross exit

Global StocksPlus & Income Fund slips 9.2% to $22.80
SEP 26, 2014
By  Bloomberg
In the stock market, investors didn't wait around to assess the implications of Bill Gross's departure from Pacific Investment Management Co. -- they sold. Pimco's Global StocksPlus & Income Fund slipped 9.2% to $22.80 at 10:40 a.m. in New York, while its High Income Fund decreased 8.4 % to $11.40, the biggest drop in almost two years. The Pimco Corporate & Income Opportunity Fund slid 6.3% to $17.24, and the Pimco Total Return ETF declined 0.3% to $108.61. Closed-end funds bore the brunt of the selling because they aren't subject to the intraday redemption and creation processes that cause exchange-traded funds to hew to the market prices of their underlying assets. For instance, as of yesterday, the Global StockPlus & Income Fund traded at a 78% premium to its net asset value, while the High Income Fund cost 46% more than the value of its bonds. “A lot of people bought into Pimco because of Bill Gross who was the face of the organization and so they're shooting first and asking questions later,” Bill Mann, chief investment officer of Alexandria, Va.-based Motley Fool Asset Management LLC, said by phone. “Regardless what kind of hand he had in all the products being impacted, investing is a personal business, and the market is saying it trusted Bill Gross.” Among other Pimco funds down on the news of Gross' departure are the Dynamic Credit Income Fund, which declined 1.9% to $21.92, and the Pimco Dynamic Income Fund, which fell 1.8% to $31.52. Allianz SE, the German insurer that owns Pimco, slid 6.1% in Frankfurt trading. Shares of Janus Capital Group Inc., where Gross is going to work, rallied 32% to $14.71 in U.S. trading.

Latest News

GTCR to acquire FMG Suite, expanding its wealth tech portfolio
GTCR to acquire FMG Suite, expanding its wealth tech portfolio

The private equity giant will support the advisor tech marketing firm in boosting its AI capabilities and scaling its enterprise relationships.

$29B Lido Advisors expands in Utah with Olympus Wealth Management
$29B Lido Advisors expands in Utah with Olympus Wealth Management

The privately backed RIA's newest partner firm brings $850 million in assets while giving it a new foothold in the Salt Lake City region.

Annuities hit new $223B high in H1 2025, LIMRA says
Annuities hit new $223B high in H1 2025, LIMRA says

The latest preliminary data show $117 billion in second-quarter sales, but hints of a slowdown are emerging.

AssetMark taps former Envestnet RIA leader for new Charlotte hub
AssetMark taps former Envestnet RIA leader for new Charlotte hub

The $139 billion TAMP has hired industry veteran Phil Rogerson, unveils $10 million commitment for strategic expansion in North Carolina.

Alaris Acquisitions CEO: AI-driven staff reductions could boost RIA valuations
Alaris Acquisitions CEO: AI-driven staff reductions could boost RIA valuations

CEO Allen Darby sees a coming shift in M&A dynamics as AI eliminates clerical roles at RIAs, leaving buyers and sellers to negotiate who benefits from the added margin.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.