Bill Gross’ ‘Old friend’ Old Mutual shifts money to Janus from Pimco

Old Mutual Global Investors transferred management of a $272 million bond fund to Bill Gross at Janus Capital Group Inc. from his previous firm, Pacific Investment Management Co.
Mr. Gross, 71, will take over as the manager of the Old Mutual Total Return USD Bond Fund on July 6, Old Mutual said in a statement from London on Friday.
“Old Mutual is ‘an old friend’ that always had faith in me at Pimco and now has expressed confidence in me at Janus,” Mr. Gross said in the statement. “They will get our best efforts and sincere thanks for the opportunity.”
Mr. Gross is seeking to attract capital to Denver-based Janus after leaving Pimco, which he co-founded in 1971, amid a power struggle. His Pimco Total Return Fund, which peaked at $293 billion in 2013, saw client withdrawals for 16 consecutive months before his departure.
“We have a long-standing relationship with Bill Gross,” said Warren Tonkinson, global head of distribution at Old Mutual Global Investors. “Bill has a vast amount of experience and an outstanding track record.”
Mr. Gross’s Janus Global Unconstrained Bond Fund, with assets of $1.52 billion at the end of April, fell 0.9% in the past month, outperforming 55% of peers, according to data compiled by Bloomberg. It lost money after he wagered German bunds would trade in a narrow range rather than betting all-out against the debt. It’s down 0.3% this year and 1.6% over the past 12 months.
Old Mutual said Mr. Gross managed the fund for more than 12 years since it was started in 2002. The pool’s objective of total return consistent with preservation of capital and prudent investment management won’t change, it said.