Investors Abandon PIMCO Funds

After the departure of Bill Gross on September 26, investors withdrew a record amount of assets. But Morningstar analysts say investors should not fear the worst

Mara Dobrescu 27 November, 2014 | 12:12PM

PIMCO’s Total Return Fund had an estimated outflow of $32.3 billion in October, which is almost double the $17.9 outflow in September. After the departure of Bill Gross on September 26, investors withdrew a record amount of assets. PIMCO’s press release, however, points out that nearly half of the outflow occurred in the first seven trading days after Gross’ departure, when investor concerns were at their peak. Recently, outflows have slowed, but they are still at elevated levels compared with before Gross’ departure.

The European-sold version of the fund, PIMCO GIS Total Return, also saw significant outflows, though the magnitude of redemptions was naturally less pronounced given the smaller size of the fund. The graph below illustrates monthly estimated outflow data for PIMCO Total Return and PIMCO GIS Total Return over the past three years.

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About Author

Mara Dobrescu

Mara Dobrescu  is a fund analyst at Morningstar France.

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