Pacific Investment Management Co. saw US$23.5 billion in outflows from its flagship PIMCO Total Return Fund in September, most of it in the wake of the departure of the firm’s founder, Bill Gross.
The Newport Beach, Calif.-based firm says that the largest daily outflow occurred on the day of Gross’s resignation from the firm, but that outflows on the two following days were “considerably smaller”. PIMCO doesn’t disclose daily flow data.
Meeting those redemptions is not a problem for the fund, PIMCO says. “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 US$700 billion of securities a day. Moreover, the fund is well positioned to meet potential redemptions,” the firm says, adding that short-term cash management is one of its specialties.
Additionally, the firm notes that diversified and alternative fixed income strategies now account for more than two-thirds of PIMCO’s assets under management. “As we engage our clients around the world, we are confident that the vast majority of them will continue to stand with PIMCO as we demonstrate why we have earned the reputation as one of the world’s premier investment managers,” it says.