Published On: Thu, Dec 4th, 2014

Pimco Still Sings Redemption Song, But at Slower Tempo

Scott Mather

After the shocking departure of co-founder of Pimco Bill Gross in September for the much smaller Janus Capital, the iconic Total Return Fund he started saw massive redemptions, totaling  $51 billion for September and October.

Since then, Bloomberg reports Pimco is still singing the Redemption Song, but at a slower tempo. In the last month, the fund had only 9.5 billion in redemptions, and it looks like those who wanted to leave because of Gross’ departure have already left.

In fact, there was a large number of redemptions before Gross left, although not to the same scale. The fund was bleeding back in May, and the world’s major bond fund now has $168.2 billion compared with the peak at $293 billion in April of 2013.

Scott Mather, a co-manager of Pimco’s Total Return Fund, told Bloomberg, “We’re talking about investments again, investment themes, the future of what opportunities look like.”

Pimco’s Total Return fund was once the largest mutual fund, but now it is in third place behind two funds from Vanguard.

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