Pacific Investment Management Co. said its assets under management declined by $97 billion last quarter, when co-founder Bill Gross left the firm.
Bloomberg News reports that assets fell 4.9 percent to $1.88 trillion from $1.97 trillion at the end of the second quarter, Newport Beach, California-based Pimco said Friday in a statement. Changes in assets are a function of fund returns, currency swings and client flows, the firm said in the statement.
Gross, 70, on Sept. 26 abruptly left Pimco to run an unconstrained bond fund at Janus Capital Group Inc. His departure prompted investors to review their holdings with Pimco and triggered $23.5 billion in redemptions in September from the Total Return Fund he previously ran.
Pimco had been struggling with record outflows from the Total Return Fund even before Gross’s departure. The fund has advanced 4.1 percent this year, lagging behind 59 percent of similarly managed funds, according to data compiled by Bloomberg.
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