Pacific Investment Management Co.’s biggest mutual fund had the worst year of client withdrawals in the history of fund management as the firm lost both of its co-chief investment officers, Bill Grossand Mohamed El-Erian.
Bloomberg News reports that investors pulled $19.4bn from Pimco Total Return Fund in December, bringing redemptions in 2014 to a record $105bn, according to data compiled by Bloomberg using information from Pimco and Morningstar. Assets in the world’s biggest bond fund fell to $143.4bn as of December 31, according to a January 2 statement from Pimco, down by more than half from a peak of $293bn in April 2013.
'No doubt, it is the largest outflow for one year in dollar terms;, among money managers, according to Russel Kinnel, director of mutual-fund research at research firm Morningstar.
Pimco is seeking to reassure investors and stem redemptions after Gross left on September 26, bringing back high-profile money managers and naming top performers to run its largest funds.
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