The Strategist

Life after Gross. PIMCO Made It.

08/07/2015 - 14:48

The largest operating company in the world Pacific Investment Management Co. (PIMCO) managed to cope with the consequences of withdrawal of one of its founders, Bill Gross, said Dieter Wemmer, the chief financial officer of Allianz SE, which is in ownership of PIMCO.

The outflow of funds from PIMCO would probably soon cease, he said in an interview with Bloomberg.

According to him, PIMCO plans to "approach the break-even level in the third quarter of 2015".

- Sometimes we are seeing an influx of investors, sometimes - outflow, - added Wemmer.

The company’s flagship fund - Total Return - recorded a sharp outflow of funds in connection with the departure of one of its PIMCO founder Bill Gross in autumn 2014. In April, he lost the title of the largest bond fund in the world.

Currently, assets of Total Return are approximately estimated of $ 101 billion, compared with a peak of $ 293 billion, recorded in April 2013.

In July, investors withdrew $ 2.5 billion from the fund, compared with $ 3 billion in June.

PIMCO’s CEO Douglas Hodge in June noted that investors are returning to the funds of the company, as uncertainty have been reduced.

- The trajectory of the flow of funds has changed significantly over the past nine months, - he said.

In July, more than 40% Pimco’s funds recorded a net inflow of funds of investors.