Pimco Loss Is MetWest Gain as New Gross Fund Slow to Win
Pimco’s pain isn’t Bill Gross’s gain, at least not yet.
The Janus Global Unconstrained Fund, managed by Gross, received $66.4 million in September, according to Morningstar Inc., a fraction of the $23.5 billion that left his former fund at Pacific Investment Management Co.
Gross’s resignation on Sept. 26 from the firm he co-founded more than four decades ago triggered record redemptions from his Pimco Total Return fund. That money hasn’t immediately followed Gross to his as-yet-unproven fund, as investors parked assets in money funds and exchange-traded funds.
The MetWest fund is a logical choice because “they have had good solid performance and consistent results for a long time,” said Michael Rosen, chief investment officer at Angeles Investment Advisors LLC in Santa Monica, California, who oversees $45 billion for endowments and pensions.
Gross, who managed the $201.6 billion Pimco Total Return Fund, the world’s largest bond fund, left Pimco for Janus Capital Group Inc. after his deputies threatened to quit and management debated his ouster, people familiar with the matter said at the time.
The Janus unconstrained fund, which has the flexibility to invest across fixed-income securities globally, started in May. Last month’s investor subscriptions bring assets at the fund to $79.1 million, according to Morningstar.
The MetWest fund, started in 1997 by Tad Rivelle, Stephen Kane and Laird Landmann, has advanced 4.9 percent this year, compared with 3.9 percent for Pimco Total Return, according to data compiled by Bloomberg.
“The flows for October continue to be above average,” Ronald Redell, president of DoubleLine Funds, said in a telephone interview.
Source: businessweek- Pimco Loss Is MetWest Gain as New Gross Fund Slow to Win
