Pimco’s Assets Drop Below $100 Billion Post-Gross Era
Pimco’s Decline Post-Bill Gross
Once a titan in the bond fund world, Pimco has seen its assets plummet below $100 billion—a striking shift since founder and “bond king” Bill Gross left nearly a year ago. Gross’s departure triggered significant investor withdrawals, leading to an ongoing decline that has brought Pimco’s assets to their lowest level since 2007.
Impact on Pimco’s Total Return Fund
In August alone, Pimco’s Total Return Fund, once Gross’s flagship fund, saw $1.8 billion in withdrawals. The fund, now managing less than $100 billion, pales in comparison to its peak of $293 billion in 2013, marking a sharp decline as Vanguard surpassed Pimco to become the largest bond fund manager globally.
Gross’s Departure and Pimco’s Identity Crisis
Pimco’s struggle highlights the risk of tying a brand too closely to one individual. Gross, an icon of the bond market, shaped Pimco’s image and direction for years. After clashing with other executives over management style, Gross left Pimco for Janus Capital Group in September last year, triggering even larger outflows from an already struggling fund.
The Role of New Leadership
In a bid to strengthen its position, Pimco recently appointed former Federal Reserve Chair Ben Bernanke as an adviser. However, this high-profile addition has yet to turn around Pimco’s trajectory.
