Pacific Investment Management Co. had $39 billion in net redemptions during the third quarter as investors fled bonds in anticipation of rising interest rates.
Allianz SE, which owns PIMCO, said that its other asset-management unit Allianz Global Investors had net inflows of $1.3 billion in the quarter. PIMCO's share of Allianz's money-management assets fell by two percentage points this year to 84% as of Sept. 30, while AGI's share rose by 1.5 percentage points to 14%, according to an earnings statement Friday.
“While core bond categories have experienced outflows industry-wide, we have continued to see inflows into our absolute return and unconstrained strategies,” Mark Porterfield, a PIMCO spokesman, said in an e-mailed statement. PIMCO had $1.97 trillion in assets under management as of Sept. 30.
PIMCO's largest fund, Bill Gross's Total Return Fund, lost its title as the world's biggest mutual fund after shrinking to $248 billion following $33.2 billion in estimated redemptions this year through October, according to research firm Morningstar Inc. Investors have pulled money from its U.S. mutual funds every month since June, totaling $44 billion, according to Morningstar estimates.