The PIMCO Total Return Fund saw an estimated $27.5 billion in outflows in the month of October, the worst redemptions ever in a given month, and a clear indicator that the departure of its portfolio manager and PIMCO co-founder William H. Gross led to significant assets leaving the Newport Beach, Calif.-based firm.
The figures, reported Tuesday by Pacific Investment Management Co. in a news release, show the withdrawals surpassed last month's $23.5 billion in outflows, much of it believed to be in the days after Mr. Gross left on Sept. 26 to join Janus Capital Group.
The biggest previous monthly withdrawal was $9.6 billion in June 2013, according to research firm Morningstar Inc.
PIMCO statistics show that the Total Return Fund is now down to $170.9 billion in assets. The fund, the second-largest mutual fund in the world, had nearly $300 billion in assets in 2013. More than a third of the fund's assets are from 401(k) and other defined contribution plans.
Pensions & Investments has reported a large number of defined contribution and defined benefit funds moving assets from the mutual fund in light of Mr. Gross' departure.
Meanwhile, Vanguard Group reported on Tuesday it had attracted $164.3 billion in subscriptions in its mutual funds and exchange-traded funds through October, more than it has gained in any full calendar year in its 39-year history, John Woerth, a spokesman for Vanguard, said Tuesday in an e-mail. The firm received $141 billion in 2012, its previous high.
PIMCO did not release figures for any outflows from separate accounts. Data from eVestment show that as of Sept. 30, PIMCO had more than $50 billion in total return separate accounts.
After years of superior performance, the Total Return Fund started to experience redemptions in May 2013 when performance turned sour and started lagging its peers.
Bloomberg contributed to this story.
