September monthly net flows for the Total Return Fund were estimated to be -$23.5bn. Of note, the largest daily outflow occurred on the day of Bill Gross’s resignation from the firm, while outflows on the two following days were considerably smaller.
The core fixed income market in which the Total Return Fund invests is one of the largest and most liquid markets in the world, trading on average $700bn of securities a day. Moreover, the fund is well positioned to meet potential redemptions. Short-term cash management is an area of expertise and strength at PIMCO.
Investors have shown confidence in PIMCO as evidenced by significant inflows into strategies such as the PIMCO Income Fund, which has seen over $6.5bn of net inflows year to date in 2014. Diversified and alternative fixed income strategies now account for more than two-thirds of PIMCO’s assets under management. As we engage our clients around the world, we are confident that the vast majority of them will continue to stand with PIMCO as we demonstrate why we have earned the reputation as one of the world’s premier investment managers.
*Consistent with industry standards and as a matter of policy PIMCO does not disclose daily flow data.
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PIMCO Statement Regarding September Total Return Net Flows
Date 01/10/2014