Pimco ETF Sees $22 Million Redemption as Pace EasesMary Childs
Pacific Investment Management Co.’s Total Return ETF, managed by Bill Gross until his departure from the firm, lost $22 million to withdrawals yesterday as the pace of redemptions slows.
Yesterday’s withdrawal from the exchange-traded fund brings redemptions since Gross’s exit to $653.5 million. Pimco Enhanced Short Maturity Exchange-Traded Fund attracted $50 million yesterday, the Newport Beach, California-based firm said in an e-mailed statement.
Redemptions are slowing at the Pimco Total Return ETF, which follows a similar investment strategy as the firm’s flagship mutual fund, the week after Gross, 70, abruptly resigned to join money manager Janus Capital Group Inc., based in Denver. Pimco’s mutual fund suffered an estimated $23.5 billion of withdrawals last month, the worst month ever. That reduced assets by 10.6 percent since the end of August, when the fund had $221.6 billion in client money.
The day of Gross’s announcement of his departure on Sept. 26 was the largest one-day redemption at both the mutual fund and the ETF. Investors pulled $446.5 million from the ETF on that day, before redemptions eased to about $98 million the next business day, according to data available on Pimco’s website that shows adjusted shares outstanding.