The PIMCO Total Return ETF (NYSEArca: BOND), the actively managed ETF formerly managed by Bill Gross, has lost almost $545 million in the two trading days since Gross resigned from PIMCO, the firm the bond manager founded.
BOND, the second-largest U.S. actively managed ETF behind its family member, the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT), lost $446.5 million on Friday Sept. 26, a one-day record,Lisa Abramowicz and Jody Shenn for Bloomberg. Friday was the day Gross announced he was leaving PIMCO to join Janus Capital (NYSE: JNS) where he will run the Janus Global Unconstrained Bond Fund and related strategies.
BOND’s outflows slowed to $98 million on Monday, Bloomberg reported. The ETF had $3.11 billion in assets under management as of the close of markets Sept. 29, according to PIMCO. BOND is now being managed by Scott Mather, Mark Kiesel and Mihir Worah.
Estimates on potential redemptions at various PIMCO funds range from the tens of billions of dollars to hundreds of billions. Jeffrey Gundlach “said his DoubleLine Capital LP received hundreds of millions of dollars on Sept. 26 after Gross quit. He said it was the most money gathered in a day this year and the second-highest client deposits since the Los Angeles-based firm started in 2009,” report Sree Vidya Bhaktavatsalam and Mary Childs for Bloomberg.
Some Wall Street analysts have already pointed to BlackRock (NYSE: BLK), Franklin Resources (NYSE: BEN), T. Rowe Price (NasdaqGS: TROW) and Invesco (NYSE: IVZ) as potential beneficiaries of post-Gross outflows from PIMCO. BlackRock is the parent company of iShares, the world’s largest ETF sponsor, while Invesco is the parent of PowerShares, the fourth-largest U.S. ETF issuer. [These ETFs Could Benefit From Gross Joining Janus]
Since Sept. 25, the day before Gross announced his resignation, the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG), a passively managed rival to BOND, has seen inflows of $447.2 million. However, the Vanguard Total Bond Market ETF (NYSEArca: BND), another passively managed BOND rival, has lost $90 million.
BOND currently allocates 36% of its weight to corporate bonds with another 27% going to mortgage-backed securities and 17% devoted to U.S. government debt, according to PIMCO data.
PIMCO Total Return ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of AGG.