PIMCO hit by second month of consecutive outflows

The company said clients pulled out $27.5 billion from the Pimco Total Return Fund in October

Bill Gross, known as the 'king of bonds' (Getty)

Bond giant Pimco has been hit by a second consecutive month of record outflows in its flagship fund following the departure of star fund manager Bill Gross.

The company said clients pulled out $27.5 billion (£17.3 billion) from the Pimco Total Return Fund in October, lowering the amount of assets under its control to $170.9 billion compared to a peak of $293 billion last April.

The outflows surpass the $23.5 billion pulled out in September when “Bond King” Gross quit Pimco for Janus Capital, a day before he was expected to be fired from the firm he helped found more than 40 years ago.

Pimco said most of the latest outflows had come during the first five trading days of October.

“The perception has been that there has been a dramatic shift at Pimco,” chief executive Doug Hodge said in a letter to clients. “However, the reality is that while Pimco has evolved into a globally diversified investment company, our DNA is fundamentally unchanged.”