Switzerland’s largest pension fund, Publica, has said Bill Gross’s recent departure from PIMCO has not undermined its faith in the asset manager.
The CHF36bn (€28.3bn) fund said its 2011 award of a US corporate bond mandate did not rely on any single person “but rather on processes, systems, compliance and risk culture”.
Publica added that it thought PIMCO was “a top address for bonds” and would “most likely” remain one.
Industry figures in the Netherlands echoed Publica’s thoughts, with €377bn asset manager APG arguing that the effects of Gross’s departure were “being exaggerated”.
Ben Kramer, chief executive at F&C Netherlands, dismissed the notion that the possible exit of clients from PIMCO would lead to major allocation shifts in the market and said he considered Gross’s decision a “matter between worker and employer”.
“We will continue our own strategy, taking the changing landscape into account,” he added.
Gross managed well over $200bn (€157.6bn) in PIMCO’s Total Return Bond fund, but on Friday announced he would be moving to Janus Capital Management.
The company quickly appointed Daniel Ivascyn to replace Gross.
However, Murat Ünal, chief executive at German consultancy Funds@Work, said the size of the firm’s flagship vehicle had made boosting returns difficult.
He said it was “hard to outperform the market if a company has become the market itself” and noted that PIMCO recently “moved away from its core by going into other asset classes, increasing complexity”.
Ünal also pointed out that the increase in size and assets since Allianz became PIMCO’s major shareholder had seen the company’s image change by “going from a boutique-like company to a substantial player”.
He believes that, from Gross’s perspective, there is most likely “no better point in time” for him to leave PIMCO than now, when markets have enough liquidity to “play along”, apart from any possible contractual reasons (such as lockup periods) that might have prevented him from leaving earlier.
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