Pimco’s AUM increase for the first time since 2014


Pimco has increased its assets under management by 5 per cent in the first quarter of the year and for the first time since 2014 following recent turmoil at the firm.

Assets at the California-based firm grew to $1.5trn (£1trn) in the first quarter of this year up from from $1.43trn at the end of 2015, marking the first increase in nearly two years, Reuters reports.

“Pimco saw inflows into more than 40 funds during March, across strategies as varied as income, investment grade credit, high yield, mortgages and munis,” spokesman Michael Reid said in a statement.

The Pimco Income fund, which is run by group chief investment officer Dan Ivascyn, saw $1.5bn inflows in March, bringing total inflows to $18.2bn since the beginning of 2015.

The news comes as Pimco’s Total Return and Unconstrained Bonds funds saw outflows of around 50 per cent of total assets in the year since self-titled ‘Bond King’ Bill Gross left the firm in September 2014, leading to assets at the firm being down around 20 per cent.

The impact of the outflows was already seen last year. Accounts for 2014, the most recent available, already saw a 30 per cent cut in remuneration for UK directors of Pimco.

In 2014 directors in Pimco Europe were paid £34.6m compared to £48.7m for 2013. The highest-paid director, who is unnamed, also took a pay cut, getting £22m in 2013 and £15.7m in 2014.

However, during 2014 the number of employees in the Pimco Europe business actually rose from 285 in 2013 to 302 in 2014. The renumeration cuts mean the period also saw a rise in profit before tax from £82.6m in 2013 to £87.7m in 2014.