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Pimco says can handle rise in outflows after Gross exit

Published 29/09/2014, 15:07
© Reuters Bill Gross, co-founder and co-chief investment officer of Pacific Investment Management Company (PIMCO), speaks at the Morningstar Investment Conference in Chicago
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FRANKFURT (Reuters) - Pimco is bracing for investors to pull out money following the sudden departure of its co-founder Bill Gross but expects the vast majority of clients to stick with the firm and is confident it can handle any outflows, the California-based investment group's chief executive said.

"Should our revenues fall, and frankly we anticipate heightened redemptions here in the early stages - that's to be expected with any transition of a senior person - we're ready for that," Pimco CEO Doug Hodge told analysts on a conference call on Monday, adding that the firm had "ample liquidity".

© Reuters. Bill Gross, co-founder and co-chief investment officer of Pacific Investment Management Company (PIMCO), speaks at the Morningstar Investment Conference in Chicago

Hodge said there had been differences with Gross over the strategic direction of the firm but not over investment strategy.

(Reporting by Tom Atkins and Arno Schuetze; Editing by Noah Barkin)

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