Pimco and its parent firm Allianz moved to stem concern over Bill Gross' surprise exit Friday, assuring investors that the relationship remains solid and they expect client loss to be minimal.
Officials from the two firms Monday looked to downplay the loss of Gross, who founded the firm 43 years ago.
Pimco CEO Doug Hodge emphasized that the differences between the two sides were tied to management and media strategy and not to investing. The firm had acknowledged Friday that "fundamental differences" led to the breakup.
"Those differences did not pertain to clients' portfolio investment strategy," Hodge said in a conference call. "Those (nonstrategy issues) were the ones that were broadly at issue with Bill, and, as a result, his decision to resign."
The biggest issue at Pimco from a strategy standpoint has been a mass exodus of client money over the past 15 months or so, particularly from the firm's flagship Total Return Fund, which has lost more than $40 billion in all. The $221 billion fund remains the largest bond fund in the world and is still the core of the firm's $1.97 trillion in assets under management.