Bill Gross and Julie Dean’s former funds hit by hefty outflows

Funds formerly managed by star managers Julie Dean and Bill Gross have been hit by outflows after those managers moved on.

According to the Financial Times, the Schroder UK Opportunities fund has fallen in size by two-thirds over six months, from £2.5 billion to around £871 million. Dean (pictured) left Schroders in September, and is to join Sanditon Asset Management.

Over the past year Schroder UK Opportunities’ performance has been poor, and it is currently ranked 256th out of 260 funds tracked by Citywire in the UK All Companies sector for that period, with a total return of minus 8.6%.

After Dean’s departure, Matt Hudson became manager of Schroder UK Opportunities.

Hudson said that the most difficult period for the fund had passed, according to the newspaper. ‘The rate of outflows has slowed in the last month or so,’ he said.

Outflows from the giant Pimco Total Return bond fund, formerly managed by Bill Gross have been running at around $20 billion (£13 billion) per month. The fund fell to around $143 billion (£93 billion) in assets, less than half of its peak of $293 billion (£191 billion) in June 2013. Gross left Pimco for Janus Capital Management last September.

Pimco Total Return’s performance has been good over the last year, returning 3.6% and ranking 133rd out of 977 tracked in the Citywire Bonds – Global sector.

Dean plans to launch the TM Sanditon UK fund in April.

Article appeared in the New Model adviser on 5th January 2015