Pimco Cut Government-Related Holdings Since Gross' Departure

The world's largest bond fund, Pimco Total Return, ended September with a cut in its holdings of U.S.-issued securities. That means within the four days after founder Bill Gross left, it had already started to unwind bets. According to its own disclosure, Pimco Total Return had 38% exposure in U.S. government-related securities in September. That's down from 41% a month earlier. U.S. government securities may include anything from Treasuries to government guaranteed corporate bonds to interest rate swaps. Bill Gross is one of the world's most respected fund managers and since his departure on Sept 26, Pimco has seen record outflows. $23.5 billion left the flagship Total Return Fund in September alone. Pimco noted that the day Bill Gross left it saw its heaviest outflows.