Bill Gross: Why I Left PIMCO | Chief Investment Officer

billgrosspimco Bill Gross, Janus Capital“Had there been a reasonable way to continue there, I would have stayed to my last breath,” wrote Bill Gross in the preamble to his first investment outlook for Janus Capital yesterday, referring to his exit from PIMCO last month.

“I was honored by the trust of the millions of clients and thousands of employees over decades,” Gross continued. “They have been the center of my life’s work. I am very proud of my record there for more than 40 years.”

Gross announced he was leaving PIMCO, the company he founded in 1971, on September 26 to join relative minnow Janus Capital. Despite protestations—PIMCO said it had already actioned succession plans for the self-styled “Bond King”—the move shocked markets and investors pulled billions from his flagship fund, Total Return.

“Had there been a reasonable way to continue there, I would have stayed to my last breath.” —Bill Gross, Janus Capital.In yesterday’s statement, Gross said PIMCO was a great firm, and Allianz—the German insurance giant that bought it—was a fine owner for many years.

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“But slowly and with great hesitation, I came to understand that it was time for me to leave,” he continued. “It happens sometimes to founders! But that is water under the bridge, as they say. I don’t plan to address it further.”

He then explained his choice of Janus Capital as his next stop and why, at 70 years old, he had not chosen retirement.

Firstly, Janus CEO Dick Weil and Gross have a previous working relationship—Weil was PIMCO’s COO for 10 years—but the former PIMCO CIO said he wanted “to return to a simpler role, completely focused on markets, investment performance, and serving my clients. It seems like a good time to turn away from the complexity of helping to run a huge firm.”“No doubt hundreds of billions limits flexibility.”—Bill Gross, Janus Capital.

In a webcast to run alongside the outlook—Gross’ first appearance since he quit PIMCO—he spoke about the change he anticipated as he transitions from running the world’s largest mutual fund to a start-up vehicle.

“I speak from inexperience,” he chuckled when asked about it. “No doubt hundreds of billions limits flexibility.”

He said that Janus had sufficient size—$177.7 billion—and people who knew both how to trade efficiently and the right price of assets in the market.

“It’s a good size,” he said. “Ask me in a few more months.”

Gross concluded his investment outlook by warning investors that “returns almost necessarily cannot equal the magnificent prior decades that some of you might have experienced during my days at PIMCO”.

“James Bond famously said that ‘you only live twice.’ I hope to emulate Mr Bond as Janus Denver and Janus Newport Beach link hands and ideas to improve your financial balance sheet, and ultimately provide a better life for you and your family. Perhaps you only dance twice too. Sue”—Gross’ wife—”and I would like that.”

Related Content: Bill Gross: Not the King of Bond Markets, After All? & Too Big to (Not) Fail?

The investment manager for the second largest Dutch pension fund is to cut 200 jobs in an effort to cut costs, it has announced.

PGGM, which manages €178 billion on behalf of major pension PFZW and others, said it would reduce its workforce by 15% to try and cuts costs by €50 million a year.

“The Dutch pension market is becoming more dynamic and PGGM needs to have the flexibility to adapt,” said Else Bos, CEO of PGGM.

Bos said that the price of PGGM’s products had to be reduced because costs played an increasingly important role in pension funds’ considerations.

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She added that new services would also be brought online during what PGGM have termed “remodelling”. As the Dutch pension market has, in some instances, struggled to recover from the financial crisis, consolidation between funds has accelerated. PGGM—along with other providers—has been gearing up to attract smaller pensions to use its range of advisory, investment, and implementation services.

In June, Chief Investment Officer revealed that PGGM had created a fiduciary management arm enhance its services to its current clients and its offering to smaller peers.

A spokesman said all areas of the company could be hit by the job cuts, adding there may be compulsory redundancies. However, sources inside PGGM told CIO that staff had been well-briefed about the changes in the run-up to the announcement.

PGGM currently employs 1,500 who work in a range of investment-related sectors. The company was spun out of PFZW—the pension fund for healthcare workers—in 2009, according to a governmental decree.

The company, which scooped CIO’s prize for pension fund governance at the European Innovation Awards in May, said it would be consulting with Dutch trade unions at the end of the month.