Gross’s flagship fund had its seventh straight month of withdrawals in November as clients pulled an estimated $3.7 billion, according to Chicago-based research firm Morningstar Inc. in an emailed statement on Dec. 3. Net redemptions year through Nov. 30 are estimated at $36.9 billion, Morningstar said, on track to be the most ever for a calendar year.
Growth Forecast
The world economy will enjoy faster growth next year, as improvement in the U.S. and the euro area offsets slowdowns in China and Japan, Mohamed El-Erian, Pimco’s chief executive officer said in an interview Dec. 9.
El-Erian, who serves as co-chief investment officer with Gross, forecast that the world economy is likely to expand 2.5 percent to 3 percent in 2014, up from 2.3 percent this year. U.S. growth will accelerate from 1.8 percent, expanding by 2.25 percent to 2.75 percent.
The “Fed tapers in January, not next week,” Gross wrote in a Twitter post Dec. 8, after putting the odds of a reduction in asset purchases this month at 50 percent on Dec. 6. On that day, the Labor Department said employers added 203,000 workers in November and the jobless rate dropped to a five-year low of 7 percent The Fed meets on Dec. 17 to 18.