Old Mutual Global Investors, the asset management arm of the UK's Old Mutual Wealth, has taken Pimco off its Total Return USD Bond Fund and appointed Janus Capital.

Old Mutual Global Investors has re-hired Bill Gross to take over its $272 million Old Mutual Total Return USD Bond Fund, as it switches advisor from Pimco to Janus Capital.

Janus will replace Pimco as investment advisor of the fund from July. Gross, who ran the fund for over 12 years since its launch in 2002, left Pimco in September last year to join Janus, after which Pimco's flagship Total Return Fund suffered record outflows.

OMGI said the change of fund manager was “in the best interest of clients who originally chose to be invested with Bill”.

Over one year, the fund has returned 5.48 per cent, compared to a benchmark of 5.72 per cent. Since inception, it has returned 5.17 per cent, outperforming a benchmark of 5.07 per cent.

“Bill has a vast amount of experience and an outstanding track record and we look forward to working with him and the team at Janus,” said OMGI's global head of distribution, Warren Tonkinson.

“I would also like to take the opportunity to thank Pimco for its support in managing the fund until now.”