We saw some of the biggest mutual fund news in years on Friday. PIMCO’s founder Bill Gross announced that he would be leaving the firm for Janus Capital (JNS). The news initially shocked Wall Street, but now investors and analysts are concerned that this move may have a major effect on PIMCO.

PIMCO to See Significant Outflows

Following Gross’s departure announcement on Friday, PIMCO was flooded with calls from financial advisors demanding answers regarding the abrupt resignation.

On Friday, there was $500 million withdrawn from the firm’s Total Return Fund and billions of outflows from other funds. The firm is now preparing to see total outflows of as much as $60 billion.

Some advisors are now expecting investors to switch from PIMCO to the Janus Global Unconstrained Bond Fund (JUCAX) that Gross will be managing as of October 6, 2014.

Below is a quick look at the two aforementioned funds:

The Bottom Line

With billions of dollars in outflows, there is potential for big moves in these funds. As one of the biggest mutual fund stories in a long time, mutual fund investors that are affected by this news should not take it lightly.