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Pimco Total Return ETF posts $437 million outflow in October: Morningstar

An undated handout photo of Pimco's headquarters in Newport Beach, California. REUTERS/Pimco/Handout

NEW YORK (Reuters) - The Pimco Total Return Exchange-Traded Fund posted its second straight month of outflows in October, totaling $437 million compared with $631 million outflow in September, according to Morningstar data on Tuesday.

The Pimco Total Return ETF, an actively managed ETF designed to mimic the strategy of the flagship mutual fund, saw nearly $550 million in outflows in the two days following news of the departure on Sept. 26 of longtime manager Bill Gross.

Pacific Investment Management Co, which had assets under management of $1.876 trillion as of Sept. 30, said in late September that the U.S. Securities and Exchange Commission was investigating whether the Pimco Total Return ETF inflated the returns of the portfolio. That was the last in a series of incidents that preceded Gross' decision to leave the company for Denver-based Janus Capital Group.

(Reporting By Jennifer Ablan; Editing by Chizu Nomiyama and Alan Crosby)