In one of the most unsettling announcement for Pacific Investment Management Company, LLC (PIMCO), Bill Gross, “Bond King,” is going to leave the company after four decades of successful growth. Gross is to join the much smaller rival Janus Capital Group Inc (NYSE:JNS) starting September 29.

Bill Gross was the head of Total Return Fund with current portfolio of $222 billion and he also co-founded Pimco in 1971. He helped Pimco to grow into one of the biggest bond-managing firms with its current portfolio exceeding $2 trillion. Pimco was quick enough to announce a successor, Daniel Ivascyn, to handle the post of group chief investment officer. However, the announcement couldn’t save Pimco’s parent company, Allianz SE (ADR) (OTCMKTS:AZSEY), from falling 6.14% after the announcement.

Gross is likely to join Janus Capital Group Inc (NYSE:JNS) on Monday and he will head the Unconstrained Bond Fund at Janus Capital Group Inc (NYSE:JNS) and contribute towards the development of bond investment strategies for the investment firm.

This is another bad news for the Total Return Fund considering that the fund has lost investments throughout the year and the overall investment withdrawal is nearly $70 billion triggered by the sudden departure of Mohammad El-Eiran, co-founder of the Fund, earlier in 2014.

Douglas Hodge, CEO of Pimco, earlier mentioned the growing differences between Gross and fund managers at Pimco saying, “It became increasingly clear that the firm’s leadership and Bill have fundamental differences about how to take Pimco forward.” He further added that the company has several talented managers and the leadership transition should be very smooth.

On account of his departure from Pimco, Gross said that he was not expecting to encounter “many of the complexities that go with managing a large, complicated organization.”

This article has been written by Prakash Pandey and edited by Serkan Unal.