UK pension funds with investments managed by Pimco are watching developments closely in the wake of last week's exit of the bonds giant's chief investment officer Bill Gross, which has sparked a scramble by Pimco executives to keep investors on board.

One of Pimco's larger pension-fund clients in the UK is the £13 billion Strathclyde Pension Fund, which manages the savings of local government workers in Glasgow. Richard McIndoe, head of the pension fund, said: "We are keeping a close eye on the situation, and talking to them, but we will not be making any sudden changes. There is more to Pimco than Bill Gross."