BlackRock Inc. (BLK ) is among the latest asset managers to lower fees on its bond funds. The move is in the wake of the high profile departure of legendary fixed-income manager Bill Gross who left Pacific Investment Management Co. (PIMCO ) on Sept. 26, 2014 to join Janus Capital Group, Inc. (JNS ). Competitors have been dropping fees on their fixed income funds in a move to capture assets from PIMCO’s flagship PIMCO Total Return Fund (PTTAX ), which Gross managed.

The Bond King

Gross, often referred to as the king of bonds, co-founded fixed-income giant PIMCO in 1971. A self-made billionaire, he is one the most powerful people in the United States, according to Forbes.

Since the departure of Gross, PIMCO has experienced billions in outflows from its funds. In October alone it had outflows of $48.3 billion from its opened ended mutual funds. The majority of redemptions were from the PIMCO Total Return Fund. (For more, see: What to Expect From Pimco After Bill Gross .)

PIMCO replaced Gross, who managed the fund for 27 years, with three portfolio managers. At the end of October the PIMCO Total Return Fund, which is the world’s largest bond fund, had more than $170 billion in assets under management.

At Janus, Gross manages the Janus Global Unconstrained Bond Fund (JUCIX ), which has $442 million in assets under management. It had just shy of $13 million in assets under management before Gross took it over. (For more, see: The Greatest Investors: Bill Gross .)

BlackRock Bond Funds

BlackRock, the world’s largest money manager, cut fees on some shares of three of its bond mutual funds. It lowered fees on its Total Return Fund (MAHQX ), which has $4 billion in assets under management. The fund’s fees for institutional shares were lowered to 45 basis points from 52 basis points. Fees for institutional shares of PIMCO’s, Total Return Fund, meanwhile, are 46 basis points.

Fees for A-shares of BlackRock’s Total Return Fund have also been lowered. They are now 79 basis points down from 83 basis points.

Institutional share fees for the BlackRock Core Bond Fund (BFMCX ), which has $3 billion in assets under management, dropped the most to 45 basis points from 56 basis points.

The third fund to have fees shaved is the BlackRock Low Duration Bond Fund (BFMSX ), which has $4.8 billion in assets under management. Fees on its B-shares have been lowered to 154 basis points from 162 basis points. (For related reading, see: Stop Paying High Mutual Fund Fees .)

Growing Group of Rivals Cut Fees

Other asset managers that have also cut fees on bond mutual funds following the departure of Gross from PIMCO include OppenheimerFunds, Inc. and Lord Abbett & Co. (For more, see: Alternatives to Pimco’s Total Return Fund .)

In October OppenheimerFunds lowered fees on A-shares of its Core Bond Fund (OPIGX ) to 85 basis points, down from 91 basis points.

Lord Abbett last month dropped fees on institutional shares of its Lord Abbett Total Return Fund (LTRAX ) to 48 basis points, from 65 basis points. A-shares of the fund were also slashed to 68 basis points, down from 85 basis points. (For related reading, see: Fund Firm Jolts: Pimco’s Isn’t the First or Worst .)

The Bottom Line

BlackRock, the world’s largest money manager, is among the latest asset managers to lower fees on its bond mutual funds following the departure of legendary fixed income manager Bill Gross. Rivals of PIMCO are lowering fees on fixed income funds to attract inflows from its Total Return Fund, the world’s biggest bond fund, which Gross managed. The window to take advantage of these lower fees could be narrow, though, so act fast. (For related reading, see: What Bill Gross, Steve Jobs and Steve Wynn Have in Common .)