"The New York City Pension Funds recently transitioned out of $4.9 billion in Pimco accounts due to concerns over recent organizational changes," Eric Sumberg, a spokesman for New York City Comptroller Scott Stringer, said in a statement.

Gross shocked bond markets in September by leaving Pimco, which he co-founded, for smaller rival Janus Capital, where he now manages the Janus Global Unconstrained Bond Fund .

The assets pulled from Pimco by the city pension funds were distributed to the city's existing asset managers, Sumberg said.

Existing managers include BlackRock (>> BlackRock, Inc.), Goldman Sachs (>> Goldman Sachs Group Inc) and State Street (>> State Street Corp), among others.

According to Morningstar, the Pimco Total Return Fund, formerly managed by Gross, had record outflows of $103 billion in 2014. Investors pulled $150 billion from Pimco's U.S. open-end mutual funds for 2014, Morningstar data also showed.

The New York pension funds still hold $2.4 billion in Treasury inflation-protected securities (TIPS) accounts with Pimco.

"At this time the Systems are in the midst of a search for TIPS mangers," Sumberg said in the statement.

The city pension funds had assets of $158.7 billion as of Sept. 30, 2014.

The news was originally reported by The Wall Street Journal.

(Reporting by Luciana Lopez; Editing by Leslie Adler)