Mohamed El-Erian Leaving PIMCO

Mohamed El-Erian Leaving PIMCO

Moments after the novelty news that Neil “Chump” Kashkhari will run for California governor (as a Democrat), the real PIMCO news hit: Mohamed ‘New Normal’ El-Erian is no longer a the ecompany.

From the press release:

Pacific Investment Management Company LLC (PIMCO), US-based Asset Management subsidiary of Allianz, has reorganized its leadership structure. Mohamed El-Erian, Chief Executive Officer and Co-Chief Investment Officer of PIMCO, today has resigned from his functions effective mid-March and will leave PIMCO at the same time. He will stay on the International Executive Committee of Allianz and will advise the Board of Management of Allianz SE on global economic and policy issues.

Mohamed El-Erian will directly report to Michael Diekmann, CEO of Allianz SE.

William H. Gross, founder of PIMCO, will remain Chief Investment Officer.

Portfolio management will be strengthened by the appointment of the Managing Directors Andrew Balls and Daniel Ivascyn as Deputy Chief Investment Officers.

In today’s meeting, effective as of the above-mentioned date, PIMCO’s Managing Directors also elected Douglas Hodge, Managing Director and currently Chief Operating Officer of PIMCO, as Chief Executive Officer and Jay Jacobs, Managing Director and currently Global Head of Talent Management, as President. Craig Dawson, Managing Director and currently Head of PIMCO Germany, Austria, Switzerland and Italy, will assume the position as Head of Strategic Business Management.

Is this an indication that the bond pessimism has topped out, or does it simply mean that it is now time to move on from the New Normal to the New New Normal

And a little uncomfortable message from Bill Gross to go along with this news…

Finally, here is the press release just released by PIMCO:

PIMCO, a leading global investment management firm, announced today that Chief Executive Officer and Co-Chief Investment Officer Mohamed A. El-Erian has decided to step down from his role and leave the firm in mid-March. He will remain a member of the Allianz International Executive Committee and, as of mid-March, also advise the Board of Management of Allianz on global economic and policy issues.  PIMCO’s founder William H. Gross will continue to serve as the firm’s Chief Investment Officer. At the same time, the firm has appointed a new portfolio management and executive leadership team. They will immediately begin to transition into their new roles.

Portfolio Management leadership appointments:

  • Andrew Balls, Deputy Chief Investment Officer: Mr. Balls is a Managing Director in the London office, a member of the Investment Committee and Head of European Portfolio Management. He joined PIMCO in 2006.
  • Daniel Ivascyn, Deputy Chief Investment Officer: Mr. Ivascyn is a Managing Director in the Newport Beach office, Head of Mortgage Credit Portfolio Management, and a lead portfolio manager for PIMCO’s alternatives investment strategies. Morningstar named him 2013 Fixed-Income Fund Manager of the Year (US). He joined PIMCO in 1998.

Business Management leadership appointments:

  • Douglas Hodge, Chief Executive Officer: Mr. Hodge is a Managing Director in the Newport Beach office and is currently PIMCO’s Chief Operating Officer. Previously he led the firm’s Asia Pacific region from the Tokyo office. He joined PIMCO in 1989
  • Jay Jacobs, President: Mr. Jacobs is a Managing Director in the Newport Beach office and is currently the Head of Talent Management globally. Previously, he was the Head of PIMCO’s German business, based in Munich. He joined PIMCO in 1998.
  • Craig Dawson, Head of Strategic Business Management: Mr. Dawson is a Managing Director and is currently Head of PIMCO Germany, Austria, Switzerland and Italy, based in the Munich office. He is also Head of Product Management for Europe. In his new role, he will relocate to the Newport Beach office. He joined PIMCO in 1999.

Said Mr. Gross: “Mohamed has been a great leader, business builder and thought leader for PIMCO and our clients. Together we have guided the firm and served our clients during a period of significant change in the global economy and financial markets. We are pleased that he will remain a part of the Allianz Group.”

Mr. Gross added: “PIMCO‘s focus remains on delivering value to our clients through superior investment performance and client service. The firm’s new leadership team embodies PIMCO’s culture and values, and it reflects the strength and depth of our talent in both portfolio management and business management. With this team to lead us forward, PIMCO is in great hands.”

Said Dr. El-Erian: “I have been extremely honored and fortunate to work alongside Bill Gross, who is one of the very best investors in the world. His talents are truly exceptional, as is his dedication. I have also been amazingly privileged to work with the most talented group of professionals in the investment management industry. Their commitment and tireless work on behalf of our clients have been a consistent inspiration for me since I first joined PIMCO back in 1999.  I wish them continued great success.”

Said Mr. Hodge: “PIMCO has become one of the leading investment management firms in the world through a relentless focus on performance, innovation, and delivering value to our clients, and that will not change. The firm has made important progress over the past several years to become ‘Your Global Investment Authority’ by expanding the scope of our investment platform and business, and we will continue to execute on this vision.”

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