Mohamed El-Erian is to leave Pimco, the world’s biggest bond fund manager and the company he has led alongside Bill Gross since 2007.
Mr El-Erian, currently chief executive and co-chief investment officer with Mr Gross, will leave his post in March to take on an advisory role with Pimco’s parent company Allianz.
Mr Gross will continue as chief investment officer, and the company has appointed Douglas Hodge as chief executive. He is currently chief operating officer and first joined the company in 1989. Pimco has also appointed two deputy CIOs, Andrew Balls and Daniel Ivascyn.
Mr El-Erian said: “I have been extremely honoured 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.”
Mr Gross added that the new management team “embodies Pimco’s culture and values, and it reflects the strength and depth of our talent in both portfolio management and business management”.
Mr El-Erian originally joined Pimco in 1999 as a senior member of the company’s portfolio management and investment strategy group. He left in 2005 to become president and chief executive of Harvard Management Company, which runs endowment investments on behalf of Harvard University. He has also worked at the International Monetary Fund for 15 years in the 1980s and 1990s.
As well as his senior roles at Pimco, Mr El-Erian is also a named manager on several funds available in the UK including the Pimco GIS Global Multi Asset and Pimco GIS Global Advantage funds, and a multi-asset portfolio run for St James Place.