PIMCO's El-Erian to quit US bond giant

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Mohamed El-Erian, co-chief investment officer and leading market commentary, is set to leave PIMCO after 15 years with the Californian bond giant.

El-Erian will relinquish his fund manager responsibilities and step back from his position as co-chief investment officer before fully departing in March.

In a new capacity, El-Erian will take on an advisor role with the Allianz Group, PIMCO's parent company, where he will advise the board of management on global economic and policy issues.

PIMCO said Bill Gross, El-Erian’s co-CIO, will remain in his role.

However, it has appointed new portfolio management also promoted several members of its investment line-up to serve as an investment team.

This will see bond manager Andrew Balls and income specialist Dan Ivascyn named as deputy co-chief investment officers.

Meanwhile, Douglas Hodge, the firm’s current chief operating officer, will become chief executive officer.

Also, Jay Jacobs will move from heading up PIMCO’s German business to serve as president and Craig Dawson is named head of strategic business management, having previously been head of PIMCO Germany, Austria, Switzerland and Italy.

Commenting on the changes, Bill Gross said: ‘Mohamed has been a great leader, business builder and thought leader for PIMCO and our clients.’

‘Together we have guided the firm and served out clients during a period of significant change in the global economy and financial markets. We are pleased he will remain as part of the Allianz Group.’