PIMCO, the $2 trillion dollar fund management behemoth, last night announced the surprise resignation of high profile chief executive Mohamed El-Erian, one of the world’s most famous financiers.
El-Erian, who also acts as co-chief investment officer (CIO) alongside fund veteran Bill Gross, will leave the group in mid-March after 15 years at the business. Gross, who founded the firm, will remain in his current position.
As part of the reshuffle, Andrew Balls – brother of Labour’s shadow chancellor Ed Balls – has been promoted to co-deputy CIO along with Dan Ivascyn.
Both men will work a rung below Gross in running the company’s funds, which includes its flagship $248bn total return fund, until last year the world’s biggest mutual fund.
Egyptian-raised El-Erian previously ran Harvard University’s endowment fund during a break from Pimco between 2005 and 2007 and also had a long stint at the International Monetary Fund.
Pimco’s German owner, Allianz, said El-Erian will remain on its international executive committee and help with policy work.
Last year was a rough one for Pimco, with investors pulling billions of dollars from its funds after it had its worst performance run since 1994.