Mohamed El Erian is unexpectedly resigning from the giant asset manager Pimco, dashing expectations that he would take over management of the firm.
Pimco, the Newport Beach, Calif.-based firm that is famous for its bond funds, announced on Tuesday that it had “reorganized its leadership structure,†leading to Mr. El Erian’s resignation.
Since joining Pimco in 2007, Mr. El Erian has become the public face of Pimco, taking over from the firm’s famous chief investment officer, William H. Gross. In 2012, Mr. Gross said, ““Mohamed is my heir apparent.â€
Since then, though, Pimco has hit rough waters as its famous bond funds have struggled in the face of rising interest rates, and falling bond prices. Last year, the firm’s signature Total Return Fund, which was the largest mutual fund in the world, saw customers pull over $40 billion.
Pimco did not provide any detailed explanation for Mr. El Erian’s departure. A statement from the company said that Mr. El Erian would leave Pimco in March, but keep some leadership roles with Pimco’s parent company, Allianz.
