Pimco to gain more 'autonomy' in AGI restructuring

Allianz Global Investors on Tuesday announced restructuring effective Jan. 1 that will give PIMCO greater distribution independence and will more closely align the elements of Allianz’s other business. As of Jan. 1, Allianz Global Investors, Allianz’s money management division, will be renamed Allianz Asset Management; it will comprise PIMCO and Allianz Global Investors. Allianz Global Investors will be led by CEO Elizabeth Corley, now CEO of AGI Europe, and Chief Investment Officer Andreas Utermann, global CIO of Allianz Global equity management unit RCM. As part of the changes announced Tuesday, Marna Whittington, CEO of AGI’s U.S. division, will retire as of Dec. 31. She will be replaced by Brian Gaffney, who’s currently head of AGI’s U.S. distribution. A replacement for Mr. Gaffney could not be learned by press time. The RCM brand will continue to be used in markets “where there’s a clear value and recognition of the brand,” but the businesses will be aligned under Allianz as part of the restructuring, said John Wallace, AGI spokesman. The move reflects the size, global reach and different styles of the firm’s two distinct business lines, Mr. Wallace said, with PIMCO being primarily a top-down bond manager, while AGI is primarily a bottom-up equity manager. PIMCO has run its own distribution in the U.S. since last year. “Entrusting us with this additional operational autonomy reflects the strength of the relationship with Allianz and the mutual respect that exists,” Mohamed A. El-Erian, CEO and co-chief investment officer of PIMCO, said in a news release. “We expect this new structure to facilitate our continued evolution to become the provider of choice to clients around the world for their complete global investment solutions in a rapidly changing global landscape.” Drew Carter is a reporter for Pensions & Investments, an InvestmentNews sister publication.