Famed bond guru Bill Gross, head of the $400 billion PIMCO bond operation, finally got his wish.
The PIMCO brand name of mutual funds will cut ties with its tainted affiliates, as parent company Allianz Dresdner Asset Management on Monday agreed to hand over the rights to the PIMCO label to its bond fund business.
At a press meeting in London, the German insurance giant announced that it has changed its name to Allianz Global Investors. The name change will be followed in the first quarter of 2005 by the removal of the PIMCO brand name from two dozen Allianz-owned funds that arent under Gross supervision.
The move was prompted by the trading scandal that sullied the reputations of its Eastern U.S.-based equity funds marketed under the PIMCO brand. Gross, who co-founded PIMCO 30 years ago, in February demanded a divorce from other funds that had been using the PIMCO name since Allianz bought PIMCO in 2000.
Joachim Faber, CEO of Munich-based Allianz, told the Los Angeles Times that using the PIMCO name as a marketing tool had been "a mistake" and that he should have pulled the name off those funds sooner.
Gross said Friday he was happy with the decision. "Brand confusion doesnt help investors, employees or anyone else," he told the Times. "Were glad to have the PIMCO name associated only with the products we lead."