(Bloomberg) -- Mohamed El-Erian, who quit Pacific Investment Management in January amid reports of clashes with Bill Gross, said he was surprised by the events surrounding the departure of the star bond manager last week.
His departure -- the fact that it happened and how it happened -- was a surprise, El-Erian, 56, said today in an interview with Betty Liu on Bloomberg Television. What was not a surprise was the bench and a strong team led by Dan Ivascyn. They are superb, said the former chief executive officer and co-chief investment officer of Newport Beach, California-based Pimco.
Pimco last week named 45-year-old Ivascyn, a top-ranked money manager, as CIO as it seeks to revive performance and restore calm at a firm that has been rattled by management disputes. Gross left Pimco, which has almost $2 trillion in assets, for Janus Capital Group Inc. to run a new unconstrained bond fund with about $13 million in assets.
El-Erian on Sept. 27 praised Ivascyn as a brilliant investor and an inspiring leader. Ivascyns Pimco Income Fund has beaten 99% of competitors over the past three and five years.
El-Erian, who writes a column for Bloomberg View and is chief economic adviser at Pimco parent Allianz SE, said he was happy with his current role in response to whether he would return to Pimco as CEO.
I have this portfolio of activity and I get to spend a lot more time with my daughter, said El-Erian.
Gross left after his deputies threatened to quit and management debated his ouster, according to people familiar with the matter. The departure of Gross, who co-founded Pimco in 1971, has prompted investors to review their investments with the firm and move money to competitors.
Pimco named Mark Kiesel, Scott Mather and Mihir Worah to take over management of the Pimco Total Return Fund, the worlds largest bond mutual fund. Investors removed $23.5 billion from the fund in September, with the largest withdrawals coming on the day of Grosss departure, according to Pimco.
El-Erian joined Pimco in 1999 as a senior member of the portfolio management and investment strategy group after working for the International Monetary Fund for 15 years. He left in 2006 to serve as CEO of Harvard Management and revamp the universitys endowment before rejoining Pimco about two years later.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access