Allianz Global Investors (AGI), part of the giant Allianz insurance company and which owns fund managers RCM and Pimco, has adopted a new corporate and management structure.
Allianz Asset Management is the new name for the insurer’s asset management division and - effective from January 1, 2012 - it will consist of two business lines, Pimco and Allianz Global Investors. This will more clearly define the two discrete investment management businesses, the firm said today.
AGI will build upon its existing business, now driven under global leadership, with one AGI strategy. Pimco will continue its evolution as a provider of global investment solutions across asset classes, and now take over sole responsibility for the distribution of its products and funds around the world.
The significant scale of Allianz’s investment management business, which has €1.4 trillion of assets under management, has been driven by the consistent growth of Pimco since it became part of Allianz more than 11 years ago.
The changes follow the development that began in the US market last year whereby the distribution of Pimco and AGI products has been separated. This has enabled the two units to deliver better defined offerings directly to clients, the firm said.
Joachim Faber, head of the asset management business, said: “These latest refinements to the structure of Allianz’s asset management business reflect two things: first, the global scale and broadening scope of Pimco’s investment management platform, and our support for the continuation of that success story; and secondly, the complementary nature and approaches of our AllianzGI businesses and our confidence in their ability to leverage further their collective expertise for the benefit of clients globally.”
Jay Ralph, an Allianz SE management board member, will become chairman of Allianz Asset Management on January 1, 2012 when Joachim Faber retires.
He will create a global executive committee of Allianz’s asset management division comprising Elizabeth Corley, CEO-designate of AGI, Douglas Hodge, COO of Pimco; and Thomas Naumann, who will become CFO of Allianz Asset Management, joining from Allianz SE where he is currently head of group planning and controlling.
Marna Whittington, who until April of this year was COO of Allianz Global Investors AG and has remained CEO of Allianz Global Investors Capital LLC, has decided to retire at the end of the year.
Pimco will now become responsible for distribution of its products to client segments in Europe and Asia Pacific markets, as is already the case in the US and with institutional clients globally.
Mohamed A. El-Erian, CEO and Co-CIO of Pimco, said: “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.”
Many parts of the AGI business have already elected to work together to deliver investment solutions, the firm said, adding that the formation of a global management committee, led by Corley as CEO and Andreas Utermann, who is CIO of RCM, as CIO, is a natural next step.
The creation of a global management committee will promote a globally aligned product strategy and the development of global solutions covering risk management advice, fiduciary management and pensions solutions.
Corley said: “At heart, within AllianzGI and RCM there is respect for the many distinctive investment capabilities that we have and our great reach in delivering these to clients in a manner which is sensitive to their specific needs. Global capability with local delivery is much talked about but rare to find in practice; yet this is something we have built over the past years thanks to our history of preserving boutique investment excellence, and combining this with far reaching quality client service."
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