GERMANY/US - German insurer Allianz has announced a restructure of its asset management business that gives subsidiary PIMCO, the world's largest bond manager, more freedom around distribution of its products.
Effective 1 January, the firm will create Allianz Asset Management which will be comprised of two distinct units - PIMCO and Allianz Global Investors.
PIMCO will then become responsible for the distribution of its products in Europe and Asia Pacific, after the distribution of its products in the US were separated from Allianz Global Investors products last year. Bill Gross (pictured), founder and chief investment officer at PIMCO, and Mohamed El-Erian, chief executive officer and co-CIO, will continue to lead the firm.
The other asset management arm will comprise of AllianzGI and equity manager RCM.
Allianz's asset management business has €1.4trn ($2trn) in assets under management and officials credit growth in assets to the steady growth of PIMCO since it was acquired 11 years ago.
Joachim Faber, member of the Allianz board and head of the new 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."
Meanwhile, the firm said AllianzGI will work under a single global management committee with the creation of new global CEO and CIO roles. Elizabeth Corley, currently CEO of AGI Europe, will serve as chief executive and Andreas Utermann, currently CIO of RCM, as CIO.
A new executive committee will also be put in place for Allianz Asset Management. This will include Jay Ralph, chairman of the asset management business; Thomas Naumann, chief financial officer; Douglas Hodge, chief operating officer at PIMCO and Corley.
The firm also announced Marna Whittington, former COO of Allianz Global Investors AG and now CEO of Allianz Global Investors Capital, will be retiring at the end of the year.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.