NEW YORK (TheStreet) -- Mohamed El-Erian, CEO of Pacific Investment Management Company (PIMCO), will resign in March, in an abrupt change of leadership at the world's biggest bond fund manager. The resignation, made at a management meeting on Tuesday, was disclosed in press statement from Allianz, the parent of PIMCO.
Allianz said that at the Tuesday meeting, current PIMCO COO Douglas Hodge was appointed to take over as CEO of the asset manager upon El-Erian's resignation in March. The firm's Chief Investment Officer and founder William H. Gross will continue with his current duties, Allianz said.
El-Erian's resignation will shake up the management ranks of PIMCO at a time when investors have begun to withdraw money from some of the firm's stalwart bond funds amid a rise in interest rates as the Federal Reserve's works to rein in some of its easing measures. PIMCO will also lose one of the most recognizable and prolific executives in the asset management industry.
PIMCO currently manages roughly $2 trillion in assets, mostly in bond mutual funds. Gross, known as "The Bond King" continues to manage the firm's over $200 billion PIMCO Total Return Bond Fund, one of the best performing fixed income mutual funds in recent decades. During 2013, PIMCO's Total Return Bond Fund lost 1.9%, its worst return since 1994, according to Bloomberg.
Gross struck an optimistic tone on Twitter, saying he was ready for another 40 years at the bond manager.
Gross: PIMCOs fully engaged. Batteries 110% charged. Im ready to go for another 40 years!