Pimco is the nation's largest manager of bond mutual funds and the sponsor of the Pimco Total Return Fund. Owned by Germany's Allianz, Pimco claimed $1.97 trillion in total AUM as of June 2014.
Founder Bill Gross was the motive force at Pimco from its creation in 1971 through and after its purchase by Allianz in 1999. Gross remained with Pimco through September 26, 2014, when he resigned to take a senior post at Janus Capital. Daniel Ivascyn replaced Gross as Group CIO while Scott Mather, Mark Kiesel and Mihir Worah, took over as co-PMs of Total Return.
In March 2014, CEO Mohammed El-Erian resigned his post at Pimco after a spat with CIO Bill Gross. El-Erian retained a post at Allianz. Doug Hodge took over as CEO replacing El-Erian.
Pimco hired Neel Kashkari, famous for leading the Treasury's TARP om 2008 and 2009, to lead a push into the equity market starting in late 2009. Virginie Maisonneuve joined Pimco from Schroders in 2013 after Kashkari left in January of that year to explore a run for the governorship of California.
"Bond King" Willam Gross and Pacific Life Insurance Company created Pimco in 1971 to manage its separate accounts for institutional clients.
Pacific Mutual Life spun off Pimco Advisors LP in 1994 while retaining a 30 percent ownership in the asset manager. As part of the spin-off, Pimco Advisors LP had consolidated into one investment management organization through its deals with Pacific Investment Management Co., Columbus Circle Investors (sold off in 1999), Cadence Capital Management (sold off in 2005), and Blairlogie Capital Management (sold off in 1998). In 1997, the company completed the acquisition of Oppenheimer Capital LP, which become a wholly-owned subsidiary.
Purchase by Allianz
On May 5, 2000, the German insurer Allianz SE purchased a 70 percent stake in Pimco Advisors with Pacific Life Insurance retaining its 30 percent stake. Allianz paid $3.3 billion1, or $38.75 per unit, valuing the entire firm at $4.7 billion at the time. At the time of the deal Pimco managed $256 billion, pegging the deal price at 1.84 percent of AUM.
At that time Gross, then-CEO Bill Cvengros and other top managers reportedly sold their 22 percent stake in the company. Gross' share was would have been worth $26 million
In 2003, Allianz and Pacific Life, which still holds 30 percent of Pimco's stake, agreed to keep intact the ownership structure in the coming years.
On July 27, 2010, Pimco and Allianz Global Investors Distributors executives announced via a letter to financial advisors that starting early 2011, AGID will no longer distribute Pimco funds. Distribution will move to a new broker-dealer that Pimco is setting up called Pimco Investments and Jon Short will run the b-d out of New York.
Pimco announced the launch of Pimco Investments on February 14, 2011.