(February 28, 2014) — Mohamed El-Erian has accepted a part-time role as chief economic adviser for German insurer Allianz, following his shock decision to leave the Allianz-owned fund manager PIMCO last month.
Allianz CEO Michael Diekmann told a Munich press conference yesterday that El-Erian would spend 50% of his time in the role, working alongside Chief Economist Michael Heise. The remainder will be spent on book projects and spending time with his family.
The former PIMCO chief executive officer and co-chief investment officer hit the headlines on January 21 by shocking the market with his unexpected resignation.
His departure coincided with a broader shakeup of PIMCO’s senior executives and follows one of the firm’s worst years in decades.
Investors pulled €35.6 billion from PIMCO in the fourth quarter of 2013, capping a tumultuous year for the bond giant in which assets under management fell 10%.
PIMCO’s official announcement failed to provide an explanation for the resignation of Gross’s second-in-command.
But media reports, originated by articles in the Wall Street Journal citing internal PIMCO sources, have since suggested a major falling out between El-Erian and PIMCO founder and co-CIO Bill Gross.
The paper reported that the two men openly squared off in front of more than a dozen colleagues amid disagreements about Gross’s conduct last June.
“I have a 41-year track record of investing excellence,” Gross is said to have told El-Erian, according to two witnesses. “What do you have?”
“I’m tired of cleaning up your ****,” El-Erian is said to have responded, referring to conduct by Gross that he felt was hurting PIMCO, the same two people recalled.
Allianz’s Diekmann said that he could not confirm the media reports about the reason for El-Erian’s resignation, according to Bloomberg.
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