Allianz, Europe’s biggest insurer and owner of Pacific Investment Management Co., is standing by Chief Investment Officer Bill Gross as his main fund trails peers and struggles with a record streak of investor redemptions, calling him an industry 'legend'.
Bloomberg News reports that Gross, who runs Pimco, has given no indication that he will step down and is 'even more invigorated' as Pimco begins to improve performance from its biggest fund, Jay Ralph, the insurer’s management board member responsible for asset management, said in an interview.
'We want Bill Gross to work as CIO for as long as he is willing and able', Ralph, 55, said last week.
Allianz Chief Executive Officer Michael Diekmann was forced to defend Pimco against shareholder criticism during the insurer’s annual meeting in May as Gross is lagging behind rivals for the third year in four and investors have pulled $64bn from his Pimco Total Return Fund since May 2013. Gross, 70, has also come under scrutiny for his management style since the abrupt resignation in January of former CEO Mohamed El-Erian, whose departure was followed by reports of clashes between the two men.
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