Gross leaves PIMCO, returns 'to his roots' at Janus Capital Group

William H. Gross, the investment legend whose name is synonymous with Pacific Investment Management Co., will join Janus Capital Group on Monday as a portfolio manager.

Mr. Gross is “returning to his roots,” said Janus spokesman Steven Shapiro, in explaining why the bond guru wouldn't have a more exalted titles at Janus. Mr. Gross will open an office in Newport, Beach, Calif., for the Denver-based firm.

At PIMCO, Mr. Gross was a co-founder and served as chief investment officer.

PIMCO CEO Douglas Hodge said in a news release that there were “fundamental differences” between Mr. Gross and the rest of the firm's senior executives “about how to take PIMCO forward.”

Added Mr. Hodge: “PIMCO has been developing a succession plan for some time to ensure that the firm is well-prepared to manage a seamless leadership transition in its portfolio management team.”

Petra Brandes, a spokeswoman at Munich-based parent company Allianz SE said PIMCO plans to name a successor by the end of the day. Relevant portfolio management assignments will also be announced at that time.

A Janus news release said Mr. Gross will begin managing the Janus Global Unconstrained Bond fund and related strategies, effective Oct. 6, with responsibility for building out the firm's global macro fixed-income strategies.

Mr. Gross said in the news release that he moved to Janus because of his “long-standing relationship” with Janus CEO Richard M. Weil, who was chief operating officer at PIMCO until he joined Janus in early 2010. Mr. Gross also said he wanted to spend “the bulk of my day managing client assets.”

In a separate statement, Mr. Weil said Mr. Gross will provide Janus with “a very unique opportunity to offer global macro fixed-income strategies and products that are highly complementary to” Janus' credit-driven fixed-income strategies led by Gibson Smith, CIO for fixed income.

Messrs. Weil and Smith were unavailable for interviews.

The Janus Unconstrained Bond Fund was launched March 27 and had $12.86 million in assets under management as of Aug. 31, according to Janus' website.

Allianz's Ms. Brandes said former PIMCO CEO and co-CIO Mohamed El-Erian has not expressed any interest in returning to PIMCO.

“Mohamed enjoys a very constructive relationship with Allianz, allocating 50% of his time to advising the company. He has made very clear what his plans for his time after PIMCO are and he is enjoying it,” Ms. Brandes said.

Janus Capital had $177.7 billion and PIMCO had $1.97 trillion in assets, both as of June 30.