PIMCO executives began preparing months ago for William H. Gross' departure, sources said, although the announcement on Sept. 26 that he was leaving to become a portfolio manager at Janus Capital Group surprised the money management industry and financial markets.
“We've been hearing that there's been a replacement in place for quite some time,” said Alan Kosan, senior vice president and head of alpha research at investment consultant Segal Rogerscasey, Darien, Conn.
Mr. Gross was a co-founder and chief investment officer of Pacific Management Investment Co. LLC. He was replaced at PIMCO by Daniel Ivascyn, who had been deputy CIO, and was given the new title of group CIO.
On the day Mr. Gross announced his plans to leave, PIMCO CEO Douglas Hodge said in a news release: “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.”
Mr. Gross, who had managed as much as $400 billion at PIMCO, will be sole portfolio manager ofthe $12.86 million Janus Unconstrained Bond Fund, which was launched March 27. He will assist Myron Scholes, chief investment strategist, on global macro strategies. Mr. Gross will join the firm on Sept. 29 and begin managing the strategies on Oct. 6.