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Allianz Cuts Pimco From Co-Branded Funds

The parent of Newport Beach-based Pacific Investment Management Co. replaced Pimco asset managers with its own advisers for a dozen or so bond funds that combine for about $6 billion in assets.

Pimco has been part of Munich-based global financial services firm Allianz SE since 2000.

The Pimco unit is headed by cofounder and co-Chief Investment Officer Bill Gross and Chief Executive Mohamed El-Erian.

The company manages about $1.97 trillion worth of assets overall. Its signature Total Return Fund, managed by Gross, had about $248 billion in assets as of the end of October.

The latest changes in lead management are part of Allianz’ initiatives to further distinguish itself and Pimco as separate asset managers in the fixed-income market.

Allianz in 2011 took steps to “more clearly define two discrete investment management businesses” by setting up a unit called Allianz Asset Management, comprising of Pimco and Allianz Global Investors GMBH.

—Jane Yu

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