Pimco to Close Two Equity Strategies

Pacific Investment Management Co. said it is shutting down two of its equity strategies and its chief investment officer of global equities is leaving the firm.

Pimco executive Virginie Maisonneuve will depart the firm in late June of her own accord, the company said. Based in the London office of Pimco, Ms. Maisonneuve was appointed to the role after the departure of Bill Gross, Pimco's founder and former chief investment officer, last year. There are no immediate plans to replace her.

Portfolio managers and analysts associated with the two Pimco equity strategies--called Pathfinder and Emerging Market Equity--also will leave the Newport Beach, Calif.-based firm. It isn't clear how many of those employees will depart.

Pimco Chief Executive Douglas Hodge said in a statement that "equities will continue to be an important part of Pimco's investment solutions, including active and enhanced equities." He said that Ms. Maisonneuve will direct the transition and oversee an orderly liquidation of the strategies. They included mutual funds and separately managed accounts.

"Virginie is an outstanding investor and business builder and she has made valuable contributions during her tenure at Pimco," Mr. Hodge said.

The fund closures and departure of Ms. Maisonneuve and other portfolio managers is the latest challenge for Pimco's equity business, which has struggled to gain traction among investors. The division has about $50 billion in assets under management. The strategies that will close represent about 3% of assets.

Pimco, with $1.6 trillion of assets under management, is widely known as a bond-fund manager, operating one of the largest bond mutual funds in the world, the Pimco Total Return.

The moves come as Pimco continues to struggle with investor outflows following the September departure of Mr. Gross, who left for rival Janus Capital Group Inc.

Ms. Maisonneuve is the highest-profile departure from the firm since Mr. Gross left.

Write to Kirsten Grind at [e-mail]

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