(Updates with details on Pimco’s stock expansion in third paragraph.)
Oct. 4 (Bloomberg) -- Bill Gross’s Pacific Investment Management Co., the bond manager that’s expanding into stock investments, said Cliff Remily, who co-runs two equity funds, left the firm.
Daniel Ivascyn was named as a co-manager of the $607 million Pimco Dividend and Income Builder Fund, which Remily helped run, according to a filing today by the Newport Beach- California based firm. Brad Kinkelaar will become the sole manager on the $649 million Pimco EqS Dividend Fund, which Remily had also worked on, and continue managing the Dividend and Income Builder Fund. Mark Porterfield, a spokesman for Pimco, said Remily left the firm this week, and declined to comment further.
Remily’s exit comes eight months after Neel Kashkari, who joined Pimco in December 2009 to oversee its expansion into stocks and served as head of global equities, said he was leaving to consider a career in public service. Pimco, which has more than 90 percent of its $1.97 trillion in assets in bond- related strategies, has been seeking to reduce its dependence on fixed income. The mutual-fund versions of Pimco’s four main stock strategies have grown to $3.8 billion since the first one debuted in 2010.
A message left at Remily’s office wasn’t returned, nor was a voicemail left at Remily’s home phone number.
Kinkelaar and Remily, formerly of Thornburg Investment Management, joined Pimco in September 2011 to run the EqS Dividend Fund, which invests in dividend-paying stocks globally. Anne Gudefin and Charles Lahr, former Franklin Resources Inc. managers, were brought in to oversee Pimco’s first stock fund, EqS Pathfinder, which opened in April 2010. Pimco also offers an emerging-markets stock fund, run by Masha Gordon, and a long/short fund managed by Geoffrey Johnson.
Pimco EqS Dividend Fund, which opened in December 2011, returned 13 percent over the past 12 months, trailing 90 percent of peers, and returned 12 percent this year, behind 77 percent of similarly managed funds, according to data compiled by Bloomberg. Kinkelaar managed the fund with Remily since its inception.
Ivascyn runs the top-performing $27.8 billion Pimco Income Fund, which returned an annualized 11 percent over the past three years, ahead of 99 percent of peers, according to data compiled by Bloomberg. Ivascyn was named in the May issue of Bloomberg Markets magazine as the top U.S. bond manager for his performance over one, three and five years.
--Editors: Sree Vidya Bhaktavatsalam, Josh Friedman