20th Jul 2016 09:10
LONDON (Alliance News) - Mid-cap hedge fund manager Man Group PLC on Wednesday said Chief Executive Manny Roman is to leave the company to become the CEO of US bond fund giant PIMCO.
Man Group shares were down 4.3% to 117.00 pence mid-morning on Wednesday, the worst performer in the FTSE 250.
Roman will step down from Man Group, the largest listed hedge fund manager in the world, at the end of August and will take up his role at PIMCO on November 1. He has been at the helm of Man Group since February 2013.
PIMCO, once the largest bond fund investor in the world and owned by German insurance giant Allianz SE, has undergone a turbulent couple of years following the departure of founder and former CEO Bill Gross in late 2014. Gross, known in the industry as the "bond king", left to join rival Janus Capital following a period of weak performance in PIMCO's funds, and his departure led to a wave of outflows for the group.
Earlier the same year, PIMCO had lost CEO Mohammed El-Erian, another prominent member of its team who chairs US President Barack Obama's Global Development Council. Douglas Hodge, PIMCO's current CEO who took over from El-Erian, will become managing director and senior adviser upon Roman's arrival.
Roman will be replaced at Man Group by Luke Ellis, who will take up the role on September 1. Ellis has been president of Man Group since 2012 and was responsible for managing the company's four investment units - Man AHL, Man GLG, Man Numeric and Man FRM.
Prior to this, he was the head and chief investment officer of Man Group's multi-manager business and the non-executive chairman of multi-manager operations at GLG, Man Group's discretionary investment management unit.
"On behalf of the board, I would like to thank Manny for his leadership and for all he has done for Man Group; he leaves a much stronger, more resilient business than the one he took on. During his tenure as CEO, Man Group has successfully restructured and diversified and he has put in place an excellent management team," said Ian Livingston, Man Group's chairman.
"Luke Ellis' dedication to Man Group and commitment to delivering performance for investors, as well as the leadership he has already demonstrated, makes him the ideal candidate to take over from Manny. His appointment was a unanimous decision taken by the board, and we are very pleased that he has accepted the role," Livingston added.
"The investment management industry has faced a number of challenges in recent years, as have many parts of financial services. However, by continuing with our focus on performance and client service, and investing in our infrastructure and diversification as we build on our position at the forefront of the industry, I am confident that we can deliver significant long term value for our clients and shareholders," Ellis said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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