Pimco and Allianz Global Investors are to be united under a single division to be named Allianz Asset Management division from next year.
The new division will be chaired by Jay Ralph who will take over at the beginning of next year succeeding Joachim Faber, who currently oversees the asset management business.
The restructure will see Pimco take over responsibility for the distribution of its own funds across the world.
The move follows a similar move in the United States, where both company’s products were distributed separately.
Elizabeth Corley will become chief executive officer of Allianz Global Investors, while Andreas Coleman will take over as chief investment officer. Pimco founder Bill Gross and chief executive officer Mohamed El-Erian will remain in charge of the business.
Joachim Faber said the asset management business had evolved ‘considerably’ since it was first established in 1998.
He said the new structure reflected the global scale and broadening scope of Pimco’s investment management platform.
Jay Ralph added: “Most major financial services providers would be happy to have one successful asset management business; Allianz has two.
“Through these evolutionary changes, Pimco and Allianz Global Investors will have the scale and the opportunity to develop further their distinctive businesses globally and increase their contribution to Allianz’s overall business.”
Mohamed El-Erian said: “Our long-standing relationship with Allianz is extremely beneficial to our clients, Allianz’s shareholders and our employees around the world.
“Entrusting us with this additional operational autonomy reflects the strength of the relationship with Allianz and the mutual respect that exists.”
“We expect this new structure to facilitate our continued evolution to become the provider of choice to clients around the world for their complete global investment solutions in a rapidly changing global landscape.”