Pimco’s global equity chief departs amid shutdown

Global head of equity trading position will not be replaced following Melissa Tuttle’s departure.

Pacific Investment Management Co (Pimco) has confirmed its global head of equity trading, Melissa Tuttle, has left the firm and will not be replaced.

Tuttle’s departure follows Pimco’s decision to eradicate its dividend team and close six mutual funds in June this year.

Its chief investment officer for equities, Virginie Maisonneuve, also departed following the shutdown of three active stock mutual funds in May last year, after being recruited to build Pimco’s equities business.

Maisonneuve’s role was not replaced, and was a huge setback to Pimco’s push into equities in 2009 when former chief Bill Gross sought to enter the space.

Tuttle joined Pimco from Goldman Sachs Asset Management in 2010 and was promoted to global head of equity trading in 2014, and put in charge of the day-to-day operations and performance of Pimco’s equity desks and staff.  

The bond fund manager saw income decline 2.5% in the second quarter this year, compared to the same period in 2015.

Discussing the results, Chief executive officer, Oliver Bäte said: “In Asset Management, operating profit remained almost at the level of the previous year and the net outflows at Pimco have slowed, but we have not yet reached our goals.”

Pimco saw €18 billion in outflows in the second quarter of 2016 as one single client withdrew €17 billion.

Chief financial officer of its parent company Allianz Global Investors, Dieter Wemmer said this was withdrawn because the investor “needed the money for something else.”

In July this year, Pimco announced the appointment of Manny Roman – who departed Man Group - as its new chief executive.

The appointment of Roman signalled an aggressive move by the bond giant to rebuild, following the sensational departure of fixed income guru Bill Gross in September 2014.

Pimco referred to Roman’s “expertise in fixed income” during his 30-year career at Man Group and Goldman Sachs, when announcing his appointment.