(Adds Morningstar's downgrades of Pimco funds; byline)
By Jennifer Ablan
NEW YORK, April 21 DoubleLine Capital, the bond
management firm run by Jeffrey Gundlach, said on Monday it had
hired an executive from rival Pimco to run a new unit focused on
developing new investment products and lines of business,
particularly outside the United States.
DoubleLine named Ignacio Sosa, previously Pimco's executive
vice president for global bond product management, director of
its newly formed Product Solutions Group. He starts on May 12
and will report to Gundlach.
Sosa's departure comes after a management shakeup and months
of investor outflows at Newport Beach, California-based Pimco.
Earlier this year, Mohamed El-Erian, long seen as heir apparent
to Pimco co-founder Bill Gross, stunned the fixed income
investor community by announcing his departure.
Also on Monday, Morningstar downgraded two Pimco funds, the
Pimco Unconstrained Bond and Pimco EqS Pathfinder, to "neutral"
from "bronze" ratings following El-Erian's exit and other
Sosa, an experienced emerging markets investor, joined Pimco
in 2011. Pimco, or Pacific Investment Management Co, is a unit
of European financial services company Allianz SE, and
had $1.91 trillion in assets as of Dec. 31, according to the
Los Angeles-based DoubleLine has $49 billion in assets under
Sosa joined Pimco as executive vice president/lead emerging
markets product manager, later becoming the firm's executive
vice president for Global Bond Product Management.
In a statement, Sosa said: "Start-ups of equity boutiques
happen all the time, but for decades, fixed income assets have
remained largely concentrated among a few investment firms
because launches of new bond managers are rare events.
"DoubleLine has proven the happy exception since its
founding a little more than four years ago. Jeffrey and his team
have built a growing, nimble, client-focused company, with
diversified strategies in fixed income and equities. Their track
record of risk-adjusted returns speaks for itself. So joining
DoubleLine at this early stage in its development is especially
(Reporting by Jennifer Ablan; Editing by Chizu Nomiyama; and