Allianz Global Investors has poached two portfolio managers from rival Columbia Threadneedle to kick-start its US fixed income operation.
The firm has hired Carl W. Pappo Jr and Frank Salem as chief investment officer for US fixed income and senior portfolio manager for fixed income, respectively.
The duo, which has worked together for the last 10 years, is to launch US core, core plus, and liability driven investing strategies at Allianz.
Pappo was lead portfolio manager and head of core fixed income at Columbia, while Salem was responsible for building out the LDI capability at the firm.
Pappo will report to Franck Dixmier, AllianzGI global head of fixed income.
While Allianz has been building out its fixed income operations in recent years, it has largely focused on global strategies, including emerging markets and Asia, rather than the US.
AllianzGI's parent company Allianz is also the owner of US fixed income giant Pimco.
The move into US fixed income follows AllianzGI's 2016 decision to boost its global fixed income team with the acquisition of Rogge Global Partners.
Since 2012, AllianzGI has grown fixed income assets from $128 billion to $229 billion, in part boosted by the Rogge deal.
A spokesperson for Columbia said Pappo's core portfolio responsibilities have been assumed by Gene Tannuzzo and core plus by Callan.
Liability driven investing portfolio responsibilities have been assumed by Tom Murphy, senior portfolio manager and head of investment grade credit.