Pimco’s $22 billion of domestic bond portfolios were under new leadership as of yesterday, following Friday’s resignation of Kumar Palghat and his replacement by a member of the global portfolio management team, Julian Foxall.

Palghat, a ten-year veteran of Pimco, had run the fixed interest specialist’s Australian office since 2003, but reverted to a co-head role in April this year following the return of his predecessor, John Wilson, from the manager’s Newport Beach, California headquarters. It is understood Palghat, who once managed the World Bank’s bond portfolio, is involved in a new hedge fund backed by wealthy individuals, but it’s not known whether this will be based in the US or Australia. He was unavailable for comment. His replacement, Foxall, has been with Pimco for five years after joining from Allianz Global Investors. John Wilson said Foxall’s promotion ensured continuity for local clients, and he foreshadowed “additional resources to our locally based fund management team shortly”. Pimco’s head of Asia-Pacific, Doug Hodge, said future staff requirements in Australia would be shaped by this market’s growing appetite for absolute return and credit-oriented bond strategies.