Pacific Investment Management Co, the manager of the world's biggest bond fund, named Mohamed El-Erian as its chief executive to replace Bill Thompson, who will retire at the end of the year.

El-Erian, currently the co-CEO, joined Pimco in January from Harvard University, where he was managing a $34.9 billion endowment.

El-Erian will also continue in his role as co-chief investment officer with Bill Gross, the founder and CIO of Pimco, the company said in a statement.