PIMCO announed late Tuesday that its CEO and Co-Chief Investment Officer Mohamed El-Erian has decided to step down from his role and leave the firm in mid-March.

El-Erian will remain a member of the Allianz International executive committee and, once he steps down, will also advise the Allianz board of management on global economic and policy issues.

"Mohamed has been a great leader, business builder and thought leader for PIMCO and our clients," PIMCO’s founder William Gross said.

"Together we have guided the firm and served our clients during a period of significant change in the global economy and financial markets. We are pleased that he will remain a part of the Allianz Group," Gross added.

El-Erian's analysis in the wake of the housing meltdown and the subsequent years of a tepid recovery proved crucial to his colleagues and the investment community. He often made broad calls for policy officials to get better at guiding fiscal policy from the halls of Washington, D.C.

 "I have been extremely honored and fortunate to work alongside Bill Gross, who is one of the very best investors in the world," El-Erian said.

"I have also been amazingly privileged to work with the most talented group of professionals in the investment management industry. I wish them continued great success,” he added.