Pimco To Launch Hedge Funds

by Carla Johnson, Investors Offshore, London

09 April 2002

Pimco, the US fund management group controlled by Allianz of Germany, plans to enter the hedge fund market as part of its expansion outside the US and will open fund management offices Singapore and Tokyo, where it now has only sales and marketing offices.

The German insurer paid US$3.3bn for a 70% stake in the group nearly two years ago.

Jim Muzzy, co-founder of Pimco, told the Financial Times that a fixed-income hedge fund would soon be launched for US and foreign investors. He insisted it was not too late for Pimco to enter the competitive but lucrative hedge fund business. "We're taking advantage of what we're doing now, and adding leverage," he said.

Allianz, which has switched much of Dresdner Bank's fixed-income capability to Pimco, will be able to provide the hedge fund with some of its assets. Mr Muzzy said Allianz's ability to provide start-up operations with seed capital was one of the strengths of the relationship.

Pimco (Pacific Investment Management Company) is a leading institutional money manager with over $241.3 billion in assets under management (as of December 31, 2001). PIMCO was established in 1971 to offer separate account management services primarily for employee benefit plans, endowments and foundations.
The firm counts among its prestigious clients 67 of the largest 200 U.S. Pension funds (as measured by Pensions & Investments magazine 1/25/99).

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