PIMCO Forms Unit for Global Business
June 21, 1999
PIMCO Advisors Holdings has created a new unit called PIMCO Global Advisors to manage its international offices under one division and gear up for an expanded international presence.
James Muzzy, a PIMCO co-founder and managing director, will head the new division from PIMCO's headquarters in Newport Beach, Calif. That puts Muzzy in charge of a staff of eight in Tokyo, six in London, three in Singapore and two in Sydney, Australia.
PIMCO has no immediate plans to open additional foreign offices or to hire additional personnel, said Mark Porterfield, a spokesperson for PIMCO.
The creation of an international division was needed because each of the foreign offices reported to different managers, said Porterfield.
"Various people in our London office reported to Pimco Advisors in Newport Beach, while others reported to Oppenheimer in New York," he said.
The new division may portend future changes, Porterfield said. Pimco Global Advisors' headquarters may be moved offshore. And, additional staffing and offices may be required since PIMCO plans to begin conducting investment research in Europe and to develop products specifically designed for international markets, Porterfield said. PIMCO also plans to distribute its products and services through established distribution channels by forming partnerships with banks and life insurance companies, he said.
"There is a real push at our company to go around the world," Porterfield said.
Currently, only $14 billion, or 5.6 percent of PIMCO's $248 billion of assets, are managed internationally. PIMCO hopes to build that to 20 percent.
PIMCO is making this global push now because although the firm has had international offices for seven years, international sales have increased dramatically in the past 18 months, Porterfield said.