© The Financial Times Ltd 2015 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
February 22, 2013 6:59 pm
Pimco, the US fixed income manager, has established a commanding lead in fund sales in Europe over the past year after separating its distribution activities from Allianz Global Investors in late 2011.
Pimco registered net sales of €11.1bn in the final quarter of 2012, just shy of the €11.3bn recorded in the previous three months, according to Lipper FMI, the independent analyst of mutual fund markets. Sales in the second half of 2012 were up 62 per cent on the previous six months.
Emanuele Ravano, head of global wealth management in Europe, said Pimco had doubled the staff count within its European sales team since 2011 and benefited from building relationships with distributors in Germany, Italy and Switzerland.
“We took the view that we don’t need our funds to be available on every single shelf,” said Mr Ravano, adding that building relationships with select distributors had worked well for both sides as Pimco had been able to gather a larger share of new inflows while clients have expressed appreciation for the excess returns generated by Pimco’s managers.
Pimco developed a series of products following the banking crisis to deal with the “new normal”, the view championed by its chief executive Mohamed El-Erian, that large debts and a broken financial system would mean low economic growth for a prolonged time.
These products, such as the Pimco GIS Unconstrained Bond Fund, are unconstrained so they are not benchmarked against indices and can be more flexible in seeking returns in credit markets or emerging market debt while avoiding losses linked to rising interest rates.
Mr Ravano said investors were still risk averse in the aftermath of the financial crisis so they favoured managers such as Pimco rather than those that were more aggressive in taking on risk.
But he also acknowledged that market conditions had also provide supportive tailwinds for Pimco. “Investors have been shifting out of cash and their first move has been into bonds and other short-dated instruments. We have been a clear beneficiary of that”.
Copyright The Financial Times Limited 2015. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.
FTfm is the voice of the global fund management industry, providing must-have news and sharp analysis to the world’s top asset managers and professional investors.