UPDATE: Allianz Revamps Its Asset Management Arm; No Sale, IPO Planned
07 September 2011 - 1:01AM
Dow Jones News
Allianz SE (ALV.XE), Europe's largest insurer, Tuesday said it
is reorganizing its asset management business to give better
visibility to its two main brands, Pimco and Allianz Global
Investors, and enable Pimco to sell its products worldwide.
Pimco is Allianz's global fixed-income securities business,
while Allianz Global Investors groups the company's equity
investment. The two will be paired up in a new holding company
called Allianz Asset Management AG with EUR1.4 trillion in
assets.
Allianz spokesman Hanno Strube stressed that "no sale or initial
public offering of either of the two brands is planned," and said
there would be no change to Pimco's management team or its standing
as an independent entity within the group.
Newport Beach, Calif., based Pacific Investment Management
Company LLC, or Pimco, is the world's biggest bond fund manager. It
has been part of the group since 2000 and until now has been a unit
of Allianz Global Investors of America L.P.
Pimco is --and will continue to be-- headed by founder Bill
Gross and Chief Executive Mohamed El-Erian, Allianz said. Gross and
El-Erian are Pimco co-chief investment officers and renowned
investment professionals in the asset management world.
Allianz Global Investors' management team is being strengthened
by the reorganization, Strube said.
The new structure will be effective Jan. 1, when Jay Ralph will
succeed Joachim Faber as head of asset management on Allianz's
management board.
Strube said Faber and Ralph jointly developed the new structure
to move away "from a family of boutiques model to a clear
two-pillar structure." The new structure also reflects the shift
towards a customer-oriented businesses rather than just brands, the
Allianz spokesman said.
Pimco will assume sole responsibility for distributing its
products and funds globally, similar to the development that began
in the U.S. market last year when the distribution of Pimco and
Allianz Global Investors was separated and Pimco became responsible
for distributing its products to clients in the U.S. and to
institutional clients globally. Pimco will now distribute its
products--global investment solutions across asset classes--in
Europe and Asia.
"Entrusting us with this additional operational autonomy
reflects the strength of the relationship with Allianz and the
mutual respect that exists," said El-Erian.
-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500;
ulrike.dauer@dowjones.com