Citywire - For Professional Investors

Register to get unlimited access to all of Citywire’s fund manager database. Registration is free and only takes a minute.

Major push into equities will take time, says PIMCO chief

Major push into equities will take time, says PIMCO chief

PIMCO will not become a major player in equity funds over night and will take time to establish a proper unit, the group’s chief executive has told Citywire Global.

Speaking from the firm’s Newport Beach headquarters, Doug Hodge said the group was still focused on developing a strong presence in the highly competitive field despite recent hurdles.

The bond giant's strategy to diversify away from its core fixed income proposition has arguably been given added urgency by the ending of the 30-year bond bull run and more recently, the shock departure of CEO Mohamed El-Erian.

He said: 'You can't build an equities house quickly. We have 40 plus years of experience and expertise in fixed income but with equities, we are still acquiring those skills and are in the talent acquisition stage.'

The group hired Virginie Maisonneuve from Schroders to build out its equity proposition earlier this year after the departure of interim head of equities Marc Seidner and equities portfolio manager Charles Lahr.

Seidner, formally of the Harvard University endowment plan, had himself stepped in following the departure of equities head Neel Kashkari in January 2013.

'Virginie is a proven equity investor and she is in contact all the time,' he said.

Outflows and performance

Hodge refused to be drawn on concerns over recent fund outflows and the impact of recent negative news flow, but instead stressed that equities was just one of a raft of alternative assets the group was looking to expand in.

'It is not just about equities. Over the past five years we have introduced close to 150 investment products, in hedge funds and liquid alternatives, alternative assets, income and then equities.’

'Nothing has changed as far as we are concerned. We are long term investors and [the recent press stories] have not changed the way we do things.’

‘We are a very competitive house, and try to focus on superior performance and the highest standard of client service. That mission is not influenced by the media.'

He admitted however that over the past 12 months fund flows had not been helped by overall group performance.

'There are 275 PIMCO fund managers around the world that have delivered superior performance over the past few years although maybe not over the past 12 months.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Asia Bangkok Retreat 2018: day one images

    Citywire Asia Bangkok Retreat 2018: day one images

  • Citywire Asia Bangkok Retreat 2018: day two images

    Citywire Asia Bangkok Retreat 2018: day two images

  • Citywire Asia Taipei Retreat 2017: day two images

    Citywire Asia Taipei Retreat 2017: day two images

  • Citywire Asia Bangkok Retreat 2017: day one images

    Citywire Asia Bangkok Retreat 2017: day one images

  • Citywire Asia Bangkok Retreat 2017: day two images

    Citywire Asia Bangkok Retreat 2017: day two images

  • Images from Citywire Thailand Forum 2017

    Images from Citywire Thailand Forum 2017

  • Citywire Asia Awards 2017: images from Singapore

    Citywire Asia Awards 2017: images from Singapore

  • Citywire Asia Awards 2017: images from Hong Kong

    Citywire Asia Awards 2017: images from Hong Kong

  • Citywire Asia Taipei Retreat 2017: day one images

    Citywire Asia Taipei Retreat 2017: day one images

  • Citywire Asia Retreat in Bangkok: day two images

    Citywire Asia Retreat in Bangkok: day two images

  • Bangkok buzz: day 1 images from our Asia Retreat

    Bangkok buzz: day 1 images from our Asia Retreat

  • Images from Citywire's Thailand Forum

    Images from Citywire's Thailand Forum

  • Pictures from Citywire's Hong Kong forum

    Pictures from Citywire's Hong Kong forum

  • Images from our Citywire Singapore Forum

    Images from our Citywire Singapore Forum