PIMCO, a leading global investment management firm, has obtained a responsible entity licence and plans to become the Responsible Entity (RE) for its $10 billion managed funds complex in Q1 2017. This follows the successful internalisation of wealth management distribution in December last year.
“Feedback from the market since bringing wealth management distribution in-house has exceeded all expectations.” said Adrian Stewart, PIMCO’s Head of Australia. “Since December 2015, we have met with or presented to more than 6,500 advisers. In addition, 475 advisers have recommended PIMCO to their clients for the first time. We are very proud of these results, and they underscore our commitment to the Australian marketplace.”
“For PIMCO, taking responsibility for the PIMCO funds (as RE) is therefore a natural next step in PIMCO’s continued evolution as a complete provider of investment solutions. As RE, we will now have the platform to continue to innovate and deliver contemporary investment solutions in response to the changing needs of clients.”
By internalising the responsible entity function, PIMCO anticipates a number of benefits to clients, including:
• End-to-end client management: Investors will receive enhanced service flowing from the application of the wealth of resources and experience of the local and global PIMCO team, including investment management, distribution and responsible entity functions.
• Robust risk and compliance controls: As part of a global investment management firm with approximately US$1.5 Trillion funds under management, PIMCO is able to leverage the robust compliance frameworks and controls that have been developed over 40 years.
• Dedicated responsible entity service: Clients will receive a responsible entity service that is entirely focused on PIMCO unit holders.
Corporate strength to meet capital requirements: The net tangible asset (NTA) capital requirements for REs are not capped. PIMCO is committed to the Australian market and is well placed to support our growth and NTA requirements without constraint.
