The move is the latest in Pimco’s expansion, which the group initiated after Allianz, the German insurer paid $3.3 billion for a 70% share of the group in 2000.
The insurer has moved a large portion of its fixed income capability to Pimco and will provide the new hedge fund with the seed assets necessary.
According to company officials, Pimco’s management of a client’s hedge fund over the last three years has allowed it to develop the risk analysis tools necessary for marketing the fund globally.
Jim Muzzy, co-founder of Pimco with Bill Gross, Pimco’s chief investment officer, commented, “we’re taking advantage of what we’re doing now, and adding leverage.”
Also in line with the group’s expansion plans, Pimco will increase its Asian operations in Singapore, which previously only had sales and marketing desks, by basing fund managers there.
Currently the group’s Asian office manages some $11 billion in assets, including $6 billion in Japan.