Pimco's multi-pronged solutions

MUTUAL fund giant Pimco is looking to grow its business in the Asia Pacific at a double digit clip over the next five to seven years, says Eric Mogelof, Pimco Asia's managing director and head of Asia Pacific. He says clients are seeking strategies that deliver "alpha", or excess returns above the markets. This can come from traditional and alternative assets, both of which Pimco offers. Pimco has total assets under management (AUM) of around US$1.6 trillion. Asia accounts for about 10 per cent of total assets.

Over US$68 billion of the AUM is in liquid alternative assets and more than US$30 billion in alternatives such as hedge funds and private equity.

"We're seeing client demand for solutions that span multiple asset classes and sectors of the fixed income market. There is also demand for alternative strategies such as hedge funds and private equity. Clients looking at capital markets anticipate lower returns from traditional investment strategies, such as core bonds and equities," Mr Mogelof told The Business Times on the sidelines of Credit Suisse's Global Megatrends Conference last week.