- Fund manager says Asia’s private wealth ‘to grow very quickly’
- More Chinese money finding its way offshore, Mogelof says
Pacific Investment Management Co. is seeking to expand in an increasingly affluent Asia.
The $1.5 trillion money manager is in the process of hiring more than 20 people in marketing, operations, legal and compliance teams in the next two years to help cover major retail banks in Hong Kong and Singapore. It also intends to target newer markets such as Thailand, Malaysia and the Philippines, according to Eric Mogelof, Hong Kong-based head for Asia Pacific at Pimco.
High net-worth individuals’ wealth grew 10 percent to $17.4 trillion in the Asia-Pacific region last year, exceeding the $16.6 trillion figure in North America for the first time, consulting firm Capgemini estimates. The region’s 5.1 million people with more than $1 million in investible assets excluding their primary residence beats the 4.8 million in the U.S., the consulting firm says. Investors from China have been fleeing a weakening yuan, with Goldman Sachs Group Inc. estimating a net outflow from the nation of $55 billion in July.
“Private wealth in Asia excluding Japan continues to grow very quickly, so it makes sense for us to dedicate more resources to those markets,” Mogelof said in interview. “Most of our hiring in the near term will be in the Asia ex-Japan wealth management space, which means retail banking and family offices in Hong Kong and Singapore.”
Hong Kong and Singapore have benefited from funds flowing out of China to seek dollar-denominated assets amid a weakening yuan. Pimco’s wealth management in Asia excluding Japan has experienced "significant” growth in net inflow this year.
“We have seen more Chinese money find its way to offshore markets,” Mogelof said. “Wealthy Chinese investors are looking to private and retail banks offshore for global investment strategies.”
Pimco doesn’t have an office in mainland China and has been working on a business plan to establish the onshore presence, according to Mogelof.
“Given China’s diminishing barriers to entry and positive wealth dynamics, we expect to increase our penetration in both the retail and alternatives spaces,” he said.