Pimco Says It Will Probably Be Onshore in China by 2018By
Firm’s head of Asia Pacific Mogelof spoke at Bloomberg summit
Money manager is seeking to expand in a more affluent Asia
Pacific Investment Management Co. will probably be onshore in China in a year or two, according to Eric Mogelof, head of Asia Pacific at the firm.
“Most recently we’ve seen regulations change,” Mogelof said at the Bloomberg Markets Most Influential Summit in Hong Kong. That is “encouraging Pimco to think a whole lot more about being onshore.”
The remarks come after Mogelof said last month that Pimco, which doesn’t have an office in mainland China, has been working on a business plan to establish an onshore presence. A growing number of firms have been taking similar steps. Earlier this year, Bridgewater Associates became the first foreign hedge fund manager to win approval to set up a wholly owned investment-management business in China, according to Shanghai-based consulting firm Z-Ben Advisors.
Pending clarification of the rules concerning such arrangements, licenses of that kind enable foreign firms to offer China-focused products to Chinese clients except mass retail investors, Peter Alexander, founder of Z-Ben, said in May.
Pimco, which had $1.5 trillion of assets under management as of June 30, is seeking to expand in an increasingly affluent Asia. 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.
Pimco was 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, Mogelof said last month.