Pimco Australia Pivots to Lure $2.5 Trillion Pension Sector
- Manager’s focus on alternatives has increased to meet demand
- Pension giant Aware Super looks to ‘blended hybrid approach’
A pensioner fishes from the beach in Sydney, Australia.
Photographer: Andy Shaw/Bloomberg
This article is for subscribers only.
Pacific Investment Management Company, the $1.9 trillion asset manager, has increased its focus on alternatives strategies in its Australia business as it courts the country’s fast-growing A$3.7 trillion ($2.5 trillion) pension industry.
Five years ago, Pimco’s Australian business comprised 80-90% fixed income, said Sam Watkins, executive vice president and head of business in Australia and New Zealand. While the firm has maintained its fixed income market share, alternative strategies have grown rapidly and now represent 70% of its Australian institutional business, reflecting the shift in demand from super funds, he added.