PIMCO obtains RE licence
PIMCO has obtained a responsible entity (RE) licence and hopes to become a responsible entity for its $10 billion managed fund complex during the first three months of next year, subject to unit holder approvals.
The company said the move signalled the next step and the continued expansion into the Australian market.
According to PIMCO, internalising the RE function would offer a number of benefits for its clients, including:
- End-to-end client management — as investors would receive enhanced service thanks to the combined experience of local and global PIMCO teams, regarding investment management, distribution and RE functions;
- Robust risk and compliance control;
- Dedicated responsible entity service; and
- Enhanced corporate strength
PIMCO's head of Australia, Adrian Stewart, said that the move was triggered by positive feedback from the market after bringing wealth management distribution in-house.
"For PIMCO, taking responsibility for the PIMCO funds is therefore a natural next step in PIMCO's continued evolution as a complete provider of investment solutions," he said.
"As RE, we will now have the platform to continue to innovate and deliver contemporary investment solutions in response to the changing needs of clients.
"Since December 2015, we have met with or presented to more than 6,500 advisers. In addition, 475 advisers have recommended PIMCO to their clients for the first time. We are very proud of these results, and they underscore our commitment to the Australian marketplace."
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