icholas-Applegate is cutting 49 of its 328 positions and merging two funds as part of a restructuring, the San Diego-based firm said today. The reduction includes six employees from the firm's sales and marketing team and 18 from its investment staff.
The Nicholas-Applegate Global Technology Fund and Global Health Care Fund are to be merged into the Global Select Fund, pending shareholder approval.
The San Diego-based money manager is owned by Germany's Allianz AG. The firm largely exited the retail marketing and distribution side of the fund business in 1999, prior to its sale to Allianz
in October of 2000. That business was acquired by what is now ING Funds
After the two funds are merged, Nicholas-Applegate
will continue to advise 14 institutional mutual funds.
"Our restructuring is designed to ensure that we continue to meet client, employee and company needs through superior investment products and focused, efficient business operations," said Marna C. Whittington
, president and chief executive officer. "It will help us maintain financial strength and continue investing in the intellectual capital that fuels the superior products and services that investors require."
A company spokesperson confirmed that assets under management at the firm have slid to $20 billion from a peak of $50 billion in 2000.
"Our goal is to become more focused," the spokesperson added. "To evolve a better structure, improve investment performance and become more efficient, which reflects the changed market environment."
None of the sales and marketing staff positions being eliminated are at the partner level, the spokesperson said, although some senior partners will be affected in other parts of the firm. He also said the restructuring is firmwide and includes just about every department.
The job cuts are effective October 15 to April 30 of 2003.
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