Soon, Pimco will again stand for just bonds. The Allianz, the parent of Pimco Funds, is set to announce a new name for its asset management arm today. As part of the rebranding, the German firm will reserve the Pimco brand for the bond fund manager based in Newport Beach. The Pimco name had been extended to equity funds operated by other offices that subsequently were tied to the hedge fund market-timing scandals.
Bill Gross, the chief investment officer of the bond shop, had been pushing for the separation of the Pimco brand for the bond funds, reports the Los Angeles Times
. The equity and bond funds had both used the Pimco name since soon after Allianz purchased the U.S. asset manager in 2000.
Allianz will remove the Pimco name from non-bond Pimco PEA funds in the first quarter of next year.
Also changing will be the Allianz Dresdner Asset Management moniker under which the insurer now operates it asset management business. The new name will reportedly be Allianz Global Investors, according to Joachim Faber, head of the U.S. asset management business.
Faber told the paper that the rebranding of the firm's equity funds under Pimco had been a mistake and that the change "is something we should have done earlier." He explained that Allianz had hoped to gain greater exposure for the equity funds when they were branded under Pimco PEA.
Gross told the paper that he is pleased by the move to remove the Pimco brand from the stock funds.
"Brand confusion doesn't help investors, employees or anyone else," Gross told the L.A. Times. "We're glad to have the Pimco name associated only with the products we lead."
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