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Wednesday, June 23, 1999|
PIMCO Leaves Columbus Circle Partnership
Once they were partners. Now they are going their separate ways. Newport Beach, California-based PIMCO Advisors has decided to withdraw from its partnership in Columbus Circle Investors. Thus, the current management team at Columbus Circle will be the sole owners in the firm. The final stage in this process will be gaining approval of Columbus Circle's clients. Both companies expect this move will be completed by June 30, 1999.
Nonetheless, PIMCO will continue to receive revenue in quarterly payments for an undisclosed period of time. This means that the payments should approximate PIMCO's current share of profits. According to company statistics, Columbus Circle manages approximately $4.5 billion in assets of the $248 million of PIMCO's assets under management.
In a related move, assuming that the aforementioned transaction is successful, Columbus Circle Trust Company, a subsidiary of Columbus Circle, will transfer to PIMCO.
"Basically, our service for TPA's in the 401(k) market remains unaffected," Matthew Russell, senior vice president on the trust side, told InvestmentWires. "Before we were the sub of a sub, now we are just a sub."
"Our product and our relationships with our customers will be unchanged," Russell reported. "We will be rolling out a 403(b) and an IRA product. Really, our service is a link to anything related to mutual funds. We are always expanding and growing. We have signed on approximately 35 TPA's so far. We do about 400 trades a day. We are now going to ramp up to the next level."
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