Fixed income specialist PIMCO Europe has bagged two new specialist investment grade US bond portfolios worth a total of EUR300m from the pension fund for Italy's largest banking foundation, Fondazione Monte dei Paschi di Siena (MPS).
The mandates - a US dollar short-term fixed income brief and a US core bond portfolio - were won in partnership with Italian insurance and asset management house, RAS - part of the German Allianz Group - which in 1999 acquired 70% of PIMCO. This is the first time that PIMCO has teamed up with its Italian affiliate.
Appointing managers without a stable presence in Italy requires a special authorisation from watchdog Consob, so the mandate was formally awarded to RAS and outsourced to PIMCO.
Joe McDevitt, head of PIMCO Europe said: Without local presence, it is difficult to enter the Italian market. Our affiliation with RAS really does provide us with the perfect solution.
The Italian market represents a great opportunity for us as Italian foundations are increasingly using global consultants in order to get a better understanding of the strengths of international asset managers.
No advisors were used for the move.
By Madhu Kalia
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