Pimco's Step Toward Independence from Allianz

Pacific Investment Management Co (PIMCO) may be seeking more independence from its parent, German insurer Allianz. Pimco, the largest US asset manager owned by a bank or insurance company, is waiting for regulatory approval to open a broker-dealer to sell its funds in the US, says Douglas Hodge, COO of the Newport Beach, CA, money manager. The firm has designated 170 salespeople from Allianz to staff the new unit, to be called Pimco Investments. Much of the firm's growth has been fueled by Pimco Total Return, managed by Bill Gross, which is the world's largest mutual fund, with assets of $240 billion. Pimco's relationship with Allianz will not change as a result of the new distribution arrangement, Hodge says.