Pacific Investment Management Co.’s wealth-management business in Asia has grown this year at the fastest pace since 2018, bolstered by rising demand for fixed-income funds.
Assets for Asia ex-Japan rose 20% as of August from the end of last year, said Marcio Bogoricin, Pimco’s executive vice president. The firm’s Asia-Pacific total assets under management have now reached about $60 billion.
Rising interest rates are driving more investors into fixed income for stable yield, a departure from the days when many Asia clients chased aggressive returns. The company is also seeing the wealthy allocate more money to private credit.
“A high-quality portfolio of fixed income today can get you around 7% yield, that’s very attractive,” Bogoricin said in an interview in Singapore. “Asian clients more broadly have been looking for more stable investments given a lot of volatility we’ve seen in markets over the last 18 months.”
Newport Beach, California-based Pimco is focused on creating active fixed-income investment products in both public and private markets, managing almost $1.8 trillion in assets.
Last year, Pimco began selling two private lending funds in Asia, underpinned by a mixture of public and private credit in the form of mortgages, corporate debt and special financing such as aviation or auto asset-backed lending.
Pimco’s Singapore wealth team has grown by about 30% in three years, and the firm has been hiring for other offices including Hong Kong, Taiwan and mainland China. The company declined to disclose specific staff numbers.
Family offices in the area are also interested in investing more into hedge funds, Bogoricin said.
In China, Pimco has a wholly-owned enterprise that can sell to qualified investors. It’s offered two funds — one hedge fund and a semi-liquid credit fund. They target annualized returns of 8% to 12%.
The Asia wealth operation, which was started around 2014, distributes its funds through private banks and retail lenders and also works with online platforms like Endowus Pte and Syfe Pte.
Asian bonds have outperformed global peers, as rising interest rates in the US and Europe erode prices. An index of aggregate Asian debt has gained 5.3% this year, compared with a similar US gauge that’s up just 0.41%, according to data compiled by Bloomberg.
Private bank clients contribute about two thirds of assets in Asia ex-Japan. Pimco has customers in 14 Asia markets and offices in Singapore, Hong Kong, Australia, Japan, mainland China and Taiwan.
