Pacific Investment Management Co. is setting up a team of about 15 people in Rio de Janeiro as Brazil’s record-low interest rates boost demand for global investment products.
PIMCO’s first Latin American office will have credit research, business development and client servicing teams through new hires and relocations, said Alec Kersman, a senior vice president and head of Latin America and Caribbean operations.
PIMCO, which has 13 offices worldwide, expects to set up the 15-person team within its first year of operation, he said.
“We are planning to relocate some of the members of our team from New York to Rio as well as hire additional people locally,” Mr. Kersman said by e-mail. “We have already made a handful of strategic hires and are currently looking to add resources to our local credit research team.”
Since August 2011, Brazilian policymakers have cut the benchmark Selic rate 500 basis points to 7.5%, extended tax cuts for consumers and pressured banks to lower lending costs to revive the economy, which analysts forecast will expand this year at the slowest pace among major emerging markets.
Lower credit costs are boosting interest by investors for global products, Mr. Kersman said. The local operations will help PIMCO serve those customers, including corporations and insurance companies, he said.
PIMCO expects to finish construction of its permanent Rio office in late November, Mr. Kersman said. He declined to give details on PIMCO’s Brazilian assets under management, saying only that they are in the billions of dollars.
