Pimco CEO Doesn't Expect Many Mergers, Says They're Too Hard to Do Via Zoom

The transcript discusses the differences in merger scales between large firms and PIMCO, emphasizing PIMCO's focus on organic growth and strong company culture. It highlights the significant investment in technology and its impact on smaller asset managers, who may consider merging for synergies. The challenges of conducting mergers via modern media, like Zoom, are also discussed, stressing the importance of face-to-face interactions.

What is PIMCO's approach towards growth in the fund management industry?

• Aggressive large-scale acquisitions

• Focus on organic growth with small acquisitions

• Complete avoidance of acquisitions

• Rapid expansion into new markets

Why does PIMCO prefer adding people over acquiring companies?

• It reduces regulatory hurdles

• It allows for faster expansion

• It helps maintain a strong investment culture

• It is more cost-effective

What is a significant challenge of conducting mergers over virtual platforms like Zoom?

• Increased costs

• Difficulty in building trust and rapport

• Lack of technological infrastructure

• Limited access to financial data

What is necessary for successful mergers according to the speaker?

• Face-to-face meetings

• Advanced technology

• Large financial reserves

• Strong legal teams

What might smaller asset managers consider due to the size of tech investments?

• Expanding their tech teams

• Remaining independent

• Outsourcing tech needs

• Merging for synergies