PIMCO and Allianz are launching a new Australian retirement income business and recruiting 50 roles in distribution, technology, actuarial, legal, operations, compliance, marketing and customer experience.
The new business, Allianz Retire+ Powered by PIMCO (Allianz Retire+), follows more than two years of product research and development and represents Allianz and PIMCO's first-ever co-branded business venture.
PIMCO is also searching for a chief executive to lead the new business; in the interim, PIMCO head of Australia and New Zealand Adrian Stewart will fill the role. This position, along with the 50 roles mentioned above, will be based in Sydney.
Speaking to Financial Standard, Stewart said PIMCO was "very excited to be getting close to going live with the next generation of retirement income products."
He said that by bringing together the global expertise of Allianz and PIMCO, the new business is "very determined to innovate and bring to the market new retirement income solutions."
Stewart first flagged PIMCO's entrance into the Australian retirement income market in a profile interview with Financial Standard.
Over the past few years, he added, the local PIMCO business has met with 160 people across Allianz and PIMCO globally.
"It has been a real collaboration," he said, adding: "The collaboration harnesses the scale and technical experience of Allianz's 127 year-old global life insurance business, as well as PIMCO's global depth and expertise in investment management."
While Stewart clarified that ultimately PIMCO's primary objective is to create new retirement solutions for its clients, "it is a unique situation to have such a developed market as Australia and yet the retirement income environment is currently so monopolistic."
"As a natural consequence of entering this space, we will almost certainly be seen as a disruptor," he said.
He added that with $75 billion crossing the line each year from accumulation to decumulation, and 700 people retiring every day, the need for new retirement income solutions is more urgent than ever.