So, Pimco [profile] has plucked Virginie Maisonneuve from Schroders [profile] to serve as the bond giant's new equities czar.

What options does she have to grow a business arm that has yet to establish itself?

First, some insights regarding Maisonneuve herself.

Bridget Hughes, associate director of fund analysis with Morningstar, said that "it is interesting that Pimco specifically notes her business building abilities, that leads me to believe that this function is very much a strategic priority. They have been wanting for a while to move out from just being known for bonds."

Hughes had this to say on Pimco's ongoing efforts in the space:

This is a rejuvenated effort to keep that business going. They have been doing a couple of things. They have obviously launched a few more equity and allocation funds.

I think it is ambitious. There are just so many well established equity shops. I think they have the checkbook for it. They can make it appealing for a seasoned investor to come to Pimco. So far, they have been very careful.

There are a lot of good reasons for Pimco to expand into equities, she said. It helps diversify the company's assets as short-term bonds continue to wobble in the face of interest rate uncertainty and bearishness.

Hughes notes that Pimco has "plucked out a few teams to come to the firm." She says that "it shouldn't be too difficult for them to attract talent. There is a slight perceived risk for any equities professionals going to a culture steeped in fixed income. While that [being a fixed income powerhouse] can be made into a great resource, this is what butters their bread. I guess for some equity managers, that may be something to think about."

When asked about the ability to buy equity operations, Hughes said that Pimco "could afford it." However, she said, the path Bill Gross and Mohamed El-Erian have taken so far is to pluck out teams from different organizations and bring them in-house without any assets.

Hughes also noted that Maisonneuve, whose experience in primarily in global equities, will remain in London. She believed that was an important sign of the importance Pimco will place on the international space.

As for time frames, Hudges said not to expect any sudden moves from Maisonneuve. She noted that Maisonneuve's predecessor, former TAPR czar Neel Kashkari, devoted much of his first year to just getting to learn the organization.

"I think they will give her time," she said.  

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