NEWPORT BEACH, Calif., Jan. 14, 2000 (PRIMEZONE)-- PIMCO Advisors Holdings L.P. (NYSE:PA) announced today that it expects net earnings for the fourth quarter of 1999 to be well below the previous quarter's $0.42 per unit, and perhaps as low as $0.33 per unit.
As previously announced, Allianz A.G. plans to acquire majority ownership of PIMCO Advisors, including all of the interests held by PIMCO Advisors Holdings L.P. The Company incurred significant costs in the fourth quarter in connection with the transaction, and expects to incur substantial additional costs in the first quarter of 2000.
The continued net outflows of managed assets at Oppenheimer Capital during the fourth quarter of 1999 resulted in a significant decline in its revenues and net earnings. In addition, the Company expects substantially lower than anticipated performance fees at Pacific Investment Management Company.
The Company will announce fourth quarter earnings on January 26, 2000.
PIMCO Advisors is one of the largest investment management companies in the United States with over $256 billion of assets under management. Its investment advisor subsidiaries, led by Pacific Investment Management Company and Oppenheimer Capital, are widely recognized for consistently posting attractive performance and providing high quality service to more than 1,600 institutional clients worldwide, including one-third of the nation's largest 100 corporations. In addition, PIMCO Advisors manages a family of 54 stock and bond mutual funds available to both retail and institutional investors.
Except for the historical information and discussions contained herein, statements contained in this news release constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO Advisors L.P.'s sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. PIMCO Advisors Holdings L.P. cautions readers to carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO Advisors Holdings L.P. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.