One of the largest US fixed in-come managers, PIMCO is boosting its European presence as a result of Emu. We are developing our London office on a phased basis to meet the opportunity of the euro," says William Cvengros, chief executive of PIMCO Advisors.

The manager set up its European marketing operations recently and aims to have a "research and execution capability" here next year. "As-suming things progress, we would then bring over portfolio management and take discretionary and judgemental decisions in London." This could happen in 2000 and it would be the first time that portfolio management was undertaken outside the US by PIMCO. He says: "There is going to be a huge opportunity to apply leading edge bond management techniques in Europe."

German and French managers are good with their own markets but lack experience in a market the size of the new pan-euro, Cvengos reckons. "We have been rated by international consultants as being top of the heap for our euro bond capabilities, on the strength of our global bond management, even though the bell has not rung yet.""