Oct. 3, 2002 — Nicholas-Applegate Capital Management plans to lay off 49 employees, including 18 members of the investment management team.
The cuts represent about 15% of the company’s workforce, according to Rick Shaughnessy, the company’s spokesman.
While the spokesman would not comment on specific personnel moves, he noted that 14 of the 18 would comprise “investment analysts and portfolio managers.”
In connection with the reorganization, the company plans to merge the $17-million Nicholas-Applegate Global Technology Fund (NGTIX) and the $21-million Global Health Care Fund (NAGHX) into its Global Select Fund (NACHX).
Year to date through October 2, the Global Health Care fund has plunged 33.8%, while the Global Tech fund has plummeted 49.9%. The portfolios, geared to institutional investors, require investment minimums of $250,000.
In Calendar 1999, the Global Tech fund soared a dazzling 493.7%. Since then, it has incurred yearly losses. In 2000, the Global Health Care fund gained 137.7%.
The Global Health Care fund carries a 5-Star ranking from Standard & Poor’s. Both the Global Tech fund and the Global Select fund are ranked 3-Stars by Standard & Poor’s.
The Global Select fund is managed by Katherine Somhegyi Nicholas.
Further details were unavailable.