Nicholas Applegate Capital Management, the $13.4bn (€10.6bn) asset manager owned by Allianz, is to give equity to its staff for the first time.

The introduction of employee ownership comes after Nicholas Applegate lost six quantitative managers from its most successful unit, Systematic, in March. The team, led by Stacey Nutt, has since set up its own quantitative asset manager, ClariVest. Joachim Faber, chief executive of Allianz Global Investors, told Financial News earlier this year that it was debating giving its member companies equity in their businesses. Allianz is introducing long-term incentive plans for all its asset management businesses, which, in addition to Nicholas Applegate, include equity manager RCM, Pimco and value manager NFJ Investment Group. The Nicholas Applegate plan is unlikely to be open to all employees. The company declined to disclose the plan's value. Horacio Valeiras, chief investment officer, said: "It's going to be a significant amount and something that will allow us to participate in the ownership of Nicholas Applegate. We need to have competitive compensation structures, otherwise it is too easy for people to go off and set up on their own." The plan is expected to offer shadow equity, in which staff get a deferred incentive, contingent on company performance.