Short takes: PNC Plans to Expand Municipal Bond Group

PNC Bank Corp. announced it will expand its municipal bond department for wealthy investors.

PNC Advisors, the Pittsburgh banking company's division for private clients, plans to assemble a team of 10 analysts, traders, and portfolio managers by next year, said Stephen P. Winterstein, vice president and managing director.

The second team member, Robert F. Collins, is a vice president and portfolio manager. He joined PNC Advisors on May 17 from Wilmington Trust Corp., where he was a lead portfolio manager on a team that managed municipal bond investments for the proprietary Rodney Square mutual funds and separate accounts.

The Philadelphia-based municipal bond department manages $500 million of assets in customized municipal bond portfolios with a minimum investment of $2 million and average account size of nearly $10 million. Mr. Winterstein said PNC seeks to manage $1 billion for wealthy clients in municipal bonds over the next two years.

The new team will promote investments across the $1.4 trillion municipal bond market, but will accommodate clients that want state-specific accounts, especially those who request bonds issued in New York and California, which each represent 10% of the market, Mr. Winterstein said.

"If there's an economic microcosm they choose to invest in, you can expose your portfolio to undue risk," he said.

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