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.