UK - Allianz Dresdner Asset Management says it has formed a single manager hedge fund division in a bid to boost its alternative investment business.

The company said in news release that it has appointed Scott Nelson as executive vice president and head of its newly formed single member hedge fund group. Nelson was previously head of a similar unit at American Express Asset management.

“This announcement reinforces Allianz’s commitment to building a robust alternative investment business,” the company said. Allianz Dresdner is part of troubled Munich-based financial services group Allianz.

Allianz Dresdner Asset Management has 1,100.8 billion euros under management.

It added that the creation of the new unit follows on from the formation of Allianz Hedge Fund Partners earlier in the year. That unit is headed by Madhav Misra.

Says Nelson: “The opportunity to build a hedge fund business with the resources of Allianz and the talent and proven asset management capabilities within each of the five distinct investment platforms is unique and exciting.”

The new group will team up with five other Allianz subsidiaries - PIMCO, Nicholas Applegate, Dresdner RCM, Oppenheimier Capital and NFJ - to market existing products.

Allianz last week reported a third-quarter net loss of 2.5 billion euros.