The asset management business of insurance giant Allianz, which includes both Allianz Global Investors and Pimco, recorded an 11.5 per cent decline in operating revenues in the second quarter of 2014, equivalent to €1.61bn (£1.28bn) compared with the same period in 2013.
Quarterly figures from parent company Allianz showed the operating profit for the asset management arm, which has operations worldwide, also declined 16 per cent in the three months, with the company noting this included “the negative impact of a transfer of entities to other business segments and unfavourable foreign exchange effects”.
In spite of the decline in revenues and profits, Allianz stated total assets under management for the business segment increased 4.4 per cent to €1.8trn, while third-party assets rose 3.3 per cent to €1.4trn.
Allianz attributed the increase in assets to support from market value increases that offset the third-party net outflows of €17.2bn, which compared to net third-party inflows of €6bn in the same period in 2013. The results showed while Allianz Global Investors recorded net inflows of €3.2bn in the quarter, Pimco saw net outflows of €20.4bn.
In spite of the figures, Dieter Wemmer, chief financial officer of Allianz, stated that the asset management business had “performed within expectations”.
He added: “With €3.2 billion, Allianz Global Investors recorded the highest quarterly third-party net inflows of its history, while outflows at Pimco continued to slow. The key for future results is the investment performance, which is at a very high level: 89 per cent of Pimco’s assets under management outperformed their benchmarks on a three-year basis.”
