Fixed Income  

Pimco reports net outflows of €49.2bn in third quarter

Allianz SE the parent company of both Allianz Global Investors and Pimco has reported net outflows for Pimco in the third quarter of €42.9bn (£33.6bn) following the departure of Bill Gross.

In its quarterly results it noted its asset management segment as a whole saw a 2.6 per cent decline in operating revenues to €1.62bn, although total assets under management reached €1.87trn up from €1.74trn at the start of 2014, as “strong market movements and favourable currency effects have overcompensated the net outflows”.

The company added, however, that net outflows at Pimco amounted to €49.2bn in the third quarter of 2014, as it noted “a substantial majority of these outflows occurred in the last week of September following the change in investment management leadership”.

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In spite of this it stated the Pimco Total Return fund assets were $170.9bn (£108bn) as of October 31 2014, meaning it remains the largest actively managed bond fund in the world.

It stated: “Outflows from the Total Return fund slowed considerably during the month of October, to approximately $27.5bn. Nearly half of these outflows occurred in the first five trading days of October.”

Dieter Wemmer, chief financial officer of Allianz SE, stated: “Net outflow development after the resignation of Bill Gross is within our expectation. Investment performance increased to 93 per cent of Pimco’s assets under management outperforming their benchmark on a three-year basis compared to 89 per cent in the previous quarter.”

Meanwhile Allianz Global Investors recorded operating profit of €110m, exceeding the €100m barrier for the first time since implementation of the new structure for asset management in January 2012.