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MONEY MANAGEMENT

PIMCO inflows bolster Allianz assets under management in first quarter

Assets under management for insurer Allianz's money management businesses increased 2.4% for the quarter and 9.5% for the year ended March 31 to €1.75 trillion ($1.88 trillion), bolstered by net inflows to Pacific Investment Management Co.

Total third-party assets under management grew to €1.4 trillion, up 3.1% for the quarter and up 13% for the year, said parent company Allianz in a financial update Friday.

Third-party net inflows totaled €19.4 billion for the three months ended March 31, compared with €1.7 billion of net inflows for the previous quarter and €9.1 billion of net outflows for the quarter ended March 31, 2016.

The firm's money management unit comprises PIMCO and Allianz Global Investors.

PIMCO recorded net inflows of €20.9 billion for the quarter, up from €5.9 billion of net inflows for the three months ended Dec. 31. For the quarter ended March 31, 2016, net outflows totaled €10.1 billion. PIMCO's assets under management were €1.063 trillion as of March 31, up 2.6% compared with Dec. 31. Figures for March 31, 2016, were not available.

In a statement accompanying the update, Allianz said PIMCO net inflows were the strongest recorded since the first quarter of 2013.

“Third-party net inflows at PIMCO picked up speed due to PIMCO's strong outperformance in several investment strategies,” said Dieter Wemmer, chief financial officer at Allianz, in the statement. “This, combined with prudent cost management, helped drive a strong increase in operating profit in asset management in the quarter.”

Market movements added €25.8 billion to total assets in the quarter, and other factors added a further €6.5 billion. Foreign-exchange movements, however, detracted from assets under management by €9.9 billion for the quarter.

Allianz Global Investors' assets under management increased 4.3% over the quarter to €339 billion. However, the unit suffered net outflows of €1.5 billion for the quarter, following €4.2 billion of net outflows for the quarter ended Dec. 31. For the quarter ended March 31, 2016, net inflows were €1 billion.