Allianz Global Investors has a competitive advantage over its rivals despite a 31.6% decline in operating profit in 2008 because of the strength of its parent, Allianz SE, executives at Allianz Global said today at a London news conference.
The profitability of the asset management industry, when you look broadly, is under severe threat, said Joachim Faber, Allianz Global CEO, but the firms diversification and independent investment manager business model provides an organizational stability that will allow us to emerge stronger through this difficult environment than we came in.
AGIs 2008 operating profit fell 31.6% to €904 million ($1.14 billion), the result of costs at €53 million and shrinking revenue of €365 million, primarily because of lower performance fees.
Its fixed-income strategy saw inflows of €10.3 billion for the year; equity outflows were €10.6 billion for the year.
Total assets under management fell 5.2% to €920 billion, while third-party AUM fell 7.2% to €672 billion as of Dec. 31.
Mohamed El-Erian, CEO and co-CIO of Allianz subsidiary PIMCO, said damage to the real economy will continue through the end of the year.
Every industrialized country, in our estimation, will register negative growth in 2009, he said. The question is not what 2009 looks like, the question is what 2010 looks like.