Clients withdrew about €30 billion ($37.3 billion) of assets from PIMCO funds in the days following Chief Investment Officer William H. Gross' departure on Sept. 26, said Dieter Wemmer, chief financial officer at parent company Allianz.
In the three months ended Sept. 30, clients withdrew a total of €49.2 billion from Pacific Investment Management Co., according to Allianz's financial update for the third quarter. “€30 billion of that happened over the last four days” of the quarter, Mr. Wemmer said in a conference call with journalists Friday. “That was after Bill Gross left the company. That had a significant impact on the company certainly, but that is something we had taken into account, that the outflows are absolutely in the frame of our expectations.”
Mr. Wemmer said the important thing to focus on was performance. “PIMCO's performance — that is what counts for the future development of such a company.”
He said 93% of PIMCO's assets under management had outperformed their benchmark on a three-year basis, compared with 89% in the three months ended June 30.
Allianz Global Investors, however, had net inflows of £1.8 billion.
Overall AUM for Allianz's money management unit — PIMCO and AllianzGI — increased 3.2% over the three months ended Sept. 30, to €1.87 trillion, and was up 5.1% from Sept. 30, 2013.
Revenue was €1.62 billion for the quarter ended Sept. 30, up 0.7% from the previous quarter, but down 2.6% from the quarter ended Sept. 30, 2013. Net income increased 4.5% over the three months ended Sept. 30, but decreased 6% from the year-earlier quarter.
It was also announced in an interim report accompanying the financial update that PIMCO has introduced a “special performance award” to “secure performance and to retain talents.”
The program is an enhancement to the regular year-end compensation process, the report said, and consists of deferred cash awards that will be granted in the fourth quarter, “earned and payable over 12 to 30 months.”