Assets under management at Allianz's money management arm decreased 3.8% to €1.8 trillion ($2 trillion) in the quarter ended Dec. 31, but were up 1.8% for the year, despite continued outflows following former PIMCO Chief Investment Officer William H. Gross' September departure.
Net outflows peaked after Mr. Gross left the firm Sept. 26, Allianz said in a statement accompanying the year-end results.
Outflows from Pacific Investment Management Co. funds were €144.8 billion in the three months ended Dec. 31, up from €49 billion in the three months ended Sept. 30. Total net outflows for PIMCO were €236 billion for the year ended Dec. 31, compared with net outflows of €19.7 billion for the prior year.
Allianz Global Investors, however, recorded net inflows of €10.4 billion for 2014, compared with €4.6 billion of net inflows in 2013.
Net outflows of €226 billion at Allianz were largely offset by strong market returns and favorable foreign-exchange effects, the statement said.
Operating profit dropped 17.6% to €2.6 billion for the year, driven by lower average AUM, and high non-recurring performance fees from one private fund in 2013, Allianz said.
“After weekly net outflows at PIMCO peaked around the end of the third quarter of 2014, we saw a clear trend of receding outflows that has continued in 2015,” said Dieter Wemmer, Allianz chief financial officer, in the statement. “PIMCO's strong and stable investment management team and their continued excellent investment performance will be the basis for further stabilization in 2015.”