Assets under management at Allianz's money management arm increased 7.3% to €1.9 trillion ($2.1 trillion) for the three months ended March 31, and increased 9.5% from March 31, 2014, despite continued net outflows at PIMCO.
Net outflows at Pacific Investment Management Co. totaled €68.3 billion in the first quarter, said a financial update, but declined month-to-month. Allianz Global Investors, however, recorded third-party net inflows of €6.2 billion over the same period. Total net outflows across the money management business were €62.1 billion in the three months ended March 31, although total third-party assets under management grew 7.2% to €1.4 trillion.
“Net outflows from third-party AUM amounted to €62 billion strongly driven by PIMCO in the United States, primarily from traditional fixed-income products,” the financial update said.
PIMCO net outflows followed €236 billion of total net outflows for the year ended Dec. 31, with the majority occurring after the departure of William H. Gross, former chief investment officer, on Sept. 26.
The increase in assets under management was attributed to market appreciation and beneficial currency effects. The regional allocation of third-party assets under management shifted in favor of Europe, “mainly due to foreign currency translation effects at PIMCO in the United Kingdom as well as market effects.” Net outflows at PIMCO were more than offset by an increase in market return “and — especially in the United States — by the appreciation of the U.S. dollar,” the update said.
“With the slowing of outflows from PIMCO, along with PIMCO's excellent three-year investment performance and the ninth consecutive quarter of third-party net inflows at AllianzGI, we are positive about the further development of our asset management segment,” said Dieter Wemmer, Allianz chief financial officer, in the update.
Operating revenues across the money management business increased 3.7% to €1.6 billion over the three months ended March 31, while operating profit decreased 14% to €555 million.
