PIMCO continued to see net outflows in the quarter ended June 30, reporting €18 billion ($19.7 billion), but the chief financial officer of parent Allianz SE stuck to projections Friday that he made last quarter that the company can stop outflows in the second half of 2016.
“If we keep bringing outflows in the right direction, getting to zero is within reach," CFO Dieter Wemmer said on a conference call on Allianz's latest earnings statement.
The second-quarter outflows were up from €10 billion in net outflows in the previous three months but down from €29 billion in the year-earlier quarter.
Mr. Wemmer said a €17 billion withdrawal in the quarter was from a single European institutional client, whom he declined to identify.
Allianz SE's other money manager, Allianz Global Investors, saw net outflows of €1 billion, which officials blamed on investors pulling money because of volatile equity markets.
Overall, Allianz Asset Management reported total third-party assets under management of €1.307 trillion as June 30, up 5% from the previous three months. Total assets under management were €1.83 trillion as of June 30. Assets managed internally by Allianz Asset Management for Allianz SE amounted to €524 billion, up 4.6% from the previous three months.
PIMCO's third-party assets increased to €995 billion as of June 30, up 3.2% from the previous quarter as market gains from the bond market and profits from foreign-exchange transactions compensated for the outflows. PIMCO reported $1.5 trillion in total assets as of June 30.
The first-time consolidation of Rogge Global Partners, which Allianz Global Investors agreed to buy in February, brought AUM at AllianzGI to €311 billion as of June 30, up 11.4% from three months earlier.
Allianz Asset Management, which includes PIMCO and Allianz Global Investors, reported €498 million in operating profit in the quarter, up 8% from the previous three months and up 1.4% year-over-year.
Separately, Pacific Investment Management Co. reported on its website that net outflows in its flagship Total Return Fund were $200 million in July. Total assets were $86.8 billion, as of July 31.
Morningstar Inc. data shows the fund had seen more than $7 billion in net outflows in the first six months of 2016 and more than $200 billion since 2013 when performance issues and the subsequent resignation of its portfolio manager and PIMCO co-founder William H. Gross caused massive redemptions.