This brought net outflows to €35bn over the six months to end June, driven largely by continued redemptions from PIMCO’s US clients, which more than offset the strong inflows from Allianz Global Investors.
Despite this, however, total assets under management rose 4.4% 1,814bn as of the end of June 2014 on the back of solid investment performance, which outweighed the outflows.
Over the six month period, third-party assets under management grew 3.3% €1,373bn, the group said in its interim results.
According to Allianz, over the first half of the year: “Market effects contributed € 90bn to total assets under management, with € 72 bn at PIMCO and € 18bn at AllianzGI. These positive effects were partly offset by negative effects of €23bn.”
These negative effects were in part due to the allocation of certain entities to other business segments, the group explained, that resulted in a decrease of €33bn in assets under management.
“This was partially offset by a change in reporting to include third-party fund of fund assets under management,” it added.
According to Dieter Wemmer, the division performed within expectations, said Dieter Wemmer Allianz SE’s chief financial officer.
"With 3.2 billion euros, Allianz Global Investors recorded the highest quarterly third-party net inflows of its history, while outflows at PIMCO continued to slow. The key for future results is the investment performance, which is at a very high level: 89 percent of PIMCO’s assets under management outperformed their benchmarks on a three-year basis."
For the six months, operating revenue fell 11.5% to €1.6bn, driven mainly by lower average third-party AUM, the group said.
Net fee and commission income also fell by 11.5% on the back of lower management fees, and lower margins.
