Pimco hit by €22bn outflows as poor fees add to limp numbers
THE WORLD’S biggest bond manager, Pimco, continued to see investors pull billions of dollars of cash from its funds last month, hitting its German owner Allianz.
The California-based outfit, headed by bond guru Bill Gross, saw €22bn (£18bn) walk out the door between January and March.
Although high, this was lower than the €29bn pulled in the third quarter and €36bn in the fourth quarter of last year.
The outflows were revealed in quarterly results yesterday and chimed with results released last week by Allianz indicating a 3.9 per cent fall in income.
Pimco’s troubles, which have been exacerbated by the departure of its former chief executive Mohamed El-Erian, helped sliced into Allianz’s fees and profits.
Asset management operating profit plummeted to €646m, down from €900m in the same quarter last year.
Fees generated from Pimco’s fund performance were also toppled, falling by 96 per cent.