Pimco inflows remain strong amid active management demand

Allianz SE’s Oliver Baete said inflows at the insurer’s bond firm Pacific Investment Management Co. are continuing at a rapid pace as investors flock to active management.

Pimco had, as of mid-year, almost “50 billion in net inflows, and that has continued strongly in July and August,” Baete, the insurer’s chief executive officer, said in an interview from Berlin. “We’re very, very happy about the strong flows that are happening and they will continue.”

Pimco, one of the world’s biggest bond managers, has benefited from clients’ returning appetite for bonds. Pimco CEO Emmanuel Roman said last month that investors are adding to their fixed income exposure as imminent interest rate cuts create opportunities.

Baete said that investor uncertainty about the course of markets has fueled a resurgence of active asset management, which is a focus of Allianz. Apart from Pimco, the insurer also owns Allianz Global Investors.

“I think we’re running at above 50% net flows into active fund management,” he said. “That’s amazing.”

Allianz is scheduled to report third-quarter results on Nov. 13. Second-quarter earnings beat analysts’ estimates on stronger income from the life-health insurance and asset management businesses.

Baete also said that investors shouldn’t expect a big change in his acquisition policy when he unveils new targets at a capital markets day in December. In the nine years that he’s been in the role, Baete said he hasn’t seen a big takeover opportunity that would have made sense.

“Nothing changing on M&A,” he said. The December event will be mostly about using the strength of the Allianz brand to fuel customer growth, he added.