External clients of Pacific Investment Management pulled money for a second straight quarter amid a global bond sell-off.
Investors withdrew €28.7 billion ($29.4bn) from Pimco in the three months through June, parent Allianz said on Friday, adding to the first outflows since the onset of the pandemic earlier this year. Allianz operating profit rose in the second quarter, driven by the German company’s property-casualty insurance business.
Allianz counts on its asset management units to diversify its business beyond insurance, while Pimco is facing headwinds as investors fled fixed-income securities after high inflation prompted interest rate increases, making existing bonds less attractive.
The outflows continued into the second quarter, Allianz chief financial officer Giulio Terzariol said in an interview on Bloomberg Television. Once the interest rate situation “is going to stabilise, all those outflows are going to become inflows”, he added.
Analysts at Citigroup said Pimco outflows were significantly higher than expected, while analysts at Jefferies wrote their enthusiasm was dampened by lower assets under management and other factors.
Pimco’s total third-party assets dropped to €1.39 trillion in the second quarter considering market and currency moves, compared to €1.45tn at the end of March.
“Pimco is in the eye of the [US Federal Reserve] hike storm and will likely be a much smaller company when all is said and done,” said Bloomberg analyst Eric Balchunas. “Although it could be worse, as some of its funds are outperforming, which could help down the road if and when investors come back.”
Allianz operating profit rose more than expected to €3.5bn in the second quarter, compared to €3.3bn a year earlier. The property-casualty insurance business profited from improved underwriting and investment results, while earnings in the life insurance and asset management segments were weighing on overall profit.
The company confirmed its 2022 operating profit target at €13.4bn, plus or minus €1bn.
analyst at Bloomberg
Mr Terzariol said Allianz might consider another share buyback over the next six to 12 months.
“At this moment, buybacks might even be a better idea as opposed to M&A,” he said.
The bonds sell-off was not the only challenge Allianz chief executive Oliver Baete had to deal with in asset management this year. A unit of Allianz Global Investors agreed to pay $5.8bn after misrepresenting the risk posed by some of its hedge funds that collapsed amid pandemic market turmoil. In a deal with regulators, the company agreed to transfer most of the AGI US business to Voya Financial.
Allianz will eventually also take a hit of about €400 million to profit from the sale of a majority in its Russian operations, part of a retreat from the country due to the war Ukraine, it said earlier.
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Company%20profile
World%20Food%20Day%20
Tomorrow 2021
While you're here
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part three: the age of the electric vehicle begins
Read part two: how climate change drove the race for an alternative
Read part one: how cars came to the UAE
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Family reunited
Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.
She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.
She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.
The couple were married in August 2009 in Winchester and their daughter was born in June 2014.
She was held in her native country a year later.
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
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The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
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Matthew Levitt: Iran retains its ability to launch terror attacks
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While you're here
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What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
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E-cigarettes report
Our commentary on Brexit
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Specs
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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Bib%20Gourmand%20restaurants
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Plastic tipping point
Zayed Sustainability Prize
Our commentary on Brexit
- Alistair Burt: Despite Brexit, Britain can remain a world power
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Buy farm-fresh food
The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.
In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others.
In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food.
In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra.
Company Profile
Company name: Fine Diner
Started: March, 2020
Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka
Based: Dubai
Industry: Technology and food delivery
Initial investment: Dh75,000
Investor: Dtec Startupbootcamp
Future plan: Looking to raise $400,000
Total sales: Over 1,000 deliveries in three months
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Mountain%20Boy
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HOSTS
T20 WORLD CUP
2024: US and West Indies; 2026: India and Sri Lanka; 2028: Australia and New Zealand; 2030: England, Ireland and Scotland
ODI WORLD CUP
2027: South Africa, Zimbabwe and Namibia; 2031: India and
Bangladesh
CHAMPIONS TROPHY
2025: Pakistan; 2029: India
INDIA SQUAD
Virat Kohli (capt), Rohit Sharma, Shikhar Dhawan, KL Rahul, Vijay Shankar, MS Dhoni (wk), Kedar Jadhav, Dinesh Karthik, Yuzvendra Chahal, Kuldeep Yadav, Bhuvneshwar Kumar, Jasprit Bumrah, Hardik Pandya, Ravindra Jadeja, Mohammed Shami
FIGHT%20CARD
Mohammed bin Zayed Majlis
Tomorrow 2021
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
The%20Caine%20Mutiny%20Court-Martial%20
Charlotte Gainsbourg
Rest
(Because Music)
The chef's advice
Troy Payne, head chef at Abu Dhabi’s newest healthy eatery Sanderson’s in Al Seef Resort & Spa, says singles need to change their mindset about how they approach the supermarket.
“They feel like they can’t buy one cucumber,” he says. “But I can walk into a shop – I feed two people at home – and I’ll walk into a shop and I buy one cucumber, I’ll buy one onion.”
Mr Payne asks for the sticker to be placed directly on each item, rather than face the temptation of filling one of the two-kilogram capacity plastic bags on offer.
The chef also advises singletons not get too hung up on “organic”, particularly high-priced varieties that have been flown in from far-flung locales. Local produce is often grown sustainably, and far cheaper, he says.
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• Round up: Experts share their visions of the world to come
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COMPANY%20PROFILE
The%C2%A0specs%20
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Transgender report
Mobile phone packages comparison
Dhadak
Director: Shashank Khaitan
Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana
Stars: 3
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While you're here
UAE%20SQUAD
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• The National announces Future of News journalism competition
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War on waste
While you're here
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Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The five pillars of Islam
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2.
3.
4.
5.
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