Allianz, a German financial services company, is feeling the heat from its shareholders over the poor performance of its fund management unit Pimco.
The shareholders claimed that they would publicly rap senior executives to sever its interest on firm’s management issues, according to Reuters.
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Allianz’s top ten stakeholders expressed concerns over the reported loss of billions of dollars in outflows from its flagship bond fund.
In addition, one of the stakeholders, fund manager Union Investment told the news agency that it would go public to offload its stake, citing the German insurer hasn’t taken any concrete steps to resurrect Pimco’s performance.
According to recent estimations by Allianz, the operating profit at asset management business is expected to drop to between 2.5bn and 2.9bn.
Meanwhile, few large Allianz investors are seeking the management structure at Pimco that was inducted after the departure of chief investment officer Mohamed El-Erian.
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By GlobalDataAllianz chief executive Michael Diekmann told Reuters that he is aware of shareholders’ concerns over Pimco’s performance and is likely to be girding himself for tough questions.
