The asset management division of Allianz has posted an operating revenues EUR1.52 billion for the first quarter of fiscal 2014, a decrease of 18.9% from EUR1.87 billion in the year ago period after the transfer of certain entities to other business segments as of 1 January 2014.
The first quarter of the previous year had exceptionally high performance fees as the result of the closure of a private fund.
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The division’s operating profit reached EUR646 million for the quarter, a decline of 26.3% from EUR877 million in the first quarter of 2013, after the transfer of entities to other business segments.
This reduction stemmed from one-off performance fees in the first quarter of the previous year and the weakening of the US-dollar. The non-recurrence of these performance fees increased the cost-income ratio to 57.4% from 53.1%, the company said.
Total assets under management rose 1.6% to EUR1.76 trillion at the end of the first quarter of 2014 from EUR1.74 trillion at the start of 2014.
Over the same period, the division’s third-party assets under management grew 1% percent to EUR1.34 trillion from EUR1.33 trillion.
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By GlobalDataThe company in a statement said that the development in assets under management was supported by market value increases, which outweighed third-party net outflows of EUR19.8 billion in the first quarter of 2014, compared to net inflows of EUR41.8 billion in the previous year’s first quarter.
While PIMCO recorded net outflows of EUR21.7 billion from January to March of 2014, AllianzGI saw net inflows over the same period of EUR1.9 billion.
Dieter Wemmer, CFO of Allianz, said: "As expected, the results in asset management came in lower, but the business is in line with our target for the year. Given its solid performance and the outperformance of both of our insurance segments, we remain on track to achieve our operating profit outlook for the full year of EUR10 billion, plus/minus EUR500 million."
