Allianz Global Investors profit falls despite asset inflows
Allianz Global Investors, one of Europe's largest asset managers, said its operating profit had fallen 13% in the three months to the end of June compared with the same period last year, despite net inflows of assets amounting to €33bn ($51bn).
The company, a subsidiary of German insurance company Allianz, said its operating profit had fallen almost 13% from €314m in the second quarter of 2007 to €274m this year. Revenues fell 7% to €725m, largely due to the effect of earning fees in dollars but reporting them in euros over a period when the euro was strengthening against the dollar.
Revenue was also lower because of reduced management fees, which in turn was due to a reduction in third party assets under management, also due mainly to unfavourable exchange movements.
Third party assets under management fell from €765bn at the start of the year to €740bn at the end of June. This followed net inflows of €37bn in its bond business, primarily run by US asset manager Pimco, and net outflows of €4bn in its equity business, comprising US asset manager RCM and other, much smaller subsidiaries; and the adverse effect of foreign exchange movements and falls in market values.
Net income, the post-tax profit attributable to shareholders, fell almost 10% from €126m in the second quarter of 2007 to €114m in the second quarter of this year.
-- Write to William Hutchings at whutchings@efinancialnews.com
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