Mr. Dilworth, Allianz Global Investors and PIMCO have been operating for a year now as independent entities under the Allianz umbrella. How would you evaluate this past year?
James Dilworth: It has been an exciting year for Allianz Global Investors. The unexpected year-end rally meant that 2012 ended in a state of semi-euphoria. This wasn't foreseeable when the year began, and investors remained cautious for all the months in between. This sent an extremely clear message, which was that many of them had lost confidence. According to the investment statistics recently published by the German funds association BVI, only a few investment companies recorded asset inflows last year. That is extremely concerning, and remains our foremost challenge.
In its first year as a separate entity Allianz Global Investors did have asset inflows. And you are ranked second in the industry. What does that mean to you?
We are of course very proud of that ranking, especially when we consider the challenging climate at present. We are keenly aware that our clients are investing in the most important and most valuable of all assets, and that is "trust". Doing justice to this confidence is our common objective and top motivation. I am convinced that our business model puts us in the best possible position to do this. And I am of course delighted that in only our first year of business we have been able to make a contribution to the sensational overall result of Allianz, thus confirming that the two-pillar strategy is the right decision.
What business model does Allianz Global Investors believe in?
Allianz Global Investors believes in conducting a detailed research process for all its products. Every share, every bond, every security is investigated in detail before it is bought. Rather than simply focussing on the markets, which are always likely to present us with surprises, we look at a very early stage for products which have enduring values not related to the market, and which can grow in the long term. With this approach we obviously cannot aspire for all our funds to constantly occupy the top places in boom periods. What we want to do instead is offer products which consistently and reliably hold their own even when times are hard.
Allianz Global Investors is known to the market more as a share specialist than a bond specialist. Have you found that to be a disadvantage?
We are amazed at how quickly our clients here in Germany have accepted the new concept and changed their perception of us. It is the clients who decide which investment company they trust – regardless of asset class. The level of investment in our products shows that bonds did indeed play an important role last year. And it also shows that with our globally active bond team we are able to offer contemporary and future-oriented products which match the requirements of our investors. Also, in the current low interest rate environment, selection based on comprehensive research as well as appropriate diversification across all asset classes is crucial for long-term investment success.
Where do you see the most potential for the future?
I think it is the Allianz Global Investors team which offers the greatest potential for the future. Although twelve months ago the employees working for the different company brands had similar objectives, they weren't yet all consistently pulling in the same direction, as they are now. Our first successes and positive ranking in comparison to our competitors are proof of how strong that common commitment can make us. And we are still far from harnessing that strength in its entirety.
