Highlights for 2006 include:
- Operating profits rose by 14 percent to 1.28 billion euros (2005: 1.12 billion)
- Net inflows into third-party funds amounted to 37 billion euros, equivalent to 5.2 percent of assets under management (AuM) at the beginning of the year
- Total assets under management grew from 942 billion euros in 2005 to 971 billion at the end of last year
- 91 percent of third-party fixed income assets under management and 70 percent of equity assets outperformed their benchmark over a three-year period
Allianz Global Investors: Strong profit growth
Strong business and investment performance
Allianz Global Investors, the asset management unit of Allianz SE, today reported another year of increased profits and assets under management. Operating profits have grown by an average of 27 percent a year from 2002 to 2006, reaching 1.28 billion euros, while total third-party AuM grew by 9 percent a year from 2002 to a total of 723 billion euros at the end of 2006. Excluding currency translation effects, the growth in AuM was 14 percent a year from 2002 to 2006.
"Five years ago, we set out to build a business that would combine global investment expertise with outstanding local client service," commented Joachim Faber, CEO of Allianz Global Investors. "We have pursued this strategy consistently over the years and are pleased to deliver another strong set of results."
"Going forward, we will be investing further in product innovation and in building our presence in attractive markets in Europe and Asia," he said, "while continuing to develop our established position in Germany and the US."
Europe: Importance of the global brand
In Germany, Allianz Global Investors maintained its position as the market leader in the institutional segment and as a top four player in the mutual fund market. Earlier this year, the former dedicated retail and institutional entities (dit and dbi) were merged and renamed Allianz Global Investors. "This signals the importance of the global brand in Germany," said Faber, "and will ensure that we are better placed to deliver constantly improving service to our clients."
Allianz Global Investors Europe was founded in order to build a distribution platform in European countries outside Germany. This unit got off to a strong start last year by launching several innovative products, including the Premier fund range specifically designed for pan-European distribution.
CEO Joachim Faber
Growth in US and Asia
In the United States, Allianz Global Investors’ investment management companies, which include PIMCO, NFJ Investment Group, RCM, Nicholas-Applegate and Oppenheimer Capital, managed a total of 574 billion US dollars (435 billion euros), reflecting annual growth of 12 percent since 2002.
A strong growth driver was the common distribution platform Allianz Global Investors US Retail, which increased assets by 25 percent annually, reaching 120 billion dollars at the end of 2006. PIMCO’s Total Return fund hit the 100 billion dollar AuM mark and continues to be the largest fixed-income fund worldwide.
In Asia, Allianz Global Investors recorded growth in AuM of 19 percent to 62 billion euros, with some significant new business wins in China, Taiwan and South Korea – countries Allianz Global Investors has identified as especially important for future growth.
"Strong investment performance is the bedrock"
"Strong investment performance is the bedrock of the asset management industry," commented Marna Whittington, Chief Operating Officer of Allianz Global Investors. "I am pleased to say that the overwhelming majority of the assets we manage outperformed their relevant benchmarks last year, driving strong fixed income and equity inflows from both institutional and retail clients."
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