Time for Allianz to spin off Pimco?


Allianz's (AZSEY, ALIZF) golden child is lately looking like a troubled teen, writes the FT's Oliver Ralph, and it may be time to let Pimco move out.

It's been an amazing near 15-year run the two have had together, with Pimco's AUM growing to $1.9T from $250B in 2000. The long bond bull market has helped, but so has Bill Gross' Total Return Fund beating its benchmark in 11 of the past 15 years. With interest rates looking like they're about to take off, and Gross finding it harder to outperform without the tailwind of a rising market, could this be the moment to sell high?

To review, Allianz purchased a 70% stake in Pimco for $3.3B and has since bought the rest. Last year, Pimco generated net profits of nearly $2.5B for Allianz.

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Comments (2)
  • citigroup regnum
    , contributor
    Comments (94) | Send Message
     
    It is rather complex global system if someone tries to find certain elements that can be additionally improved...

     

    Allianz SE probably is in the optimal state and there is the question how to insure and maintain its further growth.

     

    I think that the network of subsidiaries should be semi-independent and that smaller acquired entities should keep their own brands with a prefix of Allianz...

     

    From particular business general pattern can be developed and applied.
    8 Jul 2014, 04:41 PM Reply Like
  • Dan Naumov
    , contributor
    Comments (358) | Send Message
     
    Spin off PIMCO? And put the money where exactly?
    8 Jul 2014, 07:09 PM Reply Like
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