Stephen Simpson, CFA
Stephen Simpson, CFA
Feb. 26, 2015, 1:40 PM
- Operating profit of €2.26B in Q4 brought Allianz's (OTCQX:AZSEY -1.3%) full-year amount to €10.4B, the upper end of its target range, but the Q4 figure was still disappointing, says analyst Olivier Pauchaut.
- Operating profit at the asset management unit - which includes Pimco - fell 16% Y/Y to €588M.
- Third-party outflows at Pimco jumped 18% to €236B in 2014, with more than 70% coming after Bill Gross' departure in late September.
- Speaking on the earnings call, Allianz CFO Dieter Wemmer says February outflows are "substantially lighter" than January ... "the trend is absolutely fine." CEO Michael Diekmann says the management transition at Pimco is working very well despite the noise from outflows.
Sep. 26, 2014, 11:49 AM
- Pimco's closed-end funds and ETFs are plunging in the wake of Bill Gross' exit to Janus: PHK -8.7%, PGP -8.5%, PTY -6.2%, PCN -4.2%, RCS -4.3%, PFL -3.6%, PFN -2.7%, PKO -2.5%, PDI -2.2%, PCI -1.4%, BOND -0.2%.
- "A lot of people bought into Pimco because of Bill Gross, who was the face of the organization, and so they’re shooting first and asking questions later,” says Motley Fool Asset Management CIO Bill Mann. "Investing is a personal business, and the market is saying it trusted Bill Gross.”
- Meanwhile, headlines indicate Dan Ivascyn, Pimco's (OTCQX:AZSEY, OTCPK:ALIZF) deputy chief investment officer, will succeed Gross and take over portfolio management; WSJ had written earlier this week that Ivasycn already was growing in popularity among Pimco investors, who had been putting more money into his fund even as they were pulling it from Gross’ fund.
Sep. 26, 2014, 10:07 AM
- It's not just shares of Janus (JNS +36.2%) and Allianz (OTCQX:AZSEY -5.7%) that are moving in response to Bill Gross' job change - traders say the news sparked knee-jerk selling in Treasury bonds.
- "Concerns over his abrupt departure are weighing on Treasury prices," says Tom di Galoma, head of fixed income rates at ED&F Man Capital Markets; the fear is that Pimco's clients will redeem, forcing Pimco to liquidate Treasury bonds.
- “He’s been a bond bull for most of his career, and during that time bonds have been in a bull market - maybe the next Pimco bond managers won’t be as bullish,” says Aaron Kohli of BNP Paribas.
- Gross manages the $221B Pimco Total Return Fund, the world's largest bond fund by assets, which held 41% of its investments in U.S. government-related holdings, a proxy for Treasury bonds, at the end of August.
- Treasurys have climbed off lows but remain in the red: TBT, TLT, TMV, SHY, IEF, TBF, EDV, PST, TMF, TTT
Sep. 26, 2014, 9:19 AM
- Allianz (OTCPK:ALIZF, OTCQX:AZSEY) slips in European action after Bill Gross bolts from Pimco to Janus Capital.
- Shares of the financial services giant were off 4.2% in Frankfurt trading.
- The story is different at Janus Capital (NYSE:JNS) with shares now up 38.5% premarket on the Gross development.
- Some analysts are waiting for the rest of the story to emerge on Gross' exit with the question on if a non-compete agreement exists being bandied around.
Apr. 2, 2012, 9:28 AM
Hartford Financial (HIG) +1.4% premarket after announcing it will pay $2.43B to buy back debt and warrants issued to Allianz (AZSEY.PK). The U.S. insurance company turned to Allianz, Germany’s largest insurer, for capital in 2008, agreeing to pay 10% on $1.75B of debt as capital markets froze; today's move allows HIG to replace the $1.75B it owes with new debt at a lower cost.| Apr. 2, 2012, 9:28 AM
May 23, 2011, 4:22 AM