Pacific Investment Management Co. saw outside clients pull money for the first time since the onset of the pandemic as investors fled fixed-income securities amid rising interest rates.
The giant bond manager watched 13.6 billion euros ($14.3 billion) go out the door in the first quarter, contributing to a 4.5% drop in outside money overseen at Allianz SE’s asset management businesses.
The outflows — mainly from fixed income but some also from equities — were the first quarterly net redemptions for Pimco since the start of 2020, when investors pulled 43 billion euros.
The results reflect a challenging beginning to the year for asset managers, as a global market rout saw the S&P 500 Index post its worst first four months of a year since 1939, while the bond market selloff continued amid aggressive monetary tightening.
Allianz Chief Financial Officer Giulio Terzariol said he expects Pimco’s outflows to continue for now and turn into inflows once interest rates stabilize on a higher level.
“The outflows at Pimco are not surprising” and overall “pretty moderate,” Terzariol said in an interview with Bloomberg Television.
Allianz shares fell 3.2% at 5:21 p.m. in Frankfurt trading on Thursday, bringing the total decline this year through May 12 to 4.4%. Citigroup Inc. analyst James Shuck said Pimco’s outflows were higher than expected.
Pimco also had billions of dollars of exposure to Russia but has marked down all positions significantly, according to a spokesman.