Allianz (AZSEY) stock surged to a six-month high Friday after it revealed positive performance for its U.S. bond fund manager PIMCO in its third quarter earnings.
Europe's largest insurer reported inflows into its U.S. fund manager PIMCO of €4.7 billion ($5.1 billion) in the third quarter compared with €16 billion in net outflows a year earlier. This was the first quarterly inflows recorded since 2013. CFO Dieter Wemmer said the inflows "confirm the attractiveness of PIMCO products."
Allianz shares rose more than 3% in Frankfurt to €153.40 before paring gains to around 2.2% by 11:00 GMT. It has lost more than 6% since the beginning of 2016.
The group's overall asset management division, which also includes Allianz Global Investors, contributed €604 to the quarterly operating profit.
PIMCO has been in a period of upheaval since 2014 when CEO and co-CIO Mohamed El-Erian abruptly left the wrolds biggest bond fund manager. In September, co-founder and co-CIO Bill Gross announced he was leaving to join Janus Capital., prompting massive outflows client outflows.
Former Man Group plc (MNGPY) CEO Manny Roman took the helm at the Newport Beach, California-based PIMCO in July.
Third quarter earnings for banks and asset managers have been propped up by investors seeking solace in bond markets. The third quarter was the first full quarter since the U.K. voted to leave the European Union, a risk event that rattled markets.