(Bloomberg) -- Pacific Investment Management Co., whose co-founder Bill Gross said last week the 30-year bull market in bonds is probably over, attracted the most client deposits ever in the first quarter.
Pimco took in $51.9 billion, an 84% jump from a year earlier, according to a presentation today by Pimcos parent Allianz SE, Europes largest insurer. Allianz said its asset management unit, which includes Newport Beach, California-based Pimco and Allianz Global Investors, saw profit jump 50% to 568 million euros.
Pimcos co-chief investment officer Gross said May 10 that the bull market for bonds probably ended at the end of April as yields reached a low and prices peaked. Gross, who earned the nickname The Bond King in media outlets and was named fixed- income manager of the decade in January 2010 by Morningstar Inc., said fixed-income returns will probably be in the range of 2% to 3%.
There was a lot of discussion of asset rotation and outflows from bonds, Allianz Chief Financial Officer Dieter Wemmer said during a conference call today with analysts. When you actually follow the details of the asset rotation, then mainly the money-market funds are suffering and showing a lot of outflows, he said.
Gross spoke about an end to the fixed-income market rally in 2010, saying in March of that year that bonds may have seen their best days and then eight months later that a renewal of asset purchases by the Federal Reserve may signify an end of the bond bull market.
Pimco managed $2.04 trillion in assets as of March 31.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access