Pimco Attracted Deposits of $52 Billion in First Quarter

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 40.4 billion euros ($51.9 billion), an 84 percent jump from a year earlier, according to a presentation today by Pimco’s parent Allianz SE (ALV), Europe’s largest insurer. Allianz said its asset management unit, which includes Newport Beach, California-based Pimco and Allianz Global Investors, saw profit jump 50 percent to 568 million euros.

Pimco’s 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. (MORN), said fixed-income returns will probably be in the range of 2 percent to 3 percent.

“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.

To contact the reporter on this story: Alexis Leondis in New York at aleondis@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.