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, 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., 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.

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