Newport Beach’s Pacific Investment Management Co. continues to attract investors, pushing up profits for parent Allianz SE of Germany.
Pimco, one of the largest bond fund managers, took in more than $56 billion in deposits in the third quarter, the most of any money manager, according to Allianz.
That fueled a $593 million operating profit for the German insurer’s bond management unit, a 44% increase from a year earlier, according to a report by Bloomberg.
Pimco, which controls about $1.2 trillion in assets, accounts for nearly all of Allianz’s fixed-income business division.
Pimco has been a major beneficiary in the wake of the global financial crisis as skittish investors continue to opt for safer, stable bond investments over the wildly fluctuating stock markets.
The bond market has been on quite a run, pulling more money in on a quarterly basis for nearly three years.
Eventually, interest rates are expected to go up and the value of bonds will go down, curbing investor appetite for them.
Until that happens, cautious investors may continue to avoid a major push in stocks.
Pimco’s Total Return Fund is the largest fund of any type with $256 billion in assets.
