Pimco Outflows May Be 10%-30% as Gross Leaves, Bernstein Says
2014-09-26 14:24:03.400 GMT
By Chris Malpass
Sept. 26 (Bloomberg) -- Gross’s exit shows Allianz not best
Pimco owner, too late now for Allianz to do IPO of Pimco and
asset outflows of 10%-30% possible, Bernstein says in note after
Bill Gross announces move to Janus Capital.
* Sees no need for an insurance co. to own an asset manager
* Synergies between Pimco and Allianz’s insurance business are
“rather limited”
* Market skepticism over Allianz ownership led to $7b-$10b
discount
* Says Allianz could have “crystallized” it with Pimco IPO
* Pimco asset outflow of 10% outflow would have 2% impact on
Allianz fair value, model shows
* 30% outflow would hit stock by ~13%
* Today adds to worries about current investigation’s impact
on Pimco fund valuations
* Gross departure a clear negative catalyst for Allianz
* Gross appears to have tired of increased organizational
complexity at Pimco, tighter Allianz controls
* NOTE: Allianz down as much as 7.4%, most since Nov. 2011;
Janus Capital up as much as record 41%
* NOTE Sept. 24: Pimco says it is cooperating in SEC probe of
Total Return Fund
* EARLIER: Allianz says Pimco to name Gross successor “within
hours”
For Related News and Information:
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To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Tom Kohn
2014-09-26 14:24:03.400 GMT
By Chris Malpass
Sept. 26 (Bloomberg) -- Gross’s exit shows Allianz not best
Pimco owner, too late now for Allianz to do IPO of Pimco and
asset outflows of 10%-30% possible, Bernstein says in note after
Bill Gross announces move to Janus Capital.
* Sees no need for an insurance co. to own an asset manager
* Synergies between Pimco and Allianz’s insurance business are
“rather limited”
* Market skepticism over Allianz ownership led to $7b-$10b
discount
* Says Allianz could have “crystallized” it with Pimco IPO
* Pimco asset outflow of 10% outflow would have 2% impact on
Allianz fair value, model shows
* 30% outflow would hit stock by ~13%
* Today adds to worries about current investigation’s impact
on Pimco fund valuations
* Gross departure a clear negative catalyst for Allianz
* Gross appears to have tired of increased organizational
complexity at Pimco, tighter Allianz controls
* NOTE: Allianz down as much as 7.4%, most since Nov. 2011;
Janus Capital up as much as record 41%
* NOTE Sept. 24: Pimco says it is cooperating in SEC probe of
Total Return Fund
* EARLIER: Allianz says Pimco to name Gross successor “within
hours”
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Tom Kohn