Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Allianz Annual Report 2012

Magazine for the Annual Report 2012 23 Newport Beach, an hour’s drive south of Los Angeles, is especially well known to surfers. Early in the morning, before most people even get to work, you can see a surfer or two riding the waves out in the Pacific. A few hundred meters inland, in the middle of town, it is an entirely differ- ent scene. Mark Kiesel and his colleagues from PIMCO – Pacific Invest- ment Management Company LLC – are sitting in a conference room con- templating a very different kind of risk than the surfers out at sea. Mark is the global head of the corporate bond portfolio management group and chairing today’s credit team portfolio review meeting, attended by a group of 14 men and women, with three more tuned in from New York via videoconference. As they do every Friday morning, the fund manag- ers are discussing risk – and even more importantly, opportunities. “The real estate market is probably picking up steam in the USA, and it could stay that way for several years. The U.S. housing market is in the beginning stages of a multi-year recovery and global central banks could continue to “reflate.” As such, the housing-related, building materials, lumber, title insurance, energy, pipeline, U.S. banking and gaming sec- tors are among the most promising,” says Kiesel, 43, who has spent 17 years at PIMCO, one of the world’s leading asset managers. It is part of Kiesel’s job to project what industries, and especially what companies, will evolve in financially promising ways. His forecasts are outstanding, in the truest sense of the word. Early this year, Mark earned one of the highest honors the industry has to offer when he was named the 2012 “Fixed-Income Fund Manager of the Year” by Morningstar, the leading provider of independent investment analyses. What Kiesel has just told his staff, puts him at odds with many other market watchers. But a tendency to swim against the tide is a trait shared by all fund managers at PIMCO, a company formed in 1971 as a subsidiary of a life insurer and financial service provider, and a part of the Allianz Group for 13 years now. Mark Kiesel and his colleagues always think a couple of years ahead. They’re willing to take risks where others wouldn’t dare. But not from gut instinct – their choices are based on meticulous research. For ­example, while many portfolio managers at other companies rely on their analysts’ written reports, the managers at PIMCO always assess companies on location. “You have to get a look at all the facilities and equipment and talk to management,” says Kiesel. “Of course it’s also important to know their competitors and to get in close contact with the local banks and government. We visit every company to get an independent picture and we travel over a hundred thousand miles on airplanes each year to do ‘bottom-up’ research in ‘face-to-face’ meetings with senior management of companies all over the world.” “Each of these trips is planned with military precision,” says Kiesel. “When we arrive on site, everybody knows exactly what to do and whom they need to talk to.” Because PIMCO’s projections are so important to 148  Group Managemant Report / Asset Management Operating Profit 2012 (in EUR) : ALLIANZ ASSET MANAGEMENT 3,014 mn Net inflows in % of third-party assets under management Asia-Pacific United States Europe 3.4 28.1 6.8 2011 38.3 26.6 77.4 9.2 2010 113.2 17.8 58.9 36.9 2012 113.6 Allianz Asset Management Third-Party net inflows by ­region (eur bn) 2010 2011 2012 3.312.2 8.9