Fending off shareholder criticism, Allianz SE (ALV.XE) Chief
Executive Michael Diekmann Wednesday expressed strong support for
the company's asset manager Pacific Investment Management Company
LLC.
"There is no reason [for shareholders] to rake us over the
coals," Mr. Diekmann told the annual shareholders meeting, lauding
Pimco's long-lasting track record of substantially outperforming
peers in most of the past 26 years. The company's flagship asset
manager is currently suffering from continuing net outflows and a
weak investment performance.
"Allianz will do anything sensible to strengthen Pimco further,"
Mr. Diekmann said. "Clients gave us a very positive feedback
regarding Pimco's new management structure."
Shareholders at the AGM grilled Allianz management about Pimco's
current weak performance and the recent top management shake-up
that involved the departure of CEO Mohamed El-Erian and the
appointment of six deputy chief investment officers. Pimco founder
and Chief Investment Officer Bill Gross remains at the helm.
"Mr Diekmann, what do you want to do to get Pimco out of the
negative media headlines," asked Ingo Speich, fund manager at Union
Investment, one of the top investors in Allianz shares. He asked
whether the parent wants to get more strongly involved in Newport
Beach, Calif., where Pimco is headquartered.
"We will see whether the new management structure with six
deputy investment officers under Bill Gross will be sustained and
generate better investment returns," Mr. Speich said.
He added that Allianz's share price, which has underperformed
both the Stoxx 600 insurance index and the German Dax by 5% since
the beginning of 2014, currently reflects "a substantial Pimco
discount."
"We didn't need a male cat fight," as regards Mr El-Erian's
departure, said Daniela Bergdolt, who represents DSW Deutsche
Schutzvereinigung fuer Wertpapierbesitz, one of two biggest German
retail shareholder groups.
As contracts for six out of 11 management board members expire
at the end of the year, including that of CEO Diekmann,
shareholders urged the company to provide clarity over possible
contract extensions sooner than in October. Mr. Speich, Ms.
Bergdolt and other shareholders expressed their wish for Mr.
Diekmann to consider an extension of his contract by one or two
years.
Write to Ulrike Dauer at ulrike.dauer@wsj.com
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