The Weekly Wrap: May 16 edition

Pimco troubles hit Allianz’s net profit

FT: Losses at asset manager Pimco has caused net income at parent company Allianz to fall to €1.6bn (£1.3bn) – a drop of 3.9 per cent. Operating profit in Allianz’s asset management arm fell 28 per cent to €646m in the first three months of the year, driven largely by net outflows of €22bn from fixed income house Pimco. 

Inflows of $34bn mean bumper month for exchange traded funds

FT: The exchange traded fund industry experienced its best April on record, with global inflows of $34bn (£20.2bn), according to consultancy ETFGI. Vanguard has had the largest inflows so far this year, with $20.9bn, slightly beating BlackRock’s $19.5bn. However, both managers saw large outflows from emerging market ETFs in the first quarter.

Germany’s economy powers ahead as France and Italy fall behind

FT: The eurozone’s economy expanded by 0.2 per cent in the three months to March – the same as in the final quarter of 2013 and half analysts’ forecasts of 0.4 per cent. Although Germany recorded a 0.8 per cent growth, overall figures were held back by the struggling economies of France, Italy and the Netherlands.

Partnership eyes US move following annuity shake-up

FT: Annuity provider Partnership Assurance is considering expanding into the US and increasing buyouts of corporate pension schemes. The FTSE 250 company has revised its business strategy following the loss of 60 per cent of its market value since changes to annuity requirements were announced in the Budget.

Just Retirement to cut jobs after pensions overhaul halves sales

FT: The pensions shake-up has also impacted at enhanced annuity provider Just Retirement, which has begun consulting with its 820 employees regarding redundancies. The move is part of a plan to generate £14m of annual savings, which will also see senior managers take a 10 per cent pay cut and reductions in marketing, sponsorship and property costs.

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This week's social media comment

UK Pensions Regulator considering formal qualifications for independent trustees http://t.co/QwNgE5dZIH via @pensions_expert #superannuation

— Stephen Huppert (@stephenhuppert) May 11, 2014

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