Analysts at Commerzbank believes that the slump in shares of Allianz was overdone today because the fund withdrawals mean that the investors are going pull out around $300 billion worth of Pimco funds. They said the slump in shares was believed to have been caused by the unexpected departure of investment officer Bill Gross from the company.
The reaction of the market to the exit of high-profile Gross looks overdone according to the Commerzbank analysts because they believe that assets are stickier and that it is not likely for the investors to have much withdrawal. It’s estimated that what’s pulled from Pimco since Gross’ exit is at around $10 billion.
On the other hand, the Janus Capital Group that Bill Gross moved to have its shares that surged which means that the company is expected to bring in new money worth $20 to $30 million. This analysis is according to what Moran Stanley experts say.
Pimco said that, it’s still on track and it’s aiming to reach its 2014 profit target even without Gross’s service anymore. Whether there’s really turmoil in the company which caused two high profile investment officers to leave Pimco, Chief Executive Douglas Hodge didn’t say anything but only promised existing clients that a bright future is ahead for them.