CORRECTED-Pimco client outflows to abate, CEO tells paper
(Corrects to say net outflows to narrow and removes reference to net outflows possibly ending)
FRANKFURT May 30 (Reuters) - The world's biggest bond fund, Pimco, expects the net outflow of client funds, which reached 22 billion euros ($30 billion) in the first quarter, to narrow further, its Chief Executive Douglas Hodge told a German newspaper.
Parent company Allianz this month called upon the California-based asset manager to prove it can stem the outflows after they dented its own earnings.
"We are already seeing a revival in demand for bonds. That is evident in both the decline of the yield levels and in the money flows into our fund," Hodge told daily newspaper Boersen-Zeitung.
"After the outflows have returned to their historic average, we are now increasingly seeing an inflow of money again."
Pimco has been an abundant source of cash for Allianz for years but its performance has become a growing problem since the departure of its co-chief investment officer, Mohamed El-Erian, this year following a clash with Pimco founder Bill Gross. (Reporting by Ludwig Burger; editing by Tom Pfeiffer)