* "Pimco's halo is crumbling," says Allianz investor
* Points to flagship fund's heavy capital outflows
* Allianz shares underperforming against benchmarks
MUNICH, May 7 Union Investment, a major investor
in Allianz, blasted the German insurer on Wednesday
over its handling of problems at its fund manager Pimco, saying
the fund's poor performance was denting the Allianz share price.
Pimco has been losing billions of dollars in outflows from
its flagship bond fund - the world's largest - and concerns have
been accentuated by a high-profile falling out between Pimco
founder Bill Gross and his presumed successor Mohamed El-Erian,
who quit the firm this year.
"Pimco's halo is crumbling, and with it Allianz's share
price," Union Investment portfolio manager Ingo Speich said in
the text of a speech to Allianz's annual shareholder meeting in
Speich, whose company is Allianz's tenth-largest
shareholder, according to Thomson Reuters data, pointed out that
Allianz shares has underperformed both the STOXX Europe 600
insurance index and the German blue-chip DAX
index by about 5 percent since the start of the year.
"Pimco has been in poor shape for 12 months already and this
has led to massive capital outflows," Speich said.
"But it is only since Mr El-Erian announced his departure
from Pimco earlier this year and ugly details of the quarrel
with Mr Gross became public that there have been worried looks
directed at Newport Beach," he said, referring to Pimco's
Addressing himself to Allianz Chief Executive Michael
Diekmann, Speich said: "Allianz offers an insurance policy
against reputational damage that Pimco could make good use of
"What are you going to do to finally get Pimco out of the
negative headlines? Are you going to get more involved at
(Reporting by Jonathan Gould; Editing by Carmel Crimmins and