(Corrects to say net outflows to narrow and removes reference
to net outflows possibly ending)
FRANKFURT May 30 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
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
"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)