German Financial Group's Asian Assets Surge This Year - Report

Tom Burroughes Editor London 22 September 2009

German Financial Group's Asian Assets Surge This Year - Report

Allianz Global Investors’ assets in Asia grew by 40 per cent this year, but the German-based fund management company is becoming increasingly cautious on equity markets after their sharp run up, a senior executive has said, according to Reuters.

Douglas Eu, chief executive of global insurance giant Allianz’s asset management business in Asia, told the news agency that he expected the next six months to be more difficult than the last six for equity investors as many markets had run ahead of themselves, creating asset bubbles.

“There are a few bubbles forming like in the physical property market, hopefully they won’t become dangerous enough to kill us in the short term,” said Mr Eu.

Mr Eu, who was previously a fund manager at JF Asset Management where he spent 19 years, said he expected Allianz investment managers to follow more short-term tactical strategies and remain mindful of inflation and currency risks.

Allianz’s assets in Asia, which were whittled down to around $15 billion in 2008, are back at their 2007-level of $21 billion with 25 per cent of growth coming from new business and rest from the rally in the Asian markets.

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