Allianz GI chief preaches virtue of staying in-house
Faber: ‘not opposed to open platforms’
Joachim Faber promotes ‘in-house outsourcing’ strategy, outlining limited scenarios where open architecture is preferable. Paula Garrido reports
Hiring external expertise in asset management is not everyone’s first choice. At the FT Business Managing Assets for Life Insurers conference, Joachim Faber, CEO of Allianz Global Investors described his company business model as an “in-house outsourcing” structure based on building internal expertise rather than delegating asset management capabilities.
Five years ago the company adopted this strategy and started concentrating on developing stronger asset management capabilities often involving the acquisition of some of the world’s most successful fund managers, including US fixed income manager Pimco in 1999.
“We are not opposed to the open-platform concept,” he said, explaining that the two scenarios where Allianz would consider outsourcing were lack of a particular product or in case of suffering unsustainable performance. “Luckily we do not have too many areas of sustainable underperformance,” he said, but admitted Allianz has had situations where some of its insurance companies have chosen to use outside managers in specific investment areas. “But of course we are fighting hard to get back on track and try to be better than those outside managers.”
Allianz Global Investors has over e800bn under management.
Faber: ‘not opposed to open platforms’
