C _ Group Management Report ASSET MANAGEMENT Negative effects from consolidation, deconsolidation, and other adjustments reduced total AuM by € 11.0 bn. This amount is 1 predominantly made up of € 6.5 bn of third-party AuM, transferred Key figures Asset Management from AllianzGI to the new strategic partner Virtus Investment Advisers 2021 2020 Delta in the first quarter of 2021. Operating revenues € mn 8,396 7,347 1,049 Favorable foreign currency translation effects totaled € 103.4 bn. Operating profit € mn 3,489 2,853 636 For the most part, they stemmed from PIMCO’s AuM. 2 Cost-income ratio % 58.4 61.2 (2.7) %-p Net income (loss) € mn (191) 1,973 (2,164) Total assets under management as of 31 December € bn 2,609 2,389 220 Third-party assets under management thereof: Third-party assets under management as of 31 December € bn 1,966 1,712 255 As of 31 As of 31 December December 2021 2020 Delta Third-party assets under management € bn 1,966 1,712 14.9% Assets under management Business units' share PIMCO % 76.8 78.1 (1.3) %-p AllianzGI % 23.2 21.9 1.3 %-p Composition of total assets under management Asset classes split € bn Fixed income % 75.4 78.3 (3.0) %-p Equities % 10.4 9.5 0.9 %-p As of As of Multi-assets % 10.5 9.4 1.1 %-p 31 December 31 December Type of asset class 2021 2020 Delta Alternatives % 3.7 2.7 1.0 %-p Fixed income 1,929 1,848 81 Investment vehicle split1 Equities 229 181 48 Mutual funds % 58.5 57.9 0.5 %-p Multi-assets1 220 178 42 Separate accounts % 41.5 42.1 (0.5) %-p Alternatives 230 182 49 Regional allocation2 Total 2,609 2,389 220 America % 55.5 54.8 0.8 %-p 1_The term “multi-assets” refers to a combination of several asset classes (e.g. bonds, stocks, cash and real property) Europe % 32.4 32.8 (0.4) %-p used as an investment. Multi-asset class investments increase the diversification of an overall portfolio by distributing Asia Pacific % 12.1 12.4 (0.4) %-p investments over several asset classes. Overall three-year rolling investment outperformance3 % 91 79 12 %-p In 2021, net inflows3 of total assets under management (AuM) 1_Mutual funds are investment vehicles (in the United States, investment companies subject to the U.S. code; in Germany, amounted to € 108.3 bn (2020: € 41.4 bn) – and third-party net inflows vehicles subject to the “Standard-Anlagerichtlinien des Fonds” Investmentgesetz) where the money of several individual investors is pooled into one account to be managed by the asset manager, e.g. open-end funds, closed-end were € 110.1 bn (2020: € 32.8 bn). The full year’s net inflows were funds. Separate accounts are investment vehicles where the money of a single investor is directly managed by the attributable to both PIMCO (€ 57.7 bn total and € 64.6 bn third-party) asset manager in a separate dedicated account (e.g. public or private institutions, high net worth individuals, and corporates). and AllianzGI (€ 50.6 bn total and € 45.5 bn third-party). 2_Based on the location of the asset management company. Overall, positive effects from market and dividends4 totaled 3_Three-year rolling investment outperformance reflects the mandate-based and volume-weighted three-year investment success of all third-party assets that are managed by Allianz Asset Management’s portfolio-management € 19.2 bn. Of these, positive effects of € 40.4 bn came from AllianzGI units. For separate accounts and mutual funds, the investment success (valued on the basis of the closing prices) is and were mainly related to equity, while € 21.2 bn negative effects compared with the investment success prior to cost deduction of the respective benchmark, based on various metrics. For some mutual funds, the investment success, reduced by fees, is compared with the investment success of the were attributable to PIMCO and due exclusively to fixed-income median of the respective Morningstar peer group (a position in the first and second quartile is equivalent to assets, while all other asset classes developed positively. outperformance). The overall three-year rolling investment outperformance improved significantly after the substantial market dislocations driven by COVID-19, and is now at a very high level. 1_For further information on our Asset Management figures, please refer to note 4 to the Consolidated Financial Statements. 2_Represents operating expenses divided by operating revenues. 3_Net flows represent the sum of new client assets, additional contributions from existing clients – including dividend reinvestment – withdrawals of assets from and termination of client accounts, and distributions to investors. 4_Market and dividends represents current income earned on the securities held in client accounts as well as changes in the fair value of these securities. This also includes dividends from net investment income and from net realized capital gains to investors of both open-ended mutual funds and closed-end funds. Annual Report 2021 − Allianz Group 83