Positive flows remained a highlight for Allianz's fund management division during the second quarter. The asset management arm of the German company reported a bottom line of $353 million for the second quarter (246 million Euros), according to a company statement.

Helmut Perlet, Allianz's CEO, pointed to fixed income as an especially strong area for the unit: "Our fixed income business is remarkable. The three-year compound annual growth rate (CAGR) for operating profit is 13.8 percent. Strong net inflows, operational discipline, and the upward trend of our investment performance also underpin our consistently performing fixed income business."

The Allianz Global Investors arm includes both Newport Beach, California-based Pimco and New York-based Allianz Funds. Pimco is known as one of the strongest fixed income managers and is led by famed bond investor Bill Gross.

Allianz's asset management unit had 813 billion euros in total AUM, up by 110 billion euros from the end of the fiscal year in 2008. The unit reported total net inflows of 33 billion euros for the division, as fixed-income inflows were offset by 5 billion euros of outflows from equities.

The earnings mark a 12.5 percent decline from the second quarter a year ago, according to the report, which was released Friday.

Meanwhile, asset inflows and appreciation led revenue to climb 5.5 percent to 780 million euros. At the same time expenses rose 17 percent to 534 million euros for the Germany-based company.  

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