ALLIANZ GROUP 80 Allianz is one of the 5 leading asset managers in the world. Net inflow to  assets under management for third-party investors reached 25 billion euros. In spite of the currency-related fall in the value of our investments, most of which are managed in U.S. dollars, the assets managed for  third parties grew by 4 billion euros or 1 percent to 565 billion euros. The operating result amounted to  733 million euros. After deduction of acquisition-related expenses as well as taxes and minority interests,  the segment reported a lower-than-expected loss of 270 million euros. Assets under management comprise both assets managed for third parties as well as investments used to cover insurance re- serves, equity capital and liabilities. Approximately 57 percent or 565 billion euros of our assets are managed for third party investors. The value of this portfolio in- creased by 4 billion euros. This includes 25 billion euros in net inflows as well as market-related growth of 47 billion euros. This increase in the value of investments managed for third party investors overcompensated the negative exchange rate ef- fect of 68 billion euros which stemmed in particular from the weakness of the U.S. dollar.  Approximately 70 percent of our third-party investments come from the U.S.A. and roughly 18 percent from Germany. As a result, we enjoy a very strong position in both markets. In terms of total volume, institutional customers account for 59 percent. We are thus operating in a market environment with very high demands on the quality of our products and services. This constellation also benefits our private customers.  In 2003 we achieved a number of successes: Assets under management  Asset management for third party investors _  With net inflows of 33 billion euros, our fixed-income fund business achieved extraordinarily strong growth. The fixed- income share of our portfolio amounts to 72 percent; equity funds account for 26 percent. _  Our PIMCO Total Return Fund increased its investment vo- lume to 74 billion U.S. dollars by the end of the year and has established itself as the largest actively-managed investment fund in the world.  _  Its European equivalent, dit-Euro Bond Total Return Fund  “powered by PIMCO”, recorded net inflows in 2003 of more than 1.7 billion euros. It was once again one of Germany’s best selling fixed-income funds. _  With net inflows to mutual funds of 3.5 billion euros, ADAM Deutschland GmbH managed to secure itself a market share in 2003 of over 19 percent and thus ranks third among the German investment trusts. _  In the institutional customer business in Germany, ADAM Deutschland still ranks first. In special funds, the company’s institutional asset manager dbi recorded growth of 5.4 billion euros. _  Our joint venture Guotai Junan Allianz Fund Management Co., the first fund manager with foreign participation to be granted a business license in China in 2002, commenced busi- ness operations very successfully with the launch of the Des- heng Stable Balanced Fund and a sales volume of 3.7 billion Chinese renminbi (398 million euros). current current current values values values 12/31/2003 12/31/2002 12/31/2001 ¤ bn ¤ bn ¤ bn Group investments 399 403 481 Investments for unit-linked life  insurance 32 25 25 Investments for third-party investors 565 561 620 Assets under management 996 989 1,126