Germany’s Allianz and its U.S. funds troubles


FRANKFURT, Might 17 (Reuters) – Germany’s Allianz (ALVG.DE) has agreed to pay about $6 billion and its U.S. asset administration unit will plead responsible to fraud after a bunch of its multibillion funding funds collapsed amid market turmoil triggered by the coronavirus pandemic in 2020. learn extra

Right here is timeline of key occasions within the saga, based mostly on court docket paperwork, company disclosures, archived web sites, public statements, and minutes of investor conferences:


Allianz’s U.S. asset administration arm establishes the so-called Structured Alpha funds underneath supervisor Greg Tournant.

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Arkansas’ pension fund for retired academics – which might later be the primary to sue Allianz over its investments within the funds – owns $19.4 million in Allianz inventory, its fourth-largest holding in a overseas firm.


The Arkansas’ pension fund makes an preliminary funding in Allianz’s Structured Alpha funds.


Arkansas decides to construct up its funding within the Allianz funds. The funds additionally attracted pension funds that served labourers in Alaska and subway employees in New York.


Advertising materials describes the funds as “a examined & confirmed answer” and “constantly above goal”“. They’re marketed as “a assured technique with an insurance coverage spirit”.


Arkansas’ Structured Alpha holdings attain a market worth of $1.6 billion on the finish of 2019, a good portion of the $18.3 billion fund.


January – World inventory markets plunge amid fears of the spreading coronavirus.

Feb. 3 – Mohamed El-Erian, Chief Financial Advisor at Allianz, warns CNBC viewers not “to purchase the dip” as a result of the coronavirus disaster was with out precedent.

March 13 – The funding marketing consultant Aon warns Structured Alpha traders in a “flash report” that it put the Structured Alpha funds on assessment.

March 25 – Allianz proclaims the liquidation of two hard-hit funds. Traders are additionally instructed chief fund supervisor Tournant had been unwell for weeks, based on lawsuits.

March 27 – Allianz says it stays dedicated to the fund franchise and “the remaining funds at the moment are properly positioned”, however Aon points one other report recommending a “promote”.

March 31 – One of many funds held by Arkansas loses 78% within the first quarter, in comparison with a 22% drop of its benchmark.

April 6 – The Arkansas fund’s board votes to exit the Allianz funds and park the proceeds with BlackRock.

June 30 – The Arkansas fund’s board votes to sue Allianz.

July 20 – Arkansas’ go well with is filed with the U.S. Southern District of New York claiming $774 million in losses.

July 21 Allianz publishes a paper saying that “losses weren’t the results of any failure within the portfolio’s funding technique or threat administration processes”. It has since been faraway from the net.

Aug. 4 – Allianz discloses that the SEC is investigating.

September – Quite a few different traders had by this level filed fits much like Arkansas’, and extra adopted.


Might – The U.S. Division of Justice approaches Allianz for data on the funds.

Aug. 1 Allianz publicly discloses the DOJ investigation and says it may take a monetary hit. learn extra

Aug. 2 – Allianz shares drop 7.8%. learn extra

Aug. 7 Oliver Baete, Allianz chief government officer describes a “horrible week” and concedes “not all the pieces was excellent within the fund administration.” learn extra

Sept. 10 – Reuters reviews that the DOJ was attainable misconduct by fund managers and misrepresentation of threat to traders. learn extra


Feb. 17 – Allianz says it’s going to put aside 3.7 billion euros ($3.90 billion) to cope with investigations and lawsuits. Stories 2021 revenue was the bottom since 2013. learn extra

Feb. 18 – Allianz proclaims bonus cuts for its CEO and board, and a settlement with a “overwhelming majority” of traders. learn extra

Feb. 28 – Numerous large traders file to finish their lawsuits. learn extra

March 3 – Arkansas drops its lawsuit after settling for $642 million, based on a court docket doc and board assembly minutes. learn extra

March 4 – Allianz’s annual report discloses that Allianz Chief Govt Oliver Baete earned 9% extra in 2021 regardless of a minimize in his bonus for the funds saga.

Might 11 – Allianz units apart one other 1.9 billion euros to settle litigation and any fines from U.S. regulators. nL5N2X327P]

MAY 17 – The DOJ proclaims Allianz has agreed to pay about $6 billion and its U.S. asset administration unit will plead responsible to fraud. learn extra

($1 = 0.9496 euros)

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Reporting by Tom Sims
Modifying by Tomasz Janowski

Our Requirements: The Thomson Reuters Belief Ideas.



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