The emblem of insurer Allianz SE in Puteaux in La Protection outdoors Paris, France, Might 14, 2018. REUTERS/Charles Platiau/File Picture
FRANKFURT, Aug 1 (Reuters) – The U.S. Division of Justice has begun an investigation referring to Allianz World Buyers’ Structured Alpha Funds, following litigation pending in U.S. courts on the matter, German insurer Allianz mentioned on Sunday.
Pension funds for truck drivers, academics and subway staff have lodged lawsuits in the US towards Allianz World Buyers, one of many world’s high asset managers, for failing to safeguard their investments throughout monetary market instability in the course of the coronavirus pandemic.
Market panic across the virus resulted in billions of {dollars} in losses final 12 months, hitting many traders, however no different top-tier asset supervisor is dealing with such a lot of lawsuits in the US linked to the turbulence.
Allianz mentioned that its Allianz World Buyers unit has acquired a voluntary request for paperwork and data from the Division of Justice (DOJ) and that Allianz is totally cooperating with the DOJ in addition to with the U.S. Securities and Alternate Fee.
Allianz’ administration has reassessed the matter and are available to the conclusion that there’s a related danger that the Structured Alpha Funds situation might materially impression future monetary outcomes of Allianz, it added.
For now, it was not possible to reliably estimate the quantity of any potential decision together with potential fines and no provision has been recognised on the present stage, the insurer mentioned.
The U.S. lawsuits allege that Allianz World Buyers, in its Structured Alpha household of funds, strayed from a technique of utilizing choices to guard towards a short-term monetary market crash.
Final 12 months, Allianz was compelled to close two non-public hedge funds after extreme losses, prompting the wave of litigation which the corporate has mentioned is “legally and factually flawed”.
Collectively, the varied fits filed within the U.S. Southern District of New York declare traders misplaced a complete of round $4 billion.
Reporting by Arno Schuetze; Enhancing by Susan Fenton
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