Allianz cooperating as DOJ probes Structured Alpha Funds By Reuters

© Reuters. FILE PHOTO: The brand of insurer Allianz SE in Puteaux in La Protection outdoors Paris, France, Might 14, 2018. REUTERS/Charles Platiau/File Picture

FRANKFURT (Reuters) -The U.S. Division of Justice has begun an investigation referring to Allianz (DE:) World Traders’ Structured Alpha Funds, following litigation pending in U.S. courts on the matter, German insurer Allianz stated on Sunday.

Pension funds for truck drivers, academics and subway employees have lodged lawsuits in the USA towards Allianz World Traders, one of many world’s high asset managers, for failing to safeguard their investments throughout monetary market instability throughout the coronavirus pandemic.

Market panic across the virus resulted in billions of {dollars} in losses final yr, hitting many buyers, however no different top-tier asset supervisor is dealing with such a lot of lawsuits in the USA linked to the turbulence.

Allianz stated that its Allianz World Traders unit has acquired a voluntary request for paperwork and knowledge from the Division of Justice (DOJ) and that Allianz is absolutely cooperating with the DOJ in addition to with the U.S. Securities and Trade Fee.

Allianz’ administration has reassessed the matter and are available to the conclusion that there’s a related threat that the Structured Alpha Funds concern might materially affect future monetary outcomes of Allianz, it added.

For now, it was not possible to reliably estimate the quantity of any doable decision together with potential fines and no provision has been recognised on the present stage, the insurer stated.

The U.S. lawsuits allege that Allianz World Traders, in its Structured Alpha household of funds, strayed from a method of utilizing choices to guard towards a short-term monetary market crash.

Final yr, Allianz was compelled to close two personal hedge funds after extreme losses, prompting the wave of litigation which the corporate has stated is “legally and factually flawed”.

Collectively, the varied fits filed within the U.S. Southern District of New York declare buyers misplaced a complete of round $4 billion.

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