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FRANKFURT — Germany’s Allianz 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.
Right here is timeline of key occasions within the saga, based mostly on courtroom paperwork, company disclosures, archived web sites, public statements, and minutes of investor conferences:
2005
Allianz’s U.S. asset administration arm establishes the so-called Structured Alpha funds beneath supervisor Greg Tournant.
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2007
Arkansas’ pension fund for retired lecturers – 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.
2008
The Arkansas’ pension fund makes an preliminary funding in Allianz’s Structured Alpha funds.
2013-2016
Arkansas decides to construct up its funding within the Allianz funds. The funds additionally attracted pension funds that served laborers in Alaska and subway employees in New York.
2016
Advertising and marketing materials describes the funds as “a examined & confirmed answer” and “persistently above goal.” They’re marketed as “a assured technique with an insurance coverage spirit.”
2019
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.
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2020
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 buyers in a “flash report” that it put the Structured Alpha funds on evaluate.
March 25 – Allianz declares the liquidation of two hard-hit funds. Buyers are additionally informed chief fund supervisor Tournant had been ailing for weeks, in response to lawsuits.
March 27 – Allianz says it stays dedicated to the fund franchise and “the remaining funds are actually effectively positioned,” however Aon points one other report recommending a “promote.”
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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 danger administration processes.” It has since been faraway from the online.
Aug. 4 – Allianz discloses that the SEC is investigating.
September – Quite a few different buyers had by this level filed fits just like Arkansas’, and extra adopted.
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2021
Could – The U.S. Division of Justice approaches Allianz for data on the funds.
Aug. 1 Allianz publicly discloses the DOJ investigation and says it might take a monetary hit.
Aug. 2 – Allianz shares drop 7.8%.
Aug. 7 Oliver Baete, Allianz chief govt officer describes a “horrible week” and concedes “not every little thing was good within the fund administration.”
Sept. 10 – Reuters reviews that the DOJ was attainable misconduct by fund managers and misrepresentation of danger to buyers.
2022
Feb. 17 – Allianz says it would put aside 3.7 billion euros ($3.90 billion) to cope with investigations and lawsuits. Experiences 2021 revenue was the bottom since 2013.
Feb. 18 – Allianz declares bonus cuts for its CEO and board, and a settlement with a “overwhelming majority” of buyers.
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Feb. 28 – Plenty of massive buyers file to finish their lawsuits.
March 3 – Arkansas drops its lawsuit after settling for $642 million, in response to a courtroom doc and board assembly minutes.
March 4 – Allianz’s annual report discloses that Allianz Chief Government Oliver Baete earned 9% extra in 2021 regardless of a lower in his bonus for the funds saga.
Could 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 declares Allianz has agreed to pay about $6 billion and its U.S. asset administration unit will plead responsible to fraud.
($1 = 0.9496 euros) (Reporting by Tom Sims Enhancing by Tomasz Janowski)
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