Germany’s financial regulator is investigating Allianz over billions of dollars of losses at some of the group’s US investment funds, according to a report.
BaFin is investigating Allianz across multiple departments to find out how much Allianz executives outside its fund division knew about or were involved in events leading up to the losses, Reuters reported, citing several anonymous sources.
Allianz is one of the world’s biggest money managers with 2.4trn euros in assets under management through Pimco and Allianz Global Investors, which managed the funds at the centre of the probes, Reuters said. The German insurer is already facing lawsuits and investigations in the US over the losses at its structured alpha funds.
Allianz told Reuters it was in regular contact with BaFin on all matters including structured alpha. “It is an absolutely normal process,” a spokesperson said.
The company said last month it had reassessed the risks related to the funds after an approach from the US Department of Justice and that the matter could materially hurt its future financial results. The funds, aimed at US pension funds for workers such as teachers and subway employees, plunged after Covid-19 sent markets plunging.
