Allianz – pre-departure board member – economy

At insurance company Allianz, Jacqueline Hunt, a member of the board of directors, faces an untimely end in the case concerning the losses of hedge funds Allianz in the corona crisis. The alliance was considering “planning for the succession of its board of directors to move forward,” the group said on Monday. This also applies to the asset management division, “which currently faces particular challenges due to the structured alpha issuance in the US”. The 53-year-old’s contract expires in the coming year anyway.

The Wall Street Journal reported that Hunt is already negotiating an early exit. The American is being blamed at least part of the blame for the debacle that asset management subsidiary Allianz Global Investors (AllianzGI) suffered with hedge funds. About 25 institutional investors in the United States – including pension funds for state employees – sued Allianz for $ 6 billion because they lost much of their stake in the spring of 2020 with the risky paper but allegedly crisis-proof. You accuse Allianz of deviating from its investment strategy in the face of the temporary panic in the markets.

The losses also prompted regulators in the United States and Germany and the United States Department of Justice to act. Allianz has not made any provisions to date, but has already warned of significant negative effects on results. According to its own information, it also controls the “risk and compliance processes relating to Alpha Structured Funds, which belong to the Asset Management division”. Hunt has been a board member of Allianz for the two asset management subsidiaries Pimco and Allianz GI since 2016. However, Pimco enjoys a relatively high degree of autonomy within the group as long as Californians achieve their goals. profits reliably in Munich. The smaller Frankfurt-based Allianz GI is actually mostly known in Germany for mutual funds; hedge funds such as the “Structured Alpha” family sold in the United States are rather a marginal activity for them.

According to the Wall Street Journal, Hunt apparently wanted to leave the alliance before the US Department of Justice learned of the Structured Alpha funds in May. Over time, differences over corporate culture have accumulated.

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