Wilmington Trust terminates subadvisor mandate from AllianzGI

The US asset manager Wilmington Trust withdraws an advisory mandate from Allianz Global Investors. This is a result of sanctions imposed by the US Department of Justice and the Securities and Exchange Commission.

These are related to the structured alpha funds that collapsed during the Corona crash in March 2020, which led to legal disputes. As part of the agreement With the two authorities, AllianzGI pleaded guilty to securities fraud in May, was fined $1 billion and agreed to repay around $5 billion to investors and stop managing mutual funds in the US for 10 years, which is why the Allianz assets of $120 billion Voya Investment Management transmits. In return, she will take a 24% stake in the company.

The events have prompted a number of fund providers to review their mandates placed with AllianzGI.

On June 30, the company from the fund Wilmington International with a volume of $558 million excluded, according to an SEC document. The strategy is managed by Matthew Glaser (Citywire-Rating A) und Allen Choinski.

Axa, Berenberg, Nikko and Schroders

Parametric Portfolio Associates will take Allianz’s place. Other subadvisors include Axa, Berenberg, Nikko and Schroders, the filing states. Paul Bouchey (Citywire-Rating AAA) und Thomas Seto (Citywire-Rating Plus) are responsible for the allocation of Parametric.

Effective July 1, Prudential has already replaced Allianz with T. Rowe Price for the PSF Natural Resources portfolio. Other managers such as Allspring and Variable Annuity Life Insurance Company have said they will be reviewing subadvisor mandates in the coming weeks.

A Wilmington spokesman did not immediately respond to a request for comment.

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