Weekly Flash Report 9/18 2020.09.21

Current Happenings:

  • Trump approves TikTok’s deal with Oracle & Walmart in concept. The new US-based company “TikTok Global” will 80% owned by TikTok parent company ByteDance, 12.5% by Oracle which will host the video-sharing app, and 7.5% by Walmart that will provide ecommerce and shopping-related services.
  • Nikola shares tumbled as founder Trevor Milton stepped down as executive chairman, adding that he would defend himself against “false allegations leveled by outside detractors.”
  • The Fed said they will keep interest rates anchored to the zero-bound through 2023.

Regulatory Trends and Industry Trends:

  • The Blue Cross and Blue Shield Association National Employee Benefits Committee has filed an ERISA lawsuit against Allianz Global Investors and Aon Investments USA. The trust claims that promised downside protection for several AllianzGI Structured Alpha funds was not implemented, resulting in “staggering losses to the trust during the market crash and volatility caused by the COVID-19 pandemic. Allianz promised that hedges would be in place ‘at all time’ to cap the downside risk of that strategy. The complaint alleges that Aon violated its fiduciary duties, repeatedly recommending that the committee invest the trust’s assets in the Structured Alpha funds.

Investment Manager News:

  • John Galloway was named global head of investment stewardship at Vanguard.
  • Mathieu Clavel was named managing director and portfolio manager, head of private credit Europe at PIMCO.

 

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