Dmoney Manager Tim Albrecht is around 200 million Euro value. At least he was. As his employer, the largest German investment company DWS, announced in November 2018, with Pride, of the Fund to arm Albrecht changes other than rumours but to the competitors Berenberg, the DWS-share. The investment Manager of the German Bank won on that day, 200 million euros in market capitalization.
Since the Morning of the 18th. June, the DWS has lost almost 300 million in stock market value. And it could be to do with Albrecht. Because the Fund managers belonged in relation to the size of its Equity exposure to the largest trailers of the payment service provider Wirecard. Even as an auditor expressed at the end of April to doubt the probity of the controversial technology company, he remained of the “the attractive future prospects of the business model as a digital payment service provider convinced”.
Now, if the Wirecard debacle is worked up, stand next to the management of the company, especially financial supervisors and auditors in the firing line. But the System is Wirecard have stock on the capital market, hardly as long as had without the numerous Fans in the financial centre of Frankfurt. Many analysts and Fund managers kept the Aschheimer company until the very last bar.
A day before the fraud blew up finally, there was the securities analyst who kept a Wirecard target price of about 200 euros and, as it were, a price doubling in views presented. Private investors, who believed almost champagne-like on the future of the digital group, got new food for your mind. Now Small had to be as major shareholders see their papers crashed to under 20 euros.
Positions to be liquidated at the end of April
Especially in the case of German funds companies, Wirecard was popular, in spite of all doubts as to the seriousness. Although in the spring of 2019 reports of dubious business increased conduct, the right to take German Fund Manager again vigorously. All DWS-man Albrecht, endowed in more than ten percent of its flagship Fund DWS Germany with Wirecard. Also, the competition from Deka (savings banks) and Union Investment (Volks – and Raiffeisen banks), increased their holdings. The high point in January of this year, the Comrades had invested more than 500 million euros in Wirecard.
However, both Union Investment, as well as Deka liquidated brought to their positions by the end of April after the special audit report by KPMG, no relief for the allegations. Union Investment was reduced to the Position of 97%, before it came on Thursday of last week to the collapse of the Dax-paper. Wirecard have tasted the UniGlobal only 0.37 percent percentage points in value development. This is in comparison very little, says the Union.
The Deka Fund, the information kept according to Bloomberg temporarily two million shares of Wirecard, had, according to his own words, “the last time any significant number” of Wirecard-shares. According to the 28. April 2020, as the consulting company KPMG refused to certify the Wirecard Numbers, expanded the investment company of the Sparkassen of their Position.
Otherwise the DWS. Also at the end of may were still invests 4.4 percent of the customer funds of DWS Germany, Wirecard. Read the leaves to the below-average value development. The Fund has lagged in the past few days, in comparison with competitive products. In the case of the largest German public investment company, one is justified in so many words. The Fund management had been convinced from the attractive future prospects of the business model as a digital payment service provider. On the other, the management’s explanations to be credible cast, the rejected for various companies in the fraud meetings, accusations always follow back.
The DWS look at it as part of their fiduciary duty to engage in a constructive dialogue with all companies, with the aim of helping these to better Governance, it is, in the Fund company. Up until last week. “After the 18. June 2020, despite repeated postponement, no annual financial statements by the company was presented and in this context, emerging fraud have increased charges, complied with the DWS, again, of their fiduciary obligation and immediately sold all of your shares, bonds and derivative instruments of Wirecard AG in its German and Luxembourg funds.“
It should have all the warning lights to illuminate, as Wirecard had to postpone its annual financial statements a number of times. At the latest, in April, all of the investors were warned, as KPMG noted in the audit report on the Missing of important documents and lack of cooperation. Just the development of the business, agreed many experts are also skeptical. The growth came from established markets, the cash flows digitized, but of all places, from small Asia’s emerging countries, where transactions are not as transparent. And in Europe, the Wirecard made with your preference of stores in emerging market countries, such as Romania. This anomaly already, analysts at Citi said in February 2019.
However, Albrecht heard, obviously, to the majority of the analysts that saw a high growth potential. The average price target of all analysts was the day before the collapse, according to the financial news service Bloomberg at just 160 Euro. The experts of Commerzbank still had until a short time before a target price of 230 euros. Irony of history: the Commerzbank are among the leading lenders of Wirecard. “Analysts are paid musicians. The Playlist will need to make a Fund Manager yourself“, etches a market participant who wants to remain anonymous.
Not all of the German investment Fund companies had engaged in Wirecard. So Allianz Global Investors (AGI), remained critical. The Germany-flagships Fondak, and Concentra had never built up positions. “Reason was an inadequate internal credit Rating of the company, and it was from our point of view, especially in the Governance,” it says at Allianz Global Investors, with a view to the conduct of the Wirecard management. AGI follows, according to its own assessment of the company’s own Corporate Governance Standards, i.e., standards of sustainability and good corporate governance. “So with independent experts is occupied, the audit Committee of the Supervisory Board is, for example, in the case of accounting issues is important”, – stated in the investment subsidiary of the Allianz group.
In addition to the Tim Albrecht managed DWS portfolios at the end of may were still some other Fund larger Wirecard positions, such as a listing of the Fund rating firm Citywire shows. A particularly daring Wirecard bet of the Alken European Opportunities and Alken Small Cap Europe were received, in which the Aschheimer were four weeks ago, the largest stock Position. Alken-Arm Nicolas Walewski, a graduate of the French elite school, École Polytechnique, had not yet been 2019 as the exception Manager celebrated.