Allianz Global Investors, the €721bn ($920bn) funds arm of the German insurer, has folded PEA Capital, the US firm embroiled in the 2004 market timing scandal, into another subsidiary, following asset outflows of 60% from the business in the last three years.

PEA Capital, which has $4.3bn in US value equities under management, became part of Allianz when the insurer acquired the fund management group Pimco, which included PEA, in 2000.