Pension Funds Allege Allianz Mismanaged Assets
The Metropolitan Transportation Authority, the Teamsters, and pension resources for police, firefighters, and metropolis workforce in Fairfield, Connecticut, are amid the groups that have filed 6 independent complaints against Allianz World-wide Buyers. The satisfies allege that the German asset supervisor deviated from its investment mandate with no informing consumers and mismanaged resources.
The complaints, filed in the Southern District of New York, say Allianz promised returns regardless of market way and volatility.
“As a consequence of Allianz’s breaches, a significant part of [the pension system] property meant to supply retirement security to countless numbers of workforce and their beneficiaries was wiped out,” a lawsuit filed by health system company the Blue Cross and Blue Defend Affiliation said. The MTA, in its filing, mentioned “negligent and imprudent” actions by Allianz experienced “decimated” the personal savings of essential workers.
A spokesperson for Allianz mentioned the allegations had been “legally and factually flawed” and the claimants were professional traders who “bought these hedge resources in the knowledge that they sought to provide significant returns.”
“As was thoroughly disclosed, the resources included challenges commensurate with these higher returns,” the spokesperson.
At the stop of March, Allianz liquidated two hedge funds and an offshore feeder fund amid steep losses. In April, Morningstar downgraded the remaining resources citing, “failure in danger management protocols and the uncertainty.” Allianz, in an inner assessment, mentioned the losses had been not the consequence of failures in its investment strategy or danger-management process.
“In the midst of the market downturn, the portfolio management crew took active measures to reduce the portfolio’s danger, including by changing then-current positions with extra conservative kinds — a restructuring process executed in earlier market downturns,” the organization mentioned in a report on its Structured Alpha Portfolio performance.
Allianz disputed Morningstar’s downgrade.
Buyers in one of the resources missing ninety seven{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}, according to one lawsuit. Two of the resources experienced sought returns of one thousand foundation points of alpha.
