Pension Funds Allege Allianz Mismanaged Assets
The Metropolitan Transportation Authority, the Teamsters, and pension money for police, firefighters, and metropolis workers in Fairfield, Connecticut, are amid the groups that have submitted six independent problems against Allianz Worldwide Traders. The suits allege that the German asset manager deviated from its expense mandate without having informing consumers and mismanaged money.
The problems, submitted in the Southern District of New York, say Allianz promised returns no matter of market place course and volatility.
“As a consequence of Allianz’s breaches, a sizeable part of [the pension plan] property meant to give retirement security to 1000’s of workers and their beneficiaries was wiped out,” a lawsuit submitted by health plan service provider the Blue Cross and Blue Defend Association said. The MTA, in its submitting, stated “negligent and imprudent” actions by Allianz had “decimated” the cost savings of crucial workers.
A spokesperson for Allianz stated the allegations had been “legally and factually flawed” and the claimants were professional buyers who “bought these hedge money in the information that they sought to supply sizeable returns.”
“As was fully disclosed, the money associated threats commensurate with these larger returns,” the spokesperson.
At the end of March, Allianz liquidated two hedge funds and an offshore feeder fund amid steep losses. In April, Morningstar downgraded the remaining money citing, “failure in risk management protocols and the uncertainty.” Allianz, in an inside overview, stated the losses had been not the consequence of failures in its expense approach or risk-management approach.
“In the midst of the market place downturn, the portfolio management group took energetic steps to decrease the portfolio’s risk, such as by changing then-present positions with a lot more conservative kinds — a restructuring approach implemented in previous market place downturns,” the organization stated in a report on its Structured Alpha Portfolio performance.
Allianz disputed Morningstar’s downgrade.
Traders in one of the money missing ninety seven%, in accordance to one lawsuit. Two of the money had sought returns of a thousand basis factors of alpha.