Pension Funds Allege Allianz Mismanaged Assets

The Metropolitan Transportation Authority, the Teamsters, and pension money for police, firefighters, and city employees in Fairfield, Connecticut, are among the groups that have filed 6 independent grievances against Allianz World Investors. The fits allege that the German asset manager deviated from its expenditure mandate without informing purchasers and mismanaged money.  

The grievances, filed in the Southern District of New York, say Allianz promised returns no matter of market way and volatility 

“As a result of Allianz’s breaches, a sizeable part of [the pension plan] property intended to offer retirement stability to 1000’s of employees and their beneficiaries was wiped out,” a lawsuit filed by health and fitness plan supplier the Blue Cross and Blue Defend Association said. The MTA, in its filing, reported “negligent and imprudent” actions by Allianz experienced “decimated” the financial savings of critical employees.  

A spokesperson for Allianz reported the allegations were “legally and factually flawed” and the claimants were professional investors who “bought these hedge money in the knowledge that they sought to produce sizeable returns.”  

“As was totally disclosed, the money concerned risks commensurate with these increased 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 money citing, “failure in danger management protocols and the uncertainty.” Allianz, in an interior critique, reported the losses were not the result of failures in its expenditure tactic or danger-management course of action.  

In the midst of the market downturn, the portfolio management crew took lively actions to reduce the portfolio’s danger, which include by replacing then-current positions with much more conservative types — a restructuring course of action carried out in previous market downturns,” the organization reported in a report on its Structured Alpha Portfolio performance.  

Allianz disputed Morningstar’s downgrade.  

Investors in one particular of the money shed 97{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105}, according to one particular lawsuit. Two of the money experienced sought returns of 1000 basis factors of alpha.

 (Image by Markus Matzel/ullstein bild through Getty Pictures)
Allianz World Investors, Fairfield, Metropolitan Transit Authority, pension money, Teamsters