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 the groups that have filed 6 individual grievances against Allianz Global Traders. The fits allege that the German asset supervisor deviated from its financial commitment mandate with no informing shoppers and mismanaged money.
The grievances, filed in the Southern District of New York, say Allianz promised returns regardless of sector way and volatility.
“As a final result of Allianz’s breaches, a sizeable portion of [the pension system] property meant to supply retirement protection to hundreds of employees and their beneficiaries was wiped out,” a lawsuit filed by well being system company the Blue Cross and Blue Shield Affiliation said. The MTA, in its filing, claimed “negligent and imprudent” actions by Allianz experienced “decimated” the price savings of critical personnel.
A spokesperson for Allianz claimed the allegations were being “legally and factually flawed” and the claimants were professional buyers who “bought these hedge money in the awareness that they sought to supply sizeable returns.”
“As was completely disclosed, the money involved challenges commensurate with people better returns,” the spokesperson.
At the finish 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 inside assessment, claimed the losses were being not the final result of failures in its financial commitment method or danger-management method.
“In the midst of the sector downturn, the portfolio management team took lively steps to decrease the portfolio’s danger, including by changing then-current positions with extra conservative ones — a restructuring method carried out in previous sector downturns,” the corporation claimed in a report on its Structured Alpha Portfolio performance.
Allianz disputed Morningstar’s downgrade.
Traders in 1 of the money missing ninety seven%, according to 1 lawsuit. Two of the money experienced sought returns of one thousand foundation details of alpha.
