June 21, 2024

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Pension Funds Allege Allianz Mismanaged Assets

The Metropolitan Transportation Authority, the Teamsters, and pension funds for police, firefighters, and town staff members in Fairfield, Connecticut, are between the groups that have submitted 6 individual complaints against Allianz World-wide Investors. The suits allege that the German asset manager deviated from its investment decision mandate devoid of informing shoppers and mismanaged funds.  

The complaints, submitted in the Southern District of New York, say Allianz promised returns irrespective of marketplace way and volatility 

“As a outcome of Allianz’s breaches, a considerable portion of [the pension strategy] assets intended to supply retirement protection to countless numbers of staff members and their beneficiaries was wiped out,” a lawsuit submitted by overall health strategy service provider the Blue Cross and Blue Defend Affiliation said. The MTA, in its submitting, explained “negligent and imprudent” actions by Allianz experienced “decimated” the personal savings of important employees.  

A spokesperson for Allianz explained the allegations had been “legally and factually flawed” and the claimants were professional traders who “bought these hedge funds in the information that they sought to supply considerable returns.”  

“As was totally disclosed, the funds involved risks commensurate with all those larger returns,” the spokesperson.  

At the close of March, Allianz liquidated two hedge funds and an offshore feeder fund amid steep losses. In April, Morningstar downgraded the remaining funds citing, “failure in possibility management protocols and the uncertainty.” Allianz, in an inside critique, explained the losses had been not the outcome of failures in its investment decision strategy or possibility-management procedure.  

In the midst of the marketplace downturn, the portfolio management staff took lively actions to reduce the portfolio’s possibility, such as by replacing then-existing positions with more conservative kinds — a restructuring procedure implemented in past marketplace downturns,” the business explained in a report on its Structured Alpha Portfolio performance.  

Allianz disputed Morningstar’s downgrade.  

Investors in just one of the funds missing 97%, according to just one lawsuit. Two of the funds experienced sought returns of a thousand basis details of alpha.

 (Photo by Markus Matzel/ullstein bild via Getty Visuals)
Allianz World-wide Investors, Fairfield, Metropolitan Transit Authority, pension funds, Teamsters