November 27, 2022

Paull Ank Ford

Business Think different

Pension Funds Allege Allianz Mismanaged Assets

The Metropolitan Transportation Authority, the Teamsters, and pension funds for police, firefighters, and city personnel in Fairfield, Connecticut, are among the groups that have filed six separate issues against Allianz World-wide Traders. The satisfies allege that the German asset manager deviated from its expense mandate with out informing customers and mismanaged funds.  

The issues, filed in the Southern District of New York, say Allianz promised returns irrespective of sector direction and volatility 

“As a result of Allianz’s breaches, a significant part of [the pension strategy] assets meant to deliver retirement stability to hundreds of personnel and their beneficiaries was wiped out,” a lawsuit filed by health strategy supplier the Blue Cross and Blue Protect Affiliation said. The MTA, in its submitting, reported “negligent and imprudent” actions by Allianz experienced “decimated” the financial savings of important workers.  

A spokesperson for Allianz reported the allegations had been “legally and factually flawed” and the claimants were professional traders who “bought these hedge funds in the expertise that they sought to provide significant returns.”  

“As was absolutely disclosed, the funds involved risks commensurate with all those greater 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 danger administration protocols and the uncertainty.” Allianz, in an interior evaluation, reported the losses had been not the result of failures in its expense tactic or danger-administration course of action.  

In the midst of the sector downturn, the portfolio administration workforce took lively measures to reduce the portfolio’s danger, such as by changing then-existing positions with more conservative kinds — a restructuring course of action applied in previous sector downturns,” the company reported in a report on its Structured Alpha Portfolio performance.  

Allianz disputed Morningstar’s downgrade.  

Traders in one particular of the funds missing ninety seven%, in accordance to one particular lawsuit. Two of the funds experienced sought returns of 1000 foundation factors of alpha.

 (Picture by Markus Matzel/ullstein bild by using Getty Photos)
Allianz World-wide Traders, Fairfield, Metropolitan Transit Authority, pension funds, Teamsters