The Metropolitan Transportation Authority, the Teamsters, and pension funds for law enforcement, firefighters, and metropolis staff members in Fairfield, Connecticut, are amid the groups that have submitted 6 independent problems against Allianz World Investors. The suits allege that the German asset manager deviated from its financial commitment mandate devoid of informing consumers and mismanaged funds.
The problems, submitted in the Southern District of New York, say Allianz promised returns regardless of current market way and volatility.
“As a consequence of Allianz’s breaches, a considerable portion of [the pension approach] property intended to present retirement security to thousands of staff members and their beneficiaries was wiped out,” a lawsuit submitted by wellness approach provider the Blue Cross and Blue Defend Affiliation said. The MTA, in its filing, explained “negligent and imprudent” actions by Allianz had “decimated” the cost savings of important staff.
A spokesperson for Allianz explained the allegations ended up “legally and factually flawed” and the claimants were professional traders who “bought these hedge funds in the information that they sought to produce considerable returns.”
“As was absolutely disclosed, the funds included threats commensurate with people higher 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 funds citing, “failure in danger management protocols and the uncertainty.” Allianz, in an inner assessment, explained the losses ended up not the consequence of failures in its financial commitment strategy or danger-management course of action.
“In the midst of the current market downturn, the portfolio management staff took lively methods to cut down the portfolio’s danger, like by replacing then-existing positions with far more conservative kinds — a restructuring course of action carried out in earlier current market downturns,” the business explained in a report on its Structured Alpha Portfolio performance.
Allianz disputed Morningstar’s downgrade.
Investors in a single of the funds dropped 97%, according to a single lawsuit. Two of the funds had sought returns of a thousand foundation details of alpha.