The Metropolitan Transportation Authority, the Teamsters, and pension money for law enforcement, firefighters, and town personnel in Fairfield, Connecticut, are between the groups that have submitted six individual issues against Allianz Worldwide Traders. The fits allege that the German asset supervisor deviated from its investment decision mandate with out informing clients and mismanaged money.
The issues, submitted in the Southern District of New York, say Allianz promised returns regardless of market way and volatility.
“As a end result of Allianz’s breaches, a considerable part of [the pension approach] assets intended to present retirement safety to hundreds of personnel and their beneficiaries was wiped out,” a lawsuit submitted by health and fitness approach provider the Blue Cross and Blue Protect Association said. The MTA, in its submitting, claimed “negligent and imprudent” steps by Allianz experienced “decimated” the savings of essential personnel.
A spokesperson for Allianz claimed the allegations were “legally and factually flawed” and the claimants were professional investors who “bought these hedge money in the awareness that they sought to provide considerable returns.”
“As was fully disclosed, the money involved pitfalls commensurate with those 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 money citing, “failure in threat administration protocols and the uncertainty.” Allianz, in an interior critique, claimed the losses were not the end result of failures in its investment decision system or threat-administration method.
“In the midst of the market downturn, the portfolio administration workforce took active actions to lower the portfolio’s threat, like by replacing then-current positions with more conservative kinds — a restructuring method executed in past market downturns,” the enterprise claimed in a report on its Structured Alpha Portfolio performance.
Allianz disputed Morningstar’s downgrade.
Traders in one particular of the money missing ninety seven%, according to one particular lawsuit. Two of the money experienced sought returns of 1000 basis points of alpha.