Teachers pension fund sues AllianzGI over Covid-induced losses

'Reckless strategy'

Lauren Mason
clock
Arkansas Teacher Retirement System sues AllianzGI for "reckless strategy"
Image:

Arkansas Teacher Retirement System sues AllianzGI for "reckless strategy"

An Arkansas-based teachers pension fund has sued Allianz Global Investors for costing retirees in the scheme approximately $800m so far this year in what it has described as a "reckless strategy".

The Arkansas Teacher Retirement System claims that AllianzGI's 'market-neutral' Structured Alpha funds put bets in place earlier in the year against the S&P 500 index falling further as the pandemic began to rear its head, shortly before it tumbled 8.5% in February then by a further 12.5% in March.   The pension fund claims that, by doubling down on unprofitable trades, Allianz's investors became "dangerously exposed to even the slightest increase in market volatility or decline in equity prices", despite the vehicles being advertised as being able to protect investors during falling mar...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Industry

Majedie Asset Management's Rob Harris

Liontrust share price rises following 'surprise' Majedie Asset Management purchase

Increases Liontrust's AUM to £42.3bn

Lauren Mason
clock 07 December 2021 • 3 min read
Merger and acquisition

R&M share price rockets 13% as Premier Miton and AssetCo eye up deals

R&M already selling one division to shareholders

clock 23 November 2021 • 2 min read
The FCA first warned market participants to prepare for the cessation of LIBOR in 2017

FCA to introduce 'synthetic' LIBOR rates as year-end conversion 'not practicable'

For duration of 2022

Lauren Mason
clock 29 September 2021 • 2 min read
Trustpilot