(Reuters) – Pension funds for truck drivers, teachers and subway workers have filed lawsuits in the United States against Germany's Allianz SE, one of the world's leading asset managers, for failing to hedge their investments during the coronavirus market meltdown. [19659002Marketpanicaroundthevirusthatresultedinbillionsinlossesearlierintheyearmanyinvestorsbelievethatanotherhigh-classmanagerisinfrontofalargenumberoflawsuitsintheUnitedStatesinconnectionwiththeturmoil
Together, the various complaints in the southern district of the United States New York claim a total of about $ 4 billion. The fallout has also prompted questions from the US Securities and Exchange Commission, says Allianz.
A spokesman for Allianz Global Investors said in a statement to Reuters: "Although the losses were disappointing, the applicants' allegations are legal and factual. deficient, and we will defend ourselves strongly against them. "
The complainants are professional investors who bought funds that 'entailed risks equivalent to the higher returns,'" the spokesman added.
The latest allegations against Allianz and its asset management. arm Allianz Global Investors last week includes one from the pension fund for the operator of New York's transportation system, the Metropolitan Transportation Authority. It has 70,000 employees and made an initial investment of $ 200 million.
Similar cases have been filed against Allianz by pension funds for the Teamster union, Blue Cross and Blue Shield, and Arkansas teachers. The costs seek a jury trial to award damages.
The suits claim that Allianz Global Investors, in its structured Alpha family of funds, deviated from a strategy of using alternatives to hedge against a short-term financial market crash.
The SEC's investigation continues and Allianz cooperates. The SEC did not respond to a request for comment.
Attracting investors with an "all-weather" investment method, Allianz "invested in the house" and "out of greed … sacrificed the hard-earned pension and the benefits of MTA workers, who at the time risked their lives during COVID that kept New York alive, "said the MTA trial.
The cases are a second front in disputes for Allianz, one of Europe's largest insurance companies. The Munich-based company and its competitors are facing lawsuits for non-payment of damages
The company's insurance business as a whole has been under pressure as it faces claims for canceled events and reduced demand for car and travel insurance.
At the end of March, Allianz informed investors that they had liquidated two funds, as well as an offshore feeder fund. of the funds, the costumes say.
In April, Morningstar downgraded its remaining fund ratings to negative "due to risk management protocol failure and uncertainty."
Allianz disputed that rating and published in July an internal report which found that the losses "were not the result of any failure in the portfolio's investment strategy or risk management processes."