Arkansas Teacher Retirement System Files Lawsuit Against Allianz over Losses Incurred On Investments In Allianz Structured Alpha Products
Posted on 07/22/2020
Revealed on July 21, 2020, Arkansas Teacher Retirement System (ATRS) filed a complaint in the United States District Court for the Southern District of New York seeking to recover the losses it incurred as a result of negligence and breaches of fiduciary and contractual duties by Allianz Global Investors U.S. LLC and related defendants (Allianz SE).
According to the press release, “The complaint alleges that ATRS invested in the Structured Alpha U.S. Equity 250 LLC, the Structured Alpha Global Equity 350 LLC, and the Structured Alpha Global Equity 500 LLC, which each had an investment strategy designed to provide stable returns and protection during a market downturn. The complaint alleges that Allianz deviated dramatically from the market-neutral strategy its contracts and fiduciary obligations required it to follow.
The complaint also alleges that, once the Alpha funds started incurring losses in February, Allianz took a series of actions in further contravention of the risk-management principles and investment strategy it was required to follow that exacerbated the losses in the Alpha funds.
ATRS is taking this important action in order to protect the assets it holds in trust for the retirement of current and retired school teachers and other beneficiaries, and to hold Allianz accountable for its wrongful conduct.”
