Skip to content
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

THE UGLY PENSION TREND

The Arkansas Teacher Retirement System has sued Allianz Global Investors, charging the financial management firm pursued a “reckless strategy” during the economic shutdown that cost the pension fund $800 million.
The retirement fund says Allianz’s Alpha Funds made bets that investment markets would not lose money during the shutdowns in an attempt to cover losses due to the same strategy the company followed in February.
After losing 8.5 percent in February, the S&P500 lost 12.5 percent in March.
The pension fund contends that Allianz should have managed money for safety instead of to lose money if markets fell further.
In doing so, Allianz did not just make a “bad call” but abandoned risk controls that should have buffered the pension fund’s principal, the suit charges.
Allianz said the suit “mischaracterized” the company’s behavior and “there is no basis for legal liability.”
TREND FORECAST: We noted this particular pension fund incident since it is part of a much bigger trend. Beyond losing pensions as a result of bad investments – which we forecast will sharply accelerate as equity markets and currencies collapse – with nations, states, and cities going down and going broke, there will not be enough tax revenue to cover government employee pensions.

Comments are closed.