California Community Foundation, Los Angeles, has pulled $119 million in fixed income from PIMCO, protesting what foundation executives said was the failure of PIMCOs parent, Allianz AG, to fully disclose its Nazi-era insurance policies.
California law requires insurers to disclose information on all of the policies they wrote between 1920 and 1945 to facilitate identifying valid claims of Holocaust survivors and heirs. So far, Allianz has agreed to provide information on a maximum of 150,000 claims and has joined other insurers in suing to halt enforcement of the California law.
A letter from Jack Shakely, foundation president, to William S. Thompson, PIMCO president and CEO noted Allianzs efforts toward restitution, but added, We have found these incomplete and inadequate.
We remain confident that Allianzs continued role ... (in the international commission) will bring fair and prompt resolution to any remaining insurance issues relating to this tragic chapter of history, said a PIMCO statement.
The $545.5 million foundation adjusted its asset allocation, and plans to re-invest the $119 million with five existing active and passive equity fund managers, said Allan Parachini, vice president in charge of communications. He declined to name the firms.