LOS ANGELES -- The $546 million California Community Foundation has pulled $119 million in fixed income from PIMCO, protesting what foundation executives said is the failure of PIMCO's 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. Allianz has agreed to provide information on a maximum of 150,000 claims, and has joined other insurers and an insurance trade organization in suing to halt enforcement of the California law.
Allianz is a member of an international commission working to bring restitution to survivors and Nazi victims' heirs, he said.
And the international group has the jurisdiction to settle and pay these claims, said Jay Jacobs, PIMCO vice president. "Those parties to the international agreement are obligated to oppose efforts by states and other entities to circumvent the international process," he added.
Because of withdrawing the money, the foundation has 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.