Allianz, the parent company of PIMCO, assuredly doesn’t want the additional attention at this sensitive time, but when it rains, it pours. Plan participants of the Allianz retirement plan sue their own company. The class action lawsuit charges the plan for a breach of fiduciary duty for excessive fees since the plan’s investment lineup is filled with proprietary, in-house funds. However, they are in good company since other investment heavyweights - Fidelity, MassMutual, and Principal - have faced or are facing similar legal challenges.
What’s the larger lesson here? The way we see it, even industry experts are not immune from the burdens of fiduciary responsibility and the potential for blind-spots to weakness. Be sure to get some professional outside counsel to provide assurances that you are meeting your fiduciary duties.