Data & Research June 28, 2010

Allianz Creates Behavioral Finance Think Tank

Allianz Global Investors has created the Allianz Global Investors Center for Behavioral Finance and hired behavioral finance expert Shlomo Benartzi of UCLA as chief behavioral economist.

Reported by

A news release said the new research unit is part of the company’s overall effort to provide relevant information and resources to financial advisers, plan sponsors, and investors. 

According to the announcement, the center will focus on:  

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  • Behavioral Finance Research and Education: The Center will provide financial advisers, investors, and plan sponsors with behavioral finance research and educational tools.  
  • Investing and Risk Management:The Center will leverage behavioral finance to enhance investment processes and risk management.  
  • Retirement and Post-Retirement Products and Solutions:The Center will also help to link behavioral finance research to the needs of the Retirement and Post-Retirement market segments.  

“The behavioral finance toolbox has proven to be an effective mechanism for understanding how individuals make financial decisions,” said Benartzi, in the announcement. “Applying the insights from behavioral finance is critical to designing better financial solutions for investors, and I am delighted that Allianz Global Investors has made such a strong commitment to this field of study.”  

Compliance June 28, 2010

Lanier Law Firm Investigating BP 401(k)

The Lanier Law Firm is investigating possible legal claims related to a 401(k) retirement plan for U.S. employees of BP.  
Reported by

The law firm said it believes there are potential violations of the Employee Retirement Income Security Act (ERISA) by those in charge of BP’s retirement plan, the BP Employee Savings Plan (ESP). According to a press release, at the end of 2009, BP’s U.S. Employee Savings Plan had more than $2 billion invested in BP stock. Since the explosion and eruption of oil, BP’s stock price has fallen by approximately half, accounting for more than $100 billion in lost stock value.  

The retirement plans for many company employees are tied to the stock, costing them what is believed to be hundreds of millions of dollars, the announcement said. 

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The law firm has identified several potential legal claims for participants in the BP Employee Savings Plan whose accounts included units from the BP stock fund. More information is at http://www.lanierlawfirm.com. 

This is the fourth law firm to announce such an investigation into the BP plan (see http://www.plansponsor.com/Yet_Another_Law_Firm_Targets_BP.aspx (Yet) Another Law Firm Targets BP). 

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