Florida Pension Funds Sue Barclays Over $17.6 Billion Debt Over-Issuance

The Miami pensions call the bank’s failure to prevent massive error ‘deliberately reckless.’



Two Florida pension plans are suing Barclays, alleging that the company defrauded investors by failing to disclose in a Securities and Exchange Commission filing that subsidiary Barclays Bank had erroneously over-issued $17.64 billion worth of debt.

“Given the potential exposure to the securities laws and legal liability from the over-issuance of securities,” says the lawsuit, “the failure to have controls in place to account for the number of securities issued against the number of securities registered is such an elementary failure of internal control that is so obvious as to be deliberately reckless.”

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The class action lawsuit was filed in the U.S. District Court for the Southern District of New York by the City of North Miami Beach Police Officers’ and Firefighters’ Retirement Plan and the City of North Miami Beach General Employees’ Retirement Plan. The pension funds claim they suffered financial losses when the share price of Barclays’ American depositary receipts fell as a result of the error.

The complaint alleges that Barclays’ internal controls over its financial reporting were faulty, and that “there was a material weakness in those controls” when on February 18 subsidiary Barclays Bank issued and sold more than $17.6 billion in unregistered securities over and above the maximum amount of securities registered in two of its shelf registration statements.

“The over-issuance and sale of these unregistered securities was also a violation of U.S. securities laws and/or SEC regulations, and subjected Barclays to legal liability and claims of rescission,” says the complaint.

The lawsuit also alleges that two of Barclays’ 2021 quarterly earnings releases—one that was published the same day as the over-issuance and the other five days later—were “materially false and misleading” because they did not mention the error. The complaint says Barclays informed investors in those releases that the company’s internal controls over its financial reporting were effective, but alleges that Barclays’ “internal controls over financial reporting were not effective, and there was a material weakness in those controls.”

Representatives for Barclays could not immediately be reached for comment.

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Australian Pension Aware Super Launches Real Estate Platform

Pension fund aims for Aware Real Estate to manage more than A$7 billion in assets within five years.



Australian pension fund Aware Super has launched a real estate platform that it says will actively manage its directly owned Australian living, industrial, office and mixed-use property portfolio.

A press release from the pension fund says the portfolio currently consists of 11 operational assets with 99% occupancy, and eight development sites in various stages of planning. The release also says that the fund hopes the platform, called Aware Real Estate, will have A$7 billion ($4.6 billion) in assets within five years. Australian real estate investment manager Altis Property Partners will provide the new unit with support services.  

“We already have a $1.7 billion real estate portfolio, which we’re excited to further expand in the Australian market,” Aware Real Estate CEO Michelle McNally said in a statement.

The release says the property platform will help reduce members’ fees, diversify the fund’s real estate holdings and deliver strong returns. It also says the fund intends to increase its internally managed portfolio across all asset classes to 50% by 2025.

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McNally said one of the core strategic focuses of Aware Real Estate’s investment strategy is to be a leader in the build-to-rent sector. She noted that it already has 500 residential apartments across the country, and a pipeline of another 1,200 apartments Aware Real Estate intends to grow and develop.  

“Our focus is on sites close to important urban infrastructure like hospitals, schools and transport, to make sure essential workers can live closer to work and reduce commuting time,” McNally said. “By offering discounted rents to essential workers in highly desirable buildings, we not only increase the values attached to these sites, but attract reliable tenants who have employment stability and feel connected to the product.”

Aware Super, which has more than 1 million members and manages A$155 billion in assets, is one of Australia’s largest funds following its 2020 merger with VicSuper and WA Super.

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