Tr?id=566623520170033&ev=PageView&noscript=1

Allianz Terminates Two Portfolio Managers After Investment Fund Collapses

Posted on March 1st, 2022 at 1:47 PM
Allianz Terminates Two Portfolio Managers After Investment Fund Collapses

From the Desk of Jim Eccleston at Eccleston Law:

Allianz has fired two portfolio managers who monitored a group of investment funds that failed after generating massive losses at the outset of the pandemic, and after the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) announced plans to investigate.


The $15 billion Structured Alpha funds were supervised by Greg Tournant, a portfolio manager who joined Allianz Global Investors in 2002, according to the SEC. The DOJ already had begun investigating the Structured Alpha funds as early as last October for the potential misrepresentation of risk to investors, according to Reuters. Numerous fund investors, including several U.S. public pension funds, have filed suit against Allianz and are seeking a total of $6 billion in damages.


The Allianz funds typically utilized complex options strategies to generate returns. However, the outset of the pandemic sparked market volatility, which caused the funds to suffer severe losses, up to 80% in some cases. Some of the U.S. public pension funds are alleging that Allianz deviated from its proprietary investment strategy of hedging to limit downside risk. Allianz announced last week that it had approved $4.2 billion to be set aside to handle the aftermath, which will reduce compensation for its chief executive as well as other board members and cause the company to suffer a fourth-quarter loss.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston, eccleston law, SEC

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

1790960250 Law
October 2, 2026
FINRA Arbitrators Award Schwab Client $1.34 Million in Cryptocurrency Scam Dispute

A Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services arbitration panel awarded nearly $1.34 million in compensatory damages to a Charles Schwab & Co.

1790867615 Law
October 1, 2026
Prosecutors Target Multimillion-Dollar Investment Schemes Involving Promissory Notes

Federal prosecutors recently pursued two investment fraud cases involving promissory notes that caused combined investor losses exceeding $25 million.

1790789328 Law
September 30, 2026
SEC Approves FINRA Overhaul of Outside Business Activity Rules

The Securities and Exchange Commission (SEC) has approved FINRA's long-awaited overhaul of the rules governing outside business activities and private securities transactions by financial advisors.