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 am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

1784134373 Law
July 15, 2026
LPL Financial Faces Class Action Over Phoenix Annuity Disclosures

LPL Financial faces a proposed class action lawsuit alleging that the firm failed to warn annuity investors about the declining financial condition of Phoenix PHL Variable Insurance Company.

1784046159 Law
July 14, 2026
Mariner Wealth Advisors Reports Data Breach Affecting Nearly 9,000 Customers

Mariner Wealth Advisors LLC disclosed a data breach that exposed personal information of 8,995 customers, according to AdvisorHub.

1783957061 Law
July 13, 2026
FINRA Warns of Growing Risks From Finfluencers and AI-Driven Investment Content

Financial Industry Regulatory Authority (FINRA) regulators are raising concerns about the increasing influence of social media personalities and artificial intelligence (AI) on retail investors, particularly those managing their own investments without professional guidance.