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 want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

1782497406 Law
June 26, 2026
FINRA Seeks to Make Remote Inspection Program Permanent

The Financial Industry Regulatory Authority (FINRA) is seeking approval from the Securities and Exchange Commission (SEC) to make its pandemic-era remote inspections program permanent before the current pilot is scheduled to expire in June 2027, according to AdvisorHub and FINRA's summary of its recent Board of Governors meeting.

1782400213 Law
June 25, 2026
SEC Alleges Illinois Investment Adviser Misappropriated Investor Funds and Concealed Losses

According to a litigation release published on SEC.gov, the Securities and Exchange Commission (SEC) has charged John Sterling Myers and his firms, Sterling Capital, LLC and Sterling Capital Management, LLC, with orchestrating a multi-year fraud involving investor funds held in a pooled investment vehicle.

1782320106 Law
June 24, 2026
FINRA Suspends Former Broker Over Undisclosed Business Activities, Annuity Recommendation, and Customer Data Violations

The Financial Industry Regulatory Authority (FINRA) has suspended former registered representative Clayton K.