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Germany’s Allianz and its U.S. funds troubles -Breaking


© Reuters. FILEPHOTO: Allianz Global Investors’ logo was taken at Frankfurt headquarters, Germany on August 16, 2021. Picture taken August 16, 2021. REUTERS/Tilman Blasshofer


FRANKFURT, (Reuters) – Germany’s Allianz has paid $6 billion. The U.S. Asset Management Unit of Allianz will also plead guilty. This is after a number of multibillion-dollar investment funds crashed due to market turmoil triggered in part by the 2020 coronavirus pandemic.

This timeline shows the key events of this saga. It is based upon court documents, corporate disclosures, archived sites, public statements and minutes from investor meetings.


Allianz’s U.S. assets management arm sets up the Structured Alpha funds managed by Greg Tournant.


Arkansas’ retirement fund for teachers, which later became the first to sue Allianz about its investment in these funds, owns $19.4million in Allianz stock. This is its fourth largest holding in foreign companies.


Arkansas’ pension fund made an initial investment into Allianz’s Structured Alpha Funds.


Arkansas chooses to increase its Allianz fund investment. They also attracted pensions funds to serve workers in Alaska, and New York’s subway workers.


Marketing material describes the funds as “a tested & proven solution” and “consistently above target”. The funds are described as “a confidence strategy that is infused with insurance spirit”.


Structured Alpha in Arkansas has a market capitalization of $1.6 Billion at the end 2019 – a large portion of its $18.3B fund.


January: Global stock markets fall amid concerns about the spread of coronavirus.

February 3, 2013 – Chief Economic Advisor of Allianz Mohamed El-Erian warns CNBC viewers to “not buy the dip” as the coronavirus crisis is unprecedented.

March 13th – Aon (NYSE 🙂 has issued a warning to Structured Alpha investors with a flash report stating that it had reassessed the Structured Alpha funds.

March 25, 2018 – Allianz announced the liquidation two of its hard-hit funds. According to legal documents, investors are told that Tournant was the chief fund manager and had been sick for several weeks.

March 27, 2017 – Allianz states it is committed to the franchise, and that “the remaining funds” are well positioned. However, Aon has released another report suggesting a “sell”.

March 31, 2017 – Arkansas’s first quarter saw a 78% drop in one of its funds, while the benchmark experienced a 22% decline.

April 6, 2006 – Arkansas’s fund board votes to end Allianz funds. BlackRock will store the profits with BlackRock.

June 30, 2006 – Allianz is sued by the Arkansas Fund’s Board of Directors.

July 20, Arkansas files a suit with the U.S. Southern District New York claiming $774 Million in losses.

July 21 Allianz releases a paper that states “losses weren’t due to portfolio strategy failures or risks management processes.” The paper has been taken down from the Internet.

August 4, 2008 – Allianz reveals that the SEC has begun an investigation.

September – Many other investors filed suit similar to Arkansas’s by this time, and many more were soon followed.


May – The U.S. Department of Justice approaches Allianz to obtain information about the funds.

August 1 Allianz discloses publicly the DOJ investigation, and claims it might take a financial penalty.

Aug. 2 – Allianz shares drop 7.8%.

Aug. 7, Oliver Baete is Allianz’s chief executive officer. He describes “a horrible week” but admits that not everything in the fund management was perfect.

September 10 – Reuters reports the DOJ investigating potential misconduct in fund management and misrepresentation risk to investors.


February 17th, 2018: Allianz has announced that they will have 3.7 billion euros (or 3.90 billion dollars) set aside to handle lawsuits and investigations. According to reports, 2021 profits were the lowest since 2013.

Feb. 18, 2008 – Allianz announces bonus reductions for its CEO, board and settlement with a large majority of investors.

Feb. 28, 2008 – A lot of large investors are filing to end lawsuits.

March 3, Arkansas settles for $642 Million, as per a court record and minutes of a board meeting.

March 4, 2018 – Allianz’s annual report reveals that Allianz Chief executive Oliver Baete was paid 9% less in 2021, despite his cut in bonus for the fund saga.

May 11, 2012 – Allianz set aside another 1.9 million euros for settlement of litigation and to pay any U.S. regulator fines. nL5N2X327P]

May 17, 2017 – Allianz agrees to $6 billion in payments and that its U.S. Asset Management unit will be guilty of fraud.

($1 = 0.9496 euros)