The four products are sub-funds of the Hong Kong-domiciled Allianz Global Investors Asia Fund umbrella unit trust, which was set up in September 2014.
“The funds are basically diversified portfolios with different asset allocations in equities and bonds to meet different investor profiles,” a spokeswoman for Allianz Global Investors (GI) told FSA.
They received authorisation from Hong Kong’s Securities and Futures Commission last week, and are meant to cater for different levels of risk acceptance, reflected in their names: the Allianz Selection Diversified Aggressive Growth Fund, Allianz Selection Diversified Conservative Fund, Allianz Selection Diversified Moderate Growth Fund, and the Allianz Selection Diversified Stable Growth Fund.
“We think that investors should not underestimate the importance of risk management, especially under the current volatile environment,” said the spokeswoman.
An aggressive growth fund typically seeks capital gains by investing in the shares of companies that demonstrate high earnings growth potential, but also carry more risk and experience greater price volatility.
A conservative fund emphasises capital preservation and focuses oncompanies with solid balance sheets and steady earnings; it might also have a large allocation to investment grade fixed income securities, especially developed market government bonds.
A moderate growth fund values higher long-term returns and is willing to accept some risk, and is comfortable with short-term fluctuations in exchange for seeking capital appreciation that at least outpaces inflation.
A stable growth fund aims to minimise short-term volatility, but still hopes generate capital returns over time.
According to the spokeswoman, “the purpose of launching this series of funds is to offer a packaged solution of truly diversified portfolios by leveraging on [the firm’s] wide spectrum of investment vehicles offered.”
Active and passive strategies will also be incorporated in the portfolios “to help investors navigate different market cycles, and to secure good performance from multiple return drivers,” she said, but was unable to provide more specific details about the funds’ strategies and likely compositions.
The firm has already launched products under the Hong Kong umbrella fund, including the $2bn Allianz Selection European Equity Dividend and the $396m Allianz Selection Income and Growth funds.
The euro-based Allianz Selection European Equity Dividend Fund is down 16.3% (in US dollar terms) over the past three years, compared with -1.6% for its sector average and a positive 4.1% cumulative return by its MSCI Europe index benchmark, according to FE Fundinfo data.
The benchmark-agnostic Allianz Selection Income and Growth Fund has generated a 10.44% cumulative three-year return, outperforming its international mixed-asset fund peers whose average return barely broke even at 0.17%, according to FE Fundinfo.
Allianz GI manages assets worth $578bn, and operates in 27 locations around the world, according to the Munch-based firm’s website.
