Allianz Global Investors has announced the launch of the Allianz Emerging Markets Flexible Bond Fund.
“We firmly believe that strong economic-growth prospects, favourable demographics and markedly improving fundamentals mean that emerging markets debt (EMD) is set to perform over the longer- term, despite any liquidity risk from a rise in US interest rates or country-specific geo-political tensions,” said Greg Saichin, CIO of AllianzGI’s EMD business and a 26-year veteran of the asset class.
The Allianz Emerging Markets Flexible Bond fund will invest across the full range of emerging markets debt instruments, including companies and countries of any credit rating or currency. The flexible approach enables the fund’s experienced team to construct a portfolio based on their conviction views of an asset class where individual securities can exhibit an exceptionally wide range of risk and return.
“The launch of this fund represents a significant milestone in our plan to make AllianzGI a benchmark in global emerging markets debt management. As a team of active, specialist EMD managers we understand and are able to navigate the diverse risks associated with this vast and varied asset class,” added Saichin, who has been a flexible bond investor for nearly 10 years having been an early pioneer of the approach.
Nick Smith, Head of European Retail Sales (Ex-Germany) at AllianzGI, added:
“This fund, which covers the full EMD spectrum, will give investors the opportunity to access carefully identified, high-conviction growth opportunities across some of the world’s most dynamic and diverse geographies, currencies and sectors.”
“This is an asset class where experience really counts. With no two emerging markets the same, our regional teams are able to act in clients’ interests in local time, using their skilled, experienced eyes to unlock the very best buying opportunities.”
The fund is a Luxembourg domiciled SICAV, available through the AGIF (Allianz Global Investors Funds) platform, a vehicle AllianzGI uses to distribute its funds to a number of markets across the globe. The fund is currently available to institutional investors in the UK and will be made available to retail investors later this year.
AllianzGI’s Emerging Market Debt franchise was launched in October 2013 on the conviction that emerging economies will expand more quickly than developed markets, offering potential for superior returns. The team is now 10 strong, with portfolio managers and analysts in London, New York and Hong Kong.