Allianz GI launches additional shares for equity small cap fund
Allianz Global Investors has launched additional retail and institutional shares for its Allianz Global Small Cap Equity fund, which launched in June 2013.
The Luxembourg domiciled fund, managed by Andrew Neville (pictured), is registered in Austria, Finland, France, Germany, Luxembourg, Netherlands, Norway, Sweden and the United Kingdom.
It aims to outperform the MSCI World Small Cap Index Total Return, with a portfolio that aggregates four regional sub-portfolios covering North America, Europe, Japan and Asia. Weightings to each of these four is done according to the benchmark, using best ideas from four dedicated standalone Allianz GI regional small cap portfolios.
The approach results in the fund investing in up to 190 smaller companies, with a market cap of at least $400m.
Neville said: “In an environment of low growth and higher inflation, Global Smaller Companies could provide sustainable profit growth. There are 16,000 Global Small Caps worldwide, which represent 25% of the World’s market capitalisation. Small companies tend to be managed locally with a global reach, so the fund will benefit from AllianzGI’s GrassrootsSM Research. This allows us to draw on our on-the-ground presence and deep understanding of local languages, local cultures and local practices.”
“The new share class offers diversification for retail investors looking for premium equity return potential over the longer term. Investing in global smaller companies could provide investors with good growth potential and attractive risk/reward profiles.n environment of low interest rates, the Global Small Caps segment offers structural benefits like flexible and agile company management. Additionally, an active stock selection based on substantial inefficiencies could help generate returns for investors.”