Allianz GI to expand emerging market fund range

Allianz Global Investors has announced the launch of the Allianz Emerging Markets Equity Opportunities fund managed by Kunal Ghosh.

The new Luxembourg-domiciled fund gives investors in Europe the opportunity to access emerging markets using a systematic approach based on proprietary fundamental stock forecasts exploiting existing market inefficiencies, Allianz GI said.

The fund’s strategy has a long track record in the US and is now registered in Luxembourg. Overall, the San Diego team led by Kunal Ghosh (pictured) manages more than US$1.8bn.

“Emerging markets have become the fastest growing component of the world economy, and their contribution is expected to rise. Many businesses within these markets have the potential to profit as countries build out their infrastructures and a strengthening base of consumers demands a better quality of life,” Allianz GI’s announcement reads.

Kunal Ghosh, manager of the Allianz Emerging Markets Equity Opportunities fund, comments: “Greater financial and political stability, a burgeoning consumer base and abundant natural resources are powering many emerging market countries, creating attractive investment opportunities.

“This is set to continue as domestic consumption is the key driving force for emerging economies supported by wage inflation. The growth of middle-class consumers in developing nations is a significant global trend which means emerging markets still represent one of the few genuine growth stories investors are able to access.”

Ghosh also highlighted that the fund will capitalise on this opportunity and invest in 100-150 companies with attractive risk/reward profiles based on a disciplined approach to stock selection, sensible risk controls and an alpha confirmation process with the aim to deliver consistent risk-adjusted returns over time.

Nick Smith, head of European Retail Sales (Ex-Germany) at AllianzGI, comments: “Emerging markets have been identified as having the ability to generate real inflation-beating returns, in a long lasting era of financial repression. The story for growth in emerging markets is well understood, with favourable demographics, increasing affluence and growing economies these are the countries of the future.”

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