Allianz GI relaunches fixed income fund
Allianz Global Investors (Allianz GI) is set to convert its Allianz Sterling Total Return fund into a Strategic Bond fund, in a bid to capitalise on investments outside the UK and continental Europe as well as below investment grade bonds.
While the current format restricted the fund to invest primarily in bonds issued by UK and European corporates, governments, supranational institutions and local regional agencies and other securities, the Strategic Bond fund aimes to broaden the investment universe. At the same time, at least 80% of the fund remains invested in Sterling denominated securities in order to minimise currency risks.
The revised fund will continue to be run by Mike Riddell, UK Fixed Income portfolio manager. Riddell joined Allianz GI in October 2015, having previously run bond portfolios at M&G for 12 years.
The relaunched fund will have as its new benchmark the Barclays Global Aggregate hedged to Sterling. Riddell comments on the launch: “A more global unconstrained approach offers many more opportunities, and also makes sense from the point of view of our wider investment process. I’m confident that these changes can position the Allianz Strategic Bond Fund as a next generation bond fund.”