rdr forces allianz gi to close funds

Allianz Global Investors has pulled the plug on three UK-focused equity funds, citing the implementation of RDR and ‘financial repression’ as the twin drivers of such a move.

rdr forces allianz gi to close funds


The asset manager said it believes the UK fund management industry is undergoing fundamental long-term changes and in order to meet the needs of clients in this new environment it has had to adapt its range.

The focus of the UK adviser business within Allianz GI will now be multi-asset solutions in the shape of its RiskMaster suite of funds and return-oriented strategies such as its Bric Stars, Brazil, Renminbi Fixed Income and European Equity Income funds, as well as a handful of others.

In its UK equity fund range, Allianz will close its UK equity, UK index and UK growth funds, with investors offered the option of rolling into an appropriate RiskMaster fund.

The rest of the UK Oeic range will remain unchanged, with Simon Gergel left at the helm of the UK Equity Income Fund, Andrew Neville to stay as the manager of the UK Mid Cap Fund and Jeremy Thomas and Matthew Tillett to continue co-managing the UK Unconstrained Fund.

Allianz GI said it considered all of these strategies to have the potential to deliver real returns in a low growth environment.

Nick Smith, head of retail sales in Europe ex Germany, said: “Globally, Allianz Global Investors is responding to the changing investment landscape by focusing its business on delivering solutions for investors in two developing but discrete areas: risk- or outcome-orientated solutions for those with a ‘safety first’ perspective, and specialist, return-orientated strategies for investors seeking alpha.

“In the UK, this means we are reshaping our proposition for advisers to ensure that we continue to provide them with the strategies that best meet the needs of their clients and their own business model.”



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