Going long and short different asset classes to generate ... Plus (DMAP) asset allocation process....
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For professional investors only Find out more at allianzgi.co.uk or call +44 (0) 20 3246 7604
Q What does the strategy do? Allianz Multi Asset Long Short is an absolute return strategy that can take both long and short positions across a broad opportunity set. In our case, equities, fixed income, commodities and currencies. With the ability to move both long and short, the strategy seeks to take advantage of positive and negative market trends, delivering attractive returns with low correlation to equities and bonds over the long term.
Q How is the team qualified to run this strategy? We believe the Multi Asset team at Allianz Global Investors is one of the largest and most experienced in the industry. With 96 investment professionals averaging over 17 years of investment experience, 26 of the team have PHDs. This large team is responsible for managing over £120bn for our clients and shows that we are a trusted provider in the space.
The fund draws from all this expertise and leverages the experience developed in our established Dynamic Multi Asset Plus (DMAP) asset allocation process. DMAP launched in 2005 and we have been refining this since.
Q How did the team come up with the idea? The team at Allianz Global Investors has been managing dynamic asset allocation strategies for many years. In traditional portfolios, the goal is to create relative outperformance and active bets are defined as over/ underweights to the strategic asset allocation.
The Multi Asset Long Short strategy builds on this experience as an absolute return extension of this process. In this form, the goal of the strategy becomes an absolute return target and active bets are no longer expressed as relative weights but as long and short positions.
Going long and short different asset classes to generate absolute returns
Q&A with James Pearson For professional investors only
Allianz Multi Asset Long Short offers an alternative to traditional investments, looking to generate attractive returns, added diversification and low correlations to equities and bonds.
James Pearson, Vice President, Multi Asset
Unless otherwise stated, all sources Allianz Global investors as at 30 September 2017.
Past performance is not a reliable indicator of future results. Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including short positions with respect to fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions. Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. This is a marketing communication issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established a branch in the United Kingdom, Allianz Global Investors GmbH, UK branch, 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk, which is subject to limited regulation by the Financial Conduct Authority (www.fca.org.uk). Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted. 17-2270
Q&A with James Pearson
Q How can investors fit this strategy into their portfolio? The strategy has a number of applications which could benefit our clients. As it is designed to have low correlation to traditional asset classes, clients may benefit from additional diversification and achieve a better risk/return profile by replacing a portion of their strategic equity and/or fixed income allocation with this strategy. The strategy also has the potential to produce positive returns during periods of sustained market drawdowns. This feature makes the strategy a good candidate to provide risk mitigation in clients’ portfolios.
Q What makes this strategy unique? We believe that asset classes move in trends which differ in direction, strength and length, and that our disciplined approach to asset allocation can be very successful in
producing an alternative source of returns. In doing so, the strategy also adopts a risk balanced approach which allows the multiple asset classes of our broad investment universe to contribute similarly to the overall portfolio risk and return over time, delivering improved efficiency and enhanced diversification.
Q How has the strategy performed since launch? Very well! The strategy was launched on a standalone basis in December 2015, after continuously delivering within large institutional client portfolios. A year later in November 2016 we launched the UCITs vehicle and have been extremely pleased with the performance on both an absolute and risk adjusted basis.
To learn more about the Allianz Multi Asset Long Short Fund please visit allianzgi.co.uk or call +44 (0) 20 3246 7604 Allianz Global Investors GmbH, UK Branch, 199 Bishopsgate, London, EC2M 3TY