Allianz to open Income and Growth fund to UK investors

Allianz Global Investors has announced plans to make its Income and Growth fund available to UK investors through the launch of a sterling hedged share class at the end of the first quarter.

The £29m Luxembourg-domiciled Income and Growth fund has been available to European investors since Q2 of last year, and is managed by Doug Forsyth from San Diego.

The fund focuses on three asset classes: high yield securities, convertibles, and equities through investment in US and Canadian companies with
covered call options.

Forsyth’s team manages $6bn in US Income and Growth strategies using a bottom-up approach, focusing on US and Canadian companies poised to benefit from fundamental change.

Since launch, the fund has returned 3.41% against the peer group average of -2.96%, according to Morningstar.

“There is huge demand for investments that can provide a high and relatively stable level of income together with the opportunity for growth. The fund’s distinctive focus on three asset classes enables it to offer just that,” said Nick Smith, managing director at Allianz.

“High yield and convertible bonds have a favourable risk / return profile relative to other asset classes and have provided strong performance in rising interest rate environments, delivering diversification benefits from core fixed income,” Forsyth added.

“Through investing in equities, the strategy aims to uncover companies that are exceeding expectations, providing investors with the potential for growth.”