The Allianz Market Neutral Asian Equity fund has closed due to low assets under management, according to the firm, as its €6.6m AUM means it will "no longer be capable of properly pursuing its investment strategy" and "maintaining a diversified portfolio of investments".
This comes following the departure of its manager Woo Fook-Cheong in April. He was replaced by manager George Liu on 20 April.
Allianz Market Neutral Asian Equity, the dollar-denominated share class of which was launched by Fook-Cheong on 11 February 2014, aiming to provide risk-adjusted returns throughout the market cycle via long and short positions in Asia Pacific equities.
According to its factsheet, it was "participating in the performance of [AllianzGI's] Discovery Asia strategy", which it did via a derivatives structure known as a Total Return Swap.
Some of the firm's largest equity positions in its long book as at the end of May 2020 - which is the date of its most recent obtainable factsheet - included the likes of China's largest retailer JD.com at 4.6%, supermarket company Chengdu Hongqi Chain at 4.2% and coating product manufacturer SKSHU Paint at 4.1%.
The only holding listed as at the end of July, which can be found on AllianzGI's website, was its then-largest position China Feihe, which accounted for 2.35% of the portfolio.
A minimum 70% of its assets where invested in bonds and equities at any one time while it was able to hold up to 10% of in cash or money market instruments.
Over one, three and five years, the fund has returned 3.9%, 16.1% and 37.8% respectively according to data from FE fundinfo, while its average peer in the FO Hedge/Structured Product - Equity sector has returned a respective 0.1% and 18.4% over three and five years, while losing 0.7% over the last 12 months.
Singapore-based Fook-Cheong spent 16 years as a portfolio manager at AllianzGI, according to his LinkedIn profile. Prior to this, he spent a year as head of Asian Pacific Chemicals at Merrill Lynch and three months as head of Asian oil and chemicals research at Societe Generale.