18/10/2012
Allianz GI takes a defensive position in high yield
With the launch of the Allianz Euro High Yield Defensive, a sub-fund of the Luxembourg Sicav Allianz Global Investors Fund (see Newsmanagers of 16 October), Allianz Global Investors (AGI) is hoping to get in on the attractive aspects of the European high yield private bond segment, to respond to a search for returns in a sustainably low interest rate environment, and to provide a way to soften periods of downturn in European high yield, while profiting from rising periods.In detail, AGI says, the fund, managed by Alexandre Caminade, CIO credit Europe, aims to generate attractive returns in a risk-controlled wrapper. The portfolio invests in corporate bond issues rated at least between BB+ and B-. It excludes financials and issuers rated CCC. “The Allianz Euro High Yield Defensive is not subject to any duration constrains, as part of a non-benchmarked management.” The Merrill Lynch Euro High Yield BB-B Rated Non Financial Constrained Euro Unhedged index “represents only an a posteriori reference,” the asset manager says. Caminade also says that the investment universe for the fund “as of the end of September showed average returns of 6.14%, compared with 1.44% for 10-year German government bonds (Bund).”CharacteristicsName: Allianz Euro High Yield DefensiveISIN code: LU0788519535Asset management firm: Allianz Global Investors Luxembourg SAManager of the fund: Allianz Global Investors France SADuration: 1 to 9 yearsManagement fees, per year, in %: 0.60% (maximum 1%)Administration fees, per year, in %: 0.19% (maximum 0.50%)
