Allianz Global Investors, the asset management unit of the German insurers, is launching the Allianz RCM European Equity Dividend fund, to be managed by investment platform RCM. The fund will invest in the stocks of high quality, European blue chip companies and will aim for a high but sustainable level of income.
“We believe that the fund will benefit from RCM’s proven strategy
and excellent track record in the European equity value space.
Co-managers Neil Dwane and Joerg de Vries-Hippen have the
experience, talent and resources to pick the best income
opportunities for investors,” said
Michael Haski, chief executive of Allianz Global Investors Europe.
“The downturn in equity markets is leaving many robust and well capitalised companies undervalued. This presents a tremendous opportunity to invest in strong, successful European companies. The fund aims to offer investors a high and sustainable dividend income, with the prospect of long-term capital gains when the markets recover," he said, adding that the fund will allow investors to diversify away from bonds, which are vulnerable to inflation.
The fund aims to give investors a sustainable level of yield – estimated to be approximately 6 per cent per year at launch – by investing in the stocks of high-quality European companies with proven dividend records, backed by strong and stable cash flows. As such the fund's managers are placing great importance on doing the "homework" on individual stocks and understanding companies' business models.
Allianz Global Investors has €920 billion ($1.16 trillion) of assets under management for its clients worldwide. The firm has approximately 4,700 employees around the globe, including more than 950 investment professionals.