Allianz Global Investors Rolls Out Emerging Markets Equity Fund

Anna Hallissey

15 January 2014

has shrugged off recent market setbacks to launch a fund that taps into what it sees as continued high potential from emerging markets.

The Luxembourg-domiciled Allianz Emerging Markets Equity Opportunities fund is designed to exploit market inefficiencies. It will hold between 100 to 150 companies in the portfolio.

Management of the new portfolio will be led by Kunal Ghosh, in an eight-member team based out of California. This group oversees $1.8 billion of assets.

The rollout of an emerging markets fund comes at a time when the sector has been buffeted by headwinds in recent months. Broad measures of emerging market equity performance declined in 2013, while mature markets such as those of the US had a strong rally. The shift in fortunes has been ascribed to factors such as an expected wind-down in the US Federal Reserve’s quantitative easing programme.

Despite such setbacks, Allianz Global Investors reckons emerging markets remain a positive story, driven by consumer spending, for example.

“Domestic consumption is the key driving force for emerging economies supported by wage inflation,” Ghosh said.

UK investors will be able to access a share of the fund as soon as it launches.

Allianz Global Investors has more than €322 billion (around $440 billion) in assets under management for individuals, families and institutions.