There are other ways to generate stable income beyond the traditional long-only fixed income credit strategies.
The Allianz Credit Opportunities fund was launched in 2016 to address three concerns: the negative interest rate environment, the prospect of rising interest rates and the increasing risk aversion related to political uncertainty.
The strategy is based on a diversified portfolio of credit instruments. It combines a bucket of short duration carry to provide stable income together with a bucket of low volatility strategies using all available instruments from the credit markets to enhance return.
Allianz Credit Opportunities is a fund based on a diversified portfolio of credit instruments. The strategy combines a bucket of yield earning bonds to provide stable income together with a bucket of low volatility strategies (using all available instruments from the credit markets) to enhance return.
The goal of the strategy is to deliver positive return with downside protection embedded through limited volatility (max 2%) and duration (between -1 year and +2 years).
The fund management team is using fundamental research to ensure that the liquidity profile of an bond issuer selected to be of the portfolio is adequate and commensurate with the short-to-medium term maturity of the bonds picked.
Grégoire Docq
Hervé Dejonghe
Fund Managers
This fund is co-managed by Hervé Dejonghe, Portfolio Management, Research & Trading and Grégoire Docq, Portfolio Management, Research & Trading.
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Opportunities
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Risks
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A performance of the strategy is not guaranteed and losses remain possible.
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including short positions with respect to fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions. Allianz Credit Opportunities is a sub-fund of Allianz Global Investors Fund SICAV, an open-ended investment company with variable share capital organised under the laws of Luxembourg. Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency. This is for information only and not to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell any securities. The products or securities described herein may not be available for sale in all jurisdictions or to certain categories of investors. This is for distribution only as permitted by applicable law and in particular not available to residents and/or nationals of the USA. The investment opportunities described herein do not take into account the specific investment objectives, financial situation, knowledge, experience or specific needs of any particular person and are not guaranteed. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact the management companyAllianz Global Investors GmbH in the fund’s country of domicile, Luxembourg, the Swiss funds’ representative and paying agent BNP Paribas Securities Services, Paris, Zurich branch, Selnaustrasse 16, CH-8002 Zürich or the editor either electronically or by mail at the given address or www.allianzgi-regulatory.eu. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors (Schweiz) AG, a 100% subsidiary of Allianz Global Investors GmbH, licensed by FINMA (www.finma.ch) for distribution and by OAKBV (Oberaufsichtskommission berufliche Vorsorge) for asset management related to occupational pensions. This communication has not been prepared in accordance with legal requirements designed to ensure the impartiality of investment (strategy) recommendations and is not subject to any prohibition on dealing before publication of such recommendations. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors GmbH.