Allianz Global Investors has said that Allianz Small Cap Equity fund will now be available to retail investors following the launch of a series of retail and institutional share classes across the UK.
The new share classes will give investors in Europe the opportunity to access the Global Small Cap strategy, which has made a total return of 28.46% since inception in March 2011 for institutional clients.
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The Luxembourg-domiciled Allianz Small Cap Equity fund is a global mandate managed by Andrew Neville aims to deliver long term capital growth and uses the MSCI World Small Cap Index Total Return as a benchmark.
The fund was launched in June 2013 and now registered in a number of markets in Europe: Austria, Finland, France, Germany, Luxembourg, Netherlands, Norway, Sweden and United Kingdom.
The Fund will invest in up to 190 smaller companies with attractive risk/reward profiles based on local expertise and focusing on companies with a market cap of at least US$ 400 million.
The portfolio is an aggregation of four dedicated regional sub-portfolios North America, Europe, Japan and Asia with fixed weightings to each area in line with the benchmark.
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By GlobalDataNick Smith, head of European Retail Sales at AllianzGI, said: "Small caps often have an advantage over mid and large caps in this environment as they are able to finance their own growth, which means they are not as constrained by the effects of banks restricting their lending. They provide diversification benefits, as they are more risky and more volatile but offer higher returns; combining them with medium- and large-caps is a way of diversifying a portfolio."
Andrew Neville, manager of the Allianz Global Small Cap Fund said: "In an environment of low growth and higher inflation, Global Smaller Companies could provide sustainable profit growth. There are 16,000 Global Small Caps worldwide, which represent 25% of the World’s market capitalisation.
"The new share class offers diversification for retail investors looking for premium equity return potential over the longer term," he added.
