Allianz Global Investors has unveiled a new US small cap equity fund for investors in the UK and Europe.
The Allianz US Small Cap Equity fund will be managed by San Diego-based manager John McCraw and his team of and a team of four portfolio managers.
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The fund’s strategy will focus on US companies with a market capitalization of between $100 million and $3billion.
The new fund, which will hold around 130 stocks, mirrors an existing strategy, the AllianzGI US Small Cap Growth fund also managed by McCraw.
Benchmarked against the Russell 2000 Growth Index, the Allianz US Small Cap Equity fund will be available through the AGIF (Allianz Global Investors Funds) platform, which distributes its funds to a number of markets across the globe (excluding the US).
McCraw said: "The fact that so many small caps are neglected by the research community – 6,000 US small companies are covered by fewer than five brokers also increases our ability to find alpha by putting our own in-house research expertise to work to seek out the stocks with the highest return potential.
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By GlobalData"The US small cap universe is enormous, stocked full of technology, health care, consumer and energy companies that have the potential to become tomorrow’s mid and large cap winners," McCraw added.
Nick Smith, head of European retail sales (Ex-Germany), Allianz Global, said: "Smaller companies carry more risk, they are less liquid and less well covered, but historic returns have more than compensated for this higher risk, making small caps an attractive part of a diversified portfolio."
