Allianz Global Investors Launches Structured Absolute-Return Liquid Alt Fund

Sep 26 2016 | 6:20pm ET

Global investment manager Allianz Global Investors has debuted a new structured-product absolute return fund on its liquid alternatives platform.

The new fund, named the Allianz Structured Return fund, aims to provide positive returns to investors independent of market movements, according to an article in Citywire. The fund’s anchor position is comprised of short-duration, in-the-money S&P 500 calls that covered by a long position in the underlying index. Additional option positions in the portfolio are aimed at adding diversification and lowering risk.

The fund offers both retail and institutional share classes and daily liquidity. It is managed by Stephen Bond-Nelson and Allianz Global Investors U.S. structured products CIO Greg Tournant out of New York. 

The company’s liquid alternatives platform was launched in September 2005 and provides a range of absolute return and return-enhancement products.  

“We use a combination of equity index call and put options at carefully selected strike and duration profiles, with the objective of generating consistent, positive, single-digit returns regardless of the market environment,” Bond-Nelson said to Citywire. 

The new fund is reportedly passported for sale in Austria, France, Luxembourg, Spain, Sweden, Switzerland and the UK. Other European countries will be available shortly.

Allianz Global Investors manages approximately $520 billion on behalf of individuals, families and institutions worldwide. The firm’s alternative investment strategies include equity long/short, merger arbitrage, options, commodities, volatility, global macro, absolute return bonds, private debt, infrastructure debt, and infrastructure equity strategies. 

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