Allianz Global Investors launch Global EcoTrends in UK 15.02.08
Allianz Global Investors has announced plans to launch a Global EcoTrends UK OEIC3, after the success of their Global EcoTrends franchise of funds across the world.
The Fund will be managed by Bozena Jankowska, the head of RCM’s Sustainability Research team and will be called the Allianz RCM Global EcoTrends Fund.
The intended launch date is 14th February 2008, subject to approval from the Financial Services Authority.
The existing Luxembourg SICAV Allianz RCM Global EcoTrends (also managed by Bozena Jankowska) has delivered superior performance, returning 23.6%2 since inception in May 2006 against a MSCI World Index return of 10.9%2. Allianz Global Investors has been test-marketing the idea of launching a UK version and, following a positive reception, felt now was the time to expand and strengthen its existing franchise by launching a UK fund.
Bozena Jankowska, manager of the Fund, said: “Environmental technology is big business. Climate change is just one of many environmental forces driving this.
“Issues such as extreme weather conditions and general global warming are becoming more prevalent as time passes. This is leading to a new industrial revolution as companies are having to respond. In this respect our aim is to back the environmental technology winners; those companies which contribute to and benefit from the three key drivers: eco energy, pollution control and clean water.
“We believe that certain sectors have superior growth potential in the wake of global environmental changes. For example, we expect attractive rates of growth for wind power and solar energy over the next few years and we believe fuel cell companies, which allow people to generate their own domestic energy, are interesting stocks to hold. Within our strategy we look for well managed companies that have prospects for the future, and the current market weakness has thrown up some interesting valuations. Now could be a very good time to invest in environmental technology stocks.
“The UK Government, in its Pre-Budget report, has also pledged to help fight against climate change and environmental damage. No doubt this will lead to further opportunities.”
Nick Smith, Head of Fund Distribution, at Allianz Global Investors (UK) Ltd commented: “Global EcoTrends is a compelling proposition, so we are delighted to propose a UK launch. This will give UK investors access to one of the most established and experienced Sustainability Research teams in Europe and the opportunity to invest in a very exciting fund.
“Sustainability is an integral part of our business and as part of a world-leading financial services Group, we face the challenges of environmental change from a position of responsibility and opportunity. It is great that we can channel this into a UK fund, and prospective investors should be encouraged by the superior performance delivered by our dedicated and highly regarded Sustainability Research team.”
Allianz Global Investors acknowledges that as the world constantly evolves there is significant impact on the environment and climate. It has recognised that while these changes present major challenges to business and society in the 21st century they also open up attractive investment opportunities with enormous growth potential.
The Allianz RCM Global EcoTrends Fund is underpinned by an in-house global Sustainability Research team which has a proven track record and was established seven years ago. This team currently manages more than $1.4bn globally1. They focus on identifying environmental and social trends and themes which are then translated into investment and stock ideas e.g. demographics, climate change, environmental pollution, water scarcity, etc.
The team is also supported by RCM’s proprietary market research network called Grassroots® Research. Grassroots® Research is dedicated to uncovering and measuring demand in the market place for specific products and services.
Fast Fund Facts
Proposed fund name: Allianz RCM Global EcoTrends Fund
Key investment areas targeted: Eco Energy, Pollution Control and Clean Water
Proposed launch date: 14th February 2008
Managed by Bozena Jankowska
The portfolio will comprise approx. 50 -70 equities
Minimum investment: £500 (£1,000 for ISA)
Proposed Investment Objective
The Fund intends to invest a minimum of 75% of assets in the shares of international companies that have at least some operations in the areas of "Eco Energy" (alternative energy sources and energy efficiency), "Pollution Control" (environmental quality, waste management and recycling) and "Clean Water" (water treatment and supply). Its investment objective is to attain long-term capital growth. The share accounted for by Emerging Markets is limited to 20% of the Fund’s assets.
Charges & Commission
Initial (outside ISA) 4%
Initial (inside ISA) 3%
Annual Management Charge 1.75%
Initial commission 3%
Trail commission 0.5%
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