Bringing you live news and features since 2006 

Allianz marks five years of RiskMaster Multi Asset strategy

RELATED TOPICS​

Active investment manager Allianz Global Investors is celebrating the fifth anniversary of the launch of its Allianz RiskMaster Multi Asset strategy.

 
Launched in response to the Retail Distribution Review, the RiskMaster strategy aims to deliver returns that are directly commensurate with three distinct investor risk profiles: Conservative, Moderate and Growth.
 
Five years later, the funds have met their objectives of delivering cumulative returns of 38.81 per cent, 47.19 per cent and 55.98 per cent respectively, while targeting a precise volatility bandwidth as defined by Distribution Technology (DT).
 
Managed by senior portfolio manager David Hollis (pictured), the strategy has returned 9.2 per cent each year, on an annualised basis since its launch in May 2012. Each fund targets defined levels of volatility across asset classes, using a variety of investment techniques including diversification and tactical asset allocation.
 
The RiskMaster funds demonstrated particularly strong performance through 2016, a year dominated by political upset. Over the last 12 months, the funds returned between 16 per cent and 22 per cent across the range.
 
This is because the Allianz RiskMaster funds target ‘realised’, as opposed to ‘expected’ volatility. As the latter is calculated simply by projecting forward long-term average trends in risk and return, it fails to account for any short-term changes in volatility. However, it is these short-term changes which are crucial for improving investors’ risk-adjusted realised returns.
 
By using realised volatility, Hollis and the team have been able to decrease market exposure when volatility picks up and increase it when volatility remains suppressed. This process means the Allianz RiskMaster funds have consistently met their volatility objectives across the market cycle.
 
Hollis says: “Over the last five years, the Allianz RiskMaster funds have played a key role in helping clients secure returns at risk levels they are happy to take. Yet for the last nine years, central banks around the world have suppressed volatility by buying up bonds, with the result that some clients were simply taking far too little risk to achieve their returns. Looking forward, as quantitative easing slows down and central bank balance sheets start to shrink, investors without the right kind of active strategy may find that all too soon they have the exact opposite problem.”
 
Assets under management (AUM) across the range are now over GBP379 million.

Latest News

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by