Allianz to launch Pan-European long/short fund

Allianz Global Investors is set to launch a Ucits III version of its Discovery Europe fund in October.

Subject to FSA approval, the pan-European long/short equity vehicle will be structured as a sub-fund of Discovery Europe.

The Luxembourg-domiciled sicav will be run by the manager of the existing fund, Harald Sporleder, while Ralf Walter will be co-manager.

Allianz RCM Discovery Europe Strategy will aim to generate absolute returns by investing in pan-European stocks.

The managers will hold two thirds of the portfolio in high-conviction stocks while the remainder will be invested in positions with a shorter-term horizon.

“We believe this strategy is perfectly aligned to today’s volatile market conditions in seeking to deliver superior risk-adjusted, absolute returns through all market cycles, says Sporleder.

“Our approach is driven by RCM’s expertise in stock selection based on fundamental bottom-up company analysis. I’m pleased the team has established such a strong track record despite the testing times we are in.”

Year-to-date to the end of May, Allianz RCM Discovery Europe has returned 11.91% against the 6.07% average of the MSCI Europe index.