Allianz Sterling Total Return fund switches to strategic bond strategy

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Allianz Global Investors is transitioning its Allianz Sterling Total Return fund into a Strategic Bond Fund, which will include investment opportunities outside the UK and Europe.

In its current form the fund is invested in bonds in UK and European corporates, governments, supranational institutions, and local regional agencies.

The new fund will be benchmarked against the Barclays Global Aggregate hedged to sterling, and at least 80 per cent of the fund will be invested in sterling denominated debt securities.

Mike Riddell, UK fixed income portfolio manager, who joined AllianzGI from M&G in October, will continue to run the fund.

“Diversifying the range of assets a fund can invest in means we can offer the prospect of a much lower correlation to risky assets such as high-yield bonds and ultimately equities,” Riddell said.

“To date, very few asset managers have made use of the flexibility that the strategic bond sector actually offers. You can do far more than just invest in investment grade and high-yield corporate bonds.”