Allianz GI unveils US small cap fund

Allianz Global Investors has unveiled the Allianz US Small Cap Equity fund, focussing on companies with a market capitalisation of between $100m (£59m) and $3bn.

The fund will be managed from the US by John McGraw who will lead a team of four portfolio managers.

It will hold around 130 stocks and will use the Russell 2000 Growth index as its benchmark.

Available to investors in the UK and Europe this fund will mirror a pre-existing strategy, the AllianzGI US Small Cap Growth fund which has also been managed by McGraw for the last year.

McGraw says: “Giving UK and European investors access to our time-tested US small cap strategy is a natural addition to our wider global small cap franchise, further extending our footprint in this popular and attractive asset class. The US small cap universe is enormous, stocked full of technology, healthcare, consumer and energy companies that have the potential to become tomorrow’s mid and large cap winners.

“The fact that so many small caps are neglected by the research community – 6,000 US small companies are covered by fewer than five brokers – also increases our ability to find alpha by putting our own in-house research expertise to work to seek out the stocks with the highest return potential.”