AllianzGI’s new ‘outperformance fee’ share class will charge a low fixed fee, comparable to a passive product. Provided the fund beats its benchmark, an additional outperformance fee will be payable.

Initially, five leading active equity funds in AllianzGI’s OEIC range will also be made available to UK retail investors in the new outperformance share class:

• Allianz Best Styles Global AC Equity
• Allianz Emerging Markets Equity
• Allianz Global AC Equity Insights
• Allianz UK-Mid Cap Allianz
• UK Opportunities
  

Andreas Utermann, CEO of AllianzGI, commented:
“Investment management is evolving and in response AllianzGI is innovating, leading the industry in introducing new pricing models that meet what clients expect of an active manager. The launch of this new share class embodies the Value.Shared. approach at the heart of our business, with us sharing in the value created only when we deliver the sustained, superior outperformance we aim to generate as an active manager.”

The share classes of the five funds in the initial UK roll out will have a low minimum fee to cover the management and fixed costs of the fund. On any day a Fund outperforms its benchmark, a fixed, additional fee of 20% of that day’s outperformance will be accrued as a performance fee. At the end of the year, if the Fund’s overall performance has been positive, AllianzGI will be paid the total performance fee accrued during the year.

Underperformance, should that occur, will be recorded on a daily basis and will reduce any outperformance charge. If at the end of the year the Fund has underperformed its benchmark overall, then clients will only pay the low fixed fee. Moreover, any underperformance will be recorded and carried forward for up to a further five years, or until the underperformance is recovered.

Adam Gent, Head of Retail / Wholesale Northern Europe at AllianzGI, said:
“This new, low, fixed fee model establishes a new standard for performance fees in the UK. “While some clients will still prefer the certainty of accessing our funds through a traditional fixed price fee model, which will still be available, we think this innovative structure will appeal to clients who have been put off active management by having to pay a higher active fee regardless of whether a strategy was outperforming. Now, our clients have the choice to pay an outperformance fee only when the fund is outperforming its benchmark, meaning they only pay an active performance fee for delivered, superior performance.”

The new UK outperformance fee share classes are expected to go-live in early May. Over time, in line with client demand, AllianzGI will look to expand the range of funds designed to deliver benchmark-beating returns that this new fee model applies. In December 2017, AllianzGI launched three funds with performance fee pricing in the US.

To see a video explaining how the new model works, please click here.

– Ends –

Notes to editors

Performance fee levels

As at 18/04/2018

Further information

Nadia Hassini +44 (0)20 3246 7558
Sarah Einig +44 (0)20 3246 7846
Alastair Fairbrother +44 (0)20 3246 7432
 

ukmedia@allianzgi.com

About Allianz Global Investors
Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have around EUR 500 billion in AUM for individuals, families and institutions worldwide and employ over 650 investment professionals.

At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.

Data as at 31 December 2017 (*Data as at 30 September 2017).

Disclaimer

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