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AllianzGI to scrap income fund in Singapore

AllianzGI to scrap income fund in Singapore

Allianz GlobaI Investors (AllianzGI) has decided to close its SGD Income fund as assets have dropped below the S$5 million ($3.61 million) threshold, Citywire Asia has learnt.

The Allianz SGD Income fund, which is set to close on 30 November, had about S$2.97 million ($2.14 million) in assets as of 26 October.

In a letter to shareholders, AllianzGI said it is no longer economically viable to operate the SGD Income fund, which sits within Allianz Global Investors Premier Funds umbrella.

The fund’s strategy, however, will continue under a new sub-fund that is also known as Allianz SGD Income but launched under the Luxembourg-domiciled Allianz Global Investors fund umbrella fund.

The Luxembourg-domiciled Allianz SGD Income has a similar investment objective as the fund that is set to be closed. It aims to seek long-term capital growth and income in SGD terms by investing in debt securities of global bond markets.

However, due to its investment policies or portfolio management techniques, the net asset value of the Luxembourg-domiciled Allianz SGD Income may likely have a high volatility.

The Luxembourg domiciled Allianz SGD Income may use financial derivative instruments for efficient portfolio management, including hedging purposes. However, it will not invest primarily or extensively in derivatives for investment purposes.

The Allianz SGD Income fund was launched in August 2017 to capture growth in Asian fixed income markets. At the time of launch, AllianzGI said Citywire AA-rated David Tan Cheng Soon would oversee the fund.

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