Monday, April 07, 2008
Allianz Gets Inspired by H2O for its New Fund
News summary by MFWire's editors
Allianz Global Investors' Allianz RCM Global Water Fund
strategy is banking on the steady increase in demand for fresh water. Subadvised by Allianz subsidiary RCM Capital
, the fund will invest in companies that are substantially engaged in water-related activities that relate to the quality or availability of or demand for potable and non-potable water.
Company Press Release
NEW YORK--(BUSINESS WIRE)--Allianz Global Investors, the asset management arm of Allianz SE (NYSE: AZ), announced today that it has launched the Allianz RCM Global Water Fund which invests in equity securities of water-related companies worldwide.
“Less than 0.007% of all the water in the world is potable, or safe for consumption,1 yet the demand for fresh water is steadily increasing,” said Bozena Jankowska, portfolio manager of the Allianz RCM Global Water Fund. “Solving this global water challenge demands a long-term effort from institutions around the world which we believe will require significant investment from the private sector.”
The Fund will seek long-term capital appreciation by investing in a portfolio of companies that are substantially engaged in water-related activities that relate to the quality or availability of or demand for potable and non-potable water. The following are included among these activities:
* Water production, storage, transport and distribution;
* Water supply-enhancing or water demand-reducing technologies and materials;
* Water planning, control and research;
* Water conditioning, such as filtering, desalination, disinfection and purification;
* Sewage and liquid waste treatment; and
* Water delivery-related equipment and technology, consulting or engineering services relating to any of the above-mentioned activities.
RCM Capital Management LLC, also a subsidiary of Allianz SE, serves as manager of the Fund. The portfolio management team includes portfolio manager Bozena Jankowska, head of RCM’s Sustainability Research Team based in London. Ms. Jankowska received a BS in Environmental Science from the University of Sussex and a Master’s in Environmental Technology, specializing in business and the environment, from Imperial College of Science, Technology and Medicine. She is joined on the Fund by portfolio manager Andreas Fruschki, who also acts as a European Healthcare Research Associate for RCM’s European Equity Research department.
“The results of a recent survey we conducted show that U.S. investors view the environment as a major long-term investment opportunity, with 71% rating the environmental technology sector a ‘buy’2,” said Ms. Jankowska. “Our research shows that investors understand that significant environmental issues – including those facing the water sector – represent potential lucrative opportunities for businesses endeavoring to bring real solutions to a global market.”
About Allianz Global Investors
Allianz Global Investors, the asset management division of Allianz SE, is a leading investment management company with more than $1 trillion in assets under management as of December 31, 2007. Allianz Global Investors offers access to a premier group of institutional investment firms including PIMCO, NFJ Investment Group, RCM, Nicholas-Applegate and Oppenheimer Capital. The company offers investment solutions across a broad spectrum of asset classes and investment styles in a wide array of products, including mutual funds, managed accounts and closed-end funds.
RCM Capital Management LLC (RCM) was founded in 1970 as a boutique equity asset manager and today has operations in London, Hong Kong, and other key financial centers around the word and assets under management of more than $20 billion (as of December 31, 2007). The firm provides investment management services to institutional and private clients through managed account programs and retail mutual funds, which are both offered through Allianz Global Investors.
Allianz Global Investors is at the forefront of eco-trends investing and research. Based on the conviction that companies can have both a positive environmental impact and above-average growth potential, we have developed specialized expertise in environmental science, technology and policy through RCM. Allianz SE has been a pioneer in corporate sustainable development. The Allianz Environment Foundation dates back to 1990 and the firm recently partnered with the World Wildlife Fund on climate-change strategy and research. Allianz offers a range of “green” products and services, including emissions trading credits, for its customers in the insurance and banking sectors. It earned a top rating in the insurance sector of the Dow Jones Sustainability Index for 2006 and 2007.
Investors should carefully consider the Fund’s investment objective, risks, charges and expenses before investing. The prospectus, which contains this and other information about the Fund, should be read carefully before investing. The Fund is distributed by Allianz Global Investors Distributors LLC. For a prospectus, please call your financial advisor or 1-877-819-2224.
The Fund’s investments in non-U.S. securities may be subject to rapid and more extreme changes in value. The securities markets of many foreign countries may be smaller than the U.S. market. Equity issuers in such countries may not be subject to the same degree of securities regulation as U.S. issuers, and accounting and financial reporting standards may differ from those in the U.S. Government interference in the economy may be prevalent for many non-U.S. securities markets. These risk factors are pronounced with emerging markets securities. The Fund may also invest in initial public offerings (IPOs), which can be highly volatile. Stocks issued in IPOs have no trading histories, and information about the companies may be available for very limited periods.
The Fund may invest in derivatives (including options, futures, forward contracts and swap agreements) for purposes including risk management, for leverage (including borrowing), and to gain exposure to other types of investments. Derivatives involve the risk that a counterparty may not be able to comply with the derivatives contract; difficulties in liquidating a derivatives position advantageously; and the risk that the use of derivatives for leverage may increase the Fund’s volatility, with larger gains or losses possible; The successful use of derivatives depends on the buyer or seller being correct about the size and timing of market movements, which are inherently uncertain. Valuation uncertainties also exist with derivatives.
1 World Health Organization
2 This information strictly represents the results of the GfK Roper Public Affairs & Media December 2007 public opinion survey and does not represent the views of any investment advisor or mutual fund distributor. The polling results do not represent an investment recommendation or a solicitation.
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