Allianz Global Investors has brought one of its US equity funds, which combines active and passive investing, to the UK.
The firm has launched the Allianz Structured Alpha US Equity 250 fund, which aims to deliver an annual return of 2.5% above the S&P 500 Index, into the UK.
The fund combines passive investing in the S&P 500 Index with active management through buying and selling both call and put options, with the options portfolio designed to hedge the fund against extreme events.
The fund is managed by a team headed by Greg Tournant, Allianz GI’s chief investment officer for US structured products, which currently manages around $10 billion (£7.23 billion) in client money.
According to Citywire data, the fund has delivered a total return 15.3% in the US over three years to the end of 2017, compared to the sector average of 11.9%.
Adam Gent, Allianz GI’s head of retail and wholesale for Northern Europe, said the fund is an ‘alternative’ to ETFs.
He added: ‘This applies particularly to major investors such as funds-of-funds managers or asset managers who need exposure to the US equity market.
‘The proportion of US equities in a diversified portfolio is too large for investors to miss out on outperformance in this area.’
Allianz GI's approach comes as it plans to roll out a new performance fee model this year.
The firm launched three strategies – US equity, US fixed income and managed futures – into the US market in December, and as Wealth Manager revealed in September, the fee structure will be brought to the UK retail market in early 2018.