Allianz BRIC Stars to be converted to broader emerging markets fund

20th April 2016 - Allianz Global Investors has announed that, subject to shareholder approval, it plans to covert the Allianz BRIC Stars fund to a global emerging market equity fund.

The move would broaden the fund’s focus beyond BRIC countries and enable it to make at least 80% of its investments in emerging market countries.

Since 2013, when the current manager Kunal Ghosh took the fund on from Michael  Konstantinov, Allianz BRIC Stars has been able to invest in wider emerging markets. However, at least two-thirds of the fund’s assets had to be in Brazil, Russia, India or China.

In line with this change, the fund would have as its new benchmark the MSCI Emerging Markets Index.

Commenting on the move, Kunal said: “I am hopeful that investors will welcome our planned changes. The alterations will enable us to invest in over 2000 additional stocks, and with cheap valuations across the sector, we are confident that making these changes at this time will benefit investors in the long term.”

The changes will be subject to approval vote by shareholders at an Extraordinary General Meeting – the date of which is yet to be announced. The proposal to convert the fund will only take effect if a majority of 75% vote in favour.