Allianz Dyn MltAst Stgy SRI75 CT EUR |
by Thomas De Fauw
A robust and time-tested allocation approach and an experienced team back our positive view of Allianz Dynamic Multi Asset SRI funds. This SRI 75 fund’s cheapest share class earns a Morningstar Analyst Rating of Silver, while other share classes are rated Bronze and Neutral. This is one of numerous strategies managed by AllianzGI’s retail multi-asset team, whose leader, Marcus Stahlhacke, has been at the helm here since January 2015. The AllianzGI veteran has multiple other portfolios to tend to as well, but we take comfort in that he can lean on two comanagers, Andreas de Maria Campos and Friedrich Kruse, who have been named managers on funds since 2015, as well as the deep resources within the firm’s multi-asset team to form asset class views. On top, the multi-asset team can mostly focus on asset allocation and risk management since security selection within stocks and bonds is done by AllianzGI’s well-resourced specialist teams. The fund does not come without risks: The team can push its investment degree to 125% based on a quantitative analysis of market trends and reversals as well as a fundamental analysis by the multi-asset team. It has used this leeway regularly, and this has helped it to outperform its peers. On top of an SRI best-in-class equity portfolio with factor tilts and European bonds, the team can add “satellite” positions such as micro-caps, emerging-markets equities, and high-yield. In 2021 the team moved from a fixed strategic asset allocation to using volatility bands, and this has allowed broadening the portfolio with new exposures such as commodities. As is typical for processes leaning on trend analysis, this strategy tends to struggle in inflection points. However, strict risk controls force the team to add the cash position after losses, with cash going up to around 29% for the SRI 75 fund in March 2022. The team has tended to be quick in moving its chips back into the market after downturns. The best-in-class SRI approach has been in place only since December 2019. At that time, the equity portfolio became a tad growthier from a previous value tilt, and it has maintained that style. However, with multiple factors included in the quantitative best styles equity process, style drift should remain in check here. |
Morningstar Pillars | |
People | Above Average |
Parent | Average |
Process | Above Average |
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