Allianz Dyn MltAst Stgy SRI75 A EUR

Analyst Report
Morningstar's Take
|29/06/2021

by Matias Möttölä, CFA


A robust and time-tested allocation process and an experienced team back our positive view of Allianz Dynamic Multi Asset SRI funds. This SRI75 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 since January 2015. The 25-year 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 both 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 use leverage to push their 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. They have used this leeway regularly, and it has helped them to outperform peers in bull markets. On top of low-tracking error equities and European bonds, the team can add “satellite” positions such as micro-caps and high-yield, and these tend to gain weight when the macro view is upbeat. As is common for investment processes leaning on trend analysis, this strategy tends to struggle in inflection points. However, strict risk controls force the team to add their cash position after losses, with cash going up to around 30% for the SRI 75 fund in early 2020. 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 bit growthier from a previous value tilt and has maintained that style, but with multiple factors included in the quantitative Best Styles equity process, style drift should remain in check here.

Morningstar Analyst Rating™
To find out how Morningstar rates a fund click here.
Portfolio RoleThis broadly diversified fund can serve as a core holding for an investor with a high risk appetite.
Morningstar Pillars
PeopleAbove Average
Experience and breadth.
ParentAverage
Several bright spots, but Average overall.
ProcessAbove Average
Level of risk can vary considerably based on strength of trend.
Performance
Ahead of benchmark in risk-adjusted terms under current lead manager.
Morningstar Analyst RatingMorningstar evaluates funds based on five key pillars, which it's analysts believe lead to funds that are most likely to outperform over the long term on a risk-adjusted basis.
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A fim de prover consistência para todos os relatórios fornecidos por diferentes Asset Managers, os data points calculados apresentados são gerados usando uma metodologia de cálculo proprietária da Morningstar, que pode ser conferida com mais detalhes em(https://www.morningstar.com/research/signature)