Allianz Income and Growth Fund might be suitable if you’re looking for an investment with balanced exposure to various money market instruments, including stocks and bonds. The fund can be used as a standalone investment or as part of a portfolio. For investors who want to find out more about how to invest in Allianz Income and Growth fund (Singapore), continue reading our overview.
What is Allianz Income and Growth?
Allianz Income and Growth is a fund that invests in a combination of high-yield bonds, equities, and convertible bond securities. At least 70% of its assets will be invested in the US and Canadian-based companies.
An open-end fund incorporated in Luxembourg, the fund’s objective is to provide investors with long-term capital growth and income protection against market downturns.
As of August 2022, the fund’s Morningstar rating is 5. The rating provides investors with an indicator of a fund’s past performance through a quantitative review, guiding towards a more thorough fund evaluation process. The fund is also registered with the Monetary Authority of Singapore.
Benefits of investing in Allianz Income and Growth
The Allianz Income and Growth Fund is a diversified portfolio aiming to achieve long-term capital growth with a regular income stream. It does this by investing in various money market instruments, with core holdings in high-yield, convertible, and equities.
If you’re interested in this fund, here is our Allianz Income and Growth fund review. We evaluate according to the product brochure and discerned three main benefits of investing in this fund:
- 3 sleeve approach provides better participation potential with lower risk
- Asymmetric risk-return profile ensures a steady stream of income
- Long-term capital growth with high yield instruments
The multi-sleeve strategy adopted by Allianz essentially means that the core three instruments have similar potential high-yield characteristics. Investing in ⅓ of high yield bonds, ⅓ in equities and ⅓ in bond convertibles, the fund spreads the risk of market volatility and increases participation when there is a market opportunity.
Compared to a fund invested entirely in equities, the Allianz Income and Growth fund provide the investor with higher diversification. In short, there is also higher capital protection with less volatile asset classes.
Additionally, the fund has an asymmetric risk-return profile – it provides investors with the potential for higher returns when the markets perform well and mitigates losses when markets are volatile or decline in value. As a result, the allocation ensures your funds participate in the market upside, generating a steady income stream over time.
Its core exposure is ⅓ of fund allocation to high-yield bonds in the US markets. Historical data of high-yield bonds shows an attractive risk/reward opportunity. The main benefit of high-yield bonds is that they have a higher return than other kinds of investments like stocks or mutual funds. They offer a higher risk/reward ratio but have more volatility than other types of bonds.
If you’re looking for a long-term investment with potentially higher returns and have a moderately high-risk appetite, high-yield bonds may be a suitable way of capital growth for your investing needs.
Should I invest in Allianz?
With reference to the Allianz Income and Growth factsheet here, the fund is suitable for investors who :
- Want to pursue general capital formation/asset optimisation for their financial portfolios
- Have basic knowledge and experience of financial products
- Are capable of bearing a financial loss.
Given the recent market volatility, it might be challenging for investors to meet long-term income growth objectives. The fund provides potential investors with yield opportunities in the long term but may not be suitable for those who require their funds in a short period.
Investors also undertake certain risks. Some examples of risks include:
- Market and credit risks: for example, any political or economic situation in the US or Canada which might affect market prices, currency risk of foreign exchange
- Product risks: for instance, the net asset value might fluctuate depending on portfolio management strategies.
Additionally, the fund is not listed in Singapore, so you can only make redemptions on business days in Luxembourg and United States.
The value product and its dividends may be adversely affected for the above reasons if there is any change to market, credit, or product. Since there is no principal protection, investors must consider their financial goals carefully before investing in this fund.
Who is Allianz Global Investors?
Allianz Income and Growth Fund are managed by the global investment management firm Allianz Global Investors. The firm is currently owned by the international financial services group Allianz.
With over 20 locations worldwide, the firm manages over EUR 500 billion in assets on behalf of institutional, retail clients and Allianz itself. The firm has varied expertise in investing in various asset classes in different markets. Through active asset management, they aim to provide the best investment experience for their clients.
How do I invest in Allianz Income and Growth fund?
You can invest in Allianz Income and Growth Fund through our financial consultants here, or simply fill in the form below and our licensed financial advisor will get in touch with you. You can use cash or your Supplementary Retirement Scheme(SRS) funds. Note that you will not be able to use your CPF Investment Account to fund this investment.
Investing is a personal choice. It’s important to understand that the information in this article is not investment advice, nor does it take into account your financial situation or goals. Consult with a financial professional before deciding. You’ll gain a clearer picture of your financial situation with a non-obligatory, complimentary consultation with our licensed financial advisors. Contact us today.