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Allianz applies risk profiling to multi-asset range

Allianz Global Investors has designed a range of four risk-profiled multi-asset funds which are backed by a fee promise if the risk category for any of the funds at launch is subsequently changed.

The risk profiles of RiskMaster defensive, conservative, moderate and growth funds equate to Distribution Technology’s risk profile categories four, five, six and seven respectively. A change in any of the funds Distribution Technology risk profiles will result in the annual management fee up to  0.75 per cent, before administration costs, being waived for three months following the change.  This commitment will initially be for the first 12 months after launch and will be reviewed on an annual basis.

The aim of the RiskMaster range is to find the right balance between risk and reward for each risk profile. Allianz believes this is important given the difficulties advisers face in the current environment of volatile markets, low interest rates and clients showing an increased sensitivity to risk. Research from the firm’s behavioural finance team shows that investors’ aversion to losses is twice as great as the pleasure they get from an equivalent gain and the RiskMaster range was developed with this in mind.

The funds combine both strategic and dynamic asset allocation to ensure broad diversification across asset classes, capturing growth potential and keeping risk to a minimum.

Allianz is not the only fund management group to focus on the risk-profiling of funds in the run-up to the RDR. But the RiskMaster range has some quirky features which set it apart,  such as the fee promise and combining  the resources of its German-based risklab team with the multi-asset team.

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