Fund Rationale: Allianz Global Artificial Intelligence Fund

Allianz Global Artificial Intelligence Fund (the "Fund")
SGD Hedged Class AT Accumulation Shares (ISIN: LU1720051017)
SGD Hedged Class ET Accumulation Shares (ISIN: LU2357305700)

Fund Manager Page
Daily Price & Charts (Class AT)
Daily Price & Charts (Class ET)

Endowus has selected the Fund as it offers:

  • Unique and distinct exposure to companies benefiting from AI disruption, across sectors and not limited to technology;
  • Fundamentally-driven investment process to uncover companies with strong growth trajectory over the longer term and a focus on research & development;
  • Highly experienced PMs and dedicated analysts supported by Allianz’s signature Grassroots Research to further complement the fundamental research process; and
  • Retail share class with 100% trailer fee rebated back to Endowus investors to achieve lower cost of access.


Key Information

Fund Objective: The Fund aims to attain long-term capital growth by investing primarily in the shares of international companies that have some operations or relations in the area of artificial intelligence (intelligence exhibited by machines).

Suitability: Investors who pursue the objective of general capital formation/asset optimisation and/or above-average participation in price changes, have basic knowledge and/or experience of financial products, and are capable of bearing a financial loss. May not be suitable for investors who wish to withdraw their capital from the Fund within a short or medium timeframe.

Cost (Class AT, Cash/SRS):

  1. Total Fund-level Fees include fund management fee of 1.75%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Cost (Class ET, CPF):

  1. Total Fund-level Fees include fund management fee of 1.35%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 31 March 2017
Share Class Inception: 8 December 2017
Benchmark: 50% MSCI Inform
ation Technology, 50% MSCI All Country World Index

Fund AUM: SGD 13.7bn
Source: MorningStar as of 27 August 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

Sector Allocation:

Source: MorningStar as of 30 June 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the Allianz Global Artificial Intelligence Fund for its diverse portfolio of the best AI-related ideas with strong growth potential over the long term across various sectors, managed by a highly experienced team and for its track record of delivering superior risk-adjusted returns.

We like the Fund’s unique and distinct investment mandate of focusing on companies that benefit from the disruptive power of AI, which is not limited to the immediate use of AI in technology-focused areas such as big data, cloud, and robotics, but also including companies in a broader universe of AI-enabled industries such as agriculture, energy, retail, construction, healthcare, real estate, and more. The strategy employs a disciplined bottom-up research In identifying potential investments, and begins the process by sourcing for companies with AI-related products and processes by engaging closely with companies to uncover material involvement in AI, and screening out companies using “AI” as a buzzword without commercial application.

Companies are further assessed for their fundamentals, with added emphasis given to research & development commitment and management quality. The Fund allocates to companies with strong growth potential in the long run (typically 3 years), and those with favourable valuations. The team also follows up frequently with companies to track their progress in AI development. The resulting portfolio is a broadly diversified holding of 40-100 names with a heavy tilt towards US-based companies, although investors may be assured that the geographical exposure of the portfolio by revenue generation is diversified across the Americas, Asia Pacific, and EMEA.

Based in San Francisco, the team is managed by Lead PM Sebastian Thomas and co-PMs James Chen and Stephen Jue with an average experience of more than 20 years, and two dedicated senior analysts with 12 years of experience. All team members, including the PMs, function as analysts in the respective sectors of their specialisation. They leverage on Allianz’s signature Grassroots Research platform that provides independent and on-the-ground analysis and further grants access to granular details on fundamental research, thereby enabling a more effective assessment of companies in the universe.

Since inception in 2017, the strategy has demonstrated consistently strong risk-adjusted returns on a rolling basis against its peers and benchmark. We are convinced by the Fund’s track record of rewarding investors with a high risk-adjusted return and unique exposure to AI-related ideas across many sectors. While the Fund may appear as having volatility figures that are higher than its peers, investors may find confidence from the fact that the high volatility numbers have been mainly driven by the volatility of positive returns, and volatility contributed by negative returns are in fact similar to its benchmark. Nevertheless, given the specific focus of the Fund, the Fund should be seen as a satellite holding for investors attempting to benefit from the long-term developments in secular trends, rather than a core allocation portfolio.


Updated by Endowus: August 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.