Fund Rationale: Allianz Thematica Fund

Allianz Thematica Fund (the “Fund”)
SGD Class AT H2 Shares (ISIN: LU2023250843)
Fund Manager Page
Daily Price & Charts

Endowus has selected the Fund as it benefits from:

  • Rigorous theme formulation and identification, and exposure to 5 to 7 themes at any given time that has long-term growth potentials driven by secular trends;
  • Multiple alpha levers including active theme selection, ongoing theme review and adaptation, and active stock selection, with rotation of themes being the most important source of alpha generation;
  • A sizeable thematic equity team led by experienced portfolio managers leveraging Allianz Global Investors’ global equity research platform; and
  • Retail share class with 100% trailer fee rebated back to Endowus investors to achieve lower cost of access.

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Key Information

Fund Objective: Aims to attain long term capital growth by investing primarily in global equity markets to build a diversified portfolio with a focus on theme and stock selection.

Suitability: Investors who pursue the objective of general capital formation or 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.

Cost: 

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  1. Total Fund-level Fees include fund management fee of 1.60%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 1 August 2019
Share Class Inception: 8 December 2016
Benchmark: MSCI All Country World Index

Fund AUM: SGD 4.35bn
Source: MorningStar as of 23 July 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
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Sector Allocation:
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Source: MorningStar as of 31 May 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 Thematica Fund as firstly, the Fund is built based on a rigorous process of theme formulation and identification. The portfolio management team defines and identifies themes that have their origins in structural shifts induced by technology, regulation, or socioeconomic factors. Once a theme is identified, sub-themes are further defined and verified by subject matter experts. The team believes that fewer themes have the advantage of more focused exposure; it would usually come at the cost of insufficient diversification and missing exit points. Therefore, the Fund offers exposure to 5 to 7 high conviction themes at any time.

Another unique feature that the Fund offers is its active theme selection/timing. The team believes that while some worthy themes have a long life span before them, that does not necessarily make them good investments at every point in time. It is, therefore, important to understand which stage the theme is at and the cyclicality it might experience. This process requires as much bottom-up discipline and top-down understanding as single stock investing. With such a belief, the team constantly reviews the themes, and the composition of the Fund will constantly evolve as new themes emerge and older themes peak.

Each theme is represented by 15 to 30 stocks that have material exposure to the theme. Stock ideas are crowdsourced from the Allianz Global Investors’ global investment platform; this is necessary because unlike traditional investing, thematic investing spans multiple geographies and sectors. Each stock is picked from a respective theme universe based on their exposure to the theme and their fundamental attractiveness. As the focus of this fund is more on theme exposure, stock specific risk is limited by capping single stock exposure at 1%.

Finally, the Fund is led by two experienced fund managers who bring together thematic investing and security research experience. Andreas Fruschki is the Head of Thematic Equity and has 15 years of experience while Gunnar Miller is the Global Head of Research with 34 years of experience. They are supported by a growing thematic equity team located globally who helps to identify and formulate themes, and pick stocks that are linked to the theme.

Investors should note that as the Fund does not take a traditional perspective of classifying sectors, at any time its sector and country allocation could deviate largely from the benchmark allocation. We also recommend investors to diversify exposure to this fund with allocations with other broad market exposure.

Below are some of the themes that the Fund has invested in, for more up-to-date information, please refer to the Fund Manager Page.

Next Generation Energy
This theme invests in enablers of clean energy generation, efficient energy storage and sustainable energy consumption.

Pet Economy
This theme invests in companies that provide products or services for pets and other animals.

Health Tech
This theme is based on business models that enable electronic transformation within the healthcare industry.

Digital Life
Digitalisation is increasingly transforming banking services and especially the millennials are rapid adopters of smartphone-based transfers. Digital personal finance along with the regulatory push to move societies towards cashless payments in general is resulting in an attractive investment trend into software and IT-equipment providers which provide the necessary infrastructure.

Clean Water and Land
Water infrastructure supply, efficiency and quality are three dimensions along which investments are necessary to address the growing supply/demand gap.

Artificial Intelligence
Artificial Intelligence is a theme related to using learning networks to identify patterns or harvest information from large data sets, which allow companies to save costs or provide customers with a more attractive offering.

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Updated by Endowus: July 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.