EUROPE - Equity manager RCM, a subsidiary of Allianz Global Investors, is set to launch a diversified growth fund in the first quarter that invests only in exchange traded funds.
RCM managing director and head of institutional business development Roger Miners said a pension fund has already committed to investing over €100m once the fund is launched. He declined to name the scheme.
The firm's diversified growth strategy is meant to offer equity-like returns with low volatility. The strategy targets around 15 different asset classes with exposure to each dynamically managed.
He could not release details about the expected return or volatility of the fund until the official fund launch.
Miners said the firm decided to gain exposure to various markets using ETFs on the advice of consultants and pension scheme managers.
He said using ETFs allows the manager "to be dynamic...(and) to take significant and swift positions." It also avoids the internal conflict of interest that could develop within the firm by using a diversified growth fund as a feeder for other funds.
He said clients would be more comfortable with RCM's use of ETFs because they won't have to question the portfolio managers' ability to pick other funds that will be successful.
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