Addition of VAG Investment Restriction on the underlying funds of various Allianz funds

08 August 2019

  • J48 Allianz Emerging Asia Equity
  • R63 Allianz Japan Equity
  • R44 Allianz Total Return Asian Equity

Friends Provident International Limited (“Friends Provident International”) has been notified by Allianz Global Investors Fund (“The Company”) of the addition of VAG Investment Restriction on the underlying funds into which the above named Friends Provident International funds invest. This change will become effective from 13 September 2019 (the “Effective Date”).

The Company have confirmed the details of the VAG Investment Restriction are as follows:

VAG Investment Restriction means that an underlying fund to the extent it invests - irrespective of its specific Asset Class Principles, its individual investment objective and its individual investment restrictions which fully continue to apply - in (1) ABS/MBS may only invest in ABS/MBS which at the time of acquisition have a rating of at least BBB- (Standard & Poor’s and Fitch) or of at least Baa3 (Moody’s) or the equivalent by another Rating Agency or, if unrated, as determined by the investment manager to be of comparable quality, and which are admitted to or included in an official market or if the issuer has its registered offices in a contracting state to the agreement on the EEA or a full member State to the OECD and to the extent it invests in (2) Debt Securities (excluding ABS/MBS) may only invest in Debt Securities which at the time of acquisition have a rating of at least B- (Standard & Poor’s and Fitch) or of at least B3 (Moody’s) or the equivalent by another Rating Agency or, if unrated, as determined by the investment manager to be of comparable quality. In addition, VAG Investment Restriction means that for the case that two different ratings exist the lower rating will be relevant. If three or more different ratings exist the second-highest rating will be relevant. An internal rating by the investment manager can only be taken into account if such internal rating complies with requirements as set out in the BaFin circular 11/2017 (VA). Assets as mentioned in sentence 1 which have been down-graded below the minimum rating as mentioned in sentence 1, must not exceed 3% of underlying fund assets. If assets as described in the aforementioned sentence exceed 3% of the underlying fund assets they must be sold within six months from the day on which the exceeding of the 3% threshold took place, but only to the extent such assets exceed 3% of underlying fund assets. Investment restrictions which are related to a specific VAG investor are not covered by the VAG Investment Restriction.

Please refer to the Prospectus of the underlying funds of the above named funds for further information.

Should you have any questions regarding these changes, please contact International Funds & Investments.