BRIC Stars Fund - Better by design
The BRIC Stars Fund has been carefully designed to access what we believe are the best investment opportunities of the BRIC economies.
Exploiting the BRIC phenomenon
This BRIC fund isn't just limited to exploiting the success stories in the BRIC countries. It can also invest up to one third in stocks from other countries which look set to benefit from the BRIC phenomenon.
Risk/return profile
Traditional emerging market indices are often based on market cap weightings, a measure which can result in high concentrations in one or two countries. Our BRIC fund managers have challenged this and undertaken numerous analytical studies in search of a suitable risk/return profile for the benchmark and, in turn, the portfolio. The analysis showed that:
- Adopting an equally weighted benchmark strategy where each BRIC market makes up 25% of the benchmark was superior to a market cap weighted benchmark.
- Rebalancing the benchmark to these equal proportions on an annual basis achieved the most favourable results.
The combination of these strategies resulted in the Allianz RCM BRIC model benchmark outperforming the BRIC components of the MSCI Emerging Markets Index without an increase in risk over a five year period. Whilst the fund itself is not necessarily rebalanced each year, the equally weighted benchmark prevents one country dominating the portfolio. Past performance is no guarantee of future performance.
Risks
Investing in emerging markets carries a higher risk both in terms of market and currency fluctuations. You should make sure you fully understand all the risks set out in the Simplified Prospectus before making an investment.
