AllianzGI - Our outperformance fee share classes explained

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  • 01 mins 58 secs
Adam Gent, Head of Retail/Wholesale Northern Europe, gives an introduction to the recently launched outperformance fee share classes and discusses why these have been introduced to the UK market, our approach to charging, and which five funds these classes have been introduced to.


Allianz Global Investors

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I wanted to talk today about the introduction of our new performance fee share classes that we’ve launched on five of our leading strategies on our UK-domiciled fund range.

The UK market has seen a rise in the use of passive instruments for clients accessing strategies. One of the reasons for this is down to the fact that active managers haven’t delivered for clients, yet still charged their existing traditional fee models. This outperformance fee means that clients will only be charged commensurate with whether we deliver alpha or outperformance for those clients. And importantly if we underperform we will look back five years and we will have to claw back all of that underperformance before we’ll start charging an outperformance fee again.

These share classes have been introduced on five of our leading UK strategies. These are Best Styles Global, Emerging Market Equity Fund, our Global AC Equity Insights Fund, our UK Opportunities fund and also our UK Mid-Cap Fund.
We What this actually means in mechanics is that we will be charging an outperformance fee of 20% of a respective benchmark for each of those products. And conversely if we underperform we won’t be charging that 20%, just a very small flat fee.

We believe these new outperformance fee share classes are fully aligned with our core values of being an active management house. We’re offering clients more choice in terms of the way they access our strategies and the way that they pay for those strategies.

If you’d like to find out more please visit our website or indeed get in touch with the UK sales team.