Notification of various changes to the underlying fund of R174 Allianz Japan Equity

24 Apr 2023

We have received notification from the representatives of Allianz Global Investors Fund (SICAV) (the “Company”) of the following upcoming changes to the underlying fund of our R174 Allianz Japan Equity ILP sub-fund. These changes will take effect from 30 May 2023 (the “Effective Date”). 

Changes to the investment objective and investment restrictions

The Company has advised that in order to increase the integration of Environment, Social and Governance (“ESG”) factors consideration in the investment process, changes to the investment objective and investment restrictions of the underlying fund of the ILP sub-fund will be implemented from the Effective Date. Please refer to the Appendix in the sample client communication opposite for a comparison of the current and updated investment objective and investment restrictions.

Changes to investment strategy

From the Effective Date the investment strategy of the underlying fund of the ILP sub-fund will change from Climate Engagement with Outcome Strategy (including exclusion criteria) to Sustainability Key Performance Indicator Strategy (Relative) (“KPI Strategy (Relative)”) with a specific focus on greenhouse gas emissions (“GHG”) intensity.

In addition to the current investment objective to seek long-term capital growth by investing the Japanese equity markets, with the adoption of the KPI Strategy (Relative), the underlying fund of the ILP sub-fund will also seek to outperform its Benchmark by at least 20% in minimising the portfolios weighted average of the investee companies’ annual greenhouse gas emissions intensity in terms of annual sales over its Benchmark (“Sustainability KPI”). 

With the adoption of the KPI Strategy (Relative), a minimum of 80% of the portfolio of the underlying fund of the ILP sub-fund, shall be evaluated by the “Weighted Average GHG Intensity (Sales)”. Portfolio in this respect does not comprise derivatives and instruments that are non-evaluated by nature (e.g., cash and Deposits).  Further Information can also be found in the sample client communication opposite. 

Apart from the changes mentioned above, the other current investment policy and restrictions of the underlying fund of the ILP sub-fund will continue to apply.

We have contacted impacted policyholders and their financial advisers to notify them of the changes; a sample of which can be found opposite.

Should you have any questions regarding these changes, please contact the Investment Marketing Team.