Posted on Jul 30, 2010 by Sergio Ulloa
The UK's Financial Services Authority (FSA) has given authorisation to Allianz for the launch of Rosenberg Capital Management (RCM) fund in Brazil on 07 October 2010. The fund will be actively managed by a UK-domiciled Brazilian Open Ended Investment Company (OEIC), something that had never been done before.
Starting from 30 September, for eight consecutive days there will be a fixed-price offer at GBP 1.00 (EUR 1.20) per share with zero initial charges applying until 29 October. The fund will be invested in its majority towards Brazil, and nearly one third of the fund may be invested in other Latin American and international companies, provided they generate a significant proportion of their sales and earnings in Brazil.
From the investment strategy viewpoint the timing of Brazilian addition to the Allianz portfolio adds diversification and promising potential returns; given all the positive factors currently enjoyed by Brazil in terms of its economy and investment perspective. In addition to a stable government, the economy in Brazil is strong and growing at a fast pace; fuelled by a large and increasingly affluent young population, massive commodity resources and a well-developed equity market facilitating accessing these opportunities to investors.
Looking forward to next year, the earnings growth estimates of Brazilian companies rank among the highest in the world at 26 percent, whilst the market currently trades on a modest price to earnings ratio of 8.6 percent, based on the earnings estimates for 2011.
Insurance Company mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.