Rating changes to the Allianz Gilt Yield fund

Following a period of review, Square Mile Investment Consulting & Research have re-introduced the Allianz Gilt Yield fund to their Academy of Funds. The fund's rating was suspended in October following the announcement that Allianz were bringing management of the fund back in house. It had previously been subcontracted to PIMCO, a subsidiary of Allianz Global Investors. Under their new regime, Allianz Global Investors have hired Mike Riddell to run this mandate. Mr Riddell has many years of experience in managing bond funds for some of the UK's biggest asset management houses. However, he has little experience of managing pure UK government bond mandates. For this reason we have awarded the fund a Positive Prospect rating, reflecting our appreciation of Mr Riddell's careful and considered approach, his knowledge of bond markets and wider macroeconomic forces, and the support of the experienced Allianz team, whilst acknowledging Mr Riddell's lack of relevant track record in gilts.