Following the announcement by Allianz Global Investors that they plan to take the management of the Allianz Gilt Yield fund in house as of 30th November 2015, Square Mile have today suspended their A rating on the fund. Management of the fund was previously sub-contracted to PIMCO, a subsidiary of Allianz Global Investors, with the manager named as Mike Amey. Mr Amey is an experienced investor, having successfully steered his funds though a number of market cycles.

Under their new regime, Allianz have hired ex M&G manager Mike Riddell as a Fixed Income Portfolio Manager based in London and have brought the Gilt Yield fund in-house to be run by Mr Riddell. Whilst we have every confidence that Mr Riddell will settle in well to Allianz Global Investors in time, we have a few immediate concerns regarding the fund. At M&G Mr Riddell was supported by an extremely experienced and knowledgeable team, with whom he had worked for some time. Whilst Allianz have a large and seasoned government bond team, the majority of whom are based in Paris. We would like to give Mr Riddell some time to settle into his new role and to refine the communication process with his Paris-based colleagues. In the meantime we have suspended our rating of the fund. We will continue to closely monitor it over the coming months, and will review the situation in due course.