The new fund will mirror the Cayman-domiciled Allianz RCM Discovery Europe fund, which draws on €30 million ($43 million) in assets and is managed by Harald Sporleder and Ralf Walter. Messrs Sporleder and Walter will also manage the new Discovery Europe Strategy fund, two thirds of which will comprise high conviction stocks.

“We are seeing high levels of demand from clients for products with more visible returns but lower volatility. The existing Allianz RCM Discovery Europe fund has had impressive performance since inception so we are delighted to launch a UCITS III fund which will allow more investors access to this successful strategy. We believe that funds which can deliver more predictable returns in today’s unpredictable market environment will see continued and growing demand,” said Nick Smith, a managing director of Allianz Global Investors Europe.

Allianz Global Investors has €993 billion ($1.42 trillion) under management as of 31 March 2009 and is the asset management arm of German insurer Allianz.