Update Client Magazine for Institutional
Investors

Infrastructure investments

Opportunities with infrastructure debt

In the current low interest-rate environment, which investments still offer the prospect of real returns and stable cashflows? The choice is becoming increasingly difficult. Infrastructure debt could be an option for investors with a long-term horizon: income from infrastructure investments is more stable and more predictable than income from equities or bonds. Investing in this illiquid alternative asset class nevertheless requires a thorough understanding of how infrastructure projects work. Access to this fascinating market is hampered by high barriers to market entry.

The Infrastructure Debt team at AllianzGI is one of the biggest in the market, with many years’ experience in the sourcing and structuring of infrastructure investments. AllianzGI’s product range covers the entire risk/return spectrum of the asset class.

November 2017

Outlook

8 takeaways from our Investment ­Forum in New York

In early September our strategists, economists and portfolio managers from around the world convened in New York for our semi-annual Investment Forum. Their objective? To explore the way forward for our clients in a world where taking risks is necessary to earn a return, but where opportunities are getting harder to find. A summary of the key results is shown on the next few pages.

The highlights:

  • The global economic upturn is no ­longer synchronised.
  • Given the peak in liquidity, we are facing a big adjustment, should central banks embark on quantitative tightening.
  • Risk management must be more ­customised and well thought-out.
  • Active management remains essential.

November 2017

Award

Greenwich Quality Leader for the first time in Europe

Allianz Global Investors has been named the Greenwich Quality Leader for institutional investment management in Europe for the first time this year. Moreover, AllianzGI has been named Greenwich Quality Leader for the seventh consecutive time in Germany.

One of Allianz Global Investors’ major strengths, Greenwich Associates says, is the quality of its client service. We stand apart from our competitors in particular in our advice on investment policy and strategy. The survey also found that AllianzGI has established itself as a leading supplier of active asset management in Continental Europe.

November 2017

Survey

RiskMonitor 2017: Investors face a risk/return problem

Geopolitical tensions are institutional investors’ top concern at present, according to our new RiskMonitor survey.1 For the first time since the global study was launched in 2013, geopolitics have eclipsed other risk factors, including concerns about rising interest rates and a slowdown in worldwide economic growth. As a result, investors are focusing more on risk management, and cutting their return expectations.

1 RiskMonitor is a study with institutional investors, globally conducted by Allianz Global Investors together with CoreData Research. The survey period for the current analysis was April through May of 2017. This is the fifth time the RiskMonitor survey has been undertaken. Participants in this year’s survey were institutional investors from America, Europe, the Middle East, Africa and the Asian-Pacific region. The investors’ assessments regarding risks, portfolio construction and asset allocation were analysed.

November 2017

Cost assumption

AllianzGI absorbs cost of broker research

Allianz Global Investors will in future bear the cost of analysis by third parties (broker research) for all its funds and client mandates that fall within the scope of MiFID II.
Until now, these expenses have been covered by fees for securities trading. Under the European securities directive, MiFID II, brokers, banks and securities trading firms must invoice separately for analysis and research from 2018 onwards. Fund companies, in turn, have the option of passing these costs on to the funds and mandates under their management, or absorbing them themselves on their own book.

November 2017

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