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Alternatives

Alternatives
If you need to find returns outside traditional fixed income and equity markets, our alternative investment expertise can help.
What we offer
Alongside our equity, fixed income and multi-asset strategies, Alternatives form a core part of our active offering. Our capabilities cover a broad range of strategies, including:
  • Infrastructure Debt
  • Equity Long/Short
  • Merger Arbitrage
  • Options Trading
  • Commodities
  • Volatility
  • Global Macro
  • Absolute Return Bonds
  • Private Debt
  • Infrastructure Equity 
Infrastructure Debt dedicated website

Opportunities in Infrastructure Debt


Visit our dedicated website to find out more about investing in Infrastructure Debt
During a period of financial repression, where many investors are seeing their traditional fixed income assets delivering negative real yields, real infrastructure assets offer an attractive alternative. As a result infrastructure senior debt has become increasingly seen as a means of achieving enhanced, stable long-term cash flows.

Key Reasons
  • Can be used as a matching asset (rather than as a growth asset in the case of infrastructure equity).
  • Long-dated maturities and highly secure cash-flows.
  • The default probability is lower (and expected recovery rates higher) relative to equivalently rated corporate bonds over the longer term.
  • As banks retrench from long-dated infrastructure project finance (in part driven by Basel III’s banking capital requirements) AllianzGI is well positioned to create opportunities for its investors through its broad network of market participants ranging from equity sponsors to bank lending partners.

The Allianz Global Investors Infrastructure Debt platform opens up an opportunity for institutional investors. Our experienced and well resourced team, the largest dedicated infrastructure debt team active today, have a proven operational platform and investment process.

Liquid Alternatives

At AllianzGI we offer a wealth of attractive strategies that benefit from our global presence and significant investment in fundamental research including:
  • Structured Alpha Strategy – an options-based strategy which is distinguished by the combination of both long- and short-volatility positions at all times. The portfolio seeks to capitalize on the return-generating features of selling options (short volatility) while simultaneously benefiting from the risk-control attributes associated with buying options (long volatility), and to continually optimize the balance between these two types of exposure.
  • Structure Return Strategy – an options-based strategy which combines passive long equity exposure with an overlay primarily consisting of short, in-the-money index call options on the S&P 500 Index. The portfolio management team aims to create a market-neutral portfolio, pursuing gains via in-the-money call premium, the S&P 500 Index dividend yield and directional option spreads.
  • Discovery Europe Opportunities Strategy – a equity market-neutral strategy which is managed by the same team as our highly successful Discovery Europe and Discovery Germany strategies. The strategy is based on fundamental stock picking and combines a market-neutral portfolio construction with active sector and country views. The team aims to be non-consensus in their positioning and selectively employs derivatives to give additional flexibility in implementing their views.
  • Merger Arbitrage Strategy – a strategy designed to capture the residual deal risk premium in announced corporate transactions that are highly de-risked and have significant probability of completion.
  • Volatility Strategy – a strategy which, on a systematic basis, provides exposure for investors to the premium available in markets of implied versus realised volatility.

Infrastructure Equity

The Infrastructure Equity (IEQ) market offers a broad range of highly attractive investment opportunities combined with a globally growing investment market. Delivering attractive returns, stable and low volatile cash flows, and no or very low correlation to the general capital markets, Infrastructure Equity lends itself to portfolio structure optimisation.

In 2013, AllianzGI successfully launch its first renewable energy fund, Allianz Renewable Energy Fund S.A. SICAV-SIF (AREF), with total equity capital of 150 million euros. By the end of 2014, the entire capital of AREF, amounting to nearly half a billion euros, had already been invested in ten wind power and photovoltaic projects. Energy Infrastructure continues to provide highly attractive investment opportunities for institutional investors, delivering stable, high and non-correlated long-term returns.

Infrastructure can be a beneficial addition to a pension fund and the collaboration with Allianz Group provides additional comfort to our investors. Allianz Climate Solutions – the centre of competence for renewable energies at Allianz – act as advisors to AREF. Our competence as one of the world’s largest property insurers guarantees a broad knowledge base of technologies and the trends that are driving them.
Contact Us
If you have any questions or would like any further information we invite you to Contact Us.

Deborah Zurkow

Deborah Zurkow
Head of Alternatives

Before joining Allianz Global Investors, Deborah was CEO of Trifinium Advisors Limited and Head of Public Finance EMEA for MBA UK Insurance Limited.
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Spencer Rhodes

Spencer Rhodes
Alternatives Global Business Manager

Spencer Rhodes talks to Hedge Funds Review about our alternatives strategy and how we are well positioned to be a key partner to clients in this area.
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Claus Fintzen

Claus Fintzen
CIO and Head of Infrastructure Debt

Before joining Allianz Global Investors he spent eight years at MBIA/Trifinium as a Director, where he was involved in a variety of transactions, including transportation.
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Dr. Armin Sandhövel

Dr. Armin Sandhövel
CIO Infrastructure Equity

Armin joined the Allianz Group in 2001 and was appointed Allianz Global Investors CIO Infrastructure Equity in September 2012. Under his guidance, Allianz GI successfully launched its first renewable energy fund in summer 2013.
 
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested.
 
 
 
Allianz Global Investors