Private equity impact investing

At AllianzGI, we strive to provide our clients access to investments generating positive environmental and social outcomes. For a long time ‘investing in a good cause’ was not regarded as an investment activity in the strict financial sense, but was assigned to the area of charity.

The reason for this is the lack of an intention to generate returns. But any tension between good purpose and yield is only illusory and impact investments help bridge the gap. What was a niche about 10 years ago is turning into one of the fastest growing investment segments.

Impact investments are investments that, in addition to seeking a financial return, are also expected to have a positive impact on the environment or society. It is important that the targeted ecological and/or social effects are explicitly part of the investment strategy. 

Impact-oriented investments can close the gap between good causes and good returns

Today’s consensus is that impact investments have to pay into at least one – ideally several – of the 17 Sustainable Development Goals (SDG) of the United Nations. These goals, to which the UN committed itself in 2015 with a view to achieving them by 2030, cover a broad spectrum: from combating poverty and securing food, health and education via gender equality, sustainable water and energy supply to combating climate change and promoting peace

The question of returns remains. The good news is that, in a survey of the Global Impact Investing Network (GIIN), the majority of impact investors – more than 90 percent – stated that their return expectations had been met or even exceeded.¹

Looking at impact investments, an immense worldwide financing need is being met by an increasing willingness to invest, not only to generate adequate returns but also to make a positive impact. This is happening at a time when more and more companies are recognizing the need to assume responsibility for society as a whole, in addition to pursuing their own interests and those of their shareholders. Impact considerations are therefore likely to be increasingly integrated into every investment decision.

Looking forward, impact investing has the potential to become the investment segment of the future.

¹Source: GIIN (Global Impact Investing Network, 2018): Annual Investor Survey

For professional investors only, strictly private and confidential solely for the intended recipient
Private debt investments are highly illiquid and designed for professional investors pursuing a long-term investment strategy only.

Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including positions with respect to short-term fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions. The volatility of fund unit/share prices may be increased or even strongly increased. Past performance does not predict future returns. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency. This is for information only and not to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell any securities. The products or securities described herein may not be available for sale in all jurisdictions or to certain categories of investors. This is for distribution only as permitted by applicable law and in particular not available to residents and/or nationals of the USA. The investment opportunities described herein do not take into account the specific investment objectives, financial situation, knowledge, experience or specific needs of any particular person and are not guaranteed. The Management Company may decide to terminate the arrangements made for the marketing of its collective investment undertakings in accordance with applicable de-notification regulation. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable at the time of publication. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors GmbH.

For investors in Europe (excluding Switzerland)
For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact the issuer at the address indicated below or www.allianzgi-regulatory.eu. Austrian investors may also contact the Austrian information agent Allianz Investmentbank AG, Hietzinger Kai 101-105, A-1130 Vienna. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established branches in the United Kingdom, France, Italy, Spain, Luxembourg, Sweden, Belgium and the Netherlands. Contact details and information on the local regulation are available here (www.allianzgi.com/Info). The Summary of Investor Rights is available in English, French, German, Italian and Spanish at https://regulatory.allianzgi.com/en/investors-rights.

For investors in Switzerland
For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact [the Swiss funds’ representative and paying agent BNP Paribas Securities Services, Paris, Zurich branch, Selnaustrasse 16, CH-8002 Zürich - for Swiss retail investors only] or the issuer either electronically or by mail at the given address. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors (Schweiz) AG, a 100% subsidiary of Allianz Global Investors GmbH. The Summary of Investor Rights is available in English, French, German, Italian and Spanish at https://regulatory.allianzgi.com/en/investors-rights.

AdMaster 2198934