Summary
The Allianz Resilient Opportunistic Credit (AROC) strategy is a high-yielding infrastructure credit strategy to complement the existing Infrastructure Debt offering of AllianzGI. The AROC strategy aims to generate higher-end credit returns by investing in core, core+ and core++/value-add infrastructure corporates on a mostly subordinated basis.
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Update Magazine I/2021 |
Introducing Allianz Resilient Opportunistic Credit strategy
The opportunity
- AROC grants access to higher-yielding direct infrastructure investments, targeting EUR MS +6% gross returns with an average credit profile of B+.
- AROC is a natural extension of the existing AllianzGI Infrastructure Debt platform. Inframation recognised AllianzGI again as #1 Bond Holder globally by value and deal count in 2020 for infrastructure, power and energy.
- AROC provides institutional investors with access to the full range of infrastructure debt sectors, ranging from “core” infrastructure (e.g. regulated utilities) to “core++/ value-add” infrastructure (e.g. next-generation energy technology).
- AROC investors can benefit from AllianzGI’s existing Infrastructure Debt platform, taking advantage of AllianzGI’s reputation, experience and deal sourcing possibilities.
The platform
- The AllianzGI Infrastructure Debt platform has made in excess of EUR 18bn investments since 2013 across Europe, the US and Latin America.
- The team is made up of 21 investment professionals, including the new lead portfolio manager for AROC.
- The team includes four dedicated asset management professionals who have expertise with monitoring and managing infrastructure debt investments, with nearly 90 assets currently under management.
- We are often the sole or majority investor in financing situations, meaning we can structure the financial terms and documentation to best suit our needs.
- Given our scale and reputation in the market, we have the power to be selective, and focus on opportunities which give us the optimal risk-return profile for the relevant strategy.
A/ EXPANSION OF THE ALLIANZGI INFRASTRUCTURE DEBT STRATEGY INTO PROVIDING FLEXIBLE CAPITAL SOLUTIONS
Source: Allianz Global Investors, return and risk parameters are illustrative and not to scale. Performance of the strategy is not guaranteed and losses remain possible.
3 Investment areas for AROC will be6:
B/ WHAT IS CORE, CORE+ AND CORE++/VALUE-ADD INFRASTRUCTURE?
Source: Allianz Global Investors, examples of core, core+ and core++/value-add infrastructure assets are illustrative and non-exhaustive. These examples are based on internal assessment only by Allianz Global Investors with no external qualification. Performance of the strategy is not guaranteed and losses remain possible.
The AROC strategy
Why are we the right partner?
6 Strategy terms subject to change and provided for illustrative purposes only, there is no guarantee that they will be attained.
7 Power purchase agreement, i.e. where a third party provides an offtake agreement to buy the electricity generated at an agreed price.
8 Public-Private Partnership, i.e. where a public body provides an offtake agreement to guarantee revenue.
Infrastructure 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. 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.
The volatility of fund unit prices may be increased or even strongly increased. Past performance is not a reliable indicator of future results. 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. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. We assume no obligation to update any forward-looking statement.
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 particular needs of any particular person and are not guaranteed. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer and/or its affiliated companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail.
Contact the issuer electronically or via mail at the address indicated below for a free copy of the sales prospectus, the incorporation documents, the latest annual and semi-annual financial reports and the key investor information document in English. Please read these documents – which are solely binding – carefully before investing.
For investors in Europe (excluding Switzerland): 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 and the Netherlands. Contact details and information on the local regulation are available here (www.allianzgi.com/Info).
For investors in Switzerland: This is a marketing communication issued by Allianz Global Investors (Schweiz) AG, a 100% subsidiary of Allianz Global Investors GmbH, licensed by FINMA (www.finma.ch) for distribution and by OAKBV (Oberaufsichtskommission berufliche Vorsorge) for asset management related to occupational pensions. Details about the extent of the local regulation are available from us on request.
This report does not satisfy all legal requirements on the guarantee of impartiality in investment recommendations and investment strategy recommendations and is not subject to any trade restrictions prior to the publication of such recommendations. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted.
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