Update Magazine I/2020 DOWNLOAD THE COMPLETE MAGAZINE

Infrastructure is a growing and attractive sector

According to the Global Infrastructure Index 2019¹ only 29% of European respondents are very or fairly satisfied with their national infrastructure. An estimated USD 70 trillion is needed to finance infrastructure development worldwide by 2035, translating into an annual investment need of USD 3.7 trillion, or 4.1% of the world’s GDP.² This trend is supported by substantial capital requirements for urbanisation, the rise of the middle-class, evolving and diverging demographics, the energy transition, digitalisation, increasing ESG (Environmental, Social, Governance) concerns and generally addressing historic underinvestment in existing infrastructure segments.

At the same time, governments around the world increasingly face fiscal and public debt constraints, as well as growing healthcare and pension obligations. Private capital can play an active role in the development of infrastructure by providing funding and expertise. The underlying need for capital across infrastructure globally has supported the growth of the infrastructure funds asset class, which reached more than USD 500 billion of assets under management globally in 2018.³ This strong growth is expected to continue, with the industry predicted to reach the USD 1 trillion mark by 2023.³

Access to a global portfolio of high quality infrastructure assets alongside Allianz

AGDIEF will invest alongside Allianz in leading infrastructure fund managers across various regions, sectors and development stages. Target fund managers need to demonstrate a tangible track record, a clear investment strategy and credible ESG policies conforming to Allianz’s high standards and policies. AGDIEF also focuses on coinvestment situations that are aimed at allowing the strategy to gain specific exposure to attractive trends and opportunities, increase underlying returns and accelerate capital deployment.⁴

The focus of the strategy is to generate an attractive return by increasing the value of its investments, while ensuring ongoing distributions and risk mitigation. Since inception, the strategy has delivered very attractive returns to Allianz investors⁵ and a balanced exposure across primarily the energy, transport and communication sector, in geographies including Europe, North America and selected other jurisdictions. The strategy was originally established for Allianz, and has deployed approximately EUR 4 billion in commitments to date⁶ on behalf of Allianz investors across several co-investments on three continents, and funds domiciled on five continents.

AGDIEF aims to generate attractive returns via global core, core+ and value add infrastructure equity investments in a closed-ended structure to be managed by Allianz Capital Partners in Luxembourg.⁷

Whether through primaries, secondaries or co-investments, the strategy focuses on exposure to essential infrastructure assets supported by established regulation, proven contracts or strong market positions, showcasing strong downside protection and typically having reasonable potential to deliver steady cash flows to investors.⁴

Source: „Global Infrastructure Index“ a study from Ipsos in co-operation with the Global Infrastructure Investor Association. https://www.ipsos.com/en/global-infrastructure-index-public-satisfaction-and-priorities-2018

¹Ipsos/GIIA Global Infrastructure Index 2019

²McKinsey Global Institute - Bridging Global Infrastructure Gaps (2017).

³Preqin 2019 Global Infrastructure Report.

⁴A performance of the strategy is not guaranteed and losses remain possible.

⁵As of Q4 2019. Past performance is not a reliable indicator of future results.

⁶As of Q4 2019.

⁷Allianz Capital Partners GmbH is a duly licensed capital Investment company for alternative investment funds (AIF) of the Allianz Group, license dated from 22. October 2018, and an entity of Allianz Global Investors from 1. January 2018. Source: Allianz Global Investors, 2019.

Infrastructure equity investments are highly illiquid and designed for professional investors pursuing a long-term investment strategy only. This document does not constitute an offer to sell or a solicitation of an offer to buy interests in any fund or investment product sponsored or managed by Allianz Capital Partners (“ACP”), but is only intended to provide general information about a fund, subject to negotiation with potential investors and may not be relied upon in connection with any offer or sale of securities.

Investing involves risk. 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. 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. There is no guarantee that the strategy will succeed and losses cannot be ruled out. Investors may not get back the full amount invested.

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 forwardlooking 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 willful 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.

AD ID 1132670, 1098328, 1076346, 1085635, 1090969, 1080763, 1067082, 1095565