Update Magazine III/2021 DOWNLOAD THE COMPLETE MAGAZINE
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1 Integrated, tailor-made multi-alternatives portfolios under one roof

With private markets investments, investors face lower liquidity and fungibility than with publicly traded assets, as well as limited access to information and investment opportunities. How one addresses these challenges is a key determinant of the outcome one might expect from private markets portfolios. In the past, investors often relied on heuristic rules of thumb when deciding how to allocate. However, with target allocation sizes having increased significantly, many investors find these approaches no longer appropriate to manage and grow their private markets portfolios.

As a strategic investment partner to our clients, Allianz Global Investors offers Multi-Alternatives Solutions, an integrated and holistic approach for private markets portfolios. These solutions combine all the expertise of the Allianz Global Investors investment platform13 and risklab14 – in the areas of investments, asset allocation and portfolio construction – in the form of tailor-made client portfolios. To meet client needs as effectively as possible, “invest with Allianz” programs are supplemented with complementary investments. Clients benefit from:

• Tailor-made, outcome-oriented portfolios: design and implementation of portfolios adapted to individual client objectives – income, growth, liability focus or very specific client requirements, such as fund solutions for defined contribution pension plans;
• Best-fit investments: efficient, differentiated access to investments across the full range of asset classes, regions and direct or indirect market routes; where required, combined with suitable liquid investments in order to facilitate access to private markets, and manage capital calls and limited redemptions efficiently;
• Integrated, risk-based approach: transparency and key insights across the whole portfolio through comprehensive analytical functions for planning, monitoring and reporting.

Allianz Global Investors boasts a broad platform of resources covering the full range of competencies required to implement private markets investments successfully. A team of 10 solutions experts is responsible for multi-alternatives client portfolios, and provides access to over 160 private markets investment professionals, as well as structuring and administration support teams.

2 Process

Allianz Global Investors Multi-Alternatives Solutions are integrated solutions based on a robust, coordinated process following the steps of plan, build and review. The process is flexible, and allows a high degree of client customisation.

Plan: Starting with our clients’ individual investment objectives, and the role that private markets play in their overall portfolio, we design a tailor-made portfolio strategy. Here, we combine our quantitative expertise in the field of portfolio optimisation with in-depth market know-how of alternative asset classes. In the optimisation process, we consider liquid and illiquid assets in an integrated fashion to take account of interdependencies in the risk-return profile; we can also include liquid assets as an integral part of a public-private markets strategy, wherever appropriate for client needs. The portfolio strategy is closely linked to a commitment plan designed to achieve and maintain target volumes. To project cash flows realistically, we have constructed a large database, where we combine data from external databases, proprietary investment team databases and external manager data..

Build: To implement the portfolio strategy, we select bestfit investments from the entire private markets investment universe. For efficient portfolio construction, we use a mix of direct and indirect investments. In order to meet client needs as effectively as possible, we provide access to our broad investment platform, investing alongside Allianz, supplemented by complementary external strategies (in real estate, for example). When investing with Allianz, investors benefit directly from the scale, market access and expertise of one of the world’s largest investors in private markets. The portfolio administration enables a client-specific implementation. Allianz Global Investors has the required infrastructure to launch client-specific fund-of-one vehicles or commingled funds, and performs the associated legal/tax due diligence and administration.

Review: To implement the portfolio strategy, we select bestfit investments from the entire private markets investment Finally, portfolios are subject to a regular review cycle. Investments are continuously tracked and analysed, both on an individual basis and in a portfolio context. This provides clients with a transparent and aggregated view of their investments throughout their life cycle. The portfolio strategy is reviewed at regular intervals, and modified if necessary. New market opportunities and evolving client needs are continuously reflected in the portfolio.universe. For efficient portfolio construction, we use a mix of direct and indirect investments. In order to meet client needs as effectively as possible, we provide access to our broad investment platform, investing alongside Allianz, supplemented by complementary external strategies (in real estate, for example). When investing with Allianz, investors benefit directly from the scale, market access and expertise of one of the world’s largest investors in private markets. The portfolio administration enables a client-specific implementation. Allianz Global Investors has the required infrastructure to launch client-specific fund-of-one vehicles or commingled funds, and performs the associated legal/tax due diligence and administration.

A/ WHY US?

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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