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AllianzGI reports strong growth in sustainable assets
Allianz Global Investors (AllianzGI), a leading active asset manager, has grown the volume of sustainable investments it manages over the last three years from around EUR 25bn to EUR 165 billion by the end of 2019.
Sustainable assets grew to EUR 165 billion and company engagement increased by 31% according to new Sustainability Report
Coronavirus set to strengthen drive towards sustainability
Climate transition becoming a central theme across asset classes
AllianzGI responds to growing interest for strategies with positive societal outcomes with new UN SDG-aligned offering
Allianz Global Investors (AllianzGI), a leading active asset manager, has grown the volume of sustainable investments it manages over the last three years from around EUR 25bn to EUR 165 billion by the end of 2019. The largest proportion of these assets, 80%, are a result of the asset manager’s push towards integrating ESG into portfolios’ opportunity and risk management.
According to AllianzGI’s new Sustainability Report, sustainably managed assets across the categories Integrated ESG, SRI, SDG-aligned and Impact investing grew by around EUR 20 billion or 14% in 2019 alone. Last year’s increase in assets is due to 28 new sustainability strategies that were either newly launched or converted from traditional strategies, and innovations in the area of impact investing.
Active stewardship, through engagement and proxy voting, also continues to become increasingly important. In 2019, AllianzGI intensified its company engagement programme. It engaged on 448 occasions (+31% vs. the previous year) with 333 companies (2018: 247) on 711 individual topics (2018: 482). Corporate governance is traditionally the main focus, but AllianzGI also addressed environmental and climate risks with over 80 (82) companies. Climate concerns have also emerged as an important theme in proxy voting: in a report by ShareAction, an NGO, on how global asset managers deal with climate-related shareholder proposals, AllianzGI was ranked 2nd out of 57.
Increasingly, investors are looking for investments that combine a financial return with a positive contribution to wider societal objectives, such as the UN Sustainable Development Goals (UN SDGs). AllianzGI sees this as growth driver and is – on the back of its focus on Global Water investments – now introducing a new, SDG-aligned segment in its sustainable investment offering.
Tobias Pross, CEO of Allianz Global Investors, says:
“With the advent of the UN Sustainable Development Goals, we play a critical role in directing funds towards investments that support and enable these targets.. As a leading investor in alternatives investments, we can also identify and access opportunities in private-market investments – including renewable energy – that are at the frontier of change on the journey towards a more sustainable future.”
“Given the human and financial damage inflicted by the corona crisis, the focus on responsible and sustainable business conduct is likely to increase. And while its effects are devastating,, we should draw hope and inspiration from the unprecedented global solidarity shown during this crisis. A similar kind of international focus and co-ordination will be required to prevent global warming and facilitate the transition to a carbon-neutral economy.”
“While the opportunities of this transition are important and exciting, the process will be disruptive: there will be winners and losers. We believe that only active asset managers can navigate this disruption – by engaging proactively with firms and making active investment choices – to deliver change that is measurable and enduring.”
Beatrix Anton-Groenemeyer, Chief Sustainability Officer at Allianz Global Investors, comments:
“Following the coronavirus outbreak, will governments take the opportunity to focus their stimulus programmes on some of the other major issues facing the planet – such as facilitating pathways to decarbonisation? It may be too early to say, but these topics must remain high on decision-makers’ agendas. “
“The nature of some risks is that they are almost impossible to predict – so-called “black swan” events like the coronavirus outbreak – but the consensus is that there is a “green swan” risk emerging: the failure to address climate change. We are at a turning point, where private investors want to invest their money not only for positive returns but also in a sensible, beneficial way for society. In the medium to long term, decarbonisation is becoming a central investment theme, as the Net-Zero Asset Owner Alliance, the UN-convened institutional investor initiative, shows. Active stewardship and engagement can be effective levers to facilitate the required change.“
A copy of the Sustainability Report can be found here.
AllianzGI has long track record in sustainable investing and ESG research and is committed to, and in the process of, embedding ESG factors across all of its investment strategies. AllianzGI already manages EUR 135bn of assets according to its Integrated ESG approach as well as EUR 23bn in dedicated SRI strategies. AllianzGI manages around EUR 7bn of impact investments. All investment professional have access to proprietary ESG research and pursue an active stewardship approach for their portfolio holdings. Just recently, AllianzGI received an ‘A+’ from the PRI Association for its overarching approach to ESG Strategy and Governance for the third year in a row.
About Allianz Global Investors
Allianz Global Investors is a leading active asset manager with over 800 investment professionals in 25 offices worldwide and managing more than EUR 563 billion in assets for individuals, families and institutions*.
Active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.
Artificial Intelligence (AI): From trend to global growth driver in three years
According to a Grassroots® survey from Allianz Global Investors, one of the world’s leading active investment managers, roughly 75% of the 550 IT decision-makers surveyed globally, are expecting their budgets to increase in 2020 compared to the previous year.
According to a Grassroots® survey by Allianz Global Investors, companies continue to increase their IT budgets
70% of those surveyed have one or more AI projects currently ongoing or already incorporated
Actively managed thematic funds such as the Allianz Global Artificial Intelligence fund make structural changes investible at an early stage
Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Investing in the water-related resource sector may be significantly affected by events relating to international political and economic developments, water conservation, the success of exploration projects, commodity prices and tax and other government regulations. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.
This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of his document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional/professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP (Australian Registered Body Number 160 464 200) is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.
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