Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

34118

AllianzGI launches new strategies to target positive change aligned with SDGs

RELATED TOPICS​

Allianz Global Investors (AllianzGI) has launched three new equity strategies that allow clients to invest in positive change in alignment with the United Nations Sustainable Development Goals (SDGs).With the launch of Allianz Positive Change, Allianz Clean Planet and Allianz Food Security funds, AllianzGI builds on its thematic investing offering and more than 20 years of experience in sustainable investing. The new strategy range complements our existing thematic franchise, including the Allianz Global Water strategy and the Allianz Smart Energy fund.

 
The three new SDG-aligned equity strategies will be managed according to AllianzGI’s thematic approach. The portfolio management team will look closely into eight larger themes: social inclusion, health, financial inclusion, education, food security, water, clean land/circular economy and energy transition. They will then identify specific outcomes targeted by one or more of the SDGs to select companies which are contributing to the attainment of the underlying targets with a solution.
 
This approach to SDG investing also allows investors to tap into specific, tangible themes and underlying investable topics such as education technology in the case of the education theme or sustainable agriculture in the case of food security.
 
The SDGs define global sustainable development priorities and aspirations for 2030 and seek to mobilise global efforts around a common set of goals and targets.
 
Barbara Rupf Bee, Head of EMEA at AllianzGI, says: “Investment strategies aligned with SDGs are a strategic priority for our business, and we see them as just one way of responding to the increased demand for sustainable investments. This demand comes from investors who acknowledge that companies at the frontier of developing real-world solutions – that are also responsibly and sustainably managed themselves – might also be attractive from a return perspective.
 
“We aim to make SDGs investable by using our thematic investment approach to identify attractive investment opportunities. We are excited to expand this promising investment area, helping investors to direct capital into potential growth companies, while also addressing the biggest issues facing the planet.”
 
Andreas Fruschki, Head of Thematic Investing at AllianzGI, says: “This is an attractive market for investors as it provides new business opportunities, new solutions and the related dynamics. We are consequently looking for long-term winners with strong growth potential and resilient business models. Businesses in these areas show a certain resilience against macroeconomic and political volatility.
 
“While each company that we consider eligible for an SDG strategy has a clear role to play in achieving the relevant SDG, the exact extent of its contribution to the UN goal can be difficult to quantify. That makes a thorough, qualitative research process essential. Given the global focus on the UN goals, companies that directly support them are likely to benefit from increased interest and growth. This may represent a strong investment case generating sustainable returns. SDG-aligned investing delivers environmental and social returns alongside financial performance.”
 
Allianz Global Investors’ framework for SDG-aligned investing respects the importance of good corporate behaviour and the risk of creating negative externalities while attempting to create positive solutions. The SDG-aligned strategies take an active approach to ESG integration, including a detailed assessment of the most significant risk factors, and exclusion criteria, all to safeguard against harmful activities and corporate controversies.
 
The 17 Sustainable Development Goals have 169 underlying targets, addressing global challenges related to society and the environment. When identifying the SDGs, the UN quantified how much investment was needed to meet these goals, highlighting the role of private capital in this process. According to estimates USD 2.5 trillion of capital is needed annually to finance the achievement of the goals.
 

Latest News

Iress has announced that it has extended its partnership with Dow Jones Newswires to give..
The Financial Conduct Authority (FCA) writes that in new rules, it has set out a..
GAM has announced it has reached a definitive agreement to transfer its Management Company activities..

Related Articles

infrastructure headline
The new Labour government has launched a GBP7.3 billion National Wealth Fund which will target private capital to support the UK’s growth ambitions...
The new Labour government has launched a GBP7.3 billion National Wealth Fund which will target private capital to support the..
Tom McPhail, lang cat
Today’s news of a landslide victory from the UK’s Labour party, finds that the markets had mostly factored in a widely predicted Labour win...
Today’s news of a landslide victory from the UK’s Labour party, finds that the markets had mostly factored in a..
Pensions might not feature at the top of the political parties’ manifesto promises this election, but their role in driving the UK’s growth ambitions is increasingly on investors’ agendas...
Pensions might not feature at the top of the political parties’ manifesto promises this election, but their role in driving..
Duncan Higgs, Bfinance
Bfinance has released its latest report, "Investment Management Fees: Fairness Revisited," with a comprehensive analysis of current trends and challenges in investment management fees and costs across various asset classes...
Bfinance has released its latest report, "Investment Management Fees: Fairness Revisited," with a comprehensive analysis of current trends and challenges..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by