Infrastructure: Investment for the future
An investment in infrastructure is an investment in the future drivers of economic and financial performance. In fact, the global infrastructure investment requirement up to 2040 is estimated at 94 trillion US dollars across the energy, communications, transport and water sectors.1
We urgently need better energy grids, railways services, and more digitalization. And the lack of modern infrastructure is something many of us experience every day.
Given the strains on public finances in many locations, the huge investment needs for infrastructure require more private capital to bridge the gap – meaning this asset class could be an attractive diversifier for the long-term portfolios of some retail clients as well.
What are infrastructure investments?
From data centres, solar farms, and green hydrogen production to hybrid trains, roads, a super sewer and an interconnector – we are invested in many projects and companies to improve today´s infrastructure and be ready for tomorrow.
Infrastructure investments are a form of "real assets" that are crucial to a country's development and often provide essential services to the public such as train services, roads, solar farms, utilities or fibre networks. They cover spending on new transport construction and the improvement of existing networks projects among other things and can support the decarbonization of many projects and companies. And at Allianz Global Investors, our investments in this sector are helping to build tomorrow’s infrastructure.
Take a look at the film to find out more.
Making the right calls
Investing in infrastructure requires a long-term view: hence long-standing experience, reliable partnerships, while being innovative to anticipate future trends and risks are key.
At Allianz Global Investors, we’ve been investing in infrastructure since 2008 on behalf of Allianz and other large institutional investors, so we know the critical role it plays in shaping the future. In that time, we’ve made over 200 investments across 6 continents and have over EUR 50bn assets 2 under management around the world. With that we have built a reputation as a trusted partner for managing complex infrastructure projects.
So, with our scale, heritage and experience, we’re strongly positioned to identify opportunities that offer meaningful returns.
Discover our investable themes
Navigating Rates
A dynamic approach is required as investors adapt to shifting interest rates, inflation expectations and exchange rates. Volatility will likely persist: while we expect monetary policy to become gradually less restrictive than in recent times, higher rates will likely uncover weak points as industries feel the impact of elevated borrowing costs. Visibility of how markets will develop remains limited, even in the short term, and expectations could be upended. But we are confident this environment also creates opportunities.
Diversification is key – across public and private markets – and we have the ideas and expertise to navigate the complexity.
Embracing Disruption
We think it’s time to recast traditional definitions of “disruption”. Once a story for the tech sector, disruption is now all-encompassing as artificial intelligence and other transformative technologies are used widely.
While technology may be driving many of the changes, this new wave of disruption could shape many aspects of our daily lives. There are also geopolitical shifts to watch as China becomes preeminent in high-tech industries like electric cars and India positions itself as an emerging power.
The implications of this new age of disruption will be profound and exponential, and together we can embrace the opportunities.
Achieving Sustainability
Sustainable investing is evolving rapidly. Increased flows rightly come with increased expectations of measurability and impact. The industry is on a journey: from a focus on ESG-led risk management to purposeful sustainability solutions and ultimately to impact investing strategies that contribute to measurable environmental or social benefits.
We believe this direction of travel towards real-world change will be the long-term trend of the decade. With a considered approach to achieving sustainable outcomes, we are alongside you at the different stages of your journey, whatever your ambitions.
Transforming Infrastructure
Infrastructure is key for the development and smooth running of economies and societies, but much of the infrastructure needed tomorrow does not exist today. Private capital can play a crucial role in funding essential projects as huge investments are needed, especially for the transition to greener energy.
Investors have many ways to enter this complex asset class and can pick their spot in the capital structure and the region or duration of the investment.
With our expertise and market access we are working with investors today to transform the infrastructure of tomorrow.
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1 https://outlook.gihub.org/
2 https://www.allianzcapitalpartners.com/en/media/news/20240321-allianzgi-with-over-eur-50-billion-aum-in-infrastructureInvesting involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. 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 for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. 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 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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