Allianz Global Investors has launched a new Alternative Investments group within its global investment platform.
For the first time, AllianzGI’s diverse mix of alternative investment strategies, some of which have track-records stretching back nearly a decade, will be brought into one organisational group within the firm to provide more dedicated organisational support and visibility.
The creation of a new alternatives group reflects the increasing importance of these strategies to AllianzGI’s clients in an environment of financial repression. Assets under Management in AllianzGI’s alternative strategies have more than doubled over the last year, from 2.1 billion Euros in October 2013 to 5.4 billion Euros in October 2014.
Andreas Utermann, Global CIO and Co-Head of Allianz Global Investors, says: “In response to client demand, AllianzGI has been broadening its alternatives capability. These capabilities now cover a broad range of strategies, including: Equity Long/Short, Merger Arbitrage, Options Trading, Commodities, Volatility, Global Macro, Absolute Return Bonds, Private Debt, Infrastructure Debt, and Infrastructure Equity. Alternatives form a core part of our active offering.
“In an environment of financial repression, characterised by much lower future expected returns from the beta element of all asset classes, these strategies can help investors capture alpha.”
To assist in managing the new Alternatives pillar, Spencer Rhodes will assume the new role of Alternative Investments Global Business Manager. Over the last year, Spencer has helped bring a sharper focus to AllianzGI’s Alternatives product offering. He joined AllianzGI in July 2013 from the hedge fund firm Tradewinds Investment Management LP, where he served as Head of Business Development and Chief Operating Officer.
Rhodes says: “We have a great mix of alternative strategies. Some are long-running, peer-group leaders. Others are newer, highly-differentiated strategies with significant potential. I’m excited to be working with such a talented group of investors to deliver absolute return strategies for clients in today’s challenging market environment.”
Alternatives is now the fourth pillar of AllianzGI’s global investment platform, alongside Equities, Fixed Income and Multi-Asset. Portfolio managers of AllianzGI’s alternatives strategies are based across the globe in New York, Hong Kong, London, Frankfurt, and Paris.