After many years of persistent financial repression coupled with heightened volatility in the capital markets, investors are increasingly challenging the role played by high rated government bonds as a core holding, and by equities as the main driver of returns in a portfolio. Consequently, numerous investors are looking for new sources of returns in their portfolios, which to date have been dominated by equity and interest rate risks. Liquid alternative investment strategies, which are frequently available in a UCITS-compliant mutual fund format, (and which may also be referred to as absolute return strategies), can offer a viable means of enhancing the risk / return profile of a portfolio and, in some cases, offer a bond-like, or even bond-substitute, return profile.

Infrastructure Debt is an asset class for institutional investors that aims to provide long-term stable returns and cash flows. At Allianz Global Investors we source high credit quality Infrastructure Debt transactions by identifying, differentiating and managing risk. By originating such placements privately we are able to source opportunities with attractive illiquidity spreads and offer improved access to a diversity of sectors that would otherwise be closed to public investors. The team differentiates itself through sourcing and origination of private placements, innovative financial engineering and through the enhanced credibility that our current client base delivers with borrowers.

Climate change is all around us – it is a key long-term, systemic and global risk. What can institutional investors do to integrate climate change-related investment risks into their portfolio strategies?