Allianz Global Investors (AllianzGI) is on target to hit €100bn of assets under management (AUM) in private markets by the end of 2024, chief executive officer Tobias Pross said during an event organised by the asset manager in Berlin this week.
AllianzGI is aiming for a quarter approach in terms of AUM split per asset class, instead of a third, taking into account the growth trajectory in private markets, he added.
The goal is now to make its private market business as strong as its public listed business, the CEO said: “I truly believe that [private markets] is a segment that will provide us with new revenue stream, a low correlating long yielding asset, which is doing well.”
The German multinational financial services company Allianz group backs its asset management company AllianzGI as co-investor in private markets, for example in infrastructure, and Allianz Capital Partners (ACP) assists with building an alternatives portfolio.
AllianzGI had assets of €520bn at the end of the second quarter last year, €63bn managed in the US, €422bn in the EMEA region, and €34bn in the Asia Pacific region.
According to the asset manager’s presentation during the event, 31% of its total AUM (€160bn) is invested in fixed income, 25% (€120bn) in equities, 28% (€147bn) in multi-assets and 17% (€87bn) in private markets.
Fixed income still represents a third to its total AUM, the largest share in AllianzGI’s investment portfolio, and public markets are still a mainstay with €430bn invested. Additionally, 80% of AllianzGI’s trading is done through AI and technology, with just private markets and discretionary portfolios using portfolio managers and analysts, the CEO said.
Strategies are bought by clients mostly in the EMEA with €426bn, followed by Asia Pacific region with €91bn, considered by the CEO “a fantastic growth story” for the firm.
Asia and ETFs
In Asia, AllianzGI manages €99bn on behalf of clients and it is on track to establish a stronger onshore presence in China, Pross said at the event.
“We will have a fund management company fully owned by us based in Shangai – we assume that by the end of the year we will get approval by the regulator. Our back office will remain in Hong Kong,” he said.
In Indonesia the firm has acquired PT RHB Asset Management because it found it difficult to receive a license to operate in the country, he added. The asset manager has just launched the first equity Sharia fund in Indonesia.
The equity Sharia fund will “help us also in the Middle East,” Pross noted, adding that “the investment appetite in Asia is really strong, and we need to be on the ground”.
Speaking about investments cost, the CEO said that AllianzGi is also exploring the use of active ETFs, to catch up with trends in markets like the US.
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