Allianz Global Investors will invest in renewable energy projects that offer stable returns for institutional clients through a newly established investment team.
Renewable energy projects, such as solar parks and wind farms, are expected to play a growing role in the energy mix as governments strive to hit green targets. Allianz GI said these and other large infrastructure plays could offer an alternative to government bonds for large institutional investors.
The team, which will also invest in infrastructure equity, is led by Armin Sandhoevel, chief executive of Allianz Climate Solutions, a division that offers insurance and advisory services to renewable energy products.
“Stretching CO2 targets can only be met with significant investment in renewable energies that are capable of being fed in to the national grid. Stable cash flows and a correlation to inflation create for investors an interesting asset class in the ongoing low yield environment,” said Sandhoevel.
Five other employees of Allianz Climate Solutions are in the new team, including Roderick MacDonald and Martin Ewald as portfolio managers.
Allianz GI recently launched an infrastructure debt team. Together, the two teams will serve clients who want long duration investments without the need for liquidity, said Andreas Utermann, global chief investment officer at Allianz GI.
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