Your challenge

A large life insurance company needs to reduce downside risk while still achieving its high return target.

Your portfolio

The existing portfolio allocates heavily to growth assets, which exposes the plan to significant downside risk and market selloffs.

Our solution

Allianz Global Investors demonstrates how an optimised overlay mandate can use a dynamic risk management strategy to mitigate the projected downside risks significantly while maintaining the upside potential of the portfolio’s expected returns.

Our outcome

With an integrated risk management overlay mandate, important risk metrics could be significantly reduced; however return targets would still be met within the client’s risk constraints.

⁵ There is no guarantee that these investment strategies and processes will be effective under all market conditions and investors should evaluate their ability to invest for a long-term based on their individual risk profile especially during periods of downturn in the market.

Your challenge

A mid-size endowment plan is exploring the option of adding illiquid assets to its portfolio. However, the client is not sure how to evaluate and integrate the new asset class.

Your portfolio

The existing portfolio is well-diversified across traditional asset classes merely lacking the diversifying exposure to private markets.

Our solution

Allianz Global Investors identifies the primary challenge of creating a customised private markets asset allocation, together with defining the portfolio design and implementation.

Our outcome

Develop a holistic structure covering the whole private markets investment value chain from asset allocation, products selection, portfolio build-up (J-curve management) and portfolio monitoring.

⁶ There is no guarantee that these investment strategies and processes will be effective under all market conditions and investors should evaluate their ability to invest for a long-term based on their individual risk profile especially during periods of downturn in the market.

Important Information

"risklab" and " ” are trademarks which are registered in the United States of America (USA), the European Union (EU), Hong Kong and various other jurisdictions. Legal owner of the aforementioned trademarks is Allianz Global Investors GmbH, a German capital management company (Kapitalverwaltungsgesellschaft) registered with Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) under the German Capital Management Act (KAGB) which is also licensed as a provider of financial services in Germany.

Any form of publication, duplication, extraction, transmission and passing on of the contents of this material is impermissible and unauthorised. No account has been taken of any person’s investment objectives, financial situation or particular needs when preparing this document. This is not an offer to buy or sell, or a solicitation or incitement of offer to buy or sell, any particular security, strategy, investment product or services nor does this constitute investment advice or recommendation. There is no assurance that any securities discussed herein will remain in the portfolio at the time you receive this document.

The views and opinions expressed in this document, which are subject to change without notice, are those of Allianz Global Investors and/or its affiliated companies at the time of publication. While we believe that the information is correct at the date of this presentation, no warranty of representation is given to this effect and no responsibility can be accepted by us to any intermediaries or end users for any action taken on the basis of this information. Some of the information contained herein including any expression of opinion or forecast has been obtained from or is based on sources believed by us to be reliable as at the date it is made, but is not guaranteed and we do not warrant nor do we accept liability as to adequacy, accuracy, reliability or completeness of such information. The information is given on the understanding that any person who acts upon it or otherwise changes his or her position in reliance thereon does so entirely at his or her own risk without liability on our part. There is no guarantee that any investment strategies and processes discussed herein will be effective under all market conditions and investors should evaluate their ability to invest for a long-term based on their individual risk profile especially during periods of downturn in the market.

Investment involves risks, in particular, risks associated with investment in emerging and less developed markets. Any past performance, prediction, projection or forecast is not indicative of future performance. Investors should not make any assumptions on the future on the basis of performance information in this document. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.

Investors should not solely rely on the information contained in this material in making investment decisions.

This site has not been reviewed by the Securities and Futures Commission of Hong Kong. The issuer of this site in Hong Kong is Allianz Global Investors Asia Pacific Limited.

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