The Allianz Emerging Markets SRI Bond and Allianz Emerging Markets SRI Corporate Bond funds, which will be open to both retail and institutional clients, will form part of AllianzGI’s emerging market debt strategy range and will be managed by Richard House, CIO, Emerging Market Debt, Allianz Global Investors.

There is an increasing recognition of the importance of ES&G factors for EM sovereigns and corporates among asset owners, but those factors are still not entirely reflected in valuations. AllianzGI’s new range of SRI funds is well positioned to benefit from the opportunities and risks that this creates. By excluding investments that score lowest in AllianzGI’s proprietary ESG framework, we expect the overall quality of the portfolio to improve while at the same time limiting downside risk, for instance by helping to avoid unfavourable credit events.

Both funds are the first of their kind to be launched by AllianzGI, and are among the first to be launched in the industry. Both the EM SRI Bond and EM SRI Corporate Bond funds demonstrate the firm’s commitment, as an active manager, to integrate and unlock the full potential of ESG across asset classes.

Commenting, Richard House, CIO, EMD at AllianzGI, said:

“ES&G considerations are a key contributing factor to our overall sovereign investment process.  Such factors have helped us to formulate clear country views and generate alpha across portfolios. 

“With the creation of ESG indexes for EM debt that exclude issuers based on ES&G factors, more investors will integrate such considerations into their investment decisions.  

“If there is industrywide adoption of ESG best practice, EM governments and corporates that fall short, will find access to financing much more difficult.  This should force change and lead to sustained impact being felt.”

Irshaad Ahmad, Head of Institutional, Europe at Allianz Global Investors, said:

“EMD as an asset class has become significantly more diversified over recent years, with most of the growth coming from frontier economies, where ES&G factors are often overlooked.

“It is now more relevant than ever that ESG risk is at the forefront of investors’ minds. The launch of these new funds provides an innovative solution for our clients to incorporate ESG into their EMD portfolio strategy.”

For further information please contact:
Sarah Einig +44 (0)20 3246 7846
Vivi McDuell +44 (0) 20 3246 7251

Notes to editors:

• The EM SRI Bond Fund seeks to outperform JPM J-ESG EMBI GD
• The EM SRI Corporate Bond Fund seeks to outperform JPM J-ESG CEMBI BD

About Allianz Global Investors:
Allianz Global Investors is a leading active asset manager with over 730 investment professionals in 24 offices worldwide and managing more than EUR 500 billion in assets for individuals, families and institutions*.

Active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.

Active is: Allianz Global Investors

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