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| 10/2024 | Issue 22: Banks, data centres and energy: how industries are embracing AI | ||
| Generative AI (Gen AI) is set to revolutionise banking. Banks can use Gen AI-powered applications that generate valuable insights from data to enhance the customer experience, drive deeper engagement and streamline processes. AI is fueling a boom in data centre demand, which will drive a spike in energy use. Substantial investment is needed to expand the existing infrastructure. We expect several trends to shape AI’s power consumption landscape. | |||
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| 08/2024 | Issue 21: Infrastructure debt and secondaries: riding the wave | ||
| Decarbonisation and digitalisation trends are increasing the need for private investment in infrastructure. Infrastructure debt investors can play a decisive role in supporting or shaping sustainability transformation. Various debt instruments are available to promote investment in sustainable infrastructure. In addition, institutional investors may also explore the secondary market a compelling option for accessing the infrastructure sector. | |||
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| 05/2024 | Issue 20: Harnessing ESG data to unlock sustainable advantage | ||
| How can we navigate the ESG data jungle and make informed investment decisions? How can we quantify the potential impact of climate change on portfolio returns? At AllianzGI, we have built dedicated tools and methodologies, eg, “SusIE” and “Climate Navigator”, to address these big questions. Harnessing ESG data and innovation will provide sources of competitive advantage. As data and systems are increasingly vulnerable to cybercrime, we also discuss Cybersecurity as a Sustainability issue. | |||
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| 04/2024 | Issue 19: Finding Hidden Gems in Private Markets | ||
| Our investment experts convened at IDEAS Connect Asia to discuss the attractiveness of private markets amidst challenges posed by a high-interest rate environment. Many investors think primarily of private equity when talking about private markets. However, exploring other asset classes like private debt is also necessary. Asian private debt is particularly appealing due to the growing demand for corporate financing in Asia. Private Debt Secondaries have also emerged as an attractive option for investors to consider. | |||
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| 02/2024 | Issue 18: Making Institutional Portfolios More Sustainable | ||
| Investors may feel overwhelmed by the range of sustainability data providers offering information on everything from ESG ratings to carbon emissions. We discuss using our proprietary tool to assess the sustainability of an investor’s listed equity and bond holdings. Amid varying definitions of impact investing, we have developed three typologies to clarify and define the impact of investments in private markets. The transition to a circular economy can help minimise waste and resource depletion. What are the opportunities for investors in the transition? | |||
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| 10/2023 | Issue 17: Gear Up for AI Revolution | ||
| The new age of Artificial Intelligence (AI) has begun. The recent advancements in generative AI, such as the launch of ChatGPT, have resulted in the growing prominence of AI and related topics in companies’ quarterly earnings calls. What are they saying? The possible applications of AI extend across various industries and sectors, which create opportunities. Many AI-related/enabled industries could be key beneficiaries of this new ecosystem. | |||
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| 07/2023 | Issue 16: The Attractions of Private Credit | ||
| This issue focuses on private credit. Direct lending in the US middle market has emerged as an attractive investment opportunity as the conventional providers of loans retreat from the segment. The Q&A with our private debt expert highlights the appeal of private debt investments. Diversifying portfolios with an allocation to private markets raises challenges for many investors. We describe an approach to modelling various asset classes, which can facilitate investors in making a strategic allocation to private markets. | |||
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| 06/2023 | Issue 15: Be Future Ready – Embracing Disruption and Sustainability | ||
| ChatGPT’s rise to the forefront demonstrated the potential of machine learning. Which industries are likely to be most disrupted by this technology? Disruption can be driven by events. Geopolitics and Covid-19 that have caused supply chain disruptions are shaping the future of global trade. The energy crisis has accelerated the shift to renewable energy. What will the future renewable energy mix look like? How should investors position themselves in the face of disruptive forces? | |||
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| 03/2023 | Issue 14: Impact Investing & Private Markets – Perfect Match | ||
| Investors can use their capital to generate a specific and measurable (social and environmental) impact whilst seeking a potential return. Investing for impact through private markets offers a viable solution to these twin goals. “Blended finance” vehicles can allow institutional investors to access a new asset class of high impact investments, for instance, emerging markets infrastructure debt. Measuring the delivery of impact in a robust and credible way is essential for impact investing in private markets. | |||
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| 11/2022 | Issue 13: Playing the Opportunity Set in Private Markets | ||
| The COVID-19 pandemic has accelerated the shift to digital communication. The demand for digital infrastructure is growing rapidly. Three types of required infrastructure can benefit from this trend in the coming years. The pandemic has changed the landscape of the real estate market. Is it still worth getting into the market? Private markets represent a broader opportunity set than public markets. Investors are attracted to private markets for different reasons. | |||
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| 07/2022 | Issue 12: Hot Styles for Hot Inflation (Multi-Style Equity) | ||
| Which sectors and styles tend to do well during periods of high Inflation? Some companies are more affected by inflation than others. Investors may want to rethink their equity strategies to fight inflation. Issue 12 of IDEAS Connect serves as a brief guide to understanding equity risk premia/factors and style investing. It outlines the implementation options and issues when combining various styles into a single, multi-style equity portfolio and provides an example of taking an active, integrated approach. | |||
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| 04/2022 | Issue 11: Disruption and Sustainability Go Hand-In-Hand | ||
| This issue shares ideas and insights across two major themes: Embracing Disruption and Achieving Sustainability. From crisis to sustainability, there are five key issues for infrastructure debt investors to watch in the year ahead. In an already disrupted world, investors may look at the opportunities emerging from new technologies to disrupt climate change (climate tech). The Ukraine crisis is a wake-up call for Europe. How does Europe plan to tackle energy market disruption and diversify its energy sources (energy transition)? | |||
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| 02/2022 | Issue 10: Impact Matters, from Footprint to Handprint | ||
| The world is facing serious global problems with climate change as an urgent topic. Issue 10 of IDEAS Connect discusses the third dimension of impact investing and other core sustainability issues that should be addressed alongside climate change. Investors have an important role to play in directing their capital to, for example, tackle biodiversity losses (ecological footprint) or foster inclusive growth (social handprint). The concept of “inclusive capitalism” is gaining steam as part of a more inclusive approach to economic growth. | |||
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| 01/2022 | Issue 9: Inflation as Opportunity for Fixed Income Investors | ||
| Inflation erodes the real value of fixed coupon payments. What are the possible ingredients in fixed-income portfolios for inflationary times? There are ways to help guard against rising inflation and/or turn inflation into an opportunity. In this issue, the first two papers together illustrate the use of different types of instruments including derivatives to take positions that may benefit from bond yield/price fluctuations. The third paper explains why inflation-linked and floating rate instruments may be considered if inflation and/or rates do rise. | |||
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| 11/2021 | Issue 8: How Private Markets Navigate Inflation | ||
| In a low-yield world with rising inflation, investors need to find ways to generate additional yield while guarding against inflationary trends. Issue 8 takes a closer look at how private markets can help navigate rising inflation expectations. Ideas for institutional investors to consider may include private equity, infrastructure, and private credit. In this issue, we include a guide to help “first-time” investors understand how private equity investing works. Asset owners may get a free copy of the IPE Real Assets’ Top 100 Infrastructure Investors reprint. | |||
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| 10/2021 | Issue 7: Taking ESG Impact Seriously | ||
| Sustainability/ESG is an unstoppable trend and will have a great impact on the investment landscape. Its importance is growing significantly in terms of ESG-related assets and relevant research studies. The increased prominence of sustainable investments should not be seen as a mere marketing hype. IDEAS Connect Issue 7 highlights the trend towards ESG and presents a major academic study, which examines the link between ESG and financial performance. Our Sustainability experts provide their views on why “ESG investing is here to stay”. | |||
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| 8/2021 | Issue 6: Beyond Climate, Investing for the Broader Good | ||
| With many governments committing to carbon neutrality, the focus will be on #GreenGrowth as the next wave of economic growth. The transition to #GreenGrowth is relevant to the achievement of most Sustainable Development Goals (SDGs) adopted by the United Nations. Investment in new technologies and innovative solutions will be needed to enable the transition. Issue 6 introduces two approaches that make SDGs investable and create positive impact: (1) SDG-aligned investing and (2) Impact investing. | |||
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| 7/2021 | Issue 5: Tackling "Lower for Even Longer" with Infrastructure Debt | ||
| If rates and yields are likely staying lower for even longer, what can investors do? Infrastructure debt is a viable option for institutional investors with a long-term buy and hold strategy. Issue 5 highlights the key factors in favour of investing in infrastructure debt and introduces portfolio ideas to enhance returns further within infrastructure debt. In addition, we provide a complimentary copy of the Infrastructure Investor’s Global Investor 50 report that ranked asset owners allocating assets to infrastructure in 2021. | |||
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| 5/2021 | Issue 4: Appreciating China | ||
| China has implemented a long-term growth strategy that will be powered by innovation in technology, data and science. Appreciating China is one of AllianzGI's major themes identified in 2021. So how can investors benefit from China’s continued rise? The most direct way is through investing in China’s equity markets. Issue 4 talks about: (1) the First 8 things about China equities – facts, figures, and statistics, and (2) A resurgent China, which explains how China is delivering on its long-term strategy and what opportunities this can provide for investors. | |||
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| 4/2021 | Issue 3: Capturing the Next Big Theme | ||
| Thinking long-term has the benefit of taking advantage of growth opportunities in megatrends that will shape the present and the future. How can megatrends be turned into specific investment themes and opportunities? Issue 3 is a guide to equity investing with a thematic lens. It includes three papers, respectively to (1) explain how thematic investing works, (2) provide a snapshot of AllianzGI’s chosen themes and investment ideas within each theme, and (3) highlight some Grassroots Research studies which help checking trends. | |||
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| 3/2021 | Issue 2: Private Credit and Asia's Middle-Market Opportunities | ||
| Amid historically low interest rates, institutional investors need opportunities designed to enhance overall portfolio returns at acceptable levels of risk. Private credit, a source of capital for Asia’s medium-sized enterprises, could represent just such an opportunity. Allocations to Asia private credit may also add diversification, with low correlations to public equity and fixed-income markets. Issue 2 helps investors understand the private credit opportunities in Asia and analyses the impact of a 10% allocation to Asia private credit on a portfolio from a forward-looking perspective. | |||
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| 2/2021 | Issue 1: Rethinking China Equity Exposure | ||
| Our research suggests a mismatch between the growing opportunity in China and its weight in a typical institutional portfolio. In our view, simply benchmarking exposure to China to global equity and/or EM indices would leave investors with an exposure that do not reflect China’s prospects. The inaugural issue of IDEAS Connect explains why investors should consider a standalone All-China equity allocation within their equity portfolios. We also include a paper sharing a day in the life of our China equity manager to illustrate AllianzGI’s equity research process. | |||
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