Allianz GI today announced that the Allianz Working Capital (ALWOCA) strategy that was launched three years ago is managing EUR 500mn from institutional investors across Europe. ALWOCA is an ultra-short duration open-ended credit strategy financing the working capital and commercial trade contracts for both small and medium enterprises to large corporates.
In April 2019, Allianz GI made the asset class investable for professional clients. Since then, AllianzGI has grown into one of the leading asset managers in the market investing in trade finance.
AllianzGI has built a robust operational platform and works with multiple sourcing partners to increase portfolio diversification and to reduce reliance on a single sourcing partner or instrument type. The ALWOCA strategy invests in a broad range of Trade Finance instruments, including invoices, receivables backed loans, factoring, documentary credits, notes, bonds and other instruments.
The goal is to build a diversified portfolio across trade finance products, sectors, countries and company sizes. The average credit quality of the portfolio using long term unsecured ratings is comparable to a BB rating. The strategy has a short 90- day maturity profile which can help to navigate volatile markets and a rising interest rate environment. As a result of the investment team’s thorough credit selection process, the strategy has had no defaults in the core corporate book since its inception.
Allianz GI is offering a broad range of investment solutions and manages around EUR 93bn in private market assets.
“Trade finance has become an attractive asset class for many investors, in particular as investors seek refuge from market volatility. However, accessing trade finance requires the right operational framework, a robust infrastructure and a thorough due diligence process. Given that global demand for trade finance despite the pandemic and the invasion in the Ukraine has grown significantly, institutional investors can play an important role to bridge this trade finance gap while aiming to generating stable returns.”Martin Opfermann, Senior Portfolio Manager, and David Newman, Head of Global High Yield, Allianz Global Investors