Allianz Global Investors (AllianzGI) today announces the launch of its second trade finance fund, the Allianz Working Capital Investment Grade Fund (ALWOCA IG). The fund builds on the success of its predecessor, Allianz Working Capital Fund (ALWOCA) that was launched three years ago. The AllianzGI Trade Finance team is managing EUR 500 million from institutional investors across Europe.
The new fund ALWOCA IG will offer investors exposure to ultra short-term trade finance receivables with Investment Grade credit risk and will therefore be accessible for a broad range of investors who have restrictions on high yield rated investments but would like to enjoy the defensive nature of short-dated, diversified, trade finance investments.
ALWOCA IG is designed to offer attractive yield, weekly subscriptions and redemptions and diversification benefits. Its short interest rate duration allows resets to rising rates whilst its short spread duration and no reliance on capital markets should help reduce volatility in case the credit cycle deteriorates.
David Newman, Head of Global High Yield with Allianz Global Investors.
“We are excited to launch this Investment Grade version of the existing ALWOCA fund. We believe the characteristics it offers are particularly relevant to investors today in an environment of heightened geopolitical tensions, volatile bond yields and rising inflation. In this environment, trade finance can offer the flexibility and potential returns to help investors navigate the uncertain outlook”.
The Fund builds on AllianzGI’s existing trade finance team and its rigorous investment process. Transactions will be sourced through the existing network of sourcing partners and our established operating platform provides a robust backbone. AllianzGI offers a broad range of investment solutions and manages around EUR 90bn in private market assets.
Martin Opfermann, Lead Portfolio Manager.
“The launch of this fund further bolsters our trade finance offering for our clients. We believe that ALWOCA IG is an attractive “cash plus” alternative that will stabilize portfolios in today’s world of elevated asset class correlations.”