The Allianz Green Bond Fund invests in investment-grade debt securities across OECD countries, focusing on green bonds seeking income and capital gains. 

Due to the fund’s green bond mandate, the investment process identifies compliant and attractive bonds regarding environmental impact and enforceability.   The fund focuses on green bond issuers who are governments or substantial private enterprises with solid credit ratings.  These selections are well-positioned to withstand any short-term fluctuations, meet green bond standards, and not be distracted by market volatility.  

The Manager has robust due diligence practices to assess the feasibility of each environmental plan raised by the investment, incorporating proprietary tools to mine and interpret data.   Allianz also follows the best pattern in green bond investing through its membership of the Climate Bond Initiative. 

There is also reasonable consideration of ESG standards throughout the investment process with investment/dividend factors.  The low turnover rate between managers and analysts is conducive to the consistency of fund styles.  This strategy does not consider the liquidity of the portfolio under normal and stressful market conditions. 

Due diligence is thorough, but we note that each analyst covering between 90 and 109 securities is overstretched and could potentially affect research quality.  The investment team is stable, and because the fund is relatively new to assess performance, it is slightly underperforming benchmarks over three years.

This fund has been reviewed by four industry veterans of the Benchmark judging committee.