Allianz Global Investors (AllianzGI) has appointed Andreas Fruschki as head of the firm’s Thematic Equity team.
The creation of the Thematic Equity team reflects AllianzGI’s commitment to thematic investing, as more clients look to make investments in a way that aligns with their interests and values. The new team, made up of five experts in thematic investing, will focus on depending and expanding AllianzGI’s thematic investing capabilities as well as producing in-depth research. The team’s focus on providing stronger thematic research will benefit AllianzGI’s clients and other investment professionals.
AllianzGI currently manages around EUR10 billion in global thematic equity strategies focusing on a range of global trends, including: artificial intelligence (AI) and water scarcity.
Fruschki joined AllianzGI in 2005. Since then, he has worked as a research analyst, Director of Research Europe and as a portfolio manager of a number of funds. His background and experience in constructing thematic portfolios will provide good experience for his new role.
Thematic funds serve a growing market of investors who want to be able to align their money with their convictions about how shifts, triggered by innovation or regulation, might provide new economic growth potential and investment opportunities. Thematic funds can provide investors with access to forward-looking, long-term growth stories like AI, or emerging themes that, as well as being associated with economic value creation, align with investors’ values and interests.
Thematic strategies can usually invest will fewer constraints and are generally not tied to a benchmark index. This allows the funds to effectively capture the disruptive stocks and trends that may prove to be influential or successful. Thematic funds are actively managed and can apply to any asset class or regions, as long as the investment derives a direct benefit from an underlying trend. By only investing in the areas of the greatest growth, thematic funds also provide the social benefit of helping start-up and emerging companies in the most cutting edge industries to raise capital.
At AllianzGI, for a trend to merit consideration as a thematic strategy, it needs to meet two key criteria:
It must represent a structural shift, typically triggered by technological, demographic or regulatory changes
There must be evidence of broader investment opportunities directly related to that shift
If those requirements are met, AllianzGI will look at firms relevant to that investment theme. If AllianzGI finds the theme investable, the firm can consider building a strategy around it or incorporate the theme into a broader strategy.
