Industry Voice Video: Homing in on fairer housing finance

clock • 4 min read

Creating a new path for renters to become homeowners

According to the 2021 census, the number of households renting in England and Wales has more than doubled in the last two decades, highlighting the massive growth of "generation rent". Currently, there are 5 million households that are privately renting, as home ownership rates continue to decline.

By approaching what we believe is largely a market-based problem with a market-based solution, we believe there is an opportunity for institutional investors to invest at-scale in UK residential property via a fundamentally defensive strategy which prioritises diversification. The strategy aims to protect investor returns from higher inflation and, by its very nature, the product addresses a fundamental societal need familiar to anyone who has invested in, or just lived in, the UK - the difficulties faced by "reluctant-renters" desiring to become owner occupiers.

In this short video, Adrian Jones -Lead Portfolio Manager Infrastructure, Debt and Home Equity, Allianz Global Investors, explains why investing in residential property is an attractive proposition for investors and how institutional investors could hold the keys to the UK home ownership crisis.

 

Disclaimer

For professional investors only. Home Equity Income and Residential Property investments are highly illiquid and designed for professional investors pursuing a long-term investment strategy only. This is a marketing communication. Please refer to the legal and regulatory documentation of Home Equity Income Fund (the "Fund") before making any final investment decisions.

Target return assumptions may be based on the investment team's experience with predecessor funds, market participants and other stakeholders of the industry. Actual returns from an investment in the portfolio over any given time horizon may vary significantly from the target return assumptions. Future performance is subject to taxation which depends on the personal situation of each investor and which may change in the future. To the extent we express any prognoses or expectations in this document or to make any forward-looking statements, these statements may involve risks . Investments in the Fund entail a high degree of risk and no assurance can be given that the investment objectives will be achieved or that investors will receive a return on their capital. Please refer to Fund legal documentation for a full description of General and Specific Risk Factors.

Actual results and developments may therefore differ materially from the expectations and assumptions made. On our part, there is no obligation to update target return assumptions and forward-looking statements presented herein.

Allianz Global Investors may terminate arrangements made for marketing, including by way of de-notification

Investing involves risks. The value of an investment and the income associated with it can go down as well as up. Investors may not get back the full amount invested. Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor is resident, the investor should be aware that the performance shown may be higher or lower due to exchange rate fluctuations when it enters the local currency of the investor is converted. The views and opinions expressed herein, which are subject to change without notice, are the views and opinions of the issuer and / or affiliates at the time of publication. The data used come from various sources and are believed to be correct and reliable. The terms and conditions of all underlying offers or contracts that have been or will be made or concluded take precedence. This document does not contain any statements about the suitability of the investments described here for the individual circumstances of a recipient.

For a free copy of the Fund legal and regulatory documentation, and/ or further information, contact Allianz Global Investors UK Limited, either electronically or by mail at the given address. Please read these documents, which are solely binding, carefully before investing. The Management Company may decide to terminate the arrangements made for the marketing of its collective investment undertakings in accordance with applicable de-notification regulation. This is a marketing communication issued by Allianz Global Investors UK Limited, 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk.  Allianz Global Investors UK Limited company number 11516839 is authorised and regulated by the Financial Conduct Authority.  Details about the extent of our regulation are available from us on request and on the Financial Conduct Authority's website (www.fca.org.uk). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors UK Limited.

 

 

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