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2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
2012 01-20 allianz rcm european equity dividend-agi_citywire
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2012 01-20 allianz rcm european equity dividend-agi_citywire

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  • 1. A dividend strategy in alow interest rates marketenvironmentAllianz RCM European EquityDividendCitywire, February 2012Jörg de Vries-Hippen
  • 2. Content1. Welcome to Allianz Global Investors2. The Case for European Dividend Investing3. Allianz RCM European Equity Dividend: Investment Process4. Allianz RCM European Equity Dividend: Update5. Appendix 2
  • 3. 1 Welcome to Allianz Global Investors 3
  • 4. Allianz Global Investors – A leading global asset managerwell positioned to protect and enhance our clients wealth… … through Our Global Presence and Reach … … and Our Strong Capabilities … USA Europe Asia-Pacific  A Global Investment Platform delivering Investment professionals: 161 Investment professionals: 393 Investment professionals: 138 Sustainable Alpha through Active Relationship managers: 144 Relationship managers: 390 Relationship managers: 188 Management via  shared global research and  broad investment expertise across diverse investment styles covering all major asset classes  Proven Solutions capabilities addressing Complex Client Needs including world-class Risk Management, Fiduciary Management and Pension-Life / Asset Solutions  Local Presence providing In-Depth Understanding of our Clients‘ needs Strong Presence in the US, Europe and Asia making us complemented by Thought Leadership the Trusted Partner for our clients across All Asset Classes in investment and retirement solutions, e.g. and Regions1. Behavioural Finance, SRI1 As of 30.06.2011. … with a foundation of the supportive Ownership of Allianz SE – one of the world‘s leading insurance companies 4
  • 5. A Global equity platform at Allianz Global Investors Truly global platform allows us to compare and contrast/identify Global and invest in the best stocks in Europe for your portfolio Research Cornerstone of our investment process Excellent and unique information edge complementing Grassroots® fundamental research A global equity platform enabling to invest in the best European stocks 5
  • 6. Global research headcount Sustainabilit Financial Health Telecom/ Spec. Sits./ Grassroots Consumer Industrials Technology y Research ® Research Total Services Care Media Themes (SR) Europe 4 4 3 9 2 3 3 6 3 37 US 4 2 4 3 5 1 1 1 3 24 Asia Pacific 1 3 1 4 3 1 0 0 1 14 Total 9 9 8 16 10 5 4 7 7 75 An average of 14 years of industry experience Innovative and proprietary investment tools Analysts manage sector and thematic mandates Each analyst conducts circa 100 meetings per year with corporate management Research identifies the key drivers of each stock, which frames and focuses the analytical process Dedicated sustainability research analysts Complemented by Grassroots® Research The cornerstone of the investment process – generating information advantageSource: AGI KAG, as at 30 September 2011. 6
  • 7. Grassroots® Research Mission: Client Provide investment professionals with timely business insights that help identify inflection points and increase investment conviction Portfolio Managers Methodology:  Customised to answer specific questions about key stock Sector Analysts drivers identified by portfolio managers and analysts Resources: Grassroots® Analysts  In-house staff of 11  72 reporters  302 Field Force investigators Grassroots® Reporters Customers Experts  50,000+ industry contacts Field Force Investigators Suppliers Regulators Results: Managers Distributors  30+ company/industry studies per month Physicians Competitors Consumers www.grassrootsresearch.com Investment decisions – reality checkedSource: RCM, as at 30.09.2011.Grassroots® Research is a division of RCM. Research data used to generate Grassroots® Research recommendations is received from reporters and field force investigators who work as independent contractors forbroker-dealers. Those broker-dealers supply research to RCM and certain of its affiliates that is paid for by commissions generated by orders executed on behalf of RCM’s clients. RCM is a global asset managementcompany providing active investment strategies. RCM is a company of Allianz Global Investors. RCM is a global investment advisory organisation, consisting of separate affiliated firms, which operates under the brandname RCM 7
  • 8. Contents 02 The Case for European Equity Dividend Investing 8
  • 9. Allianz RCM European Equity DividendKey Messages High quality companies with proven dividend records, strong and stable cash flows Rigorous and transparent investment process Strong management team with deep experience 9 9
  • 10. Allianz RCM European Equity Dividend: Profile  High and sustainable dividend income  Long-term capital gains  Reduced volatility due to stock selection + The fund‘s dividend-yield amounts to at least 125 % of the average MSCI Europe-yield (at present >5.5%) + Equity exposure can be hedged1: 20% of the assets under management may be held in cash in order to protect the capital + At least 75% of AUM are placed in European quality stocks with convincing dividend history and high and stable cash-flows (eligibility for the French Plan d’Epargne en Actions (PEA). + Experienced and specialised RCM fund manager team: Neil Dwane, Jörg de Vries-Hippen (CIOs) und Solveig StröerSuccess of the strategy and achievement of the goals aimed at cannot be guaranteed. As well, losses cannot be excluded. 1 Sole basis of the sale isthe prospectus valid at present as of April 2011. 10 10
  • 11. Dividends as Success Factors (I) Dividends are more stable than corporate earnings1 2 0 /1 / 1 2 2 0 0 0 2 0 0 0 1 8 0 0 1 8 0 0 1 6 0 0 1 6 0 0 1 4 0 0 1 4 0 0 1 2 0 0 1 2 0 0 1 0 0 0 1 0 0 0 8 0 0 8 0 0 6 0 0 6 0 0 4 0 0 4 0 0 2 0 0 2 0 0 0 0 7 0 7 2 7 4 7 6 7 8 8 0 8 2 8 4 8 6 8 8 9 0 9 2 9 4 9 6 9 8 0 0 0 2 0 4 0 6 0 8 1 0 M S C I E u r o p e : D e v e lo p m e n t o f d iv id e n d s ( in d e x e d ) M S C I E u r o p e : D e v e l o p m e n t o f c o r p o r a te p r o f i t s ( i n d e x e d ) S o u r c e : T h o m s o n R e u te r s D a ta s tr e a mSource: Datastream, Capital Market Analysis Allianz Global Investors; data as per 20/01/2012 Dividend stocks are well-established companies & perceived to be healthy, hence tend to be less volatile than the overall market1This presentation does not permit to draw conclusions about the future performance of a fund investment. 11
  • 12. Dividends as Success Factors (II)Performance contribution of dividends, indexed 100 (1970) 2 0 /1 / 1 2 7 0 0 0 7 0 0 0 6 0 0 0 6 0 0 0 5 0 0 0 5 0 0 0 4 0 0 0 4 0 0 0 3 0 0 0 3 0 0 0 2 0 0 0 2 0 0 0 1 0 0 0 1 0 0 0 0 0 7 0 7 2 7 4 7 6 7 8 8 0 8 2 8 4 8 6 8 8 9 0 9 2 9 4 9 6 9 8 0 0 0 2 0 4 0 6 0 8 1 0 M S C I E u r o p e - T o t a l r e tu r n i n d e x M S C I E u r o p e - P r ic e in d e x S o u r c e : T h o m s o n R e u t e r s D a ta s tr e a mThis presentation does not permit to draw conclusions about the future performance of a fund investment. Source: Datastream; data as per January 2012 Dividends account for a major part of performance 12 12
  • 13. Dividends as a Success Factor (III) Performance contribution of dividends and share prices 1970 till end of August 2011 in global comparison (annualised). 12.0% 10.0% 8.0% 3.5% 4.1% 6.0% 2.3% 4.0% 6.2% 5.4% 2.0% 3.4% 0.0% MSCI Europe MSCI North America MSCI Pacific Performance contribution of share prices (p.a.) Performance contribution of dividends (p.a.)This presentation does not permit to draw conclusions about the future performance of a fund investment. Source: Datastream; data as per 20/01/2012 Shareholder-friendly dividend policies particularly prevalent in Europe. 13
  • 14. Structural Advantage for Dividend Stocks over Bonds –Prospects of Rising Interest Rates & Inflation US 10yr Treasury Yields Purchasing Power at 4% Inflation p.a. 100 50 0 today 5 10 15 20 With bond principals and coupons at risk, stocks with sustainable/growing dividends offer an inflation- protected investment vehicle. 14 14
  • 15. Contents 03 Allianz RCM European Equity Dividend: Investment Process 15 15
  • 16. Investment PhilosophyWe strive to generate sustainable returns and capital appreciation by investing in European dividend stocks where wesee the ability and willingness to pay consistent, high dividends.We focus on a company’s dividend paying capabilities solid balance sheets high free cash flow generation strength and future viability of business model.A company‘s willingness to continually pay high dividends is also crucial: dividend policy, dividend history andmanagement commitment to dividends are key points.The result is a concentrated portfolio of high quality defensive stocks with high and sustainable dividends, lowervolatility than the market and the ability to outperform in the long run. Generating lower-risk, high and sustainable returns 16
  • 17. Dividend Yields Based on Past and Future Outlook,Using Internal Research What is the company What is the company WILLING to pay out? ABLE to pay out?  Pay out policy Pay out potential  Status quo: balance sheet  Dividend history quality Free Cash Flow  Outlook: sustainability of Generation business model Potential dividend Forward looking assessment of dividend yield: own research, own estimates. 17
  • 18. Focus on safety of dividends In the current environment, stock selection through active management is key RCM’s Fundamental Research team analyses dividend sustainability and dividend growth prospects Pre-screening RCM quality check Dividend safety looking at (but not exclusively):  Earnings and cash flow European companies coverage with dividend yield  Credit rating above average market  Distribution capacity High and stable income yield (MSCI Europe)  Maximum cash flow  Impairment risk  Dividend growth Piotroski-Score as additional control Dividend safety and dividend growth are more important than ever. 18
  • 19. Unique Portfolio Construction Fundamental equity Integration Expected dividend yield analysis Analyst vote Analyst dividend estimate  Active portfolio management: a dynamic approach to buys and sells in order to realise the optimal income and overall returns  Buy threshold: dividend yield >125% of average dividend yield of index*  Sell candidate: dividend yield < average dividend yield of index  Broad diversification across countries and sectors  A smaller part of the portfolio (<20%) can be invested in companies with a yield below the buy threshold but with extraordinary dividend stability Integration of dividend estimate and company outlook.*Buy threshold based on RCM’s estimates on specific stocks which are subject to the latter capabilities to assess the companies correctly. 19 19
  • 20. Portfolio Construction Targeted minimum yield, at 125% of average index yield with focus on dividend safety. Sell discipline, in case dividend is revoked or if dividend falls below market yield. Opportunistically, a Call Overwriting strategy may be implemented to enhance returns. Tactically, a cash position of up to 20 % can be implemented in order to buffer market fluctuations. Ability to hedge equity exposure to handle capital market risk (min. equity exposure at 75%). Flexible bottom-up approach. 20 20 20
  • 21. Estimated Dividend Yield (in %) 0 2 4 6 8 10 12 14 FRANCE TELECOM DRILLISCH KPN AVIVA MARR TPSA VIVENDI BOLSAS Y MERCADO ZURICH FINL SER DEUTSCHE TELEKOM VODAFONE GROUP OESTERREICH.POST SNAM RETE GAS Estimated Dividend Yields BALOISE BCV MUENCH. RUECK UPM-KYMMENE ATLANTIA ALLIANZ NATIONAL GRID SSE Every stock in the portfolio is a dividend stock ASTRAZENECA TOTAL TELENOR CENTRICA VINCI KEMIRA GLAXOSMITHKLINE ROYAL DUTCH SHELL ROCHE HENNES & MAURITZ BRIT AMER TOBACCO NOVARTIS DSM FIELMANN Source: Allianz Global Investors; data as of 31/12/2011. The allocation shown is merely an example and is not an indication of the future allocation of the fund. Market Yield 35 holdings21
  • 22. Company ExamplesMunich Re Munich Re is well positioned in the currently hardening reinsurance Cash dividend Munich Re (in Euro) market due to its strong balance sheet and its disciplined underwriting The group has a defensive profile within the sector. Its exposure to credit risks is limited, equity exposure was significantly reduced The life re-insurance part appears strongly undervalued versus primary life peers Solvency II should benefit Munich Re as it improves future business prospects. The risk expertise of Munich Re could improve client relationships and increase the chances of differential pricingDividend Powerful combination of high dividend yield, strict capital management and strong balance sheet Very stable and growing dividend: one of the rare cases in the Financials Source: Bloomberg sector to maintain absolute dividend per share even in the crisis Every stock in the portfolio is a dividend stock 22 22
  • 23. Company ExamplesOesterreichische Post The mail business in Austria remains the cash cow. While the monopoly in Austria has legally been abolished, the regulatory framework as such guarantees a quasi-monopoly status. Whilst letter mail is a structurally declining business, cost-cutting and innovative pricing schemes thus far look promising to keep generating the required returns. The growth portion of the company is the parcel and logistics division, which mainly benefits from a move toward online shopping.Dividend The management team is highly focused on (and incentivized according to) cash flow generation The company is aware of the dividend investors focus on gradually growing dividends backed by good generation of free cash flow, rather than extraordinary payouts or share buybacks. Source: Österreichische Post AG Looking to gradually increase dividend Every stock in the portfolio is a dividend stock 23 23
  • 24. Contents 04 Allianz RCM European Equity Dividend - Update 24 24
  • 25. Allianz RCM European Equity Dividend - Performance since inception to 31.12.201120.00 Performance History 16.99 Allianz RCM European Equity Dividend AT EUR 15.9515.00 No Benchmark (EUR)10.00 8.93 Allianz RCM Performance up to MSCI Europe European Active Return 31.12.2011 TR (Net)* 5.91 6.04 Equity 5.00 1 Month 1.85 2.10 -0.25 1.85 2.10 1.05 3 Months 5.91 8.93 -3.02 0.00 1 Year -1.94 -8.08 6.14 -1.94 2 Years ann. 6.04 1.05 4.99 -5.00 Since 31.03.2009 ann. 16.99 15.95 1.04 -8.08 Closing Prices Gross of Fees, IDS-10.00 1 Month 3 Months 1 Year 2 Years ann. Since 31.03.2009 ann. *This strategy is not managed against any benchmark. The MSCI Europe is show n in order to demonstrate the market development Allianz RCM European Equity Dividend AT EUR MSCI Europe TR (Net)* Source: Wilshire, IDS, 31.12.2011 25 25
  • 26. Allianz RCM European Equity DividendPerformance attribution vs MSCI Europe – year to date to 31.12.2011Active GICS Subindustry Attribution Active MSCI Country Attribution Active Active Port Weight Total Return Contribution Port Weight Total Return ContributionCash 10.3% 3.14% 0.67% Cash 10.3% 3.14% 0.68%Equity 89.7% 0.00% 6.73% Equity 89.7% 0.00% 6.73%Industry Strategy (Allocation) 1.80% Country Strategy (Allocation) -0.24%Stock Selection (Selection) 4.93% Stock Selection (Selection) 6.86% Currency Impact 0.10%Intra Period Effect 0.00% Intra Period Effect 0.00%Sector Strategy Country Strategy Industry Active Industry Excess Industry Country Active Country Excess Country Weight Return Strategy Weight Return StrategyTop 3 Industry that HELPED Top 3 Country that HELPEDMaterials -7.36% -12.95% 1.12% Poland 1.65% 0.00% 0.48%Telecom Services 8.58% 8.09% 0.97% France -5.48% -5.82% 0.26%Financials -1.16% -16.02% 0.47% Spain 2.99% -0.74% 0.25%Bottom 3 Industry that HURT Bottom 3 Country that HURTConsumer Staples -6.77% 15.95% -1.22% Austria 3.30% -26.43% -1.09%Energy -2.94% 14.58% -0.31% Switzerland -3.49% 4.50% -0.33% United Kingdom -5.18% 8.51% -0.32%Sector Stock Selection Country Stock Selection Average Industry Industry Active Stock Average Country Country Active Stock Weight Return Selection Weight Return SelectionTop 3 Industry that HELPED Top 3 Country that HELPEDFinancials 19.21% 16.96% 3.81% United Kingdom 28.67% 9.79% 2.50%Utilities 7.34% 27.32% 1.72% Austria 3.76% 35.08% 1.74%Health Care 10.42% 6.57% 0.66% Spain 8.31% 14.69% 1.03%Bottom 3 Industry that HURT Bottom 3 Country that HURTTelecom Services 15.35% -5.38% -1.02% Sweden 2.14% -7.00% -0.30%Consumer Discretionary 9.21% -2.28% -0.74% Belgium 0.43% -0.14% -0.18%Information Technology 0.43% 2.19% -0.24% Netherlands 4.34% 2.52% -0.11%*Note: Attribution based on position-based performance attribution (daily buy-and-hold, closing price Bewertung, no transaction costs). Performance figures shown on this report areapproximates. The official performance for funds subject to substantial cash flows or which trade in volatile daily market conditions will vary from these figures. This fund is not managedagainst a benchmark. The MSCI Europe is shown for informal reasons. 26Source: Wilshire, IDS, 31.12.2011. 26
  • 27. Allianz RCM European Equity DividendPerformance attribution vs MSCI Europe – year to date to 31.12.2011 Best Average Weight Performance Worst Average Weight Performance Active Contributors (% of Total) Total Active Active Contributors (% of Total) Total ActiveName Port Bmk Diff Return Contribution Name Port Bmk Diff Return ContributionBritish American Tobacc 4.1% 1.3% 2.9% 34.0% 109 bp Hays Plc 2.0% 0.0% 2.0% -47.4% -105 bpBolsas Y Mercados 2.3% 0.0% 2.3% 27.9% 77 bp Kappahl Ab 0.5% 0.0% 0.5% -54.1% -70 bpFielmann Ag 2.1% 0.0% 2.1% 18.7% 74 bp Mediaset 0.7% 0.0% 0.6% -31.1% -54 bpGlaxosmithkline 3.2% 1.6% 1.7% 29.1% 69 bp Marine Harvest Asa 1.4% 0.0% 1.4% -35.6% -53 bpRoche Holdings Ag 3.1% 1.6% 1.5% 25.6% 59 bp Baloise Holding Ag 1.7% 0.1% 1.6% -23.5% -42 bpEnel 1.9% 0.5% 1.4% 17.0% 55 bp Allianz Se 2.3% 0.8% 1.5% -25.5% -41 bpAstrazeneca 3.7% 1.0% 2.8% 11.2% 53 bp Unilever Plc 0.0% 1.4% -1.4% 18.3% -34 bpMapfre Sa 2.5% 0.0% 2.4% 3.6% 52 bp Nestle Sa 0.0% 2.9% -2.9% 5.2% -34 bpOesterreichische Post A 3.8% 0.0% 3.8% 1.3% 45 bp Sanofi 0.0% 1.1% -1.1% 24.1% -32 bpTelenor Asa 1.1% 0.2% 0.9% 10.6% 41 bp Bijou Brigitte 1.3% 0.0% 1.3% -27.6% -32 bpSubtotal 27.9% 6.1% 21.7% — 634 bp Subtotal 9.9% 6.3% 3.5% — -498 bpPositive Active Contributors 288 1845 bp Negative Active Contributors 196 -1172 bpOverw eighted 31 940 bp Overw eighted 22 -569 bpUnderw eighted 257 905 bp Underw eighted 174 -603 bp Biggest Average Weight Performance Biggest Average Weight Performance Overweights (% of Total) Total Active Underweights (% of Total) Total ActiveName Port Bmk Diff Return Contribution Name Port Bmk Diff Return ContributionOesterreichische Post A 3.8% — 3.8% 1.3% 45 bp Nestle Sa — 2.9% -2.9% 5.2% -34 bpKoninklijke Kpn Nv 3.4% .3% 3.1% -9.0% 4 bp Hsbc Holdings Plc .4% 2.4% -2.0% 2.1% 34 bpBritish American Tobacc 4.1% 1.3% 2.9% 34.0% 109 bp Bp — 2.0% -2.0% 5.8% -27 bpAstrazeneca 3.7% 1.0% 2.8% 11.2% 53 bp Novartis Ag .3% 1.9% -1.6% 5.0% -16 bpMapfre Sa 2.5% .0% 2.4% 3.6% 52 bp Siemens Ag — 1.4% -1.4% -18.0% 16 bpFrance Telecom 2.9% .5% 2.4% -13.8% -11 bp Unilever Plc — 1.4% -1.4% 18.3% -34 bpBanque Cantonale Vaudoi 2.4% — 2.4% 1.8% 23 bp Rio Tinto — 1.3% -1.3% -27.0% 29 bpBolsas Y Mercados 2.3% — 2.3% 27.9% 77 bp Sanofi — 1.1% -1.1% 24.1% -32 bpFielmann Ag 2.1% — 2.1% 18.7% 74 bp Bhp Billiton Plc — 1.1% -1.1% -22.1% 18 bpAviva 2.4% .3% 2.1% -15.2% -5 bp Bg Group — 1.1% -1.1% 10.1% -18 bpSubtotal 29.6% 3.4% 26.3% — 421 bp Subtotal .7% 16.6% -15.9% — -65 bp*Note: Attribution based on position-based performance attribution (daily buy-and-hold, closing price Bewertung, no transaction costs). Performance figures shown on this report areapproximates. The official performance for funds subject to substantial cash flows or which trade in volatile daily market conditions will vary from these figures. This fund is not managedagainst a benchmark. The MSCI Europe is shown for informal reasons. 27Source: Wilshire, IDS, 31.12.2011. 27
  • 28. Allianz RCM European Equity Dividend Country allocation vs MSCI Europe (as at 31.12.2011) -6 -4 -2 0 2 4 6 Finland 5.34Country of Risk %PF Weight %BM Weight Delta Austria 4.26Finland 6.64 1.30 5.34 Netherlands 3.03Austria 4.64 0.37 4.26 Poland 2.29Netherlands 6.89 3.86 3.03Poland 2.29 0.00 2.29 Italy 1.37Italy 4.89 3.52 1.37 Norway 1.34Norway 2.78 1.44 1.34 Germany 1.33Germany 13.48 12.15 1.33 Kazakhstan -0.09Kazakhstan 0.00 0.09 -0.09Ireland 0.00 0.45 -0.45 Ireland -0.45Sweden 3.51 4.78 -1.27 Sweden -1.27Belgium 0.00 1.47 -1.47 Belgium -1.47Denmark 0.00 1.63 -1.63Switzerland 11.11 13.37 -2.26 Denmark -1.63France 11.26 13.93 -2.67 Switzerland -2.26Spain 1.96 5.08 -3.12 France -2.67United Kingdom 30.56 35.76 -5.21 Spain -3.12 United Kingdom -5.21 Source: IDS, 31.12.2011. The fund has no benchmark. The MSCI Europe is shown for informal reasons. 28 28
  • 29. Allianz RCM European Equity DividendSector allocation vs MSCI Europe (as at 31.12.2011)GICS Sector %PF Weight %BM Weight Delta -10 -5 0 5 10 15Telecom Services 20.90 7.08 13.82 Telecom Services 13.82Utilities 7.80 4.94 2.86 Utilities 2.86Health Care 14.77 12.18 2.58 Health Care 2.58Materials 10.02 9.55 0.48Industrials 10.08 10.51 -0.43 Materials 0.48Consumer Discretionary 5.94 8.01 -2.07 Industrials -0.43Financials 15.68 17.75 -2.08 Consumer Discretionary -2.07Information Technology 0.00 2.88 -2.88Energy 8.64 12.72 -4.08 Financials -2.08Consumer Staples 6.17 14.38 -8.21 Information Technology -2.88 Energy -4.08Market Cap Split %PF Weight %BM Weight Consumer Staples -8.213bn <= MarketCap 85.75 96.921bn <= MarketCap < 3bn 12.24 3.06MarketCap < 1bn 2.01 0.02 Source: IDS, 31.12.2011. The fund has no benchmark. The MSCI Europe is shown for informal reasons. 29 29
  • 30. Allianz RCM European Equity DividendTop holdings vs MSCI Europe (as at 31.12.2011)Top 10 Overweights %PF Weight %BM Weight %Overweight Top 10 Holdings %PF Weight %BM Weight %OverweightOESTERREICHISCHE POST A 4.64 0.00 4.64 ROYAL DUTCH SHELL 5.39 3.85 1.55ALLIANZ SE 4.93 0.71 4.22 BRITISH AMERICAN TOBACC 5.02 1.53 3.49KEMIRA OY 3.73 0.00 3.73 ALLIANZ SE 4.93 0.71 4.22ASTRAZENECA 4.59 1.01 3.57 OESTERREICHISCHE POST A 4.64 0.00 4.64BRITISH AMERICAN TOBACC 5.02 1.53 3.49 ASTRAZENECA 4.59 1.01 3.57KONINKLIJKE DSM NV 3.39 0.12 3.27 GLAXOSMITHKLINE 4.43 1.89 2.54KONINKLIJKE KPN NV 3.51 0.29 3.22 KEMIRA OY 3.73 0.00 3.73VINCI 3.45 0.32 3.13 DEUTSCHE TELEKOM AG 3.67 0.53 3.14DEUTSCHE TELEKOM AG 3.67 0.53 3.14 HENNES & MAURITZ 3.51 0.54 2.97HENNES & MAURITZ 3.51 0.54 2.97 KONINKLIJKE KPN NV 3.51 0.29 3.22 Source: IDS, 31.12.2011. The fund has no benchmark. The MSCI Europe is shown for informal reasons. 30 30
  • 31. Contents 05 Appendix 31 31
  • 32. Portfolio Manager Biographies Neil Dwane Chief Investment Officer, Solveig Ströer European Equities Europe RCM Jörg de Vries-Hippen Co-CIO European Solveig Ströer joined the High Alpha Team in Neil is based in Frankfurt and is responsible Equities 2009, and works primarily on the European for all portfolio management, research and Jörg is an Investment Style Leader for the Equity Dividend/Income strategies. Her trading activities in Frankfurt and London. Core European strategy and is portfolio country focus is Italy. Previously, she worked Neil is a member of the Global RCM manager of European Equities Core with the European Mid & Small Caps Team, Executive Committee and is Chairperson of products. He covers the Swiss equity market after having completed the RCM Global the European Equity Management Group. and has run the Swiss-Equity funds since Graduate Program in early 2008 Solveig Neil joined RCM in 2001 as Head of UK and 1995. Jörg joined the Company in 1992. obtained an MBA degree from the WHU Otto European Equity Management from JP From 2003 he took over the Team Head of Beisheim School of Management in Morgan Investment Management where he the European Large Caps in Frankfurt. Since Vallendar, specializing in Finance and had been a UK and European specialist 2007 he has been the Co-CIO of European Leadership. Her work experience includes portfolio manager since 1996. He began his Equities, the joint European Equities Fund positions at The Boston Consulting Group investment career in 1988 with Kleinwort Management group in London and Frankfurt. and MLP AG. Solveig also holds an MScEcon Benson Investment Management as an He graduated with a masters degree in degree in International Politics from the analyst. Neil holds a BA in Classics from business administration from the University of University of Wales in Aberystwyth, as well as Durham University and is a member of the Mannheim in 1993. Jörg also holds the a Bachelor of Arts in Public Relations from Institute of Chartered Accountants. DVFA/CIIA designation. the University of Southern California in Los Angeles.Source: RCM; data as per 31/12/2010 32 32
  • 33. Style Tilt™ -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Book To Price (I) -0.7 Dividend Yield (I) 4.0Data as at 31/12/2011 Earnings Yield (I) 0.4 Portfolio Style Skyline™ Style skyline Cflow Yield (I) 0.7 FCF Yield (I) 0.7 Sales to Price (I) 0.1 Allianz RCM Europe Equity Dividend, vs. MSCI Europe EBITDA to Price 0.2 Rtn on Equity 1.3 Earnings Growth -0.7 Style Factors Income/Sales 0.5 Sales Growth -0.5 IBES 12Mth Gr -0.5 IBES Sales 12m Gr -1.9 Sustainable Growth -0.7 True to label – clear dividend tilt versus broad market Log Market Cap -1.3 Momentum ST 0.1 Momentum MT 1.1 Earnings Gr Stability 0.933
  • 34. Allianz RCM European Equity Dividend The Piotroski scoring system seeks to identify stocks with high financial strength It applies one point for each of the following nine indicators (the higher the overall sum, the better): Improving productivity 1 Positive net income 6 (asset turnover > prior period) Growing profitability 2 Positive operating cash flow 7 (return on assets > prior period) Earnings quality Issuing stock 3 8 (operating cash flow > net income) (share outstanding </= prior period) Decreasing debt Competitive position 4 9 (total debt/assets < prior period) (gross margin > prior period) 5 Increasing working capital The Piotroski score was developed by Joseph Piotroski, an Associate Professor of Accounting at Stanford University’s Graduate School of Business (previously at the University of Chicago’s Graduate School of Business). He reasoned that because value stocks are by definition often those of troubled companies, many will not possess the financial resources to recover. The scoring can help to eliminate the financially weakest stocksSource: Morgan Stanley, Stanford Graduate School of Business 34
  • 35. Allianz RCM European Equity DividendOverviewShare class A - EUR AT - EUR CT - EUR IT - EURBenchmark -Umbrella Allianz Global Investors FundManagement company Allianz Global Investors Luxembourg S.A.Sub-manager Allianz Global Investors KAG, FrankfurtCustodian bank State Street Bank Luxembourg S.A.Risk Class 4 : risk awareFund manager Jörg de Vries-Hippen & Neil DwaneFinancial year end 30/9/Net assets 236.36 mn. EURISIN / German security no. LU0414045582 / A0R F5F LU0414045822 / A0R F5H LU0414046390 / A0R F5K LU0414047281 / A0R F5UBloomberg ARCMEAE LX ARCMEAT LX ARCMECT LX ARCMEIT LXRegistered for sale in AT, FR, DE, GR, HK, LU, MC, NL, PL, AT, FR, DE, GR, HK, HU, IT, LU, MC, NL, AT, DE, GR, HK, HU, IT, LU, MC, NL, PL, AT, DE, GR, HK, HU, LU, MC, NL, PL, SG, CH PL, SG, ES, CH PT, SG, ES, CH SG, ES, CHFund currency EUR EUR EUR EURDistribution distributing accumulation accumulation accumulationMinimum investment - - - 1,000,000 EUR(prospectus)Launch date 10/01/2011 10/03/2009 10/03/2009 10/03/2009Initial issue price 105.00 EUR 105.00 EUR 103.00 EUR 1.000.00 EURShare class volume 105.26 mn.EUR 33.32 mn.EUR 2.19 mn.EUR 95.59 mn.EURFront-end load (%) 5.00 5.00 currently 3.00 (max. 5.00) currently 0.00 (max. 2.00)Management fee (% p.a.) currently 1.50 (max. 2.50) currently 1.50 (max. 2.50) currently 1.50 (max. 2.50) currently 0.75 (max. 1.25)Distribution fee (% p.a.) 0.75 1 1 1TER (%) 1.83 2.59 0.961TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year. 2 TER of abridged business year.Source: Allianz Global Investors; data as per 30/11/2011 35 35
  • 36. Allianz RCM European Equity Dividend Opportunities Risks  High return potential of stocks in the long run  The volatility of fund unit prices may be strongly increased.  Investments specifically in the European stock market  High volatility of stocks, losses possible  Dividend stocks outperform in some phases  Underperformance of the European stock market possible  Broad diversification across numerous securities  Dividend stocks may underperform at times  Possible extra returns through single security analysis and active management  Limited participation in the yield potential of single securities  Success of single security analysis and active management not guaranteedSource: Allianz Global Investors; data as per 30/12/2011 36
  • 37. DisclaimerAllianz RCM European Equity Dividend is a sub-fund of Allianz Global Investors Fund, which is an open-ended investment company with variable share capital (also known as a SICAV) organised under thelaws of Luxembourg. Allianz Global Investors Fund qualifies as an undertaking for collective investments in transferable securities (‘UCITS’) in accordance with the provisions of the European Union (‘EU’)Directive EEC/85/611 (as amended subsequently).Allianz RCM European Equity Dividend may not be registered or authorised for public distribution in the country of residence of investors. Accordingly, it isthe responsibility of investors to be aware of the applicable laws and regulations of their country of residence in respect of financial promotion. Thus, the information contained in this document should notbe construed as constitutive of an offer or solicitation (i) by anyone to buy shares in Allianz RCM European Equity Dividend in any jurisdiction in which such offer or solicitation would be unlawful or in whichthe person making such offer or solicitation is not qualified to do so or (ii) to anyone to whom it is unlawful to make such offer or solicitation in the jurisdiction in which this person resides.Specifically, AllianzRCM European Equity Dividend is not available for distribution to or investments by investors in the United States of America (‘USA’). Its shares are not registered under the US Securities Act of 1933, asamended, and, except in a transaction which does not violate the Securities Act or any other applicable securities laws (including without limitation any applicable law of any of the States of the USA), suchshares may not be directly or indirectly offered or sold in the USA or any of its territories or possessions or areas subject to its jurisdiction or to or for the benefit of an investor in the USA. Subscriptions forshares of Allianz RCM European Equity Dividend can only be made on the basis of the latest prospectus and simplified prospectus of Allianz Global Investors Fund, complemented by any local supplementto these prospectuses, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from the managementcompany, Allianz Global Investors Luxembourg S.A., as well as from Allianz Global Investors Europe GmbH. As with all investment products, a fund’s past performance is not necessarily a guide to futureperformance and the value of the shares of Allianz RCM European Equity Dividend and any income from them may fall as well as rise. On redemption of shares, investors may receive back an amount lessthan the original amount of their investments. The assets of Allianz RCM European Equity Dividend may be denominated in a variety of currencies and therefore movements in the value of currencies mayalso affect the value of investors’ holdings. Furthermore, the value of the shares of Allianz RCM European Equity Dividend may be adversely affected by fluctuations in exchange rates between theinvestors’ reference currencies and its base currency.Further information on the risks associated with investments in Allianz RCM European Equity Dividend -those briefly described above as well as others,if applicable- can be found in the prospectuses of Allianz Global Investors Fund.This document is deemed to be marketing material according to Art. 19 section 2 sentence 2 of EU Directive 2004/39/EG(“MiFiD”). This document has been issued and approved by Allianz Global Investors Europe GmbH, a subsidiary of Allianz Global Investors AG (part of the Allianz Group). Allianz Global Investors EuropeGmbH is a limited liability company incorporated under the laws of the Federal Republic of Germany with its registered office at Mainzer Landstrasse 11-13, D-60329 Frankfurt/Main. Allianz Global InvestorsEurope GmbH is licensed as a provider of financial services (Finanzdienstleistungsinstitut); for the conduct of its business activities, Allianz Global Investors Europe GmbH is subject to the supervision ofthe German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). This document is meant to provide a broad overview for discussion and/or information purposes. Furthermore, this document was notprepared with the intention of providing legal or tax advice. The views and opinions expressed in this document, which are subject to change, are those of Allianz Global Investors Europe GmbH and itsaffiliated companies at the time of publication. The duplication, publication, or transmission of the contents of this document to unauthorised persons, irrespective of the form, is not permitted. While some ofthe data provided herein is derived from various published and unpublished sources, and is assumed to be correct and reliable, it has not been independently verified. Therefore, Allianz Global InvestorsEurope GmbH does not guarantee the accuracy or completeness of such data/information and will not accept any liability for any direct or consequential losses arising from its use. The investmentopportunities described herein are not guaranteed by Allianz Global Investors Europe GmbH or affiliated companies within the Allianz Group.Internet: www.allianzglobalinvestors.eu, E-Mail: eusalessupport@allianzgi.comSource: Allianz Global Investors; data as per 30/11/2011 37 37
  • 38. Thank you! 38

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