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Allianz global invetors citywire 2

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  • 1. Understand. Act.Allianz GermanEquityFor Fund Distributors and ProfessionalInvestors onlyMatthias BornMay 2013
  • 2. © Copyright Allianz Global Investors Europe GmbH 2013Contents1. Allianz German Equity – Investment Process2. Stock Examples3. CONCENTRA – Performance and Profile4. Appendix2
  • 3. © Copyright Allianz Global Investors Europe GmbH 20131Allianz German Equity – Investment Process3
  • 4. © Copyright Allianz Global Investors Europe GmbH 2013405060708090100110120130140DAX (Auction) CONCENTRA (closing prices)10 Years of Successful Growth Oriented Investingin the German Equity Market4Germany strategy - 10 years of outperformance managed by Matthias BornSource: Allianz Global Investors as at April 2013. **Allianz Wachstum Deutschland benchmark: S&P Germany LargeMidCap Growth. CONCENTRA benchmark: DAX 30 (Auction).Past performance is not a reliable indicator of future results.Wachstum Deutschland CONCENTRA
  • 5. © Copyright Allianz Global Investors Europe GmbH 2013CONCENTRAPerformance Performance rolling three years starting each month-end since 31.12.2007. First value period ending at31.12.2010. We assume a holding period of three years as a likelymid-term period, an investor would plan for this product. CONCENTRA is a fund with a broadly identical investmentobjective as Allianz German Equity and whose assets arealso managed by Allianz Global Investors Europe GmbH. CONCENTRA is a an open-ended investment trustorganized under the laws of Germany and was launched on26.03.1956. This does not imply that Allianz German Equitywill enjoy similar performance in the future.5Matthias Born has been delivering outperformance since he took over the fund managementresponsibility-15-10-505101520253035-15 -10 -5 0 5 10 15 20 25 30CONCENTRADAX (Auction)Rolling 3-year performance since 31.12.2007 (as at 31.03.2013)Source: Pico, IDS. 31.03.2013. Matthias Born has been responsible for Concentra since 31.12.2007. Data gross of fees; calculation at the net asset value (BVI method) based on the assumption thatdistributions are reinvested and excludes initial charges. Individual costs such as fees, commissions and other charges have not been taken into consideration and would have a negative impact on theperformance if they were included. Past performance is no reliable indicator of future performance.
  • 6. © Copyright Allianz Global Investors Europe GmbH 2013Allianz German Equity - Investment PhilosophyGrowth throughout the whole market cycle6Companies which grow their earnings and cash flows above average are able to create shareholdervalueCP = Market Capitalization Pure bottom-up stock-picking approach German All Cap Universe (max. 20% stocks of small andmid cap companies) Always fully invested Concentrated portfolio (“high conviction”) Longer-term investment horizon  low turnover Benchmark agnostic Additionally: derivatives overlayWe believe that share prices aremedium to long-term driven by growthof earnings and cash flows,and that markets are often inefficientin valuing growth businesses.Structural growth investing aims togenerate consistent outperformancebeyond business cycles.
  • 7. © Copyright Allianz Global Investors Europe GmbH 2013Allianz German EquityA clear investment philosophy Growth It is often supported by a secular growth driver.This can be based on technological and managerialleadership or on a structural trend in a specific market. Themomentum of earnings growth is crucial. We try to identifytheses growth prospects at an early state. Quality can be derived from excellent market positioningand outstanding business models. It is a functionindependent from style. The quality of a company ismeasured by the level of the ROE and the stability ofearnings growth over time. We invest in such quality stocksand try to pick them when market ignores these qualityaspects. Valuation is dependent on the profitability and growth of acompany. Additionally, the ability of a company to generatestable returns is important, so the sector, but also thebusiness model itself is crucial for valuation. We look atvaluation multiples vs. market and peers in the context oftheir history and their achievable growth rates and returns.We try to identify these stocks, where the valuation is notreflecting the quality of a business or where the market iswrong in terms of growth and/or return assumptions.7GrowthValuationQuality
  • 8. © Copyright Allianz Global Investors Europe GmbH 2013 8Quality and Growth Aspects are Often LinkedThe virtuous circle of growth and returnsCompetitive companies generate high growth on the back of cash flows and investmentsSource: Datastream, Goldman Sachs Research estimates October 2012. Design by Allianz Global Investors Europe GmbH 2012. Note: CROCI (Cash Returns on Cash Invested) does not include financialsector. CAGR = Compound annual growth rate. 2011-14E, by industry positioning quartile. Circle: Allianz Global Investors Europe GmbH 2012. Past performance is not a reliable indicator of future results.Ability to invest in growth10.6%8.3%7.0%5.5%19.1%12.6%11.1%10.3%0%5%10%15%20%25%Q1 Q2 Q3 Q4Sales CAGR Average CROCIEuropean industry positioning quartiles (ex financials)of CROCI 2011-2014(expected) and their CAGR
  • 9. © Copyright Allianz Global Investors Europe GmbH 2013Valuation of Growth Stocks9Source: Allianz Global Investors Europe GmbH, 2012Factors with significant influence on valuationCorrelation withvaluationPositive correlationExpected earnings growth Stability of earnings growth balance sheet quality (net cash, low debt) Height of ROIC (Return on Invested Capital) Organic earnings growth (vs. inorganic earnings growth) Negative correlationVolatility of earnings growth Volatility of ROIC Capital intensity of the business model 
  • 10. © Copyright Allianz Global Investors Europe GmbH 2013Allianz German Equity – Investment ProcessFocused on stock selection10Individual stock weights are based on the conviction level of quality, growth and valuation criteriaFundamental research – checking the quality, growth prospects and the valuationof a companyQuality Growth ValuationBusinessMarketCompetitive positionManagementBalance sheetEarnings growth andrevisionsEarnings volatilityCash flow growthMultiples versus marketMultiples versus peersMultiples in context ofhistoryMultiples in context ofgrowthCATALYST
  • 11. © Copyright Allianz Global Investors Europe GmbH 2013Allianz German EquityReturn on equity and earnings growth11Return on equity and earnings growth at a moderate priceSource: Allianz Global Investors Europe GmbH, IDS GmbH, February 2013. Historical analysis based on CONCENTRA. This is for guidance only and not indicative of future allocation.FCF Yield (I) (r. Sc.)051015202530-10-5051015202520090131200902272009033120090430200905292009063020090731200908312009093020091030200911302009123120100129201002262010033120100430201005312010063020100730201008312010093020101029201011302010123120110131201102282011033120110429201105312011063020110729201108312011093020111031201111302011123020120131201202292012033020120430201205312012062920120731201208312012092820121031201211302012123120130131FCF Yield (I) (r. Sc.) Rtn on Equity Earnings Growth P/E (r. Sc.)
  • 12. © Copyright Allianz Global Investors Europe GmbH 2013 12Source: Goldman Sachs, as at February 2013Majority of our holdings generate >40% of export outside Western EuropeAllianz German Equity – Global Exposure of Our HoldingsPercentage of export outside Western Europe> 70%> 60%> 50%> 40%Bayer (Health Care)Fresenius (Health Care)Symrise (Materials)Richemont (Consumer Discretionary)Adidas (Consumer Discretionary)Lanxess (Materials)MTU (Industrials)HWA (Consumer Discretionary)Henkel (Consumer Staples)Do & Co (Consumer Discretionary)BASF (Materials)Hugo Boss (Consumer Discretionary)Merck (Health Care)SAP (Information Technology)Fuchs Petrolub (Materials)Fresenius (Health Care)Linde (Materials)Siemens (Industrials)BMW (Consumer Discretionary)Beiersdorf (Consumer Staples)Software AG (Information Technology)Lenzing (Materials)Norma Group (Industrials)Rational (Industrials)Deutsche Post (Industrials)Hannover Rueck (Financials)SIKA (Materials)GEA (Industrials)Bilfinger (Industrials)Pfeiffer Vacuum (Industrials)Allianz (Financials)MAN (Industrials)Munich Re (Financials)Draegerwerk (Health Care)Continental (ConsumerDiscretionary)
  • 13. © Copyright Allianz Global Investors Europe GmbH 2013Stock Examples213
  • 14. © Copyright Allianz Global Investors Europe GmbH 2013Investment Example - HenkelFocus on margins, top-line growth and net working capital14Everyday home and personal care products (Persil, Syoss) and adhesives (Loctite)Success due to high quality and speed to market. The shared services strategy adds valueHenkel is gaining market share, in particular in emerging markets. It is a fierce competitor in WesternEuropeSource: Allianz Global Investors Europe GmbH, proprietary Research, company data, Datastream, December 2012. This is no recommendation or solicitation to buy or sell any particular A stockmentioned as example above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.8.1%3.9%3.8%7.9%-0.1%5.1%2.8%3.6%Emerging MarketsLatin AmericaNorth AmericaEastern EuropeWestern EuropeLaundry and home careCosmetics / toiletriesAdhesive technologiesOrganic sales growth by region and businesssector Q3/2012 vs Q3/2011Quality Growth Valuation
  • 15. © Copyright Allianz Global Investors Europe GmbH 2013Henkel: Everyday Home and Personal Care ProductsHigh speed to market and shared services strategy15Henkel strategy: stable and above average growth on the back of strong brandsSource: Henkel company data, growth rates: Q3 2012 versus Q3 2011. Sales split Q3 2011. Design: Allianz Global Investors Europe GmbH 2012. This is no recommendation or solicitation to buy or sellany particular A stock mentioned as example above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.Adhesive Technologies: Organic sales growth 3.6 Innovation rate > 25%Laundry and Home Care: Organic sales growth 5.1 Innovation rate ~ 40%Cosmetics and Toiletries: Organic sales growth 2.8 Innovation rate > 40%ORGANIC SALES GROWTHQ2/2012 vs Q2/2011: 4.0%AdhesiveTechnologies;50%Cosmetics /Toiletries; 22%Laundry &Home Care;27%Corporate; 1%Sales Split by Business Sector
  • 16. © Copyright Allianz Global Investors Europe GmbH 2013Henkel: Everyday Home and Personal Care ProductsResilient growth in all regions16Henkel’s growth benefits from a strong position in emerging marketsSource: Henkel company data Q3 2011 and Q2 2012. Design: Allianz Global Investors Europe GmbH 2012. *as of 2008, EBIT margin adjusted for one-time charges/gains and restructuring charges. Thisis no recommendation or solicitation to buy or sell any particular A stock mentioned as example above will not necessarily be comprised in the portfolio by the time this document is disclosed or at anyother subsequent date.EmergingMarkets; 43%Japan/Australia/ NewZealand; 3%WesternEurope; 36%NorthAmerica; 17%Corporate; 1%Sales Split by Region Q3 2011
  • 17. © Copyright Allianz Global Investors Europe GmbH 2013Henkel: Catalyst For Investment – Management Change17Henkel: considerableoutperformance since webought our first position.Catalyst: management changeat Henkel.New management at Henkel: focus on margins and organic growth of core brandsSource: Proprietary research, Wilshire, IDS GmbH, Allianz Global Investors Europe, October 2012. Past performance is no reliable indicator of future performance. This is no recommendation orsolicitation to buy or sell any particular A stock mentioned as example above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date. Alldata series are relative series.012345605010015020025030031.05.2009 30/09/2009 29/01/2010 31/05/2010 30/09/2010 31/01/2011 31/05/2011 30/09/2011 31/01/2012 31/05/2012 28/09/2012Henkel perfomance Portfolio performanceDAX performance Henkel Portfolio Weight % (right axis)6/2009first HenkelpositionSpring 2010addition toHenkel position10/2012Core holdingHenkel: ~ 5%2/2010Inhouse analystvote upt to 4
  • 18. © Copyright Allianz Global Investors Europe GmbH 2013Investment Case For Henkel – Input from GrassrootsSM ResearchStudy: Henkel’s hair retail brands in Germany“Tough and often price-driven competition, specifically in the hair colour and hair caresegments…”Slightly more than three-fourths expect market share for Henkel’s retail hair styling products toincrease on average in H1 2012. Growth driver: Taft due to successful TV commercials withHeidi Klum.Most expect market share for Henkel’s retail hair color products to be stable or increase inH1 2012; growth drivers: Brilliance (by far on top), Poly Palette Sensual Colors.Slightly more than half expect market share for Henkel/Schwarzkopf retail hair care products to bestable in first half 2012 - growth driver Schauma/Glemo.Sources interviewed: 30 store managers and beauty category buyers at large drug stores andsupermarkets in Germany18“When comparing all three different Henkel/Schwarzkopf hair segmentsin the market, on average, the hair styling segment has the mostpromising market share outlook, followed by hair colour and hair care.”The GrassrootsSM Research study confirms the competitiveness of Henkel in GermanySource: GrassrootsSM Research is a division within the Allianz Global Investors group of companies that commissions investigative research forasset-management professionals. Research data used to generate GrassrootsSM Research reports are received from reporters and field forceinvestigators who work as independent, third party research providers, supplying research that is paid for by commissions generated by tradesexecuted on behalf of clients.This is no recommendation or solicitation to buy or sell any particular A stock mentioned as example above will notnecessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.
  • 19. © Copyright Allianz Global Investors Europe GmbH 2013Draegerwerk AG – Medical and Safety EquipmentStructural growth driven by innovation in medical and regulation in safety19 No. 2 position in anesthesia (40% global market share). No. 1 position in ventilation (33% market share). Growth region is Asia, ~60% of sales are coming fromEurope. Capex spending of hospitals is main growth driver and lesscyclical than industrial investments. Draeger‘s products are high quality and best standard globally In Safety, “Draegermen” is a U.S synonym for mine rescuestaff and “Dräger-Tubes” a synonym for portable gas detectors. Future: Complete solution provider alongside clients valuechain including IT-integration; providing concepts andconsulting offering rental and financing solutions. Draeger therefore invests heavily in software architectureattributing the highest value added to software.Two divisions: Medical (65% of sales, 72% of EBITDA) and Safety. Medical offers anesthesia and ventilation.Safety is focused on personal protection, gas detection and integrated hazard management.Source: Company data, Allianz Global Investors Europe, proprietary research, March 2013. This is no recommendation or solicitation to buy or sell any particular A stock mentioned as example above willnot necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.
  • 20. © Copyright Allianz Global Investors Europe GmbH 2013Proprietary Research on Draegerwerk by Dr Patrick Fuchs “Dräger is mainly active in Medical devices and sells ventilation andanesthesia systems to hospitals, i.e. in the area of hospital capex. Thesesystems are necessary for surgeries and in intensive care, so in developedmarkets it is a regular item for replacement that can be postponed only short-term. Initiate GrassrootsSM Research on Hospital Capex In emerging markets the division benefits from investments in healthcareinfrastructure. In Anesthesia, Draeger is one of the global duopolists, in Ventilation one ofthree major players in an oligopoly. Draeger is a niche player in medical monitoring with 9% global market share Draeger is global no. 1 in the competitive safety market with 26% marketshare in gas detection and 13% in respiratory protection. PE 2013 of 9.5x means a 40% discount to hospital capex peers, we believejust a discount of 20% is justified (lower growth/governance issue).20Findings by Dr Patrick Fuchs, Senior Research Analyst - European HealthcareSince 2008 at AGI EuropeSource: Allianz Global Investors Europe GmbH, proprietary research, April 2013. This is no recommendation or solicitation to buy or sell any particular A stock mentioned as example above will notnecessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.Draeger;40%4%GeneralElectric;41%Mindray; 2%13%Draeger;33%Getinge;29%Covidien;24%Others;14%Anesthesia and Ventilation MarketsAnesthesia Venitlation
  • 21. © Copyright Allianz Global Investors Europe GmbH 2013 GrassrootsSM Research found in August 2012, that in Germany, France and the US hospitalinvestment plans were largely unchanged, interviewees confirmed Dräger’s strong market position inEurope in anesthesia and its good position in ventilation worldwide. Also in August, a study in Italy, Spain, Germany, France and the UK revealed an overall high stabilityof hospital capex, with only Spain signaling a slight decrease of 10% on average - business as usual. GrassrootsSM Research found a clear preference for Draeger (3/5th of interviewees) in Europe, in theUS, General Electric was seen as preferable by 2/3. The studies further discovered Draeger as innovation leader in anesthesia and therefore able to setprices, a similar position was found in ventilation. Sources in Germany:“Draeger systems are the gold standard in anesthesia. Over many years now, the Primus line hasbeen the best in class, topped only by Draeger’s most recent Zeus.”“Draeger recently introduced software updates but no major breakthroughs. The company is veryinnovative and caters to all patient groups. If one buys their top products now, they will be good formany years to come. With Zeus Infinity Empowered, you get an anesthesia system that also providessophisticated ventilation modes combined with comprehensive monitoring, and even the Primus linecan be upgraded to do this; RFID [radio frequency identification] technology is available for both.”GrassrootsSM Research on Draegerwerk AG21Source: GrassrootsSM Research is a division within the Allianz Global Investors group of companies that commissions investigative research for asset-management professionals. Research data used togenerate GrassrootsSM Research reports are received from reporters and field force investigators who work as independent, third party research providers, supplying research that is paid for bycommissions generated by trades executed on behalf of clients.This is no recommendation or solicitation to buy or sell any particular A stock mentioned as example above will not necessarily becomprised in the portfolio by the time this document is disclosed or at any other subsequent date.
  • 22. © Copyright Allianz Global Investors Europe GmbH 2013Draegerwerk – Fundamentals of Sustaining Growth22Source: proprietary research, company data, Datastream. This is no recommendation or solicitation to buy or sell any particular A stock mentioned as example above will not necessarily be comprised inthe portfolio by the time this document is disclosed or at any other subsequent date.. ROIC = Return on Invested Capital, P/E = Price/Earnings, EPS = Earnings per Share, EV/EBITDA = Enterprise Valueto Earnings before Interest, Depreciation and AmortizationQuality Growth Valuation5.1% 5.3%6.6% 6.6%8.0% 8.1% 7.9% 7.8% 7.9%8.2%0%1%2%3%4%5%6%7%8%9%0%5%10%15%20%25%30%2008 2009 2010 2011 2012 2013 2014 2015 2016 2017CFROI Net Working Capital, % Sales-1%14%4%5%3%4% 4% 4% 4%-2%0%2%4%6%8%10%12%14%16%2009 2010 2011 2012 2013 2014 2015 2016 2017Organic Sales Growth EBIT, % margin
  • 23. © Copyright Allianz Global Investors Europe GmbH 2013Investment Example - Fuchs Petrolub – Lubricants and GreasesLeading independent player, customer proximity, speed, flexibility23A high return company at relatively low valuation metric and upward pressure on cash returnsFuchs is expecting 4-5% organic sales growth. Strong regional mixFuchs Petrolub offers advantages over major oil companies. Fuchs is a full-line supplier. Innovations,customized products and highly appreciated level of serviceSource: Allianz Global Investors Europe GmbH, proprietary research, company data, Datastream, December 2012. This is no recommendation or solicitation to buy or sell any particular A stock mentionedas example above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date. CFROI = Cash Flow Return on Investments (debt-adjusted)22.9%15.6%17.6%18.7%24.3%20.2%21.6%25.9%26.7%0%50%100%150%200%250%300%350%0%5%10%15%20%25%30%2003 2004 2005 2006 2007 2008 2009 2010 2011CFROI (debt-adj., on PPE&WC), %; left axisCapex/Deprecation (PPE), %; right axis38740842446750948845756761201002003004005006007002003 2004 2005 2006 2007 2008 2009 2010 2011EURmGross Profit Trend: 6% CAGRQuality Growth Valuation
  • 24. © Copyright Allianz Global Investors Europe GmbH 2013Investment case for Fuchs Petrolub – in-house analysisDr Christian Schlimm covers the stock among chemicals “This 16% operating return company is trading at around 8x P/CF, operating in attractive growthmarkets and looks relatively cheap compared to some European high quality names.” “An attractive set of businesses, highly cash generative and with a rock solid balance sheet.” “Competitive position: 9th largest lubricants company worldwide with more than 10,000 differentproducts. Barriers to enter include technical service and know-how. Limited threat of substitution,as electric mobility ramp up is behind schedule (20% of sales to auto OEM). Historically, stronggrowth and return track record. “Management are expecting organic sales growth to reach 4-5%/year over the medium-term.Fuchs succeeds in penetrating niches in ocean gear lubricants (cement industry) and miningspecialties (fire resistant hydraulic fluids for coal mining, metalworking fluids or corrosionpreventatives.”24This year, Christian Schlimm upgraded Fuchs Petrolub to a 4-vote. Convincing returns, lowvaluation metrics and upward potential for cash flows are reasons.Dr Christian Schlimm is top-voted financial analyst, awarded rank 2 among chemicals analysts inEuropeSource: Allianz Global Investors Europe GmbH, proprietary research, October 2012. Thomson-Reuters Extel Survey for the ranking. This is no recommendation or solicitation to buy or sell any particular Astock mentioned as example above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.Dr Christian SchlimmSenior Research Analyst -European Chemicals &Paper since 2004 atAllianzGI Europe
  • 25. © Copyright Allianz Global Investors Europe GmbH 20133CONCENTRA – Performance and Profile25
  • 26. © Copyright Allianz Global Investors Europe GmbH 2013CONCENTRAPerformance closing prices gross of fees as at 31.03.201326Source: Pico, IDS, 31.03.2013. Past performance is no reliable indicator of future performance. All performance data in respect of Allianz German Equity until its launch date (22.10.2012) relates toanother fund with a broadly identical investment objective and whose assets are also managed by Allianz Global Investors Europe GmbH, namely CONCENTRA. The latter, which is a an open-endedinvestment trust organized under the laws of Germany was launched on 26.03.1956. This does not imply that Allianz German Equity] will enjoy similar performance in the future. Data gross of fees;calculation at the net asset value (BVI method) based on the assumption that distributions are reinvested and excludes initial charges. Individual costs such as fees, commissions and other charges havenot been taken into consideration and would have a negative impact on the performance if they were included.262,816,0722,2713,5715,8710,1415,978,561,382,8312,915,428,413,8412,486,740,005,0010,0015,0020,0025,001 Month 3 Months 1 Year 2 Years ann. 3 Years ann. 5 Years ann. 10 Years ann. Since31.12.1993ann.Fund IndexPerformance HistoryConcentra AEURPerformance up to31.03.2013Fund IndexActiveReturn1 Month 2,81 1,38 1,433 Months 6,07 2,83 3,241 Year 22,27 12,91 9,362 Years ann. 13,57 5,42 8,153 Years ann. 15,87 8,41 7,465 Years ann. 10,14 3,84 6,3010 Years ann. 15,97 12,48 3,49Since 31.12.1993 ann. 8,56 6,74 1,82Closing Prices Gross of Fees, IDSDAX (Auction)
  • 27. © Copyright Allianz Global Investors Europe GmbH 2013CONCENTRAPerformance closing prices gross of fees as at 31.03.201327Source: Pico, IDS, 31.03.2013. Past performance is no reliable indicator of future performance.. All performance data in respect of Allianz German Equity until its launch date (22.10.2012) relates toanother fund with a broadly identical investment objective and whose assets are also managed by Allianz Global Investors Europe GmbH, namely CONCENTRA. The latter, which is a an open-endedinvestment trust organized under the laws of Germany was launched on 26.03.1956. This does not imply that Allianz German Equity will enjoy similar performance in the future. Data gross of fees;calculation at the net asset value (BVI method) based on the assumption that distributions are reinvested and excludes initial charges. Individual costs such as fees, commissions and other charges havenot been taken into consideration and would have a negative impact on the performance if they were included.27Performance HistoryConcentra AEURPerformance up to31.03.2013Fund IndexActiveReturnYear to date 6,07 2,83 3,24YEAR 2012 37,97 29,91 8,06YEAR 2011 -9,70 -15,18 5,48YEAR 2010 22,49 16,10 6,39YEAR 2009 38,03 24,58 13,45YEAR 2008 -41,30 -40,65 -0,65YEAR 2007 20,56 21,87 -1,31Closing Prices Gross of Fees, IDSDAX (Auction)6,0737,97-9,7022,4938,03-41,3020,562,8329,91-15,1816,1024,58-40,6521,87-50,00-40,00-30,00-20,00-10,000,0010,0020,0030,0040,0050,00Year to date YEAR 2012 YEAR 2011 YEAR 2010 YEAR 2009 YEAR 2008 YEAR 2007Fund Index
  • 28. © Copyright Allianz Global Investors Europe GmbH 2013CONCENTRAPerformance attribution 12 months to 31.03.201328*Note: Attribution based on position-based performance attribution (daily buy-and-hold, closing price, no transaction costs). Performance figures shown on this report are approximates. The officialperformance for funds subject to substantial cash flows or which trade in volatile daily market conditions will vary from these figures. Past performance is no reliable indicator of future performance.Source: Wilshire, IDS GmbH, 31.03.2013. All performance data in respect of Allianz German Equity until its launch date (22.10.2012) relates to another fund with a broadly identical investment objectiveand whose assets are also managed by Allianz Global Investors Europe GmbH, namely CONCENTRA. The latter, which is a an open-ended investment trust organized under the laws of Germany waslaunched on 26.03.1956. This does not imply that Allianz German Equity will enjoy similar performance in the future.28Total TotalPort Bmk Diff Return Port Bmk Diff Return1,3% 5,0% -3,6% -1,8% 1,1% 1,1% 0,0% -23,1%0,0% 4,8% -4,7% -0,2% 5,1% 9,8% -4,8% 15,3%2,4% 0,0% 2,4% 59,9% 2,3% 0,4% 1,9% -9,4%0,2% 6,1% -5,9% -1,2% 0,0% 0,9% -0,9% 49,2%4,9% 1,7% 3,1% 38,6% 0,8% 1,0% -0,2% 8,7%0,0% 2,6% -2,6% -14,0% 0,5% 0,0% 0,5% -17,0%0,0% 1,0% -1,0% -39,6% 0,1% 1,0% -0,9% 34,5%2,4% 0,0% 2,4% 37,4% 0,8% 0,0% 0,8% 1,6%0,0% 4,2% -4,2% -0,8% 2,6% 2,2% 0,4% 30,4%4,2% 2,2% 2,0% 40,5% 0,5% 0,9% -0,5% 24,7%15,4% 27,6% -12,2% — 13,9% 17,3% -3,4% —Total TotalPort Bmk Diff Return Port Bmk Diff Return4,9% 1,7% 3,1% 38,6% 0,2% 6,1% -5,9% -1,2%2,4% 0,0% 2,4% 59,9% 5,1% 9,8% -4,8% 15,3%2,4% 0,0% 2,4% 37,4% 0,0% 4,8% -4,7% -0,2%4,2% 2,2% 2,0% 40,5% 0,0% 4,2% -4,2% -0,8%2,3% 0,4% 1,9% -9,4% 1,3% 5,0% -3,6% -1,8%1,9% 0,0% 1,9% 6,5% 0,6% 3,5% -2,9% 12,8%1,6% 0,0% 1,6% 20,9% 0,0% 2,6% -2,6% -14,0%4,8% 3,2% 1,6% 36,4% 0,0% 1,0% -1,0% -39,6%9,6% 8,0% 1,6% 22,2% 0,0% 0,9% -0,9% 49,2%1,9% 0,6% 1,3% 34,5% 0,5% 1,4% -0,9% -14,0%36,0% 16,1% 19,8% — 7,7% 39,2% -31,5% —Positive Active Contributors Negative Active ContributorsOverweighted OverweightedAdidas AgSubtotal44 bpSubtotal4432 537 bpGea Group AgBeiersdorf Ag50 bp927 bp92 bp*Daimler AgHenkel Ag&Co. KgaaCommerzbank AgUnited Internet Ag699 bpUnderweighted UnderweightedDeutsche Telekom Ag1236 bpAverage Weight(% of Total)Performance102 bp*Heidelbergcement AgLenzing AgWorstInfineon Technologies ASiemens Ag*E.On Se54 bp187 bp170 bpRwe Ag*Deutsche Bank AgFuchs Petrolub Ag73 bp83 bp35 bp Commerzbank Ag*E.On SeName Name(% of Total) ActiveContributionOverweights Underweights18 bp Deutsche Lufthansa Ag44 bp Deutsche Telekom Ag-32 bp-10 bp *Volkswagen AgMuenchener RueckversichUnited Internet Ag 54 bpNameBestActive Contributors (% of Total)ActiveContributionPerformanceAverage WeightLanxess AgAverage Weight*K&S AgDeutsche Lufthansa Ag74 bpName12Adidas Ag-6 bpLanxess Ag74 bpHenkel Ag&Co. Kgaa 83 bp *Daimler Ag*Deutsche Bank AgFuchs Petrolub Ag 102 bp Siemens Ag -40 bp50 bpBilfinger Se 6 bp Rwe Ag187 bpHugo Boss Ag92 bpPerformance-17 bp-141 bp-325 bp73 bp170 bp(% of Total) ActiveContribution-251 bp-12 bp-183 bp14Average Weight822ActiveContribution-30 bp-19 bp-14 bp-32 bp-57 bp-40 bp-15 bp-17 bp571 bpContinental Ag 38 bp-30 bpSap Ag1 bpSubtotal SubtotalDeutsche Boerse Ag336 bpActive ContributorsDeutsche Post AgBiggest BiggestPerformance
  • 29. © Copyright Allianz Global Investors Europe GmbH 2013CONCENTRASector allocation29Source: Wilshire, IDS GmbH, 31.03.2013. Sector allocation versus DAX 30 (Auction). This is for guidance only and not indicative of future allocation.29GICS Sector %PF Weight %BM Weight DeltaInformation Technology 13.29 9.43 3.86Consumer Staples 6.19 3.00 3.19Materials 20.03 16.91 3.12Health Care 17.43 14.45 2.98Industrials 12.93 13.31 -0.38Financials 15.28 16.77 -1.49Consumer Discretionary 14.84 16.59 -1.75Telecom Services 0.00 3.59 -3.59Utilities 0.00 5.95 -5.95Market Cap Split %PF Weight %BM Weight3bn <= MarketCap 90.03 100.001bn <= MarketCap < 3bn 5.02 0.00MarketCap < 1bn 4.95 0.00Sector AllocationRelative Sector Allocation3.863.193.122.98-0.38-1.49-1.75-3.59-5.95-8 -6 -4 -2 0 2 4 6Information TechnologyConsumer StaplesMaterialsHealth CareIndustrialsFinancialsConsumer DiscretionaryTelecom ServicesUtilities
  • 30. © Copyright Allianz Global Investors Europe GmbH 2013CONCENTRAPositions30Source: Wilshire, IDS, 31.03.2013. Versus DAX 30 (Auction). Sector allocation versus DAX 30 (Auction). A stock mentioned as example above will not necessarily be comprised in the portfolio by thetime this document is disclosed or at any other subsequent date. This is no recommendation or solicitation to buy or sell any particular security.30Top 10 Holdings %PF Weight %BM Weight %OverweightBAYER AG 10,20 9,85 0,35SAP AG 10,01 8,46 1,55ALLIANZ SE 9,31 7,11 2,20BASF SE 9,23 9,29 -0,06HENKEL AG&CO. KGAA 5,09 1,94 3,15LINDE AG 5,06 3,98 1,08MUENCHENER RUECKVERSICH 4,88 3,44 1,44SIEMENS AG 3,94 9,88 -5,94DEUTSCHE POST AG 3,89 2,40 1,49CONTINENTAL AG 3,32 1,38 1,93Top 10 Overweights %PF Weight %BM Weight %OverweightHENKEL AG&CO. KGAA 5,09 1,94 3,15UNITED INTERNET AG 2,87 0,00 2,87FUCHS PETROLUB AG 2,81 0,00 2,81ALLIANZ SE 9,31 7,11 2,20HUGO BOSS AG 2,07 0,00 2,07CONTINENTAL AG 3,32 1,38 1,93SAP AG 10,01 8,46 1,55DEUTSCHE POST AG 3,89 2,40 1,49MUENCHENER RUECKVERSICH 4,88 3,44 1,44DRAEGERWERK AG & CO KGA(*M*) 1,35 0,00 1,35
  • 31. © Copyright Allianz Global Investors Europe GmbH 2013CONCENTRATracking error and contributors to TE31Source: IDS, Wilshire, 28.02.2013. Concentra versus DAX 30 (Auction Sector allocation versus DAX 30 (Auction). A stock mentioned as example above will not necessarily be comprised in the portfolio bythe time this document is disclosed or at any other subsequent date. This is no recommendation or solicitation to buy or sell any particular security.Top 10 Contributors to the Tracking Error Port BM CTEDaimler Ag 0,00% 6,20% 29,07%(CTE = contribution to TE) Deutsche Bank Ag 0,00% 4,18% 24,88%Siemens Ag 3,93% 9,88% 17,18%E.On Se 0,00% 3,84% 15,39%Volkswagen Ag 0,00% 3,30% 13,96%Deutsche Telekom Ag 0,00% 3,59% 8,80%Rwe Ag 0,00% 2,11% 7,25%Heidelbergcement Ag 0,00% 1,17% 4,37%Commerzbank Ag 0,00% 0,74% 4,35%Thyssenkrupp Ag 0,00% 0,90% 3,74%Tracking Error ex ante* (in bps annualized) 345 [346]
  • 32. © Copyright Allianz Global Investors Europe GmbH 2013Appendix432
  • 33. © Copyright Allianz Global Investors Europe GmbH 2013BiographyMatthias Born33FactsName Matthias BornDesignation/Division SeniorPortfolio Manager / Investment Style Co-Leader GrowthAsset Management Unit Allianz Global Investors Europe GmbHYear of joining company/group 2001Number of years with company/group 12Years of experience in securities inbusiness/portfolio management12Employment History07/2001 - today Allianz Global Investors Europe GmbH10/2010 - today Portfolio Manager Allianz Continental European Fund10/2009 - today SeniorPortfolio Manager / Investment Style Co-Leader Growth, PortfolioManager Allianz Euroland Equity Growth, Allianz Wachstum Euroland09/2007 - today Portfolio Manager CONCENTRA (German Equity)2002- 9/2009 Member of the investment style team small capsDep. Portfolio Manager (before lead-manager) Allianz WachstumDeutschlandAcademic Qualification2001 Diplom-Kaufmann, Universität Würzburg, Germany (German degree inBusiness Administration)
  • 34. © Copyright Allianz Global Investors Europe GmbH 2013 3434Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors may not get back thefull amount invested.Concentra is an open-ended investment trust organized under the laws of Germany. The volatility of the fund unit prices may be stronglyincreased. Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs fromthe currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations theperformance shown may be higher or lower if converted into the investor’s local currency.This is for information only and not to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sellany securities. The products or securities described herein may not be available for sale in all jurisdictions or to certain categories of investors.This is for distribution only as permitted by applicable law and in particular not available to residents and/or nationals of the USA. Theinvestment opportunities described herein do not take into account the specific investment objectives, financial situation, knowledge,experience or specific needs of any particular person and are not guaranteed. The views and opinions expressed herein, which are subject tochange without notice, are those of the issuer and/or its affiliated companies at the time of publication. The data used is derived from varioussources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteedand no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or willful misconduct.The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail.Contact the management company Allianz Global Investors Europe GmbH in the funds country of domicile Germany or the issuerelectronically or via mail at the address indicated below for a free copy of the sales prospectus, the incorporation documents, the latest annualand semi-annual financial reports and the key investor information document in English. Please read these documents - which are solelybinding - carefully before investing.This is a marketing communication. Issued by Allianz Global Investors Europe GmbH, www.allianzglobalinvestors.eu, an investment companywith limited liability incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/Main, Germany,authorized by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). The duplication, publication, or transmission of the contents,irrespective of the form, is not permitted.DisclaimerCONCENTRA
  • 35. Understand. Act.Thank you