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  • 1. Allianz RCMEurope EquityGrowthGoing for GrowthNovember 2011Information for fund distributors & institutionalinvestors. Not for circulation to private investors.
  • 2. Content1. Welcome to RCM2. The Europe Equity Growth strategy: Investment Process3. RCM‗s Equity Platform at Work: Stock Examples4. The Attractiveness of Growth Stocks5. Europe Equity Growth Strategy – Update6. Appendix11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 2
  • 3. 1 Welcome to RCM11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 3
  • 4. Allianz Global Investors – a leading global asset manager wellpositioned 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 Regions with total AuM of € 526 bn1. 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 companies11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 4
  • 5. RCM: asset manager of 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 stocks11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 5
  • 6. A global asset management company Over 440 investment, research and business professionals across the world Over 270 investment professionals Virtual 24 hour office – structured to promote communication and information flow Global investment infrastructure customised to provide highest quality management of fundamental and quantitative information; from research to portfolio management to trading, compliance and client service Europe Asia Pacific Europe Asia Pacific >30 investment >180 investment >180 investment >30 investment professionals professionals professionals professionals Americas >50 investment Americas professionals >50 investment professionals RCM‘s structure facilitates information travelling faster and more freelySource: RCM, as at 30 June 2011.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 6
  • 7. Global research team Sustainabilit Financial Health Telecom/ Spec. Sits./ Grassroots Consumer Industrials Technology y Research ® Research Total Services Care Media Themes (SR) Europe 4 5 3 9 2 3 3 6 3 38 US 3 2 4 3 5 1 1 1 3 23 Asia Pacific 2 3 1 4 2 1 0 0 1 14 Total 9 10 8 16 9 5 4 7 7 75 An average of 14 years of industry experience, seven of which with RCM 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: RCM, as at 30 June 2011.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 7
  • 8. Grassroots® Research Mission: Client Provide RCM investment professionals with timely business insights that help identify inflection points and increase investment conviction Portfolio ManagersMethodology: Sector Analysts Customised to answer specific questions about key stock drivers identified by portfolio managers and analystsResources: Grassroots® Analysts In-house staff of 11 74 reporters Grassroots® Reporters Customers Experts 298 Field Force investigators Field Force Investigators Suppliers Regulators 50,000+ industry contacts Managers Distributors Physicians CompetitorsResults: Consumers 30+ company/industry studies per month www.grassrootsresearch.com Investment decisions – reality checkedSource: RCM, as at 30 June 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.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 8
  • 9. RCM‘s expertise Country/ Global Emerging Thematic Total Regional Equity Markets and Sector Return and Equity Strategies Equity Strategies Multi-Asset Strategies Company Grassroots® Macro Sustainability Systematic Research Research Research Research Research Global Research Exploiting an information advantage11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 9
  • 10. 2 The Strategy Europe Equity Growth: Investment process11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 10
  • 11. Europe Equity Growth StrategyA growth investment for the whole market cycleAgainst MSCI Europe  Performance (back office net of fees) 30 rolling 3 Years annualised, 30.09.2011 25  (every month-ending rolling 3-year period since 31st of May 2003)Europe Equity Growth 20 Strategy 15 10 5 This presentation aims to demonstrate the qualities and track record of the strategy Europe Equity Growth, reflected in several share classes and 0 segregate accounts. For the purpose of the presentation, we illustrate the -15 -10 -5 0 5 10 15 20 25 30 characteristics of the strategy via a representative account. The -5 performance track record of the composite is shown at the end of this presentation (slide 30). The strategys performance is demonstrated by the -10 representative account Allianz RCM Europe Equity Growth from October 2006 On. Data prior to 16.10. 2006 are based on Allianz RCM Wachstum Europa. Past performance is no reliable indicator for future performance. -15 MSCI EuropeSource: Pico, IDS, backoffice net off fees, figures as per 30.09.2011. All figures in Euro. The Europe Equity Growth strategy outperformed the European equity market!11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 11
  • 12. Investment Style Team Growth: idea generationInput from all sources of RCM‘s global equity platform European Equity Investment Style Team Growth Portfolio Company Management Thorsten Winkelmann Matthias Born Meetings Teams Portfolio Manager Portfolio Manager Allianz RCM Europe Equity Growth Allianz RCM Euroland Equity Growth Small Mid Caps 10 years experience 15 years experience Specialty: Germany, Switzerland, Specialty: UK, Ireland Austria Macroeconomic Value / Income Research Robert Hofmann Andreas Hildebrand Co-Portfolio Manager Portfolio Management Associate High Alpha Allianz RCM Europe Equity Growth 4 years experience 6 years experience Specialty: Southern Europe Sell-side Absolute Return/ Specialty: Scandinavia Research UnconstrainedSource: RCM, data as of 01.04.2011 Global Research Grassroots® Sustainability Platform Research Research RCM‘s global equity platform powers the idea generation process - over two thirds of the European universe covered in house11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 12
  • 13. Growth investment philosophyProduct philosophy for a consistent investment process The research-driven investment process is based on bottom-up fundamental stock selection. We identify stocks with structurally above average earnings and cash flow growth which the market has not yet fully anticipated.Note: Past performance is no reliable indicator for future performance. Reliable and consistent performance over a market cycle11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 13
  • 14. The investment process is focused on structural growth Growth in earnings and cash flows Structural Component Cyclical Component driven by one or more of the driven by the economic growth of the following drivers: countries the company is doing 1. Secular growth driver business in 2. Technological leadership 3. Superior business model strong multiple expansion limited multiple expansion relative to the market relative to the marketGDP: Global Domestic Product. Structural Growth is less dependent on global GDP growth11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 14
  • 15. Selection of structural growth companiesLooking at Porter’s 5 - Forces Model: New entrants Industry positioning is critical Competitive advantages drive the margins Threat of and the returns new entrants Industry Bargaining competitors Bargaining Suppliers power of power of Buyers suppliers buyers Intensity of rivalry Threat of substitutesSource: Competitive Strategy: Techniques for Analyzing Industries and Competitors,von Michael E. Porter, 1980. Design Allianz Global Investors KAG 2010. Substitutes Performance driven by identification of companies successfully delivering long-term structural growth11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 15
  • 16. Stock selection Europe Equity GrowthThree factors determine the selection of a growth stock  Growth potential not yet fully  Factors influencing the market‘s anticipated in the price view of a stock  Announcements (earnings, contracts, products) as possible triggers STRUCTURAL GROWTH  Companies benefiting from  a secular growth driver  technological leadership  cost leadership  a superior business model Stock-picking is key driver of investment results11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 16
  • 17. 3 RCM‘s equity platform at work: Stock Examples11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 17
  • 18. Elekta‘s business model: producer of radiotherapy equipmentfor the non-invasive treatment of (brain) cancer  Radiotherapy is worldwide a tight item!  Elekta is the second largest provider of radiotherapy worldwide → Leading in China! Siemens Elekta 28% 40% Varian 32% Market share in segment Linac (linear accelerator Source picture: Elekta for radiotherapy) in China Long-term investing in Elekta based on the assessment of the business model as superior - the Europe Equity Growth team discovered the investment case in 2006The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio.The average investment horizon of the fund is 3 to 5 years.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 18
  • 19. Elekta: portfolio position, share price, performance contribution 35 4 3.5 30 3 25 2.5 20 2 1.5 15 1 10 0.5 5 0 Performance Attribution Analysis 31.01.2007 - 31.07.2011 Share Price Elekta Portfolio Position Elekta (%) Europe Equity Growth S&P Europe LargeMidCap Growth Average Net Stock Company Name Average Return Contrib Average Return Contrib Weight Contrib Select Weight (%) Weight (%) Diff. ABv TOT Saipem 1.678 195.637 2.972 0.249 113.755 0.171 1.429 2.8 2.373 Compagnie Financiere Richemont 1.394 183.3 2.945 0.14 169.847 0.181 1.254 2.764 2.274 Inditex 2.99 61.246 1.402 0.356 61.246 0.176 2.635 1.227 2.223 Atlas Copco Ab 1.607 73.508 2.17 0.432 66.211 0.253 1.175 1.917 2.005 Elekta 1.35 99.84 1.81 - - - 1.35 1.81 1.95 British American Tobacc 2.747 71.291 1.954 1.079 71.291 0.704 1.668 1.249 1.933 Novo-Nordisk As 1.36 180.41 1.976 0.707 180.41 0.618 0.653 1.357 1.85 Long-term investing in Elekta paid off – the superior business model started to outperform 2 years agoThe investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio.The average investment horizon of the fund is 3 to 5 years. Past performance is no relíable indicator for future performance.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 19
  • 20. Elekta as investment case: intensive monitoring of the stock Elekta: Investment History Elekta: Investment History Europe Equity Growth 2007 January Europe Equity Growth initiates a small position of 0.3% 2008 August Europe Equity Growth has established a position of 1.3% 2011 May Europe Equity Growths position has doubled through multiple expansion Elekta: GrassrootsSM Studies Elekta in the US: 2008 November 2009 March 2009 October 2010 September Elekta in Brazil: 2009 October 2011 January 2011 June Elekta in China: 2009 October 2011 June Elekta in Europe: 2008 March 2008 November 2009 March 2009 October 2010 September 2011 April Gamma Knife competitiveness: 2007 June RM Global Research Studies RIMS Notes: 2008 August 2008 September 2008 November 2008 December 2009 February 2009 April 2009 June 2009 August 2009 November 2009 December 2010 January 2010 April 2010 November 2011 June 2011 July 2011 August RCM Vote: 3 The European Equity Investment Style Team Growth initiated proprietary research and Grassroots® studies from 2007 onwardsThe investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio. The average investmenthorizon of the fund is 3 to 5 years. RIMS is a proprietary research software, enabling the global knowledge exchange as a virtual 24hour communication process. RCM Vote: Proprietary Analyst Recommendation rangingfrom top 5 to bottom 1.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 20
  • 21. Elekta versus MSCI Europe - relative evaluation chart:PE, EPS and relative share price 1994 - 2011 Elekta B / MSCI Europe 120 3.50 Price EPS PE (right) PE = 1 3.00 100 2.50 80 2.00 60 1.50 40 1.00 20 0.50 0 0.00 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Our proprietary Evaluation Chart discloses the superior earnings situation of Elekta during the 08‘ crisisThe investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio. The average investmenthorizon of the fund is 3 to 5 years. PE: Price to Earnings Ratio. EPS: Earnings per Share.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 21
  • 22. Investment case Elekta: intensive research and cooperation Patrick Fuchs, PH.D., RCM Healthcare Analyst  Healthcare analyst and fund managers work closely together and contact Elekta‗s management on a regularly basis.  Elekta‗s analyst, Patrick Fuchs, is a CEFA qualified Equity analyst and molecular biologist (PH.D) with management experience in the pharma industry.The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of theportfolio. The average investment horizon of the fund is 3 to 5 years. CEFA: Chartered European Financial Analyst. The picture above depicts a recent screenshot of a content frame of RIMS.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 22
  • 23. Elekta: high quality cancer radiation treatment equipmentInvestment Story 2007 to 2011: Documentation from the beginning February 2007: win market share in a fast growing market worldwide […] position in the fast growing Asian/Chinese market. […] acquisition of Impac gives a bigger exposure to the higher margin software segment and allows for substantial cross-selling opportunities to Impacs customers that are currently users of competitors products by providing only one single solution.‖ Robert Hofmann, March 2008: ―The problem in Asia[…] - has been hospital purchasing almost disappearing in China in Portfolio Manager, 2006/07, as hospitals have been waiting for new purchasing guidelines. That is now in place and Elekta says Strategy European Equity Growth the recovery has been fast, even better than they would have thought. […] exposure to China has increased and they will start supplying a new "low-cost" machine next year.‖ July 2008: ―gained strongly […] fourth-quarter profit rose by 43% because of a record backlog of orders. Elekta‘s order backlog reached 4.58 billion kronor on Q1 2008 after the equipment maker has introduced several new products. […] and benefit from its strong position in the Asian (Chinese) market. ― January 2011: ―[…] Elekta has 40% market share in China and a strong position in Brazil. Q2 2010 results came in well ahead of expectations, with US activity improving . Asian sales contribution was a positive surprise, with a significant rise in orders. […] volume growth in emerging markets is 10-20% […] Elekta aims to introduce major new products every second or third year, with the launch of the Synergy device platform three years ago being the latest major launch.(Source: Monthly portfolio comments of European Equity Investment Style Team Growth)The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents ofthe portfolio. The average investment horizon of the fund is 3 to 5 years.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 23
  • 24. 4 Attractiveness of growth stocks11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 24
  • 25. Growth stocks deserve a share-price premium, but don‗t getit at presentHigh EBITDA growth stocks have been derated...Growth is based on consensus Year 3 estimates 30 High growth stocks Low growth stocks 25 High growth stocks - Average Low growth stocks - Average 20 15 10 5 0 99 00 01 02 03 04 05 06 07 08 09 10 11Source: I/B/E/S, Datastream, Goldman Sachs Global ECS Research; August 2011EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortisation. As long as the market rates low and high growth stocks equally - growth stocks remain undervalued11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 25
  • 26. History displays a premium on earnings growth and sales growthAverage P/E multiples historically (1997 to 2010)for companies falling into different sales and earnings growth bandsSales and earnings growth bands are based on consensus year three forecasts Earnings growth < -10% -10% - 0% 0% - 5% 5% - 10% 10% - 15% 15% - 20% 20% - 30% > 30% All EPS growth: Less than zero 10.8 10.9 11.5 12.3 14.3 14.6 15.5 18.3 12.4 0% - 2% 11.5 10.9 11.3 12.0 13.1 14.0 13.9 15.8 12.3 Sales growth 2% - 4% 11.0 11.4 11.6 12.0 12.7 13.3 13.5 15.8 12.5 4% - 6% 12.1 11.5 12.1 12.7 13.6 14.6 14.6 16.1 13.4 6% - 8% 13.2 12.8 12.1 13.2 14.8 15.3 15.7 16.8 14.5 8% - 10% 14.6 13.7 13.9 14.0 16.2 16.5 17.3 17.6 15.9 10% - 12% 14.0 13.5 13.7 14.0 16.4 17.7 17.3 19.5 16.5 12% - 100% 15.1 13.8 14.2 14.7 16.8 19.6 20.1 21.0 18.5 All sales growth: 11.5 11.5 11.9 12.7 14.6 16.0 16.7 17.9 14.3Source: I/B/E/S, Datastream, Goldman Sachs Global ECS Research, August 2011P/E multiples: Price/Earnings multiples Over the last 13 years markets paid a premium on high earnings and sales growth11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 26
  • 27. The current environment shows an unwillingness to pay for growth Current* average P/E multiples for companies falling into different sales and earnings growth bands Sales and earnings growth bands are based on consensus year three forecasts Earnings growth < -10% -10% - 0% 0% - 5% 5% - 10% 10% - 15% 15% - 20% 20% - 30% > 30% All EPS growth: Less than zero 13.5 12.4 7.2 9.5 10.8 6.4 10.8 6.1 9.9 0% - 2% N/A 12.1 9.0 7.8 10.9 8.8 13.9 7.4 9.4 Sales growth 2% - 4% 5.7 8.9 9.9 9.2 7.8 9.3 7.3 12.7 9.1 4% - 6% N/A N/A 10.0 9.7 11.0 8.7 8.7 9.2 10.0 6% - 8% 8.3 N/A 11.0 13.7 11.3 13.3 8.8 14.4 11.9 8% - 10% 3.3 N/A 10.0 15.2 13.0 12.6 10.6 9.0 12.7 10% - 12% N/A 9.5 N/A 11.7 13.6 14.5 13.8 10.5 13.1 12% - 100% 11.2 23.4 10.3 5.1 15.8 14.8 14.2 12.0 13.9 All sales growth: 10.6 12.6 9.5 10.2 11.3 11.7 10.1 10.3 10.7 Source: I/B/E/S, Datastream, Goldman Sachs Global ECS Research * as of August 2011P/E multiples: Price/Earnings multiples The multiples of stocks with high forecasted growth show currently not the expansion deserved11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 27
  • 28. 5 Europe Equity Growth Strategy: Update11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 28
  • 29. Allianz RCM Europe Equity GrowthPerformance 30.09.2011 15.0 Performance History 11.83 11.30 Allianz RCM Europe Equity Growth A EUR S&P EUROPE 9.95 10.0 LARGEMIDCAP GROWTH 5.0 4.32 4.56 Allianz RCM 3.30 Performance up to Active Return Europe Equity Benchmark* MSCI Europe 1.13 30.09.2011 vs BM* 0.12 Growth A EUR 0.0 -0.70 1 Month -2.75 -5.08 -4.47 2.33 -1.27 -2.75 3 Months -12.64 -16.51 -16.37 3.87 -5.0 -3.56 -3.60 -4.47 -5.08 -5.23 1 Year -3.56 -9.57 -10.26 6.01 2 Years ann. 11.83 1.13 -0.70 10.70 -10.0 -9.57 -10.26 3 Years ann. 11.30 0.12 -1.27 11.18 -12.64 5 Years ann. 3.30 -3.60 -5.23 6.90 -15.0 Since 31.05.2003 ann. 9.95 4.32 4.56 5.40 -16.51-16.37 Backoffice Prices Net of Fees, IDS -20.0 1 Month 3 Months 1 Year 2 Years ann. 3 Years ann. 5 Years ann. Since 31.05.2003 *BM: S&P Europe LargeMidCap Growth Return Net since 01.08.2008 ann. Allianz RCM Europe Equity Growth A EUR Benchmark* MSCI Europe BM: S&P Citigroup PMI Europe Growth total ret. Since 31.05.2003Source: Pico, IDS, 30.09.2011. Past performance is no reliable indicator for future performance.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 29
  • 30. Allianz RCM Europe Equity GrowthPerformance 30.09.201160.0 Performance History 49.37 Allianz RCM Europe Equity Growth A EUR40.0 34.90 33.28 S&P EUROPE LARGEMIDCAP GROWTH RETURN NET IN EUR 31.54 31.60 26.7326.09 Allianz RCM Performance up to Active Return 19.61 19.53 Europe Equity Benchmark* MSCI Europe20.0 16.40 17.75 30.09.2011 vs BM* 16.01 15.13 Growth A EUR 12.2311.10 12.18 8.67 Year to date -11.76 -15.54 -15.61 3.78 6.97 6.63 6.07 2.69 0.0 YEAR 2010 31.54 12.23 11.10 19.31 YEAR 2009 49.37 33.28 31.60 16.09 -11.76 YEAR 2008 -40.27 -41.49 -43.65 1.22-20.0 -15.54 -15.61 YEAR 2007 6.97 6.63 2.69 0.34 YEAR 2006 16.40 16.01 19.61 0.39-40.0 YEAR 2005 34.90 26.73 26.09 8.17 -40.27 -41.49 -43.65 YEAR 2004 6.07 8.67 12.18 -2.60 31.05. - 31.12.2003 19.53 15.13 17.75 4.40-60.0 Year to date YEAR 2010 YEAR 2009 YEAR 2008 YEAR 2007 YEAR 2006 YEAR 2005 YEAR 2004 31.05. - Backoffice Prices Net of Fees, IDS 31.12.2003 Allianz RCM Europe Equity Growth A EUR Benchmark* MSCI Europe *BM: S&P Europe LargeMidCap Growth Return Net since 01.08.2008 BM: S&P Citigroup PMI Europe Growth total ret. Since 31.05.2003Source: Pico, IDS, 31.07.2011. Past performance is no reliable indicator for future performance.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 30
  • 31. Allianz RCM Europe Equity Growth Outperforming since strategy inception - Europe Equity Growth Rep. Account since 31-5-03: 9.95% p. a.net of fees back office prices - MSCI Europe since 31-5-03: 4.32% p.a. - Europe Growth Benchmark: 4.56% p.a. Growth as a style: a positive outlook With a consistent active growth investment approach we currently find a lot of attractive investment ideas STRUCTURAL GROWTHSource: Pico, IDS, gross off fees, figures as per 30.09.2011. Past performance is no reliable indicator for performance.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 31
  • 32. Performance of positions initiated and closed year-to-datePerformance of Stocks Purchased and Sold: Allianz RCM Mark(E/DM) - Euro/Germany Base Currency : Euro/Deutsche Europe Equity Growth Average Month of Portfolio Portfolio Portfolio Full periodStocks bought Purchase Weight Return Contribution stock returnEdenred June 0.37 -0.53 0.031 16.46Spirax-Sarco Engineering February 0.42 7.63 0.021 2.47Stocks sold Month of SaleTecnicas Reunidas June 0.33 -23.16 -0.143 -36.21Vedanta Resources July 0.80 -49.07 -0.451 -49.09 Newly purchased stocks outperformed clearly those sold over the period year-to-dateSource: Wilshire, IDS, data as at 31.10.2011. Figures are approximates, closing prices gross of fees not including intra-day fluctuations or transaction costs. This illustration serves as an example and does not imply anyconclusions regarding future transactions.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 32
  • 33. Allianz RCM Europe Equity Growth – sector allocationGICS Sector %PF Weight %BM Weight Delta Relative Sector Allocation -12 -7 -2 4 9 14 19Industrials 26.89 11.46 15.44 Industrials 15.44Information Technology 11.26 3.48 7.79 Information Technology 7.79Consumer Discretionary 12.99 9.16 3.83 Consumer Discretionary 3.83Health Care 14.33 11.19 3.15Consumer Staples 21.81 20.68 1.13 Health Care 3.15Energy 3.51 7.69 -4.18 Consumer Staples 1.13Utilities 0.00 5.45 -5.45 Energy -4.18Materials 4.59 10.80 -6.21 Utilities -5.45Financials 4.61 11.91 -7.30Telecomm Services 0.00 8.17 -8.17 Materials -6.21 Financials -7.30Market Cap Split %PF Weight %BM Weight Telecomm Services -8.173bn <= MarketCap 81.48 97.431bn <= MarketCap < 3bn 16.97 2.24MarketCap < 1bn 1.54 0.32Source: IDS, Wilshire, 30.09.2011. Allianz RCM Europe Equity Growth versus S&P EuropeLargeMidCap Growth11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 33
  • 34. Allianz RCM Europe Equity Growth – positionsTop 10 Overweights %PF Weight %BM Weight %Overweight Top 10 Holdings %PF Weight %BM Weight %OverweightRECKITT BENCKISER GROUP 3.46 0.78 2.67 SAP AG 3.47 1.61 1.86CARLSBERG AS(*M*) 2.44 0.03 2.41 RECKITT BENCKISER GROUP 3.46 0.78 2.67INDITEX 2.84 0.63 2.21 BRITISH AMERICAN TOBACC 3.25 2.13 1.13LEGRAND SA 2.36 0.17 2.19 INDITEX 2.84 0.63 2.21ELEKTA 2.12 0.00 2.12 DANONE 2.83 1.40 1.43PRUDENTIAL 2.39 0.29 2.10 HENNES & MAURITZ 2.61 0.81 1.80SAP AG 3.47 1.61 1.86 SIEMENS AG 2.53 2.03 0.50LINDE AG 2.41 0.58 1.83 SABMILLER 2.48 0.81 1.67HENNES & MAURITZ 2.61 0.81 1.80 CARLSBERG AS 2.44 0.03 2.41SODEXO 1.96 0.23 1.73 LINDE AG 2.41 0.58 1.83Source: IDS, Wilshire, 30.09.2011. Allianz RCM Europe Equity Growth versus S&P EuropeLargeMidCap Growth11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 34
  • 35. Allianz RCM Europe Equity GrowthPerformance attribution vs. S&P Style index – year-to-date to 30.09.2011 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 ContributionInditex 2.6% 0.4% 2.2% 16.4% 61 bp Carlsberg As 3.4% 0.1% 3.3% -40.2% -88 bpRio Tinto 0.0% 2.8% -2.8% -34.6% 51 bp Vodafone Group 0.0% 2.9% -2.9% 3.9% -55 bpBnp Paribas 0.0% 2.0% -2.0% -34.4% 48 bp Sandvik Ab 2.2% 0.5% 1.8% -38.8% -50 bpShire 1.5% 0.4% 1.1% 30.3% 42 bp Nestle Sa 0.0% 3.0% -3.0% -2.8% -44 bpFresenius Medical Care 1.5% 0.2% 1.2% 19.5% 38 bp Hexagon Ab 1.9% 0.1% 1.8% -38.2% -43 bpUnicredit Spa 0.0% 0.9% -0.9% -47.1% 36 bp Unilever Plc 0.0% 2.0% -2.0% 5.4% -42 bpEssilor International 1.6% 0.3% 1.3% 13.7% 33 bp Outotec Oyj 1.3% 0.0% 1.3% -40.5% -41 bpBhp Billiton Plc 0.0% 2.3% -2.3% -30.0% 32 bp Glaxosmithkline 0.0% 1.6% -1.6% 11.8% -41 bpUbs Ag 0.0% 1.8% -1.8% -29.5% 32 bp Vedanta Resources 0.9% 0.1% 0.8% -49.1% -32 bpIngenico 1.5% 0.0% 1.5% 5.2% 30 bp Mothercare 0.6% 0.0% 0.6% -46.7% -25 bpSubtotal 8.7% 11.2% -2.5% — 403 bp Subtotal 10.4% 10.2% .2% — -462 bpPositive Active Contributors 293 1441 bp Negative Active Contributors 156 -948 bpOverw eighted 46 735 bp Overw eighted 18 -418 bpUnderw eighted 247 705 bp Underw eighted 138 -530 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 ContributionCarlsberg As 3.4% .1% 3.3% -40.2% -88 bp Nestle Sa — 3.0% -3.0% -2.8% -44 bpInditex 2.6% .4% 2.2% 16.4% 61 bp Vodafone Group — 2.9% -2.9% 3.9% -55 bpReckitt Benckiser Group 3.0% .7% 2.2% -3.8% 29 bp Rio Tinto — 2.8% -2.8% -34.6% 51 bpSap Ag 3.2% 1.0% 2.2% 2.0% 28 bp Bhp Billiton Plc — 2.3% -2.3% -30.0% 32 bpCompagnie Financiere Ri 2.5% .4% 2.1% -22.8% -13 bp Telefonica Sa — 2.0% -2.0% -11.3% -8 bpPrudential 2.4% .3% 2.1% -13.6% 2 bp Unilever Plc — 2.0% -2.0% 5.4% -42 bpLinde Ag 2.5% .4% 2.1% -9.6% 12 bp Bnp Paribas — 2.0% -2.0% -34.4% 48 bpSaipem 2.3% .4% 2.0% -26.6% -24 bp Ubs Ag — 1.8% -1.8% -29.5% 32 bpElekta 1.9% — 1.9% 0.0% 29 bp Glaxosmithkline — 1.6% -1.6% 11.8% -41 bpHexagon Ab 1.9% .1% 1.8% -38.2% -43 bp Anglo American — 1.5% -1.5% -32.4% 22 bpSubtotal 26.0% 3.9% 22.1% — -7 bp Subtotal — 21.9% -21.9% — -4 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 are approximates. Theofficial performance for funds subject to substantial cash flows or which trade in volatile daily market conditions will vary from these figures.Source: Wilshire, IDS, 30.09.2011.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 35
  • 36. 6 Appendix11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 36
  • 37. Biography Thorsten Winkelmann Facts Name Thorsten Winkelmann Designation/Division Portfolio Manager /Investment Style Leader European Equities Growth Asset Management Unit Allianz Global Investors / RCM Year of joining company/group 2001 Number of years with company/group 10 Years of experience in securities business/ 15 portfolio management Employment History 09/2001 - today Allianz Global Investors / RCM 01/2006 - today Portfolio Manager / Portfolio Management European Equities 09/2001 - 12/2005 Portfolio Management Balanced Portfolios 1996 - 2001 Deutsche Bank AG Brokerage-Department Part-time Employment Academic Qualification 2001 Diplom-Volkswirt (German university degree in economics), Rheinische Friedrich-Wilhelms-Universität Bonn, Germany11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 37
  • 38. Biography Robert Hofmann Facts Name Robert Hofmann Designation/Division Portfolio Manager/Portfolio Management Strategy - European Equities/Large Caps Asset Management Unit Allianz Global Investors Year of joining company/group 2005 Number of years with company/group 6 Years of experience in securities 6 business/portfolio management Employment History 01/2005 - today Allianz Global Investors Portfolio Manager/Portfolio Management Strategy - European Equities/Large Caps Academic Qualification 2004 Diplom-Kaufmann (German university degree in business administration), Universität Frankfurt, Germany11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 38
  • 39. Europe Equity Growth strategy RCM - EQUITY EUROPE GROWTH Period End Total Firm Composite Composite Composite % of FIRM Benchmark* No of Total Assets Gross Benchmark* Period Gross Dispersion assets Period (%) Portfolios Assets in GLOBAL in Return p.a. p.a. (%) Return(%) (%) GLOBAL Mio Mio (%) 2009 54.14 34.20 13 1,325.79 1.29 NA NA 1 Year 54.14 34.20 2008 -39.94 -41.43 11 768.03 0.32 1.3 57,172 2 Years -3.78 -11.34 2007 9.35 6.63 10 1,364.75 0.47 1.5 93,445 3 Years 0.41 -5.72 2006 18.75 16.01 6 1,284.01 NA 1.4 92,508 4 Years 4.71 -0.70 2005 37.52 26.72 2 1,055.55 NA 1.2 87,749 5 Years 10.57 4.26 2004 7.40 8.66 3 859.20 NA 1.0 90,430 6 Years 10.04 4.98 2003 18.66 13.49 3 983.86 NA 1.1 91,771 7 Years 11.23 6.16 2002 -38.36 -32.90 3 847.89 NA 0.9 98,091 8 Years 3.32 0.24 2001 -27.11 -15.54 3 1,845.63 NA 1.2 152,722 9 Years -0.61 -1.65 2000 -16.56 -2.19 5 3,153.16 NA 3.6 87,224 10 Years -2.33 -1.70RCM has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). For purposes of compliance with GIPS the ―firm‖ is defined as RCM ("RCM"), a global investmentadvisory organization, consisting of separate affiliated firms, which operates under the brand name RCM. The affiliated firms that comprise the Firm include, among others, RCM Europe (―RCM Europe‖). RCM Europepresents the RCM - EQUITY EUROPE GROWTH strategy in Europe. For the years ended 2007 and 2008 RCM has been verified by an independent verifier. Additional information regarding the firm‘s policies and proceduresfor calculating and reporting performance results is available upon request. To obtain a list and description of all of RCM‘s composites, or for a complete list of the firms that comprise RCM and their periods of verification,please call +49 69 263 - 12000 or write to RCM, Allianz Global Investors Kapitalanlagegesellschaft mbH, Mainzer Landstraße 11-13 , 60329 Frankfurt am Main. Total Firm assets for the period ending 31 December 2008were revised in November 2009 to reflect the actual discretionary and non-discretionary assets managed by the Firm.The RCM - EQUITY EUROPE GROWTH was set up in January 1999, with an inception date of March 1 1997, and contains all accounts managed by RCM Europe according to the RCM Global Investment Process, whichinvest in a broad range of European equities, following a growth investment style. The basis for investment decisions is the RCM fundamental macro economic and equity primary research. Decisions on sector allocation arebased on the macro economic input. The stock selection process is research-driven where the results of equity primary research are reflected in a performance-oriented voting of stocks and target prices. Risk control plays anintegral part in the investment process. The composite Benchmark is S&P EUROPE LARGEMIDCAP GROWTH RETURN GROSS IN EUR. In contrast to the benchmark, the portfolios, forming this composite, do containcash. The portfolios within this composite may and do invest in non-benchmark securities. Further information is available upon request. The benchmark was changed in January 2002 to reflect the underlying investmentstyle. Performance results and valuations are presented in EUR. In contrast to the benchmark, composite returns are net of non-reclaimable withholding taxes on dividends, interest and capital gains. Beginning July 1, 2009the repayable portion of the withholding tax is reported as a deferred asset. The resulting effect is considered to be immaterial. The returns are stated gross of management / advisory and custodial fees. Actual returns will bereduced by management / advisory fees and other expenses that may be incurred in the management of an account. Depending on the investment size, the standard fee scale for institutional clients starts at 70 bps, and issubject to a minimum fee. The dispersion of annual returns is measured by the standard deviation across equal-weighted account returns represented within the composite for the full year♦. ♦ Standard deviation is not considered statistically meaningful when there are fewer than five accounts in the composite during the period. Past performance is not a reliable indicator of future performance. You should not make any assumptions about the future performance based on this information. Investment results will vary depending on market conditions, exchange rate fluctuations, the composition of the portfolio of securities, trading expenses, etc. Investment results will vary among individual portfolios within the composite. There may be a difference in the exchange rate used for calculating benchmark returns and those used for valuation of the portfolios. The effect of these differences is deemed to be immaterial. These factors and possible differences in calculation methods should be considered when comparing composite results with those published by other investment information providers, investment advisers, investment vehicles and unmanaged indices. Results should also be considered relative to the risks associated with the investment objectives of the portfolios within the composite. All details and information contained in this report have been carefully investigated and checked by IDS GmbH – Analysis and Reporting Services (IDS), however IDS does not assume liability for the accuracy and/or completeness of the content.11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 39
  • 40. DisclaimerAllianz Allianz RCM Europe Equity Growth 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) organisedunder the laws of Luxembourg. Allianz Global Investors Fund qualifies as an undertaking for collective investments in transferable securities (‗UCITS‘) in accordance with the provisions of the EuropeanUnion (‗EU‘) Directive 2009/65/EC.Allianz RCM Europe Equity Growth may not be registered or authorised for public distribution in the country of residence of investors. Accordingly, it is the responsibility of investors to be aware of theapplicable laws and regulations of their country of residence in respect of financial promotion. Thus, the information contained in this document should not be construed as constitutive of an offer orsolicitation (i) by anyone to buy shares in Allianz RCM Europe Equity Growth in any jurisdiction in which such offer or solicitation would be unlawful or in which the person making such offer or solicitation isnot 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, Allianz RCM Europe Equity Growth is not availablefor 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, as amended, and, except in a transaction whichdoes 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), such shares may not be directly or indirectlyoffered 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 for shares of Allianz RCM Europe Equity Growth can only be made on the basis of the latest prospectus of Allianz Global Investors Fund and the key investor information document of AllianzRCM Europe Equity Growth, complemented by any local supplement to these prospectuses, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published),copies of which can be obtained in English and – where appropriate – in the respective local language, free of charge, from the management company, Allianz Global Investors Luxembourg S.A., as wellas from Allianz Global Investors Europe GmbH or electronically via www.allianzglobalinvestors.eu.As with all investment products, a fund‘s past performance is not necessarily a guide to future performance and the value of the shares of Allianz RCM Europe Equity Growth and any income from themmay fall as well as rise. On redemption of shares, investors may receive back an amount less than the original amount of their investments. The volatility of fund unit prices may be strongly increased. Theassets of Allianz RCM Europe Equity Growth may be denominated in a variety of currencies and therefore movements in the value of currencies may also affect the value of investors‘ holdings.Furthermore, the value of the shares of Allianz RCM Europe Equity Growth may be adversely affected by fluctuations in exchange rates between the investors‘ reference currencies and its base currency.Further information on the risks associated with investments in Allianz RCM Europe Equity Growth -those briefly described above as well as others, if applicable- can be found in the prospectuses ofAllianz Global Investors Fund.All performance data in respect of Allianz RCM Europe Equity Growth until its launch date (16.10.2006) relates to another fund with an identical investment objective and whose assets are also managedby Allianz Global Investors Kapitalanlagegesellschaft mbH, namely Allianz RCM Wachstum Europa, formerly named Allianz-dit Wachstum Europa. The latter, which is an open-ended unit trust organisedunder the laws of Germany, was launched on 13.01.1997. This does not imply that Allianz RCM Europe Equity Growth will enjoy similar performance in the future.This document is marketing material. This document has been issued by Allianz Global Investors Europe GmbH, a subsidiary of Allianz Global Investors AG (parent company of the Allianz GlobalInvestors Group). Allianz Global Investors Europe GmbH 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 Investors Europe GmbH is licensed as a provider of financial services (Finanzdienstleistungsinstitut); for the conduct of its business activities, Allianz GlobalInvestors Europe GmbH is subject to the supervision of the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). This document is meant to provide a broad overview for discussion and/orinformation purposes. Furthermore, this document was not prepared 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 its affiliated companies at the time of publication. The duplication, publication, or transmission of the contents of this document to unauthorisedpersons, irrespective of the form, is not permitted. While some of the data provided herein is derived from various published and unpublished sources, and is assumed to be correct and reliable, it has notbeen independently verified. Therefore, Allianz Global Investors Europe GmbH does not guarantee the accuracy or completeness of such data/information and will not accept any liability for any direct orconsequential losses arising from its use. The investment opportunities described herein are not guaranteed by Allianz Global Investors Europe GmbH or affiliated companies within the Allianz GlobalInvestors Group.Internet: www.allianzglobalinvestors.eu11-11030P-EURWS041111© Copyright Allianz Global Investors AG 2011 - October 2011 40
  • 41. Thank you