Allianz 2011-04-04 european-equitydividend_citywire_1_agi_e


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Allianz 2011-04-04 european-equitydividend_citywire_1_agi_e

  1. 1. Allianz RCM European Equity DividendApril 2011Information for fund distributors and institutional investors.Not for circulation to private investors.
  2. 2. The Case for Equity DividendsReturn: Dividend yields are currently higher than bond yields On top of the dividend flow, capital appreciation is targetedStability: Dividend paying companies tend to be mature, well-established companies A high dividend payment can provide a stabilising factor for the stock price Dividend payments have a disciplining effect on company management Dividend growth has been much less volatile than earnings growth historicallyCountercyclical Strategy: High dividend yields historically signal attractive entry points: buy when nobody else wants to buy A decreasing dividend yield provides a sell discipline after stock price appreciationSource: RCM; RCM is a company of Allianz Global Investors. 2
  3. 3. The Case for Equity DividendsThe Power of Reinvesting DividendsStandard & Poor’s (S&P) 500 Index 1989-2010 800 700 600 500 400 300 200 100 0 Dec. Aug. Mar. Oct. Jun. Jan. Aug. Mar. Nov. Jun. Jan. Aug. Apr. Nov. 89 91 93 94 96 98 99 01 02 04 06 07 09 10 S&P 500 Total Return (EUR) USA S&P 500 (P.I.) (EUR)Source: RCM; data as per 30/11/2010. Past performance does not permit any forecast for the future 3
  4. 4. The Case for Equity DividendsDividends Are an Attractive Source of Income 6.50 6.50 6.00 6.00 5.50 5.50 5.00 5.00 4.50 4.50 4.00 4.00 3.50 3.50 3.00 3.00 2.50 2.50 2.00 2.00 1.50 1.50 99 00 01 02 03 04 05 06 07 08 09 10 Dividendenrendit E e uropa 10-j. BundesanleihenPast performance does not permit any forecast for the future.Source: Datastream; data as per 7/1/2011 Dividends remain attractive versus bond yields 4
  5. 5. The Case for Equity DividendsDividends Are an Attractive Source of Income Bond yields are likely to stay low European Blue Chip companies currently offer extremely attractive dividend yields Solid companies unlikely to cut dividends Current Dividend Yields Current Bond Yields France Telecom Vivendi 8.8 % 7.7 % EUR/ Pfand- Euribor 1 brief year 1 year 0.90 % Telefo- Bolsas y 1.44 % Seadrill nica Mercado 8.3 % 7.5 % 7.5 %Past performance does not permit any forecast for the future.Source: RCM, Handelsblatt; data as per January 2011; Pfandbrief = German covered bond 5
  6. 6. Investment Objective The fund aims to invest in high quality European companies with proven dividend records, backed by strong and stable cash flows It aims to offer investors a high and sustainable dividend income, with the prospect of long-term capital gains Rigorous and transparent investment process, based upon in-house fundamental research at RCM Run by Neil Dwane and Jörg de Vries-Hippen (Chief Investment Officers) 6
  7. 7. Unique Portfolio Construction:Integration of Dividend Estimate and Company Outlook 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 target: dividend yield > 125 % of average dividend yield of index1 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 stability1For this purpose, the average dividend yield of the index adjusted for market upheaval is taken. Buy threshold based on RCM’s estimates on specific stocks which are subject to the latter capabilities toassess the companies correctly. 7
  8. 8. Focus on Safety of Dividends In the current environment, active management is key RCM’s fundamental research team analyses the probability that companies pay the expected dividendsPre-screening: Companies with dividend yield above government bond yieldRCM safety check looking at (but not exclusively): Earnings and cash flow coverage on Focus on Piotroski’s scoring system Focus nd Credit rating Dividend Divide Distribution capacity as additional control Safety Safety Maximum cash flow Impairment risk Dividend growthDividend safety: High and stable income 8
  9. 9. Allianz RCM European Equity DividendStock Example: SeadrillSeadrill is a leading offshore deepwater drilling company. The company operates a fleet of 48 units for operations in shallow to ultra-deepwater areas in harsh environment and benign environments, Semi-submersibles, deepwater drillships, jack-ups, semi-tender rigsand tender rigs. The focus of the company is on modern state-of-the-art offshore drilling units with the main focus on deepwateroperations. Seadrill has some 7,500 skilled and highly competent employees, representing some 50 nationalities, operating in 15countries on five continents. Dividend case: Seadrill has a secure dividend with very high yield, and continues to pay down debt at the same time The company has a clear focus on returning cash that is not used for investments While two of Seadrill’s deepwater rig contracts run out ahead of 2012, the majority runs longer. Thus, dayrates on average look safe medium term, although the next two contracts may need to be at lower rates in order to maintain high utilization Additional upside potential for the dividend through likely disposal of a subsidiary We bought the stock at attractive levels in November 2009, when the company announced a higher than expected dividendSource: Seadrill 9
  10. 10. Focus on Capital Protection Fund is allowed to hold temporarily up to 20 % cash according to sales prospectus. Cash will be used as instrument to protect capital. Fund is allowed to hedge equity exposure. Exposure in European equities: min 75 %. Target of the fund manager is to handle capital market risk and concentrate on high dividend yield. Target is to reach 125 % of dividend yield of the MSCI Europe. 10
  11. 11. Allianz RCM European Equity DividendPerformance since inception to 28.02.201135.0 32.06 Performance History 29.97 Allianz RCM European Equity Dividend AT EUR30.0 No Benchmark (EUR)25.0 23.00 Allianz RCM Performance up to European MSCI Europe Active Return 28.02.201120.0 19.48 Equity 1 Month 2.83 2.52 0.3115.0 3 Months 11.31 9.67 1.64 11.31 Year to date 5.27 4.27 1.00 9.6710.0 1 Year 23.00 19.48 3.52 5.27 Since 31.03.2009 ann. 29.97 32.06 -2.09 5.0 4.27 2.83 Closing Prices Gross of Fees, IDS 2.52 The fund is not managed against a benchmark. MSCI Europe is shown 0.0 for informal reasons. 1 Month 3 Months Year to date 1 Year Since 31.03.2009 ann. Allianz RCM European Equity Dividend AT EUR MSCI EuropeSource: Wilshire, IDS, 28.02.2011 11
  12. 12. European Equity TeamInput from All Sources of RCM’s Global Equity Platform Regional European Equity Team Portfolio Global Research Neil Dwane, Jörg de Vries-Hippen, Management Chief Investment Officer Europe Chief Investment Officer European Equtities Platform Teams Solveig Ströer, Portfolio Management Jörg de Vries-Hippen Investment Style Teams Absolute Macroeconomic Value / Return/ Small Mid GrassrootsSM Research Growth High Alpha Capitali- Research Income Uncon- zation strained Proprietary Sell-side Screening Tools ResearchSource: RCM; data as per December 2010 RCM’s global equity platform empowers the idea generation. Over two thirds of the European universe covered in house. 12
  13. 13. ppendix 13
  15. 15. Allianz RCM European Equity DividendTop 10 Holdings (%) Fund weight DividendStock Sector in % estimated yldRoyal Dutch Shell PLC-A SHS Energy 4.13 4.9Telefonica S.A. Telecom 4.09 8.5Astrazeneca PLC Consumer Staples 3.88 5.4France Telecom SA Telecom 3.83 8.8ENEL SPA Telecom 3.71 6.8SEADRILL Energy 3.60 8.3British American Tobacco PLC Consumer Staples 3.50 5.4Oesterreichische Post AG Industrials 3.35 6.8AVIVA PLC Financials 3.09 6.2Zurich Financial Services AG Financials 3.02 6.4Total 36.20This is for guidance only and not indicative of future allocation.The fund unit price may be subject to sharply increased volatility.Source: Allianz Global Investors; data as per 31/01/2011 15
  16. 16. Allianz RCM European Equity Dividend - Performance attributionvs MSCI Europe – 12 months through 28.02.2011 Active GICS Subindustry Attribution 2.25% Active MSCI Country Attribution 2.25% Active Active Port Weight Total Return Contribution Port Weight Total Return Contribution Cash 6.5% 2.13% -0.20% Cash 6.5% 2.13% -0.20% Equity 93.5% 24.12% 2.45% Equity 93.5% 24.12% 2.46% Industry Strategy (Allocation) -1.37% Country Strategy (Allocation) -0.03% Stock Selection (Selection) 3.83% Stock Selection (Selection) 2.54% Currency Impact -0.05% Sector Strategy Country Strategy Industry Active Industry Excess Industry Country Active Country Excess Country Weight Return Strategy Weight Return Strategy Top 3 Industry that HELPED Top 3 Country that HELPED Health Care -2.76% -10.43% 0.48% Switzerland -3.84% -3.20% 0.64% Financials 0.59% -5.77% 0.35% Norway 3.25% 12.47% 0.43% Telecomm Services 7.79% 2.00% 0.31% Greece -0.32% -41.76% 0.24% Bottom 3 Industry that HURT Bottom 3 Country that HURT Utilities 6.07% -11.04% -0.91% Germany -4.08% 10.30% -0.55% Materials -9.16% 11.35% -0.85% Spain 5.27% -11.11% -0.36% Consumer Discretionary -3.49% 20.59% -0.81% Sweden -4.67% 16.78% -0.31% Sector Stock Selection Country Stock Selection Average Industry Industry Active Stock Average Country Country Active Stock Weight Return Selection Weight Return Selection Top 3 Industry that HELPED Top 3 Country that HELPED Financials 23.47% 7.25% 1.61% United Kingdom 37.05% 7.50% 2.70% Consumer Staples 7.36% 20.89% 1.52% Norway 4.47% 41.87% 1.39% Energy 12.80% 12.48% 1.44% Finland 0.74% 55.59% 0.91% Bottom 3 Industry that HURT Bottom 3 Country that HURT Consumer Discretionary 4.76% -48.63% -2.32% Germany 8.30% -35.60% -3.50% Telecomm Services 14.55% -8.67% -1.28% France 11.75% -10.72% -1.25% Austria 0.76% -26.52% -0.39%*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.Source: Wilshire, IDS, 28.02.2011. 16
  17. 17. Allianz RCM European Equity Dividend - Performance attributionvs MSCI Europe – 12 months through 28.02.2011 Best Average Weight Performance Worst Average Weight Performance Active Contributors (% of Total) Total Active Active Contributors (% of Total) Total Active Name Port Bmk Diff Return Contribution Name Port Bmk Diff Return Contribution Seadrill Ltd 3.7% 0.1% 3.6% 80.3% 201 bp Bijou Brigitte 2.3% 0.0% 2.3% -21.9% -124 bp Arriva 0.5% 0.0% 0.5% 58.6% 166 bp France Telecom 4.4% 0.6% 3.8% 1.6% -60 bp Upm-Kymmene Corp 0.7% 0.1% 0.6% 63.7% 88 bp Siemens Ag 0.0% 1.3% -1.3% 59.4% -45 bp Tate & Lyle 2.2% 0.0% 2.2% 47.8% 72 bp Banco Santander Sa 3.2% 1.5% 1.6% -0.3% -33 bp Aviva 2.6% 0.3% 2.3% 35.1% 61 bp Muenchener Rueckversic 3.1% 0.4% 2.6% 12.1% -33 bp Hays Plc 3.8% 0.0% 3.8% 33.7% 53 bp Oesterreichische Post A 0.8% 0.0% 0.8% -1.6% -32 bp Balfour Beatty 1.0% 0.0% 1.0% 39.9% 45 bp Bp 1.2% 2.1% -0.9% -22.5% -31 bp Nokia Oyj 0.0% 0.6% -0.6% -33.5% 43 bp Novo-Nordisk As 0.0% 0.6% -0.6% 79.0% -29 bp Mapfre Sa 0.3% 0.0% 0.3% 17.3% 39 bp Daimler Ag 0.0% 0.8% -0.8% 66.5% -29 bp Hsbc Hldgs 1.0% 2.7% -1.8% 3.8% 39 bp Gdf Suez 1.5% 0.7% 0.8% -0.4% -27 bp Subtotal 15.8% 3.9% 11.9% — 807 bp Subtotal 16.3% 8.0% 8.3% — -442 bp Positive Active Contributors 251 1593 bp Negative Active Contributors 245 -1347 bp Overw eighted 29 988 bp Overw eighted 23 -516 bp Underw eighted 222 605 bp Underw eighted 222 -831 bp Biggest Average Weight Performance Biggest Average Weight Performance Overweights (% of Total) Total Active Underweights (% of Total) Total Active Name Port Bmk Diff Return Contribution Name Port Bmk Diff Return Contribution Hays Plc 3.8% — 3.8% 33.7% 53 bp Nestle Sa — 2.7% -2.7% 15.7% 13 bp France Telecom 4.4% .6% 3.8% 1.6% -60 bp Hsbc Hldgs 1.0% 2.7% -1.8% 3.8% 39 bp Seadrill Ltd 3.7% .1% 3.6% 80.3% 201 bp Novartis Ag — 1.7% -1.7% 7.4% 24 bp Rsa Insurance Group Plc 3.5% .1% 3.4% 22.8% 5 bp Siemens Ag — 1.3% -1.3% 59.4% -45 bp British American Tobacc 4.4% 1.1% 3.3% 22.7% 5 bp Unilever Nv — 1.3% -1.3% 3.0% 24 bp Bolsas Y Mercados 3.1% — 3.1% 26.2% 8 bp Rio Tinto — 1.3% -1.3% 36.5% -21 bp Muenchener Rueckversic 3.1% .4% 2.6% 12.1% -33 bp Bhp Billiton Plc — 1.1% -1.1% 32.1% -13 bp Enel 3.1% .5% 2.6% 15.5% 9 bp Bnp Paribas — 1.0% -1.0% 9.9% 11 bp Aviva 2.6% .3% 2.3% 35.1% 61 bp Bg Group — .9% -.9% 39.8% -19 bp Bijou Brigitte 2.3% — 2.3% -21.9% -124 bp Basf Se — .9% -.9% 51.8% -26 bp Subtotal 34.1% 3.1% 31.0% — 126 bp Subtotal 1.0% 15.0% -14.1% — -14 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.Source: Wilshire, IDS, 28.02.2011. 17
  18. 18. Allianz RCM European Equity DividendSector allocation vs MSCI Europe (as at 31.12.2010) Relative Sector AllocationGICS Sector %PF Weight %BM Weight Delta -15 -10 -5 0 5 10 Telecom m Services 7.54Telecomm Services 14.08 6.54 7.54Utilities 10.37 5.45 4.93 Utilities 4.93Financials 25.85 22.61 3.23 Financials 3.23Consumer Discretionary 10.65 8.39 2.26 Consum er Discretionary 2.26Health Care 9.93 9.37 0.56 Health Care 0.56Industrials 11.16 11.25 -0.09Information Technology 1.97 3.05 -1.08 Industrials -0.09Energy 8.59 11.39 -2.81 Inform ation Technology -1.08Consumer Staples 7.63 11.57 -3.94 Energy -2.81Materials -0.23 10.38 -10.60 Consum er Staples -3.94 %PF Weight %BM Weight Materials -10.60Market Cap Split3bn <= MarketCap 79.35 98.001bn <= MarketCap < 3bn 16.73 2.00MarketCap < 1bn 3.92 0.00Source: IDS, 28.02.2011. The fund has no benchmark. The MSCIEurope is shown for informal reasons. 18
  19. 19. Allianz RCM European Equity DividendTop holdings vs MSCI Europe (as at 2802.2011)Top 10 Overweights %PF Weight %BM Weight %Overweight Top 10 Holdings %PF Weight %BM Weight %OverweightMAPFRE SA 4.61 0.04 4.57 MAPFRE SA 4.61 0.04 4.57KONINKLIJKE KPN NV 4.15 0.34 3.81 BRITISH AMERICAN TOBACC(*D* 4.44 1.06 3.38MARINE HARVEST ASA 3.38 0.00 3.38 KONINKLIJKE KPN NV 4.15 0.34 3.81OESTERREICHISCHE POST A 3.36 0.00 3.36 TELEFONICA SA(*D*) 4.15 1.38 2.76ENEL(*D*) 3.96 0.52 3.44 ROYAL DUTCH SHELL(*MD*) 4.14 2.97 1.18BRITISH AMERICAN TOBACC(*D* 4.44 1.06 3.38 ROCHE HOLDINGS AG 4.05 1.40 2.64HAYS PLC 3.12 0.00 3.12 ENEL(*D*) 3.96 0.52 3.44AVIVA(*D*) 3.36 0.28 3.08 ASTRAZENECA(*D*) 3.92 0.91 3.01BOLSAS Y MERCADOS 2.87 0.00 2.87 MARINE HARVEST ASA 3.38 0.00 3.38ASTRAZENECA(*D*) 3.92 0.91 3.01 AVIVA(*D*) 3.36 0.28 3.08Source: IDS, 28.02.2011 19
  20. 20. Bo ok Style Tilt™ Di To P r -4.0 0.0 2.0 4.0 6.0 8.0 v id e n ic e Ea d Y (I) rn i -2.0 -1.3 ing eld s ( I) C Yie 7.0 Data as at 28.02.2011 flo ld w ( Yi I) FC eld Sa F Y (I) l e s ie l to d ( Value EB Pr I) 1.6 1.8 1.4 ITD ice A (I) Rt to P n ri Ea on ce rn Eq ing ui 0.7 1.2 s G ty Allianz RCM Europe Equity Dividend, vs MSCI Europe 2.1 Inc row o m th 0.6 Sa e/Sa le s le s IB Gro 1.9 IB ES 1 wth ES Style Factors 2M 0.5 Su Sal th sta es Gr in 1 2 -1.4 ab m l G Growth Lo e Gr r -2.0 g M ow ar th M o ket -0.8 m Ca e p Allianz RCM European Equity Dividend Mo ntum -2.2 m Ca en ST rb t -0.3 on um F o MT ot pr int -1.2 -0.7 Style Skyline against MSCI Europe 28.02.201120
  21. 21. Lead Manager BiographiesNeil Dwane Jörg de Vries-Hippen Solveig StröerCIO Europe CIO European Equities European EquitiesNeil is based in Frankfurt and is responsible Jörg is an Investment Style Leader for the Solveig Ströer joined the High Alpha Team infor all portfolio management, research and Core European strategy and is portfolio 2009, and works primarily on the European Equitytrading activities in Frankfurt and London. manager of European Equities Core Dividend/Income strategies. Her country focus isNeil is a member of the Global RCM products. He covers the Swiss equity market Italy. Previously, she worked with the European Mid & Small Caps Team, after having completedExecutive Committee and is Chairperson of and has run the Swiss-Equityfunds since the RCM Global Graduate Program in early 2008.the European Equity Management Group. 1995. Jörg joined the Company in 1992. As a graduate trainee, she had assignments withNeil joined RCM in 2001 as Head of UK and From 2003 he took over the Team Head of the European Multi Assets Team, the EuropeanEuropean Equity Management from JP the European Large Caps in Frankfurt. Since Mid & Small Caps Team, the UK Equities Team inMorgan Investment Management where he 2007 he has been the Co-CIO of European the London office and the European Financialshad been a UK and European specialist equities, the joint European Equities Fund Research Team in Frankfurt. Solveig obtained anportfolio manager since 1996. He began his Management group in London and Frankfurt. MBA degree from the WHU Otto Beisheim Schoolinvestment career in 1988 with Kleinwort He graduated with a masters degree in of Management in Vallendar, specializing inBenson Investment Management as an business administration from the University of Finance and Leadership. Her work experience includes positions at The Boston Consulting Groupanalyst. Neil holds a BA in Classics from Mannheim in 1993. Jörg also holds the and MLP AG. Solveig also holds an MScEconDurham University and is a member of the DVFA/CIIA designation. degree in International Politics from the UniversityInstitute of Chartered Accountants of Wales in Aberystwyth, as well as a Bachelor of Arts in Public Relations from the University of Southern California in Los Angeles. 21
  22. 22. Allianz RCM European Equity Dividend - AT - EURPerformance since Inception1180 Annual Allianz RCM European Equity Performance (%) Dividend - AT - EUR cum. p.a.160 1 Year 16.90 16.90 Annual Performance (%) Allianz RCM European Equity Net asset value140 Dividend - AT - EUR in mn. EUR 2010 12.82 12.09120100 31/3/09 30/6/09 30/9/09 31/12/09 31/3/10 30/6/10 30/9/10 31/12/10 Fund (base value = 100)1 Calculated at the net asset value, excl. front-end load, distributions reinvested. Calculation according to BVI method (German Investment and Asset Management Association). Past performance does not permit any forecast for the future. Any front-end loads (for this fund currently 5,00 %) reduce the capital employed and the performance. The fund unit price may be subject to sharply increased volatility.TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year: 1,83 %.Source: Allianz Global Investors; data as per 31/01/2011 22
  23. 23. Dividends Can Grow, Coupons Don‘tInterest versus Dividend Income:If you had invested EUR 10,000 in 1991 in money market instruments or European equitiesyou could have withdrawn the following current income each year 1,304 €140012001000 800 600 400 200 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Interest Dividends 402 €Source: Datastream, own calculations based on MSCI Europe Index and 12month Euro-deposits Libor 23
  24. 24. Global Research Team Financial Telecom / Sustainability Special GrassrootsSMAnalysts Consumer Services Health Care Industrials Technology Media Research Situations Research TotalEurope 4 5 4 9 2 3 2 5 2 36US 3 2 4 3 5 2 0 0 2 21Asia 2 3 1 3 2 1 0 0 1 13PacificTotal 9 10 9 15 9 6 2 5 5 70 An average of 13 years industry experience; six 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 with GrassrootsSM ResearchSource: RCM; data as per 31/12/2010 The cornerstone of the investment process – generating information advantage 24
  25. 25. Allianz RCM European Equity Dividend Current Country Breakdown (%) Current Sector Breakdown (%) UK Financials 34.8 25.9 Spain Industrials 14.0 14.1 France Telecom. Services 11.9 12.4 Switzerland Utilities 10.7 11.4 Italy Energy 7.3 10.4 Norway Health Care 6.5 9.0 Consumer Germany 4.2 Discretionary 7.5 Austria Consumer Staples 3.4 7.3 Information Netherlands 2.9 Technology 2.1 Others 4.3 0 10 20 30 40 0 10 20 30 FundThis is for guidance only and not indicative of future allocation.The fund unit price may be subject to sharply increased volatility.Source: Allianz Global Investors; data as per 31/01/2011 25
  26. 26. 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 26
  27. 27. Allianz RCM European Equity DividendOpportunities and Risks 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 Broad diversification across numerous securities possible Possible extra returns through single security analysis Dividend stocks may underperform at times 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 31/01/2011 27
  28. 28. Allianz RCM European Equity DividendOverviewShare class A - EUR AT - EUR CT - EUR IT - EURBe nchmark -Umbre lla Allianz Global Investors FundM anage me nt company AllianzGI Luxembourg S.A .Sub-manage r Allianz Global Investors KAG, FrankfurtCustodian bank State Street Bank Luxem bourg S .A.Risk class 4 : risk awareFund manage r Jörg de Vries-Hippen & Neil DwaneFinancial ye ar e nd 30/9/Ne t asse ts 88.33 m n. EURISIN / G e rman se curity no. LU0414045582 / A0R F5F LU0414045822 / A0R F5H LU0414046390 / A0R F5K LU0414047281 / A0R F5UBloombe rg ARCMEAE LX ARCM EA T LX A RCME CT LX ARCM EIT LXRe giste re d for sale in DE, FR, GR, HK, LU, MC, NL, PL, CH, DE, FR, GR, HK, IT, LU, MC, NL, PL, CH, DE, GR, HK, IT, LU, MC, NL, PL, CH, SG, DE, GR, HK, LU, MC, NL, PL, CH, SG, SG, A T SG, ES, HU, A T ES, HU, A T ES, HU, A TFund curre ncy EUR EUR E UR EURDistribution distributing accum ulation accumulation accum ulationM inimum inv e stme nt - - - 1,000,000 EUR(prospe ctus)Launch date 10/01/2011 10/03/2009 10/03/2009 10/03/2009Initial issue price 105.00 EUR 105.00 EUR 103.00 E UR 1.000.00 E URShare class v olume 3.31 m n.EUR 23.94 mn.EUR 2.02 mn.EUR 59.07 m n.E URFront-e nd load (%) 5.00 5.00 currently 3.00 (max. 5.00) currently 0.00 (max. 2.00)M anage me nt fe e (% p.a.) currently 1.50 (max. 2.50) currently 1.50 (m ax. 2.50) currently 1.50 (max. 2.50) currently 0.75 (max. 1.25)Distribution fe e (% p.a.) 0.75 1 1 1T ER (%) 1.83 2.59 0.961 TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year.Source: Allianz Global Investors; data as per 31/01/2011 28
  29. 29. 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 underthe 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 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 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 or solicitation (i) by anyone to buy shares in Allianz RCM European Equity Dividend in any jurisdiction inwhich such offer or solicitation would be unlawful or in which the 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 inthe jurisdiction in which this person resides.Specifically, Allianz RCM 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 USSecurities Act of 1933, as amended, 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 ofthe States of the USA), such shares 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 investorin the USA.Subscriptions for shares 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 byany 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, free of charge,from the management company, 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 future performance and the value of the shares of Allianz RCM European Equity Dividend and any income fromthem may fall as well as rise. On redemption of shares, investors may receive back an amount less than 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 may also 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 the investors’ reference currencies and its basecurrency.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 ofAllianz Global Investors Fund.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 Europe GmbH is a limited liability company incorporated under the laws of the Federal Republic of Germany with its registered office at Seidlstrasse 24-24a, D-80335 Munich.Allianz Global Investors Europe GmbH is licensed as a provider of financial services (Finanzdienstleistungsinstitut); for the conduct of its business activities, Allianz Global Investors Europe GmbH issubject to the supervision of the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).This document is meant to provide a broad overview for discussion and/or information 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 unauthorised persons, 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 not been independently verified. Therefore, AllianzGlobal Investors Europe 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 investment opportunities described herein are not guaranteed by Allianz Global Investors Europe GmbH or affiliated companies within the Allianz Group.Internet:, E-Mail: 29
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