allianz 2011-04-04 european-equitydividend_citywire_1_agi_e
DESCRIPTION
TRANSCRIPT
April 2011
Information for fund distributors and institutional investors. Not for circulation to private investors.
Allianz RCM European Equity Dividend
2
Return:Dividend yields are currently higher than bond yieldsOn top of the dividend flow, capital appreciation is targeted
Stability:Dividend paying companies tend to be mature, well-established companiesA high dividend payment can provide a stabilising factor for the stock priceDividend payments have a disciplining effect on company managementDividend growth has been much less volatile than earnings growth historically
Countercyclical Strategy:High dividend yields historically signal attractive entry points: buy when nobody else wants to buyA decreasing dividend yield provides a sell discipline after stock price appreciation
The Case for Equity Dividends
Source: RCM; RCM is a company of Allianz Global Investors.
3
The Case for Equity Dividends The Power of Reinvesting Dividends
Source: RCM; data as per 30/11/2010. Past performance does not permit any forecast for the future
Standard & Poor’s (S&P) 500 Index 1989-2010
0
100
200
300
400
500
600
700
800
Dec.89
Aug.91
Mar.93
Oct.94
Jun.96
Jan.98
Aug.99
Mar.01
Nov.02
Jun.04
Jan.06
Aug.07
Apr.09
Nov.10
S&P 500 Total Return (EUR) USA S&P 500 (P.I.) (EUR)
4
The Case for Equity Dividends Dividends Are an Attractive Source of Income
Past performance does not permit any forecast for the future.Source: Datastream; data as per 7/1/2011
Dividends remain attractive versus bond yields
99 00 01 02 03 04 05 06 07 08 09 10
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
Dividendenrendite Europa10-j. Bundesanleihen
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
5
Bond yields are likely to stay low
European Blue Chip companies currently offer extremely attractive dividend yields
Solid companies unlikely to cut dividends
Source: RCM, Handelsblatt; data as per January 2011; Pfandbrief = German covered bondPast performance does not permit any forecast for the future.
The Case for Equity Dividends Dividends Are an Attractive Source of Income
Current Dividend Yields
France Telecom
8.8 %
Current Bond Yields
Vivendi7.7 %
Bolsas y Mercado
7.5 %
Telefo-nica7.5 %
Seadrill8.3 %
Euribor 1 year
0.90 %
EUR/ Pfand-brief
1 year1.44 %
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)
7
Unique Portfolio Construction: Integration of Dividend Estimate and Company Outlook
1For 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 to assess the companies correctly.
Fundamental equity analysis Expected dividend yieldIntegration
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 stability
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 dividends
Pre-screening: Companies with dividend yield above government bond yield
RCM safety check looking at (but not exclusively):Earnings and cash flow coverageCredit ratingDistribution capacityMaximum cash flowImpairment riskDividend growth
Dividend safety: High and stable income
Piotroski’s scoring system as additional control
Focus on
Dividend
Safety
Focus on
Dividend
Safety
9
Allianz RCM European Equity Dividend Stock Example: Seadrill
Seadrill 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 rigs and tender rigs. The focus of the company is on modern state-of-the-art offshore drilling units with the main focus on deepwater operations. Seadrill has some 7,500 skilled and highly competent employees, representing some 50 nationalities, operating in 15 countries 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 usedfor 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 dividend
Source: Seadrill
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.
11
Allianz RCM European Equity DividendPerformance since inception to 28.02.2011
Source: Wilshire, IDS, 28.02.2011
Performance HistoryAllianz RCM European Equity Dividend AT EUR
Performance up to 28.02.2011
Allianz RCM European
Equity MSCI Europe Active Return
1 Month 2.83 2.52 0.31
3 Months 11.31 9.67 1.64
Year to date 5.27 4.27 1.00
1 Year 23.00 19.48 3.52
Since 31.03.2009 ann. 29.97 32.06 -2.09
Closing Prices Gross of Fees, IDS
No Benchmark (EUR)
The fund is not managed against a benchmark. MSCI Europe is shown for informal reasons.
2.83
11.31
5.27
23.00
29.97
2.52
9.67
4.27
19.48
32.06
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1 Month 3 Months Year to date 1 Year Since 31.03.2009 ann.
Allianz RCM European Equity Dividend AT EUR MSCI Europe
12
European Equity TeamInput from All Sources of RCM’s Global Equity Platform
GrassrootsSM
Research
Regional PortfolioManagement Teams
MacroeconomicResearch
Global Research Platform
Proprietary Screening Tools
Sell-side Research
Jörg de Vries-Hippen, Chief Investment Officer European Equtities
Neil Dwane,Chief Investment Officer Europe
European Equity Team
Jörg de Vries-Hippen
Growth
Investment Style Teams
Value / Income
Small Mid Capitali-zation
Absolute Return/ Uncon-strained
High Alpha
RCM’s global equity platform empowers the idea generation.Over two thirds of the European universe covered in house.
Source: RCM; data as per December 2010
Solveig Ströer,Portfolio Management
13
ppendix
14
0
2
4
6
8
10
12
ABER
TISAS
TRAZ
ENEC
A PL
CAT
LANT
IA S
PAAV
IVA
PLC
BALF
OUR
BEAT
TYBA
LOIS
E HO
L-REG
BANC
O SA
NTAN
DER
BANQ
UE C
ANTO
-REG
BIJO
U BR
IGITT
EBO
LSAS
Y M
ERCA
DOBR
IT AM
ER TO
BACC ED
PEN
EL S
PAEV
S BR
OADC
AST
EQFIR
STGR
OUP
PLC
FRAN
CE T
ELEC
OMGL
AXOS
MITH
KLIN
EHA
YS P
LCHS
BC H
LDGS
PLC
KPN
(KON
IN) N
VM6
-MET
ROPO
LE T
ELMA
PFRE
SA
MARI
NE H
ARVE
STMU
ENCH
ENER
RUE
-RNA
TIONA
L GR
ID P
LOE
STER
REIC
H.PO
STRO
CHE
HLDG
-GEN
USRO
YAL D
UTCH
SH-
ARS
A IN
SURA
NCE
GSC
OTTIS
H &
SOUT
HSE
ADRI
LL LT
DSN
AM R
ETE
GAS
TATE
& LY
LETE
LEFO
NICA
TOTA
L SA
VIVE
NDI
VODA
FONE
GRO
UPZU
RICH
FIN
L SE
R
Allianz RCM European Equity Dividend Estimated Dividend Yields
Total portfolio
average: 5,7
Source: RCM; data as per 31/1/2011. The allocation shown is merely an example and is not an indication of the future allocation of the fund.
Every stock in the portfolio is a dividend stock
15
Allianz RCM European Equity Dividend Top 10 Holdings (%)
Source: Allianz Global Investors; data as per 31/01/2011The fund unit price may be subject to sharply increased volatility.This is for guidance only and not indicative of future allocation.
Stock Sector Fund weight in %
Dividend estimated yld
Royal 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 36.20
16
Allianz RCM European Equity Dividend - Performance attributionvs MSCI Europe – 12 months through 28.02.2011
Source: Wilshire, IDS, 28.02.2011.
*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. The official performance for funds subject to substantial cash flows or which trade in volatile daily market conditions will vary from these figures.
Active GICS Subindustry Attribution Active MSCI Country Attribution
Cash Cash
Equity EquityIndustry Strategy (Allocation) Country Strategy (Allocation)Stock Selection (Selection) Stock Selection (Selection)
Currency Impact
Sector Strategy Country Strategy
Top 3 Industry that HELPED Top 3 Country that HELPEDHealth Care SwitzerlandFinancials NorwayTelecomm Services Greece
Bottom 3 Industry that HURT Bottom 3 Country that HURTUtilities GermanyMaterials SpainConsumer Discretionary Sweden
Sector Stock Selection
Top 3 Industry that HELPED Top 3 Country that HELPEDFinancials United KingdomConsumer Staples NorwayEnergy Finland
Bottom 3 Industry that HURT Bottom 3 Country that HURTConsumer Discretionary GermanyTelecomm Services France
Austria
Industry Strategy
-3.84% -3.20%
2.25%2.25%
-1.25%
55.59%
-8.67% -1.28% 11.75%
12.48%
-48.63% -35.60%-10.72%
2.70%
-2.32% 8.30%
0.91%
-3.50%
Country Stock SelectionAverage Industry
WeightIndustry Active
ReturnStock
SelectionAverage Country
WeightCountry Active
Return
7.50%4.47% 41.87%
7.25% 1.61% 37.05%
5.27% -11.11%-4.67% 16.78%
0.74%
-26.52%
1.39%
-0.39%0.76%
0.24%
-4.08% 10.30% -0.55%
Stock Selection
-0.36%-0.31%
0.64%
Country Active Weight
Country Excess Return
3.25% 12.47% 0.43%-0.32% -41.76%
-0.03%
Country Strategy
93.5% 24.12% 2.46%
Port Weight Total ReturnActive
Contribution6.5% 2.13% -0.20%
1.52%
0.35%0.48%
1.44%
-0.81%-0.85%-0.91%
0.31%
20.89%
-9.16%-3.49%
4.76%
23.47%7.36%12.80%
14.55%
11.35%20.59%
Port Weight6.5%
93.5%
Industry Active Weight
-2.76%0.59%7.79%
6.07%
2.13%
24.12%
Industry Excess Return
Total ReturnActive
Contribution-0.20%
2.45%-1.37%
-11.04%
2.54%-0.05%
-10.43%-5.77%2.00%
3.83%
17
Allianz RCM European Equity Dividend - Performance attributionvs MSCI Europe – 12 months through 28.02.2011
Source: Wilshire, IDS, 28.02.2011.
*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. The official performance for funds subject to substantial cash flows or which trade in volatile daily market conditions will vary from these figures.
Total TotalPort Bmk Diff Return Port Bmk Diff Return
3.7% 0.1% 3.6% 80.3% 2.3% 0.0% 2.3% -21.9%0.5% 0.0% 0.5% 58.6% 4.4% 0.6% 3.8% 1.6%0.7% 0.1% 0.6% 63.7% 0.0% 1.3% -1.3% 59.4%2.2% 0.0% 2.2% 47.8% 3.2% 1.5% 1.6% -0.3%2.6% 0.3% 2.3% 35.1% 3.1% 0.4% 2.6% 12.1%3.8% 0.0% 3.8% 33.7% 0.8% 0.0% 0.8% -1.6%1.0% 0.0% 1.0% 39.9% 1.2% 2.1% -0.9% -22.5%0.0% 0.6% -0.6% -33.5% 0.0% 0.6% -0.6% 79.0%0.3% 0.0% 0.3% 17.3% 0.0% 0.8% -0.8% 66.5%1.0% 2.7% -1.8% 3.8% 1.5% 0.7% 0.8% -0.4%
15.8% 3.9% 11.9% — 16.3% 8.0% 8.3% —
Total TotalPort Bmk Diff Return Port Bmk Diff Return
3.8% — 3.8% 33.7% — 2.7% -2.7% 15.7%4.4% .6% 3.8% 1.6% 1.0% 2.7% -1.8% 3.8%3.7% .1% 3.6% 80.3% — 1.7% -1.7% 7.4%3.5% .1% 3.4% 22.8% — 1.3% -1.3% 59.4%4.4% 1.1% 3.3% 22.7% — 1.3% -1.3% 3.0%3.1% — 3.1% 26.2% — 1.3% -1.3% 36.5%3.1% .4% 2.6% 12.1% — 1.1% -1.1% 32.1%3.1% .5% 2.6% 15.5% — 1.0% -1.0% 9.9%2.6% .3% 2.3% 35.1% — .9% -.9% 39.8%2.3% — 2.3% -21.9% — .9% -.9% 51.8%
34.1% 3.1% 31.0% — 1.0% 15.0% -14.1% —
Biggest BiggestOverweights Underweights
Performance
Unilever Nv
Bijou Brigitte -124 bp-19 bpAviva-26 bp
-29 bp
(% of Total) Active Contribution
-14 bp
-13 bp
24 bp
-32 bp
Banco Santander Sa
Subtotal -442 bp
Gdf Suez -27 bp
-29 bpDaimler Ag
9 bp Bnp Paribas 11 bp
-45 bp
Muenchener Rueckversic -33 bp Bhp Billiton Plc
24 bpBolsas Y Mercados 8 bp Rio Tinto -21 bpBritish American Tobacc
13 bpFrance Telecom -60 bp Hsbc Hldgs 39 bpHays Plc 53 bp Nestle Sa
Performance
-31 bp
Average Weight Average Weight
Name
-33 bpMuenchener Rueckversic -33 bp
-124 bp-60 bp
Siemens Ag -45 bp
Active Contributors (% of Total)Performance
Active Contribution
Average Weight
43 bp39 bp
807 bp
72 bp61 bp53 bp45 bp
39 bp
Average Weight(% of Total) Active
ContributionName
Seadrill Ltd
BestActive Contributors
Subtotal Subtotal
Seadrill Ltd 201 bp Novartis AgRsa Insurance Group Plc 5 bp Siemens Ag
5 bp
Enel
Basf Se
126 bp
61 bp Bg Group
Bijou BrigitteFrance Telecom
Name Name(% of Total) Active
Contribution
23 -516 bp251 1593 bp 245 -1347 bp
Underweighted Underweighted29 988 bp
Subtotal
Upm-Kymmene CorpTate & LyleAvivaHays Plc
Hsbc Hldgs
Balfour BeattyNokia Oyj
Performance Worst
Novo-Nordisk AsMapfre Sa
201 bp166 bp88 bp
BpOesterreichische Post A
Arriva
Positive Active Contributors Negative Active ContributorsOverweighted Overweighted
222 -831 bp222 605 bp
18
Allianz RCM European Equity DividendSector allocation vs MSCI Europe (as at 31.12.2010)
Source: IDS, 28.02.2011. The fund has no benchmark. The MSCI Europe is shown for informal reasons.
GICS Sector %PF Weight %BM Weight Delta
Telecomm Services 14.08 6.54 7.54
Utilities 10.37 5.45 4.93
Financials 25.85 22.61 3.23
Consumer Discretionary 10.65 8.39 2.26
Health Care 9.93 9.37 0.56
Industrials 11.16 11.25 -0.09
Information Technology 1.97 3.05 -1.08
Energy 8.59 11.39 -2.81
Consumer Staples 7.63 11.57 -3.94
Materials -0.23 10.38 -10.60
Relative Sector Allocation
7.54
4.93
3.23
2.26
0.56
-0.09
-1.08
-2.81
-3.94
-10.60
-15 -10 -5 0 5 10
Telecomm Services
Utilities
Financials
Consumer Discretionary
Health Care
Industrials
Information Technology
Energy
Consumer Staples
MaterialsMarket Cap Split %PF Weight %BM Weight
3bn <= MarketCap 79.35 98.00
1bn <= MarketCap < 3bn 16.73 2.00
MarketCap < 1bn 3.92 0.00
19
Allianz RCM European Equity DividendTop holdings vs MSCI Europe (as at 2802.2011)
Source: IDS, 28.02.2011
Top 10 Holdings %PF Weight %BM Weight %Overweight
MAPFRE SA 4.61 0.04 4.57
BRITISH AMERICAN TOBACC(*D* 4.44 1.06 3.38
KONINKLIJKE KPN NV 4.15 0.34 3.81
TELEFONICA SA(*D*) 4.15 1.38 2.76
ROYAL DUTCH SHELL(*MD*) 4.14 2.97 1.18
ROCHE HOLDINGS AG 4.05 1.40 2.64
ENEL(*D*) 3.96 0.52 3.44
ASTRAZENECA(*D*) 3.92 0.91 3.01
MARINE HARVEST ASA 3.38 0.00 3.38
AVIVA(*D*) 3.36 0.28 3.08
Top 10 Overweights %PF Weight %BM Weight %Overweight
MAPFRE SA 4.61 0.04 4.57
KONINKLIJKE KPN NV 4.15 0.34 3.81
MARINE HARVEST ASA 3.38 0.00 3.38
OESTERREICHISCHE POST A 3.36 0.00 3.36
ENEL(*D*) 3.96 0.52 3.44
BRITISH AMERICAN TOBACC(*D* 4.44 1.06 3.38
HAYS PLC 3.12 0.00 3.12
AVIVA(*D*) 3.36 0.28 3.08
BOLSAS Y MERCADOS 2.87 0.00 2.87
ASTRAZENECA(*D*) 3.92 0.91 3.01
20
-1.3
7.0
1.6 1.8 1.4 0.7 1.22.1
0.61.9
0.5
-1.4 -2.0-0.8
-2.2
-0.3-1.2 -0.7
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
Book T
o Price (I)
Dividend
Yield (I)
Earning
s Yield
(I)C'flo
w Yield (I)
FCF Yield (I)
Sales to
Price (I)
EBITDA to Price
Rtn on Equity
Earning
s Grow
thInc
ome/Sale
sSale
s Growth
IBES 12Mth Gr
IBES Sales 1
2m Gr
Sustainable G
rowthLog
Market
CapMom
entum
STMom
entum
MT
Carbon F
ootprint
Style Factors
Style
Tilt
™
Allianz RCM European Equity DividendStyle Skyline against MSCI Europe 28.02.2011
Allianz RCM Europe Equity Dividend, vs MSCI EuropeData as at 28.02.2011
Value Growth
21
Lead Manager Biographies
Neil is based in Frankfurt and is responsible for all portfolio management, research and trading activities in Frankfurt and London. Neil is a member of the Global RCM Executive Committee and is Chairperson of the European Equity Management Group. Neil joined RCM in 2001 as Head of UK and European Equity Management from JP Morgan Investment Management where he had been a UK and European specialist portfolio manager since 1996. He began his investment career in 1988 with Kleinwort Benson Investment Management as an analyst. Neil holds a BA in Classics from Durham University and is a member of the Institute of Chartered Accountants
Jörg is an Investment Style Leader for the Core European strategy and is portfolio manager of European Equities Core products. He covers the Swiss equity market and has run the Swiss-Equityfunds since 1995. Jörg joined the Company in 1992. From 2003 he took over the Team Head of the European Large Caps in Frankfurt. Since 2007 he has been the Co-CIO of European equities, the joint European Equities Fund Management group in London and Frankfurt. He graduated with a masters degree in business administration from the University of Mannheim in 1993. Jörg also holds the DVFA/CIIA designation.
Neil DwaneCIO Europe
Jörg de Vries-HippenCIO European Equities
Solveig StröerEuropean Equities
Solveig Ströer joined the High Alpha Team in 2009, and works primarily on the European Equity Dividend/Income strategies. Her country focus is Italy. Previously, she worked with the European Mid & Small Caps Team, after having completed the RCM Global Graduate Program in early 2008. As a graduate trainee, she had assignments with the European Multi Assets Team, the European Mid & Small Caps Team, the UK Equities Team in the London office and the European Financials Research Team in Frankfurt. Solveig obtained an MBA degree from the WHU Otto Beisheim School of Management in Vallendar, specializing in Finance and Leadership. Her work experience includes positions at The Boston Consulting Group and MLP AG. Solveig also holds an MScEcondegree in International Politics from the University of Wales in Aberystwyth, as well as a Bachelor of Arts in Public Relations from the University of Southern California in Los Angeles.
22
Allianz RCM European Equity Dividend - AT - EURPerformance since Inception1
Source: Allianz Global Investors; data as per 31/01/2011
100
120
140
160
180
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 %.
cum. p.a.
1 Year 16.90 16.90
Annual Performance (%)
Allianz RCM European Equity Dividend - AT - EUR
Annual Performance (%)
2010
Allianz RCM European Equity Dividend - AT - EUR
Net asset value in mn. EUR
12.0912.82
23
Dividends Can Grow, Coupons Don‘t
Interest 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
0
200
400
600
800
1000
1200
1400
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Interest Dividends
Source: Datastream, own calculations based on MSCI Europe Index and 12month Euro-deposits Libor
1,304 €
402 €
24
Global Research Team
An average of 13 years industry experience; six of which with RCMInnovative and proprietary investment toolsAnalysts manage sector and thematic mandatesEach analyst conducts circa 100 meetings per year with corporate managementResearch identifies the key drivers of each stock, which frames and focuses the analytical processDedicated sustainability research analystsComplemented with GrassrootsSM Research
Source: RCM; data as per 31/12/2010
The cornerstone of the investment process – generating information advantage
Consumer Financial Services Health Care Industrials Technology Telecom /
MediaSustainability
Research Special
SituationsGrassrootsSM
Research Total
Europe 4 5 4 9 2 3 2 5 2 36
US 3 2 4 3 5 2 0 0 2 21
Asia Pacific 2 3 1 3 2 1 0 0 1 13
Total 9 10 9 15 9 6 2 5 5 70
Analysts
25
Allianz RCM European Equity Dividend
Source: Allianz Global Investors; data as per 31/01/2011
4.3
2.9
3.4
4.2
6.5
7.3
10.7
11.9
14.0
34.8
0 10 20 30 40
Others
Netherlands
Austria
Germany
Norway
Italy
Switzerland
France
Spain
UK
Current Country Breakdown (%)
Fund
2.1
7.3
7.5
9.0
10.4
11.4
12.4
14.1
25.9
0 10 20 30
InformationTechnology
Consumer Staples
ConsumerDiscretionary
Health Care
Energy
Utilities
Telecom. Services
Industrials
Financials
Current Sector Breakdown (%)
Fund
The fund unit price may be subject to sharply increased volatility.This is for guidance only and not indicative of future allocation.
26
Allianz RCM European Equity Dividend
The Piotroski scoring system seeks to identify stocks with high financial strengthIt applies one point for each of the following nine indicators (the higher the overall sum, the better):
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 stocks
1 Positive net income 6 Improving productivity(asset turnover > prior period)
2 Positive operating cash flow 7 Growing profitability(return on assets > prior period)
3 Earnings quality(operating cash flow > net income) 8 Issuing stock
(share outstanding </= prior period)
4 Decreasing debt(total debt/assets < prior period) 9 Competitive position
(gross margin > prior period)
5 Increasing working capital
Source: Morgan Stanley, Stanford Graduate School of Business
27
Allianz RCM European Equity Dividend Opportunities and Risks
Source: Allianz Global Investors; data as per 31/01/2011
Opportunities
High return potential of stocks in the long run
Investments specifically in the European stock market
Dividend stocks outperform in some phases
Broad diversification across numerous securities
Possible extra returns through single security analysis and active management
Risks
The volatility of fund unit prices may be strongly increased.
High volatility of stocks, losses possible
Underperformance of the European stock market possible
Dividend stocks may underperform at times
Limited participation in the yield potential of single securities
Success of single security analysis and active management not guaranteed
28
Allianz RCM European Equity Dividend Overview
Source: Allianz Global Investors; data as per 31/01/2011
Share class A - EUR AT - EUR CT - EUR IT - EURBenchmarkUmbrella Allianz Global Investors Fund
Management company AllianzGI Luxembourg S.A.
Sub-manager Allianz Global Investors KAG, Frankfurt
Custodian bank State Street Bank Luxembourg S.A.
Risk classFund manager Jörg de Vries-Hippen & Neil Dwane
Financial year end 30/9/
Net assets 88.33 mn. EUR
ISIN / German security no. LU0414045582 / A0R F5F LU0414045822 / A0R F5H LU0414046390 / A0R F5K LU0414047281 / A0R F5U
Bloomberg ARCMEAE LX ARCMEAT LX ARCMECT LX ARCMEIT LX
Registered for sale in DE, FR, GR, HK, LU, MC, NL, PL, CH, SG, AT
DE, FR, GR, HK, IT, LU, MC, NL, PL, CH, SG, ES, HU, AT
DE, GR, HK, IT, LU, MC, NL, PL, CH, SG, ES, HU, A T
DE, GR, HK, LU, MC, NL, PL, CH, SG, ES, HU, AT
Fund currency EUR EUR EUR EUR
Distribution distributing accumulation accumulation accumulation
Minimum investment (prospectus)
- - - 1,000,000 EUR
Launch date 10/01/2011 10/03/2009 10/03/2009 10/03/2009
Initial issue price 105.00 EUR 105.00 EUR 103.00 EUR 1.000.00 EUR
Share class volume 3.31 mn.EUR 23.94 mn.EUR 2.02 mn.EUR 59.07 mn.EUR
Front-end load (%) 5.00 5.00 currently 3.00 (max. 5.00) currently 0.00 (max. 2.00)
Management fee (% p.a.) currently 1.50 (max. 2.50) currently 1.50 (max. 2.50) currently 1.50 (max. 2.50) currently 0.75 (max. 1.25)
Distribution fee (% p.a.) 0.75
TER (%) 1.83 1 2.59 1 0.96 1
-
4 : risk aware
1 TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year.
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Disclaimer
Allianz RCM European Equity Dividend is a sub-fund of Allianz Global Investors Fund, which is an open-ended investment company with variable share capital (also known as a SICAV) organised under 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 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 the applicable 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 in which 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 in the 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 US Securities 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 of the 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 investor in 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 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, 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 from them 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 base currency.Further information on the risks associated with investments in Allianz RCM European Equity Dividend -those briefly described above as well as others, if applicable- can be found in the prospectuses of Allianz Global Investors Fund.This document 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 is subject 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, 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 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: www.allianzglobalinvestors.eu, E-Mail: [email protected]
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