Allianz US Equity. December 2015

Transcription

1 Allianz US Equity December 2015 Allianz Global Investors was recognised by German magazine Capital as a top fund manager and was awarded the maximum five-star rating. High scores were awarded for product range, above average quality of multi-asset funds, and excellence in service quality. Allianz Global Investors therefore belongs to the top investment management providers. Source: Capital 3/2015. The survey included 59 investment companies with complete product range and 41 boutiques. Data as per A ranking, rating or award is not an indicator of future performance and may be subject to change over the course of time.

2 Why Allianz US Equity? Objective is to seek out undervalued companies that possess catalysts for change Typical investments are low-expectation stocks with what we expect to be low downside risk and high upside potential An actively managed U.S. Core strategy, focusing on bottom-up stock selection Utilizes a disciplined and proven investment process: using screening for initial idea generation, fundamental research based stock selection, and bottom-up, risk-aware portfolio construction Excellent & consistent performance track record over short, medium and long-term periods 1 Strong & consistent performance profile in both up and down markets Disciplined U.S. Core Equity Total AUM = $ 1.7 billion as of March 31, 2014 Corporate & Others ($447 m) 26% Financial Intermediaries (Sub-Advised) ($203 m) 12% AllianzGI Mutual Funds ($1,091 m) 63% 1 Past performance is not a reliable indicator for future results. Source: Allianz Global Investors; data as at 31/03/2014 2

3 Content Investment philosophy and process Current portfolio positioning Performance and risk 3

4 1 Investment philosophy and process 4

5 Portfolio management team Disciplined US Core Equity Portfolio Management Team Kimberlee W. Millar, CFA Analyst Telecom, Healthcare, Consumer & Industrials 8 Years at AllianzGI US (17 Years Experience) Steven J. Berexa, CFA Senior Fund Co-Manager Global Head of Research 16 Years at AllianzGI US (26 Years Experience) Shibin Xie, CFA Analyst Tech, Financials, Materials, Energy & Utilities 6 Years at AllianzGI US (12 Years Experience) Global Research Platform Global Sector Fundamental Research Grassroots SM Research 1 1 Grassroots SM Research is a division of Allianz Global Investors that commissions investigative research for asset-management professionals. Research data used to generate Grassroots SM Research reports are received from reporters and field force investigators who work as independent, third-party research providers, supplying research that is paid for by commissions generated by trades executed on behalf of clients. Source: AllianzGI US; data as of 18/06/2015 5

6 Allianz U.S. Equity Fund investment strategy We believe investor sentiment fluctuates more widely than underlying fundamentals which, in turn, creates mispriced opportunities We aim to invest in companies whose present valuations suggest low near-term expectations but that have the prospect for re-rating based on longer-term positive drivers. These types of investments simultaneously provide more downside risk protection and upside potential We believe the disciplined application of this approach will generate consistent excess returns over time within a prudent risk profile 6

7 Investment process Goals: To consistently outperform the S&P 500 Index over market cycles Excess Return Expectation: 150 bps 350 bps; Expected Tracking Error: 3% 7% Target Information Ratio (IR) = 0.5 or better Idea Generation Valuation/ Stock Selection Portfolio Construction/ Risk Control Monitoring & Review Define universe as market cap > USD 1.5 billion (~1200 Stocks) Apply screening to identify potential new ideas ( Out-of-Favor Stock List ) Select stocks from the Out-of- Favor Stock List for further research (0~3 Stocks) Conduct original research leveraging our robust global research platform Perform equity valuation analysis to produce upside & downside target prices Focus on under-valuation opportunity vs. underlying fundamentals, and select stocks with attractive upside potential and low downside risk ~40 80 stocks Diversified across industries Conduct risk analysis to monitor risk levels & risk composition vs. the benchmark Drive alpha predominantly via stock selection Normal Turnover = 40%/year Continuously monitor valuation, ranks, growth drivers, market, and consumer data Review performance attributions and key decisions to enhance investment process Alpha Potential The number of securities referenced above represent the typical number of stocks researched at each stage of the investment process. During any given stage of the investment process the selection criteria may vary from those shown above. The diagrams and statements above reflect the typical investment process applied to this strategy. At any given time other criteria may affect the investment process. See additional disclosure at the end of this presentation. A success of the strategy is not guaranteed and losses remain possible. 7

8 Idea generation Stock Screening (~1200 Stocks) Attractive Valuation Weight: Attractive Growth Weight: Top 1 3 Out-of-Favor Stock List (~ 400 Stocks) Select Stocks for Further Research (0 ~3 Stocks) Screening is designed to produce a broad set of stock ideas for all sectors All Buy candidates must come through the screen ( Out-of-Favor Stock List ) Screening is done on a daily basis Portfolio Management Team selects a few stocks from the Out-of-Favor Stock List for further research During any given stage of the investment process the selection criteria may vary from those shown above. The diagrams and statements above reflect the typical investment process applied to this strategy. At any given time other criteria may affect the investment process. See additional disclosure at the end of this presentation. 8

9 Valuation and stock selection Fundamental Research & Equity Valuation: Conduct original research leveraging our robust global research platform Forecast potential peak & trough multiples Calculate upside & downside target prices Build conviction to invest in out-of-favor stocks Select stocks with attractive upside potential and low downside risk Downside $80 20% Upside 50% Current Price $100 $150 Price Range 9

10 Portfolio construction and risk control Build portfolio of approximately stocks with expected active risk: 3% to 7% Long-term average turn-over = 40%/year Bottom-up stock selection drives sector/industry weightings Build stock positions mainly based on conviction levels (normally 75 bps to 500 bps at cost) Buy Discipline Stock passes the screen Small downside risk vs. attractive upside potential Optimistic views/expectations by portfolio managers: Positive earnings revisions and surprises Identifiable drivers for future priceappreciation Price over-reaction vs. underlying fundamentals Trough valuations Buying stock improves risk profile Sell Discipline Eroding upside potential, and/or increasing downside risk Negative views/expectations by portfolio managers: Deterioration of fundamental outlook Violation of investment drivers & assumptions Headline risk overtakes fundamentals Better alternatives Peak valuations Selling stock improves risk profile Risk Analysis 1. Review total active risk level and its composition (stock vs. industry vs. common factors) 2. Focus on increasing stock selection risk as percent of total active risk The number of securities referenced above represent the typical number of stocks researched at each stage of the investment process. During any given stage of the investment process the selection criteria may vary from those shown above. The statements above reflect the typical investment process applied to this strategy. At any given time other criteria may affect the investment process. See additional disclosure at the end of this presentation. 10

11 Monitoring and review Attribution Analysis Analyze stock selection vs. industry/sector effects Analyze value-added across investment steps Investment Meetings Daily updates & formal weekly portfolio review Sector research teams Economic strategy Company management Industry conferences Market & Consumer Data Grassroots SM Research Input from traders Street research Sector research analysts and portfolio managers 11

12 2 Current portfolio positioning 12

13 Allianz US Equity Top holdings GENERAL ELECTRIC CO 4.51 JPMORGAN CHASE & CO 3.28 MERCK & CO. INC AMGEN INC 3.11 COMCAST CORP-CLASS A 3.08 INTEL CORP 3.07 ALPHABET INC-CL A 3.00 MONDELEZ INTERNATIONAL INC-A 2.86 CISCO SYSTEMS INC 2.85 BLACKROCK INC 2.77 Total This is no recommendation or solicitation to buy or sell any particular security. The current breakdown is not a reliable indicator of future results. The fund unit price may be subject to increased volatility. Source: Allianz Global Investors; data as at 30/11/

14 Allianz US Equity Current sector breakdown (%) Relative allocation Fund weight (%) Benchmark¹ weight (%) Information Technology Health Care Financials Consumer Discretionary Industrials Consumer Staples Energy Materials Utilities Telecom. Services S&P 500 Total Return. The current breakdown is not a reliable indicator of future results. The fund unit price may be subject to increased volatility. Source: Allianz Global Investors; data as at 30/11/

15 Style Tilt Allianz US Equity Style skyline 1,5 Value Growth 1,0 1,0 0,6 0,6 0,5 0,2 0,1 0,2 0,3 0,0-0,5 0,0-0,4-0,6-0,3-0,2-0,3-0,6-0,3-0,4-0,3-1,0-1,5-1,2 Allianz US Equity - A - EUR (vs. S&P 500 Total Return) The fund unit price may be subject to increased volatility. Past performance is not a reliable indicator of future results. Source: Allianz Global Investors; data as at 30/11/2015 Style Factors 15

16 3 Performance and risk 16

17 Performance suffering in the past 3 years Performance calendar years in % YTD Allianz US Equity - A - EUR S&P 500 Total Return 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 is not a reliable indicator of future results. 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 increased volatility. TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year: 1.8 %. Source: Allianz Global Investors; data as at 30/11/

18 Allianz US Equity - A - EUR Performance vs. median of the Morningstar peer group in % Allianz US Equity - A - EUR US Large-Cap Blend Equity Fund (base value = 100) Peer group: US Large-Cap Blend Equity (base value = 100) year years p.a years p.a years p.a 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 is not a reliable indicator of future results. 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 increased volatility. TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year: 1.8 %. Source: Allianz Global Investors; data as at 30/11/

19 Allianz US Equity - A - EUR Performance over 10 years in % % 21.3% 20.0% 24.4% 19.3% Allianz US Equity - A - EUR Benchmark (base value = 100) % % 8.7% year 3 years p.a. 5 years p.a. 10 years p.a. Allianz US Equity - A - EUR S&P 500 Total Return 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 is not a reliable indicator of future results. 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 increased volatility. TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year: 1.8 %. Source: Allianz Global Investors; data as at 30/11/

20 Performance Allianz US Equity - A - EUR Performance p.a. Allianz US Equity - A - EUR Outperformance and risk / return-chart 1 Outperformance in 70 out of year p.a. periods rolled monthly as per in % Risk vs. Return (5 Years) as per in % Performance Benchmark Volatility annualized Allianz US Equity - A - EUR u S&P 500 Total Return 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 is not a reliable indicator of future results. 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 increased volatility. 2 S&P 500 Total Return TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year: 1.8 %. Source: Allianz Global Investors; data as at 30/11/

21 Allianz US Equity - A - EUR Risk / return ratios 1 Year 3 Years 5 Years Sharpe ratio Volatility (%) Alpha (%) Beta Tracking error (%) Information ratio Active share (%) Dividend yield (%) 1.78 Past performance is not a reliable indicator of future results. The fund unit price may be subject to increased volatility. Source: Allianz Global Investors; data as at 30/11/

22 4 Appendix 22

23 Global Research Team Consumer Financial Health Care Industrial & Resources Tech & Telecom & Media ESG & Engagement Grassroots Credit Total Asia Europe Americas Total An average of 15 years industry experience Innovative and proprietary investment tools Analysts manage sector and thematic mandates Each analyst conducts circa 100 meetings per year with corporate management Research identifies the key drivers of each security, which frames and focuses the analytical process Dedicated sustainability research analysts Complemented with Grassroots SM Research The cornerstone of our investment process generating information advantage Data as of Grassroots SM Research is a division of Allianz Global Investors that commissions investigative research for asset-management professionals. Research data used to generate Grassroots SM Research reports are received from reporters and Field Force investigators who work as independent, third-party research providers, supplying research that is paid for by commissions generated by trades executed on behalf of clients. 23

24 Grassroots SM Research project process Our proprietary Grassroots SM Research is tailored to answer specific questions about the key stock drivers identified by our Portfolio Managers and Analysts. Portfolio Manager/Analyst seeks information about a company s or industry s products, processes or future plans. Grassroots SM Research Project Manager designs an investigation, identifying objectives, questions to be answered and sources to be contacted. Grassroots SM Research Project Manager compiles background information and works with the Reporter to facilitate understanding of the request. Reporter queries marketplace sources at all necessary levels and relays preliminary findings. Reporter submits written study that is edited for distribution and discussed by Grassroots SM Research Project Manager with Portfolio Managers and Analysts. Portfolio Manager incorporates Grassroots SM findings with fundamental research to make portfolio decision. Follow-up reports may be requested. Grassroots SM Research is a division of Allianz Global Investors that commissions investigative research for asset-management professionals. Research data used to generate Grassroots SM Research reports are received from Reporters and Field Force Investigators who work as independent, third-party research providers, supplying research that is paid for by commissions generated by trades executed on behalf of clients. 24

25 Grassroots SM Research Investment decisions reality checked Mission: To provide investment professionals with timely, unique and customized business insights Methodology: - Customised to answer specific questions about key stock drivers identified by portfolio managers and analysts Resources: - In-house staff of reporters Field Force investigators - 50,000+ industry contacts Results: company/industry studies per year Data as at 31/03/2015. Grassroots SM Research is a division within the Allianz Global Investors group of companies that commissions investigative research for asset-management professionals. Research data used to generate Grassroots SM Research reports are received from reporters and field force investigators who work as independent, third-party research providers, supplying research that is paid for by commissions generated by trades executed on behalf of clients. 25

26 AllianzGI Disciplined US Core Equity strategy: Performance across rolling 3- and 5 year periods AllianzGI Disciplined US Core Equity Composite vs. S&P 500 Index (Gross of Fees) As of March 31, 2015 AllianzGI Disciplined US Core Equity has outperformed the S&P 500 Index in 69% of all rolling 3-year periods, and in 85% of all rolling 5-year periods (measured monthly). For all 3-year and 5-year time periods, the average outperformances were +210bps and +271bps respectively. Source: AllianzGI, Composite performance inception date: January 31, The charts above compare each of the rolling annualised returns, for the period(s), of the composite (gross of fees) and the indicated index, since the first full calendar quarter of composite performance. Data is calculated using quarterly returns. Data gross of fees; calculation at the net asset value (BVI method) based on the assumption that distributions are reinvested and excludes initial charges. Individual costs such as fees, commissions and other charges have not been taken into consideration and would have a negative impact on the performance if they were included. Past performance is not indicative of future performance. 26

27 Allianz US Equity - A - EUR Performance in detail since inception in % 1 Annual Performance (%) Allianz US Equity - A - EUR Benchmark 2 Delta Tracking error Information ratio Net asset value cum. p.a. cum. p.a. cum. p.a. % Mio. EUR YTD month months months year , , years , , years , , years , , Since Inc. (04/2002) , , 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 is not a reliable indicator of future results. 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 increased volatility. 2 S&P 500 Total Return TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year: 1.8 %. Source: Allianz Global Investors; data as at 30/11/

28 Allianz US Equity - A - EUR Annual performance (%) % 25.1% 27.6% % 15.8% 16.5% 18.7% 21.3% % 0-3.8% Allianz US Equity - A - EUR S&P 500 Total Return 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 is not a reliable indicator of future results. 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 increased volatility. TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year: 1.8 %. Source: Allianz Global Investors; data as at 30/11/

29 Allianz U.S. Equity Fund Equity portfolio overview Benchmark: S&P 500 Index The information above is supplemental to and complements the associated GIPS compliant composite presentation in the Appendix of this book. The account information set forth above is for a representative portfolio, is provided for illustrative purposes only and reflects one account within the composite. Characteristics of the representative portfolio shown here may differ from those of the composite and of the other accounts in the composite. The information provided in this report should not be considered a recommendation of any particular security or strategy. There is no assurance that any security discussed herein will remain in an account's portfolio at the time you receive this document. The securities identified and described do not represent all of the securities purchased or sold for client accounts. You should not assume that an investment in the securities identified was or will be profitable. Source: Allianz Global Investors, This is for guidance only and not indicative of future allocation. This is not a recommendation or solicitation to buy or sell any particular security. 29

30 Allianz US Equity Portfolio Weight by Market Cap Sector Benchmark: S&P 500 Index March 31, 2015 The information above is supplemental to and complements the associated GIPS compliant composite presentation in the Appendix of this book. The account information set forth above is for a representative portfolio, is provided for illustrative purposes only and reflects one account within the composite. Characteristics of the representative portfolio shown here may differ from those of the composite and of the other accounts in the composite. The information provided in this report should not be considered a recommendation of any particular security or strategy. There is no assurance that any security discussed herein will remain in an account's portfolio at the time you receive this document. The securities identified and described do not represent all of the securities purchased or sold for client accounts. You should not assume that an investment in the securities identified was or will be profitable. Source: Allianz Global Investors, This is for guidance only and not indicative of future allocation. This is not a recommendation or solicitation to buy or sell any particular security. 30

31 Allianz U.S. Equity Fund Portfolio by industry March 31, 2015 The information above is supplemental to and complements the associated GIPS compliant composite presentation in the Appendix of this book. The account information set forth above is for a representative portfolio, is provided for illustrative purposes only and reflects one account within the composite. Characteristics of the representative portfolio shown here may differ from those of the composite and of the other accounts in the composite. The information provided in this report should not be considered a recommendation of any particular security or strategy. There is no assurance that any security discussed herein will remain in an account's portfolio at the time you receive this document. Source: Allianz Global Investors, This is for guidance only and not indicative of future allocation. This is not a recommendation or solicitation to buy or sell any particular security. 31

32 Disciplined U.S. Core Equity Team Steve Berexa Senior Fund Co-Manager / Global Head of Research is a senior portfolio manager and managing director with Allianz Global Investors, which he joined in He is the Global Head of Research for the firm and is involved in the management of several portfolios. Previously, Mr. Berexa was US director of research and head of the US tech team. He has 26 years of investment-industry experience. Before joining the firm, Mr. Berexa worked at Prudential in a private placement unit, with responsibilities for the subordinated debt of renewable energy projects as well as credit and LBOs. Before that, he was a tech analyst at Chancellor/LGT Asset Management. Mr. Berexa has a B.S.E.E. and an M.B.A. from Duke University, where he studied electrical engineering and computer science and was awarded an Angier B. Duke scholarship. He is a CFA charterholder. KIMBERLEE W. MILLAR, CFA VICE PRESIDENT ANALYST/PORTFOLIO MANAGER, DISCIPLINED EQUITIES GROUP joined our company in 2005 as an Analyst dedicated to the Disciplined Equities Group. Kimberlee's current primary role is to conduct company research as a generalist for the Group. She also helps improve the overall investment processes, and contributes toward portfolio management efforts of the Group. Prior to joining Allianz Global Investors, Kimberlee worked as an Assistant Economist at the Investment Company Institute (ICI) in Washington, DC. At ICI, she produced mutual fund industry research for investment management firms research and marketing departments. Prior to ICI, Kimberlee worked at Heiden Associates Inc., an economic consulting firm in Washington, DC. She received a MA in economics from Queen s University, Canada and a BA in economics from the University of Calgary, Canada. Kimberlee is a CFA charter holder and a member of the CFA Institute. SHIBIN XIE, CFA VICE PRESIDENT ANALYST/PORTFOLIO MANAGER, DISCIPLINED EQUITIES GROUP joined our company in 2007 as an Analyst dedicated to the Disciplined Equities Group. Shibin's current primary role is to conduct company research as a generalist for the Group. Shibin also performs special research projects aimed at improving equity valuation models and screening strategy. He also contributes toward portfolio management efforts of the Group. Prior to joining Allianz Global Investors, he was a quantitative analyst at Pequot Capital Management in San Francisco. While there, he conducted quantitative research, and worked as an analyst covering the global financial sector for their Global Market Neutral Fund. Prior to Pequot, Shibin was an assistant professor at the Business School in Hong Kong University of Science & Technology. He received a Ph.D. in Business Administration from the University of Iowa, a M.S. in engineering, B.S. in engineering, and B.A. in economics from Tsinghua University in China. Shibin is a CFA charter holder and a member of the CFA Institute. Source: Allianz Global Investors; figures as at 31/03/

33 Allianz US Equity - A - EUR Key information ISIN / German security no. IE / Benchmark S&P 500 Total Return Umbrella Allianz Global Investors Fund V Management company Allianz Global Investors Ireland Ltd., Dublin Investment Manager Allianz Global Investors U.S. LLC., San Francisco Custodian bank State Street Custodial Services (Ireland) Limited Launch date Fund manager Steve Berexa (since ) Fund currency EUR Net assets mn.eur Share class volume mn. EUR Financial year end 31/12/ Distribution distributing Distribution payout on EUR Distribution frequency annually Registered for sale in DK, FI, AT, GB, CH, NO, NL, IE, FR, DE Front-end load (%) 1 currently 5.00 (max. 6.00) All-in fee in % p.a TER (%) Source: Allianz Global Investors; data as at 30/11/ If the acquisition of Fund units is subject to a sales charge, up to 100% of such sales charge may be collected by the distributor; the exact amount shall be mentioned by the distributor as part of the investment advisory process. This also applies to any payment by the Management Company of an ongoing distribution fee from the all-in fee to the distributor. 2 The all-in fee includes the expenses previously called management, administration and distribution fees. 3 TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year. 33

34 Allianz US Equity Overview Benchmark Management company S&P 500 Total Return (hedged into EUR) Allianz Global Investors Ireland Ltd., Dublin Investment Manager Allianz Global Investors U.S. LLC., San Francisco Risk class 6 : profit-oriented Fund manager Steve Berexa Financial year end 31/12/ Net assets mn. EUR S h a re c la ss A - EUR A (H- EUR) - EUR AT - EUR AT - USD AT (H- EUR) - EUR C2 - USD CT - EUR I - USD IS IN IE IE00B0RZ0529 IE00B1CD3R11 IE00B1CD5314 IE00B3B2KP07 IE IE00B1CD3T35 IE00B0RZ0636 G e rma n se c u rity n o A0HMVT A0LBUF A0MMHH A0Q4F A0LC1Z A0HMVU R e g iste re d fo r sa le in DK, FI, AT, GB, CH, NO, NL, IE, FR, DE DK, FI, AT, GB, CH, ES, NO, NL, HU, IE, FR, DE DK, FI, AT, GB, CH, ES, NO, NL, HU, IE, FR, DE DK, FI, AT, GB, CH, ES, NO, NL, HU, IE, FR, DE DK, FI, AT, GB, CH, ES, NO, NL, IE, FR, DE DK, FI, AT, GB, CH, ES, NO, NL, IE, FR, DE DK, FI, AT, GB, CH, ES, NO, NL, HU, IE, FR, DE F u n d c u rre n c y EUR EUR EUR USD EUR USD EUR USD DK, FI, AT, GB, CH, NO, NL, IE, FR, DE D istrib u tio n distributing distributing ac c umulation ac c umulation ac c umulation distributing ac c umulation distributing M in. in ve stme n t (p ro sp e c tu s) ,000,000 USD L a u n c h d a te S h a re c la ss vo lu me mn.eur 8.26 mn.eur mn.eur mn.usd mn.eur mn.usd 2.59 mn.eur mn.usd F ro n t- e n d lo a d (% ) 1 c urrently 5.00 (max. 6.00) c urrently 5.00 (max. 6.00) c urrently 5.00 (max. 6.00) c urrently 5.00 (max. 6.00) c urrently 5.00 (max. 6.00) - c urrently 2.00 (max. 6.00) A ll- in fe e in % p. a T ER (% ) If the acquisition of Fund units is subject to a sales charge, up to 100% of such sales charge may be collected by the distributor; the exact amount shall be mentioned by the distributor as part of the investment advisory process. This also applies to any payment by the Management Company of an ongoing distribution fee from the all-in fee to the distributor. 2 The all-in fee includes the expenses previously called management, administration and distribution fees. 3 TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year. Source: Allianz Global Investors; data as at 30/11/

35 Allianz US Equity Overview Benchmark Management company S&P 500 Total Return (hedged into EUR) Allianz Global Investors Ireland Ltd., Dublin Investment Manager Allianz Global Investors U.S. LLC., San Francisco Risk class 6 : profit-oriented Fund manager Steve Berexa Financial year end 31/12/ Net assets mn. EUR S h a re c la ss IT - USD IT2 - USD WT - EUR WT - USD WT (H- EUR) - EUR IS IN IE00B1CD5645 IE00B3N0JR70 IE00B2NF9H58 IE00B1CD5D15 IE00B4L9GL64 G e rma n se c u rity n o. A0LBUG A0YKP5 A0NA5T A0NEGS A0YA9K R e g iste re d fo r sa le in DK, FI, AT, GB, CH, ES, NO, NL, IT, IE, FR, DE DK, FI, AT, GB, CH, NO, NL, IE, FR, DE DK, FI, AT, GB, CH, NO, NL, IE, FR, DE DK, FI, AT, GB, CH, NO, NL, IE, FR, DE F u n d c u rre n c y USD USD EUR USD EUR DK, FI, AT, GB, CH, NO, NL, IE, FR, DE D istrib u tio n ac c umulation ac c umulation ac c umulation ac c umulation ac c umulation M in. in ve stme n t (p ro sp e c tu s) 1,000,000 USD 1,000,000 USD 10,000,000 EUR 10,000,000 USD 10,000,000 EUR L a u n c h d a te S h a re c la ss vo lu me mn.usd USD 6.58 mn.eur mn.usd mn.eur F ro n t- e n d lo a d (% ) A ll- in fe e in % p. a T ER (% ) If the acquisition of Fund units is subject to a sales charge, up to 100% of such sales charge may be collected by the distributor; the exact amount shall be mentioned by the distributor as part of the investment advisory process. This also applies to any payment by the Management Company of an ongoing distribution fee from the all-in fee to the distributor. 2 The all-in fee includes the expenses previously called management, administration and distribution fees. 3 TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year. Source: Allianz Global Investors; data as at 30/11/

36 Composite disclaimer Disciplined U.S. Core Composite Year Composite Gross Return (%) Composite Net Return (%) S&P 500 Index (%) (1) Composite 3-Yr St. Dev. (%) (2) Benchmark 3-Yr St. Dev. (%) (2) Internal Dispersion Number of Portfolios in the Composite at Year End Composite Total Assets at Year End (USD $M) Total Firm Assets (USD $M) , , , , ,233 19, ,769 11, ,146 17, ,469 22, ,235 22, ,824 21,035 (1) The S&P 500 Index returns, which do not reflect the deduction of investment fees, have been provided for comparison purposes and have not been examined by independent accountants. (2) The three -year annualized standard deviation measures the variability of the composite and the index returns over the preceding 36-month period. Source: Allianz Global Investors, Composite performance inception date: 31/01/1994. Data gross of fees; calculation at the net asset value (BVI method) based on the assumption that distributions are reinvested and excludes initial charges. Individual costs such as fees, commissions and other charges have not been taken into consideration and would have a negative impact on the performance if they were included. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor s local currency. Past performance is not indicative of future performance. 36

37 Composite disclaimer Disciplined U.S. Core Minimum Separate Account $25 M 0.65% on first $20 M 0.55% on next $50 M 0.50% on next $100 M 0.45% on next $250 M The Firm: Allianz Global Investors U.S. LLC (AllianzGI US) is an SEC registered investment adviser that provides investment management and advisory services primarily to separate accounts of institutional clients, and registered and unregistered investment funds. For GIPS purposes, the Firm is defined and held out to the public as the investment management and advisory services provided by AllianzGI US and its SEC registered investment adviser subsidiary NFJ Investment Group LLC; excluding (1) administrative and/or sub adviser oversight services, and (2) separately managed account (wrap) services. Effective April 1, 2013, the scope of AllianzGI US s investment advisory business now includes assets previously managed by RCM Capital Management LLC ( RCM ) and Caywood-Scholl Capital Management LLC ( Caywood-Scholl ), each of which merged into AllianzGI US on April 1, 2013 (the Merger ). However, the total Firm assets presented reflect only the assets under management of the Firm prior to the Merger. The Firm's list of composite descriptions, as well as information regarding the Firm's policies for valuing portfolios, calculating performance, and preparing compliant presentations, are available upon request. Compliance Statement: The Firm claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS Standards, including the GIPS Guidance Statement on Performance Record Portability. The Firm intends to claim compliance with GIPS with respect to all assets under management, including all assets previously managed by RCM and Caywood-Scholl, by April 1, On January 1, 2013, Allianz Global Investors Solutions LLC ("AGIS") merged into AllianzGI US, and therefore the scope of AllianzGI US's investment advisory business now includes the investment advisory services provided by the teams previously associated with AGIS. For the purpose of GIPS, and the verification of the Firm for the period ended December 31, 2012, the Firm does not include the investment advisory services provided by the legacy AGIS teams. AllianzGI US and/or, as applicable, its predecessor firm has been independently verified for the periods from January 1, 1994 through December 31, Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firmwide basis and (2) the Firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Disciplined U.S. Core composite has been examined for each of the shown periods ended December 31, 2003 through December 31, The verification and performance examination reports are available upon request. The Composite: Disciplined U.S. Core Composite (the Composite ), includes all fee-paying, discretionary, Disciplined Core portfolios managed against the S&P 500 Index. The Composite was created in December The Composite includes all actual fee paying discretionary institutional and mutual fund accounts (including subadvisory relationships) with comparable investment objectives and risks, managed by AllianzGI US for at least one full month. All earnings are reinvested. From time to time, when observable inputs and prices are not available or appropriate for a security in a portfolio, the Firm will make a fair market value determination for such security based on the best information available under the circumstances. Portfolio Returns: Returns are calculated on a total return basis, including all dividends (income & expense) and interest, accrued income, realized and unrealized gains or losses, and are net of all brokerage commissions, execution costs and without provision for federal or state income taxes. Performance results are expressed in U.S. dollars. Fees: Performance results stated to be gross do not reflect the deduction of investment advisory fees. Gross performance results earned on behalf of AllianzGI US s clients will be reduced by AllianzGI US s advisory fees. Net performance results, which reflect the deduction of actual investment advisory fees and may include performance fees, are also displayed. Net of fee returns for portfolios for which AllianzGI US acts as a sub-adviser are calculated by deducting the sub-advisory fees paid to AllianzGI US. AllianzGI US investment advisory fees are usually accrued monthly based on the market value of the assets in a portfolio, including cash or its equivalent, held for investment, at the end of each month. AllianzGI US s standard advisory fees, as reported in Form ADV Part 2A Brochure for the investment style described herein, are 0.65% on the first $20 million, 0.55% on the next $50 million, 0.50% on the next $100 million, 0.45% on the next $250 million. Index: The S&P 500 Index is a capitalization-weighted index of 500 stocks that attempts to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing major industries. Investors may not make direct investments into any index. All returns presented are calculated using U.S. dollars. Internal Dispersion: The internal dispersion is an equal-weighted dispersion measure that explains the deviation of gross annual account returns from the Composite annual account return. Assuming normal distribution of returns, plus or minus one standard deviation from the mean return encompasses 68% of all possible outcomes. The internal dispersion may not be meaningful for composites consisting of five or fewer portfolios or for periods of less than one full year. Past performance is not indicative of future results. Gross returns do not give effect to investment advisory fees, which would reduce such returns. Investment advisory fees are described further in Form ADV Part 2A Brochure of the investment adviser. Advisory fees deducted periodically from accounts can have an impact on performance. As an example, the effect of investment advisory fees on the total value of a portfolio assuming (1) $1,000,000 investment, (2) portfolio return of 5% per year, and (3) 1.00% annual investment advisory fee would be $10, in the first year, $56, over five years, and $129, over ten years. Actual fees charged may vary by portfolio due to various conditions, including account size. The netof fee results for individual accounts and for different time periods may vary. Unless otherwise noted, equity index performance is calculated with gross dividends reinvested and estimated tax withheld, and bond index performance includes all payments to bondholders, if any. Indexes are referred to for comparative purposes only and are not intended to parallel the risk or investment style of the portfolios in the Composite. Indexes do not utilize leverage. Index calculations do not reflect fees, brokerage commissions or other expenses of investing. Investors may not make direct investments into any index. Index data contained herein (and all trademarks related thereto) are owned by the indicated index provider, and may not be redistributed. The information herein has not been approved by the index provider. 37

38 Allianz US Equity Opportunities Risks High return potential of stocks in the long run Investments specifically in the US stock market Currency gains against investor currency possible in unhedged unit classes Broad diversification across numerous securities Possible extra returns through single security analysis and active management High volatility of stocks, losses possible. The volatility of fund unit prices may be strongly increased. Underperformance of the US stock market possible Currency losses against investor currency possible in unhedged unit classes Limited participation in the yield potential of single securities Success of single security analysis and active management not guaranteed Source: Allianz Global Investors; data as at 30/11/

39 Disclaimer Performance Attribution Analysis Performance figures shown in the Wilshire Attribution report are approximate. All calculations are performed daily. All figures displayed are gross of fees and taxes and based on closing prices. Portfolio figures: The equity and cash part of the portfolio are captured in the standard Wilshire Attribution reports. In Wilshire Attribution reports incl. derivatives. All derivatives which are available in the Wilshire database are comprised as well. Wilshire uses a holding based calculation method to calculate the performance figures related to the portfolio. Compared to the 3 months analysis the deviations described above are higher in the 12 months analysis. Benchmark figures: Wilshire calculates the benchmark performance based on the performance of the individual securities (dividends fully reinvested). Since we normally use Net Return Indices as benchmarks, there might be considerable deviations from the official benchmark figures. Fund weight = average weight of an asset class in the portfolio Intra period effect = Flow effect + Transaction impact GICS sector active weight = the portfolio s GICS sector weight minus the benchmark s GICS sector weight GICS sector excess Return = the benchmark GICS sector return minus the benchmark total return GICS sector average weight = average GICS sector weight of the portfolio over the time period GICS sector active return = the portfolio s GICS sector return minus the benchmark s GICS sector return Active contribution = single security active weight 1 single security total return minus benchmark total return 1 Attribution based on position-based performance attribution (daily buy-and-hold, closing price valuation, 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. 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. The content of the report must be considered confidential. The design of the report is subject to copyright. Where performance is mentioned, please note that past performance is not a reliable indicator of future results. Source: Allianz Global Investors 39

40 Disclaimer Allianz US Equity Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Allianz US Equity is a sub-fund of Allianz Global Investors Fund V, an open-ended investment trust organised under the laws of Ireland. THE VALUE OF THE UNITS OF THE FUND MAY BE SUBJECT TO A VERY HIGH LEVEL OF FLUCTUATION. Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor s local currency. This is for information only and not to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell any securities. The products or securities described herein may not be available for sale in all jurisdictions or to certain categories of investors. This is for distribution only as permitted by applicable law and in particular not available to residents and/or nationals of the USA. The investment opportunities described herein do not take into account the specific investment objectives, financial situation, knowledge, experience or specific needs of any particular person and are not guaranteed. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact the management company Allianz Global Investors Ireland Limited in the fund's country of domicile, Ireland, or the issuer at the address indicated below or Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors GmbH, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht ( The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted. Internet: AllianzGIClientReporting@allianzgi.com Source: Allianz Global Investors; data as at 30/11/

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