2012 01-20 allianz rcm european equity dividend-agi_citywire
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TRANSCRIPT
A dividend strategy in a low interest rates market environment
Allianz RCM European Equity Dividend
Citywire, February 2012
Jörg de Vries-Hippen
2
Content
1. Welcome to Allianz Global Investors
2. The Case for European Dividend Investing
3. Allianz RCM European Equity Dividend: Investment Process
4. Allianz RCM European Equity Dividend: Update
5. Appendix
1
Welcome to Allianz Global Investors
3
Allianz Global Investors – A leading global asset manager well positioned to protect and enhance our clients' wealth…
4
… through Our Global Presence and Reach … … and Our Strong Capabilities …
A Global Investment Platform delivering Sustainable Alpha through Active Management via
shared global research and broad investment expertise across
diverse investment styles covering all major asset classes
Proven Solutions capabilities addressing Complex Client Needs including world-class Risk Management, Fiduciary Management and Pension-Life / Asset Solutions
Local Presence providing In-Depth Understanding of our Clients‘ needs complemented by Thought Leadership in investment and retirement solutions, e.g. Behavioural Finance, SRI
Strong Presence in the US, Europe and Asia making us the Trusted Partner for our clients across All Asset Classes
and Regions1.
USA
Investment professionals: 161
Relationship managers: 144
Europe
Investment professionals: 393
Relationship managers: 390
Asia-Pacific
Investment professionals: 138
Relationship managers: 188
1 As of 30.06.2011.
… with a foundation of the supportive Ownership of Allianz SE – one of the world‘s leading insurance companies
A Global equity platform at Allianz Global Investors
A global equity platform enabling to invest in the best European stocks
Truly global platform allows us to compare and contrast/identify and invest in the best stocks in Europe for your portfolioTruly global platform allows us to compare and contrast/identify and invest in the best stocks in Europe for your portfolio
Cornerstone of our investment processCornerstone of our investment process
Excellent and unique information edge complementing fundamental researchExcellent and unique information edge complementing fundamental research
GlobalGlobal
ResearchResearch
Grassroots®Grassroots®
5
Global research headcount
An average of 14 years of 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 stock, which frames and focuses the analytical process Dedicated sustainability research analysts Complemented by Grassroots® Research
Source: AGI KAG, as at 30 September 2011.
ConsumerFinancial Services
Health Care
Industrials TechnologyTelecom/
Media
Sustainability Research
(SR)
Spec. Sits./Themes
Grassroots® Research
Total
Europe 4 4 3 9 2 3 3 6 3 37
US 4 2 4 3 5 1 1 1 3 24
Asia Pacific 1 3 1 4 3 1 0 0 1 14
Total 9 9 8 16 10 5 4 7 7 75
The cornerstone of the investment process – generating information advantage
6
Grassroots® Research
Methodology: Customised to answer specific questions about key stock
drivers identified by portfolio managers and analysts
Resources: In-house staff of 11 72 reporters 302 Field Force investigators 50,000+ industry contacts
Results: 30+ company/industry studies per month
Mission:
Provide investment professionals with timely business insights that help identify inflection points and increase investment conviction
Grassroots® Analysts
Sector Analysts
Portfolio Managers
Client
Grassroots® Reporters
Field Force Investigators Suppliers
ManagersPhysicians Competitors
Consumers
DistributorsRegulators
Experts Customers
www.grassrootsresearch.com
Source: RCM, as at 30.09.2011.Grassroots® Research is a division of RCM. Research data used to generate Grassroots® Research recommendations is received from reporters and field force investigators who work as independent contractors for broker-dealers. Those broker-dealers supply research to RCM and certain of its affiliates that is paid for by commissions generated by orders executed on behalf of RCM’s clients. RCM is a global asset management company providing active investment strategies. RCM is a company of Allianz Global Investors. RCM is a global investment advisory organisation, consisting of separate affiliated firms, which operates under the brand name RCM
Investment decisions – reality checked
7
Contents
The Case for European Equity Dividend Investing
02
8
Allianz RCM European Equity DividendKey Messages
9
High quality companies with proven dividend records,strong and stable cash flows
Rigorous and transparent investment process
Strong management team with deep experience
9
Allianz RCM European Equity Dividend: Profile
10
High and sustainable dividend income
Long-term capital gains
Reduced volatility due to stock selection
+ The fund‘s dividend-yield amounts to at least 125 % of the average MSCI Europe-yield (at present >5.5%)
+ Equity exposure can be hedged1: 20% of the assets under management may be held in cash in order to protect the capital
+ At least 75% of AUM are placed in European quality stocks with convincing dividend history and high and stable cash-flows (eligibility for the French Plan d’Epargne en Actions (PEA).
+ Experienced and specialised RCM fund manager team: Neil Dwane, Jörg de Vries-Hippen (CIOs) und Solveig Ströer
Success of the strategy and achievement of the goals aimed at cannot be guaranteed. As well, losses cannot be excluded. 1 Sole basis of the sale is the prospectus valid at present as of April 2011.
10
Dividends as Success Factors (I)
11
1This presentation does not permit to draw conclusions about the future performance of a fund investment.
Dividends are more stable than corporate earnings1
Source: Datastream, Capital Market Analysis Allianz Global Investors; data as per 20/01/2012
Dividend stocks are well-established companies & perceived to be healthy, hence tend to be less volatile than the overall market
20/1/127072747678808284868890929496980002040608100200400600800100012001400160018002000MSCI Europe: Development of dividends (indexed)MSCI Europe: Development of corporate profits (indexed)0200400600800100012001400160018002000Source: Thomson Reuters Datastream
Dividends as Success Factors (II)
12
Performance contribution of dividends, indexed 100 (1970)
This presentation does not permit to draw conclusions about the future performance of a fund investment. Source: Datastream; data as per January 2012
12
Dividends account for a major part of performance
20/1/1270727476788082848688909294969800020406081001000200030004000500060007000MSCI Europe - Total return indexMSCI Europe - Price index01000200030004000500060007000Source: Thomson Reuters Datastream
Dividends as a Success Factor (III)
This presentation does not permit to draw conclusions about the future performance of a fund investment. Source: Datastream; data as per 20/01/2012
13
Shareholder-friendly dividend policies particularly prevalent in Europe.
Performance contribution of dividends and share prices 1970 till end of August 2011 in global comparison(annualised).
5.4%6.2%
3.4%
4.1%3.5%
2.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
MSCI Europe MSCI North America MSCI Pacific
Performance contribution of share prices (p.a.) Performance contribution of dividends (p.a.)
Structural Advantage for Dividend Stocks over Bonds – Prospects of Rising Interest Rates & Inflation
14
US 10yr Treasury Yields Purchasing Power at 4% Inflation p.a.
0
50
100
today 5 10 15 20
14
With bond principals and coupons at risk, stocks with sustainable/growing dividends offer an inflation-protected investment vehicle.
Contents
Allianz RCM European Equity Dividend: Investment Process
03
15
15
Investment Philosophy
We strive to generate sustainable returns and capital appreciation by investing in European dividend stocks where we see the ability and willingness to pay consistent, high dividends.
We focus on a company’s dividend paying capabilities
solid balance sheets
high free cash flow generation
strength and future viability of business model.
A company‘s willingness to continually pay high dividends is also crucial: dividend policy, dividend history and management commitment to dividends are key points.
The result is a concentrated portfolio of high quality defensive stocks with high and sustainable dividends, lower volatility than the market and the ability to outperform in the long run.
Generating lower-risk, high and sustainable returns
16
Pay out policy Dividend history
Dividend Yields Based on Past and Future Outlook, Using Internal Research
Status quo: balance sheet quality
Outlook: sustainability of business model
Potential dividend
Pay out potential
Free Cash Flow Generation
What is the companyABLE to pay out?
Focus on
Dividend
Safety
Focus on
Dividend
Safety
Forward looking assessment of dividend yield: own research, own estimates.
What is the company WILLING to pay out?
17
Focus on safety of dividends
In the current environment, stock selection through active management is key
RCM’s Fundamental Research team analyses dividend sustainability and dividend growth prospects
Pre-screening
European companies with dividend yield above average market yield (MSCI Europe)
Dividend safety
High and stable income
RCM quality check
looking at (but not exclusively): Earnings and cash flow
coverage Credit rating Distribution capacity Maximum cash flow Impairment risk Dividend growth
Piotroski-Score as additional control
18
Dividend safety and dividend growth are more important than ever.
Unique Portfolio Construction
19*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 threshold: dividend yield >125% of average dividend yield of index*
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
19
Integration of dividend estimate and company outlook.
Portfolio Construction
20
Targeted minimum yield, at 125% of average index yield with focus on dividend safety.
Sell discipline, in case dividend is revoked or if dividend falls below market yield.
Opportunistically, a Call Overwriting strategy may be implemented to enhance returns.
Tactically, a cash position of up to 20 % can be implemented in order to buffer market fluctuations.
Ability to hedge equity exposure to handle capital market risk (min. equity exposure at 75%).
20
20
Flexible bottom-up approach.
Estimated Dividend Yields
Source: Allianz Global Investors; data as of 31/12/2011. 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
Market Yield
Total portfolioaverage: 5.9
21
35 holdings
Company Examples
22
Munich Re
Munich Re is well positioned in the currently hardening reinsurance market due to its strong balance sheet and its disciplined underwriting
The group has a defensive profile within the sector. Its exposure to credit risks is limited, equity exposure was significantly reduced
The life re-insurance part appears strongly undervalued versus primary life peers
Solvency II should benefit Munich Re as it improves future business prospects. The risk expertise of Munich Re could improve client relationships and increase the chances of differential pricing
Dividend
Powerful combination of high dividend yield, strict capital management and strong balance sheet
Very stable and growing dividend: one of the rare cases in the Financials sector to maintain absolute dividend per share even in the crisis
22
Every stock in the portfolio is a dividend stock
Cash dividend Munich Re (in Euro)
Source: Bloomberg
Company Examples
23
Oesterreichische Post
The mail business in Austria remains the cash cow. While the monopoly in Austria has legally been abolished, the regulatory framework as such guarantees a quasi-monopoly status.
Whilst letter mail is a structurally declining business, cost-cutting and innovative pricing schemes thus far look promising to keep generating the required returns.
The growth portion of the company is the parcel and logistics division, which mainly benefits from a move toward online shopping.
Dividend
The management team is highly focused on (and incentivized according to) cash flow generation
The company is aware of the dividend investors' focus on gradually growing dividends backed by good generation of free cash flow, rather than extraordinary payouts or share buybacks.
Looking to gradually increase dividend
23
Every stock in the portfolio is a dividend stock
Source: Österreichische Post AG
Contents
Allianz RCM European Equity Dividend - Update
04
24
24
Allianz RCM European Equity Dividend - Performance since inception to 31.12.2011
25
Source: Wilshire, IDS, 31.12.2011
25
Performance HistoryAllianz RCM European Equity Dividend AT EUR
Performance up to 31.12.2011
Allianz RCM European
Equity
MSCI Europe TR (Net)*
Active Return
1 Month 1.85 2.10 -0.25
3 Months 5.91 8.93 -3.02
1 Year -1.94 -8.08 6.14
2 Years ann. 6.04 1.05 4.99
Since 31.03.2009 ann. 16.99 15.95 1.04
Closing Prices Gross of Fees, IDS
No Benchmark (EUR)
*This strategy is not managed against any benchmark. The MSCI Europe is show n in order to demonstrate the market development
1.85
5.91
-1.94
6.04
16.99
2.10
8.93
-8.08
1.05
15.95
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
1 Month 3 Months 1 Year 2 Years ann. Since 31.03.2009 ann.
Allianz RCM European Equity Dividend AT EUR MSCI Europe TR (Net)*
Allianz RCM European Equity DividendPerformance attribution vs MSCI Europe – year to date to 31.12.2011
26Source: Wilshire, IDS, 31.12.2011.
*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. This fund is not managed against a benchmark. The MSCI Europe is shown for informal reasons.
26
Active GICS Subindustry Attribution Active MSCI Country Attribution
Cash Cash
Equity EquityIndustry Strategy (Allocation) Country Strategy (Allocation)Stock Selection (Selection) Stock Selection (Selection)
Currency ImpactIntra Period Effect Intra Period Effect
Sector Strategy Country Strategy
Top 3 Industry that HELPED Top 3 Country that HELPEDMaterials PolandTelecom Services FranceFinancials Spain
Bottom 3 Industry that HURT Bottom 3 Country that HURTConsumer Staples AustriaEnergy Switzerland
United Kingdom
Sector Stock Selection
Top 3 Industry that HELPED Top 3 Country that HELPEDFinancials United KingdomUtilities AustriaHealth Care Spain
Bottom 3 Industry that HURT Bottom 3 Country that HURTTelecom Services SwedenConsumer Discretionary BelgiumInformation Technology Netherlands
15.95%
6.86%0.10%
-12.95%8.09%
-16.02%
4.93%
0.00%
Active Contribution
0.67%
6.73%1.80%
3.14%
0.00%
Industry Excess Return
Total Return
14.58%
Port Weight
10.3%
89.7%
Industry Active Weight
-7.36%8.58%-1.16%
-6.77%-2.94%
0.43%
15.35%
19.21%
7.34%
10.42%
-5.38%
9.21%
27.32%
2.19% -0.24%-2.28% -0.74%
6.57%
1.72%
0.97%1.12%
0.66%
-0.31%-1.22%
0.47%
89.7% 0.00% 6.73%
Port Weight Total ReturnActive
Contribution
10.3% 3.14% 0.68%
-0.24%
0.00%
Country Strategy
0.48%
Country Active Weight
Country Excess Return
-5.48% -5.82% 0.26%0.25%
3.30% -26.43% -1.09%
Stock Selection
-0.11%4.34%
0.43%
-7.00%
-0.14% -0.18%
-3.49% 4.50%-5.18% 8.51%
8.31%
2.52%
-0.33%-0.32%
3.76% 35.08%
16.96% 3.81% 28.67%
Country Stock SelectionAverage Industry
WeightIndustry Active
Return
Stock Selection
Average Country Weight
Country Active Return
9.79% 2.50%
-1.02% 2.14%
1.03%
-0.30%
1.74%14.69%
Industry Strategy
1.65% 0.00%
2.99% -0.74%
Allianz RCM European Equity DividendPerformance attribution vs MSCI Europe – year to date to 31.12.2011
27Source: Wilshire, IDS, 31.12.2011.
*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. This fund is not managed against a benchmark. The MSCI Europe is shown for informal reasons.
27
Total TotalPort Bmk Diff Return Port Bmk Diff Return
4.1% 1.3% 2.9% 34.0% 2.0% 0.0% 2.0% -47.4%2.3% 0.0% 2.3% 27.9% 0.5% 0.0% 0.5% -54.1%2.1% 0.0% 2.1% 18.7% 0.7% 0.0% 0.6% -31.1%3.2% 1.6% 1.7% 29.1% 1.4% 0.0% 1.4% -35.6%3.1% 1.6% 1.5% 25.6% 1.7% 0.1% 1.6% -23.5%1.9% 0.5% 1.4% 17.0% 2.3% 0.8% 1.5% -25.5%3.7% 1.0% 2.8% 11.2% 0.0% 1.4% -1.4% 18.3%2.5% 0.0% 2.4% 3.6% 0.0% 2.9% -2.9% 5.2%3.8% 0.0% 3.8% 1.3% 0.0% 1.1% -1.1% 24.1%1.1% 0.2% 0.9% 10.6% 1.3% 0.0% 1.3% -27.6%
27.9% 6.1% 21.7% — 9.9% 6.3% 3.5% —
Total TotalPort Bmk Diff Return Port Bmk Diff Return
3.8% — 3.8% 1.3% — 2.9% -2.9% 5.2%3.4% .3% 3.1% -9.0% .4% 2.4% -2.0% 2.1%4.1% 1.3% 2.9% 34.0% — 2.0% -2.0% 5.8%3.7% 1.0% 2.8% 11.2% .3% 1.9% -1.6% 5.0%2.5% .0% 2.4% 3.6% — 1.4% -1.4% -18.0%2.9% .5% 2.4% -13.8% — 1.4% -1.4% 18.3%2.4% — 2.4% 1.8% — 1.3% -1.3% -27.0%2.3% — 2.3% 27.9% — 1.1% -1.1% 24.1%2.1% — 2.1% 18.7% — 1.1% -1.1% -22.1%2.4% .3% 2.1% -15.2% — 1.1% -1.1% 10.1%
29.6% 3.4% 26.3% — .7% 16.6% -15.9% —
Positive Active Contributors Negative Active Contributors
Performance Worst
Nestle SaOesterreichische Post A
Subtotal
Fielmann Ag
Overweighted Overweighted
174 -603 bp257 905 bpUnderweighted Underweighted
31 940 bp 22 -569 bp
288 1845 bp 196 -1172 bp
Enel
Telenor Asa
AstrazenecaMapfre Sa
109 bp77 bp74 bp
GlaxosmithklineRoche Holdings Ag
Unilever PlcAllianz Se
Bolsas Y MercadosHays PlcKappahl Ab
Name Name(% of Total) Active
Contribution
Bg Group
421 bp
74 bp Bhp Billiton Plc77 bp Sanofi
Subtotal Subtotal
British American Tobacc 109 bp BpAstrazeneca 53 bp Novartis Ag
52 bp
Bolsas Y Mercados
Name
British American Tobacc
BestActive Contributors
Average Weight(% of Total) Active
Contribution
41 bp
52 bp45 bp
634 bp
69 bp59 bp55 bp53 bp
Active Contribution
Average Weight(% of Total)
Performance
-53 bpBaloise Holding Ag -42 bp
-105 bp-70 bp
Mediaset -54 bp
Average Weight
Name
Performance
-34 bp
Average Weight
-34 bpKoninklijke Kpn Nv 4 bp Hsbc Holdings Plc 34 bpOesterreichische Post A 45 bp Nestle Sa
-16 bp
Banque Cantonale Vaudoi 23 bp Rio Tinto
16 bpFrance Telecom -11 bp Unilever Plc -34 bpMapfre Sa
-32 bp
-27 bp
-41 bp
Marine Harvest Asa
Subtotal -498 bp
Bijou Brigitte -32 bp
-34 bpSanofi -32 bp
(% of Total) Active Contribution
-65 bp
Aviva -5 bp18 bpFielmann Ag
-18 bp
29 bp
Siemens Ag
Biggest BiggestOverweights Underweights
Performance
Active Contributors
Allianz RCM European Equity DividendCountry allocation vs MSCI Europe (as at 31.12.2011)
28
Source: IDS, 31.12.2011. The fund has no benchmark. The MSCI Europe is shown for informal reasons.
28
Country of Risk %PF Weight %BM Weight Delta
Finland 6.64 1.30 5.34
Austria 4.64 0.37 4.26
Netherlands 6.89 3.86 3.03
Poland 2.29 0.00 2.29
Italy 4.89 3.52 1.37
Norway 2.78 1.44 1.34
Germany 13.48 12.15 1.33
Kazakhstan 0.00 0.09 -0.09
Ireland 0.00 0.45 -0.45
Sweden 3.51 4.78 -1.27
Belgium 0.00 1.47 -1.47
Denmark 0.00 1.63 -1.63
Switzerland 11.11 13.37 -2.26
France 11.26 13.93 -2.67
Spain 1.96 5.08 -3.12
United Kingdom 30.56 35.76 -5.21
5.34
4.26
3.03
2.29
1.37
1.34
1.33
-0.09
-0.45
-1.27
-1.47
-1.63
-2.26
-2.67
-3.12
-5.21
-6 -4 -2 0 2 4 6
Finland
Austria
Netherlands
Poland
Italy
Norway
Germany
Kazakhstan
Ireland
Sweden
Belgium
Denmark
Switzerland
France
Spain
United Kingdom
Allianz RCM European Equity DividendSector allocation vs MSCI Europe (as at 31.12.2011)
29
Source: IDS, 31.12.2011. The fund has no benchmark. The MSCI Europe is shown for informal reasons.
29
GICS Sector %PF Weight %BM Weight Delta
Telecom Services 20.90 7.08 13.82
Utilities 7.80 4.94 2.86
Health Care 14.77 12.18 2.58
Materials 10.02 9.55 0.48
Industrials 10.08 10.51 -0.43
Consumer Discretionary 5.94 8.01 -2.07
Financials 15.68 17.75 -2.08
Information Technology 0.00 2.88 -2.88
Energy 8.64 12.72 -4.08
Consumer Staples 6.17 14.38 -8.21
13.82
2.86
2.58
0.48
-0.43
-2.07
-2.08
-2.88
-4.08
-8.21
-10 -5 0 5 10 15
Telecom Services
Utilities
Health Care
Materials
Industrials
Consumer Discretionary
Financials
Information Technology
Energy
Consumer StaplesMarket Cap Split %PF Weight %BM Weight
3bn <= MarketCap 85.75 96.92
1bn <= MarketCap < 3bn 12.24 3.06
MarketCap < 1bn 2.01 0.02
Allianz RCM European Equity DividendTop holdings vs MSCI Europe (as at 31.12.2011)
30
Source: IDS, 31.12.2011. The fund has no benchmark. The MSCI Europe is shown for informal reasons.
30
Top 10 Overweights %PF Weight %BM Weight %Overweight
OESTERREICHISCHE POST A 4.64 0.00 4.64
ALLIANZ SE 4.93 0.71 4.22
KEMIRA OY 3.73 0.00 3.73
ASTRAZENECA 4.59 1.01 3.57
BRITISH AMERICAN TOBACC 5.02 1.53 3.49
KONINKLIJKE DSM NV 3.39 0.12 3.27
KONINKLIJKE KPN NV 3.51 0.29 3.22
VINCI 3.45 0.32 3.13
DEUTSCHE TELEKOM AG 3.67 0.53 3.14
HENNES & MAURITZ 3.51 0.54 2.97
Top 10 Holdings %PF Weight %BM Weight %Overweight
ROYAL DUTCH SHELL 5.39 3.85 1.55
BRITISH AMERICAN TOBACC 5.02 1.53 3.49
ALLIANZ SE 4.93 0.71 4.22
OESTERREICHISCHE POST A 4.64 0.00 4.64
ASTRAZENECA 4.59 1.01 3.57
GLAXOSMITHKLINE 4.43 1.89 2.54
KEMIRA OY 3.73 0.00 3.73
DEUTSCHE TELEKOM AG 3.67 0.53 3.14
HENNES & MAURITZ 3.51 0.54 2.97
KONINKLIJKE KPN NV 3.51 0.29 3.22
Contents
Appendix
05
31
31
Portfolio Manager Biographies
32
Neil Dwane Chief Investment Officer, Europe RCM
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 de Vries-Hippen Co-CIO European Equities
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-Equity funds 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.
Source: RCM; data as per 31/12/2010
Solveig Ströer European 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 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 MScEcon degree 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.
32
Portfolio Style Skyline™
-0.7
4.0
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0.1 0.2
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-0.7
0.5
-0.5 -0.5
-1.9
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-1.3
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Style Factors
Sty
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ilt™
33
Style skyline
Allianz RCM Europe Equity Dividend, vs. MSCI Europe
Data as at 31/12/2011
True to label – clear dividend tilt versus broad market
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):
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 6Improving productivity(asset turnover > prior period)
2 Positive operating cash flow 7Growing profitability(return on assets > prior period)
3Earnings quality(operating cash flow > net income)
8Issuing stock(share outstanding </= prior period)
4Decreasing debt(total debt/assets < prior period)
9Competitive position(gross margin > prior period)
5 Increasing working capital
Source: Morgan Stanley, Stanford Graduate School of Business
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Allianz RCM European Equity Dividend Overview
Source: Allianz Global Investors; data as per 30/11/2011
1 TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year. 2 TER of abridged business year.
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Share class A - EUR AT - EUR CT - EUR IT - EUR
Benchmark
Umbrella Allianz Global Investors Fund
Management company Allianz Global Investors Luxembourg S.A.
Sub-manager Allianz Global Investors KAG, Frankfurt
Custodian bank State Street Bank Luxembourg S.A.
Risk Class
Fund manager Jörg de Vries-Hippen & Neil Dwane
Financial year end 30/9/
Net assets 236.36 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 AT, FR, DE, GR, HK, LU, MC, NL, PL, SG, CH
AT, FR, DE, GR, HK, HU, IT, LU, MC, NL, PL, SG, ES, CH
AT, DE, GR, HK, HU, IT, LU, MC, NL, PL, PT, SG, ES, CH
AT, DE, GR, HK, HU, LU, MC, NL, PL, SG, ES, CH
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 105.26 mn.EUR 33.32 mn.EUR 2.19 mn.EUR 95.59 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
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4 : risk aware
Allianz RCM European Equity Dividend
Source: Allianz Global Investors; data as per 30/12/2011
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
Opportunities
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
Risks
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Disclaimer
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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 is deemed to be marketing material according to Art. 19 section 2 sentence 2 of EU Directive 2004/39/EG (“MiFiD”). 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 Mainzer Landstrasse 11-13, D-60329 Frankfurt/Main. Allianz Global Investors Europe GmbH is licensed as a provider of financial services (Finanzdienstleistungsinstitut); for the conduct of its business activities, Allianz 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]
Source: Allianz Global Investors; data as per 30/11/2011
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Thank you!
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