allianz rcm eeg presentation citywire berlin 4 nov2011 finalws

Allianz RCM

Europe Equity

Growth Going for Growth

November 2011

Information for fund distributors & institutional

investors. Not for circulation to private investors.

© Copyright Allianz Global Investors AG 2011 - 2

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October 2011

Content

1. Welcome to RCM

2. The Europe Equity Growth strategy: Investment Process

3. RCM‗s Equity Platform at Work: Stock Examples

4. The Attractiveness of Growth Stocks

5. Europe Equity Growth Strategy – Update

6. Appendix

© Copyright Allianz Global Investors AG 2011 -

1

Welcome to RCM

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October 2011


Allianz Global Investors – a leading global asset manager well

positioned to protect and enhance our clients' wealth…

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October 2011

… 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 Regions with total AuM of € 526 bn1.

USA

Investment professionals: 161

Relationship managers: 144

Europe



Asia-Pacific



1 As of 30.06.2011.

… with a foundation of the supportive Ownership of Allianz SE – one of the world‗s leading insurance

companies


RCM: asset manager of Allianz Global Investors

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October 2011

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 portfolio

Cornerstone of our investment process

Excellent and unique information edge complementing

fundamental research

Global

Research

Grassroots®


A global asset management company

Over 440 investment, research and business professionals across the world

Over 270 investment professionals

Virtual 24 hour office – structured to promote communication and information flow

Global investment infrastructure customised to provide highest quality management of fundamental and quantitative

information; from research to portfolio management to trading, compliance and client service

Americas >50 investment

professionals

Europe >180 investment

professionals

Asia Pacific >30 investment

professionals

Source: RCM, as at 30 June 2011.

6

RCM‘s structure facilitates information travelling faster and more freely

Americas >50 investment

professionals

Europe >180 investment

professionals

Asia Pacific >30 investment

professionals

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October 2011


Global research team

An average of 14 years of industry experience, seven of which with RCM

Innovative and proprietary investment tools

Analysts manage sector and thematic mandates

Each analyst conducts circa 100 meetings per year with corporate management

Research identifies the key drivers of each stock, which frames and focuses the analytical process

Dedicated sustainability research analysts

Complemented by Grassroots® Research


Consumer Financial

Services

Health

Care Industrials Technology

Telecom/

Media

Sustainabilit

y Research

(SR)

Spec. Sits./

Themes

Grassroots® Research

Total

Europe 4 5 3 9 2 3 3 6 3 38

US 3 2 4 3 5 1 1 1 3 23

Asia Pacific 2 3 1 4 2 1 0 0 1 14

Total 9 10 8 16 9 5 4 7 7 75

The cornerstone of the investment process – generating information advantage

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October 2011


Grassroots® Research

Methodology:

Customised to answer specific questions about key stock

drivers identified by portfolio managers and analysts

Resources:

In-house staff of 11

74 reporters

298 Field Force investigators

50,000+ industry contacts

Results:

30+ company/industry studies per month

Mission:

Provide RCM 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

Managers

Physicians Competitors

Consumers

Distributors

Regulators

Experts Customers

www.grassrootsresearch.com


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.

8

Investment decisions – reality checked

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October 2011

http://www.grassrootsresearch.com/


RCM‘s expertise

9

Exploiting an information advantage

Country/

Regional

Equity

Strategies

Global

Equity

Strategies

Emerging

Markets

Equity

Thematic

and Sector

Strategies

Total

Return and

Multi-Asset

Global Research

Company

Research

Grassroots®

Research

Macro

Research

Sustainability

Research

Systematic

Research

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October 2011


2

The Strategy Europe Equity Growth: Investment process

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October 2011


Europe Equity Growth Strategy A growth investment for the whole market cycle

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October 2011

Performance (back office net of fees)

rolling 3 Years annualised, 30.09.2011

(every month-ending rolling 3-year period

since 31st of May 2003)

This presentation aims to demonstrate the qualities and track record of the

strategy Europe Equity Growth, reflected in several share classes and

segregate accounts. For the purpose of the presentation, we illustrate the

characteristics of the strategy via a representative account. The

performance track record of the composite is shown at the end of this

presentation (slide 30). The strategy's performance is demonstrated by the

representative account Allianz RCM Europe Equity Growth from October

2006 On. Data prior to 16.10. 2006 are based on Allianz RCM Wachstum

Europa. Past performance is no reliable indicator for future performance.

Source: Pico, IDS, backoffice net off fees, figures as per 30.09.2011. All figures in Euro.

-15

-10

-5

0

5

10

15

20

25

30

-15 -10 -5 0 5 10 15 20 25 30

Eu

rop

e E

qu

ity G

row

thS

trate

gy

MSCI Europe

Against MSCI Europe

The Europe Equity Growth strategy outperformed the European equity market!


Investment Style Team Growth: idea generation Input from all sources of RCM‘s global equity platform

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October 2011

RCM‘s global equity platform powers the idea generation process - over two thirds of the European

universe covered in house

Grassroots®

Research

European Equity

Portfolio

Management

Teams

Macroeconomic

Research

Global Research

Platform

Matthias Born

Portfolio Manager

Allianz RCM Euroland Equity Growth

10 years experience

Specialty: Germany, Switzerland,

Austria

Thorsten Winkelmann

Portfolio Manager

Allianz RCM Europe Equity Growth

15 years experience

Specialty: UK, Ireland

Investment Style Team Growth

Sell-side

Research

Value / Income

Small Mid Caps

Absolute Return/

Unconstrained

High Alpha

Sustainability

Research

Andreas Hildebrand

Portfolio Management Associate

4 years experience

Specialty: Southern Europe

Robert Hofmann

Co-Portfolio Manager


6 years experience

Specialty: Scandinavia

Source: RCM, data as of 01.04.2011

Company

Meetings


Growth investment philosophy Product philosophy for a consistent investment process

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October 2011

Reliable and consistent performance over a market cycle

Note: Past performance is no reliable indicator for future performance.

The research-driven investment

process is based on bottom-up

fundamental stock selection.

We identify stocks with

structurally above average

earnings and cash flow growth

which the market has not yet

fully anticipated.


The investment process is focused on structural growth

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October 2011

Structural Growth is less dependent on global GDP growth

Growth

in earnings and cash flows

Structural Component Cyclical Component

strong multiple expansion

relative to the market

limited multiple expansion

relative to the market

driven by one or more of the

following drivers:

1. Secular growth driver

2. Technological leadership

3. Superior business model

driven by the economic growth of the

countries the company is doing

business in

GDP: Global Domestic Product.


Selection of structural growth companies

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October 2011

Performance driven by identification of companies successfully delivering long-term structural growth

Source: Competitive Strategy: Techniques for Analyzing Industries and Competitors,

von Michael E. Porter, 1980. Design Allianz Global Investors KAG 2010. Substitutes

Intensity of

rivalry

Industry

competitors

New entrants

Suppliers Buyers

Looking at Porter’s 5 - Forces Model:

Industry positioning is critical

Competitive advantages drive the margins

and the returns

Bargaining

power of

suppliers

Bargaining

power of

buyers

Threat of

new entrants

Threat of

substitutes


Stock selection Europe Equity Growth Three factors determine the selection of a growth stock

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October 2011

Stock-picking is key driver of investment results

Companies benefiting from

a secular growth driver

technological leadership

cost leadership

a superior business model

Factors influencing the market‘s

view of a stock

Announcements (earnings,

contracts, products) as possible

triggers

Growth potential not yet fully

anticipated in the price

STRUCTURAL GROWTH


3

RCM‘s equity platform at work: Stock Examples

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October 2011


Elekta‘s business model: producer of radiotherapy equipment

for the non-invasive treatment of (brain) cancer

18

Long-term investing in Elekta based on the assessment of the business model as superior - the Europe

Equity Growth team discovered the investment case in 2006

Varian

32%

Siemens

28%Elekta

40%

Market share in segment Linac (linear accelerator

for radiotherapy) in China

Radiotherapy is worldwide a tight item!

Elekta is the second largest provider of

radiotherapy worldwide

→ Leading in China!

Source picture: Elekta

The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio.

The average investment horizon of the fund is 3 to 5 years.

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October 2011


Elekta: portfolio position, share price, performance contribution

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October 2011

Long-term investing in Elekta paid off – the superior business model started to outperform 2 years ago

Performance Attribution Analysis

31.01.2007 - 31.07.2011

Average Net Stock

Company Name Average Return Contrib Average Return Contrib Weight Contrib Select

Weight (%) Weight (%) Diff. ABv TOT

Saipem 1.678 195.637 2.972 0.249 113.755 0.171 1.429 2.8 2.373

Compagnie Financiere Richemont 1.394 183.3 2.945 0.14 169.847 0.181 1.254 2.764 2.274

Inditex 2.99 61.246 1.402 0.356 61.246 0.176 2.635 1.227 2.223

Atlas Copco Ab 1.607 73.508 2.17 0.432 66.211 0.253 1.175 1.917 2.005

Elekta 1.35 99.84 1.81 - - - 1.35 1.81 1.95

British American Tobacc 2.747 71.291 1.954 1.079 71.291 0.704 1.668 1.249 1.933

Novo-Nordisk As 1.36 180.41 1.976 0.707 180.41 0.618 0.653 1.357 1.85

Europe Equity Growth S&P Europe LargeMidCap Growth

0

0.5

1

1.5

2

2.5

3

3.5

4

5

10

15

20

25

30

35

Share Price Elekta Portfolio Position Elekta (%)

The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio.

The average investment horizon of the fund is 3 to 5 years. Past performance is no relíable indicator for future performance.


Elekta as investment case: intensive monitoring of the stock

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October 2011

The European Equity Investment Style Team Growth initiated proprietary research and Grassroots®

studies from 2007 onwards

Elekta: Investment History

Elekta: Investment History Europe Equity Growth

2007 January Europe Equity Growth initiates a small position of 0.3%

2008 August Europe Equity Growth has established a position of 1.3%

2011 May Europe Equity Growth's position has doubled through multiple expansion

Elekta: GrassrootsSM

Studies

Elekta in the US: 2008 November 2009 March 2009 October 2010 September

Elekta in Brazil: 2009 October 2011 January 2011 June

Elekta in China: 2009 October 2011 June

Elekta in Europe: 2008 March 2008 November 2009 March 2009 October 2010 September 2011 April

Gamma Knife competitiveness: 2007 June

RM Global Research Studies

RIMS Notes: 2008 August 2008 September 2008 November 2008 December 2009 February 2009 April

2009 June 2009 August 2009 November 2009 December 2010 January 2010 April

2010 November 2011 June 2011 July 2011 August

RCM Vote: 3

The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio. The average investment

horizon of the fund is 3 to 5 years. RIMS is a proprietary research software, enabling the global knowledge exchange as a virtual 24hour communication process. RCM Vote: Proprietary Analyst Recommendation ranging

from top 5 to bottom 1.


Elekta versus MSCI Europe - relative evaluation chart:

PE, EPS and relative share price 1994 - 2011

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October 2011

The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the portfolio. The average investment

horizon of the fund is 3 to 5 years. PE: Price to Earnings Ratio. EPS: Earnings per Share.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

0

20

40

60

80

100

120

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Price EPS

PE (right) PE = 1

Elekta 'B' / MSCI Europe

Our proprietary Evaluation Chart discloses the superior earnings situation of Elekta during the 08‘ crisis


Investment case Elekta: intensive research and cooperation

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October 2011

Patrick Fuchs,

PH.D., RCM

Healthcare Analyst

The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of the

portfolio. The average investment horizon of the fund is 3 to 5 years. CEFA: Chartered European Financial Analyst. The picture above depicts a recent screenshot of a content frame of RIMS.

Healthcare analyst and fund managers work closely together and contact Elekta‗s management on a

regularly basis.

Elekta‗s analyst, Patrick Fuchs, is a CEFA qualified Equity analyst and molecular biologist (PH.D)

with management experience in the pharma industry.


Elekta: high quality cancer radiation treatment equipment

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October 2011

February 2007: win market share in a fast growing market worldwide […] position in the fast growing

Asian/Chinese market. […] acquisition of Impac gives a bigger exposure to the higher margin software

segment and allows for substantial cross-selling opportunities to Impac's customers that are currently users of

competitor's products by providing only one single solution.‖

March 2008: ―The problem in Asia[…] - has been hospital purchasing almost disappearing in China in

2006/07, as hospitals have been waiting for new purchasing guidelines. That is now in place and Elekta says

the recovery has been fast, even better than they would have thought. […] exposure to China has increased

and they will start supplying a new "low-cost" machine next year.‖

July 2008: ―gained strongly […] fourth-quarter profit rose by 43% because of a record backlog of orders.

Elekta‘s order backlog reached 4.58 billion kronor on Q1 2008 after the equipment maker has introduced

several new products. […] and benefit from its strong position in the Asian (Chinese) market. ―

January 2011: ―[…] Elekta has 40% market share in China and a strong position in Brazil. Q2 2010 results

came in well ahead of expectations, with US activity improving . Asian sales contribution was a positive

surprise, with a significant rise in orders. […] volume growth in emerging markets is 10-20% […] Elekta

aims to introduce major new products every second or third year, with the launch of the Synergy device

platform three years ago being the latest major launch.

(Source: Monthly portfolio comments of European Equity Investment Style Team Growth)

Robert Hofmann,

Portfolio Manager,

Strategy European

Equity Growth

Investment Story 2007 to 2011: Documentation from the beginning

The investment case of Elekta serves as an example providing information of the portfolio‘s present structure. This does not imply that shares of Elekta are permanent constituents of

the portfolio. The average investment horizon of the fund is 3 to 5 years.


4

Attractiveness of growth stocks

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October 2011


Growth stocks deserve a share-price premium, but don‗t get

it at present

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October 2011

As long as the market rates low and high growth stocks equally - growth stocks remain undervalued

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortisation.

High EBITDA growth stocks have been derated...Growth is based on consensus Year 3 estimates

Source: I/B/E/S, Datastream, Goldman Sachs Global ECS Research; August 2011

0

5

10

15

20

25

30

99 00 01 02 03 04 05 06 07 08 09 10 11

High growth stocks Low growth stocks

High growth stocks - Average Low growth stocks - Average


History displays a premium on earnings growth and sales growth

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October 2011

Over the last 13 years markets paid a premium on high earnings and sales growth

P/E multiples: Price/Earnings multiples

Average P/E multiples historically (1997 to 2010) for companies falling into different sales and earnings growth bands

Sales and earnings growth bands are based on consensus year three forecasts

< -10% -10% - 0% 0% - 5% 5% - 10% 10% - 15% 15% - 20% 20% - 30% > 30% All EPS growth:

Less than zero 10.8 10.9 11.5 12.3 14.3 14.6 15.5 18.3 12.4

0% - 2% 11.5 10.9 11.3 12.0 13.1 14.0 13.9 15.8 12.3

2% - 4% 11.0 11.4 11.6 12.0 12.7 13.3 13.5 15.8 12.5

4% - 6% 12.1 11.5 12.1 12.7 13.6 14.6 14.6 16.1 13.4

6% - 8% 13.2 12.8 12.1 13.2 14.8 15.3 15.7 16.8 14.5

8% - 10% 14.6 13.7 13.9 14.0 16.2 16.5 17.3 17.6 15.9

10% - 12% 14.0 13.5 13.7 14.0 16.4 17.7 17.3 19.5 16.5

12% - 100% 15.1 13.8 14.2 14.7 16.8 19.6 20.1 21.0 18.5

All sales growth: 11.5 11.5 11.9 12.7 14.6 16.0 16.7 17.9 14.3

Source: I/B/E/S, Datastream, Goldman Sachs Global ECS Research, August 2011

Earnings growth

Sa

les

gro

wth


The current environment shows an unwillingness to pay for growth

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October 2011

The multiples of stocks with high forecasted growth show currently not the expansion deserved

P/E multiples: Price/Earnings multiples

Current* average P/E multiplesfor companies falling into different sales and earnings growth bands

Sales and earnings growth bands are based on consensus year three forecasts

< -10% -10% - 0% 0% - 5% 5% - 10% 10% - 15% 15% - 20% 20% - 30% > 30% All EPS growth:

Less than zero 13.5 12.4 7.2 9.5 10.8 6.4 10.8 6.1 9.9

0% - 2% N/A 12.1 9.0 7.8 10.9 8.8 13.9 7.4 9.4

2% - 4% 5.7 8.9 9.9 9.2 7.8 9.3 7.3 12.7 9.1

4% - 6% N/A N/A 10.0 9.7 11.0 8.7 8.7 9.2 10.0

6% - 8% 8.3 N/A 11.0 13.7 11.3 13.3 8.8 14.4 11.9

8% - 10% 3.3 N/A 10.0 15.2 13.0 12.6 10.6 9.0 12.7

10% - 12% N/A 9.5 N/A 11.7 13.6 14.5 13.8 10.5 13.1

12% - 100% 11.2 23.4 10.3 5.1 15.8 14.8 14.2 12.0 13.9

All sales growth: 10.6 12.6 9.5 10.2 11.3 11.7 10.1 10.3 10.7

Source: I/B/E/S, Datastream, Goldman Sachs Global ECS Research

* as of August 2011

Earnings growth

Sa

les

gro

wth


5

Europe Equity Growth Strategy: Update

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October 2011


Allianz RCM Europe Equity Growth Performance 30.09.2011

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October 2011

Source: Pico, IDS, 30.09.2011. Past performance is no reliable indicator for future performance.

Performance History

Allianz RCM Europe Equity Growth A EURS&P EUROPE

LARGEMIDCAP GROWTH

Performance up to

30.09.2011

Allianz RCM

Europe Equity

Growth A EUR

Benchmark* MSCI EuropeActive Return

vs BM*

1 Month -2.75 -5.08 -4.47 2.33

3 Months -12.64 -16.51 -16.37 3.87

1 Year -3.56 -9.57 -10.26 6.01

2 Years ann. 11.83 1.13 -0.70 10.70

3 Years ann. 11.30 0.12 -1.27 11.18

5 Years ann. 3.30 -3.60 -5.23 6.90

Since 31.05.2003 ann. 9.95 4.32 4.56 5.40

Backoffice Prices Net of Fees, IDS

*BM: S&P Europe LargeMidCap Growth Return Net since 01.08.2008

BM: S&P Citigroup PMI Europe Growth total ret. Since 31.05.2003

- 2.75

- 12.64

- 3.56

11.83 11.30

3.30

9.95

- 5.08

- 16.51

- 9.57

1.13 0.12

- 3.60

4.32

- 4.47

- 16.37

- 10.26

- 0.70 - 1.27

- 5.23

4.56

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

1 Month 3 Months 1 Year 2 Years ann. 3 Years ann. 5 Years ann. Since 31.05.2003

ann.

Allianz RCM Europe Equity Growth A EUR Benchmark* MSCI Europe


Allianz RCM Europe Equity Growth Performance 30.09.2011

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October 2011

Source: Pico, IDS, 31.07.2011. Past performance is no reliable indicator for future performance.

Performance History

Allianz RCM Europe Equity Growth A EUR

Performance up to

30.09.2011

Allianz RCM

Europe Equity

Growth A EUR

Benchmark* MSCI EuropeActive Return

vs BM*

Year to date -11.76 -15.54 -15.61 3.78

YEAR 2010 31.54 12.23 11.10 19.31

YEAR 2009 49.37 33.28 31.60 16.09

YEAR 2008 -40.27 -41.49 -43.65 1.22

YEAR 2007 6.97 6.63 2.69 0.34

YEAR 2006 16.40 16.01 19.61 0.39

YEAR 2005 34.90 26.73 26.09 8.17

YEAR 2004 6.07 8.67 12.18 -2.60

31.05. - 31.12.2003 19.53 15.13 17.75 4.40

Backoffice Prices Net of Fees, IDS

*BM: S&P Europe LargeMidCap Growth Return Net since 01.08.2008

BM: S&P Citigroup PMI Europe Growth total ret. Since 31.05.2003

S&P EUROPE LARGEMIDCAP GROWTH RETURN NET IN EUR

- 11.76

31.54

49.37

- 40.27

6.97

16.40

34.90

6.07

19.53

- 15.54

12.23

33.28

- 41.49

6.63

16.01

26.73

8.67

15.13

- 15.61

11.10

31.60

- 43.65

2.69

19.61

26.09

12.18

17.75

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

Year to date YEAR 2010 YEAR 2009 YEAR 2008 YEAR 2007 YEAR 2006 YEAR 2005 YEAR 2004 31.05. - 31.12.2003

Allianz RCM Europe Equity Growth A EUR Benchmark* MSCI Europe



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October 2011

Source: Pico, IDS, gross off fees, figures as per 30.09.2011. Past performance is no reliable indicator for performance.

Outperforming since strategy inception

- Europe Equity Growth Rep. Account since 31-5-03: 9.95%

p. a.net of fees back office prices

- MSCI Europe since 31-5-03: 4.32% p.a.

- Europe Growth Benchmark: 4.56% p.a.

Growth as a style: a positive outlook

With a consistent active growth investment approach we

currently find a lot of attractive investment ideas

STRUCTURAL GROWTH


Performance of positions initiated and closed year-to-date

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October 2011

Newly purchased stocks outperformed clearly those sold over the period year-to-date

Source: Wilshire, IDS, data as at 31.10.2011. Figures are approximates, closing prices gross of fees not including intra-day fluctuations or transaction costs. This illustration serves as an example and does not imply any

conclusions regarding future transactions.

Performance of Stocks Purchased and Sold: Allianz RCM Europe Equity GrowthBase Currency : Euro/Deutsche Mark(E/DM) - Euro/Germany

Stocks bought

Month of

Purchase

Average

Portfolio

Weight

Portfolio

Return

Portfolio

Contribution

Full period

stock return

Edenred June 0.37 -0.53 0.031 16.46

Spirax-Sarco Engineering February 0.42 7.63 0.021 2.47

Stocks sold Month of Sale

Tecnicas Reunidas June 0.33 -23.16 -0.143 -36.21

Vedanta Resources July 0.80 -49.07 -0.451 -49.09


Allianz RCM Europe Equity Growth – sector allocation

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October 2011

Source: IDS, Wilshire, 30.09.2011. Allianz RCM Europe Equity Growth versus S&P Europe

LargeMidCap Growth

Market Cap Split %PF Weight %BM Weight

3bn <= MarketCap 81.48 97.43

1bn <= MarketCap < 3bn 16.97 2.24

MarketCap < 1bn 1.54 0.32

GICS Sector %PF Weight %BM Weight Delta

Industrials 26.89 11.46 15.44

Information Technology 11.26 3.48 7.79

Consumer Discretionary 12.99 9.16 3.83

Health Care 14.33 11.19 3.15

Consumer Staples 21.81 20.68 1.13

Energy 3.51 7.69 -4.18

Utilities 0.00 5.45 -5.45

Materials 4.59 10.80 -6.21

Financials 4.61 11.91 -7.30

Telecomm Services 0.00 8.17 -8.17

15.44

7.79

3.83

3.15

1.13

-4.18

-5.45

-6.21

-7.30

-8.17

-12 -7 -2 4 9 14 19

Industrials

Information Technology

Consumer Discretionary

Health Care

Consumer Staples

Energy

Utilities

Materials

Financials

Telecomm Services

Relative Sector Allocation


Allianz RCM Europe Equity Growth – positions

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October 2011

Source: IDS, Wilshire, 30.09.2011. Allianz RCM Europe Equity Growth versus S&P Europe

LargeMidCap Growth

Top 10 Holdings %PF Weight %BM Weight %Overweight

SAP AG 3.47 1.61 1.86

RECKITT BENCKISER GROUP 3.46 0.78 2.67

BRITISH AMERICAN TOBACC 3.25 2.13 1.13

INDITEX 2.84 0.63 2.21

DANONE 2.83 1.40 1.43

HENNES & MAURITZ 2.61 0.81 1.80

SIEMENS AG 2.53 2.03 0.50

SABMILLER 2.48 0.81 1.67

CARLSBERG AS 2.44 0.03 2.41

LINDE AG 2.41 0.58 1.83

Top 10 Overweights %PF Weight %BM Weight %Overweight

RECKITT BENCKISER GROUP 3.46 0.78 2.67

CARLSBERG AS(*M*) 2.44 0.03 2.41

INDITEX 2.84 0.63 2.21

LEGRAND SA 2.36 0.17 2.19

ELEKTA 2.12 0.00 2.12

PRUDENTIAL 2.39 0.29 2.10

SAP AG 3.47 1.61 1.86

LINDE AG 2.41 0.58 1.83

HENNES & MAURITZ 2.61 0.81 1.80

SODEXO 1.96 0.23 1.73


Allianz RCM Europe Equity Growth Performance attribution vs. S&P Style index – year-to-date to 30.09.2011

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October 2011

Source: Wilshire, IDS, 30.09.2011.

*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 Total

Port Bmk Diff Return Port Bmk Diff Return

2.6% 0.4% 2.2% 16.4% 3.4% 0.1% 3.3% -40.2%

0.0% 2.8% -2.8% -34.6% 0.0% 2.9% -2.9% 3.9%

0.0% 2.0% -2.0% -34.4% 2.2% 0.5% 1.8% -38.8%

1.5% 0.4% 1.1% 30.3% 0.0% 3.0% -3.0% -2.8%

1.5% 0.2% 1.2% 19.5% 1.9% 0.1% 1.8% -38.2%

0.0% 0.9% -0.9% -47.1% 0.0% 2.0% -2.0% 5.4%

1.6% 0.3% 1.3% 13.7% 1.3% 0.0% 1.3% -40.5%

0.0% 2.3% -2.3% -30.0% 0.0% 1.6% -1.6% 11.8%

0.0% 1.8% -1.8% -29.5% 0.9% 0.1% 0.8% -49.1%

1.5% 0.0% 1.5% 5.2% 0.6% 0.0% 0.6% -46.7%

8.7% 11.2% -2.5% — 10.4% 10.2% .2% —

Total Total

Port Bmk Diff Return Port Bmk Diff Return

3.4% .1% 3.3% -40.2% — 3.0% -3.0% -2.8%

2.6% .4% 2.2% 16.4% — 2.9% -2.9% 3.9%

3.0% .7% 2.2% -3.8% — 2.8% -2.8% -34.6%

3.2% 1.0% 2.2% 2.0% — 2.3% -2.3% -30.0%

2.5% .4% 2.1% -22.8% — 2.0% -2.0% -11.3%

2.4% .3% 2.1% -13.6% — 2.0% -2.0% 5.4%

2.5% .4% 2.1% -9.6% — 2.0% -2.0% -34.4%

2.3% .4% 2.0% -26.6% — 1.8% -1.8% -29.5%

1.9% — 1.9% 0.0% — 1.6% -1.6% 11.8%

1.9% .1% 1.8% -38.2% — 1.5% -1.5% -32.4%

26.0% 3.9% 22.1% — — 21.9% -21.9% —

Name

Average Weight

Inditex 61 bp Vodafone Group

Carlsberg As -88 bp Nestle Sa

51 bp

32 bp

Hexagon Ab -43 bp

-41 bpElekta

22 bpAnglo American

Glaxosmithkline

Subtotal -462 bp

Mothercare -25 bp

-4 bp

48 bp

32 bp

-44 bp

-55 bp

-24 bp Ubs Ag

Performance

-41 bp

Active

Contribution

18 -418 bp

-8 bp

-42 bp

403 bp

Linde Ag 12 bp Bnp Paribas

Prudential 2 bp Unilever Plc

Compagnie Financiere Ri Telefonica Sa

Vedanta Resources

Vodafone Group

33 bp

(% of Total)

-43 bp

-42 bp

-41 bp

-88 bp

-55 bp

-44 bp

-50 bp

(% of Total) Active

Contribution

156 -948 bp

Average Weight

-32 bp

Performance

Active

Contribution

Average Weight

Active

Contribution

30 bp

32 bp

32 bp

42 bp

38 bp

36 bp

Name

Inditex

BestActive Contributors

Sap Ag 28 bp Bhp Billiton Plc

-13 bp

Saipem

Name

(% of Total)

BiggestUnderweights

Performance

Subtotal Subtotal

Reckitt Benckiser Group 29 bp Rio Tinto

BiggestOverweights

-7 bp

29 bp

Average Weight

(% of Total)

Positive Active Contributors

Subtotal

Essilor International

Bhp Billiton Plc

Rio Tinto

247 705 bp

Shire

Fresenius Medical Care

Overweighted

293 1441 bp

46 735 bp

Underweighted -530 bp

Overweighted

Outotec Oyj

Underweighted 138

Negative Active Contributors

Performance

Unicredit Spa

Ingenico

Ubs Ag

Bnp Paribas

61 bp

51 bp

48 bp

Worst

Glaxosmithkline

Unilever Plc

Active Contributors

Hexagon Ab

Name

Nestle Sa

Sandvik Ab

Carlsberg As


6

Appendix

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October 2011


Biography Thorsten Winkelmann

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October 2011

Facts

Name Thorsten Winkelmann

Designation/Division Portfolio Manager /Investment Style Leader European Equities Growth

Asset Management Unit Allianz Global Investors / RCM

Year of joining company/group 2001

Number of years with company/group 10

Years of experience in securities business/

portfolio management

15

Employment History

09/2001 - today

01/2006 - today

Allianz Global Investors / RCM

Portfolio Manager / Portfolio Management European Equities

09/2001 - 12/2005 Portfolio Management Balanced Portfolios

1996 - 2001 Deutsche Bank AG

Brokerage-Department

Part-time Employment

Academic Qualification

2001 Diplom-Volkswirt (German university degree in economics),

Rheinische Friedrich-Wilhelms-Universität Bonn, Germany


Biography Robert Hofmann

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October 2011

Facts

Name Robert Hofmann

Designation/Division Portfolio Manager/Portfolio Management Strategy - European

Equities/Large Caps

Asset Management Unit Allianz Global Investors

Year of joining company/group 2005

Number of years with company/group 6

Years of experience in securities

business/portfolio management

6

Employment History

01/2005 - today Allianz Global Investors

Portfolio Manager/Portfolio Management Strategy - European

Equities/Large Caps

Academic Qualification

2004 Diplom-Kaufmann (German university degree in business administration),

Universität Frankfurt, Germany


Europe Equity Growth strategy

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October 2011

RCM - EQUITY EUROPE GROWTH

-1.70-2.3310 Years87,2243.6NA3,153.165-2.19-16.562000

-1.65-0.619 Years152,7221.2NA1,845.633-15.54-27.112001

0.243.328 Years98,0910.9NA847.893-32.90-38.362002

6.1611.237 Years91,7711.1NA983.86313.4918.662003

4.9810.046 Years90,4301.0NA859.2038.667.402004

4.2610.575 Years87,7491.2NA1,055.55226.7237.522005

-0.704.714 Years92,5081.4NA1,284.01616.0118.752006

-5.720.413 Years93,4451.50.471,364.75106.639.352007

-11.34-3.782 Years57,1721.30.32768.0311-41.43-39.942008

34.2054.141 YearNANA1.291,325.791334.2054.142009

Benchmark*

p.a. (%)

Composite

Gross

Return p.a.

(%)

Period

Total Firm

Assets

GLOBAL in

Mio

% of FIRM

assets

GLOBAL

Composite

Dispersion

(%)

Period End

Total

Assets in

Mio

No of

Portfolios

Benchmark*

(%)

Composite

Gross

Return(%)

Period

-1.70-2.3310 Years87,2243.6NA3,153.165-2.19-16.562000

-1.65-0.619 Years152,7221.2NA1,845.633-15.54-27.112001

0.243.328 Years98,0910.9NA847.893-32.90-38.362002

6.1611.237 Years91,7711.1NA983.86313.4918.662003

4.9810.046 Years90,4301.0NA859.2038.667.402004

4.2610.575 Years87,7491.2NA1,055.55226.7237.522005

-0.704.714 Years92,5081.4NA1,284.01616.0118.752006

-5.720.413 Years93,4451.50.471,364.75106.639.352007

-11.34-3.782 Years57,1721.30.32768.0311-41.43-39.942008

34.2054.141 YearNANA1.291,325.791334.2054.142009

Benchmark*

p.a. (%)

Composite

Gross

Return p.a.

(%)

Period

Total Firm

Assets

GLOBAL in

Mio

% of FIRM

assets

GLOBAL

Composite

Dispersion

(%)

Period End

Total

Assets in

Mio

No of

Portfolios

Benchmark*

(%)

Composite

Gross

Return(%)

Period

RCM has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). For purposes of compliance with GIPS the ―firm‖ is defined as RCM ("RCM"), a global investment

advisory organization, consisting of separate affiliated firms, which operates under the brand name RCM. The affiliated firms that comprise the Firm include, among others, RCM Europe (―RCM Europe‖). RCM Europe

presents the RCM - EQUITY EUROPE GROWTH strategy in Europe. For the years ended 2007 and 2008 RCM has been verified by an independent verifier. Additional information regarding the firm‘s policies and procedures

for calculating and reporting performance results is available upon request. To obtain a list and description of all of RCM‘s composites, or for a complete list of the firms that comprise RCM and their periods of verification,

please call +49 69 263 - 12000 or write to RCM, Allianz Global Investors Kapitalanlagegesellschaft mbH, Mainzer Landstraße 11-13 , 60329 Frankfurt am Main. Total Firm assets for the period ending 31 December 2008

were revised in November 2009 to reflect the actual discretionary and non-discretionary assets managed by the Firm.

The RCM - EQUITY EUROPE GROWTH was set up in January 1999, with an inception date of March 1 1997, and contains all accounts managed by RCM Europe according to the RCM Global Investment Process, which

invest in a broad range of European equities, following a growth investment style. The basis for investment decisions is the RCM fundamental macro economic and equity primary research. Decisions on sector allocation are

based on the macro economic input. The stock selection process is research-driven where the results of equity primary research are reflected in a performance-oriented voting of stocks and target prices. Risk control plays an

integral part in the investment process. The composite Benchmark is S&P EUROPE LARGEMIDCAP GROWTH RETURN GROSS IN EUR. In contrast to the benchmark, the portfolios, forming this composite, do contain

cash. The portfolios within this composite may and do invest in non-benchmark securities. Further information is available upon request. The benchmark was changed in January 2002 to reflect the underlying investment

style. Performance results and valuations are presented in EUR. In contrast to the benchmark, composite returns are net of non-reclaimable withholding taxes on dividends, interest and capital gains. Beginning July 1, 2009

the repayable portion of the withholding tax is reported as a deferred asset. The resulting effect is considered to be immaterial. The returns are stated gross of management / advisory and custodial fees. Actual returns will be

reduced by management / advisory fees and other expenses that may be incurred in the management of an account. Depending on the investment size, the standard fee scale for institutional clients starts at 70 bps, and is

subject to a minimum fee.

The dispersion of annual returns is measured by the standard deviation across equal-weighted account returns represented within the composite for the full year♦.

♦ Standard deviation is not considered statistically meaningful when there are fewer than five accounts in the composite during the period.

Past performance is not a reliable indicator of future performance. You should not make any assumptions about the future performance based on this information. Investment results will vary depending on market

conditions, exchange rate fluctuations, the composition of the portfolio of securities, trading expenses, etc. Investment results will vary among individual portfolios within the composite. There may be a difference in the

exchange rate used for calculating benchmark returns and those used for valuation of the portfolios. The effect of these differences is deemed to be immaterial. These factors and possible differences in calculation methods

should be considered when comparing composite results with those published by other investment information providers, investment advisers, investment vehicles and unmanaged indices. Results should also be considered

relative to the risks associated with the investment objectives of the portfolios within the composite.

All details and information contained in this report have been carefully investigated and checked by IDS GmbH – Analysis and Reporting Services (IDS), however IDS does not assume liability for the accuracy and/or

completeness of the content.


Disclaimer

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October 2011

Allianz Allianz RCM Europe Equity Growth is a sub-fund of Allianz Global Investors Fund, which is an open-ended investment company with variable share capital (also known as a SICAV) 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 2009/65/EC.

Allianz RCM Europe Equity Growth may not be registered or authorised for public distribution in the country of residence of investors. Accordingly, it is the responsibility of investors to be aware of 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 Europe Equity Growth in any jurisdiction in which such offer or solicitation would be unlawful or in which the person making such offer or solicitation 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 Europe Equity Growth 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 Europe Equity Growth can only be made on the basis of the latest prospectus of Allianz Global Investors Fund and the key investor information document of Allianz

RCM Europe Equity Growth, complemented by any local supplement to these prospectuses, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published),

copies of which can be obtained in English and – where appropriate – in the respective local language, free of charge, from the management company, Allianz Global Investors Luxembourg S.A., as well

as from Allianz Global Investors Europe GmbH or electronically via www.allianzglobalinvestors.eu.

As with all investment products, a fund‘s past performance is not necessarily a guide to future performance and the value of the shares of Allianz RCM Europe Equity Growth and any income from 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 volatility of fund unit prices may be strongly increased. The

assets of Allianz RCM Europe Equity Growth may be denominated in a variety of currencies and therefore movements in the value of currencies may also affect the value of investors‘ holdings.

Furthermore, the value of the shares of Allianz RCM Europe Equity Growth may be adversely affected by fluctuations in exchange rates between the investors‘ reference currencies and its base currency.

Further information on the risks associated with investments in Allianz RCM Europe Equity Growth -those briefly described above as well as others, if applicable- can be found in the prospectuses of

Allianz Global Investors Fund.

All performance data in respect of Allianz RCM Europe Equity Growth until its launch date (16.10.2006) relates to another fund with an identical investment objective and whose assets are also managed

by Allianz Global Investors Kapitalanlagegesellschaft mbH, namely Allianz RCM Wachstum Europa, formerly named Allianz-dit Wachstum Europa. The latter, which is an open-ended unit trust organised

under the laws of Germany, was launched on 13.01.1997. This does not imply that Allianz RCM Europe Equity Growth will enjoy similar performance in the future.

This document is marketing material. This document has been issued by Allianz Global Investors Europe GmbH, a subsidiary of Allianz Global Investors AG (parent company of the Allianz Global

Investors 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 Global

Investors Group.

Internet: www.allianzglobalinvestors.eu

Thank you

allianz rcm eeg presentation citywire berlin 4 nov2011 finalws

Economy & Finance

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investment case

average investmenthorizon

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