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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
3
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October 2011
© Copyright Allianz Global Investors AG 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
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
© Copyright Allianz Global Investors AG 2011 -
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®
© Copyright Allianz Global Investors AG 2011 -
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
11-11030\P-EUR\WS\041111
October 2011
© Copyright Allianz Global Investors AG 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
Source: RCM, as at 30 June 2011.
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
7
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October 2011
© Copyright Allianz Global Investors AG 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
Source: RCM, as at 30 June 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.
8
Investment decisions – reality checked
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October 2011
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
2
The Strategy Europe Equity Growth: Investment process
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October 2011
© Copyright Allianz Global Investors AG 2011 -
Europe Equity Growth Strategy A growth investment for the whole market cycle
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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!
© Copyright Allianz Global Investors AG 2011 -
Investment Style Team Growth: idea generation Input from all sources of RCM‘s global equity platform
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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
Allianz RCM Europe Equity Growth
6 years experience
Specialty: Scandinavia
Source: RCM, data as of 01.04.2011
Company
Meetings
© Copyright Allianz Global Investors AG 2011 -
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.
© Copyright Allianz Global Investors AG 2011 -
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.
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
3
RCM‘s equity platform at work: Stock Examples
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October 2011
© Copyright Allianz Global Investors AG 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
© Copyright Allianz Global Investors AG 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.
© Copyright Allianz Global Investors AG 2011 -
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.
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
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.
© Copyright Allianz Global Investors AG 2011 -
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.
© Copyright Allianz Global Investors AG 2011 -
4
Attractiveness of growth stocks
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October 2011
© Copyright Allianz Global Investors AG 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
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
5
Europe Equity Growth Strategy: Update
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October 2011
© Copyright Allianz Global Investors AG 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
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
Allianz RCM Europe Equity Growth
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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
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
Allianz RCM Europe Equity Growth – sector allocation
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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
© Copyright Allianz Global Investors AG 2011 -
Allianz RCM Europe Equity Growth – positions
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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
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
6
Appendix
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October 2011
© Copyright Allianz Global Investors AG 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
© Copyright Allianz Global Investors AG 2011 -
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
© Copyright Allianz Global Investors AG 2011 -
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.
© Copyright Allianz Global Investors AG 2011 -
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
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