Allianz Dynamic Multi Asset Strategy 15/50/75. Actively Managed Multi Asset Funds with Different Return Profiles December 2017

Transcription

1 Allianz Dynamic Multi Asset Strategy 15/50/75 Actively Managed Multi Asset Funds with Different Return Profiles December 2017

2 Content A Good Reasons for Multi Asset Solutions Dynamic Multi Asset Strategy 15 / 50 / 75 Facts and Figures / Opportunities and Risks Appendix A 2

3 1 Good Reasons for Multi Asset Solutions 3

4 Real Returns in the Current Low-Rate Environment The Risk of Not Taking Risks Returns of investments perceived as secure are below the rate of inflation 8% 7% 6% 5% 4% 3% 2% 3.7% 3.9% 4.4% 2.7% 3.2% 6.7% 3.3% 6.5% 5.6% Equity investments offer higher return opportunities, but are more volatile in % % 0% -1% -0.3% Money Geldmarkt market 0.1% 0.8% Returns Renditen as at Renditen Returns as at Inflation Eurozone: 1.8 % Government Staatsanleihen bonds Corp. bonds Unternehmensanleihen Dividend Dividendenrendite yield High yield Hochzinsanleihen bonds Emerging market Schwellen- bonds land- anleihen MSCI World Total Return (Net) in EUR Bloomberg Barclays Capital Euro Aggregate Index in EUR Left-hand chart : Source: Allianz Global Investors Global Capital Markets and Thematic Research, IDS GmbH (a 100 % subsidiary of Allianz S.E.), money market = EONIA; government bonds = Bloomberg Barclays Capital Euro Agg TSY Germany [3-5); dividend yield = MSCI Europe (dividend yield); corporate bonds = Bloomberg Barclays Capital Euro-Aggregate Corporate Index; emergingmarkets bonds = JP Morgan EMBI+; EU high-yield bonds = MERRILL LYNCH EURO HIGH YIELD BB-B RATED CONSTRAINED INDEX (HEC4) UNHEDGED IN EUR; inflation Eurozone: euro-area consumer price index (CPI). As at Right-hand chart: Source: IDS GmbH. As at Past performance is not a reliable indicator of future results. 4

5 Finding the Optimal Mix Winners Change Every Year Rang Ø in % Ø 6.8 % p. a. Government bonds industrial countries Government bonds emerging markets Corporate bonds High-yield bonds European equities US equities Emerging markets equities Commodities (ex precious metals) Gold No forecast for the performance of a fund investment. Past performance is not a reliable indicator of future results. All figures on annual basis until Source: IDS GmbH (a 100 % subsidiary of Allianz S.E.). Presentation: Allianz Global Investors. Benchmarks used: European equities: MSCI Europe Total Return (Net). US equities: MSCI USA Total Return (Net). Emerging markets equities: MSCI Emerging Markets Total Return (Net). Corporate bonds: MERRILL LYNCH GLOBAL BROAD MARKET CORPORATE INDEX EUR UNHEDGED. Government bonds industrial countries: JP Morgan GBI Global. Government bonds emerging markets: JP MORGAN EMBI GLOBAL COMPOSITE EUR. High-yield bonds: ML GLOBAL HIGH YIELD INDEX UNHEDGED. Gold: LONDON GOLD MARKET FIXING LTD AM FIX EUR. Commodities (ex precious metals): S&P GSCI Non Precious Metals Official Close Index TR (commodities Index SPGCXPTR USD calculated on behalf of Allianz Global Investors). 5

6 Finding the Optimal Mix Winners Change Every Year Ø 6.8 % p.a Government bonds industrial countries Government bonds emerging markets Corporate bonds High-yield bonds European equities US equities Emerging markets equities Commodities (ex precious metals) Gold Average No forecast for the performance of a fund investment. Past performance is not a reliable indicator of future results. All figures on annual basis until Source: IDS GmbH (a 100 % subsidiary of Allianz S.E.). Presentation: Allianz Global Investors. Benchmarks used: European equities: MSCI Europe Total Return (Net). US equities: MSCI USA Total Return (Net). Emerging markets equities: MSCI Emerging Markets Total Return (Net). Corporate bonds: MERRILL LYNCH GLOBAL BROAD MARKET CORPORATE INDEX EUR UNHEDGED. Government bonds industrial countries: JP Morgan GBI Global. Government bonds emerging markets: JP MORGAN EMBI GLOBAL COMPOSITE EUR. High-yield bonds: ML GLOBAL HIGH YIELD INDEX UNHEDGED. Gold: LONDON GOLD MARKET FIXING LTD AM FIX EUR. Commodities (ex precious metals): S&P GSCI Non Precious Metals Official Close Index TR (commodities Index SPGCXPTR USD calculated on behalf of Allianz Global Investors). 6

7 Return Fluctuations for a 25 % Equity Investment Good/Bad Timing Becomes Less Relevant Over Time Maximum and minimum returns of rolling investment periods, measured as real performance p.a. between 1989 and 2016 Performance p. a. in % Example: In the past, returns p.a. were always positive, provided that the investment period was sufficiently long: Maximum return: 13.9 % Average return: 6.5 % Minimum return: 0.8 % 5 0 Average 25 years: 6.4 % Minimum Average Maximum Rolling periods, in years Source: IDS; As at % equities = MSCI Europe T.R. (Net) EUR unhedged = DAX T.R. (GROSS) = : % bonds = Bloomberg Barclays Capital Euro Aggregate T.R. (ent) EUR unhedged = REXP T.R. =

8 Return Fluctuations for a 50 % Equity Investment Good/Bad Timing Becomes Less Relevant Over Time Maximum and minimum returns of rolling investment periods, measured as real performance p.a. between 1989 and 2016 Performance p. a. in % Example: In the past, returns p.a. were always positive, provided that the investment period was sufficiently long: Maximum return: 13.2 % Average return: 6.9 % Minimum return: 0.3 % 10 0 Average 25 years: 7.4 % Minimum Average Maximum Rolling periods, in years Source: IDS; As at % equities = MSCI Europe T.R. (Net) EUR unhedged = DAX T.R. (GROSS) = % bonds = Bloomberg Barclays Capital Euro Aggregate T.R. (ent) EUR unhedged = REXP T.R. =

9 Return Fluctuations for a 85 % Equity Investment Good/Bad Timing Becomes Less Relevant Over Time Maximum and minimum returns of rolling investment periods, measured as real performance p.a. between 1989 and 2016 Performance p. a. in % Example: In the past, returns p.a. were always positive, provided that the investment period was sufficiently long: Maximum return: 9.4 % Average return: 5.1 % Minimum return: 0.0 % Average 25 years: 6.6 % Minimum Average Maximum Rolling periods, in years Source: IDS; As at % equities = MSCI Europe T.R. (Net) EUR unhedged = DAX T.R. (GROSS) = % bonds = Bloomberg Barclays Capital Euro Aggregate T.R. (ent) EUR unhedged = REXP T.R. =

10 2 Dynamic Multi Asset Strategy 15 / 50 / 75 10

11 Broad investment universe Active asset allocation Active risk management Active security selection Dynamic Multi Asset Strategy At a Glance Broad investment universe Participation in risk premiums of different asset classes Benefit from diversification Three risk-return profiles Active asset allocation Systematic and fundamental approaches Pro- and countercyclical components Aim: additional returns across a market cycle Active risk management Active risk management to reduce risks palpably Active security selection Selection contributions via active management of equities bonds alternative investments Largely unconstrained active multi asset solution. Source: Allianz Global Investors. A performance of the strategy is not guaranteed and losses remain possible. 11

12 Broad investment universe Broad investment universe Numerous Return Sources Alternative asset classes Emerging markets equities Emerging markets bonds Exploit opportunities Commodities EUR bonds + Developed markets equities High-yield bonds The DMAS range of funds enables investors to benefit from return opportunities in diverse sectors. About 60-80% of the portfolios are invested in stocks and bonds from developed countries. Up to 40% may be invested in other return sources. Private equity A performance of the strategy is not guaranteed and losses remain possible. 12

13 Broad investment universe Active asset allocation Dynamic Multi Asset Strategy Three Risk-Return Profiles Investments in euro-area government bonds and global equities to varying degrees Allianz Dynamic Multi Asset Strategy 15 Allianz Dynamic Multi Asset Strategy 50 Allianz Dynamic Multi Asset Strategy 75 SAA: 85% bonds 15% equities SAA: 50% bonds 50% equities SAA: 25% bonds 75% equities Defensive portfolio for conservative investors Equity ratio: 0% - 35% Balanced portfolio for risk-aware investors Equity ratio: 0% - 100% Aggressive portfolio for risk-aware investors Equity ratio: 0% - 125% 1 All profiles offer additional opportunities as alternative investments (such as commodities, REITs, private equity, etc), emerging markets (up to 30%) and high-yield bonds (up to 20%) are included in the portfolios. Source: Allianz Global Investors. The strategic weightings refer to the following indices: MSCI World Total Return (Net) and JP Morgan EMU Government Bond Investment Grade. A performance of the strategy is not guaranteed and losses remain possible. SAA = Strategic Asset Allocation 1 The equity ratio may be lifted above 125% by the use of derivatives. 13

14 Active asset allocation Active risk management The Core of the Investment Process: Active Asset Allocation The three components of active asset allocation A B C + + Market cycle Economic cycle Risk management Exploitation of medium-term trends Procyclical Anticyclical Fundamental analysis Economy Valuations Active risk management Continuous monitoring of the defined risk budget Reduction of risk positions if there is a significant risk that the risk budget is exceeded Goals: Additional returns and risk reduction Goal: Additional returns Goal: Risk reduction Above-average return opportunities and increased stability Source: Allianz Global Investors. A performance of the strategy is not guaranteed and losses remain possible. 14

15 Active weight Active weight Price Price Active asset allocation A Market Cycle: Exploitation of Medium-Term Trends Follow the trends (procyclical), but reduce the active weighting if trends overshoot (anticyclical) Uptrend Downtrend normal excessive normal Build-up of promising investments during an uptrend Partial profit taking in extreme market situations normal excessive normal Reduction of promising investments during a downtrend Partial re-entry in extreme market situations Time Time Time Time Source: Allianz Global Investors. A performance of the strategy is not guaranteed and losses remain possible. 15

16 Active asset allocation A Market Cycle: How We Identify Trends Rules-based component: clear signals indicate trends and exaggerations in the market Asset class Index Trend indicator Equities Bonds Eurozone US Japan Emerging markets EMU investment grade government bonds Euro corporate bonds US government bonds JP government bonds Trend reversal indicator + = Market cycle index Reading example for US equities: Trend indicator: currently very positive trend + Trend reversal indicator: partial overheating of the market segment = Market cycle index: slightly positive outlook, moderate overweight Global high-yield bonds Emerging markets Assessments are made separately for each asset class. Source: Allianz Global Investors. Stylised presentation. A performance of the strategy is not guaranteed and losses remain possible. 16

17 Active asset allocation B Economic Cycle: Fundamental Analysis A fundamental analysis of relevant influences helps to recognise turning points Asset classes Analysis Equity markets Tactical Multi Asset Forum Market Cycle & Trends Bond markets Economic cycle Currencies Valuation Alternative investments Special situations Cash Fundamental analysis Portfolio construction Source: Allianz Global Investors. A performance of the strategy is not guaranteed and losses remain possible. 17

18 Active asset allocation Active risk management C Reduction of Loss Risks via Active Risk Management Individual Tailored to the specific needs of each portfolio Portfolio risk is always in line with the current risk budget Reliable and conservative Prudent evaluation of risks (distribution of extreme/tail risks) Always present Continuous monitoring of portfolio risks Always active, but acting only if necessary Risk management Active Action is taken if risk budget is used to a large extent and if markets remain weak for a prolonged time Portfolio risks are reduced by including money market / hedging instruments Source: Allianz Global Investors. A performance of the strategy is not guaranteed and losses remain possible. 18

19 Fund unit price Active asset allocation Active risk management C Overall Risk Monitoring and Hedging of Tail Risks The active risk management process determines the volume of investments in more volatile asset classes (such as equities) If the risk budget is reduced, up to 100% of the fund s assets may be invested in cash and short-term bonds The risk management aims to reduce price losses in comparison to the historical 12-month high (no formal guarantee) A minimum risk budget is available at any time so that the fund to participate in market rallies Example: 1 12 months (rolling) 12-month high 1 The initial risk budget depends on the highest fund unit price during the past 12 months (12-month high). 2 Initial risk budget Minimum risk budget Risk budget Lower fund price threshold* Time 3 Current risk budget 4 The risk budget is equivalent to the difference between the current fund price and the lower fund threshold (no formal guarantee). 2 3 The risk budget will change over time. If the risk budget declines, a more defensive portfolio stance may be necessary. 4 A minimum risk budget ensures that the fund may invest in riskier assets at any time. Goal: Significant reduction of losses during periods of pronounced weakness Source: Allianz Global Investors. Stylized presentation. A performance of the strategy is not guaranteed and losses remain possible. * The lower fund price threshold is not formally guaranteed. The fund unit price may drop below the intended level at any time. 19

20 Fund unit price Fund unit price Active asset allocation Active risk management C Overall Risk Monitoring and Hedging of Tail Risks Scenario 1: Fund price rises and reaches new 12-month high Scenario 2: Fund price falls and previous 12-month highs expire 12 month 12 month New 12-month high 12-month highs Initial risk budget Lower fund price threshold* Minimum risk budget Current risk budget Risk budget Lower fund price threshold* Time Time Source: Allianz Global Investors. Stylized presentation. A performance of the strategy is not guaranteed and losses remain possible. * The lower fund price threshold is not formally guaranteed. The fund unit price may drop below the intended level at any time. 20

21 Active asset allocation Active risk management Increased Potential Returns and Lower Loss Risks Target distribution of 12-month returns Strategic asset allocation Dynamic Multi Asset Strategy Maximum 1 Increased potential returns over a market cycle 2 2 Participation in gains Average 1 3 Substantial reduction of loss risks 0% 3 Minimum Asymmetrical risk-return profile Schematic presentation which does not reflect current data or performance. 21

22 Broad investment universe Active asset allocation Active risk management Active security selection Experienced Portfolio Manager Specialists for active asset allocation and risk management 1 Broad investment universe Active asset allocation Active risk management Marcus Stahlhacke Professional experience since 1990 Durations from -2 to +10 years Portfolio management team selects successful Allianz Global Investors strategies Active security selection Equities e.g. Best Styles Global Bonds e.g. Advanced Fixed Income Euro Aggregate Alternative investments and other 1 Including Duration Overlay. Data as at

23 Active security selection The Investment Process for the Equity Portion in Detail 1. Research 2. Success factors 3. Portfolio construction Systematic investment style research Fundamental company research Valuation Quality Growth Profits Proprietary research Validation by proprietary Grassroots SM Research 1. Systematic implementation of the success factors 2. Combination of different investment styles within a single portfolio 3. Selection of companies on the basis of fundamental assessments 4. Very diversified portfolio, which includes numerous stocks and is therefore quite robust 5. Continued and comprehensive risk management Goal: Stable performance in comparison to the broad equity market in all market scenarios Grassroots SM Research is a division within the Allianz Global Investors group of companies that commissions investigative research for asset-management professionals. Research data used to generate Grassroots SM Research reports are received from reporters and field force investigators who work as independent, third party research providers, supplying research that is paid for by commissions generated by trades executed on behalf of clients. 23

24 Active security selection Selection Contributions From Active Stock Management: Best Styles Past Performance of the Equity Strategy Composite AllianzGI Best Styles Global Developed Equity Outperformance Jan 99 Oct 17: 1.4 % p. a. Tracking Error: 1.7 % p.a. Information Ratio: 0.8 Volume Strategy: EUR 8.5 bn Volume Strategy incl. Equity portion of multi asset mandates: EUR 24.8 bn Benchmark: MSCI World Total Return (Net) Relative Relative Performance as per of Chances of stable additional returns thanks to active systematic stock selection Source: IDS, as at Composite 0189 Systematic - Best Styles Global Developed; issuance: January Performance gross-of-fees in EUR. This is additional information which complements the description of the GIPS Composite illustration in the Appendix. Past performance is not a reliable indicator of future results. Please note the information at the end of the presentation. Gross returns calculated on a total return basis, including all dividend and interest payments, accrued revenues, realised and unrealised profits and losses, after broker provisions and trading expenses, and excluding any asset management expenses, which will reduce such returns. 24

25 Active security selection The Advanced Fixed Income investment process Global coverage for tailored optimized risk-adjusted portfolios Advanced Analytics Active Positioning Investor s optimised portfolio Trading Desk Investor s specific guidelines and risk/return profile* Structured research framework Blend of Top-Down/Bottom-up Global coverage Unconstrained positioning Accounts for all risk dimensions Monthly and ad-hoc review Incorporates investor s guidelines Execution via dedicated Trading Desks Optimized risk-adjusted returns A performance of the strategy is not guaranteed and losses remain possible. * In the case of mutual funds, mutual fund investment guidelines apply. 25

26 Added value to our investors Composite Advanced Fixed Income Global European Government Bonds Global Aggregate Composite Enhanced Fixed Income Outperf.: 0.29% p.a. Tracking Error: 0.54% p.a. Outperf.: 0.88% p.a. Tracking Error: 0.55% p.a. Information Ratio: 0.53 Information Ratio: 1.61 Volume: mn. EUR Benchmark: JP Morgan EMU Index Composite AllianzGI Advanced Fixed Income Global Jan Dec Jan Sep Volume: mn. EUR Benchmark: Asset Weighted Benchmark 2,5 2,0 1,5 1,0 0,5 0,0-0,5 Relative Performance as of in % YTD Outperf.: 0.49% p.a. Information Ratio: 0.89 Tracking Error: 0.55% p.a. Jan Sep Composite EFI vs. Benchmark Composite AFI Global vs. Benchmark Positive performance in structured Global Fixed Income portfolios. Source: IDS GmbH Analysis and Reporting Services, a wholly owned subsidiary of Allianz SE, as of Composite AllianzGI 0412 Enhanced Fixed Income; Inception Jan The composite AllianzGI 0200 return is linked to the composite AllianzGI 0412 return since the end of Due to the reorganization of Allianz Global Investors, the composite AllianzGI 0412 history ends at the end of The fixed income platform of Allianz Global Investors Kapitalanlagegesellschaft mbh had management responsibilities for the specific composite until the end of 2011 and did not claim compliance with GIPS. Allianz Global Investors GmbH (until Allianz Global Investors Kapitalanlagegesellschaft mbh) claims compliance with GIPS. Past performance is not a reliable indicator of future results. Performance gross-of-fees in EUR. Rounding-differences may occur. 26

27 Allianz Dynamic Multi Asset Strategy 15 Morningstar Rating 3 Portfolio Manager Active asset allocation, security selection and a consistent risk management are at the core of our multi asset expertise. We actively exploit trends on the equity and bond markets. Security selection and alternative investments offer additional return opportunities. Risk management is an integral part of our investment process and aims to palpably reduce losses during major market downturns. Marcus Stahlhacke (investment experience since 1990) Annualised performance in % 1, YTD 1 Year 3 Years 5 Years Fund Benchmark Calendar-year performance in % 1, Fund Benchmark Facts and figures for the unit class - A - EUR ISIN / WKN LU / A117VN Bloomberg ticker ADMA15A LX Launch date of the unit class Fund assets EUR m Risk-return indicator 3 Front-end load in % 3.00 All-in fee in % p.a. currently 1.15 (max. 1.45) TER in % 1.55 Sharpe ratio 3 years / 5 years 0.70 / 1.37 Volatility (%) 3 years / 5 years 4.16 / 4.19 Max. loss (%) 3 years / 5 years / year / / n.a. Time to recover (months) 3 y/ 5 y / year / 10 / n.a. Tracking error (%) 1 year / 3 years / 5 years 0.89 / 1.11 / 1.17 Information ratio 1 year / 3 years / 5 years 1.06 / / Calculated at the net asset value, excl. front-end load, distributions reinvested. Calculation according to method as defined by BVI, the German Fund Companies Association. Past performance is not a reliable indicator of future results. Any front-end loads reduce the capital employed and the performance. All performance data in respect of Allianz Dynamic Multi Asset Strategy 15 A EUR prior to the launch date, 04/12/2014, are based on another share class of the same investment fund, Allianz Dynamic Multi Asset Strategy 15. This fund is an open-ended SICAV organised under the laws of Luxembourg and managed by Allianz Global Investors GmbH Frankfurt, namely Allianz Dynamic Multi Asset Strategy 15 I EUR (ISIN LU ), launched on 27/08/2014. All performance data in respect of Allianz Dynamic Multi Asset Strategy 15 I EUR prior to the launch date, 27/08/2014, are based on another investment fund, Allianz Strategy 15. This fund is an open-ended SICAV organised under the laws of Luxembourg and managed by Allianz Global Investors GmbH Frankfurt, namely Allianz Strategy 15 CT EUR (ISIN LU ), launched on 26/01/2009. This does not imply that Allianz Dynamic Multi Asset Strategy 15 A EUR will enjoy similar performance in the future. 2 Benchmark: 15% MSCI World Total Return (Net) + 85% Barclays Capital Euro-Aggregate Bond Index, Benchmark history: until 28/02/ % JP Morgan EMU Government Bond Investment Grade Index + 15% MSCI World Total Return (Net). 3 Morningstar Rating as of: 31/10/2017 Morningstar, Inc. All rights reserved. The information given here: (1) is protected by copyright for Morningstar and/or its content providers; (2) may not be reproduced or distributed; and (3) is not guaranteed to be accurate, complete or up-to-date. Neither Morningstar nor its content providers shall be liable for any losses or damage that result from use of this information. Past performance is not a guarantee for future results. Source: Allianz Global Investors; as of 30/11/

28 Allianz Dynamic Multi Asset Strategy 50 Morningstar Rating 3 Portfolio Manager Active asset allocation, security selection and a consistent risk management are at the core of our multi asset expertise. We actively exploit trends on the equity and bond markets. Security selection and alternative investments offer additional return opportunities. Risk management is an integral part of our investment process and aims to palpably reduce losses during major market downturns. Marcus Stahlhacke (investment experience since 1990) Annualised performance in % 1, YTD 1 Year 3 Years 5 Years 10 Years Fund Benchmark Calendar-year performance in % 1, Fund Benchmark Facts and figures for the unit class - A - EUR ISIN / WKN LU / A1XCBF Bloomberg ticker ALM50AI LX Launch date of the unit class Fund assets EUR m Risk-return indicator 4 Front-end load in % 4.00 All-in fee in % p.a TER in % 1.79 Sharpe ratio 3 years / 5 years 0.64 / 1.31 Volatility (%) 3 years / 5 years 7.54 / 6.85 Max. loss (%) 3 years / 5 years / year / / Time to recover (months) 3 y/ 5 y / year / 17 / 21 Tracking error (%) 1 year / 3 years / 5 years 1.80 / 2.30 / 2.37 Information ratio 1 year / 3 years / 5 years 1.94 / / Calculated at the net asset value, excl. front-end load, distributions reinvested. Calculation according to method as defined by BVI, the German Fund Companies Association. Past performance is not a reliable indicator of future results. Any front-end loads reduce the capital employed and the performance. All performance data in respect of Allianz Dynamic Multi Asset Strategy 50 A EUR prior to the launch date, 19/03/2014, are based on another investment fund, Allianz Strategy 50. This fund is an open-ended SICAV organised under the laws of Luxembourg and managed by Allianz Global Investors GmbH Frankfurt, namely Allianz Strategy 50 CT EUR (ISIN LU ), launched on 01/07/2008. All performance data in respect of Allianz Strategy 50 CT EUR prior to the launch date, 01/07/2008, are based on another investment fund, Allianz Strategiefonds Balance. This is an investment fund subject to the Investment Code (Kapitalanlagegesetzbuch KAGB), organised under the laws of Germany and managed by Allianz Global Investors GmbH Frankfurt, namely Allianz Strategiefonds Balance A EUR (ISIN DE ), launched on 02/12/2002. This does not imply that Allianz Dynamic Multi Asset Strategy 50 A EUR will enjoy similar performance in the future. 2 Benchmark: 50% MSCI World Total Return (Net) + 50% Barclays Capital Euro-Aggregate Bond Index, Benchmark history: until 28/02/ % MSCI World Total Return (Net) + 50% JP Morgan EMU Government Bond Investment Grade Index. 3 Morningstar Rating as of: 31/10/2017 Morningstar, Inc. All rights reserved. The information given here: (1) is protected by copyright for Morningstar and/or its content providers; (2) may not be reproduced or distributed; and (3) is not guaranteed to be accurate, complete or upto-date. Neither Morningstar nor its content providers shall be liable for any losses or damage that result from use of this information. Past performance is not a guarantee for future results. Source: Allianz Global Investors; as of 30/11/

29 Allianz Dynamic Multi Asset Strategy 75 Morningstar Rating 3 Portfolio Manager Active asset allocation, security selection and a consistent risk management are at the core of our multi asset expertise. We actively exploit trends on the equity and bond markets. Security selection and alternative investments offer additional return opportunities. Risk management is an integral part of our investment process and aims to palpably reduce losses during major market downturns. Marcus Stahlhacke (investment experience since 1990) Annualised performance in % 1, YTD 1 Year 3 Years 5 Years 10 Years Fund Benchmark Calendar-year performance in % 1, Fund Benchmark Facts and figures for the unit class - I - EUR ISIN / WKN LU / A117VS Bloomberg ticker ADM75IE LX Launch date of the unit class Fund assets EUR m Risk-return indicator 5 Minimum Investment Prospectus in Euro 1,000,000 Front-end load in % currently 0.00 (max. 2.00) All-in fee in % p.a TER in % 0.87 Sharpe ratio 3 years / 5 years 0.85 / 1.43 Volatility (%) 3 years / 5 years / 9.66 Max. loss (%) 3 years / 5 years / year / / Time to recover (months) 3 y/ 5 y / year / 14 / 23 Tracking error (%) 1 year / 3 years / 5 years 2.50 / 3.04 / 3.17 Information ratio 1 year / 3 years / 5 years 1.81 / 0.30 / Calculated at the net asset value, excl. front-end load, distributions reinvested. Calculation according to method as defined by BVI, the German Fund Companies Association. Past performance is not a reliable indicator of future results. Any front-end loads reduce the capital employed and the performance. All performance data in respect of Allianz Dynamic Multi Asset Strategy 75 I EUR prior to the launch date, 27/08/2014, are based on another investment fund, Allianz Strategy 75. This fund is an open-ended SICAV organised under the laws of Luxembourg and managed by Allianz Global Investors GmbH Frankfurt, namely Allianz Strategy 75 CT EUR (ISIN LU ), launched on 01/07/2008. All performance data in respect of Allianz Strategy 75 CT EUR prior to the launch date, 01/07/2008, are based on another investment fund, Allianz Strategiefonds Wachstum. This is an investment fund subject to the Investment Code (Kapitalanlagegesetzbuch KAGB), organised under the laws of Germany and managed by Allianz Global Investors GmbH Frankfurt, namely Allianz Strategiefonds Wachstum A EUR (ISIN DE ), launched on 02/12/2002. This does not imply that Allianz Dynamic Multi Asset Strategy 75 I EUR will enjoy similar performance in the future. 2 Benchmark: 75% MSCI World Total Return (Net) + 25% Barclays Capital Euro-Aggregate Bond Index, Benchmark history: until 28/02/ % MSCI World Total Return (Net) + 25% JP Morgan EMU Government Bond Investment Grade Index. 3 Morningstar Rating as of: 31/10/2017 Morningstar, Inc. All rights reserved. The information given here: (1) is protected by copyright for Morningstar and/or its content providers; (2) may not be reproduced or distributed; and (3) is not guaranteed to be accurate, complete or up-to-date. Neither Morningstar nor its content providers shall be liable for any losses or damage that result from use of this information. Past performance is not a guarantee for future results. Source: Allianz Global Investors; as of 30/11/

30 Advantages for our Customers Experienced team The portfolio management team has an average professional experience of 19 years. Allianz Global Investors: a strong, experienced partner in the area of multi asset management. Successful track record Objective confirmation: excellent multi asset solutions Broad investment range and diversification advantages Integrated risk management Active management Diversification Use of different asset classes equities bonds alternative investments Title selection Significant reduction of loss risks Active management of portfolio risks DMAS funds: All funds were awarded 4 or 5 stars DMAS 15 - A - EUR DMAS 50 - A - EUR DMAS 75 - I - EUR Source: Allianz Global Investors; as at Scope: Allianz Global Investors has been rated one of the top 5 asset managers in Germany, Austria and Switzerland (from a universe of 34 asset managers). The Scope Investment Awards are based on quantitative (Feri/Scope Rating over 5 years and performance during the past 12 months) and qualitative criteria (assessment of the fund management, the investment process). Overall, asset management awards were handed out in 13 categories for Germany, Austria and Switzerland. Source: Scope Analysis GmbH; as of A ranking, a rating or an award provides no indicator of future performance and is not constant over time. Morningstar ratings as at Morningstar, Inc. All rights reserved. The information given here: (1) is protected by copyright for Morningstar and/or its content providers; (2) may not be reproduced or distributed; and (3) is not guaranteed to be accurate, complete or up-to-date. Neither Morningstar nor its content providers shall be liable for any losses or damage that result from use of this information. Past performance is not a guarantee for future results. A performance of the strategy is not guaranteed and losses remain possible. 30

31 3 Facts and Figures / Opportunities and Risks 31

32 Allianz Dynamic Multi Asset Strategy 15 / 50 / 75 Key Information, Risk-Return Ratios Fund Allianz DMAS 15 Allianz DMAS 50 Allianz DMAS 75 ISIN / German security no. LU / A11 7VN LU / A1X CBF LU / A11 7VS Benchmark 1 Umbrella Management company Sub-manager Custodian bank 15% / 50% / 75% MSCI World Total Return (Net) + 85% / 50% / 25% Bloomberg Barclays Capital Euro-Aggregate Bond Index Allianz Global Investors Fund Allianz Global Investors GmbH, Frankfurt State Street Bank Luxembourg S.C.A. Luxembourg Launch date 04/12/ /03/ /08/2014 Fund manager Fund currency Financial year end Distribution Distribution frequency Minimum investment amount (SP) Marcus Stahlhacke EUR distributing annually EUR Registered for sale in DE, LU, AT, NL, IT, CH, ES, FR DE, LU, CH, IT, PT, FI, NO, AT, NL, SE DE, LU, AT, CH Front-end load (%) currently 0.00 (max. 2.00) All-in fee (% p.a.) TER (%) Benchmark history: until 28/02/ % MSCI World Total Return (Net) + 25% JP Morgan EMU Government Bond Investment Grade Index. 2 If the acquisition of Fund units is subject to a sales charge, up to 100% of such sales charge may be collected by the distributor; the exact amount shall be mentioned by the distributor as part of the investment advisory process. This also applies to any payment by the Management Company of an ongoing distribution fee from the all-in fee to the distributor. The all-in fee includes the expenses previously called management, administration and distribution fees. 3 TER (Total Expense Ratio): Total cost (except transaction costs) charged to the fund during the last financial year. Source: Allianz Global Investors; figures as at

33 Allianz Dynamic Multi Asset Strategy 15/50/75 Opportunities Above-average yield potential of stocks over the long term Enhanced return potential through addition of emerging markets assets and high-yield bonds Comparably high stability of bonds with good credit quality Risk management using the value-at-risk method Currency gains against investor currency possible Risks The volatility of fund unit prices may be strongly increased Limited yield potential of bonds with good credit quality Increased risk of price fluctuations through addition of stocks, emerging markets assets, and high-yield bonds Risk management does not exclude potential losses Currency losses against investor currency possible Source: Allianz Global Investors; data as at

34 A Appendix 34

35 Allianz DMAS Funds Characteristics Profile Allianz Dynamic Multi Asset Strategy Global developed markets equities Asset class universe SAA equities/bonds in % Active asset class allocation Allocation ranges Degree of investment Active security selection Specific management characteristics/investment style equities/bonds Active risk management Remarks Morningstar Rating TM Benchmark Emerging markets equities: max. 30 % EUR bonds: government bonds, supranationals, covered bonds (investment grade) Corporate bonds Emerging markets bonds: max. 30% High-yield bonds: max. 20% Alternative asset classes Commodities 15/85 50/50 75/25 Yes Equities: 0-35 % Equities: % Equities: % Up to 125 % Yes Best Styles Global Advanced Fixed Income Others possible Yes Value at Risk steering, duration steering between -2 and +10 years allowed **** ***** ***** 15/50/75% MSCI World T.R. Net + 85/50/25% Bloomberg Barclays Capital Euro Aggr. Source: Allianz Global Investors, as at This is for guidance only and not indicative of future allocation. Morningstar ratings as at A ranking, a rating or an award provides no indicator of future performance and is not constant over time. This information is not binding and subject to the sales prospectus. Morningstar, Inc. All rights reserved. This information: (1) is copyrightprotected on behalf of Morningstar and/or its content providers; (2) must not be copied or distributed; and (3) its correctness, completeness or up-to-date-ness are not guaranteed. Neither Morningstar nor its content providers are liable for any damages or losses related to the use of this information. 35

36 Allianz Dynamic Multi Asset Strategy 15 / 50 / 75 DMAS 15 DMAS 50 DMAS 75 Strategic asset allocation Morningstar Rating Morningstar Rating Morningstar Rating Active asset allocation, security selection and a consistent risk management are at the core of our multi asset expertise. We actively exploit trends on the equity and bond markets. Security selection and alternative investments offer additional return opportunities. Risk management is an integral part of our investment process and aims to palpably reduce losses during major market downturns. 15% / 50% / 75% MSCI World Total Return (Net) + 85% / 50% / 25 % Bloomberg Barclays Capital Euro-Aggregate Bond Index Marcus Stahlhacke (investment experience since 1990) Risk budget VaR, confidence level: 95% Sources of alpha Active asset allocation, risk management via risk budget Active asset allocation is at the core of the investment strategy Strategy component Strategic asset allocation (SAA) Trend exploitation Selection of individual stocks/bonds Alternative investments Risk management What is this component s purpose? Market return Additional return, reduction of loss risks Additional return Market-independent return, risk reduction Risk budget: depending on the profile. The goal is to reduce the losses palpably during major market corrections Investments in equities and bonds how are they made? Equities Use of proven, successful Allianz Global Investors strategies Flexible in the large, mid and small cap segments Individual stocks experienced stock-pickers Target funds for special themes, such as emerging markets, alternatives Portfolio managers and analysts in close contact with companies Bonds Investments in prime bonds Addition of spread products (EM + HY) Selection according to rich-cheap analysis Additional returns via optimisation of country allocation, curve positioning, duration (-2 to +10 years) Bond structure in line with overall risk management Source: Allianz Global Investors; as at A performance of the strategy is not guaranteed and losses remain possible. Morningstar ratings as at Morningstar, Inc. All rights reserved. The information above (1) is subject to copyright law in favour of Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) no guarantee as to its correctness, completeness or up-to-dateness is given. Neither Morningstar nor its content providers assume responsibility for any damage or losses stemming from the use of this information. Past performance is not a reliable indicator of future results. 36

37 Fund Manager CV Marcus Stahlhacke, CFA, CAIA, FRM Head of Active Allocation Retail Multi Channel Funds Marcus Stahlhacke heads the Active Allocation Retail Multi Channel Funds team of Allianz Global Investors. He joined the company in 1996 as portfolio manager for balanced funds. From 1998, he was Head of the Bond and Benchmark Analysis group for several years, before being appointed as Senior Product Advisor of the Product Advisory division in From 2005 to 2010 Marcus was CIO Systematic Multi Asset-Multi Manager and headed the fund-of-funds team. Prior to joining the retail funds team in February 2012, he was CIO - Real Estate Private Clients at Allianz Global Investors. Marcus studied at the universities of Frankfurt and Southampton, graduating in Economics ( Diplom-Volkswirt ) and Business Administration ( Diplom-Kaufmann ). Following his graduation, Marcus worked as a research assistant at the University of Frankfurt before moving to a management consultancy firm. He has been a CFA charterholder since 2009 and became a Financial Risk Manager (FRM) in 2002 and a Chartered Alternative Investment Analyst (CAIA) in Source: Allianz Global Investors; as at

38 ALLIANZGI BEST STYLES GLOBAL DEVELOPED EQUITY Period Composite Gross Return (%) Benchmark* (%) No of Portfolios ALLIANZGI BEST STYLES GLOBAL DEVELOPED EQUITY Period End Total Assets in Mio Composite Dispersion (%) Composite St Dev 3Y (%) Benchmark St Dev 3Y (%) Total Firm Assets GLOBAL in Mio Period Composite Gross Return p.a. (%) Benchmark* p.a. (%) , ,468 1 Year , ,162 2 Years , ,726 3 Years , ,482 4 Years , ,642 5 Years , ,496 6 Years , ,275 7 Years NA 98,849 8 Years NA 57,212 9 Years NA 93, Years For the purposes of compliance with the Global Investment Performance Standards (GIPS ) the firm is defined as Allianz Global Investors. Allianz Global Investors is a global asset management business, operating under the marketing name Allianz Global Investors through affiliated entities worldwide. It is defined as the group of firms that coordinate their research, investment and/or trading activities (the "Global Investment Platform"). In the case of certain firms, such coordination may be limited to common supervision by the firm s Global Chief Investment Officer. The firm claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. Allianz Global Investors, and/or its predecessor firm, has been independently verified for the periods 1 January 2007 to 31 December The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. As of 31 December 2016, the firm had approximately EUR440 billion in assets under management. Also operating under the marketing name Allianz Global Investors, there are certain investment advisory firms that are not part of the Global Investment Platform that have approximately EUR40 billion in assets under management. While these firms are affiliates of the firm they are excluded from the definition of the firm for purposes of GIPS and their assets under management are therefore excluded from Total Firm Assets. For periods ending before 31 December 2012, the firm was defined as a global investment advisory organization, consisting of separate affiliated firms, which operated under the brand name RCM ("RCM Global"), and the Global Investment Platform consisted only of those entities included within the RCM Global GIPS Firm definition. In 2012, through a global restructuring of the Allianz Global Investors business, the Global Investment Platform was expanded to include additional investment advisory firms. Total Firm Assets prior to 2012 reflect only those assets of RCM Global. 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 Allianz Global Investors composites, or for a complete list of the firms that comprise Allianz Global Investors and their periods of verification, please call or write to Allianz Global Investors GmbH, Bockenheimer Landstrasse 42-44, Frankfurt am Main. Allianz Global Investors German Branch presents the ALLIANZGI BEST STYLES GLOBAL DEVELOPED EQUITY strategy in Europe. A complete list and description of Allianz GIobal Investors' composites is available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance is available upon request. The AllianzGI BEST STYLES GLOBAL DEVELOPED EQUITY composite was set up in August 2011, with an inception date of January 1999, and contains all accounts that are managed by Allianz Global Investors and that invest in equities according to the Allianz Global Investors Global Best Styles Developed Investment Process and where MSCI World is the appropriate benchmark. This excludes mandates that are benchmarked against customized MSCI World benchmarks e.g. MSCI World benchmarks excluding a significant percentage of MSCI World or using different weighting schemes (GDP weighted or regionally reweighted). The investment process Best Styles is built on two strong pillars of research: investment style research and fundamental company research. A variety of selection criteria are combined into investment styles like value, momentum, quality and others. Within the preferred investment styles, stocks favoured by the Allianz Global Investors global research platform are over-weighted. The composite name was changed as of 01 January The previous composite name was SYSTEMATIC EQUITY GLOBAL BEST STYLES DEVELOPED. Leverage and Hedging are not strategies for managing securities within this composite. * The composite Benchmark is MSCI WORLD Total Return (Net). 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. Performance results and valuations are presented in EUR. 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 40 bps, 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. The number of portfolios and the dispersion figures were revised in March 2012 applying a different approach, where share classes are no longer treated as separate portfolios. 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. 38