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1 Allianz Wachstum Europa A Page 1 of 9 Morningstar Category Europe Large-Cap Growth Equity Category Index MSCI Europe Growth NR Total Assets 1, Mil Current Yield % Inception Date 13/01/97 Domicile/ Currency DEU/ Morningstar Rating QQQQ Equity Style Map Giant Large Mid Small K 20K 15K 10K Performance 31/07/17 Growth of 10,000 Annualized Value Ret % Fund 22, Category 16, Index 16, Full Manager Change Partial Manager Change Deep Value People Value Blend Growth High Growth Micro Thorsten Winkelmann 10/09 Robert Hofmann 06/17 Total Named Managers 2 Morningstar Pillars Process p. 2-3 Performance p. 4 People p. 5 Parent p. 6 Price p. 7 Neutral Negative & * & & & & ) & * ( ( 5K Morningstar Rating QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQ QQ Quartile Rank in Category Percentile Rank in Category % Total Return /- Category /- Index Process Equity Style Box Asset Allocation Stock Bond Cash Other Equity Supersectors m Cyclical w Sensitive x Defensive Price TER/OGC Analyst View Barbara Claus, Senior Analyst We think that this fund is still an appealing choice for investors. The conduct of Morningstar's analysts is governed by Morningstar's Code of Ethics, Securities Trading and Disclosure Policy, and Morningstar Manager Research Integrity Policy. For informaton regarding conflicts of interest, please click Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ Á The for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the for a fund. s are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Neutral represents funds in which our analysts don t have a strong positive or negative conviction over the long term (defined as a full market cycle or at least five years) and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term (defined as a full market cycle or at least five years). Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit 30 May, 2017 A well-established team and process ensure continuity after Matthias Born s departure. The fund has been managed since October 2009 by Thorsten Winkelmann in close collaboration with Born and deputy manager Robert Hofmann. Born has been, together with Winkelmann, co-leader of AllianzGI s European Growth team. Since June 2017, Winkelmann and Hofmann have comanaged the fund together. Born s departure will definitely be a loss for the team, but Winkelmann and his team colleagues ensure continuity. A seasoned analyst recently joined the team to replace Born, but his portfolio management experience is mostly limited to the consumer sector. The team of six can draw on additional research resources like AllianzGI s broader equity analyst team and Grassroots. The investment approach is based on the tried-and-tested European Growth strategy that was established in Since November 2015, this fund is managed with the Select sub-strategy that has been applied since 2013 to Allianz Europe Equity Growth Select. Differences exist only at the portfolio level. The Select approach is limited to the best ideas of the fund managers, which shows in a more concentrated portfolio with holdings. Single-stock risks are more pronounced as a result of the higher portfolio concentration; small and mid-caps hardly play any role. The approach emphasises stock-picking, with the managers mainly looking for companies with high quality and strong structural growth. They are not guided by an index when constructing the portfolio, which can result in significant deviations relative to the benchmark and peers. The results of the Europe Equity Growth strategy since its launch in 2003 are impressive also in the risk-adjusted view. The Select sub-strategy s returns since February 2013 have been convincing as well. We think that this fund has a structure that can succeed even after Born s departure, who will be nonetheless a significant loss to the team. However, the well-established team and process ensure continuity. We reaffirm its Morningstar Analyst Rating of Bronze.

2 Allianz Wachstum Europa A Page 2 of 9 Process: Approach Morningstar Category Category Index Index Proxy Europe Large-Cap Growth Equity MSCI Europe Growth NR Amundi ETF MSCI Europe Growth A/I Stock-picking approach focuses on companies with long-term, structural growth drivers. Process Pillar 30 May, 2017 The fund's bottom-up approach has proved its worth since June In this fund, it has been implemented since November 2015 in a more concentrated substrategy. Besides the fact that it gives the managers considerable freedom in terms of implementation and is not bound to a benchmark, we also appreciate the Equity Style 30/06/17 Holdings-Based Style Map Deep Value Value Blend Growth High Growth Equity Style Box Factors Giant Large Mid Small Micro Fund Centroid: Weighted average of equity holdings Zone: 75% of fund equity holdings Category Average Index Proxy Market Cap Fund 3-Yr Avg Category Proxy Giant/Large Mid Small/Micro Avg Market Cap Bil Value Measures Fund 3-Yr Avg Category Proxy Price/Prospect. Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield Growth Measures Fund 3-Yr Avg Category Proxy Long-Term Earnings % Historical Earnings % Sales % Cash Flow % Book-Value % strategy s long-term investment horizon and focus on quality. The managers look for companies with sustainable profit and cash flow growth. Here, they distinguish between structural and cyclical growth, with a preference to the former. Companies that meet their criteria tend to enjoy cost or technology leadership, be engaged in rapidly growing markets, or simply boast sound business models. Ideally, the growth potential of these companies should not yet be reflected in the share price in order for them to be potential buy candidates. As far as quality is concerned, the Asset Allocation 30/06/17 Current Allocation 3-Year Average Net Assets % Fund 3-Yr Avg Category Proxy Equity Fixed Income Cash Other Regional Exposure 30/06/17 Market Type Equity % Fund 3-Yr Avg Category Proxy Developed Emerging Top 5 Countries Equity % Fund 3-Yr Avg Category Proxy United Kingdom Germany Switzerland France Denmark Key Ratios 30/06/17 Fund 3-Yr Avg Category Proxy Net Margin % ROA % Debt/Total Capital % ROE % managers pay particular attention to ensuring that the companies in the portfolio are able to at least cover their capital costs, irrespective of the prevailing market environment. The identification of price drivers, such as rising earnings forecasts or increasing market shares, also plays a role here. This fund does not use derivatives or tactical cash holdings. Sectors 30/06/17 Sector Delta Defensive Sensitive Cyclical Fund Index Larger sector concentrations versus the index move the investment to the corner of the triangle corresponding to that equity Super Sector. Equity Sectors Fund 3-Yr Avg Category Proxy xdefensive sconsumer Defensive dhealthcare futilities wsensitive icommunication Serv oenergy pindustrials atechnology mcyclical rbasic Materials tconsumer Cyclical yfinancial Services ureal Estate Economic Moat 30/06/17 Fund 3-Yr Avg Category Proxy Wide Moat Narrow Moat No Moat Coverage Ratio

3 Allianz Wachstum Europa A Page 3 of 9 Process: Portfolio Morningstar Category Category Index Index Proxy Europe Large-Cap Growth Equity MSCI Europe Growth NR Amundi ETF MSCI Europe Growth A/I The portfolio is concentrated with positions and contains the managers best ideas. Process Pillar 30 May, 2017 The fund managers pursue a longterm investment approach, which is expressed in a low portfolio turnover rate of 25%-30% annually. The composition of the portfolio is the result of individual stock-picking only with a clear concentration in the large-cap growth segment of the Morningstar Style Box. There is no higher-level Similarity to Index Proxy 30/06/17 top-down allocation. The portfolio typically comprises equities, so that it is more concentrated than the average category peer, with single-stock weightings of 5% and more, which results in significant single-stock risk. The weighting of individual equities is determined by the upward potential and the conviction of the managers with regard to quality, valuation, and growth prospects of each company. Mid-caps and small caps hardly play any role. When constructing the portfolio, the managers are not bound to a benchmark, which means the portfolio can deviate significantly from its index and Morningstar Category in terms of its sector and country allocation. Historically, the managers have favoured the consumer goods, industrial, and technology sectors. Currently, their biggest sector overweighting relative to the benchmark and peers is in technology stocks, with industrials coming in second. Compared with category peers, the higher quality of the companies in the fund s portfolio (measured by balance sheet structure and profitability indicators) stands out. Index Proxy Overlap Number of Equity Holdings Fund 39 Index Proxy 0 Fund Overlap With Index Proxy Holdings Overlap 0 Asset Overlap 0.0% Largest Common Holdings Fund % Proxy % Largest Distinct Holdings Fund % SAP SE 7.19 Reckitt Benckiser Group PLC 5.19 Prudential PLC 5.02 Infineon Technologies AG 4.80 Novo Nordisk A/S B 4.34 Portfolio Holdings 30/06/17 Previous Portfolio Date Equity Holdings Bond Holdings Other Holdings Assets in Top 10 Holdings Turnover Ratio (Reported) 31/05/ % Top 10 Equity Holdings Country Assets % Assets % Proxy % 30/06/17 31/05/17 30/06/17 Y SAP SE DEU /05 <1 Narrow a Technology Y Reckitt Benckiser Group PLC GBR /04 <1 Wide s Consumer Defensive Y Prudential PLC GBR /05 <1 No y Financial Services Y Infineon Technologies AG DEU /13 <1 Narrow a Technology Y Novo Nordisk A/S B DNK /04 <1 Wide d Healthcare Y British American Tobacco PLC GBR /07 <1 Wide s Consumer Defensive Y Cie Financiere Richemont SA CHE /04 <1 Wide t Consumer Cyclical Y Hexagon AB B SWE /05 2 a Technology Y DSV A/S DNK /06 1 Narrow p Industrials Y Fresenius SE & Co KGaA DEU /10 <1 Narrow d Healthcare 7.88 Change since previous portfolio: T Increase Y Decrease R New First Bought Days Trading Economic Moat Sector 1-Yr Total New Holdings Largest Purchases % Assets Sector Eliminated Holdings Largest Sales % Assets Sector Roche Holding AG Dividend Right Cert d Amadeus IT Group SA A 2.79 a Shire PLC 2.78 d Compass Grp 2.67 ASML Holding NV 2.56 a Largest Position Changes Current % Prior % Y Roche Holding AG Dividend Right Cert. Y Amadeus IT Group SA A Y Shire PLC Y Compass Grp Y ASML Holding NV

4 Allianz Wachstum Europa A Page 4 of 9 Morningstar Category Category Index Performance Europe Large-Cap Growth MSCI Europe Growth NR Equity Returns have been convincing. Performance Pillar 30 May, 2017 Thorsten Winkelmann and Matthias Born have managed the European Growth strategy together since October During their tenure through April 2017, Allianz Wachstum Europa has delivered an annualised return of 13.84%, outperforming both its Morningstar Category average and the fund s benchmark S&P Europe Large Cap Growth benchmark, which have gained only 10.71% and 11.11%, respectively. The results are also convincing on a risk-adjusted basis. Returns of the more concentrated Select approach since its launch in May 2013 have been similar, at 10.86% compared with 10.99% for the original strategy, and therefore well ahead of the category and the large-cap-oriented benchmark S&P Europe Large Cap Growth. The risk figures have been similar as well. However, since its launch in the second half of 2013, the strategy slightly lagged its peers and benchmark as a result of its underweighting in banks and the lack of positive stock-picking returns. In 2014 and 2015, stock-picking produced positive results, with equities such as Novo Nordisk, Shire, Reckitt Benckiser, or Infineon among the top performers. In 2016, the fund experienced some headwinds resulting from the rotation towards more cyclical areas of the market in the fourth quarter. Since the beginning of this year, the fund has outperformed its category and index. (Data as at the end of April 2017.) Morningstar Rating and Risk 31/07/17 Period Morningstar Ret vs Cat Morningstar Risk vs Cat Morningstar Rating 3 Years Avg Above Avg QQQ 5 Years Avg Above Avg QQQ 10 Years High High QQQQ Overall Rating Risk Analysis 31/07/17 3-Year Return and Risk Analysis Total Return % QQQQ Fund Category Index & * & & & & ) & * ( ( History 31/07/17 12-Month Rolling Return % Fund Full Manager Change Partial Manager Change Quartile Rank in Cat Percentile Rank in Cat % Total Return /- Category /- Index Income Return Standard Deviation 3-Year Risk Measures Fund Category Index Standard Deviation Sharpe Ratio R-Squared Beta Alpha Maximum Drawdown Fund Category Index Max Drawdown (%) Peak Date 11/07 06/07 11/07 Valley Date 02/09 02/09 02/09 Max Drawdown (Months) Upside/Downside Fund Category Index Upside Capture Ratio Downside Capture Ratio Returns 31/07/17 Trailing Returns Total Investor Rank in Cat Cat Index 1 Year Years Years Years Tenure 10/ Inception 01/ Rolling-Returns Summary 47% Month Rolling Periods 152 Observations, 12 Years The shading and percentages correspond to how often the fund returns landed in each category quartile. Income and Capital Returns Return % Income Return Capital Return Year /17 Income Income % Rank in Cat Capital Capital % Rank in Cat /

5 Allianz Wachstum Europa A Page 5 of 9 Morningstar Category Category Index People Europe Large-Cap Growth MSCI Europe Growth NR Equity A close-knit team provides continuity and mitigates our concerns after Matthias Born s departure. People Pillar 30 May, 2017 Thorsten Winkelmann and Matthias Born have headed the European Growth Equities team and comanaged this fund together since October After Born s departure in September 2017, Winkelmann will become the sole team head. Since June 2017, he has comanaged the fund together with the former deputy manager Management Team Robert Hofmann. Giovanni Trombello joined the team recently to replace Born. He is a seasoned consumer stocks analyst, but his portfolio management experience is mostly limited to the consumer sector. Overall, the close-knit team supporting this fund consists of six portfolio managers and a product specialist. A junior portfolio manager will be added to the team over the course of the year. Team head Winkelmann joined AllianzGI in September 2001 and has 21 years of experience. He was initially responsible for managing the equity portfolios of a number of allocation funds, as well as Allianz Aktien Europa and Allianz RCM New Stars Europe, although results there have not been particularly impressive. Hofmann was appointed as deputy manager of the European Growth Fund in All managers are invested in the fund. Born s departure is a significant loss, but we draw comfort from the established team, which ensures continuity. The managers are also supported by AllianzGI`s 36 buyside analysts covering European stocks and the Grassroots Research department. Experience and Asset Load Total AUM Bil in Funds Managed 20+ Number of Managers Longest Tenure Years Manager Retention Rate 5-Year % Average Manager Tenure 4.00 Years Advisor Subadvisor Allianz Global Investors GmbH Frankfurt Tenure Years Thorsten Winkelmann 10/09 to Present Years on Managed Funds Years on Fund 14 7 Fund AUM Current Funds Managed 9, Mil 9 Largest Funds Managed Tenure Dates Role Fund Size Bil Investment Mil Tenure Index Allianz Europe Equity Growth 10/09 to Present 1 of Allianz Wachstum Europa 10/09 to Present 1 of Allianz Europe Equity Growth Select 05/13 to Present 1 of Wilmington Multi-Manager Intern'l 11/16 to Present 1 of None Fund Allianz Azioni Europa 01/08 to Present 1 of Robert Hofmann 06/17 to Present Years on Managed Funds Years on Fund 11 0 Fund AUM Current Funds Managed 8, Mil 6 Largest Funds Managed Tenure Dates Role Fund Size Bil Investment Mil Tenure Index Allianz Europe Equity Growth 04/08 to Present 1 of Allianz Wachstum Europa 06/17 to Present 1 of Allianz Europe Equity Growth Select 06/17 to Present 1 of AllianzGI International Growth Fund 02/15 to Present 1 of None ZIL Allianz Europe Eq Growth 01/13 to Present 1 of

6 Allianz Wachstum Europa A Page 6 of 9 Morningstar Category Category Index Parent Europe Large-Cap Growth MSCI Europe Growth NR Equity Pockets of strength, but neutral overall. Parent Pillar Neutral 25 Jul, 2016 Allianz Global Investors has grown organically and through acquisition since 1998, with all of its European and several global units operating under this brand name. The company recently announced its planned restructuring initiative AllianzGI 2.0, under which it plans to evaluate every business unit for competitiveness Assets By Region, By Domicile Bil through This will likely result in job cuts in some areas and new hires in others. As of December 2015, the company managed more than 400 billion in assets, making it one of the larger global fund companies with a wide range of products, mostly fixed income, equity and multiasset strategies. Not all of these strategies are compelling, but the performance of the fund range is above-average on an asset-weighted basis. Firm-wide, fees are average, but many share classes have above-average ongoing charges and some also charge performance fees that are not Fund Family Details Europe (*) Breakdown investor-friendly. Fund managers at the firm are encouraged to invest in their own funds, and their compensation is partially linked to their funds 1- and 3-year performance. We appreciate these features, which help to align the managers interests with those of investors. However, overall they do not go far enough to earn the company an above-average rating. In addition, the uncertainty resulting from the upcoming restructuring bolsters our overall neutral rating for the company. Morningstar Rating Breakdown Americas 16.1 Europe & Africa Asia & Australia 1.9 Rating Assets % Œ ˇ 16.5 Ø Not Rated 69.4 Rating Assets % QQQQQ 24.6 QQQQ 24.8 QQQ 16.5 QQ 5.0 Q 0.1 Not Rated 29.1 Asset Class Breakdown Europe (ex Money Mkt) Assets Bil Asset Class Assets Bil Assets % Equity Fixed Income Allocation Convertibles Property Alternative Commodities Fund Family Details Europe Top Performing Funds Category Name Fund Size Mil Return % 3-Year Rank in Cat 3-Year Allianz Global Investors Fund - Allianz Euroland Eurozone Large-Cap Equity 2, Equity Growth W Allianz Actions France D France Large-Cap Equity Allianz Multi Horizon Target Date Largest Funds Category Name Fund Size Mil Return % 3-Year Rank in Cat 3-Year Allianz Global Investors Fund - Allianz Income Moderate Allocation - 15, and Growth I (H2-) Global Allianz Global Investors Fund - Allianz Income USD Moderate Allocation 15, and Growth IT USD Allianz Global Investors Fund - Allianz Europe Equity Growth W Europe Large-Cap Growth Equity 6, Recent Fund Launches Category Name Fund Size Mil Return % Inception Inception Date Allianz Global Investors Fund - Allianz Selection Europe Mid-Cap Equity /07/17 Small and Mid Cap Equity Allianz Stratégies PME-ET Allianz Global Investors Fund - Allianz Global Global Large-Cap Growth Equity /07/17 Equity Growth - W - USD Dis Allianz Global Investors Fund - Allianz Volatility Strategy I Dis Alt - Volatility /06/17 (*) All data is based on Branding name and refers to funds domiciled in Europe.

7 Allianz Wachstum Europa A Page 7 of 9 Morningstar Category Category Index Price Europe Large-Cap Growth MSCI Europe Growth NR Equity The additional performance fee can make this fund an expensive choice TER/OGC Expense History TER/OGC Price Pillar Negative 30 May, 2017 With ongoing charges of 1.80%, the fund s base fee is average in comparison with its category peers. The fund charges an additional performance fee of 20. Since 2013 it is calculated net of fees with a high-water mark. This makes Allianz Wachstum Europa one of the more expensive funds in its category, but investors have the possibility to buy the more attractively priced Luxembourg-domiciled sibling Allianz Europe Equity Growth Select TER/OGC Net Assets Bil Net Flows Mil Expense Breakdown Ongoing charge Ongoing charge 01/05/ Selected Components Max Management Fee 1.80 Performance Fee Fee Level Fee Level Avg Fee Level Breakpoints Peer Group Europe Large-Cap Growth Equity Retail Broad 3.19 High >2.15 Above Average Average Below Average Low <1.21 Fund 1.80 Peer Median 1.77 Share Class Information Share Class Identifier Morningstar Category TER/OGC Max Mgmt Fee Performance Fee Maximum Inital Charge Allianz Wachstum Europa A Europe Large-Cap Growth Equity Minimum Initial Inv Assets Bil

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With those fundamental strengths, we expect these funds will outperform their relevant performance benchmark and/or peer group within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Bronze Represents funds that have advantages that clearly outweigh any disadvantages across the pillars, giving analyst the conviction to award them a positive rating. We expect these funds to beat their relevant performance benchmark and/ or peer group within the context of the level of risk taken over a full market cycle (or at least five years). Neutral Represents funds in which our analysts don t have a strong positive or negative conviction. In our judgment, these funds are not likely to deliver standout returns, but they aren t likely to seriously underperform their relevant performance benchmark and/or peer group either. Limited. Morningstar Investment Adviser India Private Limited is registered with the Securities and Exchange Board of India (Registration number INA ) and provides investment advice and research. Morningstar Investment Adviser India Private Limited has not been the subject of any disciplinary action by SEBI or any other legal/regulatory body. Morningstar Investment Adviser India Private Limited is a wholly owned subsidiary of Morningstar Investment Management LLC. In India, Morningstar Investment Adviser India Private Limited has one associate, Morningstar India Private Limited, which provides data related services, financial data analysis and software development. The Research Analyst has not served as an officer, director or employee of the fund company within the last 12 months, nor has it or its associates engaged in market making activity for the fund company. Page 9 of 9 *The Conflicts of Interest disclosure above also applies to relatives and associates of Manager Research Analysts in India #The Conflicts of Interest disclosure above also applies to associates of Manager Research Analysts in IndiaThe terms and conditions on which Morningstar Investment Adviser India Private Limited offers Investment Research to clients, varies from client to client, and are detailed in the respective client agreement. For recipients in Japan: The Report is distributed by Ibbotson Associates Japan, Inc., which is regulated by Financial Services Agency. Neither Ibbotson Associates Japan, Inc., nor its representatives, are acting or will be deemed to be acting as an investment advisor to any recipients of this information. For recipients in Singapore: This Report is distributed by Morningstar Investment Adviser Singapore Pte Limited, which is licensed by the Monetary Authority of Singapore to provide financial advisory services in Singapore. Investors should consult a financial adviser regarding the suitability of any investment product, taking into account their specific investment objectives, financial situation or particular needs, before making any investment decisions. Negative Represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance, such as high fees or an unstable management team. Because of these faults, we believe these funds are inferior to most competitors and will likely underperform their relevant performance benchmark and/or peer group, within the context of the level of risk taken, over a full market cycle. Morningstar may also use two other designations in place of a rating: Under Review This designation means that a change that occurred with the fund or at the fund company requires further review to determine the impact on the rating. Not Ratable This designation is used only where we are providing a report on a new strategy or on a strategy where there are no relevant comparators, but where investors require information as to suitability. For more information about our Analyst Rating methodology please go to Morningstar Star Rating The Morningstar Star Rating is a proprietary data point that is quantitatively driven. Funds are rated from one to five stars based on how well the fund performed (after adjusting for risk and accounting for sales charges) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five-stars and the bottom 10% receives one-star. Funds are rated for up to three time periods three-, five-, and ten-years and these ratings are combined to produce an overall star rating, which is noted within the Report. Funds with less than three years of history are not rated. Morningstar Star Ratings are based entirely on a mathematical evaluation of past performance. Morningstar Star Ratings are in no way to be considered a buy or sell signal nor should be viewed as a statement of fact. Equity-Related Data Points The Report lists the fund s top ten holdings as of the dated noted. For each underlying holding, a series of data points is provided including, where applicable, that security s Economic Moat as of the date noted. Economic Moat The concept of an economic moat plays a vital role in our equity analyst s qualitative assessment of a firm s long-term investment potential, but also in the actual calculation of its fair value estimate. An economic moat is a structural feature that allows a firm to sustain excess profits over a long period of time. We define economic profits as returns on invested capital (or ROIC) over and above our estimate of a firm s cost of capital, or weighted average cost of capital (or WACC). Without a moat, profits are more susceptible to competition. We have identified five sources of economic moats: intangible assets, switching costs, network effect, cost advantage, and efficient scale. Companies with a narrow moat are those we believe are more likely than not to achieve normalized excess returns for at least the next 10 years. Wide-moat companies are those in which we have very high confidence that excess returns will remain for 10 years, with excess returns more likely than not to remain for at least 20 years. The longer a firm generates economic profits, the higher its intrinsic value. We believe low-quality, no-moat companies will see their normalized returns gravitate toward the firm s cost of capital more quickly than companies with moats. For more information about methodology in analysing stocks, please go to For Recipients in Australia: This Report has been issued and distributed in Australia by Morningstar Australasia Pty Ltd (ABN: ; ASFL: ). Morningstar Australasia Pty Ltd is the provider of the general advice ( the Service ) and takes responsibility for the production of this report. The Service is provided through the research of investment products. To the extent the Report contains general advice it has been prepared without reference to an investor s objectives, financial situation or needs. Investors should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement before making any decision to invest. Refer to our Financial Services Guide (FSG) for more information at For Recipients in Hong Kong: The Report is distributed by Morningstar Investment Management Asia Limited, which is regulated by the Hong Kong Securities and Futures Commission to provide services to professional investors only. 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