Download to 30 April 2016 - Allianz Global Investors

Allianz International Investment Funds
Allianz Japan Fund
Final
Short Form
For the year ended 30 April 2016
The report below, as prescribed by the Financial Conduct Authority (FCA), aims to provide clear and concise information enabling you to
make an informed judgement on your investment, during the year covered. We continually strive to enhance the information we send to
you and we would welcome any comments you may have. A long form version of the report and accounts can still be viewed at
www.allianzglobalinvestors.co.uk. Alternatively, call our Investor Services team on 0800 317 573 to request a copy. Thank you for your
continued investment with Allianz Global Investors.
Fund Details
On 27 April 2016, pricing and dealing of the Allianz Japan Fund was
suspended.
Investment Objective & Policy
The Allianz Japan Fund aimed to achieve capital growth through
investment in leading Japanese shares and other permitted equity
based investment instruments.
The Fund’s main emphasis was on companies with larger market
capitalisation. Exposure to smaller companies may be obtained
either through the purchase of shares or through warrants up to the
permitted limit.
Risk Profile
Equity Risk: Equities are generally more risky than fixed interest
securities. Considerable fluctuations in equity prices may mean that
you do not get all your money back.
Exchange Rates: Exchange rate movements may cause the value
of any overseas investments, and any revenue from them, to go up
or down.
Smaller Companies: Smaller companies may be riskier and less
liquid than larger companies, which means that their share price
may be more volatile.
Concentrated Portfolio: Lower diversification and active stock
selection may give rise to more risk and substantially increase the
risk of loss.
Risk and Reward Profile
No category has been disclosed for the Allianz Japan Fund, as the
Fund closed on 27 April 2016.
Allianz Japan Fund
Key Facts
Fund manager
Kazuyuki Terao
Launch date
16 May 2002
Fund benchmark
TOPIX
Annual charge
1.5%
Initial charge
ISA
3% Direct
4%
Minimum investment
ISA
£1,000 Direct
£500
Additional investment
ISA
£1,000 Direct
£500
£200 Direct
£50
Regular savings plan
ISA
Ex dividend dates
1 May
Payment dates
30 June
Share classes & types
A ( Accumulation)
C ( Accumulation)
Please note: The information shown above is for the ‘A’ share class of the Fund.
Operating Charges
30 April 20161
‘A’ Shares
1.81%
‘C’ Shares
1.03%
Operating Charges represent all operating charges and expenses and is expressed as
a percentage of the average net asset value. It includes the annual ACD fee as well as
all the administrative expenses including custodial transaction charges incurred by
the Fund.
1
On 27 April 2016, pricing and dealing of the Allianz Japan Fund was suspended.
Performance Record (price in pence)
High
Low
High
Low
A
A
C2
C2
30 April 2014
512.92
412.77
100.00
93.46
30 April 2015
574.50
410.09
129.76
92.96
30 April 20161
579.10
482.17
131.58
108.95
Share class
Accounting year
On 27 April 2016, pricing and dealing of the Allianz Japan Fund was suspended.
On 3 April 2014, the Fund launched one additional share class, namely ‘C’ class
(Accumulation).
1
2
Summary of Fund Performance
Net Asset Value
1
Net Asset Value
per share
30 Apr
20161
£000s
30 Apr
2015
£000s
30 Apr
20161
(p)
30 Apr
2015
(p)
Change
%
‘A’ Shares
0
10,119
0.00
537.92
N/A
‘C’ Shares
0
1,712
0.00
121.35
N/A
On 27 April 2016, pricing and dealing of the Allianz Japan Fund was suspended.
Summary of Distribution
Share class
Payment date
‘A’ Shares
30 June 2016
Net distribution per share (p)
0.0000
‘C’ Shares
30 June 2016
0.0000
Please note: Investors are reminded that the Fund distributes annually.
Investment Review
Performance Summary: Over the period under review, 1 May
2015 to 27 April 2016, the Fund’s ‘A’ class produced a total return of
3.10% and ‘C’ class 4.06%.* The Fund’s benchmark, the TOPIX,
produced a total return of 0.94% over the year. The key reasons for
this outperformance was industrial stocks such as Obayashi and
Daikin. These stocks showed solid earnings and increase of
dividends which were well received by the market. Also Shionogi a
pharmaceutical company had posted strong earnings, due to an
anti HIV drug, which helped performance. On the flip side, Yamaha
Motor detracted performance as earnings were under pressure
because of the appreciation of the JPY (Japanese Yen).
Market Background: The Japanese equity market declined in local
currency terms on the back of concerns on China’s economy and US
monetary policy. The BOJ (Bank of Japan) introduced negative
interest rate policy in January 2016 which surprised the market and
increased concerns on the earnings of financial institutions and
failed to positively impact the equity market. After this move,
investors have become cautious as this showed the limitation of
what monetary policy could do to support the economy and equity
market. Also the JPY has appreciated versus the US
Dollar (US$) because it has become clear that the US Federal
Reserve intends to increase interest rates at a slower pace than the
market previously stated due to the uncertainty of the global
economy. As a result, the exporter’s corporate earnings have been
revised down and the market has reacted negatively.
Portfolio Review: We had focused on the stocks with stable
earnings prospects. These include construction and healthcare and
selective machinery companies which contributed to performance.
On the other hand, exporters whose earnings are sensitive to JPY/
US$ hurt the performance as JPY had appreciated versus the US$.
These include automobile and technology companies. We also
focused on the companies which are keen to increase shareholder
return, which include financial companies. Due to the introduction
of negative interest rates by the BOJ, these positions didn’t work
out well.
Outlook: Although the Japanese equity market has rebounded
recently, it is difficult to wipe away investor’s concerns on the global
economy and currency market in near term. Corporate earnings
growth rates are expected to be weaker than what is currently
priced in mainly due to the strong Yen. However, the improvement
of corporate governance is under way and more dividends hikes
and share buybacks are expected going forward which will support
the market. As for the valuation, the price-to-earnings ratio is
around 13x and price-to-book is 1.1x which looks attractive as this
level is around the 5-year low and together with Japanese
company’s improvement of corporate governance.
On 27 April 2016, pricing and dealing of the Allianz Japan Fund was
suspended.
11 May 2016
* Source: Allianz Global Investors/Datastream. Fund performance based on end of day prices, net of fees and expenses, with net revenue re-invested in Sterling.
Benchmark performance based on end of day prices.
Allianz Japan Fund
The contents of this Investment Review are based on the views of
the manager at the time of writing, which may be subject to
change.
Investors are reminded that the value of shares within an OEIC fund,
and the income from them, may go down as well as up and is not
guaranteed. An investor may not get back the amount invested. The
past is no guide to future performance.
The opinions expressed here are believed to be accurate and
reliable, however these opinions may change without notice.
Although the information is believed to be reliable, Allianz Global
Investors does not guarantee the timeliness, accuracy or suitability
of such information in any way and anyone who acts on the
information does so at their own risk. Allianz Global Investors only
provides information on our own products and does not give advice
based on personal circumstances.
Classification of Investments
On 27 April 2016, pricing and dealing of the Allianz Japan Fund was
suspended. As at 30 April 2016, the Fund held no investments.
Ten Largest Holdings as at 30 April 2015
(%)
Yamaha Motor
7.01
Teijin
5.05
Sony
4.56
Dai-Ichi
4.39
Nidec
4.36
Astellas Pharmaceuticals
4.32
Daikin
4.24
Obayashi
3.95
Mitsubishi UFJ Financial
3.42
Toyota Industries
Total
Sector Breakdown as at 30 April 2015
Automobiles & Parts
Banks
3.41
44.71
(%)
10.42
8.54
Chemicals
5.05
Construction & Materials
6.14
Electronic & Electrical Equipment
10.38
Food Producers
4.33
General Industrials
2.21
General Retailers
2.44
Health Care Equipment & Services
2.98
Industrial Engineering
11.51
Industrial Transportation
3.16
Leisure Goods
7.33
Life Insurance
4.39
Non-Life Insurance
0.90
Personal Goods
1.06
Pharmaceuticals & Biotechnology
6.49
Real Estate Investment & Trusts
2.12
Technology Hardware & Equipment
1.02
Travel & Leisure
4.05
Net other assets
Net Assets
5.48
100.00
Allianz Japan Fund
Further Information
The information in this report is designed to enable
shareholders to make an informed judgement on the activities
of the Fund during the year covered by the report and the
results of those activities at the end of the year.
More information on the performance and make-up of this
Fund is available on our Fund factsheets, which you can view
via our Literature Library on www.allianzglobalinvestors.co.uk.
You can also request a valuation at any time by calling
0800 073 2001.
Alternatively, our Investor Services team will be happy to
respond to any issues you may wish to raise with them
regarding product information and Fund performance. If you
have invested via a financial adviser, you should contact them
first if you wish to discuss your investment in greater detail.
Price Publication: Prices are published on the AllianzGI
website www.allianzgi.co.uk
Authorised Corporate Director (ACD): Allianz Global
Investors GmbH, UK Branch, 199 Bishopsgate, London
EC2M 3TY
Depositary: J.P. Morgan Europe Limited, Chaseside,
Bournemouth BH7 7DA
Independent Auditors: PricewaterhouseCoopers LLP, 7 More
London Riverside, London SE1 2RT
Registrar of Shareholders: International Financial Data
Services (UK) Limited, IFDS House, St. Nicholas Lane, Basildon,
Essex SS15 5FS
Investor Services: 0800 317 573
[email protected]
Allianz Global Investors GmbH, UK Branch,
199 Bishopsgate, London EC2M 3TY
Phone: 0800 317 573
Fax: 020 7638 3508
www.allianzglobalinvestors.co.uk
This report is printed on elemental chlorine-free paper, produced from FSC certified forests. The paper is ISO 9001 and ISO 14001 certified. Vegetable based inks are compliant
with ISO 12647-2, supplied in recyclable plastic tubes.
Issued by Allianz Global Investors GmbH, UK Branch. Registered in England No. 1963362. Authorised by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and subject
to limited regulation by the Financial Conduct Authority. Member of The Investment Association. Firm Registered No. 122218.
IFDS Fund code: 102
CD1650