Document 6601017

• The Fund aims at long-term capital appreciation and income, investing primarily in EUR, USD, GBP, JPY, AUD, NZD or any Asian currency denominated debt markets, with the focus on Asian countries.
• The Fund is exposed to significant risks which include investment/general market, interest rate changes, creditworthiness, emerging market and currency (in particular Chinese Renminbi
currency) risks.
• The Fund may invest in high-yield, non-investment grade investments, unrated securities and convertible bonds which may subject to higher risks, such as credit, default, interest rate
changes, general market and liquidity risks and therefore may increase the risk of loss of original investment.
• The Fund may invest more than 10% and up to 35% of the assets in interest-bearing securities issued or guaranteed by a non-investment grade sovereign issuer (e.g. Philippines) and is
subject to higher risks of credit, concentration and default of the sovereign issuer as well as greater volatility and higher risk profile that may result in significant losses to the investors.
• The Fund may invest in Chinese Renminbi interest-bearing securities, convertible bonds and certificates in issued outside Mainland China and assets denominated in offshore Chinese
Renminbi which may subject to higher risks of liquidity, credit/solvency of its counterparties, tax policies and risk of not having sufficient RMB for currency conversion prior to investment.
• The Fund may invest in financial derivative instruments (“FDI”) for efficient portfolio management (including for hedging) which may expose to higher counterparty, liquidity and market
risks. The Fund will not invest extensively in FDI for investment purpose.
• This investment may involve risks that could result in loss of part or entire amount of investors’ investment.
• In making investment decisions, investors should not rely solely on this material.
Note: Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Fund’s income and/or capital which in the latter case represents a return or withdrawal
of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease of the NAV and the capital of the
Fund available for investment in the future and capital growth may be reduced. Dividend payments are applicable for Class AM Dis (monthly distribution) and for reference only but not
guaranteed. Positive distribution yield does not imply positive return. For details, please refer to the Fund’s distribution policy disclosed in the offering documents.
le c
cies
urren
ip
Mult
D/USD
NZD/SG
P/HKD/
R/GB
/CAD/EU
AUD
able
avail
11/2014
Allianz Flexi
Asia Bond
Greater Flexibility for a
Wider Reach
• Flexible allocation strategy
investing in various Asian
bonds
• Wide range of currencyhedged share classes
• 5%1 average historical
annualised dividend yield
for monthly distribution
share classes (yields are not
guaranteed, dividend may
be paid out from capital) Note
1
The historical average annualised dividend yield means since its inception (03 July 2012) to 30 September 2014. Annualised Dividend
Yield = [(1 + Dividend Per Share / Ex-Dividend Date NAV)12 - 1] X 100. The annualised dividend yield is calculated based on the latest
dividend distribution with dividend reinvested, and may be higher or lower than the actual annual dividend yield. Positive distribution
yield does not imply positive return. Dividend is not guaranteed.
Allianz Flexi Asia Bond
Why invest in Allianz Flexi Asia Bond (“the Fund”)?
• The pace of growth for Asia is expected to be moderate over the next few years, while remaining the
highest growth region on a relative basis.
• The Fund captures investment opportunities in the region by flexibly allocating assets into investment grade
credits and high yield bonds, with the potential dual benefits of risk diversification and stream of income.
Economic growth of Asia outpaces Europe and the US
Pakistan
Vietnam
Taiwan
Indonesia
Korea
Malaysia
Philippines
India
Thailand
Singapore
Sovereign debt rating 2002*
Sovereign debt rating April 2014
Hong Kong
• Improved financial strengths have led to rating upgrades
of many Asian countries. Asian markets will continue to
see improvements in their ratings, posting the potential
capital appreciation of bonds.
Steady improvement in ratings of Asian countries
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BBelow B-
China
• Asia is the fastest growing region globally even though
the pace of growth for Asia is expected to be moderate
over the next few years as the economies become more
developed and urbanized. Foreign reserves in Asia have
grown strongly over the last decade to over USD5.4
trillion2, and the 2014 economic growth of emerging Asian
countries is projected to be 6.7% on a year-over-year basis3.
Source: Bloomberg, S&P’s, Allianz Global Investors Capital Markets & Thematic Research, as at
April 2014. * Long term foreign currency rating (Since 2002) .
Spectacular growth potential of the Asian bond market
Outstanding local currency bond as a percentage of the GDP
%
250
221
200
150
The difference
underscores high
growth potential
135
106
• The size of the local currency bond market is 81% of the
GDP in Asia on average, much lower than developed
markets such as Japan (221%). The large difference reflects
an enormous growth potential of the Asian bond markets.
47
50
73
39
17
Thailand
Singapore
Philippines
Korea
Indonesia
China
0
Hong Kong
14
Asia
average
= 81%
Japan
85
71
Vietnam
100
Malaysia
• The size of Asian local bond market has grown more
than double to USD7.4 trillion4 during the last five
years. Asian bond market offers more investment
opportunities as it expands the breadth and depth of
the local debt markets.
Source: Asian Development Bank, as at December 2013.
Asian bonds offer variety of choices and attractive yields
8
6
Asia-Pac Average: 4.1%
4
2.2%
2
Taiwan
Hong Kong
Singapore
South
Korea
Australia
Thailand
Malaysia
Philippines
New
Zealand
G7 Average: 1.9%
China
0
Indonesia
• Government bonds of Asian countries currently have
average yields of 4.1% per year. This makes them more
attractive than the average interest paid on bonds of
G-7 states (1.9%).
Asian bonds offer attractive yields
%
10
India
• The Asian bond market comprises a wide range
of bonds, which allow investors to make flexible
allocations according to the market situation.
Source: Bloomberg, Allianz Global Investors, as at 31 July 2014. Based on the yields of 10-year
government bonds in Asian countries.
Fund Features
1.Flexible allocation strategy in investing various Asian bonds
• The returns of different types of bonds vary at different
stages of the economic cycle. No single bond type can
persistently outperform all of the time.
Investment in a single bond cannot deliver returns at all times
%
Asian Investment Grades
79.5
80
Asian High Yield
Asian Convertibles
60
Asian Govt & Agencies
• The Fund can flexibly make allocations in different
types and regions of bonds according to the market
environment with the aim of maximising total potential
return of the portfolio and mitigating the impact from
market volatility.
40
20
22.1
18.6
5.2 5.3
8.2
-6.3
-20
6.3
1.0
0
24.4
20.0
15.4
7.9
12.2
7.3
4.9
5.0
11.3
7.3 8.9
-10.8
1.7 3.5
-2.6
-4.4 -3.7
3.01.90.81.9
-5.7
-31.2
-40
2007
2008
2009
2010
2011
2012
2013
YTD
March 2014
Source: Datastream, Allianz Global Investors Capital Markets & Thematic Research, as at March 2014.
2.Attractive income opportunities available
• Riding on the yield advantage of Asian bonds, the
Fund’s AM share classes aim to pay monthly dividends
(yields are not guaranteed, dividend may be paid out
from capital).Note It helps the investors seeking for the
opportunity of stable source of income.
• The investment team has demonstrated the ability
to deliver good performance as well as maintaining
a monthly dividend payout history* at an average
annualised dividend yield of over 5% 1.
Distribution history of Allianz Flexi Asia Bond – Class AM (USD)
Ex-Dividend Date
Dividend Per Share
(USD)
Annualised Dividend
Yield1 (%)
15/09/2014
0.0458
6.01
18/08/2014
0.0458
5.91
15/07/2014
0.0458
5.93
16/06/2014
0.0458
5.95
15/05/2014
0.0458
5.93
15/04/2014
0.0458
5.95
17/03/2014
0.0458
5.97
17/02/2014
0.0458
5.93
15/01/2014
0.0458
5.91
16/12/2013
0.0458
5.88
15/11/2013
0.0458
5.87
16/10/2013
0.0458
5.85
3.Wide range of currency-hedged share classes
• In addition to the HKD and USD share classes, six
currency-hedged share classes are offered to provide
convenience to investors with foreign exchange deposits.
• The currency-hedged share classes aim to provide
investors with returns correlated to the Fund performance
measured in based currency (USD) by mitigating the
effect of exchange rate fluctuations.
Investors
subscribed into
fund with
AUD/ CAD/ EUR/
GBP/ NZD/ SGD
Hedged share class currency
(Foreign exchange (FX)
exposure of investors)
Investors
received
redemption in
AUD/ CAD/ EUR/
GBP/ NZD/ SGD
AUD/ CAD/ EUR/ GBP/ NZD/ SGD
FX hedge
reduces currency
volatility
Base currency of the Fund
(FX exposure of portfolio)
USD
Allianz Flexi Asia Bond
Fund Highlights
Portfolio Summary
Top 10 Holdings
Average Coupon
6.38%
Average Credit Quality
BBB-
Country
%
India
2.8
INDIA GOVERNMENT BOND FIX 7.830% 11.04.18
Effective Maturity
3.70 years
PHILIPPINE GOVERNMENT 7-51 FIX 5.000% 18.08.18
Philippines
2.7
Effective Duration
3.31 years
CITIC LTD REGS PERP FIX TO FLOAT 8.625% 29.05.49
Hong Kong
2.7
Yield to Maturity
5.44%
Monthly Dividend History*
Dividend /
Share
Annualised
Dividend Yield5
Ex-Dividend Date
USD
USD 0.0458
6.01%
15/09/2014
HKD
HKD 0.0458
6.01%
15/09/2014
H2-AUD
AUD 0.0625
8.23%
15/09/2014
H2-CAD
CAD 0.0500
6.53%
15/09/2014
H2-NZD
NZD 0.0583
7.61%
15/09/2014
H2-EUR
EUR 0.0417
5.64%
15/09/2014
H2-GBP
GBP 0.0458
6.22%
15/09/2014
H2-SGD
SGD 0.0458
6.26%
15/09/2014
Class AM Dis.
INDIA GOVERNMENT BOND FIX 8.120% 10.12.20
India
2.6
IDBI BANK LTD/DIFC DUBAI EMTN FIX 5.000% 25.09.19
India
2.3
BATELCO INT FIN NO 1 LTD EMTN FIX 4.250% 01.05.20
Bahrain
2.3
GCX LTD REGS FIX 7.000% 01.08.19
Bermuda
2.3
India
2.3
INDIA GOVERNMENT BOND FIX 7.800% 03.05.20
TRIKOMSEL PTE LTD FIX 5.250% 10.05.16
Singapore
2.2
MEDCO ENERGI INTERNASION OB FIX 8.850% 15.03.18
Indonesia
2.2
Total
Credit Rating Allocation (%)
24.4
Currency Allocation (%)
Liquidity 2.4
Others -1.6
A 5.8
KRW 0.3
PHP 4.7
BBB 43.1
USD 48.2
HKD 5.5
B 5.8
CNH 8.9
AA 7.1
SGD 9.3
BB 21.7
Not Rated 15.7
IDR 13.0
INR 10.1
Bond Type Allocation (%)
Country Allocation (%)
Cayman Islands 19.1
Liquidity 2.4
Others 4.5
Jersey, Channel Islands 2.2
Bermuda 2.3
Bahrain 2.3
Philippines 4.7
Liquidity 2.4
Others -1.6
Quasi-Sovereign 2.3
Corporate 71.8
Sovereign 25.2
Indonesia 15.1
Hong Kong 9.9
British Virgin Islands 13.7
Singapore 11.8
India 12.1
Fund Details
Class AM
(USD) Dis.
Class AM
(HKD) Dis.
Class AM
Class AM
Class AM
Class AM
(H2-AUD) Dis. (H2-CAD) Dis. (H2-NZD) Dis. (H2-EUR) Dis.
Benchmark
Chee Seng Cheng
Fund Size
USD 177.74m
Base Currency
USD
Subscription Fee (Sales Charge)
Up to 5%
Management Fee (All-in Fee6)
Inception Date
Dividend Frequency*
ISIN Code
Bloomberg Ticker
1.50% p.a.
1.54%
1.54%
1.54%
1.54%
1.54%
1.55%
1.55%
1.56%
1.55%
USD 9.33
HKD 9.34
AUD 9.39
CAD 9.40
NZD 9.45
EUR 9.03
GBP 9.02
SGD 8.96
USD 10.54
03/07/2012
03/07/2012
03/07/2012
03/07/2012
17/07/2012
01/03/2013
01/03/2013
01/03/2013
03/07/2012
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
N/A
LU0745992734 LU0706718086 LU0706718243 LU0706718755 LU0790109010 LU0706718672 LU0706718326 LU0706718169 LU0745992494
AFABAMU LX
AFABAMH LX
AFAMH2A LX
AFAMH2C LX
AFAATNZ LX
ALFMH2E LX
ALFMH2G LX
ALFMH2S LX
AFAATUS LX
Source: All fund data quoted are Allianz Global Investors, as at 30 September 2014, unless stated otherwise.
* Dividend payments are applicable for Class AM Dis (monthly distribution) and for reference only. Yields are not guaranteed, dividend may be paid out from capital. Positive distribution yield does not imply positive return.
1
The historical average annualised dividend yield means since its inception (03 July 2012) to 30 September 2014. Annualised Dividend Yield = [(1 + Dividend Per Share / Ex-Dividend Date NAV)12 - 1] X 100. The
annualised dividend yield is calculated based on the latest dividend distribution with dividend reinvested, and may be higher or lower than the actual annual dividend yield. Positive distribution yield does not imply
positive return. Dividend is not guaranteed.
2
World Bank, IMF, National Central Banks; Allianz Global Investors Capital Markets & Thematic Research, as at February 2014.
3
IMF, as at April 2014.
4
Asian Development Bank – Asia Bond Monitor, as at March 2014.
5
Annualised Dividend Yield = [(1 + Dividend Per Share / Ex-Dividend Date NAV)12 - 1] X 100. The annualised dividend yield is calculated based on the latest dividend distribution with dividend reinvested, and may be
higher or lower than the actual annual dividend yield. Positive distribution yield does not imply positive return. Dividend is not guaranteed.
6
The All-in-Fee includes the expenses previously called management and administration fees.
7
Total Expense Ratio (TER): Total cost (except transaction costs) charged to the Fund during the last financial year expressed as a ratio of the Fund’s average NAV. For share classes that have been incepted for less than one year
as at close of the last financial year (please refer to the Inception Date in the Fund Details table), the TER will be annualized. For share classes incepted after the close of the last financial year, the TER will be reflected as N/A.
Information herein is based on sources we believe to be accurate and reliable as at the date it was made. We reserve the right to revise any information herein at any time without notice. No offer or solicitation to buy or sell
securities and no investment advice or recommendation is made herein. In making investment decisions, investors should not rely solely on this material but should seek independent professional advice.
Investment involves risks, in particular, risks associated with investment in emerging and less developed markets. Past performance is not indicative of future performance. Investors should read the offering documents for
further details, including the risk factors, before investing. This material and website have not been reviewed by the SFC. Issued by Allianz Global Investors Hong Kong Limited. Allianz Global Investors Hong Kong Limited
(27/F, ICBC Tower, 3 Garden Road, Central, Hong Kong) is the Hong Kong Representative and is regulated by the SFC (35/F, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong).
Investment hotline: +852 2238 8000
www.allianzflexiasiabond.com
AGI 314/2014
Unit NAV
Class AT
(USD) Acc.
HSBC Asian Local Bond Index
Fund Manager
Total Expense Ratio7
Class AM
Class AM
(H2-GBP) Dis. (H2-SGD) Dis.