Multiple currency share classes (including currency-hedged) available Active is: Mapping new opportunities across China Allianz All China Equity • Capturing attractive opportunities for both onshore and offshore China equities • A focused portfolio of high conviction stocks that fit the criteria of growth, quality and valuation • Key investment themes focusing on domestic-driven growth Q3 2021 Allianz All China Equity Why invest in Allianz All China Equity (the “Fund”)? • Despite being the epicentre of the COVID-19 outbreak initially, China’s resilience is shining through by being the first country to see a recovery from the economic downturn caused by the pandemic. • The Fund invests in a holistic portfolio that allows investors to capture opportunities across China equities, regardless of where they are listed. It is also a more efficient way of investing, compared to having separate A shares / H share allocations. China’s evolving economic importance China's equity market may provide investors with broad access to significant opportunities • China, the second largest economy today, is forecasted to overtake the United States as the US SH world's largest economy. The China A-Shares SZ market is the most direct way to access this HK opportunity. • China is ‘first-in, first-out’ of the economic downturn, with the country being the first major economy to report positive GDP growth China since the COVID-19 outbreak. The economic Shenzhen Shanghai Stocks US-listed recovery should support outlook for earnings A-shares A-shares listed in HK ADRs Total Euro Area growth in 2021. Market cap (USD tn) 5.8 7.6 5.5 1.6 20.5 10.3 • As MSCI adds China A-Shares into emerging- Number of market indices, China's growing importance stocks 2,455 1,974 1,341 152 5,922 3,561 will increasingly be reflected in global equity Source: Shenzhen Stock Exchange, Shanghai Stock Exchange, Hong Kong Stock Exchange, indices. In our view, the exposure of foreign Bloomberg, Allianz Global Investors, as of 30 June 2021. The total figures are for comparison only, investors to A-shares should increase noticeably. the stocks included may be listed in more than one exchange. Offshore China stocks are defined based on companies with ultimate parent domiciled in China. Suspended stocks, investment funds and unit trusts are excluded. Capturing attractive opportunities – Sector breakdown of MSCI China All Shares Index % China A-Shares Hong Kong-listed US-listed both onshore and offshore 30 • There is a diverse set of companies listed in 25 Structural growth areas such as the offshore and onshore markets. Chinese Consumer, IT, Industrials, New 20 companies listed in Hong Kong are more Materials and Health Care are better represented in Energy and Utilities – mature, while China A-Shares represent more 15 China A-shares markets more choice in H-shares “new economy” opportunities. 10 • China A-shares provide exposure to structural growth areas such as the expanding Chinese 5 middle class, rising domestic brands and 0 Cons. Financials Comm. Health Cons. IT Industrials Materials Real Utilities Energy surging technology-led innovations. Disc. Services Care Staples Estate • A holistic portfolio that includes onshore and Source: Bloomberg, Allianz Global Investors, as of 30 June 2021. Past performance, or any prediction, offshore markets allows investors to participate projection or forecast, is not indicative of future performance. in the secular growth trends in China without constraints of the companies’ listing locations. Difficult to time the China equity markets Calendar year return for different China equity markets Shanghai-listed Shenzhen-listed HK-listed China stocks US-listed China stocks • Market timing is difficult in the different China Return 27% 49% 83% 12% 51% 20% 26% 39% 11% equity markets. As illustrated in the chart, dispersion the annual performance gap between the 60 best and the worst performing China equity 40 markets can be as high as 83%. The disparity 20 is huge, considering that they share the same macro backdrop. 0 • Our “All China” approach only seeks to add -20 Price return in USD (%) return Price value through stock selection, rather than -40 market or sector allocation. 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Source: Thomson Reuters Datastream, Allianz Global Investors, as of 30 June 2021. Index used for calculation: Shanghai SE Composite Index, Shenzhen SE Composite Index, Hang Seng China Enterprises Index, and BNY Mellon China ADR Index. Investment involves risks. Past performance is not indicative of future performance. Individual performance will vary. Allianz All China Equity Fund Features A comprehensive China equity strategy • The Fund invests holistically across China equities 40% in China A Shares listed in irrespective of whether they are listed in Shanghai, Shanghai and Shenzhen Shenzhen, Hong Kong, New York and so on. • It has a similar allocation to MSCI China All Share Index (close to 40% China A, 60% offshore China), 60% in offshore China which is a more balanced representation of growth equities listed in Hong Kong, opportunities in China. New York, etc. Investing with conviction Key stock criteria • By applying three key criteria – growth, quality and valuation, the Fund aims to build a high conviction Around 55-75 portfolio of around 55-75 high conviction stocks that high conviction offer exposure to China's long-term economic growth Growth stocks with potential across various sectors. sustainable growth • The investment team places great importance on in- at reasonable depth due diligence for stock selection by conducting valuation approximately 1,000 company meetings and site visits yearly. The team also leverages on deep local expertise Quality Valuation and unique Grassroots® Research, as well as ESG Research, which provide valuable market insights, in order to make the best investment decisions. Source: Allianz Global Investors. Information herein is valid as at the time of publication. During any given stage of the investment process, the selection criteria may vary from those shown above. The diagrams above reflect the typical investment process applied to this strategy/fund. At any given time, other criteria may affect the investment process.*Grassroots® Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate Grassroots® Research reports are received from independent, third-party contractors who supply research that, subject to applicable laws and regulations, may be paid for by commissions generated by trades executed on behalf of clients. Diverse opportunities in China’s growth story Opportunities in a mixture of old and new economy sectors The Fund provides access to China’s long-term growth drivers with opportunities in both old and new economy sectors • Self-sufficiency – In an increasingly polarised world, China has a strategic need to become more self-sufficient in key areas. We expect a high level of infrastructure spending to be maintained in areas such as 5G, semiconductors, and renewables. • Foreign substitution – the quality of Chinese manufacturing Renewable energy Domestic tourism Health care is improving quickly and in doing so, Chinese companies are & consumption increasingly able to displace foreign competitors in what is known as ‘import substitution’. • Renewable energy – China has announced targets to reach peak carbon emissions by 2030 and achieve carbon neutrality in 2060. This should lead to significant investment in areas such as solar and electric vehicles, which are key to China’s carbon transition. • Domestic tourism & consumption – We expect a recovery in discretionary spending in the coming year. With little Self-sufficiency Foreign immediate prospect of outbound travel, domestic tourism substitution companies should see meaningful growth opportunities Source: Allianz Global Investors, as of 30 June 2021. During any given stage of the investment process, the selection criteria may vary from those shown above. The • Health care – There has been a surge in biotech spending diagrams and statements above reflect the typical investment process applied to this over the last decade in the country and this may provide a strategy/fund. At any given time, other criteria may affect the investment process. widening range of investment opportunities. Allianz All China Equity 4 TM Fund Highlights Overall Morningstar Rating Top 10 Holdings Sector Allocation (%) Sector % Liquidity 1.8 Alibaba Group Holding Cons. Disc. 7.9 Energy 1.4 Cons. Disc. 23.9 Tencent Holdings Ltd Communication Services 6.4 Real Estate 2.3 Contemporary Amperex TE Industrials 4.5 Communication Services 7.2 Financials 13.6 Meituan Cons. Disc. 3.8 Healthcare 8.4 Wuliangye Yibin Co. Ltd Cons. Staples 2.7 Industrials 11.6 Yunnan Energy New Material Materials 2.4 Materials 9.2 Cons. Staples 10.1 IT 10.5 Shanxi Xinghuacun Fenwi Cons. Staples 2.4 Jiangsu Hengli Hydrauli Industrials 2.2 Shares Allocation (%) Will Semiconductor Co IT 2.1 Liquidity 1.8 Wuxi Biologics (Cayman) Healthcare 2.0 Others 2.5 A Shares 50.6 Taiwan 2.0 Total 36.4 ADR 5.4 HK Listed 37.7 Fund Details Share Class Class AT (USD) Acc. Class AT (H2-RMB) Acc. Class AT (H2-SGD) Acc. Benchmark5 MSCI China All Shares Index Total Return Net Fund Manager Anthony Wong, Kevin You Fund Size1 USD 1,942.07m Base Currency USD Number of Holdings 71 Initial Fee Up to 5% Up to 5% Up to 5% All-in-Fee2 2.25% p.a. 2.25% p.a. 2.25% p.a. Total Expense Ratio3 2.30% 2.31% 2.29% Unit NAV USD 19.37 CNY 18.29 SGD 17.42 Inception Date 05/12/2017 13/04/2018 13/04/2018 Dividend Frequency N/A N/A N/A ISIN Code LU1720050803 LU1794554631 LU1794554557 Bloomberg Ticker ALACEAT LX AAATH2R LX AAATH2S LX Source: All fund data quoted are Allianz Global Investors/IDS GmbH, as at 30 June 2021, unless stated otherwise.