Allianz Smart Global Equity Active UCITS ETF Accum USD · LSE:AZGQ
Allianz Smart Global Equity Active UCITS ETF Accum USD — Allianz Global Investors — Investor Presentation (May 2022)
50 slides from Allianz Smart Global Equity Active UCITS ETF Accum USD's investor presentation, May 2022
Slide 1: Active is: Investing in the future
Strictly for distributors and accredited investors only. Not for public distribution Active is: Investing in the future Allianz Global Artificial Intelligence May 2022 Value. Shared. 1
Slide 2: Agenda
Agenda 1 3 Equity market update 2 Artificial Intelligence: the future is now 4 Allianz Global Artificial Latest developments in Intelligence: portfolio artificial intelligence characteristics 2
Slide 3: Equity market update
Allianz @ lobal Investors Equity market update 1
Slide 4: Market performance YTD and S&P 500 by sector
Market performance YTD and S&P 500 by sector More volatility due to concerns over faster rate hikes, higher inflation, variants, and Ukraine tensions Equity Market Performance YTD S&P 500 Sector Performance YTD MSCI China -16% Energy 53% MSCI Emerging Markets -17% Utilities -4% MSCI Japan -18% Consu
Slide 5: Russell US Indexes by market cap and style
Russell US Indexes by market cap and style Mega Cap & Value holding in better due to concerns over inflation, rates, geopolitical conflicts, COVID variants, etc. YTD 1Q22 Value Core Growth Value Core Growth Russell Russell Large Large 1000 -12.5% -21.7% -29.9% 1000 -0.7% -5.1% -9.0% Russel Russel Mi
Slide 6: Recent S&P 500 returns driven by multiple contraction
Recent S&P 500 returns driven by multiple contraction 10-Year US Treasury Yields with Consensus Estimates Percent Change in S&P 500 Index, EPS and P/E Futures are pointing to modestly higher yields with faster The market’s 1-year return has been driven by hikes now, but normalizing back near prior l
Slide 7: S&P 500 valuation by sector
S&P 500 valuation by sector P/E ratio on 2022 estimates is now slightly below 2019 levels as the market prices in a higher interest rate outlook P/E 2019 P/E 2020 P/E 2021 P/E 2022 Est. 70 65x 60 57x 55x 53x 49x 50 41x 40 35x34x 34x 34x 30x 30x 28x 29x 30 26x 25x 25x 23x 23x 22x 23x 22x 22x23x 22x22
Slide 8: Market declines: A history of recoveries
Market declines: A history of recoveries Over the last 20 years, recoveries have followed sharp declines and long-term investors may have benefitted S&P 500 cumulative returns (%) NASDAQ Composite cumulative returns (%) Max Drawdown 1-Year 2-Year Max Drawdown 1-Year 2-Year 150 150 117 95 99 103 100
Slide 9: Allianz Global AI: innovation & disruption continues to accelerate
Allianz Global AI: innovation & disruption continues to accelerate with many opportunities ahead Dynamic market environment Performance more challenged Outlook and positioning Reopening & inflationary pressures Style headwinds, defensive mega cap Normalization with growth moderating Economies tran
Slide 10: Allianz Global Artificial Intelligence: Portfolio characteristics
Allianz Global Artificial Intelligence Portfolio characteristics 2 10
Slide 11: Performance of Allianz Global Artificial Intelligence
This slide is for distributor internal use only Performance of Allianz Global Artificial Intelligence Class AT (USD) Acc. versus a broad technology and global market index Returns in USD (%) As of 31 May 2022 Annualized since Allianz Global AI YTD 2021 2020 2019 Inception (31 Mar 2017) Allianz Globa
Slide 12: Potential to disrupt every industry
Potential to disrupt every industry The Fund1 invests across a broad spectrum of technologies and sectors embracing the disruptive power of AI AI-enabled Industries (36%)2 AI Applications (22%)2 AI Infrastructure (39%)2 Source: Allianz Global Investors. 1The Fund refers to Allianz Global Artificial
Slide 13: A diversified AI investment landscape
A diversified AI investment landscape A growing universe of opportunities across many areas and sectors The adoption of AI in key vertical business processes to drive AI-enabled Industries. AI-enabled Industries ► Examples: Tesla, Enphase Energy, Deere, Plug Power, Anthem, American Express AI Applic
Slide 14: Historical AI category breakdown
Historical AI category breakdown Summary of recent allocation changes Mar Jun Sep Dec Mar 2021 2021 2021 2021 2022 100% CashCash AI-enabled Industries 48% 45% 44% 38% 38% 90% Comm Services 12% 12% 8% 6% 3% AI-enabled 80% Industries Healthcare 6% 7% 6% 7% 5% Consumer 10% 6% 12% 11% 12% 70% Industrial
Slide 15: Actively managed, focused fund on the AI opportunity
Actively managed, focused fund on the AI opportunity Seek to invest in innovative companies across the full market cap spectrum Portfolio weight by market capitalization High active share 16.2% Allianz Global Artificial Intelligence MSCI World Information Technology Index MSCI All Country World Inde
Slide 16: Fund characteristics
Fund characteristics Allianz Global Artificial Intelligence As of 31 May 2022 Blended Blended Characteristics Portfolio Sector Allocation Portfolio (%) Benchmark1 Benchmark1 (%) Number of Holdings 66 2,931 Information Technology 55.6 60.6 Cash 3.1% 0.0% Communication Services 14.3 3.8 Yield 0.5% 1.5
Slide 17: Geographical breakdown
Geographical breakdown Allianz Global Artificial Intelligence 52% 15% 31% Revenue by geographic region (%) Exposure by country of domicile (%) Americas 51.5 US 84.2 France 1.3 Asia Pacific 30.8 Netherlands 3.1 Korea 0.6 EMEA 14.6 Canada 2.1 Japan 0.6 China 1.8 Israel 0.5 Australia 1.8 Taiwan 0.4 Thi
Slide 18: Allianz Global Artificial Intelligence – top 10 holdings
Allianz Global Artificial Intelligence – top 10 holdings Top 10 holdings Description AI investment rationale Allocation (%) 1 Tesla Tesla designs and manufactures high-performance electric Tesla is one of the leading innovators in making autonomous vehicles a reality. 6.1% vehicles and powertrain co
Slide 19: Allianz Global Artificial Intelligence – top 10 holdings
Allianz Global Artificial Intelligence – top 10 holdings Top 10 holdings Description AI investment rationale Allocation (%) 6 Meta Meta Platforms is the leading provider of mobile and AI is now becoming a vital part of Facebook. It’s being used to recognize the 3.8% internet applications to connect,
Slide 20: AI Infrastructure, Applications and AI-enabled Industries drivers
2 AI Infrastructure Healthy demand for the ongoing build-out of AI infrastructure is supported by many secular growth drivers including cloud, 5G, IoT, edge computing, electric & autonomous vehicles, leading-edge manufacturing, etc. AI Applications AI is getting embedded into an increasing numbe
Slide 21: Artificial Intelligence: The future is now
Artificial Intelligence: The future is now 2 AI is likely the Benefit from an An expert team biggest driver of actively managed with decades of innovation and fund that invests in experience and disruption since the companies across closely connected internet all sectors with to Silicon Valley expos
Slide 22: Artificial Intelligence: the future is now
3 Artificial Intelligence: the future is now 22
Slide 23: Definition of Artificial Intelligence (AI)
Definition of Artificial Intelligence (AI) What is AI?1 Artificial intelligence is the ability of a program or machine to think and learn like a human. We are now training machines to see, hear, navigate, and interact in real time. AI encompasses a broad set of disciplines: deep learning, machine le
Slide 24: We are witnessing the beginning of the 4th Industrial Revolution
We are witnessing the beginning of the 4th Industrial Revolution 4th Industrial Revolution complexity 3rd Industrial Revolution Fusing the physical, 2nd Industrial digital, biological worlds; Revolution Further automation and 1st Industrial Revolution AI Infrastructure (Big digitalisation; Data) and
Slide 25: The journey to intelligence
The journey to intelligence The development of artificial intelligence: rapid transition thanks to mobile, cloud and big data Artificial intelligence Digital transformation Mainframe Client server Internet Mobile & Cloud computing 2020s 1950 1980 2000 2010 Programmable era Intelligence era Source: I
Slide 26: Technology sector outperformance in recent years
Technology sector outperformance in recent years USD Market Cap Path of FANG*, BAT*, a broad technology and global equity universe 600 600 550 550 500 500 +400% FANG* 450 450 400 400 350 350 Global Tech +195% Universe 300 300 250 250 BAT* +76% 200 200 150 150 Global +75% Universe 100 100 50 50 FANG
Slide 27: AI’s potential to increase growth across every industry
AI’s potential to increase growth across every industry AI could contribute up to $15.7tn to the global economy in 2030. This is more than the current GDP of China and India combined.1 AI is expected to boost profits in many industries over the long term2 84% 55% 53% 44% Education Healthcare Farming
Slide 28: Latest developments in artificial intelligence
Latest developments in artificial 4 intelligence 28
Slide 29: Potential to disrupt every industry
Potential to disrupt every industry Opportunities across a broad spectrum of technologies and sectors embracing the disruptive power of AI AI-enabled Industries AI Applications AI Infrastructure AI Infrastructure Source: Allianz Global Investors 2020. Customized sub-sector weightings are shown as su
Slide 30: Artificial intelligence is already here and making people’s lives easier
Artificial intelligence is already here and making people’s lives easier Internet Health Home Farming Retail of things Source: Allianz Global Investors, 2019 30
Slide 31: Online video is disrupting traditional media with AI
Online video is disrupting traditional media with AI Video streaming across thousands of channels Intelligent search for finding relevant video content Personalization of the user experience Embedded Technology directly in televisions allows for ease of use Source: Allianz Global Investors and Roku
Slide 32: In healthcare and agriculture, AI is opening up new possibilities
In healthcare and agriculture, AI is opening up new possibilities Early & more accurate diagnosis of certain diseases Improve quality of life through personalized plans and disease prevention Better crop forecasts and resource efficiency Optimize crop yield and reduce application of pesticides Sourc
Slide 33: AI has the potential to increase growth in every industry
AI has the potential to increase growth in every industry AI’s potential to increase economic growth rates in annual gross value added by 2035 across 16 industries % 6.0 4.8 5.0 4.4 4.3 4.0 4.0 3.8 4.0 3.4 3.4 3.4 3.4 3.2 3.1 3.1 2.8 3.0 2.4 2.1 2.1 2.3 2.2 2.3 2.3 2.0 1.9 2.0 1.6 1.7 1.6 1.3 1.4 1.
Slide 34: Investments in AI research help propel innovation
Investments in AI research help propel innovation In Germany, the government adopted a national AI strategy In China, the Japan’s Society 5.0 and earmarked €3 billion for government is estimated government strategy is investment in AI research and to be investing $57bn on for a sustainable developme
Slide 35: AI innovation is here to stay
AI innovation is here to stay In the words of AI adopters… 81% 74% 73% Agree that AI will be Believe AI is “very” or integrated into all “critically” important to enterprise applications their business today within 3 years. 64% 53% <50% Said AI technologies enable Of adopters have a high them to est
Slide 36: Grassroots Research Global IT Spending Trends and AI Adoption Survey
Grassroots® Research Global IT Spending Trends and AI Adoption Survey Key technology areas in the next 5 years Adoption level of AI What technologies do you see having the greatest What is the level of AI adoption in your organization? impact on your company in the next five years? CyberSecurity 40%
Slide 37: Landscape of AI startups across categories
Landscape of AI startups across 13 categories There are 3,823 AI startups with $200B in funding as of April 2022 Source: Venture Scanner, April 2022. This is no recommendation or solicitation to buy or sell any particular security. A security mentioned as example above will not necessarily be compri
Slide 38: Still at the beginning of the AI revolution
Still at the beginning of the AI revolution We believe AI could approach human intelligence in the next 10-15 years Autonomous AI Fully Autonomous Systems Human-supervised AI Human sensory capabilities, Cognitive Systems walking robots and self- learning machines and Machine Vision Machine Learning
Slide 39: Appendix A
Allianz @) Global Investors Appendix A
Slide 40: The AllianzGI technology team
The AllianzGI technology team Experienced and connected Based in San Francisco, the technology team has decades of experience covering technology & innovation and deep relationships across Silicon Valley Managing long only and long/short technology portfolios since 2004 Senior team members with
Slide 41: Bottom-up, fundamental strategy investing in AI
Bottom-up, fundamental strategy investing in AI Investment process Idea generation Fundamental research Portfolio construction >1,000 innovative companies ~150-200 stocks ~40-100 holdings Seeking out companies that stand to • Focus on AI’s disruptive impact • Upside/downside profile benefit from: on
Slide 42: Researching Opportunities
Researching Opportunities Gathering and analysing data from multiple sources is an essential part of our active approach to investing Factor research Thematic research Grassroots® Macroeconomic research research Multi-asset * research Credit research Proprietary collaboration platform is used to tes
Slide 43: Grassroots Research: Providing new perspectives
Providing new perspectives Grassroots® Research answers specific questions about key stock and industry drivers and seeks to identify inflection points in business trends Industry contacts Grassroots® Consumers Collaborative in-house study design among analysts Alternative AllianzGI research
Slide 44: Allianz Global Artificial Intelligence - AT - USD
Allianz Global Artificial Intelligence - AT - USD Source: Allianz Global Investors, as of 30 April 2022. Allianz Global Artificial Intelligence - AT – USD inception date: 31 March 2017. Past performance of the fund manager(s) and the fund is not indicative of future performance. Fund performance is
Slide 45: Allianz Global Artificial Intelligence - AT - USD
Allianz Global Artificial Intelligence - AT - USD Source: Allianz Global Investors, as of 30 April 2022. 5 ) From 31 March 2017 to 31 December 2017, the benchmark for the Fund was MSCI World IT Total Return (NET) in USD. With effect from 1 January 2018, the benchmark for the Fund has been changed to
Slide 46: Global Artificial Intelligence team biographies
Global Artificial Intelligence team biographies Sebastian Thomas, CFA James Chen, CFA Managing Director Director Senior Portfolio Manager, Senior Analyst, Technology Portfolio Manager, Senior Analyst, Technology Mr. Thomas is a senior portfolio manager, a senior analyst and a managing director with
Slide 47: Opportunities and risks
Allianz Global Artificial Intelligence Opportunities and risks Opportunities Risks High return potential of stocks in the long run High volatility of stocks, losses possible. The volatility of fund unit prices may be strongly increased. Investments specifically in the artificial intelligence a
Slide 48: Conditions of use and disclaimer
Conditions of use and disclaimer You accept the following conditions of use: Purpose You understand and acknowledge that this information has been provided to you solely for the purpose of performance analysis. Confidentiality You agree that you shall keep this information strictly confidential and
Slide 49: Important notes
Important notes 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
Slide 50: Active is: Allianz Global Investors
Active is: Allianz Global Investors 50
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