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Allianz GIPF_230312_v7.indd - Fundsupermart.com

Allianz Global lnvestors Premier Funds

(an umbrella unit trust established under the laws of Singapore)

Annual Report

31 December 2011


Contents

A) Fund Overview

Page No.

Allianz Global Investors Premier Funds

- RCM Global High Payout Fund 3

Allianz Global Investors Premier Funds

- RCM Global Twin-Focus Fund 9

Allianz Global Investors Premier Funds

- AllianzGI Choice Equity Fund 15

Allianz Global Investors Premier Funds

- AllianzGI Enhanced Income & Growth Fund 18

Allianz Global Investors Premier Funds

AllianzGI US High Yield Fund 21

B) Financial Statements for the year ended 31 December 2011

Allianz Global Investors Premier Funds

- RCM Global High Payout Fund

Report of the Trustee 29

Statement by the Managers 30

Independent Auditors’ Report 31

Statement of Total Return 32

Balance Sheet 33

Portfolio Statement 34

Notes to the Financial Statements 52

Allianz Global Investors Premier Funds

- RCM Global Twin-Focus Fund

Report of the Trustee 65

Statement by the Managers 66

Independent Auditors’ Report 67

Statement of Total Return 68

Balance Sheet 69

Portfolio Statement 70

Notes to the Financial Statements 78

1


Contents

B) Financial Statements for the year ended 31 December 2011 (continued) Page No.

Allianz Global Investors Premier Funds

- AllianzGI Choice Equity Fund

Report of the Trustee 91

Statement by the Managers 92

Independent Auditors’ Report 93

Statement of Total Return 94

Balance Sheet 95

Portfolio Statement 96

Notes to the Financial Statements 98

Allianz Global Investors Premier Funds

- AllianzGI Enhanced Income & Growth Fund

Report of the Trustee 109

Statement by the Managers 110

Independent Auditors’ Report 111

Statement of Total Return 112

Balance Sheet 113

Portfolio Statement 114

Notes to the Financial Statements 115

Allianz Global Investors Premier Funds

- AllianzGI US High Yield Fund

Report of the Trustee 125

Statement by the Managers 126

Independent Auditors’ Report 127

Statement of Total Return 128

Balance Sheet 129

Portfolio Statement 130

Notes to the Financial Statements 131

2


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Manager’s Report

Annual Report to Unitholders (1 January 2011 to 31 December 2011)

Investment objective

The AllianzGI RCM Global High Payout Fund (the “Fund”) has a two-part investment strategy. Firstly, the

investment manager invests in stocks from a globally diversified universe that offer an attractive and sustainable

dividend yield. Secondly, call options on these stocks are sold to generate option premium, enhancing dividends

and reducing overall portfolio risk. By these means, the Fund’s investment objective to provide a total return from

dividend income, option premiums and capital appreciation should lead to sustainable distributions to investors.

Market Overview

Performance of equity markets in Q1 2011 was mixed. Initially, worries of deteriorating fiscal problems in Southern

Europe abated. A higher Institute for Supply Management (ISM) reading and decreasing unemployment figures for

the US as well as domestic EU growth recovering let developed markets to continue their upward trend. Markets

globally perceived the first evidence of cost inflation induced by rising input prices. Equities in China were

weaker reflecting a reversal of inflows in emerging and growth markets. China continued to increase interest rates

throughout H1 2011 to dampen inflationary concerns, leaving emerging markets lag the performance of developed

markets.

The nuclear disaster in Japan caused to a selloff in equities. Heightened concerns around rising radiation levels and

several failed attempts to improve the situation added to increased market nervousness around the globe.

Equity prices came under pressure in April when Standard & Poor’s (S&P) posted a negative outlook on the US

debt. The USD fell on a 30-year low versus a trade-weighted basket. At the same time, the Gold price surged to

new all time highs. Worries on contagion risks and an economic slowdown from the European periphery added

additional downside pressure on European markets. The current successful implementation of European rescue

measures does not overwrite fiscal austerity provisions that will keep peripheral European economic prospects in

bounds.

In August 2011, S&P passed a downgrade of US long-term credit from AAA to AA+ coupled with a negative

outlook and a significant chance for a further downgrade in the foreseeable future. Markets turned into panic mode

with a strong sell-off of world equity markets. In addition, recent economic data in the US and elsewhere suggest

that the global recovery has slowed. A rising number of investors now seem to be concerned about a prolonged

period of subdued growth.

The USD now rallied as investors seek a safe haven in US treasuries. This happened even against the Fed‘s negative

outlook on the US economy. The Fed initiated Operation Twist where shorter dated treasuries were sold against

longer dated maturities leading to lower long term interest rates, making credit more attractive and hence should

stimulate the economy. However, the negative market outlook of the Fed overwrote sentiment of the new provision

and risk appetite could not yet ignite.

There are early hopes that the European crisis could find a solution as Spanish, Italian and Greek governments

could past austerity packages that may get their countries back on track to meet current and future budget deficit

goals. Stock market levels indicate low valuations where stocks appear to be priced for a drop in earnings similar to

the 2007/09 cycle.

3


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Global equity markets enjoyed an impressive rally in Autumn and Winter 2011. The global stock market index

MSCI World All Country posted substantial gains in Q3 2011. Driver of the rally was an alleviation of the fiscal

problems of European periphery states. The EU Summit held at the end of October 2011 included news on Greek

debt write-downs, a leveraged European Financial Stability Facility (EFSF) rescue fund and plans for European

bank recapitalisation. In total, the proposed measures surprised markets and hope gathered that issues around

the fiscal debt situation in Europe could be rectified at last. Markets viewed that the measures proposed could

contribute to reduce the systemic risk that built up during the market drawdown experienced before.

By year-end, credit risk spreads for Italy surged to new euro-era highs and crossed the critical bond yield of 7% that

is necessary to maintain a sustainable fiscal household. Next, the Spanish government followed with an auction of

10-year bonds at an average yield close to 7%. In the meantime, the US seems to offer a resort for the risk averse.

US macroeconomic data has advanced and employment improved together with consumer confidence as well as

consumer spending.

Considering the integrated option strategy of generating option income, the Fund could demonstrate its strategy

by performing better than the overall equity market even in downward trending environment. The global equity

benchmark MSCI All Country World had to incur a loss of 7.35% whereas the Fund achieved a loss of only 4.67%,

leading the index by +2.67% (all in USD terms). The Benchmark 1 for the Fund lost 3.25% (in USD terms) while the

Fund (USD class) achieved a result with a loss of 4.67%, underperforming the benchmark by -1.42% 2 .

Outlook & Investment Strategy

Europe remains a challenging environment with an recession looming for many European countries. The great

exception is Germany prospering through its strong export oriented industries. However, structural drags in Europe

and also on the US economy have become more prevalant and should soon dominate over the cyclical effect:

The 2011 US Budget Control Act installed to comply with the corresponding debt ceiling will lead to more fiscal

tightening upon 2012 and beyond. Anemic growth in the developed world should prove a drag on Emerging Market

economies where GDP growth is also forecast to decelerate this year.

Even though monetary policy has eased further in both the US and the Euro area, fiscal consolidation appears the

prevailing effect to restrain global growth to a sub-par pace in the foreseeable future. Sovereign deleveraging will

likely dominate the macro landscape for years to come.

The most imminent risk scenario is a break-up of the Eurozone involving huge costs from disorderly sovereign

defaults in the fiscally weak and uncompetitive member states. A global recession would follow - not only a

European one - due to negative spill-over effects from fiscal tightening or continued stress in the financial system.

However, equities today are abnormally cheap relative to bonds and are a hedge against inflation risk with more

Quantitative Easing to come. History has often shown that low valuations and pessimistic assumptions can be

favorable for equity strategies. The probable deflation / inflation scenarios should limit any downside of equities

versus bonds. If investors worst fears fail to materialize, equities are bound to post healthy gains. High dividend

stocks would especially profit from an inflation scenario.

Stocks with a high and sustainable dividend yield remain attractive, especially to more risk-averse investors. By

systematically selling call options on stocks in the Fund, we are able to generate additional income. Especially in

sideways and bear markets, this should help to achieve superior returns to an equity-only investment.

1

The Benchmark for the Fund is a customised benchmark – 60% MSCI World + 40% Dividend Yield.

2

Fund performance is calculated in USD based on NAV-to-NAV with dividends reinvested.

4


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Disclaimer

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, however, if you choose not to

seek professional advice, you should consider the suitability of the product for yourself. Unit value and income

therefrom may fall or rise. Past performance of the fund manager(s) and the fund is not indicative of future

performance. Investment involves risks including the possible loss of principal amount invested and risks associated

with investment in emerging and less developed markets. Investors should read the fund prospectus, available from

the local representative or any of its appointed distributors, for further details including the risk factors, before

investing. The Fund may invest extensively in financial derivative instruments and/or structured products and be

subject to various risks (including counterparty, liquidity, credit and market risks etc.).

This material has not been reviewed by the Monetary Authority of Singapore (MAS). MAS authorization/

recognition is not a recommendation or endorsement. Issued by Allianz Global Investors Singapore Limited (3

Temasek Avenue, #07-05 Centennial Tower, Singapore 039190, Company Registration No.199907169Z).

5


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

1 Classification of investments

Please refer to the Portfolio Statement in the Annual Financial Statements.

2 Credit rating of debt securities

Nil.

3 Top 10 holdings as at 31 December 2011

US$ %

Imperial Tobacco Group PLC 2,648,963 1.54

Nestle B Shares 2,365,469 1.37

Union Pacific Corp 2,330,680 1.35

Astrazeneca PLC 2,306,673 1.34

Exxon Mobil Corp 2,286,360 1.33

AT & T Inc Com 2,265,750 1.32

Statoihydro ASA 2,209,100 1.28

International Business Machines Corporation 2,206,560 1.28

Intel Corp 2,182,500 1.27

Vodafone Group PLC 2,163,062 1.26

Top 10 holdings as at 31 December 2010

US$ %

Total SA 3,723,472 1.69

Du Pont (E.I.) De Nemours Co 3,391,160 1.54

Southern Co 3,345,125 1.52

Carnival Corporation Unit 3,319,920 1.51

Hyundai Heavy Industries Co Ltd 3,278,879 1.49

Roche Holdings-Genussshein 2,939,599 1.34

Hong Kong Electric Holdings Ltd 2,902,498 1.32

Nestle B Shares 2,878,178 1.31

Pfizer Inc 2,801,600 1.28

Linear Technology Corporation 2,734,190 1.25

4 Exposure to derivatives

Nil.

5 Global exposure

Nil.

6 Collateral

Nil.

6


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

7 Securities Lending or repurchase Transactions

Nil.

8 Investment in other schemes

Nil.

9 Borrowings

Nil.

10 Amount of subscriptions and redemptions 1 US$

Subscriptions: 19,645,832

Redemptions: 41,404,205

11 Amount of related party transactions

Nil.

12 Performance of the Fund 2 Since

3M 6M 1Y 3Y Inception*

% % % % %

Change Change Change Change Change

RCM Global High Payout Fund (SGD) 7.23 -6.01 -3.44 16.5 -18.84

Benchmark: 60% MSCI World + 40%

Div Y (SGD) 4.08 -0.77 -2.07 9.08 -18.52

RCM Global High Payout Fund (USD) 7.76 -11.11 -4.67 29.47 2.06

Benchmark: 60% MSCI World + 40%

Div Y (USD) 4.6 -6.06 -3.25 21.2 2.36

* Inception date: 21 February 2006

** Launch date: 19 December 2005

Past performance is not necessarily a guide to future performance.

7


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

13 Expense ratio 3 %

For the period from 1 January 2011 to 31 December 2011 1.94

For the period from 1 January 2010 to 31 December 2010 1.81

14 Turnover ratio 4 %

For the period from 1 January 2011 to 31 December 2011 69.82

For the period from 1 January 2010 to 31 December 2010 75.80

15 Any other material information that will adversely impact the valuation of the Fund

Nil.

16 Soft dollar arrangements, rebates, commissions and other monetary incentives received by Fund

Manager

Nil.

1

The total amount of subscriptions and redemptions includes CPF, SRS and Cash funds.

2

The performance returns of the Fund is sourced from Morningstar Fund Services and Allianz Global

Investors, calculated on a NAV-to-NAV basis with dividends reinvested at the NAV price in S$ term

and US$ in terms of the Fund’s respective class.

3

The expense ratio is calculated in accordance with the IMAS Guidelines on the disclosure of expense

ratios dated 25 May 2005. Interest expense arising on bank lending and other loans to the Fund,

brokerage and other transaction costs, foreign exchange gain.

4

On 28 December 2006, the Central Provident Fund Board (CPF Board) announced changes to the

CPF Investment Scheme. One of these changes is that from 1 January 2008, the expense ratio for

funds included under the CPF Investment Scheme has to be within the month.

5

The turnover ratio is calculated based on the lesser of purchases or sales expressed as a percentage

over the average NAV. The method is in accordance with the formula stated in the “Code on

Collective Investment Schemes”.

8


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Manager’s Report

Annual Report to Unitholders (1 January 2011 to 31 December 2011)

Investment objective

The RCM Global Twin-Focus Fund (the “Fund”) has a three-fold investment strategy. Firstly, the investment manager

invests in a portfolio of high quality stocks issued by large global companies. Secondly, covered call options is written

in an attempt to generate income from option. Finally, purchasing put options in an effort to protect the Fund against

significant market declines affecting its equity portfolio. By these means, the Fund’s investment objective to provide a

total return from investments in a portfolio of global stocks, sustainable distributions through stock dividends and the

writing of call options, and downside protection from a put option strategy.

Market Overview

Performance of equity markets in Q1 2011 was mixed. Initially, worries of deteriorating fiscal problems in Southern

Europe abated. A higher Institute for Supply Management (ISM) reading and decreasing unemployment figures for the

US as well as domestic EU growth recovering let developed markets to continue their upward trend. Markets globally

perceived the first evidence of cost inflation induced by rising input prices. Equities in China were weaker reflecting a

reversal of inflows in emerging and growth markets. China continued to increase interest rates throughout H1 2011 to

dampen inflationary concerns, leaving emerging markets lag the performance of developed markets.

The nuclear disaster in Japan caused to a selloff in equities. Heightened concerns around rising radiation levels and

several failed attempts to improve the situation added to increased market nervousness around the globe.

Equity prices came under pressure in April when Standard & Poor’s (S&P) posted a negative outlook on the US

debt. The USD fell on a 30-year low versus a trade-weighted basket. At the same time, the Gold price surged to

a new all time highs. Worries on contagion risks and an economic slowdown from the European periphery added

additional downside pressure on European markets. The current successful implementation of European rescue

measures does not overwrite fiscal austerity provisions that will keep peripheral European economic prospects in

bounds.

In August 2011, S&P passed a downgrade of US long-term credit from AAA to AA+ coupled with a negative

outlook and a significant chance for a further downgrade in the foreseeable future. Markets turned into panic mode

with a strong sell-off of world equity markets. In addition, recent economic data in the US and elsewhere suggest

that the global recovery has slowed. A rising number of investors now seem to be concerned about a prolonged

period of subdued growth.

The USD now rallied as investors seek a safe haven in US treasuries. This happened even against the Fed‘s negative

outlook on the US economy. The Fed initiated Operation Twist where shorter dated treasuries were sold against

longer dated maturities leading to lower long term interest rates, making credit more attractive and hence should

stimulate the economy. However, the negative market outlook of the Fed overwrote sentiment of the new provision

and risk appetite could not yet ignite.

There are early hopes that the European crisis could find a solution as Spanish, Italian and Greek governments

could pass austerity packages that may get their countries back on track to meet current and future budget deficit

goals. Stock market levels indicate low valuations where stocks appear to be priced for a drop in earnings similar to

the 2007/09 cycle.

Global equity markets enjoyed an impressive rally in Autumn and Winter 2011. The global stock market index

MSCI World All Country had posted substantial gains in Q3 2011. Driver of the rally was an alleviation of the

fiscal problems of European periphery states. The EU Summit held at the end of October 2011 included news

on Greek debt write-downs, a leveraged European Financial Stability Facility (EFSF) rescue fund and plans for

European bank recapitalisation. In total, the proposed measures surprised markets and hope gathered that issues

around the fiscal debt situation in Europe could be rectified at last. Markets viewed that the measures proposed

could contribute to reduce the systemic risk that built up during the market drawdown experienced before.

9


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

By year-end, credit risk spreads for Italy surged to new euro-era highs and crossed the critical bond yield of 7% that

is necessary to maintain a sustainable fiscal household. Next, the Spanish government followed with an auction of

10-year bonds at an average yield close to 7%. In the meantime, the US seems to offer a resort for the risk averse.

US macroeconomic data has advanced and employment improved together with consumer confidence as well as

consumer spending.

In 2011, the Fund had posted an absolute total return of -4.9% (in SGD on NAV-to-NAV basis with dividends

reinvested). At the same time, the global equity market as measured by the Dow Jones Global Titans Index gained

2.1% and hence leaves the Fund with a relative performance of -7.0% to the market and -6.8% vs. its customized

Benchmark 1 (all in SGD on NAV-to-NAV basis with dividends reinvested). However, the Fund could provide

income from stock dividends and option premiums. The reasons for the negative fund performance are:

i. the currency hedge losing value due to a very strong USD vs. SGD with the strongest effect in H2 2011,

ii.

iii.

the call option overlay in which many stocks have been capped in their performance in a rising market,

a strong decline of the index put option in an increasing market.

• A very strong market downturn in Q3 2011 caused the value of the long put position to rise. The put

lost most of this appreciation in Q4 2011 when the market turned by the end of September 2011.

Outlook & Investment Strategy

Europe remains a challenging environment with an recession looming for many European countries. The great

exception is Germany prospering through its strong export oriented industries. However, structural drags in Europe

and also on the US economy have become more prevalent and should soon dominate over the cyclical effect:

The 2011 US Budget Control Act installed to comply with the corresponding debt ceiling will lead to more fiscal

tightening upon 2012 and beyond. Anemic growth in the developed world should prove a drag on Emerging Market

economies where GDP growth is also forecast to decelerate this year.

Even though monetary policy has eased further in both the US and the Euro area, fiscal consolidation appears the

prevailing effect to restrain global growth to a sub-par pace in the foreseeable future. Sovereign deleveraging will

likely dominate the macro landscape for years to come.

The most imminent risk scenario is a break-up of the Eurozone involving huge costs from disorderly sovereign

defaults in the fiscally weak and uncompetitive member states. A global recession would follow - not only a

European one - due to negative spill-over effects from fiscal tightening or continued stress in the financial system.

The Benchmark for the Fund is a customised benchmark – 50% Dow Jones Global Titans Index + 50% Dividend

Yield of the Dow Jones Global Titans Index.

However, equities today are abnormally cheap relative to bonds and are a hedge against inflation risk with more

Quantitative Easing to come. History has often shown that low valuations and pessimistic assumptions can be

favorable for equity strategies. The probable deflation / inflation scenarios should limit any downside of equities

versus bonds. If investors’ worst fears fail to materialize, equities are bound to post healthy gains. High dividend

stocks would especially profit from an inflation scenario.

Stocks with a high and sustainable dividend yield remain attractive, especially to more risk-averse investors. By

systematically selling call options on stocks in the Fund, we are able to generate additional income. Especially in

sideways and bear markets, this should help to achieve superior returns to an equity-only investment.

1

The Benchmark for the Fund is a customised benchmark – 50% Dow Jones Global Titans Index + 50%

Dividend Yield of the Dow Jones Global Titans Index.

10


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Disclaimer

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, however, if you choose not to

seek professional advice, you should consider the suitability of the product for yourself. Unit value and income

therefrom may fall or rise. Past performance of the fund manager(s) and the fund is not indicative of future

performance. Investment involves risks including the possible loss of principal amount invested and risks associated

with investment in emerging and less developed markets. Investors should read the fund prospectus, available from

the local representative or any of its appointed distributors, for further details including the risk factors, before

investing.

The Fund may invest extensively in financial derivative instruments and/or structured products and be subject to

various risks (including counterparty, liquidity, credit and market risks etc.). This material has not been reviewed

by the Monetary Authority of Singapore (MAS). MAS authorization/recognition is not a recommendation or

endorsement. Issued by Allianz Global Investors Singapore Limited (3 Temasek Avenue, #07-05 Centennial Tower,

Singapore 039190, Company Registration No.199907169Z).

11


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

1 Classification of investments

Please refer to the Portfolio Statement in the Annual Financial Statements.

2 Credit rating of debt securities

Nil.

3 Top 10 holdings as at 31 December 2011

S$ %

Exxon Mobil Corp 988,203 6.28

DJ Global Titans 50 Index 165.244 Put 29/06/2012 723,380 4.60

Chevron Corp 689,429 4.38

General Electric Co 580,575 3.69

Apple Inc 525,130 3.34

Proctor & Gamble Co 518,608 3.30

Novartis-AG 506,347 3.22

Microsoft Corp 504,916 3.21

Nestle B Shares 448,856 2.85

AT & T Inc 430,890 2.74

Top 10 holdings as at 31 December 2010

S$ %

Exxon Mobil Corp 936,704 4.32

Microsoft Corp 679,085 3.13

General Electric Co 656,051 3.03

Proctor & Gamble Co 618,075 2.85

BHP Billiton PLC 562,813 2.59

Nestle B Shares 526,727 2.43

HSBC Holdings PLC 515,176 2.38

Apple Inc 512,181 2.36

Schlumberger Limited 481,355 2.22

Johnson & Johnson 475,321 2.19

4 Exposure to derivatives

S$ %

Derivative contracts at fair value (808,757) (5.14)

Net realised gains on derivative contracts 2,437,507 15.49

Net gains on outstanding derivative contracts marked to market (808,757) (5.14)

12


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

5 Global exposure

Global derivative exposure is computed using the commitment approach which is calculated as the sum of:

(a)

(b)

(c)

the absolute value of the exposure of each individual financial derivative not involved in netting or

hedging;

the absolute value of the net exposure of each individual financial derivative after netting or hedging;

and

The sum of the values of cash collateral received pursuant to:

(i)

(ii)

the reduction of exposure to counterparties of OTC financial derivatives; and

EPM techniques relating to securities lending and repurchase transactions, and that are

reinvested.

6 Collateral

Nil.

7 Securities lending or repurchase transactions

Nil.

8 Investment in other schemes

Nil.

9 Borrowings

Nil.

10 Amount of subscriptions and redemptions 1 S$

Subscriptions: 650,889

Redemptions: 4,516,253

11 Amount of related party transactions

Nil.

13


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

12 Performance of the Fund 2 Since

3M 6M 1Y 3Y Inception*

% % % % %

Change Change Change Change Change

RCM Global Twin-Focus (SGD) 0.39 -7.67 -4.86 -2.41 -15.51

Benchmark: 50% DJ Titans + 50% Div

Yield SGD 5.13 -1.12 1.98 -20.11 2.73

RCM Global Twin-Focus USD 0.47 -7.19 -4.04 -1.16 -13.78

Benchmark: 50% DJ Titans + 50% Div

Yield (USD) 5.65 -6.38 0.75 33.46 25.28

* Inception date: 3 July 2006

** Launch date: 8 May 2006

13 Expense ratio 3 %

For the period from 1 January 2011 to 31 December 2011 2.09

For the period from 1 January 2010 to 31 December 2010 2.01

14 Turnover ratio 4 %

For the period from 1 January 2011 to 31 December 2011 42.04

For the period from 1 January 2010 to 31 December 2010 57.13

15 Any other material information that will adversely impact the valuation of the Fund

Nil.

16 Soft dollar arrangements, rebates, commissions and other monetary incentives received by Fund

Manager

Nil.

1

The total amount of subscriptions and redemptions includes SRS and Cash funds.

2

The performance returns of the Fund are sourced from IDS GmbH - Analysis and Reporting Services,

Munich, calculated on a NAV-to-NAV basis with dividends reinvested at the NAV price in S$ terms

and US$ in terms of the Fund’s respective class.

3

The expense ratio is calculated in accordance to the IMAS guidelines on the disclosure of expense

ratios dated 25 May 2005. Interest expense arising on bank lending and other loans to the Fund,

brokerage and other transaction costs, foreign exchange gains.

4

The turnover ratio is calculated based on the lesser of purchases or sales expressed as a percentage

over the average NAV. The method is in accordance with the formula stated in the “Code on

Collective Investment Schemes”.

14


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

1 Classification of investments

Please refer to the Portfolio Statement in the Annual Financial Statements.

2 Credit rating of debt securities

Nil.

3 Top 10 holdings as at 4 October 2011 (date of termination)

S$ %

Cash and other net assets – –

Top 10 holdings as at 31 December 2010

S$ %

Singapore Airlines 4.15% 19/12/2011 1,288,133 9.98

SMRT Corporation Limited Series DMTN 3.27% 14/12/2011 1,280,250 9.92

Housing & Development Board MTN 1.55% 26/10/2012 1,268,254 9.82

Mapletree Treasury Services MTN 4.6% 20/08/2013 1,074,274 8.32

Land Transport Authority 4.08% 21/05/2012 1,050,753 8.14

Singapore Post Limited 3.13% 11/04/2013 1,046,844 8.11

Sunshine Assets Limited MTN 2.78% 11/02/2011 1,011,212 7.83

International Finance Corp Series GMTN 1.1% 25/09/2012 754,202 5.84

Ascendas Real Estate Investment Trust Series MTN 5% 22/07/2013 539,997 4.18

Housing & Development Board MTN 3.455% 15/07/2013 537,502 4.16

4 Exposure to derivatives

The realised and unrealised losses at the end of the year were S$698,133 and S$52,284 respectively.

5 Global exposure

Global derivative exposure is computed using the commitment approach which is calculated as the sum of:

(a)

(b)

(c)

the absolute value of the exposure of each individual financial derivative not involved in netting or

hedging;

the absolute value of the net exposure of each individual financial derivative after netting or hedging;

and

The sum of the values of cash collateral received pursuant to:

(i)

(ii)

the reduction of exposure to counterparties of OTC financial derivatives; and

EPM techniques relating to securities lending and repurchase transactions, and that are

reinvested.

15


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

6 Collateral

Nil.

7 Securities lending or repurchase transactions

Nil.

8 Investment in other schemes

Nil.

9 Borrowings

Nil.

10 Amount of subscriptions and redemptions 1 S$

Subscriptions: 716,959

Redemptions: 12,850,517

11 Amount of related party transactions

Nil.

12 Performance of the Fund 2 Since

3M 6M 1Y Inception*

%

%

%

%

Change Change Change Change

AllianzGI Choice Equity Fund NA NA NA -13.64

Benchmark^: 12-month S$ 2.02

^: 12-month Singapore Dollar Fixed Deposit Rate June 2010: 0.43% (Source: MAS)

* Inception date: 26 February 2008

Source: IDS GmbH - Analysis and Reporting Services, Munich

Performance returns are calculated in SGD terms on NAV-to-NAV basis with dividends re-invested.

Past performance is not necessarily a guide to future performance.

16


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

13 Expense ratio 3 %

For the period 1 January 2011 to 4 October 2011 (date of termination) (including

2.16

performance fees)

For the period 1 January 2011 to 4 October 2011 (date of termination) (excluding

2.16

performance fees)

For the period 1 January 2010 to 31 December 2010 (including performance fees) 1.91

For the period 1 January 2010 to 31 December 2010 (excluding performance fees) 1.91

14 Turnover ratio 4 %

For the period 1 January 2011 to 4 October 2011 (date of termination) 26.79

For the period from 1 January 2010 to 31 December 2010 139.18

15 Any other material information that will adversely impact the valuation of the Fund

Nil.

16 Soft dollar arrangements, rebates, commissions and other monetary incentives received by Fund

Manager

Nil.

1

The total amount of subscriptions and redemptions includes SRS and Cash funds.

2

The performance returns of the Fund are sourced from IDS GmbH - Analysia and Reporting Services,

Munich, calculated on a NAV-to-NAV basis with dividends reinvested at the NAV price in S$ terms.

3

The expense ratio is calculated in accordance to the IMAS guidelines on the disclosure of expense

ratios dated 25 May 2005. Interest expense arising on bank lending and other loans to the Fund,

brokerage and other transaction costs, foreign exchange gain.

4

The turnover ratio is calculated based on the lesser of purchases or sales expressed as a percentage

over the average NAV. The method is in accordance with the formula stated in the “Code on

Collective Investment Schemes”.

17


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

1 Classification of investments

Please refer to the Portfolio Statement in the Annual Financial Statements.

2 Credit rating of debt securities

Nil.

3 Top 10 holdings as at 1 August 2011 (date of termination)

S$ %

Cash and other net assets – –

Top 10 holdings as at 31 December 2010

S$ %

PIMCO Emerging Markets Bond Fund Class E* 1,585,653 45.75

PIMCO Total Return Bond Fund Class E** 1,460,190 42.13

PIMCO Bond Fund Basket Call 01/11/2012*** 255,370 7.37

Cash and other net assets 164,613 4.75

Total net assets value 3,465,826 100

4 Exposure to derivatives

Nil.

5 Global exposure

Nil.

6 Collateral

Nil.

7 Securities lending or repurchase transactions

Nil.

8 Investment in other schemes

Nil.

9 Borrowings

Nil.

18


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

10 Amount of subscriptions and redemptions 1 S$

Subscriptions: –

Redemptions: 3,456,439

11 Amount of related party transactions

Nil.

12 Performance of the Fund 2 Since

3M 6M 1Y 3Y Inception*

% % % % %

Change Change Change Change Change

AllianzGI Enhanced Income & Growth

Fund – – – – 7

Benchmark: 2 times of the

12-month S$ Fixed Deposit Rates^ – – – – 4.08

^: 12-month Singapore Dollar Fixed Deposit Rate as at 1 August 2011 (date of termination): ___%

(Source: MAS)

* Inception date: 21 January 2008

Source: IDS GmbH - Analysis and Reporting Services, Munich

Performance returns are calculated in SGD terms on NAV-to-NAV basis with dividends re-invested.

Past performance is not necessarily a guide to future performance.

13 Expense ratio 3 %

For the period 1 January 2011 to 1 August 2011 (date of termination) 1.24

For the period from 1 January 2010 to 31 December 2010 0.64

14 Turnover ratio 4 %

For the period 1 January 2011 to 1 August 2011 (date of termination) 5.29

For the period from 1 January 2010 to 31 December 2010 95.93

19


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

15 Any other material information that will adversely impact the valuation of the Fund

Nil.

16 Soft dollar arrangements, rebates, commissions and other monetary incentives received by Fund

Manager

Nil.

1

The total amount of subscriptions and redemptions includes SRS and Cash funds.

2

The performance returns of the Fund are sourced from IDS GmbH - Analysis and Reporting Services,

Munich, calculated on a NAV-to-NAV basis with dividends reinvested at the NAV price in S$ term.

3

The expense ratio is the sum of the feeder fund’s expense ratio and the underlying funds’ unaudited

expense ratios. The unaudited expense ratios of the underlying funds, Ireland registered funds, are

provided by Allianz Global Investors Ireland Ltd (“AllianzGI Ireland”). There is no requirement for

the expense ratios of these Ireland registered funds to be published or audited.

Interest expense arising on bank lending and other loans to the Fund, brokerage and other transaction

costs, foreign exchange gains/losses, tax deducted at source or arising out of income received, front

or back end loads arising from the purchase and sales of other schemes and distributions paid to unitholders

are not included in the expense ratios.

The Fund does not pay any performance fees at 1 August 2011 (date of termination) and 31 December

2010.

4

The turnover ratio is calculated based on the lesser of purchases or sales expressed as a percentage

over the average NAV. The method is in accordance with the formula stated in the “Code on

Collective Investment Schemes”.

20


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Manager’s Report

Annual Report to Unitholders (1 January 2011 to 31 December 2011)

Investment objective

The investment objective of AllianzGI US High Yield Fund (the “Fund”) is to achieve long term capital

appreciation and income by investing primarily in US corporate bonds rated below investment grade.

Market Overview

The high yield market ended a volatile year in solidly positive return territory. The Bank of America Merrill Lynch

Master II Index returned 4.38% for 2011. By way of comparison, the high yield market outperformed the S&P 500’s

by 2.11% for the year 1 .

Despite the significant macro events, the high yield market remained resilient throughout the H1 2011. Economic

headwinds, geopolitical events, the devastating earthquake in Japan and the European sovereign debt crisis, all

weighed on investor sentiment. However, there was no significant impact on the market as a whole as themes of

corporate profitability, liquidity, balance sheet integrity and an improving economy returned quickly to the forefront

of investor sentiment.

In Q3 2011, however, the high yield market’s resilience was lost. For the high yield market as a whole, every

macro factor seemed to be inexorably important, and broadly discouraged any buying. Bonds were readily for sale

regardless of solid quarterly earnings and clean balance sheets for the majority of issuers. The lack of liquidity from

the major banks and brokers exacerbated the decline.

The high yield market rebounded nicely into year-end after a rough third quarter. Fundamentally, from an issuer

perspective, little had changed. Corporate balance sheets, earnings, access to capital and relative value all pointed

to better returns in Q4 just as they did in Q3. What is the difference? Clearly the mood swings of the equity market

have a significant impact on day-to-day high yield prices. In Q4 2011, the mood was simply better, albeit still

inconsistent day-to-day and month-to-month. It is feasible the US economy has shown more consistency in recent

months. Economic statistics have been better than expected, consumer spending has trended positively and even

housing has shown signs of life. For high yield investors, these are important factors, but ultimately should not

warrant the day-to-day price fluctuations. Investors in high yield should be focused on the creditworthiness of the

issuers. Ultimately, in the quarter, prices correctly reflected the lack of risk represented among high yield issuers.

Industry level performance was mostly higher for the period. Leading industries for the quarter included food &

drug retail, cable/satellite TV and leisure. Laggard industries included transportation ex air/rail, publishing/printing

and banking.

Approximately USD245.6 billion in high yield new issuance priced for the year – 2011 was the second most active

year on record for the high yield market. Refinancing activity still captured more than half of all new issuance

proceeds, but acquisition financing / leveraged buyout was a growing share. Mutual fund flows equalled USD13.5

billion and surpassed the prior year’s inflow by USD1 billion.

For the year, the ratios of upgrades to downgrades were positive with 358 upgrades and 285 downgrades and

defaults remained low. The trailing twelve-month (LTM) default rate ended the year at approximately 2.31% on

an issuer-weighted basis. On a dollar-weighted basis, the LTM default rate was 1.76%. These default numbers

continued to be well below the 3-4% average for the past 25 years.

1

Source: Morningstar, January 2012

21


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Portfolio Overview

The attribution for the year can be viewed from two perspectives. Firstly, our consistent avoidance of the lowest

quality and distressed issuers clearly helped. Extreme positive and negative one-day moves occurred throughout

the period. The portfolio holdings both participated in the up markets and protected in the down markets. In this

environment, an all-weather design aided relative performance. The cornerstone of such a design is consistently

identifying issuers that met or exceeded fundamental expectations. Also, limiting or eliminating exposure to

issues that did not meet or exceed expectations. Secondly, the tightest spread issues outperformed with the tenyear

Treasury bond rally. The portfolio was underweight these issues, as is usually the case, and that did not help

during a significant Treasury rally. In the first part of the reporting period however, underweighting the crossover

investment grade issues helped, and longer term, the portfolio has benefited from that positioning.

Industry allocations that helped relative performance during the year included banking, transportation ex air/rail

and telecommunications – wireline. Generally, the telecom industry represented operating certainty in a period of

great uncertainty. Not only did the issuers held post healthy quarter earnings, but they also conveyed constructive

outlooks for the balance of 2011. The portfolio was underweight banking, which performed poorly as a group.

Security-specific contribution within the chemicals and paper industries hurt during the period. Chemicals issuers

were on investors’ radars as highly cyclical. Therefore, macro factors played a much greater role in the negative

performance than the company-specific information. An underweight in the generally more narrow spread utilities

also hurt relative performance.

Holdings demonstrating longer-term negative fundamental change were reduced or sold. Sells also included the

standard calls, tenders and trims due to price.

Outlook

It is easy to have conviction in the positive outlook for high yield bonds, based on the clear trends in credit

statistics. Leverage ratios and interest coverage ratios are near, or at better, levels seen in the past 20 years.

Cash levels of investment grade issuers remain high, and acquisition activity is ongoing. Economic statistics

have generally been improving in the US Upgrades exceeded downgrades in 2011, providing third party

acknowledgement of balance sheet strength. Significant refinancing activity for the past three years has essentially

eliminated amortization risk through 2013. The Federal Reserve and policymakers are in an accommodative

stance and have communicated their commitment to remain that way. All of these factors combine to create an

environment where defaults are low, and will likely stay low, for an extended period.

Spreads ended the month at approximately 723 basis points over comparable Treasuries. The historical average

spread is well inside of this level, specifically at this point in the credit cycle. This stage of the market cycle from

a statistical perspective is best compared to the mid-1990s and mid-2000s where market environments which

exhibited economic stability, low defaults and ample liquidity. The high yield market has priced in a default rate

forecast that is far higher than the current 1% to 2%. The yield generated by high yield issues relative to the risk

associated with the asset class is clearly attractive.

Treasury rate moves have surprised investors the most in 2011. The weakness in the equity markets, federal

intervention and global fears drove positive returns for Treasuries again in the quarter. If a rising rate forecast is

included in an asset allocation strategy decision, an allocation to high yield is an obvious choice. Among fixed income

alternatives, high yield bonds will be a contributor from both a diversification and relative performance perspective.

Nearly all strategists agree that the outlook for credit is constructive with minimal defaults for both 2012 and 2013.

The combination of all the fundamental factors and the current excessive spread relative to risk leads to a forecast

for 2012 of above coupon total return, 10% or greater.

The Fund continues to build your portfolio one company at a time, by identifying companies which are

opportunistically capitalizing on change. Fundamentals are recognized as the long-term driver of total return in a

high yield. Since fundamentals can only be discovered and monitored through rigorous credit analysis, which is the

cornerstone of the Fund Manager’s approach, the Fund will continue to apply the successful philosophy and process

to managing change and information.

22


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Disclaimer

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, however, if you choose not to

seek professional advice, you should consider the suitability of the product for yourself. Unit value and income

therefrom may fall or rise. Past performance of the fund manager(s) and the fund is not indicative of future

performance. Investment involves risks including the possible loss of principal amount invested and risks associated

with investment in emerging and less developed markets. Investors should read the fund prospectus, available from

the local representative or any of its appointed distributors, for further details including the risk factors, before

investing.

The Fund may invest extensively in financial derivative instruments and/or structured products and be subject to

various risks (including counterparty, liquidity, credit and market risks etc.). This material has not been reviewed

by the Monetary Authority of Singapore (MAS). MAS authorization/recognition is not a recommendation or

endorsement. Issued by Allianz Global Investors Singapore Limited (3 Temasek Avenue, #07-05 Centennial Tower,

Singapore 039190, Company Registration No.199907169Z).

23


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

1 Classification of investments

Please refer to the Portfolio Statement in the Annual Financial Statements.

2 Credit rating of debt securities

Nil.

3 Top 10 holdings as at 31 December 2011

S$ %

15,507 shares in Allianz US High Yield 22,838,004 99.49

Cash and other net assets 118,017 0.51

Total net assets value 22,956,021 100

Top 10 holdings as at 31 December 2010

S$ %

6,590 shares in Allianz Global Investors Fund - Allianz US High Yield 9,074,264 89.19

Cash and other net assets 1,099,652 10.81

Total net assets value 10,173,916 100.00

4 Exposure to derivatives

S$ %

Derivative contracts at fair value (137,200) (0.60)

Net realised gains on derivative contracts (300,344) (1.31)

Net gains on outstanding derivative contracts marked to market (137,200) (0.60)

5 Global exposure

Global derivative exposure is computed using the commitment approach which is calculated as the sum of:

(a)

(b)

(c)

Global derivative exposure is computed using the commitment approach which is calculated as the

sum of arrangements;

Global derivative exposure is computed using the commitment approach which is calculated as the

sum of arrangements; and

The sum of the values of cash collateral received pursuant to:

(iii)

(iv)

the reduction of exposure to counterparties of OTC financial derivatives; and

EPM techniques relating to securities lending and repurchase transactions, and that are

reinvested.

24


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

6 Collateral

Nil.

7 Securities lending or repurchase transactions

Nil.

8 Investment in other schemes

S$ %

Allianz Global Investors Fund - Allianz US High Yield 22,838,004 99.49

9 Borrowings

Nil.

10 Amount of subscriptions and redemptions 1 S$

Subscriptions: 26,314,838

Redemptions: 12,606,813

11 Amount of related party transactions

Nil.

12 Performance of the Fund 2 Since

3M 6M 1Y Inception*

% % % %

Change Change Change Change

Allianz Global Investors Fund - Allianz US High

Yield 4.31 -0.41 2.61 7.95

Benchmark: BofA Merrill Lynch US High Yield

Master II Index – SGD Hedged 5.9 -1.12 3.68 9.98

* The benchmark index during the launch of the Fund was Bank of America Merrill Lynch High Yield,

Master II Index – SGD Hedged. Inception date of the Fund: 02/08/2010.

Source: IDS GmbH - Analysis and Reporting Services, Munich.

Performance returns are calculated in SGD terns on NAV-to-NAV basis with dividends reinvested.

Past performance is not necessarily a guide to future performance.

25


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

13 Expense ratio 3 %

For the period 1 January 2011 to 31 December 2011 1.87

For the period from 30 April 2010 (date of constitution) to 31 December 2010 1.63

14 Turnover ratio 4 %

For the period 1 January 2011 to 31 December 2011 69.04

For the period from 30 April 2010 (date of constitution) to 31 December 2010 24.50

15 Any other material information that will adversely impact the valuation of the Fund

Nil.

16 Soft dollar arrangements, rebates, commissions and other monetary incentives received by Fund

Manager

Nil.

1 The total amount of subscriptions and redemptions includes CPF, SRS and Cash funds.

2 The performance of the fund are sourced from IDS GmbH - Analysis and Reporting Services,

Munich, calculated on a NAV-to-NAV basis with dividends reinvested at the NAV price in S$ term.

3 Interest expense arising on bank lending and other loans to the Fund, brokerage and other transaction

costs, foreign exchange gains/losses, tax deducted at source or arising out of income received, front

or back end loads arising from the purchase and sales of other schemes and distributions paid to

unitholders are not included in the expense ratios.

The Fund does not pay any performance fees in 2011.

4 The turnover ratio is calculated based on the lesser of purchases or sales expressed as a percentage

over the average NAV. The method is in accordance with the formula stated in the “Code on

Collective Investment Schemes”.

26


Key Information of the underlying fund: Allianz Global Investors Fund – Allianz US High Yield

1 Top 10 holdings as at 31 December 2011

Title S$ %

Cincinnati Bell Corp 1,867,500 1.55

Wireco Worldgroup Inc 2,022,500 1.68

NCL Corp Ltd 2,100,000 1.75

Reynolds Grp Iss/Reynold 1,945,000 1.62

Neiman Marcus Group Inc 2,087,500 1.74

Intelsat Jackson Hlgd 2,040,000 1.70

Metropcs Wireless Inc 1,875,000 1.56

American Axle & Mfg Inc 1,985,000 1.65

Avis Budget Car Rental 2,015,000 1.68

Standard Pacific Corp 1,684,375 1.40

Top 10 holdings as at 31 December 2010

Title S$ %

Kemet Corp 552,500 1.68

Interactive Data Corp 550,000 1.67

Aircastle Ltd 548,750 1.67

Itc Deltacom Inc 547,500 1.66

West Corp 545,000 1.66

National Money Mart Co 545,000 1.66

Navistar Intl Corp 541,250 1.64

Libbey Glass Inc 540,000 1.64

Hca Inc 536,250 1.63

Revlon Consumer Prods Corp 533,750 1.62

2 Expense ratio

For the period 1 January 2011 to 31 December 2011 0.79

For the period 1 January 2010 to 31 December 2010 0.79

3 Turnover ratio

For the period 1 January 2011 to 31 December 2011 166.31

For the period 1 January 2010 to 31 December 2010 335.08

%

%

27


Financial Statements

For the financial year ended 31 December 2011

28


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Report of the Trustee

The Trustee is under a duty to take into custody and hold the assets of Allianz Global Investors Premier Funds –

RCM Global High Payout Fund (the “Fund”) in trust for the unitholders. In accordance with the Securities and

Futures Act (Chapter 289), its subsidiary legislation and the Code on Collective Investment Schemes (collectively

referred to as the “laws and regulations”), the Trustee shall monitor the activities of the Manager for compliance

with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed and Supplemental

Deeds in each annual accounting period and report thereon to unitholders in an annual report which shall contain

the matters prescribed by the laws and regulations as well as the recommendations of Statement of Recommended

Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public

Accountants of Singapore and the Trust Deed and Supplemental Deeds.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the period

covered by these financial statements, set out on pages 33 to 64, comprising the Statement of Total Return, Balance

Sheet, Portfolio Statement and Notes to the Financial Statements, in accordance with the limitations imposed on

the investment and borrowing powers set out in the Trust Deed and Supplemental Deeds, laws and regulations and

otherwise in accordance with the provisions of the Trust Deeds and Supplemental Deeds.

For and on behalf of the Trustee

HSBC Institutional Trust Services (Singapore) Limited'

────────────────────

Authorised signatory

Singapore

[dateofsigning]

29


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Statement by the Managers

In the opinion of the directors of Allianz Global Investors Singapore Limited, the accompanying financial

statements set out on pages 33 to 64, comprising the Statement of Total Return, Balance Sheet, Portfolio Statement

and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial

position of the Fund as at 31 December 2011, and the total return for the year then ended, in accordance with

the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit

Trusts” issued by the Institute of Certified Public Accountants of Singapore. At the date of this statement, there

are reasonable grounds to believe that the Fund will be able to meet its financial obligations as and when they

materialise.

For and on behalf of Directors of

Allianz Global Investors Singapore Limited

────────────────────

Director

Singapore

[dateofsigning]

30


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Independent Auditors’ Report to the Unitholders of

Allianz Global Investors Premier Funds – RCM Global High Payout Fund

(Constituted under a Trust Deed in the Republic of Singapore)

We have audited the financial statements of Allianz Global Investors Premier Funds – RCM Global High Payout

Fund (the “Fund”), which comprise the Statement of Total Return for the year ended 31 December 2011, the

Balance Sheet and Portfolio Statement as at 31 December 2011, and a summary of significant accounting policies

and other explanatory information, as set out on pages 33 to 64.

Manager’s responsibility for the financial statements

The Manager of the Fund is responsible for the preparation and fair presentation of these financial statements in

accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework

for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore, and for such internal control as

the Manager of the Fund determines is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements

are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of

material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the Fund’s internal controls. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of

the Fund, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the

Fund as at 31 December 2011 and the total return of the Fund for the year then ended, in accordance with the

recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts”

issued by the Institute of Certified Public Accountants of Singapore.

KPMG LLP

Public Accountants and

Certified Public Accountants

Singapore

[dateofsigning]

31


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Statement of Total Return

For the financial year ended 31 December 2011

Note 2011 2010

US$

US$

Income

Dividends 7,541,190 8,162,873

Interest 42,220 35,476

Other 1,381 –

7,584,791 8,198,349

Less: Expenses

Audit fees 16,145 12,470

Custody fees 227,893 121,502

Management fees 3,216,859 3,654,550

Other expenses 87,791 (53,904)

Registrar fees 29,151 28,141

Trustee fees 97,480 110,743

Valuation fees 124,639 139,946

3,799,958 4,013,448

Net income 3,784,833 4,184,901

Net gains/(losses) on investments

Net realised losses on investments (5,251,066) (4,248,727)

Net change in fair value of investments (5,207,521) 24,545,752

Net foreign exchange losses (276,591) (769,840)

Net gains/(losses) on investments (10,735,178) 19,527,185

Total return/(deficit) for the year before income tax (6,950,345) 23,712,086

Less: Income tax 3 (1,340,178) (1,365,463)

Total return/(deficit) for the year before distributions (8,290,523) 22,346,623

Less: Distributions 4 (17,379,690) (17,863,634)

Total return/(deficit) for the year (25,670,213) 4,482,989

The accompanying notes form an integral part of these financial statements.

32


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Balance Sheet

As at 31 December 2011

Note 2011 2010

US$

US$

Assets

Portfolio of investments 156,217,202 202,041,965

Receivables 5 522,915 618,762

Due from brokers – 588,020

Cash and bank balances 6 9,230,300 7,807,202

Margin accounts with brokers 7 6,783,918 9,247,412

Total assets 172,754,335 220,303,361

Liabilities

Payables 8 608,553 728,993

Net assets attributable to unitholders 9 172,145,782 219,574,368

Total liabilities 172,754,335 220,303,361

The accompanying notes form an integral part of these financial statements.

33


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted equities

Australia

Australia and NZ Banking Group Ltd 50,000 1,052,368 0.61

National Australia Bank Ltd 51,000 1,220,859 0.71

2,273,227 1.32

Bermuda

Seadrill Ltd 57,120 1,910,397 1.11

1,910,397 1.11

Brazil

Itau Unibanco Holding ADR 65,000 1,205,100 0.70

Vale ADR 35,000 750,750 0.44

1,955,850 1.14

Canada

Bank of Montreal 10,000 548,294 0.32

BCE Inc 42,000 1,750,533 1.02

National Bank of Canada 18,000 1,274,009 0.74

Royal Bank of Canada 20,000 1,019,789 0.59

TMX Group Inc 16,000 654,299 0.38

5,246,924 3.05

China

Bank of China Ltd H Shares 1,766,000 650,318 0.38

China Construction Bank H Shares 1,000,000 695,285 0.40

Petrochina Co Ltd H Shares 1,100,000 1,369,583 0.80

2,715,186 1.58

Finland

Sampo OYJ 50,000 1,239,733 0.72

1,239,733 0.72

The accompanying notes form an integral part of these financial statements.

34


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted equities (continued)

France

BNP Paribas 15,000 590,983 0.34

Christian Dior 12,000 1,427,082 0.83

France Telecom 100,000 1,574,656 0.92

PPR 10,000 1,436,403 0.83

Sanofi-Aventis 25,000 1,841,426 1.07

Schneider Electric 25,000 1,319,732 0.77

Total SA 35,000 1,791,512 1.04

Valeo 6,000 239,197 0.14

Vivendi SA 85,000 1,866,447 1.08

12,087,438 7.02

Germany

BASF SE 13,000 906,238 0.53

Daimler 35,000 1,540,482 0.89

Deutsche Lufthansa 90,000 1,069,027 0.62

Deutsche Post Reg 80,000 1,237,397 0.72

Muenchener Rueckver AG - Reg 13,000 1,595,621 0.93

Siemens 15,000 1,436,857 0.83

Volkswagen Preference 11,000 1,646,444 0.96

9,432,066 5.48

Great Britain

Astrazeneca PLC 50,000 2,306,673 1.34

Aviva PLC 200,000 933,082 0.54

BAE Systems PLC 250,000 1,105,354 0.64

BHP Billiton PLC 50,000 1,454,249 0.84

HSBC Holdings PLC 175,000 1,335,496 0.78

Imperial Tobacco Group PLC 70,000 2,648,963 1.54

National Grid PLC 80,000 775,807 0.45

Old Mutual PLC 400,000 842,322 0.49

Vodafone Group PLC 778,000 2,163,062 1.26

13,565,008 7.88

The accompanying notes form an integral part of these financial statements.

35


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted equities (continued)

Hong Kong

China Mobile Ltd 160,000 1,562,589 0.91

CLP Holdings Ltd 225,000 1,910,585 1.11

Cnooc Ltd 700,000 1,223,959 0.71

4,697,133 2.73

Italy

Enel Spa 275,000 1,106,673 0.64

Ente Nazionale Idrocarburi Spa 82,000 1,687,205 0.98

Snam Rete Gas 375,000 1,641,511 0.96

4,435,389 2.58

Japan

Aeon Co Ltd 40,000 548,479 0.32

Asahi Kasei Corp 20,000 120,094 0.07

Canon Inc 19,400 857,291 0.50

Eisai Co Ltd 20,000 827,918 0.48

Itochu Corp 35,000 355,732 0.21

Mitsui & Co Ltd 15,000 232,974 0.13

Nomura Research Institute Ltd 5,000 112,685 0.07

Seven & I Holdings Ltd 20,000 556,537 0.32

Sumitomo Corp 20,000 270,081 0.16

3,881,791 2.26

Luxembourg

Allianz Global Investors Selections RCM India 600 456,096 0.26

Allianz RCM IIS Best Styles Emerging Markets - IT 700 837,181 0.49

1,293,277 0.75

The accompanying notes form an integral part of these financial statements.

36


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted equities (continued)

Netherlands

Boskalis Westminster NV CVA 35,000 1,289,679 0.75

Royal Dutch Shell PLC 46,800 1,710,209 0.99

Unilever NV CVA 61,000 2,102,419 1.22

5,102,307 2.96

Norway

DNB Nor ASA 70,000 684,993 0.40

Statoihydro ASA 86,000 2,209,100 1.28

2,894,093 1.68

Poland

KGHM Polska Miedz 15,000 480,496 0.28

Tauron Polska Energia 350,000 539,175 0.31

1,019,671 0.59

Russian Federation

Gazprom Oao Spon ADR 150,000 1,599,000 0.93

Lukoil ADR 13,000 691,600 0.40

2,290,600 1.33

Singapore

Sembcorp Industries 520,000 1,624,185 0.94

1,624,185 0.94

South Africa

Exxaro Resources Ltd 60,000 1,244,457 0.72

Foschini Ltd 120,000 1,556,519 0.90

Kumba Iron Ore Ltd 6,000 371,591 0.22

3,172,567 1.84

The accompanying notes form an integral part of these financial statements.

37


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted equities (continued)

South Korea

Hyundai Heavy Industries Co Ltd 2,000 445,313 0.26

Posco 1,300 428,819 0.25

874,132 0.51

Spain

Banco Popular Espanol 100,000 761,105 0.44

Iberdrola SA 240,000 1,506,062 0.87

Indra Sistemas 40,000 510,796 0.30

Repsol YPF 55,000 1,692,138 0.98

Telefonica SA 80,000 1,389,540 0.81

5,859,641 3.40

Sweden

Svenska Cellulosa AB B Shares 80,000 1,190,320 0.69

Volvo AB B Shares 40,000 438,784 0.26

1,629,104 0.95

Switzerland

Nestle B Shares 41,000 2,365,469 1.37

Novartis 30,000 1,722,810 1.00

4,088,279 2.37

Thailand

Bangkok Bank PCL 100,000 483,360 0.28

483,360 0.28

Turkey

Turk Telekomunikasyon 150,000 549,614 0.32

Turkiye Halk Bankasi 130,000 681,457 0.40

1,231,071 0.72

The accompanying notes form an integral part of these financial statements.

38


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted equities (continued)

United States of America

Abbott Laboratories Co 30,000 1,685,100 0.98

Accenture PLC Co 35,000 1,863,050 1.08

AT & T Inc Com 75,000 2,265,750 1.32

Automatic Data Processing Co 20,000 1,079,600 0.63

Blackrock Inc Com 5,000 891,200 0.52

Century Link Inc Co 40,000 1,487,600 0.86

Chevron Co 15,000 1,595,100 0.93

ConocoPhillips 25,000 1,822,000 1.06

Consolidated Edison Inc 25,000 1,550,250 0.90

Du Pont (E.I.) De Nemours Co 25,000 1,143,750 0.66

Eaton Corp 25,000 1,088,250 0.63

Eli Lilly & Co 25,000 1,038,750 0.60

Exxon Mobil Corp 27,000 2,286,360 1.33

Family Dollar Stores Inc Co 18,000 1,037,880 0.60

Foot Locker Inc Com 40,000 953,600 0.55

Freeport McMoran Copper & Gold Inc B Shares 10,000 367,900 0.21

General Electric Co 110,000 1,970,100 1.14

General Mills Inc 10,000 404,100 0.24

Genuine Parts Co 30,000 1,835,100 1.07

Harris Coporation Com 10,000 360,400 0.21

Hewlett Packard Co 45,000 1,159,200 0.67

Honeywell International Inc Com 3,000 162,960 0.09

Intel Corp 90,000 2,182,500 1.27

International Business Machines Corporation 12,000 2,206,560 1.28

Johnson & Johnson 27,000 1,769,850 1.03

JP Morgan Chase & Co Com 35,000 1,163,400 0.68

Balance carried forward 35,370,310 20.54

The accompanying notes form an integral part of these financial statements.

39


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted equities (continued)

United States of America (continued)

Balance brought forward 35,370,310 20.54

Kia-Tencor Corp Com 15,000 723,600 0.42

Kimberly-Clark Corporation 28,000 2,058,840 1.20

Kraft Foods Inc A Shares 46,000 1,718,100 1.00

M&T Bank Corp Com 12,000 916,080 0.53

Merck & Co Inc 50,000 1,884,500 1.09

Microchip Technology Inc Co 15,200 556,776 0.32

Microsoft Corp 60,000 1,557,600 0.91

Norfolk Southern Corp Com 20,000 1,457,200 0.85

Northrop Grumman Corp 12,200 713,456 0.41

Pfizer Inc 65,000 1,406,600 0.82

Philip Morris International Inc 13,700 1,074,902 0.62

Portland General Electric Company Com 60,000 1,518,000 0.88

PPG Industries Inc Com 10,000 834,900 0.49

Procter & Gamble Co 30,000 1,999,800 1.16

Prudential Financial Inc Com 15,000 751,800 0.44

TE Connectivity Ltd 44,000 1,355,200 0.79

Texas Instruments Inc 40,000 1,164,000 0.68

Time Warner Inc 50,000 1,806,500 1.05

TJX Co Inc 20,000 1,291,200 0.75

Union Pacific Corp 22,000 2,330,680 1.35

US Bancorp Com 30,000 811,500 0.47

Validus Holdings Ltd 31,700 999,184 0.58

Verizon Communications Inc Com 40,000 1,603,600 0.93

Wal-Mart Stores Inc Com 10,000 597,300 0.35

Waste Management Inc 30,000 981,000 0.57

67,482,628 39.20

The accompanying notes form an integral part of these financial statements.

40


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options

Written call options

Abbott Laboratories 55 Call 18/02/2012 300 (55,200) (0.03)

Accenture PLC CL A 55 Call 18/02/2012 300 (40,500) (0.02)

Accenture PLC CL A 62.5 Call 19/05/2012 50 (3,750) *

AT & T Inc 30 Call 21/07/2012 750 (91,500) (0.05)

Australia and NZ Banking Group 21.5 Call 28/06/2012 500 (52,029) (0.03)

Automatic Data Processing 48 Call 18/02/2012 150 (97,500) (0.06)

Automatic Data Processing 52.5 Call 18/02/2012 50 (13,750) (0.01)

BAE Systems PLC 2.8 Call 16/03/2012 100 (25,643) (0.02)

Bank of China Ltd H Shares 3.1 Call 27/09/2012 1,766 (45,477) (0.03)

Bank of Montreal 62 Call 21/01/2012 100 (393) *

BASF 48 Call 16/03/2012 30 (28,040) (0.02)

BASF 50 Call 16/03/2012 50 (36,608) (0.02)

BASF 58 Call 15/06/2012 50 (13,955) (0.01)

BCE Inc 42 Call 19/05/2012 420 (65,996) (0.04)

Blackrock Inc 160 Call 21/04/2012 30 (79,800) (0.05)

Blackrock Inc 180 Call 21/04/2012 20 (26,600) (0.02)

BNP Paribas 30 Call 16/03/2012 100 (49,849) (0.03)

BNP Paribas 34 Call 15/03/2012 50 (19,148) (0.01)

Boskalis Westminster 24 Call 16/03/2012 350 (227,176) (0.13)

Balance carried forward (972,914) (0.58)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

41


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (972,914) (0.58)

Centurylink Inc 34 Call 21/01/2012 100 (34,000) (0.02)

Centurylink Inc 37 Call 21/04/2012 300 (46,500) (0.03)

Chevron Corp 100 Call 17/03/2012 150 (134,250) (0.08)

China Construction Bank H Shares 6 Call 27/09/2012 1,000 (32,189) (0.02)

China Mobile Ltd 75 Call 29/03/2012 120 (26,112) (0.02)

CLP Holdings Ltd 72.5 Call 29/03/2012 260 (4,352) *

Cnooc Ltd 14 Call 29/03/2012 300 (33,992) (0.02)

ConocoPhillips 67.5 Call 21/01/2012 40 (22,800) (0.01)

ConocoPhillips 72.5 Call 18/02/2012 60 (16,020) (0.01)

ConocoPhillips 80 Call 21/01/2012 150 (600) *

Consolidated Edison Inc 55 Call 21/01/2012 80 (56,800) (0.03)

Consolidated Edison Inc 60 Call 18/02/2012 170 (45,900) (0.03)

Deutsche Lufthansa-Reg 12 Call 16/03/2012 400 (2,596) *

Deutsche Lufthansa-Reg 10 Call 16/03/2012 100 (4,414) *

Deutsche Lufthansa-Reg 11 Call 16/03/2012 300 (5,063) *

Deutsche Post (Reg) 10 Call 16/03/2012 600 (162,009) (0.09)

Deutsche Post (Reg) 12.5 Call 15/06/2012 200 (13,501) (0.01)

DNB ASA 60 Call 20/09/2012 300 (32,675) (0.02)

DNB ASA 70 Call 15/03/2012 400 (6,032) *

Du Pont (E.I) 45 Call 21/01/2012 250 (39,750) (0.02)

Balance carried forward (1,692,469) (0.99)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

42


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (1,692,469) (0.99)

Eaton Corporation 40 Call 21/01/2012 50 (19,500) (0.01)

Eaton Corporation 45 Call 21/04/2012 200 (52,000) (0.03)

Eli Lilly & Co 38 Call 21/01/2012 50 (18,500) (0.01)

Eli Lilly & Co 39 Call 21/04/2012 200 (68,000) (0.04)

Enel Spa 3.6 Call 14/06/2012 250 (15,497) (0.01)

Eni Spa 14 Call 15/03/2012 50 (74,287) (0.04)

Eni Spa 13 Call 15/03/2012 50 (104,079) (0.06)

Eni Spa 18 Call 14/06/2012 64 (14,498) (0.01)

Exxon Mobil Corp 72.5 Call 21/01/2012 20 (24,700) (0.01)

Exxon Mobil Corp 75 Call 21/01/2012 150 (148,500) (0.09)

Exxon Mobil Corp 77.5 Call 21/01/2012 100 (74,500) (0.04)

Family Dollar Stores 57.5 Call 21/04/2012 101 (39,390) (0.02)

Family Dollar Stores 60 Call 21/01/2012 79 (7,110) *

Foot Locker Inc 28 Call 19/05/2012 400 (36,000) (0.02)

France Telecom SA 14 Call 15/06/2012 200 (5,452) *

France Telecom SA 13 Call 16/03/2012 600 (19,472) (0.01)

Freeport-McMoran Copper 36 Call 18/02/2012 100 (28,100) (0.02)

Gazprom Oao-Spon ADR 11 Call 16/03/2012 200 (16,000) (0.01)

General Electric Co 18 Call 16/06/2012 900 (117,000) (0.07)

General Electric Co 40 Call 21/04/2012 100 (14,800) (0.01)

Genuine Parts Co 60 Call 18/02/2012 244 (69,540) (0.04)

Genuine Parts Co 65 Call 19/05/2012 56 (12,040) (0.01)

Balance carried forward (2,671,434) (1.55)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

43


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (2,671,434) (1.55)

Harris Corp 40 Call 18/02/2012 100 (4,500) *

Hewlett-Packard Co 28 Call 19/05/2012 400 (57,200) (0.03)

Honeywell International Inc 60 Call 16/06/2012 30 (5,640) *

HSBC Holdings PLC 6 Call 21/09/2012 125 (18,941) (0.01)

Imperial Tobacco Group PLC 24 Call 15/06/2012 20 (40,717) (0.02)

Intel Corp 24 Call 21/01/2012 900 (70,200) (0.04)

IntI Business Machines Corp 190 Call 21/01/2012 120 (20,400) (0.01)

Itau Unibaco Holding – Pref ADR 19 Call 21/01/2012 650 (29,250) (0.02)

Johnson & Johnson 70 Call 21/01/2012 200 (800) *

Johnson & Johnson 72.5 Call 21/01/2012 70 (140) *

JP Morgan Chase & Co 33 Call 16/06/2012 250 (86,250) (0.05)

JP Morgan Chase & Co 33 Call 17/03/2012 100 (23,900) (0.01)

Kimberly-Clark Corp 70 Call 21/01/2012 230 (87,400) (0.05)

Kimberly-Clark Corp 72.5 Call 21/01/2012 50 (8,750) (0.01)

KLA-Tencor Corporation 37 Call 17/03/2012 30 (35,400) (0.02)

KLA-Tencor Corporation 40 Call 17/03/2012 120 (109,200) (0.06)

Kraft Foods Inc – CL A 38 Call 16/06/2012 460 (66,240) (0.04)

Lukoil Oao-Spon ADR 58 Call 15/06/2012 130 (30,550) (0.02)

Balance carried forward (3,366,912) (1.94)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

44


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (3,366,912) (1.94)

M&T Bank 75 Call 21/01/2012 80 (25,600) (0.02)

M&T Bank 80 Call 21/01/2012 40 (3,000) *

Merck & Co Inc 34 Call 21/04/2012 500 (215,000) (0.13)

Microchip Technology Inc 32 Call 21/04/2012 150 (84,000) (0.05)

Microsoft Corp 27 Call 21/04/2012 400 (33,200) (0.02)

Microsoft Corp 32.5 Call 21/01/2012 200 (200) *

National Australia Bank Ltd 25 Call 28/06/2012 510 (54,899) (0.03)

National Bank of Canada 80 Call 21/01/2012 150 (1,031) *

Norfolk Southern Corp 70 Call 17/03/2012 100 (52,000) (0.03)

Norfolk Southern Corp 72.5 Call 17/03/2012 40 (14,400) (0.01)

Norfolk Southern Corp 75 Call 21/01/2012 60 (4,500) *

Northrop Grumman Corp 65 Call 19/05/2012 122 (12,200) (0.01)

Novartis AG-Reg 54 Call 15/06/2012 300 (55,181) (0.03)

Old Mutual PLC 1.3 Call 16/03/2012 200 (41,961) (0.03)

Old Mutual PLC 1.4 Call 16/03/2012 200 (24,088) (0.01)

Balance carried forward (3,988,172) (2.31)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

45


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (3,988,172) (2.31)

Petrochina Co Ltd Shares H 10.5 Call 29/03/2012 550 (38,241) (0.02)

Pfizer Inc 19 Call 17/03/2012 200 (56,200) (0.03)

Pfizer Inc 21 Call 17/03/2012 350 (42,350) (0.03)

Pfizer Inc 22.5 Call 21/01/2012 100 (1,100) *

Philip Morris International 72.5 Call 21/01/2012 137 (86,310) (0.05)

Portland General Electric Co 25 Call 17/03/2012 600 (75,000) (0.04)

PPG Industries Inc 85 Call 19/05/2012 100 (52,000) (0.03)

Procter & Gamble Co 67.5 Call 21/04/2012 200 (31,600) (0.02)

Procter & Gamble Co 75 Call 21/01/2012 100 (200) *

Prudential Financial Inc 52.5 Call 17/03/2012 150 (35,550) (0.02)

Repsol YPF 21 Call 15/06/2012 250 (117,158) (0.07)

Repsol YPF 24 Call 15/06/2012 300 (66,985) (0.04)

Royal Bank of Canada 50 Call 21/01/2012 200 (43,997) (0.03)

Royal Dutch Shell PLC – A Shares 25 Call 16/03/2012 190 (84,600) (0.05)

Royal Dutch Shell PLC – A Shares 28 Call 15/06/2012 200 (42,579) (0.03)

Royal Dutch Shell PLC – A Shares 28 Call 21/09/2012 75 (16,357) (0.01)

Balance carried forward (4,778,399) (2.78)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

46


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (4,778,399) (2.78)

Sanofi-Aventis 56 Call 16/03/2012 50 (18,758) (0.01)

Sanofi-Aventis 56 Call 21/09/2012 200 (109,304) (0.06)

Schneider Electric SA 44 Call 16/03/2012 65 (16,538) (0.01)

Seadrill Ltd 195.74 Call 15/03/2012 560 (143,567) (0.08)

Snam Rete Gas 3.6 Call 15/03/2012 75 (6,377)

Snam Rete Gas 3.8 Call 14/06/2012 300 (22,198) (0.01)

Statoil ASA 150 Call 15/03/2012 860 (140,500) (0.08)

TE Connectivity Ltd 35 Call 21/04/2012 300 (24,000) (0.02)

TE Connectivity Ltd 40 Call 21/04/2012 140 (2,800) *

Telefonica 15 Call 15/06/2012 400 (18,174) (0.01)

Telefonica 15 Call 16/03/2012 400 (7,789) *

Texas Instruments Inc 31 Call 21/01/2012 250 (4,750) *

Texas Instruments Inc 34 Call 21/01/2012 130 (260) *

Time Warner Inc 39 Call 21/01/2012 100 (600) *

Time Warner Inc 45 Call 21/01/2012 400 (800) *

TJX Co Inc 60 Call 21/01/2012 200 (100,000) (0.06)

TMX Group Inc 42 Call 21/04/2012 160 (47,926) (0.03)

Total SA 40 Call 21/09/2012 200 (67,244) (0.04)

Total SA 42 Call 15/06/2012 150 (23,951) (0.01)

Unilever NV-CVA 26 Call 21/09/2012 400 (92,948) (0.06)

Unilever NV-CVA 28 Call 21/09/2012 210 (23,717) (0.01)

Union Pacific Corp 92.5 Call 21/01/2012 20 (27,500) (0.02)

Union Pacific Corp 110 Call 18/02/2012 200 (46,400) (0.03)

US Bancorp Com 28 Call 17/03/2012 250 (26,000) (0.02)

Balance carried forward (5,750,500) (3.34)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

47


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

US$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (5,750,500) (3.34)

Vale SA SP ADR 26 Call 16/06/2012 350 (19,600) (0.01)

Valeo 34 Call 15/06/2012 60 (19,161) (0.01)

Validus Holdings Ltd 30 Call 18/02/2012 100 (50,000) (0.03)

Validus Holdings Ltd 35 Call 18/02/2012 217 (7,595) *

Verizon Communications Inc 38 Call 21/01/2012 200 (42,400) (0.03)

Verizon Communications Inc 38 Call 21/04/2012 200 (50,200) (0.03)

Vivendi 18 Call 16/03/2012 250 (15,902) (0.01)

Vodafone Group PLC 1.66 Call 16/03/2012 400 (108,109) (0.06)

Vodafone Group PLC 1.86 Call 15/06/2012 258 (29,738) (0.02)

Volkswagen PFD 120 Call 16/03/2012 110 (101,957) (0.06)

Volvo AB B Shares 80 Call 20/01/2012 400 (4,668) *

Wal-Mart Stores Inc 55 Call 21/01/2012 75 (36,375) (0.02)

Wal-Mart Stores Inc 62.5 Call 16/06/2012 25 (3,150) *

Waste Management Inc 34 Call 21/04/2012 300 (28,500) (0.02)

(6,267,855) (3.64)

Portfolio of investments 156,217,202 90.75

Other net assets 15,928,580 9.25

Net assets attributable to unitholders 172,145,782 100.00

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

48


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Percentage of

total net assets

attributable to

unitholders at

Percentage of

total net assets

attributable to

unitholders at

Fair value at

31 December 31 December 31 December

2011 2011 2010

US$ % %

Summary

Quoted

Australia 2,273,227 1.32 2.48

Belgium – – 1.65

Bermuda 1,910,397 1.11 2.29

Brazil 1,955,850 1.14 2.05

Canada 5,246,924 3.05 3.62

China 2,715,186 1.58 2.95

Finland 1,239,733 0.72 0.38

France 12,087,438 7.02 6.45

Germany 9,432,066 5.48 2.48

Great Britain 13,565,008 7.88 8.95

Hong Kong 4,697,133 2.73 2.66

Indonesia – – 0.83

Italy 4,435,389 2.58 3.23

Japan 3,881,791 2.26 4.28

Luxembourg 1,293,277 0.75 –

Netherlands 5,102,307 2.96 0.87

Norway 2,894,093 1.68 1.04

Poland 1,019,671 0.59 –

Russian Federation 2,290,600 1.33 –

Singapore 1,624,185 0.94 2.08

South Africa 3,172,567 1.84 0.49

South Korea 874,132 0.51 2.45

Spain 5,859,641 3.40 2.58

Sweden 1,629,104 0.95 –

Switzerland 4,088,279 2.37 4.81

Thailand 483,360 0.28 0.89

Turkey 1,231,071 0.72 1.71

United States of America 67,482,628 39.20 33.67

Written call options (6,267,855) (3.64) (2.87)

Portfolio of investments 156,217,202 90.75 92.02

Other net assets 15,928,580 9.25 7.98

Net assets attributable to unitholders 172,145,782 100.00 100.00

The accompanying notes form an integral part of these financial statements.

49


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Secondary – By Industry

Percentage of

total net assets

attributable to

unitholders at

Percentage of

total net assets

attributable to

unitholders at

Fair value at

31 December 31 December 31 December

2011 2011 2010

US$ % %

Aerospace 1,818,810 1.05 –

Airlines 1,069,027 0.62 1.68

Automobiles and components – – 0.56

Autos & Trucks 3,426,123 1.99 –

Bank & Finance 16,988,428 9.87 14.16

Building and construction 1,289,679 0.75 1.25

Chemical 3,004,982 1.75 2.22

City gas 1,641,511 0.96 0.97

Communications 1,487,600 0.86 –

Computer and software 6,626,441 3.86 4.83

Consumer durables and apparel 4,777,122 2.78 2.75

Diversified resource 4,320,667 2.50 1.08

Electric and electronic 8,049,973 4.68 4.00

Electric utilities – – 1.32

Energy – – 0.49

Engineering and machinery 1,624,185 0.94 0.95

Entertainment – – 3.30

Foods and beverage 6,590,088 3.83 3.53

Industrials 1,426,313 0.83 1.49

Insurance 5,122,009 2.98 2.68

Investment 891,200 0.52 –

Iron and steel 2,044,867 1.19 0.96

Machine tools 1,319,732 0.77 2.13

Manufacturing 3,088,050 1.79 0.94

Media 1,806,500 1.05 0.76

Medial – drugs 13,194,273 7.66 9.84

Mining 1,822,149 1.05 –

Miscellaneous – – 1.07

Office equipment 857,291 0.50 0.71

Oil and gas 21,588,163 12.54 10.55

Pharmaceutical 1,769,850 1.03 1.18

Print/Publish – – 0.83

Public utility 2,642,254 1.53 2.22

Pulp & paper 1,190,320 0.69 –

Balance carried forward 121,477,607 70.57 78.45

The accompanying notes form an integral part of these financial statements.

50


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Portfolio Statement

As at 31 December 2011

Secondary – By Industry

Percentage of

total net assets

attributable to

unitholders at

Percentage of

total net assets

attributable to

unitholders at

Fair value at

31 December 31 December 31 December

2011 2011 2010

US$ % %

Balance brought forward 121,477,607 70.57 78.45

Retailing 6,686,718 3.87 2.30

Services 1,863,050 1.08 1.10

Technology hardware and equipment 556,776 0.32 0.51

Telecommunication services 11,830,204 6.89 5.87

Tobacco 3,723,865 2.16 2.02

Trading 355,732 0.21 –

Transportation 5,025,277 2.92 0.50

Trucking 438,784 0.26 –

Unit trust 1,293,277 0.75 –

Utilities 6,895,612 4.00 3.80

Wholesale 2,338,155 1.36 0.34

Written call options (6,267,855) (3.64) (2.87)

Portfolio of investments 156,217,202 90.75 92.02

Other net assets 15,928,580 9.25 7.98

Net assets attributable to unitholders 172,145,782 100.00 100.00

The accompanying notes form an integral part of these financial statements.

51


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

These notes form an integral part of the financial statements.

1 Domicile and activities

Allianz Global Investors Premier Funds is a Singapore umbrella fund constituted by a Trust Deed dated

27 November 1998 and Supplemental Deeds thereon (hereinafter referred to as “Trust Deeds”) between

Allianz Global Investors Singapore Limited (“the Manager”) and HSBC Institutional Trust Services

(Singapore) Limited (“the Trustee”). The Trust Deeds are governed by the laws of the Republic of Singapore.

The umbrella fund comprises five separate and distinct sub-funds, namely the RCM Global High Payout

Fund, RCM Global Twin-Focus Fund, AllianzGI Choice Equity Fund, AllianzGI Enhanced Income

& Growth Fund and AllianzGI US High Yield Fund. Allianz Income & Growth Fund and AllianzGI

Choice Equity Fund were terminated on 1 August 2011 (date of termination) and 4 October 2011 (date

of termination), respectively. The financial statements of RCM Global High Payout Fund (“the Fund”)

presented in this report are intended for inclusion in the Annual Report of the umbrella fund.

The investment objective of the Fund is to provide total return from dividend income, option premiums and

capital appreciation, sustainable distributions and typically lower portfolio volatility compared to an equity

investment by investing in a globally diversified portfolio of equities which offer attractive and sustainable

dividend yields and selling call options to generate option premiums which will enhance dividends.

2 Significant accounting policies

(a)

Basis of financial statements preparation

The financial statements are presented in United States dollars, which is the Fund’s functional currency.

The financial statements are prepared on the historical cost basis, as modified by the revaluation of quoted

investments, and in accordance with the Statement of Recommended Accounting Practice 7 “Reporting

Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore (“ICPAS”).

For the purposes of preparation of these financial statements, the basis used for calculating the ratio of

expenses and portfolio turnover ratio are in accordance with the guidelines issued by the Investment

Management Association of Singapore and the Code on Collective Investment Schemes under the Securities

and Futures Act (Cap 289) respectively.

(b)

Basis of valuation of investments

Quoted investments are stated at fair value based on the quoted bid prices at the balance sheet date. The

market price for financial liabilities is based on the current quoted ask price. Unrealised gains/losses on

investments are represented by the difference between the fair value and the carrying value of investments

and are recognised in the Statement of Total Return.

Realised gains and losses upon disposal of investments are computed on the basis of the difference between

the weighted average cost and the selling price of investments on trade date and are taken to the Statement of

Total Return.

52


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

2 Significant accounting policies (continued)

(c)

Recognition of income

Dividend income is recognised in the Statement of Total Return on the date that the right to receive payment

is established, which in the case of quoted securities is the ex-dividend date.

Premiums received from writing options that expire unexercised are treated by the Fund on the expiration

date as realised gains from investments. If a call option is exercised, the premium is added to the proceeds

from the sale of the underlying security.

(d)

Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of

the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are

retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities

denominated in foreign currencies that are measured at fair value are retranslated to the functional currency

at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on

retranslation are recognised in the Statement of Total Return.

(e)

Financial derivatives

Financial derivatives include covered call options which are entered into for the purpose of efficient portfolio

management and for generating option premiums which will enhance distributions and to reduce overall

portfolio risk as determined by the Manager and in accordance with the provisions of the Trust Deeds.

The financial derivatives outstanding at the balance sheet date are valued at the current market prices using

the “mark to market” method as applicable, based on market quotations, and the resultant gains and losses

are taken up in the Statement of Total Return.

(f)

Distribution policy

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event,

an appropriate amount will be transferred to a distribution account to be paid on the distribution date. This

amount shall not be treated as part of the property of the Fund. The distribution is recognised when the

obligation to pay is established.

3 Taxation

(a)

The tax expense attributable to the income for the financial year is as follows:

2011 2010

US$

US$

Overseas taxation (note (b)) 1,340,178 1,365,463

(b)

The Overseas taxation represents tax deducted withheld on foreign sourced income.

53


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

3 Taxation (continued)

(c)

The Fund is a designated unit trust and is approved under the CPF Investment Scheme and, therefore, the

following income is exempted from tax in accordance with section 35(12) and (12A) of the Income Tax Act:

(i)

(ii)

(iii)

Gains or profits derived from Singapore or elsewhere from the disposal of securities;

Interest (other than interest for which Singapore tax has been withheld); and

Dividends derived from outside Singapore and received in Singapore.

4 Distributions

The following dividends were announced and paid by the Fund:

Entitlement cut

off date

Payment date

Distributions

amount

US$

31 December 2011

Dividend at 2.97 cents per unit 31 December 2010 14 January 2011 8,798,317

Dividend at 3.06 cents per unit 30 June 2011 14 July 2011 8,581,373

17,379,690

31 December 2010

Dividend at 2.90 cents per unit 31 December 2009 15 January 2010 9,629,134

Dividend at 2.59 cents per unit 30 June 2010 14 July 2010 8,234,500

17,863,634

On 3 January 2012, the following dividend was announced by the Fund. The dividend has not been

recognised at 31 December 2011.

Entitlement cut

off date

Payment date

Distribution

amount

US$

Dividend at 2.61 cents per unit 30 December 2011 16 January 2012 6,902,162

54


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

5 Receivables

2011 2010

US$

US$

Amount receivable from creation of units 24,467 78,677

Dividends receivable 498,448 540,085

522,915 618,762

6 Cash and bank balances

2011 2010

US$

US$

Cash and bank balances 9,230,300 7,807,202

The bank balances are placed with a bank which is a related company of the Trustee.

7 Margin accounts with brokers

2011 2010

US$

US$

Margin accounts with brokers 6,783,918 9,247,412

Margin accounts represent the margin deposit amounts held with brokers.

8 Payables

2011 2010

US$

US$

Amount payable for cancellation of units 342,034 383,651

Accrued expenses 266,519 345,342

608,553 728,993

55


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

9 Net assets attributable to unitholders

2011 2010

US$

US$

At beginning of the year 219,574,368 240,179,355

Operations

Change in net assets attributable to unitholders resulting from

operations (25,670,213) 4,482,989

Unitholders’ contributions/(withdrawals)

Creation of units 19,645,832 12,475,549

Cancellation of units (41,404,205) (37,563,525)

Change in net assets attributable to unitholders resulting from net

creation and cancellation of units (21,758,373) (25,087,976)

Total decrease in net assets attributable to unitholders (47,428,586) (20,604,987)

At end of the year 172,145,782 219,574,368

2011 2010

US$

US$

Units in issue (note 10) 264,450,636 296,239,630

Net assets attributable to unitholders per unit 0.65 0.74

10 Units in issue

2011 2010

Units

Units

Units at beginning of the year 296,239,630 332,039,093

Units created 27,437,849 18,181,790

Units cancelled (59,226,843) (53,981,253)

Units at end of the year 264,450,636 296,239,630

56


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

11 Related party transactions

The Managers of the Fund is Allianz Global Investors Singapore Limited. The Trustee is HSBC Institutional

Trust Services (Singapore) Limited, a subsidiary of the HSBC Group. Management fees are paid to the

Manager. The trustee fees, custody fees, registrar fees and valuation fees charged by, and interest earned

on deposits with, the HSBC Group are shown in the Statement of Total Return. Bank balances placed with

HSBC Group is set out in note 6.

12 Financial risk management

The Fund’s activities expose it to a variety of financial risk (including currency risk, fair value risk, interest

rate risk and price risk), credit risk and liquidity risk. The Fund’s overall risk management programme seeks

to minimise potential adverse effects on the Fund’s financial performance. The Fund may use financial

futures contracts, financial options contracts and/or currency forward contracts subject to the terms of the

Trust Deed to moderate certain risk exposures. Specific guidelines on exposures to individual securities and

certain industries are in place for the Fund at any time as part of the overall financial risk management to

reduce the Fund’s risk exposures.

The Fund’s assets principally consist of financial instruments such as equities, call options and cash. They

are held in accordance with the published investment policies of the Fund. The allocation of assets between

the various types of investments is determined by the Manager to achieve their investment objectives.

Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part,

under a contract.

Concentrations of credit risk are minimised primarily by:

- ensuring counterparties, together with the respective credit limits, are approved,

- ensuring that transactions are undertaken with a large number of counterparties, and

- ensuring that the majority of transactions are undertaken on recognised exchanges.

As such, the Fund does not have a concentration of non-bank credit risk that arises from an exposure to a

single counterparty. Furthermore, the Fund does not have a material exposure to group of counterparties

which are expected to be affected similarly by changes in economic or other conditions.

The Fund adopts the policy of dealing with approved financial institutions and other counterparties with high

credit ratings.

All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default

is considered minimal, as delivery of securities is only made once the broker has received payment. Payment

is made on a purchase once the securities have been received by the broker. The trade will fail if either party

fails to meet its obligation.

Credit risk also arises from cash and cash equivalents and derivative positions held with financial

institutions. The table below summarises the credit rating of banks and custodians in which the Fund’s noninvestment

assets are held as at 31 December 2011 and 31 December 2010.

57


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

12 Financial risk management (continued)

As at 31 December 2011

Amount

US$

Credit

rating

Source of credit

rating

Clearing broker

UBS 6,783,918 Aa3 Moody’s

Bank and Custodian

The Hongkong and Shanghai Banking

Corporation Limited 9,230,300 Aa1 Moody’s

As at 31 December 2010

Clearing broker

UBS 9,247,412 Aa3 Moody’s

Bank and Custodian

The Hongkong and Shanghai Banking

Corporation Limited 7,807,202 Aa1 Moody’s

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets.

Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in settling a liability, including a redemption

request.

The Fund is exposed to daily cash redemption of units in the Fund. The Fund invests the majority of its

assets in investments that are traded in an active market and can be readily disposed of. Investments which

are neither listed nor quoted are restricted to a maximum of 10% of the net assets value.

In accordance with the Fund’s policies, the Manager monitors the Fund’s liquidity position on a daily basis,

and a risk oversight committee reviews them on a regular basis. The Fund manager also has the option

to limit redemption orders to 10% of the net assets value, with the approval of the Trustee. In this event,

the limitation will apply pro rata so that all unitholders of the relevant class or classes wishing to redeem

units in that Fund on that dealing day will redeem the same proportion by value of such units, and units not

redeemed will be carried forward for redemption, subject to the same limitation, on the next dealing day.

The Fund may, from time to time, invest in currency forward contracts traded over the counter, which are not

traded in an organised market and may be illiquid.

The table below analyses the Fund’s financial liabilities and net settled derivative financial liabilities into

relevant maturity groupings based on the remaining period at the balance sheet date to the contractual

maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within 12

months equal their carrying balances, as the impact of discounting is not significant.

58


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

12 Financial risk management (continued)

As at 31 December 2011

Less than 3 months to

3 months 1 year 1 to 5 years Above 5 years

US$ US$ US$ US$

Payables 608,553 – – –

Net assets attributable to unitholders 172,145,782 – – –

As at 31 December 2010

Payables 728,993 – – –

Net assets attributable to unitholders 219,574,368 – – –

All net assets attributable to unitholders are classified within the less than 3 months category, regardless of

when redemptions might occur.

Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates,

including observable variables such as interest rates, credit spreads, exchange rates, and others that may be

only indirectly observable such as volatilities and correlations. Market risk includes such factors as changes

in economic environment, consumption pattern and investor’s expectation etc. which may have significant

impact on the value of the investments. The Fund’s investments are substantially dependent on changes

in market prices. The Fund’s investments are monitored by the Manager on a regular basis so as to assess

changes in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of

investments, events beyond reasonable control of the Manager could affect the prices of the underlying

investments and hence the asset value of the Fund. Guidelines are set to reduce the Fund’s risk exposures to

market volatility such as diversifying the portfolio by investing across various geographies, alternatively, the

Fund may be hedged using derivative strategies.

The Fund distinguishes market risk as follows:

- Foreign exchange risk

- Interest rate risk

- Other price risk

Foreign Exchange risk

The Fund has securities denominated in currencies other than US dollars and the Fund may be affected

favourably or unfavourably by exchange rate regulators or changes in the exchange rates between the US

dollar and such other currencies. The Fund may enter into foreign currency contracts designed to either

hedge some or all of this exposure, or alternatively increase exposure to preferred foreign currencies.

59


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

12 Financial risk management (continued)

The table below summarises the exposure to foreign currency risks for the Fund.

As at 31 December 2011

HKD EUR GBP

US$ US$ US$

Assets

Portfolio of investments 7,231,956 37,326,414 13,275,811

Receivables – – 85,240

Cash and bank balances 18,536 55,282 34,488

Margin accounts with brokers 1,196,253 876,157 1,644,948

Total assets 8,446,745 38,257,853 15,040,487

Liabilities

Payables – 36 124

Total liabilities – 36 124

Net exposure 8,446,745 38,257,817 15,040,363

As at 31 December 2010

Assets

Portfolio of investments 12,104,910 39,787,156 17,148,030

Receivables – – 91,771

Due from brokers 588,020 – –

Cash and bank balances 627 1,098,044 55,553

Margin accounts with brokers 1,092,851 521,283 905,233

Total assets 13,786,408 41,406,483 18,200,587

Liabilities

Payables – 863 125

Total liabilities – 863 125

Net exposure 13,786,408 41,405,620 18,200,462

60


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

12 Financial risk management (continued)

The following table shows the Fund’s sensitivity to foreign currency exposure should those currencies

increase by 5% against United States dollars with all other variables held constant.

Currency rates rise by 5%

Currency

Increase in net assets attributable to

unitholders

2011 2010

US$

US$

HKD 422,337 689,320

EUR 1,912,891 2,070,281

GBP 752,018 910,023

A weakening of the above currencies against the Singapore dollar at 31 December would have had the equal

but opposite effect on the above currencies to the amount shown above, on the basis that all other variables

remain constant.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market

interest rates.

The table below summarises the Fund’s exposure to interest rate risks. They include the Fund’s assets and

trading liabilities at fair value, categorised by the earlier of contractual re-pricing or maturity dates. All

variable rate financial instruments are reset within a month.

31 December 2011

Variable

Non-interest

rates Fixed rates bearing Total

US$ US$ US$ US$

Assets

Portfolio of investments – – 156,217,202 156,217,202

Receivables – – 522,915 522,915

Cash and bank balances 9,230,300 – – 9,230,300

Margin accounts with brokers 6,783,918 – – 6,783,918

Total assets 16,014,218 – 156,740,117 172,754,335

Liabilities

Payables – – 608,553 608,553

Net assets attributable to unitholders – – 172,145,782 172,145,782

Total liabilities – – 172,754,335 172,754,335

61


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

12 Financial risk management (continued)

31 December 2010

Variable

Non-interest

rates Fixed rates bearing Total

US$ US$ US$ US$

Assets

Portfolio of investments – – 202,041,965 202,041,965

Receivables – – 618,762 618,762

Due from brokers – – 588,020 588,020

Cash and bank balances 7,807,202 – – 7,807,202

Margin accounts with brokers 9,247,412 – – 9,247,412

Total assets 17,054,614 – 203,248,747 220,303,361

Liabilities

Payables – – 728,993 728,993

Net assets attributable to unitholders – – 219,574,368 219,574,368

Total liabilities – – 220,303,361 220,303,361

As at 31 December 2011, should interest rates have risen by 50 basis points (“bps”) (2010: 50 bps) with all

other variables remaining constant, the increase in net assets attributable to unitholders for the year would be

as follows:

Benchmark components

Interest rates rise by 50 bps

Increase in net assets attributable to

unitholders

2011 2010

US$

US$

LIBOR (AUD) (2,248) 2,388

LIBOR (GBP) (3,764) 4,804

EURIBOR (EUR) (16,963) 8,097

LIBOR (CAD) 1,977 8,852

LIBOR (USD) (29,523) 46,273

A decrease in interest rate at 31 December 2011 and 31 December 2010 would have had the equal but

opposite effect in the net assets attributable to unitholders to the amount shown above, on the basis that all

other variables remain constant.

Other price risk

The table below summarises the impact of increases/decreases from the Fund’s underlying investments in

equities on the Fund’s net assets attributable to unitholders at 31 December 2011 and 2010. The analysis

is based on the assumption that the index components within the benchmark increased/decreased by a

reasonable possible shift, with all other variables held constant and that the fair value of Fund’s investments

moved according to the historical correlation with the index.

62


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

12 Financial risk management (continued)

Proxy as Benchmark of the Fund is the MSCI World Index.

Benchmark components Benchmark increase by 10%

Increase in net assets attributable to

unitholders

2011 2010

US$

US$

MSCI World Index 12,059,256 16,646,901

A decrease in benchmark at 31 December 2011 and 31 December 2010 would have had the equal but

opposite effect in the net assets attributable to unitholders to the amount shown above, on the basis that all

other variables remain constant.

Fair values

At 31 December 2011 and 31 December 2010, fair values of assets and liabilities approximate their carrying

values on the Balance Sheet.

Capital management

The Fund’s capital is represented by the net assets attributable to unitholders.

The units in issue provide an unitholder with the right to require redemption for cash at a value proportionate

to the unitholder’s share in the Fund’s net assets and are classified as liabilities. The Fund’s objectives in

managing the units in issue are to ensure a stable base to maximise returns to all investors, and to manage

liquidity risk arising from redemptions. The Fund’s management of the liquidity risk arising from units in

issue is discussed under liquidity risk.

13 Financial ratios

2011 2010

% %

Expense ratio (Note 1 and 2) 1.94 1.81

Portfolio turnover ratio (Note 3) 69.82 75.80

1 The expense ratio is calculated in accordance with the IMAS Guidelines on the disclosure of expense ratios dated 25 May

2005. Interest expense arising on bank lending and other loans to the Fund, brokerage and other transaction costs, foreign

exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or

arising out of income received are not included in the expense ratios. The Fund does not pay any performance fees.

2 On 28 December 2006, the Central Provident Fund Board (CPF Board) announced changes to the CPF Investment Scheme.

One of these changes is that from 1 January 2008, the expense ratio for funds included under the CPF Investment Scheme

has to be within the median expense ratio in their respective risk classes, in order to continue accepting CPF monies. The

compliance with the expense ratio cap for each fund will be based on the audited report for the last financial year of the fund.

3 Portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective Investment Schemes.

63


Allianz Global Investors Premier Funds – RCM Global High Payout Fund

Notes to the Financial Statements

14 Singapore Dollar Class

(a)

The Fund offers two classes of units, namely the RCM Global High Payout Fund S$ Class (“S$

Units”) and the RCM Global High Payout Fund US$ Class (“US$ Units”).

The S$ Units is structured such that all or substantially all its assets are invested into the US$ Units.

Consequently, these financial statements of RCM Global High Payout Fund cover the financial

information of the US$ Units only. Supplementary information relating to the S$ Units are set out in

this note.

(b)

(c)

There are no significant differences between S$ Units and US$ Units except for the currency of

denomination and that S$ Units are subjected to foreign exchange risk (i.e. US$ versus S$ exchange

rate risk).

Net assets attributable to unitholders per S$ unit

2011 2010

Number of US$ Units issued to S$ Unitholders 247,125,766 273,539,106

Net assets attributable to unitholders per US$ unit for issuing/

redeeming units US$0.65 US$ 0.74

Value of US$ Units issued to S$ Unitholders US$160,631,748 US$202,418,938

Total value attributable to S$ unitholders S$208,283,156 S$260,365,616

Number of S$ Units in issue 403,337,818 446,439,704

Net assets attributable to unitholders per S$ unit S$0.52 S$0.58

64


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Report of the Trustee

The Trustee is under a duty to take into custody and hold the assets of Allianz Global Investors Premier Funds

– RCM Global Twin Focus Fund (the “Fund”) in trust for the unitholders. In accordance with the Securities and

Futures Act (Chapter 289), its subsidiary legislation and the Code on Collective Investment Schemes (collectively

referred to as the “laws and regulations”), the Trustee shall monitor the activities of the Manager for compliance

with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed and Supplemental

Deeds in each annual accounting period and report thereon to unitholders in an annual report which shall contain

the matters prescribed by the laws and regulations as well as the recommendations of Statement of Recommended

Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public

Accountants of Singapore and the Trust Deed and Supplemental Deeds.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the period

covered by these financial statements, set out on pages 69 to 90, comprising the Statement of Total Return, Balance

Sheet, Portfolio Statement and Notes to the Financial Statements, in accordance with the limitations imposed on

the investment and borrowing powers set out in the Trust Deed and Supplemental Deeds, laws and regulations and

otherwise in accordance with the provisions of the Trust Deeds and Supplemental Deeds.

For and on behalf of the Trustee

HSBC Institutional Trust Services (Singapore) Limited

────────────────────

Authorised signatory

Singapore

[dateofsigning]

65


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Statement by the Managers

In the opinion of the directors of Allianz Global Investors Singapore Limited, the accompanying financial

statements set out on pages 69 to 90, comprising the Statement of Total Return, Balance Sheet, Portfolio Statement

and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial

position of the Fund as at 31 December 2011, and the total return for the year then ended, in accordance with

the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit

Trusts” issued by the Institute of Certified Public Accountants of Singapore. At the date of this statement, there

are reasonable grounds to believe that the Fund will be able to meet its financial obligations as and when they

materialise.

For and on behalf of Directors of

Allianz Global Investors Singapore Limited

────────────────────

Director

Singapore

[dateofsigning]

66


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Independent Auditors’ Report to the Unitholders of

Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

(Constituted under a Trust Deed in the Republic of Singapore)

We have audited the financial statements of Allianz Global Investors Premier Funds – RCM Global Twin-Focus

Fund (the “Fund”), which comprise the Statement of Total Return for the year ended 31 December 2011, the

Balance Sheet and Portfolio Statement as at 31 December 2011, and a summary of significant accounting policies

and other explanatory information, as set out on pages 69 to 90.

Manager’s responsibility for the financial statements

The Manager of the Fund is responsible for the preparation and fair presentation of these financial statements in

accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework

for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore, and for such internal control as

the Manager of the Fund determines is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements

are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of

material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the Fund’s internal controls. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of

the Fund, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the

Fund as at 31 December 2011 and the total return of the Fund for the year then ended, in accordance with the

recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts”

issued by the Institute of Certified Public Accountants of Singapore.

KPMG LLP

Public Accountants and

Certified Public Accountants

Singapore

[dateofsigning]

67


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Statement of Total Return

For the financial year ended 31 December 2011

Note 2011 2010

S$ S$

Income

Dividends 575,261 612,995

Interest 525 487

575,786 613,482

Less: Expenses

Audit fees 12,428 10,089

Custody fees 8,633 15,478

Management fees 305,662 380,037

Other expenses 31,987 23,607

Registrar fees 16,029 15,942

Trustee fees 9,552 11,876

Valuation fees 19,125 21,475

403,416 478,504

Net income 172,370 134,978

Net gains/(losses) on investments

Net realised losses on investments (3,636,738) (2,707,343)

Net change in fair value of investments 3,049,257 (667,066)

Net realised gains on financial derivatives 2,437,507 189,808

Net change in fair value of financial derivatives (808,757) 1,791,151

Net foreign exchange losses (1,802,227) (235,508)

Net losses on investments (760,958) (1,628,958)

Total return for the year before income tax (588,588) (1,493,980)

Less: Income tax 3 (126,724) (132,464)

Total return for the year before distributions (715,312) (1,626,444)

Less: Distributions 4 (1,371,748) (1,692,444)

Total return for the year (2,087,060) (3,318,888)

The accompanying notes form an integral part of these financial statements.

68


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Balance Sheet

As at 31 December 2011

Note 2011 2010

S$ S$

Assets

Portfolio of investments 15,704,681 18,688,793

Receivables 5 30,638 16,225

Cash and bank balances 6 329,318 90,949

Margin accounts with brokers 7 750,216 1,195,893

Foreign exchange financial derivatives 8 – 1,791,151

Total assets 16,814,853 21,783,011

Liabilities

Payables 9 271,711 96,202

Foreign exchange financial derivatives 8 808,757 –

Net assets attributable to unitholders 10 15,734,385 21,686,809

Total liabilities 16,814,853 21,783,011

The accompanying notes form an integral part of these financial statements.

69


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

S$ %

Quoted equities

Brazil

Petroleo Brasileiro SA 6,000 89,592 0.57

France

BNP Paribas SA 2,000 102,173 0.65

France Telecome SA 10,500 214,387 1.36

Sanofi-Aventis SA 2,000 191,015 1.21

Total SA 5,000 331,852 2.11

Vivendi SA 7,000 199,305 1.27

1,038,732 6.60

Germany

Allianz SE – REG 500 62,012 0.40

E. On AG 2,200 61,398 0.39

Muenchener Rueckver AG – REG 1,000 159,151 1.01

Siemens AG – REG 1,500 186,310 1.18

468,871 2.98

Great Britain

BHP Billiton PLC 10,000 377,130 2.40

BP PLC 30,000 277,966 1.77

GlaxoSmithKline PLC 10,000 296,425 1.88

HSBC Holdings PLC 28,000 277,067 1.76

Vodafone Group PLC 100,000 360,506 2.29

1,589,094 10.10

Italy

Enel Spa 35,000 182,632 1.16

Ente Nazionale Idrocarburi Spa 4,000 106,718 0.68

289,350 1.84

Japan

Mitsubishi UFJ Financial Group 28,000 153,360 0.97

Toyota Motor Corp 4,000 172,437 1.10

325,797 2.07

The accompanying notes form an integral part of these financial statements.

70


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

S$ %

Quoted equities (continued)

Netherlands

Royal Dutch Shell PLC A Shares 8,000 379,067 2.41

Russian Federation

Gazprom Oao Spon ADR 19,000 262,623 1.67

South Korea

Samsung Electronics Co Limited 300 357,254 2.27

Spain

Banco Santander Central Hispano 23,000 226,984 1.44

Telefonica SA 14,000 315,306 2.01

542,290 3.45

Sweden

Svenska Cellulosa AB B Shares 15,000 289,393 1.84

Switzerland

Nestle B Shares 6,000 448,856 2.85

Novartis-AG 6,800 506,347 3.22

Roche Holdings - Genussshein 1,600 352,984 2.24

1,308,187 8.31

The accompanying notes form an integral part of these financial statements.

71


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

S$ %

Quoted equities (continued)

United States of America

Abbott Laboratories Co 100 7,283 0.05

Apple Inc 1,000 525,130 3.34

AT & T Inc 11,000 430,890 2.74

Bank of America Corp 1,000 7,196 0.05

Chevron Corp 5,000 689,429 4.38

Cisco Systems Inc 9,000 210,991 1.34

Citigroup Inc 2,000 68,178 0.43

Coca-Cola Co 2,500 226,817 1.44

ConocoPhillips 3,500 330,749 2.10

Exxon Mobil Corp 9,000 988,203 6.28

General Electric Co 25,000 580,575 3.69

Google Inc 400 334,992 2.13

Hewlett-Packard Co 2,000 66,803 0.43

Intel Corp 12,000 377,325 2.40

International Business Machines Corporation 1,500 357,642 2.27

Johnson & Johnson 4,000 339,982 2.16

JP Morgan Chase & Co 7,000 301,705 1.92

Merck & Co Inc 6,000 293,224 1.86

Microsoft Corp 15,000 504,916 3.21

Oracle Corp 5,000 166,166 1.06

Pepsico Inc 1,100 94,622 0.60

Pfizer Inc 10,000 280,595 1.78

Philip Morris International Inc 2,200 223,817 1.42

Proctor & Gamble Co 6,000 518,608 3.30

Schlumberger Limited 3,000 265,684 1.69

Verizon Commications Inc 4,400 228,724 1.45

Wal-Mart Stores Inc 3,500 271,071 1.72

8,691,317 55.24

The accompanying notes form an integral part of these financial statements.

72


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

S$ %

Quoted options

Put options

DJ Global Titans 50 Index 165.244 Put 29/06/2012 63,000 723,380 4.60

Enel Spa 4 Put 14/06/2012 70 50,194 0.32

France Telecom SA Put 15/06/2012 105 30,753 0.19

Muenchener Rueckver AG-REG 84 Put 15/06/2012 10 8,669 0.05

Svenska Cellulosa AB B Shares 80 Put 15/06/2012 150 4,823 0.03

Vivendi 16 Put 15/06/2012 70 17,085 0.11

834,904 5.30

Written call options

Apple Inc 395 Call 21/04/2012 10 (46,031) (0.29)

AT & T Inc 29 Call 21/04/2012 80 (15,871) (0.10)

AT & T Inc 32.5 Call 21/01/2012 25 (32) *

Banco Santander SA 5.75 Call 20/01/2012 100 (4,713) (0.03)

Banco Santander SA 6.25 Call 16/03/2012 130 (6,127) (0.04)

BNP Paribas 36 Call 16/03/2012 20 (4,141) (0.03)

BP PLC 4.8 Call 15/06/2012 30 (13,753) (0.09)

Chevron Corp 100 Call 21/01/2012 50 (46,355) (0.29)

Cisco Systems Inc 21 Call 21/04/2012 60 (2,101) (0.01)

Coca-Cola Co 67.5 Call 21/01/2012 5 (1,815) (0.01)

Conocophillips 67.5 Call 21/01/2012 35 (25,868) (0.16)

Balance carried forward (166,807) (1.05)

The accompanying notes form an integral part of these financial statements.

73


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

S$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (166,807) (1.05)

Enel Spa 3.6 Call 14/06/2012 70 (5,626) (0.04)

Eni Spa 14 Call 15/03/2012 4 (7,706) (0.05)

Eni Spa 16 Call 15/03/2012 4 (2,725) (0.02)

Exxon Mobil Corp 80 Call 21/01/2012 80 (52,903) (0.34)

France Telecom SA 15 Call 16/03/2012 105 (530) *

Gazprom Oao-Spon ADR 13 Call 15/06/2012 190 (9,855) (0.06)

GlaxoSmithKline PLC 13.5 Call 16/03/2012 10 (27,506) (0.17)

Google Inc CL Shares A 680 Call 16/06/2012 4 (18,361) (0.12)

Hewlett-Packard Co 22.5 Call 21/01/2012 20 (8,817) (0.06)

Intel Corporation 24 Call 21/04/2012 120 (23,651) (0.15)

International Business Machines Corp 180 Call

21/01/2012 15 (12,837) (0.08)

Johnson & Johnson 70 Call 21/01/2012 40 (207) *

JP Morgan Chase & Co 35 Call 16/06/2012 70 (22,328) (0.14)

Merck & Co Inc 33 Call 21/04/2012 60 (40,066) (0.25)

Microsoft Corp 27 Call 21/04/2012 120 (12,915) (0.08)

Muenchener Rueckver AG-REG 92 Call 16/03/2012 10 (11,934) (0.08)

Nestle REG 50 Call 16/03/2012 60 (36,025) (0.23)

Novartis REG 52 Call 16/03/2012 68 (23,573) (0.15)

Oracle Corp 30 Call 17/03/2012 50 (1,621) (0.01)

Balance carried forward (485,993) (3.08)

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

74


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Holdings at Fair value at

Percentage of

total net assets

attributable to

unitholders at

31 December 31 December 31 December

2011 2011 2011

S$ %

Quoted options (continued)

Written call options (continued)

Balance brought forward (485,993) (3.08)

Pepsico Inc 70 Call 21/01/2012 11 (100) *

Pfizer Inc 20 Call 21/01/2012 100 (22,562) (0.14)

Philip Morris International 70 Call 17/03/2012 22 (26,815) (0.17)

Procter & Gamble Co 65 Call 21/04/2012 50 (19,320) (0.12)

Procter & Gamble Co 67.5 Call 21/01/2012 10 (506) *

Roche Holding Genusschein 140 Call 16/03/2012 16 (43,951) (0.28)

Royal Dutch Shell PLC A Shares 30 Call 15/06/2012 10 (993) (0.01)

Royal Dutch Shell PLC A Shares 24 Call 16/03/2012 70 (52,787) (0.35)

Sanofi-Aventis 50 Call 16/03/2012 20 (25,518) (0.16)

Siemens REG 80 Call 15/06/2012 15 (4,924) (0.03)

Svenska Cellulosa AB-B 110 Call 15/06/2012 150 (8,937) (0.06)

Total 40 Call 16/03/2012 50 (13,213) (0.08)

Verizon Communications Inc 37 Call 21/04/2012 44 (18,827) (0.12)

Vodafone Group PLC 1.76 Call 16/03/2012 70 (12,627) (0.08)

Vodafone Group PLC 1.86 Call 21/09/2012 15 (2,706) (0.02)

Wal-Mart Stores Inc 55 Call 21/01/2012 35 (22,011) (0.14)

(761,790) (4.84)

Portfolio of Investments 15,704,681 99.81

Other net assets 29,704 0.19

Net assets attributable to unitholders 15,734,385 100.00

* denotes amount less than 0.01%

The accompanying notes form an integral part of these financial statements.

75


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography (continued)

Percentage of total net assets

Fair value at attributable to unitholders at

31 December 31 December 31 December

2011 2011 2010

S$ % %

Summary

Quoted

Brazil 89,592 0.57 0.63

France 1,038,732 6.60 4.62

Germany 468,871 2.98 6.95

Great Britain 1,589,094 10.10 10.10

Italy 289,350 1.84 2.53

Japan 325,797 2.07 1.93

Netherlands 379,067 2.41 2.88

Russian Federation 262,623 1.67 0.89

South Korea 357,254 2.27 1.73

Spain 542,290 3.45 1.75

Sweden 289,393 1.84 1.40

Switzerland 1,308,187 8.31 7.42

United States of America 8,691,317 55.24 45.75

Put options 834,904 5.30 0.84

Written call options (761,790) (4.84) (3.24)

Portfolio of investments 15,704,681 99.81 86.18

Other net assets 29,704 0.19 13.82

Net assets attributable to unitholders 15,734,385 100.00 100.00

The accompanying notes form an integral part of these financial statements.

76


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Portfolio Statement

As at 31 December 2011

Secondary –By Industry

Percentage of total net assets

Fair value at attributable to unitholders at

31 December 31 December 31 December

2011 2011 2010

S$ % %

Airlines – – 1.01

Automobiles and components 172,437 1.10 1.29

Bank and finance 1,136,663 7.22 10.06

Computer and software 1,620,657 10.31 8.86

Diversified resource 766,885 4.87 4.50

Electric and electronic 917,211 5.83 5.25

Electrical utilities 61,398 0.39 0.47

Foods and beverage 770,295 4.89 6.84

Insurance 221,163 1.41 3.15

Manufacturing 518,608 3.30 2.85

Medical – drug 1,927,873 12.24 10.40

Mining 377,130 2.40 2.59

Miscellaneous 334,992 2.13 2.10

Oil and gas 3,721,883 23.66 15.81

Pharmaceutical 339,982 2.16 2.19

Public utility 199,305 1.27 1.28

Pulp and paper 289,393 1.84 1.40

Retail 271,071 1.72 1.11

Technology hardware and equipment 210,991 1.34 1.70

Telecommunication services 1,234,507 7.84 5.63

Tobacco 223,817 1.42 0.09

Utility 315,306 2.01 –

Put options 834,904 5.30 0.84

Written call options (761,790) (4.84) (3.24)

Portfolio of investments 15,704,681 99.81 86.18

Other net assets 29,704 0.19 13.82

Net assets attributable to unitholders 15,734,385 100.00 100.00

The accompanying notes form an integral part of these financial statements.

77


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

These notes form an integral part of the financial statements.

1 Domicile and activities

Allianz Global Investors Premier Funds is a Singapore umbrella fund constituted by a Trust Deed dated

27 November 1998 and Supplemental Deeds thereon (hereinafter referred to as “Trust Deeds”) between

Allianz Global Investors Singapore Limited (“the Manager”) and HSBC Institutional Trust Services

(Singapore) Limited (“the Trustee”). The Trust Deeds are governed by the laws of the Republic of Singapore.

The umbrella fund comprises five separate and distinct sub-funds, namely the RCM Global High Payout

Fund, RCM Global Twin-Focus Fund, AllianzGI Choice Equity Fund, AllianzGI Enhanced Income &

Growth Fund and AllianzGI US High Yield Fund. Allianz Enhanced Income & Growth Fund and AllianzGI

Choice Equity Fund were terminated on 1 August 2011 (date of termination) and 4 October 2011 (date of

termination), respectively. The financial statements of RCM Global Twin-Focus Fund (“the Fund”) presented

in this report are intended for inclusion in the Annual Report of the umbrella fund.

The investment objective of the Fund is to provide total return from investments in a portfolio of global

stocks, sustainable distributions through stock dividends and the writing of call options and downside

protection from a put option strategy.

2 Significant accounting policies

(a)

Basis of financial statements preparation

The financial statements are presented in Singapore dollars, which is the Fund’s functional currency.

The financial statements are prepared on the historical cost basis, as modified by the revaluation of quoted

investments, and in accordance with the Statement of Recommended Accounting Practice 7 “Reporting

Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore (“ICPAS”).

For the purposes of preparation of these financial statements, the basis used for calculating the ratio of

expenses and portfolio turnover ratio are in accordance with the guidelines issued by the Investment

Management Association of Singapore and the Code on Collective Investment Schemes under the Securities

and Futures Act (Cap 289) respectively.

(b)

Basis of valuation of investments

Quoted investments are stated at fair value based on the quoted bid prices at the balance sheet date. The

market price for financial liabilities is based on the current quoted ask price. Unrealised gains/losses on

investments are represented by the difference between the fair value and the carrying value of investments

and are recognised in the Statement of Total Return.

Realised gains and losses upon disposal of investments are computed on the basis of the difference between

the weighted average cost and the selling price of investments on trade date and are taken to the Statement of

Total Return.

(c)

Recognition of income

Dividend income is recognised in the Statement of Total Return on the date that the right to receive payment

is established, which in the case of quoted securities is the ex-dividend date.

Premiums received from writing options that expire unexercised are treated by the Fund on the expiration

date as realised gains from investments. If a call option is exercised, the premium is added to the proceeds

from the sale of the underlying security.

78


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

2 Significant accounting policies (continued)

(d)

Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of

the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are

retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities

denominated in foreign currencies that are measured at fair value are retranslated to the functional currency

at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on

retranslation are recognised in the Statement of Total Return.

(e)

Financial derivatives

Financial derivatives include covered call options and put options which are entered into for the purpose of

efficient portfolio management and for generating option premiums which will enhance distributions and to

reduce overall portfolio risk as determined by the Manager and in accordance with the provisions of the Trust

Deeds.

The financial derivatives (including foreign exchange contracts) outstanding at the balance sheet date are

valued at the current market prices using the “mark to market” method as applicable, based on market

quotations, and the resultant gains and losses are taken up in the Statement of Total Return.

(f)

Distribution policy

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event,

an appropriate amount will be transferred to a distribution account to be paid on the distribution date. This

amount shall not be treated as part of the property of the Fund. The distribution is recognised when the

obligation to pay is established.

3 Taxation

(a)

The tax expense attributable to the income for the financial year is as follows:

2011 2010

S$ S$

Overseas taxation (note (b)) 126,724 132,464

(b)

(c)

The Overseas taxation represents tax deducted withheld on foreign sourced income.

The Fund is a designated unit trust under the Singapore Income Tax Act (Chapter 134). As a result, the

following income will not be taxed at the Fund level:

(i)

(ii)

(iii)

Gains or profits derived from Singapore or elsewhere from the disposal of securities;

Interest (other than interest for which Singapore tax has been withheld); and

Dividends derived from outside Singapore and received in Singapore.

79


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

4 Distributions

The following dividends were announced and paid by the Fund:

Entitlement cut

off date

Payment date

Distributions

amount

S$

31 December 2011

Dividend at 1.133 cents per unit 31 December 2010 14 January 2011 374,653

Dividend at 1.144 cents per unit 31 March 2011 14 April 2011 367,601

Dividend at 1.128 cents per unit 30 June 2011 14 July 2011 343,025

Dividend at 1.020 cents per unit 30 September 2011 14 October 2011 286,469

1,371,748

31 December 2010

Dividend at 1.285 cents per unit 31 December 2009 15 January 2010 472,923

Dividend at 1.250 cents per unit 31 March 2010 15 April 2010 452,205

Dividend at 1.077 cents per unit 30 June 2010 14 July 2010 381,522

Dividend at 1.128 cents per unit 30 September 2010 14 October 2010 385,794

1,692,444

On 3 January 2012, the following dividend was announced by the Fund. The dividend has not been

recognised at 31 December 2011.

Entitlement cut

off date

Payment date

Distribution

amount

S$

Dividend at 1.006 cents per unit 30 December 2011 16 January 2012 270,906

5 Receivables

2011 2010

S$ S$

Dividends receivable 30,638 16,104

Other receivable – 121

30,638 16,225

80


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

6 Cash and bank balances

2011 2010

S$ S$

Cash and bank balances 329,318 90,949

The bank balances are placed with a bank which is a related company of the Trustee.

7 Margin accounts with brokers

2011 2010

S$ S$

Margin accounts with brokers 750,216 1,195,893

Margin accounts represent the margin deposit amounts held with brokers.

8 Financial derivatives at fair value

Foreign exchange contracts

The table below sets out the analysed notional contract amounts and fair value of foreign exchange contracts.

These contracts were entered into with related companies of the Trustee.

The commitments under foreign exchange contracts due for settlement within one year are as follows:

31 December 2011

Notional Fair value Fair value

amount

assets liabilities

S$ S$ S$

Foreign exchange contracts: Forward 17,769,605 – 808,757

31 December 2010

Foreign exchange contracts: Forward 22,726,500 1,791,151 –

The forward foreign exchange contracts’ maturity date is 29 June 2012 (31 December 2010: 30 June 2011).

9 Payables

2011 2010

S$ S$

Amount payable for cancellation of units 236,077 51,859

Other payable – 165

Accrued expenses 35,634 44,178

271,711 96,202

81


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

10 Net assets attributable to unitholders

2011 2010

S$ S$

At beginning of the year 21,686,809 27,453,502

Operations

Change in net assets attributable to unitholders resulting from

operations (2,087,060) (3,318,888)

Unitholders’ contributions/(withdrawals)

Creation of units 650,889 766,302

Cancellation of units (4,516,253) (3,214,107)

Change in net assets attributable to unitholders resulting from net

creation and cancellation of units (3,865,364) (2,447,805)

Total decrease in net assets attributable to unitholders (5,952,424) (5,766,693)

At end of the year 15,734,385 21,686,809

2011 2010

S$ S$

Units in issue (note 11) 26,929,017 33,067,304

Net assets attributable to unitholders per unit 0.58 0.66

11 Units in issue

2011 2010

Units

Units

Units at beginning of the year 33,067,304 36,803,375

Units created 1,020,352 1,107,405

Units cancelled (7,158,639) (4,843,476)

Units at end of the year 26,929,017 33,067,304

12 Related party transactions

The Managers of the Fund is Allianz Global Investors Singapore Limited. The Trustee is HSBC Institutional

Trust Services (Singapore) Limited, a subsidiary of the HSBC Group. Management fees are paid to the

Manager. The trustee fees, registrar fees and valuation fees charged by, and interest earned on deposits with,

the HSBC Group are shown in the Statement of Total Return. Bank balances placed with HSBC Group is set

out in note 6.

82


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

13 Financial risk management

The Fund’s activities expose it to a variety of financial risk (including currency risk, fair value risk, interest

rate risk and price risk), credit risk and liquidity risk. The Fund’s overall risk management programme seeks

to minimise potential adverse effects on the Fund’s financial performance. The Fund may use financial

futures contracts, financial options contracts and/or currency forward contracts subject to the terms of the

Trust Deed to moderate certain risk exposures. Specific guidelines on exposures to individual securities and

certain industries are in place for the Fund at any time as part of the overall financial risk management to

reduce the Fund’s risk exposures.

The Fund’s assets principally consist of financial instruments such as equity investments, call options, put

options and cash. They are held in accordance with the published investment policies of the Fund. The

allocation of assets between the various types of investments is determined by the Manager to achieve their

investment objectives.

Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part,

under a contract.

Concentrations of credit risk are minimised primarily by:

- ensuring counterparties, together with the respective credit limits, are approved,

- ensuring that transactions are undertaken with a large number of counterparties, and

- ensuring that the majority of transactions are undertaken on recognised exchanges.

As such, the Fund does not have a concentration of non-bank credit risk that arises from an exposure to a

single counterparty. Furthermore, the Fund does not have a material exposure to group of counterparties

which are expected to be affected similarly by changes in economic or other conditions.

The Fund adopts the policy of dealing with approved financial institutions and other counterparties with high

credit ratings.

All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default

is considered minimal, as delivery of securities is only made once the broker has received payment. Payment

is made on a purchase once the securities have been received by the broker. The trade will fail if either party

fails to meet its obligation.

Credit risk also arises from cash and cash equivalents and derivative positions held with financial

institutions. The table below summarises the credit rating of banks and custodians in which the Fund’s noninvestment

assets are held as at 31 December 2011 and 31 December 2010.

83


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

13 Financial risk management (continued)

As at 31 December 2011

Amount

S$

Credit

rating

Source of credit

rating

Clearing Broker

UBS 750,216 Aa3 Moody’s

Bank and Custodian

The Hongkong and Shanghai Banking

Corporation Limited 329,318 Aa1 Moody’s

As at 31 December 2010

Clearing Broker

UBS 1,195,893 Aa3 Moody’s

Bank and Custodian

The Hongkong and Shanghai Banking

Corporation Limited 90,949 Aa1 Moody’s

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets.

Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in settling a liability, including a redemption

request.

The Fund is exposed to daily cash redemption of units in the Fund. The Fund invests the majority of its

assets in investments that are traded in an active market and can be readily disposed of. Investments which

are neither listed nor quoted are restricted to a maximum of 10% of the net assets value.

In accordance with the Fund’s policies, the Manager monitors the Fund’s liquidity position on a daily basis,

and a risk oversight committee reviews them on a regular basis. The Fund manager also has the option

to limit redemption orders to 10% of the net assets value, with the approval of the Trustee. In this event,

the limitation will apply pro rata so that all unitholders of the relevant class or classes wishing to redeem

units in that Fund on that dealing day will redeem the same proportion by value of such units, and units not

redeemed will be carried forward for redemption, subject to the same limitation, on the next dealing day.

The Fund may, from time to time, invest in currency forward contracts traded over the counter, which are not

traded in an organised market and may be illiquid.

The table below analyse the Fund’s financial liabilities and net settled derivative financial liabilities into

relevant maturity groupings based on the remaining period at the balance sheet date to the contractual

maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within 12

months equal their carrying balances, as the impact of discounting is not significant.

84


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

13 Financial risk management (continued)

As at 31 December 2011

Less than 3 months to

3 months 1 year 1 to 5 years Above 5 years

S$ S$ S$ S$

Payables 271,711 – – –

Foreign exchange financial derivatives – 808,757 – –

Net assets attributable to unitholders 15,734,385 – – –

As at 31 December 2010

Payables 96,202 – – –

Net assets attributable to unitholders 21,686,809 – – –

All net assets attributable to unitholders are classified within the less than 3 months category, regardless of

when redemptions might occur.

Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates,

including observable variables such as interest rates, credit spreads, exchange rates, and others that may be

only indirectly observable such as volatilities and correlations. Market risk includes such factors as changes

in economic environment, consumption pattern and investor’s expectation etc. which may have significant

impact on the value of the investments. The Fund’s investments are substantially dependent on changes

in market prices. The Fund’s investments are monitored by the Manager on a regular basis so as to assess

changes in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of

investments, events beyond reasonable control of the Manager could affect the prices of the underlying

investments and hence the asset value of the Fund. Guidelines are set to reduce the Fund’s risk exposures to

market volatility such as diversifying the portfolio by investing across various geographies, alternatively, the

Fund may be hedged using derivative strategies.

The Fund distinguishes market risk as follows:

- Foreign exchange risk

- Interest rate risk

- Other price risk

Foreign exchange risk

The Fund has securities denominated in currencies other than Singapore dollars and the Fund may be

affected favourably or unfavourably by exchange rate regulators or changes in the exchange rates between

the Singapore dollar and such other currencies. The Fund may enter into foreign currency contracts

designed to either hedge some or all of this exposure, or alternatively increase exposure to preferred foreign

currencies.

85


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

13 Financial risk management (continued)

The table below summarises the exposure to foreign currency risks for the Fund.

As at 31 December 2011

EUR GBP USD

S$ S$ S$

Assets (excluding foreign exchange derivatives)

Portfolio of investments 2,684,074 1,532,502 9,225,545

Receivables – 16,212 14,427

Cash and bank balances 30,754 49,327 155,053

Margin accounts with brokers 364,157 240,027 43,302

Total assets 3,078,985 1,838,068 9,438,327

Liabilities (excluding foreign exchange derivatives)

Payables – 40 26

Total liabilities – 40 26

Net 3,078,985 1,838,028 9,438,301

Less: Currency forwards – – (18,578,362)

Currency exposure 3,078,985 1,838,028 (9,140,061)

As at 31 December 2010

Assets (excluding foreign exchange derivatives)

Portfolio of investments 3,950,720 2,130,693 9,779,742

Receivables – 3,209 12,894

Cash and bank balances 17,655 16,287 35,269

Margin accounts with brokers 243,082 234,251 655,619

Total assets 4,211,457 2,384,440 10,483,524

Liabilities (excluding foreign exchange derivatives)

Payables 277 80 154

Total liabilities 277 80 154

Net 4,211,180 2,384,360 10,483,370

Less: Currency forwards – – (20,935,349)

Currency exposure 4,211,180 2,384,360 (10,451,979)

86


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

13 Financial risk management (continued)

The following table shows the Fund’s sensitivity to foreign currency exposure should those currencies

increase by 5% against Singapore dollars with all other variables held constant.

Currency rates rise

by 5%

Increase in net assets attributable to

unitholders

2011 2010

S$ S$

Currency

EUR 153,949 210,559

GBP 91,901 119,218

USD (457,003) (522,599)

A weakening of the above currencies against the Singapore dollar at 31 December would have had the equal

but opposite effect on the above currencies to the amount shown above, on the basis that all other variables

remain constant.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market

interest rates.

The table below summarises the Fund’s exposure to interest rate risks. They include the Fund’s assets and

trading liabilities at fair value, categorised by the earlier of contractual re-pricing or maturity dates. All

variable rate financial instruments are reset within a month.

31 December 2011

Non-interest

Variable rates Fixed rates bearing Total

S$ S$ S$ S$

Assets

Portfolio of investments – – 15,704,681 15,704,681

Receivables – – 30,638 30,638

Cash and bank balances 329,318 – – 329,318

Margin accounts with brokers 750,216 – – 750,216

Total assets 1,079,534 – 15,735,319 16,814,853

Liabilities

Payables – – 271,711 271,711

Foreign exchange financial derivative – – 808,757 808,757

Net assets attributable to unitholders – – 15,734,385 15,734,385

Total liabilities – – 16,814,853 16,814,853

87


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

13 Financial risk management (continued)

31 December 2010

Non-interest

Variable rates Fixed rates bearing Total

S$ S$ S$ S$

Assets

Portfolio of investments – – 18,688,793 18,688,793

Receivables – – 16,225 16,225

Cash and bank balances 90,949 – – 90,949

Margin accounts with brokers 1,195,893 – – 1,195,893

Foreign exchange financial derivative – – 1,791,151 1,791,151

Total assets 1,286,842 – 20,496,169 21,783,011

Liabilities

Payables – – 96,202 96,202

Net assets attributable to unitholders – – 21,686,809 21,686,809

Total liabilities – – 21,783,011 21,783,011

As at 31 December 2011, should interest rates have risen by 50 basis points (“bps”) (2010: 50 bps) with all

other variables remaining constant, the increase in net assets attributable to unitholders for the year would be

as follows:

Benchmark components

Interest rates rise by 50 bps

Increase in net assets attributable to

unitholders

2011 2010

S$ S$

EURIBOR (EUR) (2,058) 1,304

LIBOR (GBP) (632) 1,253

LIBOR (USD) 27,417 3,454

A decrease in interest rate at 31 December 2011 and 31 December 2010 would have had the equal but

opposite effect in the net assets attributable to unitholders to the amount shown above, on the basis that all

other variables remain constant.

Other price risk

The table below summarises the impact of increases from the Fund’s underlying investments in equities on

the Fund’s net assets attributable to unitholders at 31 December 2011 and 2010. The analysis is based on

the assumption that the index components within the benchmark increased by a reasonable possible shift,

with all other variables held constant and that the fair value of Fund’s investments moved according to the

historical correlation with the index.

88


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

13 Financial risk management (continued)

Proxy as Benchmark of the Fund is the Dow Jones Global Titans Index.

Benchmark components Benchmark increase by 10%

Increase in net assets attributable to

unitholders

2011 2010

S$ S$

Dow Jones Global Titans Index 283,656 1,181,230

A decrease in benchmark at 31 December 2011 and 31 December 2010 would have had the equal but

opposite effect in the net assets attributable to unitholders to the amount shown above, on the basis that all

other variables remain constant.

Fair values

At 31 December 2011 and 2010, fair values of assets and liabilities approximate their carrying values on the

Balance Sheet.

Capital Management

The Fund’s capital is represented by the net assets attributable to unitholders.

The units in issue provide an unitholder with the right to require redemption for cash at a value proportionate

to the unitholder’s share in the Fund’s net assets and are classified as liabilities. The Fund’s objectives in

managing the units in issue are to ensure a stable base to maximise returns to all investors, and to manage

liquidity risk arising from redemptions. The Fund’s management of the liquidity risk arising from units in

issue is discussed under liquidity risk.

14 Financial ratios

2011 2010

% %

Expense ratio (Note 1) 2.09 2.01

Portfolio turnover ratio (Note 2) 42.04 57.13

Note 1 The expense ratio is calculated in accordance with the IMAS guidelines on the disclosure of expense ratios dated 25 May 2005.

Interest expense arising on bank lending and other loans to the Fund, brokerage and other transaction costs, foreign exchange

gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out

of income received are not included in the expense ratios. The Fund does not pay any performance fees.

Note 2 The portfolio turnover ratio is calculated in accordance with the formula stated in the “Code on Collective Investment

Schemes”.

89


Allianz Global Investors Premier Funds – RCM Global Twin-Focus Fund

Notes to the Financial Statements

15 United States Dollar Class

(a)

The Fund offers two classes of units, namely the RCM Global Twin-Focus Fund S$ Class (“S$

Units”) and the RCM Global Twin-Focus Fund US$ Class (“US$ Units”).

The US$ Units is structured such that all or substantially all its assets are invested into the S$ Units.

Consequently, these financial statements of RCM Global Twin-Focus Fund cover the financial information

of the S$ Units only. Supplementary information relating to the US$ Units are set out in this note.

(b)

(c)

There are no significant differences between S$ Units and US$ Units except for the currency of denomination

and that US$ Units are subjected to foreign exchange risk (i.e. US$ versus S$ exchange rate risk).

Net assets attributable to unitholders per US$ unit

2011 2010

Number of S$ Units issued to US$ Unitholders 1,215,306 1,666,944

Net assets attributable to unitholders per S$ unit for issuing/

redeeming units S$0.58 S$0.66

Value of S$ Units issued to US$ Unitholders S$704,877 S$1,100,183

Value of S$ Units issued to US$ Unitholders in US$

equivalent US$543,615 US$857,512

Fair value of financial derivatives (see note 15(d)) US$27,983 US$(67,213)

Total value attributable to US$ unitholders US$571,598 US$790,299

Number of US$ Units in issue 970,345 1,188,573

Net assets attributable to unitholders per US$ unit US$0.59 US$0.66

(d)

Financial derivatives

Financial derivative contracts comprise forward foreign exchange contracts. The contracted or

underlying principal amounts of these financial derivatives and their corresponding gross fair values

at the balance sheet date are analysed below:

Notional amount

Fair value

assets

Fair value

liabilities

US$ US$ US$

31 December 2011

Foreign exchange contracts: Forward 630,000 27,983 –

31 December 2010

Foreign exchange contracts: Forward 795,000 – 67,213

The forward foreign exchange contracts’ maturity date is 29 June 2012 (31 December 2010: 30 June 2011).

90


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Report of the Trustee

The Trustee is under a duty to take into custody and hold the assets of Allianz Global Investors Premier Funds

AllianzGI Choice Equity Fund (the “Fund”) in trust for the unitholders. In accordance with the Securities and

Futures Act (Chapter 289), its subsidiary legislation and the Code on Collective Investment Schemes (collectively

referred to as the “laws and regulations”), the Trustee shall monitor the activities of the Manager for compliance

with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed and Supplemental

Deeds in each annual accounting period and report thereon to unitholders in an annual report which shall contain

the matters prescribed by the laws and regulations as well as the recommendations of Statement of Recommended

Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public

Accountants of Singapore and the Trust Deed and Supplemental Deeds.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the

period covered by these financial statements, set out on pages 94 to 108, comprising the Statement of Total Return,

Balance Sheet, Portfolio Statement and Notes to the Financial Statements, in accordance with the limitations

imposed on the investment and borrowing powers set out in the Trust Deed and Supplemental Deeds, laws and

regulations and otherwise in accordance with the provisions of the Trust Deeds and Supplemental Deeds.

For and on behalf of the Trustee

HSBC Institutional Trust Services (Singapore) Limited

────────────────────

Authorised signatory

Singapore

[dateofsigning]

91


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Statement by the Managers

In the opinion of the directors of Allianz Global Investors Singapore Limited, the accompanying financial

statements set out on pages 94 to 108, comprising the Statement of Total Return, Balance Sheet, Portfolio

Statement and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the

financial position of the Fund as at 4 October 2011 (date of termination), and the total return for the period from

1 January 2011 to 4 October 2011 (date of termination), in accordance with the recommendations of Statement of

Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified

Public Accountants of Singapore. At the date of this statement, there are reasonable grounds to believe that the Fund

will be able to meet its financial obligations as and when they materialise.

For and on behalf of Directors of

Allianz Global Investors Singapore Limited

────────────────────

Director

Singapore

[dateofsigning]

92


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Independent Auditors’ Report to the Unitholders of

Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

(Constituted under a Trust Deed in the Republic of Singapore)

We have audited the financial statements of Allianz Global Investors Premier Funds – AllianzGI Choice Equity

Fund (the “Fund”), which comprise the Statement of Total Return for the period from 1 January 2011 to 4 October

2011 (date of termination), the Balance Sheet and Portfolio Statement as at 4 October 2011 (date of termination),

and a summary of significant accounting policies and other explanatory information, as set out on pages 94 to 108.

Manager’s responsibility for the financial statements

The Manager of the Fund is responsible for the preparation and fair presentation of these financial statements in

accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework

for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore, and for such internal control as

the Manager of the Fund determines is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements

are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of

material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the Fund’s internal controls. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of

the Fund, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund

as at 4 October 2011 (date of termination) and the total return of the Fund for the period from 1 January 2011

to 4 October 2011 (date of termination) then ended, in accordance with the recommendations of Statement of

Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified

Public Accountants of Singapore.

Emphasis of matter

Without qualifying our opinion, we draw attention to note 2 of the financial statements which states that, in

accordance with the provisions of the Trust Deed, the Fund was terminated on 4 October 2011. Accordingly, the

Manager of the Fund has prepared the financial statements on the basis that this fund is no longer a going concern.

Assets have been recorded at amounts at which they are expected to be realised and liabilities at amounts at which

they are expected to be eventually settled.

KPMG LLP

Public Accountants and

Certified Public Accountants

Singapore

[dateofsigning]

93


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Statement of Total Return

For the financial period from 1 January 2011 to 4 October 2011 (date of termination)

For the financial

period from 1

January 2011

to 4 October

2011 (date of

termination)

Year ended

31 December 2010

Note

S$ S$

Income

Dividends – 33,284

Interest 5 24

Other – 12,934

5 46,242

Less: Expenses

Audit fees 12,628 10,022

Custody fees 4,600 10,027

Management fees 110,406 237,114

Other expenses 17,767 13,060

Performance fees – 165

Registrar fees 12,643 15,525

Trustee fees 3,680 7,904

Valuation fees 2,944 7,500

164,668 301,317

Net loss (164,663) (255,075)

Net gains/(losses) on investments

Net realised gains on investments 151,493 276,713

Net change in fair value of investments – (60,975)

Net foreign exchange losses (14,539) (27,572)

Net realised losses on financial derivatives – equity swaps (750,417) (940,705)

Net change in fair value of financial derivatives – equity swaps – (28,964)

Net losses on investments (613,463) (781,503)

Total deficit for the period/year before income tax (778,126) (1,036,578)

Less: Income tax 3 – –

Total deficit for the period/year before distribution (778,126) (1,036,578)

Less: Distribution 4 – –

Total deficit for the period/year (778,126) (1,036,578)

The accompanying notes form an integral part of these financial statements.

94


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Balance Sheet

As at 4 October 2011 (date of termination)

Note

4 October

2011 (date of

termination) 31 December 2010

S$ S$

Assets

Portfolio of investments – 11,944,485

Cash and bank balances 5 2,900,576 1,107,148

Margin accounts with brokers 6 – 18

Total assets 2,900,576 13,051,651

Liabilities

Payables 7 2,900,576 139,967

Net assets attributable to unitholders 8 – 12,911,684

Total liabilities 2,900,576 13,051,651

The accompanying notes form an integral part of these financial statements.

95


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Portfolio Statement

As at 4 October 2011 (date of termination)

Primary – By Geography

Percentage of

total net assets

attributable to

unitholders at

Percentage of

total net assets

attributable to

unitholders at

Fair value at

4/10/2011 4/10/2011 31/12/2010

S$ % %

Summary

Quoted securities

Hong Kong – – 3.87

Netherlands – – 3.98

Singapore – – 78.41

Supranational – – 5.84

– – 92.10

Unquoted equity swaps

United Kingdom – – 0.41

Portfolio of investments – – 92.51

Other net assets – – 7.49

Net assets attributable to unitholders – – 100.00

The accompanying notes form an integral part of these financial statements.

96


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Portfolio Statement

As at 4 October 2011 (date of termination)

Secondary –By Industry

Percentage of

total net assets

attributable to

unitholders at

Percentage of

total net assets

attributable to

unitholders at

Fair value at

4/10/2011 4/10/2011 31/12/2010

S$ % %

Airlines – – 9.98

Bank – – 14.10

Finance – – 7.95

Miscellaneous – – 16.15

Real Estate – – 13.98

Real Estate Investment Trust – – 4.18

Transport – – 26.17

Portfolio of investments – – 92.51

Other net assets – – 7.49

Net assets attributable to unitholders – – 100.00

As at 4 October 2011 (date of termination), all investments have been sold.

The accompanying notes form an integral part of these financial statements.

97


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

These notes form an integral part of the financial statements.

1 Domicile and activities

Allianz Global Investors Premier Funds is a Singapore umbrella fund constituted by a Trust Deed dated

27 November 1998 and Supplemental Deeds thereon (hereinafter referred to as “Trust Deeds”) between

Allianz Global Investors Singapore Limited (“the Manager”) and HSBC Institutional Trust Services

(Singapore) Limited (“the Trustee”). The Trust Deeds are governed by the laws of the Republic of Singapore.

The umbrella fund comprises five separate and distinct sub-funds, namely the RCM Global High Payout

Fund, RCM Global Twin-Focus Fund, AllianzGI Choice Equity Fund, AllianzGI Enhanced Income &

Growth Fund and AllianzGI US High Yield Fund. Allianz Enhanced Income & Growth Fund and AllianzGI

Choice Equity Fund were terminated on 1 August 2011 (date of termination) and 4 October 2011 (date of

termination), respectively. The financial statements of AllianzGI Choice Equity Fund (“the Fund”) presented

in this report are intended for inclusion in the Annual Report of the umbrella fund.

The investment objective of the Fund is to provide investors with enhanced returns over Singapore money

market rates and potential attractive manual payout as well as potential consistent returns regardless of

market conditions. The Fund was first offered for sale in Singapore on 3 January 2008.

Allianz Global Investors Premier Funds - AllianzGI Choice Equity Fund was terminated on 4 October 2011

(date of termination) on which date all investments were liquidated.

2 Significant accounting policies

(a)

Basis of financial statements preparation

In accordance with the provisions of the Trust Deed, the Fund has been terminated on 4 October 2011 (date

of termination). Accordingly, the Manager of the Fund has prepared the financial statements on the basis that

the Fund is no longer a going concern. Assets have been recorded at amounts that they are expected to be

realised and liabilities at amounts that they are expected to be eventually settled.

The financial statements are presented in Singapore dollars, which is the Fund’s functional currency.

The financial statements are prepared on the historical cost basis, as modified by the revaluation of quoted

investments, and in accordance with the Statement of Recommended Accounting Practice 7 “Reporting

Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore (“ICPAS”).

For the purposes of preparation of these financial statements, the basis used for calculating the ratio of

expenses and portfolio turnover ratio are in accordance with the guidelines issued by the Investment

Management Association of Singapore and the Code on Collective Investment Schemes under the Securities

and Futures Act (Cap 289) respectively.

(b)

Basis of valuation of investments

Quoted investments are stated at fair value based on the quoted bid prices at the balance sheet date. The

market price for financial liabilities is based on the current quoted ask price. Unrealised gains/losses on

investments are represented by the difference between the fair value and the carrying value of investments

and are recognised in the Statement of Total Return.

Realised gains and losses upon disposal of investments are computed on the basis of the difference between

the weighted average cost and the selling price of investments on trade date and are taken to the Statement of

Total Return.

98


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

2 Significant accounting policies

(c)

Recognition of income

Dividend income is recognised in the Statement of Total Return on the date that the right to receive payment

is established, which in the case of quoted securities is the ex-dividend date.

(d)

Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of

the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are

retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities

denominated in foreign currencies that are measured at fair value are retranslated to the functional currency

at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on

retranslation are recognised in the Statement of Total Return.

(e)

Financial derivatives

Financial derivatives include equity swaps which are entered into for the purpose of efficient portfolio

management and providing a return linked to the performance of the underlying assets in accordance with the

provisions of the Trust Deeds.

The financial derivatives outstanding at the balance sheet date are valued at the current market prices using

the “mark to market” method as applicable, based on counterparty quotations, and the resultant gains and

losses are taken up in the Statement of Total Return.

(f)

Distribution policy

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event,

an appropriate amount will be transferred to a distribution account to be paid on the distribution date. This

amount shall not be treated as part of the property of the Fund. The distribution is recognised when the

obligation to pay is established.

3 Taxation

The Fund is a designated unit trust under the Singapore Income Tax Act (Chapter 134). As a result, the

following income will not be taxed at the Fund level:

(i)

(ii)

(iii)

Gains or profits derived from Singapore or elsewhere from the disposal of securities;

Interest (other than interest for which Singapore tax has been withheld); and

Dividends derived from outside Singapore and received in Singapore.

4 Distribution

The Manager has not proposed any distribution for the period from 1 January 2011 to 4 October 2011 (date

of termination) (2010: Nil).

99


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

5 Cash and bank balances

4 October

2011 (date of

termination) 2010

S$ S$

Cash and bank balances 2,900,576 1,107,148

The bank balances are placed with a bank which is a related company of the Trustee.

6 Margin accounts with brokers

4 October

2011 (date of

termination) 31 December 2010

S$ S$

Margin accounts with brokers – 18

Margin accounts represent the margin deposit amounts held with brokers.

7 Payables

4 October

2011 (date of

termination) 31 December 2010

S$ S$

Amount payable for cancellation of units 2,871,870 107,429

Accrued expenses 28,706 32,538

2,900,576 139,967

100


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

8 Net assets attributable to unitholders

For the financial

period from

1 January 2011

to 4 October

2011 (date of

termination)

Year ended

31 December 2010

S$ S$

At beginning of the period/year 12,911,684 19,844,208

Operations

Change in net assets attributable to unitholders resulting from

operations (778,126) (1,036,578)

Unitholders’ contributions/(withdrawals)

Creation of units 716,959 197,958

Cancellation of units (12,850,517) (6,093,904)

Change in net assets attributable to unitholders resulting from net

creation and cancellation of units (12,133,558) (5,895,946)

Total (decrease) in net assets attributable to unitholders (12,911,684) (6,932,524)

At end of the period/year – 12,911,684

Units in issue (note 9) – 14,512,528

Net assets attributable to unitholders per unit – 0.89

9 Units in issue

For the financial

period from

1 January 2011

to 4 October

2011 (date of

termination)

Units

Year ended

31 December 2010

Units

Units at beginning of the period/year 14,512,528 21,052,722

Units created 799,396 220,857

Units cancelled (15,311,924) (6,761,051)

Units at end of the period/year – 14,512,528

101


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

10 Related party transactions

(a)

(b)

In the normal course of the business of the Fund, trustee fees and accounting and valuation fees have been

paid or are payable to the Trustee and management fees have been paid or are payable to the Managers

respectively as noted in the Statement of Total Return. The Fund has also carried out transactions which

include bank services with the bank holding company of the Trustee in the normal course of business.

Transactions with related parties were at terms agreed between the parties and within the provisions of the

Deed of Trust.

As at 4 October 2011 (date of termination), the Fund maintained with the HSBC Group the following bank balances:

4 October

2011 (date of

termination) 31 December 2010

S$ S$

Current account 2,900,576 1,107,148

11 Financial risk management

The Fund’s activities expose it to a variety of financial risk (including currency risk, fair value risk, interest

rate risk and price risk), credit risk and liquidity risk. The Fund’s overall risk management programme seeks

to minimise potential adverse effects on the Fund’s financial performance. The Fund may use financial

futures contracts, financial options contracts and/or currency forward contracts subject to the terms of the

Trust Deed to moderate certain risk exposures. Specific guidelines on exposures to individual securities and

certain industries are in place for the Fund at any time as part of the overall financial risk management to

reduce the Fund’s risk exposures.

The Fund’s assets principally consist of financial instruments such as fixed income instruments, swaps and

cash. They are held in accordance with the published investment policies of the Fund. The allocation of

assets between the various types of investments is determined by the Manager to achieve their investment

objectives.

Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part,

under a contract.

Concentrations of credit risk are minimised primarily by:

- ensuring counterparties, together with the respective credit limits, are approved,

- ensuring that transactions are undertaken with a large number of counterparties, and

- ensuring that the majority of transactions are undertaken on recognised exchanges.

As such, the Fund does not have a concentration of non-bank credit risk that arises from an exposure to a

single counterparty. Furthermore, the Fund does not have a material exposure to group of counterparties

which are expected to be affected similarly by changes in economic or other conditions.

The Fund adopts the policy of dealing with approved financial institutions and other counterparties with high

credit ratings.

Credit risk also arises from cash and cash equivalents and derivative positions held with financial

institutions. The table below summarises the credit rating of banks and custodians in which the Fund’s noninvestment

assets are held as at 4 October 2011 (date of termination) and 31 December 2010.

102


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

11 Financial risk management (continued)

As at 4 October 2011 (date of termination)

Amount

S$

Credit

rating

Source of credit

rating

Bank

The Hongkong and Shanghai Banking

Corporation Limited 2,900,576 Aa1 Moody’s

As at 31 December 2010

Bank

The Hongkong and Shanghai Banking

Corporation Limited 1,107,148 Aa1 Moody’s

Margin accounts with broker

UBS 18 Aa3 Moody’s

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets.

Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in settling a liability, including a redemption

request.

The Fund is exposed to daily cash redemption of units in the Fund. The Fund invests the majority of its

assets in investments that are traded in an active market and can be readily disposed of. Investments which

are neither listed nor quoted are restricted to a maximum of 10% of the net assets value.

In accordance with the Fund’s policies, the Manager monitors the Fund’s liquidity position on a daily basis,

and a risk oversight committee reviews them on a regular basis. The Fund manager also has the option

to limit redemption orders to 10% of the net assets value, with the approval of the Trustee. In this event,

the limitation will apply pro rata so that all unitholders of the relevant class or classes wishing to redeem

units in that Fund on that dealing day will redeem the same proportion by value of such units, and units not

redeemed will be carried forward for redemption, subject to the same limitation, on the next dealing day.

The table below analyses the Fund’s financial liabilities and net settled derivative financial liabilities into

relevant maturity groupings based on the remaining period at the balance sheet date to the contractual

maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within 12

months equal their carrying balances, as the impact of discounting is not significant.

103


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

11 Financial risk management (continued)

As at 4 October 2011 (date of

termination)

Less than 3 3 months to 1

months year 1 to 5 years Above 5 years

S$ S$ S$ S$

Payables 2,900,576 – – –

As at 31 December 2010

Payables 139,967 – – –

Net assets attributable to unitholders 12,911,684 – – –

All net assets attributable to unitholders are classified within the less than 3 months category, regardless of

when redemptions might occur.

Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates,

including observable variables such as interest rates, credit spreads, exchange rates, and others that may be

only indirectly observable such as volatilities and correlations. Market risk includes such factors as changes

in economic environment, consumption pattern and investor’s expectation etc. which may have significant

impact on the value of the investments. The Fund’s investments are substantially dependent on changes

in market prices. The Fund’s investments are monitored by the Manager on a regular basis so as to assess

changes in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of

investments, events beyond reasonable control of the Manager could affect the prices of the underlying

investments and hence the asset value of the Fund. Guidelines are set to reduce the Fund’s risk exposures to

market volatility such as diversifying the portfolio by investing across various geographies, alternatively, the

Fund may be hedged using derivative strategies.

The Fund distinguishes market risk as follows:

- Foreign exchange risk

- Interest rate risk

- Other price risk

Foreign exchange risk

The Fund has securities denominated in currencies other than Singapore dollars and the Fund may be

affected favourably or unfavourably by exchange rate regulators or changes in the exchange rates between

the Singapore dollar and such other currencies. The Fund may enter into foreign currency contracts

designed to either hedge some or all of this exposure, or alternatively increase exposure to preferred foreign

currencies.

104


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

11 Financial risk management (continued)

The table below summarises the exposure to foreign currency risks for the Fund.

4 October

2011 (date of

termination) 31 December 2010

USD

USD

S$ S$

Assets

Portfolio of investments – 52,284

Cash and bank balances – 164,670

Margin accounts with brokers – 18

Total assets – 216,972

Liabilities

Payables – 179

Total liabilities – 179

Net exposure – 216,793

The following table shows the Fund’s sensitivity to foreign currency exposure should those currencies

increase by 2% against Singapore dollars with all other variables held constant.

Currency rate rise

by 2%

Currency

Increase in net assets attributable to

unitholders

4 October

2011 (date of

termination) 31 December 2010

S$ S$

USD – 4,336

A weakening of the above currency against the Singapore dollar at 31 December would have had the equal

but opposite effect on the above currencies to the amount shown above, on the basis that all other variables

remain constant.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market

interest rates.

105


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

11 Financial risk management (continued)

As the Fund may invest in debt securities whose value is driven significantly by changes in interest rates, the

Fund is subject to interest rate risk. When interest rates rise, the value of previously acquired debt securities

will normally fall because new debt securities acquired will pay a higher rate of interest. In contrast, if

interest rates fall, then the value of the previously acquired debt securities will normally rise. The Manager

will regularly assess the economic condition, monitor changes in interest rates outlook and take appropriate

measures accordingly to control the impact of interest rate risk. In a rising interest rate environment, the

Fund will acquire debts with a shorter maturity profile to minimise the negative impact to the portfolio.

The table below summarises the Fund’s exposure to interest rate risks. They include the Fund’s assets and

trading liabilities at fair value, categorised by the earlier of contractual re-pricing or maturity dates. All

variable rate financial instruments are reset within a month.

As at 4 October 2011 (date of termination)

Non-interest

Variable rates Fixed rates bearing Total

S$ S$ S$ S$

Assets

Cash and bank balances 2,900,576 – – 2,900,576

Total assets 2,900,576 – – 2,900,576

Liabilities

Payables – – 2,900,576 2,900,576

Total liabilities – – 2,900,576 2,900,576

31 December 2010

Assets

Portfolio of investments – 11,892,201 52,284 11,944,485

Cash and bank balances 1,107,148 – – 1,107,148

Margin accounts with brokers – – 18 18

Total assets 1,107,148 11,892,201 52,302 13,015,651

Liabilities

Payables – – 139,967 139,967

Net assets attributable to unitholders – – 12,911,684 12,911,684

Total liabilities – – 13,051,651 13,051,651

106


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

11 Financial risk management (continued)

As at 4 October 2011, should interest rates have risen by 50 basis points (“bps”) (2010: 50 bps) with all other

variables remaining constant, the decrease in net assets attributable to unitholders for the year would be as

follows:

Benchmark components

Interest rates rise by

50 bps

Decrease in net assets attributable to

unitholders

4 October

2011 (date of

termination) 31 December 2010

S$ S$

LIBOR (USD) and SIBOR – 83,849

A decrease in interest rate at 4 October 2011 and 31 December 2010 would have had the equal but opposite

effect in the net assets attributable to unitholders to the amount shown above, on the basis that all other

variables remain constant.

Other price risk

As the Fund invests in fixed income instruments and swaps, which are unquoted, any price risk would be

covered as part of interest rate risk. There is no other price risk.

Fair values

At 4 October 2011 and 31 December 2010, fair values of assets and liabilities approximate their carrying

values on the Balance Sheet.

Capital management

The Fund’s capital is represented by the net assets attributable to unitholders.

The units in issue provide an unitholder with the right to require redemption for cash at a value proportionate

to the unitholder’s share in the Fund’s net assets and are classified as liabilities. The Fund’s objectives in

managing the units in issue are to ensure a stable base to maximise returns to all investors, and to manage

liquidity risk arising from redemptions. The Fund’s management of the liquidity risk arising from units in

issue is discussed under liquidity risk.

107


Allianz Global Investors Premier Funds – AllianzGI Choice Equity Fund

Notes to the Financial Statements

12 Financial ratios

For the financial

period from

1 January 2011

to 4 October

2011 (date of

termination)

Year ended

31 December 2010

% %

Expense ratio (including performance fees) (Note 1) 2.16 1.91

Expense ratio (excluding performance fees) (Note 1) 2.16 1.91

Portfolio turnover ratio (Note 2) 26.79 139.18

Note 1 The expense ratio is calculated in accordance to the IMAS guidelines on the disclosure of expense ratios dated 25 May 2005.

Interest expense arising on bank lending and other loans to the Fund, brokerage and other transaction costs, foreign exchange

gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or pricing out

of income received are not included in the expense ratios.

Note 2 The portfolio turnover ratio is calculated in accordance with the formula stated in the “Code on Collective Investment

Schemes”.

108


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Report of the Trustee

The Trustee is under a duty to take into custody and hold the assets of Allianz Global Investors Premier Funds

AllianzGI Enhanced Income & Growth Fund (the “Fund”) in trust for the unitholders. In accordance with the

Securities and Futures Act (Chapter 289), its subsidiary legislation and the Code on Collective Investment Schemes

(collectively referred to as the “laws and regulations”), the Trustee shall monitor the activities of the Manager for

compliance with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed and

Supplemental Deeds in each annual accounting period and report thereon to unitholders in an annual report which

shall contain the matters prescribed by the laws and regulations as well as the recommendations of Statement of

Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified

Public Accountants of Singapore and the Trust Deed and Supplemental Deeds.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the period

covered by these financial statements, set out on pages 112 to 124, comprising the Statement of Total Return,

Balance Sheet, Portfolio Statement and Notes to the Financial Statements, in accordance with the limitations

imposed on the investment and borrowing powers set out in the Trust Deed and Supplemental Deeds, laws and

regulations and otherwise in accordance with the provisions of the Trust Deeds and Supplemental Deeds.

For and on behalf of the Trustee

HSBC Institutional Trust Services (Singapore) Limited

────────────────────

Authorised signatory

Singapore

[dateofsigning]

109


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Statement by the Managers

In the opinion of the directors of Allianz Global Investors Singapore Limited, the accompanying financial

statements set out on pages 112 to 124, comprising the Statement of Total Return, Balance Sheet, Portfolio

Statement and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the

financial position of the Fund as at 1 August 2011 (date of termination), and the total return for the period from

1 January 2011 to 1 August 2011 (date of termination), in accordance with the recommendations of Statement of

Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified

Public Accountants of Singapore. At the date of this statement, there are reasonable grounds to believe that the Fund

will be able to meet its financial obligations as and when they materialise.

For and on behalf of Directors of

Allianz Global Investors Singapore Limited

────────────────────

Director

Singapore

[dateofsigning]

110


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Independent Auditors’ Report to the Unitholders of

Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

(Constituted under a Trust Deed in the Republic of Singapore)

We have audited the financial statements of Allianz Global Investors Premier Funds – AllianzGI Enhanced Income &

Growth Fund (the “Fund”), which comprise the Statement of Total Return for the period from 1 January 2011 to 1 August

2011 (date of termination), the Balance Sheet and Portfolio Statement as at 1 August 2011 (date of termination), and a

summary of significant accounting policies and other explanatory information, as set out on pages 112 to 124.

Manager’s responsibility for the financial statements

The Manager of the Fund is responsible for the preparation and fair presentation of these financial statements in

accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework

for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore, and for such internal control as

the Manager of the Fund determines is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements

are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of

material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the Fund’s internal controls. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of

the Fund, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at

1 August 2011 (date of termination) and the total return of the Fund for the period from 1 January 2011 to 1 August 2011

(date of termination), in accordance with the recommendations of Statement of Recommended Accounting Practice 7

“Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore.

Emphasis of matter

Without qualifying our opinion, we draw attention to note 2 of the financial statements which states that, in

accordance with the provisions of the Trust Deed, the Fund was terminated on 1 August 2011. Accordingly, the

Manager of the Fund has prepared the financial statements on the basis that this fund is no longer a going concern.

Assets have been recorded at amounts at which they are expected to be realised and liabilities at amounts at which

they are expected to be eventually settled.

KPMG LLP

Public Accountants and

Certified Public Accountants

Singapore

[dateofsigning]

111


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Statement of Total Return

For the financial period from 1 January 2011 to 1 August 2011 (date of termination)

Note

For the financial

period from

1 January 2011

to 1 August

2011 (date of

termination)

Year ended

31 December 2010

S$ S$

Income – –

Less: Expenses

Audit fees 9,686 8,039

Management fees (351) (597)

Other expenses 12,812 12,412

Registrar fees 8,947 15,735

Trustee fees 4,377 7,500

Valuation fees 4,377 7,500

39,848 50,589

Net loss 39,848 (50,589)

Net gains/(losses) on investments

Net realised gains on investments 30,461 982,698

Net change in fair value of investments – (450,122)

Net gains on investments 30,461 532,576

Total (deficit)/return for the period/year before income tax (9,387) 481,987

Less: Income tax 3 – –

Total (deficit)/return for the period/year before distributions (9,387) 481,987

Less: Distributions 4 – (1,076,353)

Total deficit for the period/year (9,387) (594,366)

The accompanying notes form an integral part of these financial statements.

112


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Balance Sheet

As at 1 August 2011 (date of termination)

Note

1 August

2011 (date of

termination) 31 December 2010

S$ S$

Assets

Portfolio of investments – 3,301,213

Receivables 5 1,178 4,948

Cash and bank balances 6 372,273 223,677

Total assets 373,451 3,529,838

Liabilities

Payables 7 373,451 64,012

Net assets attributable to unitholders 8 – 3,465,826

Total liabilities 373,451 3,529,838

The accompanying notes form an integral part of these financial statements.

113


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Portfolio Statement

As at 1 August 2011 (date of termination)

Primary – By Geography

Percentage of

total net assets

attributable to

unitholders at

Percentage of

total net assets

attributable to

unitholders at

Fair value at

1/8/2011 1/8/2011 31/12/2010

S$ % %

Summary

Quoted fund

Ireland – – 87.88

– – 87.88

Unquoted option

Call option – – 7.37

Portfolio of investments – – 95.25

Other net assets – – 4.75

Net assets attributable to unitholders – – 100.00

Secondary – By Industry

As at 1 August 2011 (date of termination), all investments have been sold.

The accompanying notes form an integral part of these financial statements.

114


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

These notes form an integral part of the financial statements.

1 Domicile and activities

Allianz Global Investors Premier Funds is a Singapore umbrella fund constituted by a Trust Deed dated

27 November 1998 and Supplemental Deeds thereon (hereinafter referred to as “Trust Deeds”) between

Allianz Global Investors Singapore Limited (“the Manager”) and HSBC Institutional Trust Services

(Singapore) Limited (“the Trustee”). The Trust Deeds are governed by the laws of the Republic of Singapore.

The umbrella fund comprises five separate and distinct sub-funds, namely the RCM Global High Payout

Fund, RCM Global Twin-Focus Fund, AllianzGI Choice Equity Fund, AllianzGI Enhanced Income &

Growth Fund and AllianzGI US High Yield Fund. Allianz Enhanced Income & Growth Fund and AllianzGI

Choice Equity Fund were terminated on 1 August 2011 (date of termination) and 4 October 2011 (date of

termination), respectively. The financial statements of AllianzGI Enhanced Income & Growth Fund (“the

Fund”) presented in this report are intended for inclusion in the Annual Report of the umbrella fund.

The Fund seeks to maximise total return over the medium to long-term by investing primarily into a

diversified portfolio of fixed income securities. The Fund was first offered for sale in Singapore on

11 December 2007.

Allianz Global Investors Premier Funds - AllianzGI Enhanced Income & Growth Fund was terminated on

1 August 2011 (date of termination) on which date all investments were liquidated.

2 Significant accounting policies

(a)

Basis of financial statements preparation

In accordance with the provisions of the Trust Deed, the Fund has been terminated on 1 August 2011 (date

of termination). Accordingly, the Manager of the Fund has prepared the financial statements on the basis that

the Fund is no longer a going concern. Assets have been recorded at amounts that they are expected to be

realised and liabilities at amounts that they are expected to be eventually settled.

The financial statements are presented in Singapore dollars, which is the Fund’s functional currency.

The financial statements are prepared on the historical cost basis, as modified by the revaluation of quoted

investments, and in accordance with the Statement of Recommended Accounting Practice 7 “Reporting

Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore (“ICPAS”).

For the purposes of preparation of these financial statements, the basis used for calculating the ratio of

expenses and portfolio turnover ratio are in accordance with the guidelines issued by the Investment

Management Association of Singapore and the Code on Collective Investment Schemes under the Securities

and Futures Act (Cap 289) respectively.

(b)

Basis of valuation of investments

Quoted investments are stated at fair value based on the quoted bid prices at the balance sheet date. The

market price for financial liabilities is based on the current quoted ask price. Unrealised gains/losses on

investments are represented by the difference between the fair value and the carrying value of investments

and are recognised in the Statement of Total Return.

Realised gains and losses upon disposal of investments are computed on the basis of the difference between

the weighted average cost and the selling price of investments on trade date and are taken to the Statement of

Total Return.

115


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

2 Significant accounting policies (continued)

(c)

Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of

the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are

retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities

denominated in foreign currencies that are measured at fair value are retranslated to the functional currency

at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on

retranslation are recognised in the Statement of Total Return.

(d)

Financial derivatives

Financial derivatives include a call option which is entered into for the purpose of efficient portfolio

management in accordance with the provisions of the Trust Deeds.

The financial derivatives outstanding at the balance sheet date are valued at the current market prices using

the “mark to market” method as applicable, based on counterparty quotations, and the resultant gains and

losses are taken up in the Statement of Total Return.

(e)

Distribution policy

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event,

an appropriate amount will be transferred to a distribution account to be paid on the distribution date. This

amount shall not be treated as part of the property of the Fund. The distribution is recognised when the

obligation to pay is established.

3 Taxation

The Fund is a designated unit trust under the Singapore Income Tax Act (Chapter 134). As a result, the

following income will not be taxed at the Fund level:

(i)

(ii)

(iii)

Gains or profits derived from Singapore or elsewhere from the disposal of securities;

Interest (other than interest for which Singapore tax has been withheld); and

Dividends derived from outside Singapore and received in Singapore.

4 Distribution

The Manager has not proposed any distribution for the period from 1 January 2011 to 1 August 2011 (date of

termination).

The following dividends were announced and paid by the Fund in 2010:

Entitlement cut

Distributions

off date Payment date amount

S$

31 December 2010

Dividend at 2.65 cents per unit 31 December 2009 15 January 2010 162,607

Dividend at 4.05 cents per unit 31 March 2010 14 April 2010 282,684

Dividend at 2.75 cents per unit 30 June 2010 14 July 2010 172,791

Dividend at 4.60 cents per unit 30 September 2010 14 October 2010 458,271

1,076,353

116


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

5 Receivables

1 August

2011 (date of

termination) 31 December 2010

S$ S$

Amount receivable for creation of units – 1,517

Other receivables 1,178 3,431

1,178 4,948

6 Cash and bank balances

1 August

2011 (date of

termination) 31 December 2010

S$ S$

Cash and bank balances 372,273 223,677

The bank balances are placed with a bank which is a related company of the Trustee.

7 Payables

1 August

2011 (date of

termination) 31 December 2010

S$ S$

Amount payable for cancellation of units 350,659 45,438

Accrued expenses 22,792 18,574

373,451 64,012

117


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

8 Net assets attributable to unitholders

For the financial

period from

1 January 2011 to

1 August

2011 (date of Year ended

termination) 31 December 2010

S$ S$

At beginning of the period/year 3,465,826 6,463,424

Operations

Change in net assets attributable to unitholders resulting from

operations (9,387) (594,366)

Unitholders’ contributions/(withdrawals)

Creation of units – 8,059,962

Cancellation of units (3,465,439) (10,463,194)

Change in net assets attributable to unitholders resulting from net

creation and cancellation of units (3,456,439) (2,403,232)

Total increase in net assets attributable to unitholders (3,465,826) (2,997,598)

At end of the period/year – 3,465,826

Units in issue (note 9) – 3,549,960

Net assets attributable to unitholders per unit – 0.98

9 Units in issue

For the financial

period from

1 January 2011 to

1 August

2011 (date of Year ended

termination) 31 December 2010

Units

Units

Units at beginning of the period/year 3,549,960 6,136,112

Units created – 7,561,186

Units cancelled (3,549,960) (10,147,338)

Units at end of the period/year – 3,549,960

118


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

10 Related party transactions

(a)

(b)

The Managers of the Fund is Allianz Global Investors Singapore Limited. The Trustee is HSBC Institutional

Trust Services (Singapore) Limited, a subsidiary of the HSBC Group. Management fees are paid to the

Manager. The trustee fees, registrar fees and valuation fees charged by, and interest earned on deposits with,

the HSBC Group are shown in the Statement of Total Return.

As at 1 August 2011 (date of termination), the Fund maintained with the HSBC Group the following bank balances:

1 August

2011 (date of

termination) 31 December 2010

S$ S$

Current account 372,273 223,677

11 Financial risk management

The Fund invests in 2 PIMCO funds, and an option that is linked to the performance of the said PIMCO

funds. The Fund, therefore, will be exposed to a variety of financial risk (including currency risk, interest

rate risk and price risk), credit risk and liquidity risk linked to the 2 PIMCO funds. The Fund’s overall risk

management programme seeks to minimise potential adverse effects on the Fund’s financial performance.

Risk mitigating measures include using financial options contracts to moderate certain risk exposures and/or

monitoring constantly the performance of PIMCO funds and rebalancing it as the Manager deems fit.

The Fund’s assets principally consist of financial instruments such as fixed income instruments and cash.

They are held in accordance with the published investment policies of the Fund. The allocation of assets

between the various types of investments is determined by the Manager to achieve their investment

objectives.

Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part,

under a contract.

Concentrations of credit risk are minimised primarily by:

- ensuring counterparties, together with the respective credit limits, are approved,

- ensuring that transactions are undertaken with a large number of counterparties, and

- ensuring that the majority of transactions are undertaken on recognised exchanges.

As such, the Fund does not have a concentration of non-bank credit risk that arises from an exposure to a

single counterparty. Furthermore, the Fund does not have a material exposure to group of counterparties

which are expected to be affected similarly by changes in economic or other conditions.

The Fund adopts the policy of dealing with approved financial institutions and other counterparties with high

credit ratings.

Credit risk also arises from cash and cash equivalents and derivative positions held with financial institutions.

119


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

11 Financial risk management (continued)

The table below summarises the credit rating of banks and custodians in which the Fund’s non-investment

assets are held as at 1 August 2011 (date of termination) and 31 December 2010.

As at 1 August 2011 (date of termination)

Carrying Amount

S$

Credit

rating

Source of credit

rating

Bank

The Hongkong and Shanghai Banking

Corporation Limited 372,273 Aa1 Moody’s

As at 31 December 2010

Bank

The Hongkong and Shanghai Banking

Corporation Limited 223,677 Aa1 Moody’s

OTC Option Counterparty

Credit Suisse First Boston 255,370 Aa1 Moody’s

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets.

Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in settling a liability, including a redemption

request.

The Fund is exposed to daily cash redemption of units in the Fund. The Fund invests in units of the 2

PIMCO funds that allows for daily redemption/injection. Majority of assets in the 2 PIMCO funds have

investments that are traded in an active market and can be readily disposed of. However, there may be assets

that do not trade readily. Hence, there could be a risk that such assets cannot be sold or that they could only

be sold at a significant discount to the purchase price.

In accordance with the Fund’s policies, the Manager monitors the Fund’s liquidity position on a daily basis,

and a risk oversight committee reviews them on a regular basis. The Fund manager also has the option

to limit redemption orders to 10% of the net assets value, with the approval of the Trustee. In this event,

the limitation will apply pro rata so that all unitholders of the relevant class or classes wishing to redeem

units in that Fund on that dealing day will redeem the same proportion by value of such units, and units not

redeemed will be carried forward for redemption, subject to the same limitation, on the next dealing day.

The table below analyse the Fund’s financial liabilities and net settled derivative financial liabilities into

relevant maturity groupings based on the remaining period at the balance sheet date to the contractual

maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within 12

months equal their carrying balances, as the impact of discounting is not significant.

120


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

11 Financial risk management (continued)

As at 1 August 2011 (date of termination)

Less than 3 3 months to 1 Above

months

year

5 years

S$ S$ S$

Payables 373,451 – –

As at 31 December 2010

Payables 64,012 – –

Net assets attributable to unitholders 3,465,826 – –

All net assets attributable to unitholders are classified within the less than 3 months category, regardless of

when redemptions might occur.

Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates,

including observable variables such as interest rates, credit spreads, exchange rates, and others that may be

only indirectly observable such as volatilities and correlations. Market risk includes such factors as changes

in economic environment, consumption pattern and investor’s expectation etc. which may have significant

impact on the value of the investments. The Fund’s investments are substantially dependent on changes

in market prices. The Fund’s investments are monitored by the Manager on a regular basis so as to assess

changes in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of

investments, events beyond reasonable control of the Manager could affect the prices of the underlying

investments and hence the asset value of the Fund. Guidelines are set to reduce the Fund’s risk exposures to

market volatility such as diversifying the portfolio by investing across various geographies, alternatively, the

Fund may be hedged using derivative strategies.

The Fund distinguishes market risk as follows:

- Foreign exchange risk

- Interest rate risk

- Other price risk

Foreign exchange risk

The majority of the Fund’s financial assets and liabilities are denominated in Singapore dollars.

Consequently, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing

levels of foreign currency rates.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market

interest rates.

121


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

11 Financial risk management (continued)

The table below summarises the Fund’s exposure to interest rate risks. They include the Fund’s assets and

trading liabilities at fair value, categorised by the earlier of contractual re-pricing or maturity dates. All

variable rate financial instruments are reset within a month.

As at 1 August 2011 (date of termination)

Non-interest

Variable rates bearing

Total

S$ S$ S$

Assets

Receivables – 1,178 1,178

Cash and bank balances 372,273 – 372,273

Total assets 372,273 1,178 373,451

Liabilities

Payables – 373,451 373,451

Total liabilities – 373,451 373,451

As at 31 December 2010

Assets

Portfolio of investments – 3,301,213 3,301,213

Receivables – 4,948 4,948

Cash and bank balances 223,677 – 223,677

Total assets 223,677 3,306,161 3,529,838

Liabilities

Payables – 64,012 64,012

Net assets attributable to unitholders – 3,465,826 3,465,826

Total liabilities – 3,529,838 3,529,838

122


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

11 Financial risk management (continued)

As at 1 August 2011 (date of termination), should interest rates have risen by 50 basis points (“bps”) (2010:

50 bps) with all other variables remaining constant, the decrease in net assets attributable to unitholders for

the year would be as follows:

Benchmark components

Interest rates rise by

50 bps

Decrease in net assets attributable to

unitholders

1 August

2011 (date of

termination) 31 December 2010

S$ S$

SIBOR – 1,118

A decrease in interest rate at 1 August 2011 (date of termination) and 31 December 2010 would have had the

equal but opposite effect in the net assets attributable to unitholders to the amount shown above, on the basis

that all other variables remain constant.

Other price risk

The table below summarises the impact of increases from the Fund’s underlying investments in equities on

the Fund’s net assets attributable to unitholders at 1 August 2011 (date of termination) and 31 December

2010. The analysis is based on the assumption that the index components within the benchmark increased

by a reasonable possible shift, with all other variables held constant and that the fair value of Fund’s

investments moved according to the historical correlation with the index.

Proxy as Benchmark of the Fund is the JP Morgan EMBI Global (SGD Hedged) and Barclays Capital US

Aggregate Index (SGD Hedged).

Benchmark components Benchmark increase by 10%

Increase in net assets attributable to

unitholders

1 August

2011 (date of

termination) 2010

S$ S$

50% of JP Morgan EMBI Global (SGD Hedged) and 50% Barclays

Capital US Aggregate Index (SGD Hedged) – 204,948

A decrease in benchmark at 1 August 2011 (date of termination) and 31 December 2010 would have had the

equal but opposite effect in the net assets attributable to unitholders to the amount shown above, on the basis

that all other variables remain constant.

Fair values

At 1 August 2011 (date of termination) and 31 December 2010, fair values of assets and liabilities

approximate their carrying values on the Balance Sheet.

123


Allianz Global Investors Premier Funds – AllianzGI Enhanced Income & Growth Fund

Notes to the Financial Statements

11 Financial risk management (continued)

Capital Management

The Fund’s capital is represented by the net assets attributable to unitholders.

The units in issue provide an unitholder with the right to require redemption for cash at a value proportionate

to the unitholder’s share in the Fund’s net assets and are classified as liabilities. The Fund’s objectives in

managing the units in issue are to ensure a stable base to maximise returns to all investors, and to manage

liquidity risk arising from redemptions. The Fund’s management of the liquidity risk arising from units in

issue is discussed under liquidity risk.

12 Financial ratios

For the financial

period from

1 January 2011 to

1 August

2011 (date of Year ended

termination) 31 December 2010

% %

Expense ratio (Note 1) 1.24 0.64

Portfolio turnover ratio (Note 2) 5.29 95.93

Note 1 The expense ratio is the sum of the feeder fund’s expense ratio and the underlying funds’ unaudited expense ratios. The

unaudited expense ratios of the underlying funds, Ireland registered funds, are provided by Allianz Global Investors Ireland

Ltd (“AllianzGI Ireland”). There is no requirement for the expense ratios of these Ireland registered funds to be published or

audited.

Interest expense arising on bank lending and other loans to the Fund, brokerage and other transaction costs, foreign exchange

gains/losses, tax deducted at source or arising out of income received, front or back end loads arising from the purchase and

sales of other schemes and distributions paid to unit-holders are not included in the expense ratios.

The Fund does not pay any performance fees in 2011 and 2010.

Note 2 The portfolio turnover ratio is calculated in accordance with the formula stated in the “Code on Collective Investment

Schemes”.

124


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Report of the Trustee

The Trustee is under a duty to take into custody and hold the assets of Allianz Global Investors Premier Funds

AllianzGI US High Yield Fund (the “Fund”) in trust for the unitholders. In accordance with the Securities and

Futures Act (Chapter 289), its subsidiary legislation and the Code on Collective Investment Schemes (collectively

referred to as the “laws and regulations”), the Trustee shall monitor the activities of the Manager for compliance

with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed and Supplemental

Deeds in each annual accounting period and report thereon to unitholders in an annual report which shall contain

the matters prescribed by the laws and regulations as well as the recommendations of Statement of Recommended

Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public

Accountants of Singapore and the Trust Deed and Supplemental Deeds.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the period

covered by these financial statements, set out on pages 128 to 141, comprising the Statement of Total Return,

Balance Sheet, Portfolio Statement and Notes to the Financial Statements, in accordance with the limitations

imposed on the investment and borrowing powers set out in the Trust Deed and Supplemental Deeds, laws and

regulations and otherwise in accordance with the provisions of the Trust Deeds and Supplemental Deeds.

For and on behalf of the Trustee

HSBC Institutional Trust Services (Singapore) Limited

────────────────────

Authorised signatory

Singapore

[dateofsigning]

125


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Statement by the Managers

In the opinion of the directors of Allianz Global Investors Singapore Limited, the accompanying financial

statements set out on pages 128 to 141, comprising the Statement of Total Return, Balance Sheet, Portfolio

Statement and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the

financial position of the Fund as at 31 December 2011, and the total return for the year then ended, in accordance

with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit

Trusts” issued by the Institute of Certified Public Accountants of Singapore. At the date of this statement, there

are reasonable grounds to believe that the Fund will be able to meet its financial obligations as and when they

materialise.

For and on behalf of Directors of

Allianz Global Investors Singapore Limited

────────────────────

Director

Singapore

[dateofsigning]

126


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Independent Auditors’ Report to the Unitholders of

Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

(Constituted under a Trust Deed in the Republic of Singapore)

We have audited the financial statements of Allianz Global Investors Premier Funds – AllianzGI US High Yield

Fund (the “Fund”), which comprise the Statement of Total Return for the year ended 31 December 2011, the

Balance Sheet and Portfolio Statement as at 31 December 2011, and a summary of significant accounting policies

and other explanatory information, as set out on pages 128 to 141.

Manager’s responsibility for the financial statements

The Manager of the Fund is responsible for the preparation and fair presentation of these financial statements in

accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework

for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore, and for such internal control as

the Manager of the Fund determines is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements

are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of

material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the Fund’s internal controls. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of

the Fund, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as

at 31 December 2011 and the total return of the Fund for the year ended 31 December 2011 in accordance with the

recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts”

issued by the Institute of Certified Public Accountants of Singapore.

KPMG LLP

Public Accountants and

Certified Public Accountants

Singapore

[dateofsigning]

127


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Statement of Total Return

For the financial year ended 31 December 2011

Note

Year ended

31 December

2011

For the financial

period from

30 April

2010 (date of

constitution) to

31 December

2010

S$ S$

Income – –

Less: Expenses

Audit fees 12,482 3,019

Management fees (net of rebate) 117,516 21,928

Other expenses 17,694 4,345

Preliminary expenses – 12,380

Registrar fees 17,091 9,320

Trustee fees 10,000 4,165

Valuation fees 14,375 3,125

189,158 58,282

Net loss (189,158) (58,282)

Net gains/(losses) on investments

Net realised gains on investments 50,469 28,051

Net change in fair value on investments 1,216,884 85,689

Net realised gains/(losses) on financial derivatives (300,344) 11,333

Net change in fair value of financial derivatives (137,200) 332,941

Net foreign exchange losses (401,302) (6,733)

Net gains on investments 428,507 451,281

Total return/(deficit) for the year/period before income tax 239,349 392,999

Less: Income tax 3 – –

Total return for the year/period before distribution 239,349 392,999

Less: Distribution 4 (1,165,269) –

Total (deficit)/return for the year/period (925,920) 392,999

The accompanying notes form an integral part of these financial statements.

128


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Balance Sheet

As at 31 December 2011

Note 2011 2010

S$ S$

Assets

Portfolio of investments 22,838,004 9,074,264

Receivables 5 36,052 48,096

Cash and bank balances 6 262,777 2,447,588

Foreign exchange financial derivatives 7 – 332,941

Total assets 23,136,833 11,902,889

Liabilities

Payables 8 43,612 191,713

Due to brokers – 1,537,260

Foreign exchange financial derivatives 7 137,200 –

Net assets attributable to unitholders 9 22,956,021 10,173,916

Total liabilities 23,136,833 11,902,889

The accompanying notes form an integral part of these financial statements.

129


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Portfolio Statement

As at 31 December 2011

Primary – By Geography

Quoted fund

Holdings at Fair value at

Percentage of total net assets

attributable to unitholders at

31/12/2011 31/12/2011 31/12/2011 31/12/2010

S$ % %

Luxembourg

Allianz Global Investors Fund -

Allianz US High Yield 15,507 22,838,004 99.49 89.19

Portfolio of investments 22,838,004 99.49 89.19

Other net assets 118,017 0.51 10.81

Net assets attributable to unitholders 22,956,021 100.00 100.00

Secondary - By Industry

As the Fund invests wholly into an offshore mutual fund which is domiciled in Luxembourg and denominated in US

Dollars, it is not meaningful to classify the investment by industry.

The accompanying notes form an integral part of these financial statements.

130


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

These notes form an integral part of the financial statements.

1 Domicile and activities

Allianz Global Investors Premier Funds is a Singapore umbrella fund constituted by a Trust Deed dated

27 November 1998 and Supplemental Deeds thereon (hereinafter referred to as “Trust Deeds”) between

Allianz Global Investors Singapore Limited (“the Manager”) and HSBC Institutional Trust Services

(Singapore) Limited (“the Trustee”). The Trust Deeds are governed by the laws of the Republic of Singapore.

The umbrella fund comprises five separate and distinct sub-funds, namely the RCM Global High Payout

Fund, RCM Global Twin-Focus Fund, AllianzGI Choice Equity Fund, AllianzGI Enhanced Income &

Growth Fund and AllianzGI US High Yield Fund. Allianz Enhanced Income & Growth Fund and AllianzGI

Choice Equity Fund were terminated on 1 August 2011 (date of termination) and 4 October 2011 (date of

termination), respectively. The financial statements of AllianzGI US High Yield Fund (“the Fund”) presented

in this report are intended for inclusion in the Annual Report of the umbrella fund.

The investment objective of the Fund is to achieve long term capital appreciation and income by investing

primarily in U.S. corporate bonds rated below investment grade. The Fund was first offered for sale in

Singapore on 30 April 2010.

2 Significant accounting policies

(a)

Basis of financial statements preparation

The financial statements are presented in Singapore dollars, which is the Fund’s functional currency.

The financial statements are prepared on the historical cost basis, as modified by the revaluation of quoted

investments, and in accordance with the Statement of Recommended Accounting Practice 7 “Reporting

Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore (“ICPAS”).

For the purposes of preparation of these financial statements, the basis used for calculating the ratio of

expenses and portfolio turnover ratio are in accordance with the guidelines issued by the Investment

Management Association of Singapore and the Code on Collective Investment Schemes under the Securities

and Futures Act (Cap 289) respectively.

(b)

Basis of valuation of investments

Quoted investments in mutual funds are stated at fair value based on the current market quoted net assets

value of the underlying funds at the balance sheet date. The market price for other quoted financial assets and

financial liabilities are based on the current quoted bid and ask price respectively. Unrealised gains/losses on

investments are represented by the difference between the fair value and the carrying value of investments

and are recognised in the Statement of Total Return.

Realised gains and losses upon disposal of investments are computed on the basis of the difference between

the weighted average cost and the selling price of investments on trade date and are taken to the Statement of

Total Return.

(c)

Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of

the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are

retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities

denominated in foreign currencies that are measured at fair value are retranslated to the functional currency

at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on

retranslation are recognised in the Statement of Total Return.

131


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

2 Significant accounting policies (continued)

(d)

Financial derivatives

Financial derivatives include foreign exchange contracts which are entered into for the purpose of efficient

portfolio management in accordance with the provisions of the Trust Deeds.

The financial derivatives outstanding at the balance sheet date are valued at the current market prices using

the “mark to market” method as applicable, based on counterparty quotations, and the resultant gains and

losses are taken up in the Statement of Total Return.

(e)

Distribution policy

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event,

an appropriate amount will be transferred to a distribution account to be paid on the distribution date. This

amount shall not be treated as part of the property of the Fund. The distribution is recognised when the

obligation to pay is established.

3 Taxation

The Fund is a designated unit trust under the Singapore Income Tax Act (Chapter 134). As a result, the

following income will not be taxed at the Fund level:

(i)

(ii)

(iii)

Gains or profits derived from Singapore or elsewhere from the disposal of securities;

Interest (other than interest for which Singapore tax has been withheld); and

Dividends derived from outside Singapore and received in Singapore.

4 Distribution

The following dividends were announced and paid by the Fund:

Entitlement cut

off date

Distributions

amount

Payment date

31 December 2011

Dividend at 3 cents per unit 31 December 2010 14 January 2011 290,225

Dividend at 18 cents per unit 31 March 2011 14 April 2011 233,367

Dividend at 18 cents per unit 30 June 2011 14 July 2011 287,736

Dividend at 18 cents per unit 30 September 2011 14 October 2011 353,941

1,165,269

On 3 January 2012, the following dividend was announced by the Fund. The dividend has not been

recognised at 31 December 2011.

Entitlement cut

off date

Payment date

Distributions

amount

$

Dividend at 18 cents per unit 30 December 2011 16 January 2012 415,845

The Manager has not proposed any distribution for the financial period from 30 April 2010 (date of

constitution) to 31 December 2010.

132


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

5 Receivables

2011 2010

S$ S$

Amount receivable from creation of units 25,021 29,776

Other receivables 11,031 18,320

36,052 48,096

6 Cash and bank balances

2011 2010

S$ S$

Cash and bank balances 262,777 2,447,588

The bank balances are placed with a bank which is a related company of the Trustee.

7 Financial derivative at fair value

Foreign exchange contracts

The table below sets out the analysed notional contract amounts and fair value of foreign exchange contracts.

These contracts were entered into with related companies of the Trustee.

The commitments under foreign exchange contracts due for settlement within one period are as follows:

Notional Fair value Fair value

amount assets liabilities

S$ S$ S$

As at 31 December 2011

Foreign exchange contracts: Forward 22,418,530 – 137,200

As at 31 December 2010

Foreign exchange contracts: Forward 8,938,252 332,941 –

The forward foreign exchange contracts’ maturity dates are 12 January 2012 and 17 January 2012

(31 December 2010: 7 February 2011, 14 February 2011, 24 February 2011, 7 March 2011, 8 March 2011,

21 March 2011, 29 March 2011, 1 April 2011, 8 April 2011, 18 May 2011, 17 June 2011 and 5 July 2011).

8 Payables

2011 2010

S$ S$

Amount payable for cancellation of units 1,203 172,925

Accrued expenses 42,409 18,788

43,612 191,713

133


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

9 Net assets attributable to unitholders

Year ended

31 December

2011

For the financial

period from

30 April

2010 (date of

constitution) to

31 December

2010

S$ S$

At beginning of the year/period 10,173,916 –

Operations

Change in net assets attributable to unitholders resulting from

operations (925,920) 392,999

Unitholders’ contributions/(withdrawals)

Creation of units 26,314,838 12,275,781

Cancellation of units (12,606,813) (2,494,864)

Change in net assets attributable to unitholders resulting from net

creation and cancellation of units 13,708,025 9,780,917

Total increase in net assets attributable to unitholders 12,782,105 10,173,916

At end of the year/period 22,956,021 10,173,916

Units in issue (note 10) 23,102,500 9,674,177

Net assets attributable to unitholders per unit 0.99 1.05

10 Units in issue

Year ended

31 December

2011

Units

For the financial

period from

30 April

2010 (date of

constitution) to

31 December

2010

Units

Units at beginning of the year/period 9,674,177 –

Units created 26,042,484 12,075,201

Units cancelled (12,614,161) (2,401,024)

Units at end of the year/period 23,102,500 9,674,177

134


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

11 Related party transactions

(a)

(b)

The Managers of the Fund is Allianz Global Investors Singapore Limited. The Trustee is HSBC Institutional

Trust Services (Singapore) Limited, a subsidiary of the HSBC Group. Management fees are paid to the

Manager. The trustee fees, registrar fees and valuation fees charged by, and interest earned on deposits with,

the HSBC Group are shown in the Statement of Total Return.

As at 31 December 2011 and 31 December 2010, the Fund maintained with the HSBC Group the following

bank balances:

2011 2010

Units

Units

Current account 262,777 2,447,588

12 Financial risk management

The Fund’s activities expose it to a variety of financial risk (including currency risk, fair value risk, interest

rate risk and price risk), credit risk and liquidity risk. The Fund’s overall risk management programme seeks

to minimise potential adverse effects on the Fund’s financial performance. The Fund may use financial

futures contracts, financial options contracts and/or currency forward contracts subject to the terms of the

Trust Deed to moderate certain risk exposures. Specific guidelines on exposures to individual securities and

certain industries are in place for Fund at any time as part of the overall financial risk management to reduce

the Fund’s risk exposures.

The Fund’s assets principally consist of financial instruments such as equity investments. They are held in

accordance with the published investment policies of the Fund. The allocation of assets between the various

types of investments is determined by the Manager to achieve their investment objectives.

Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part,

under a contract.

Concentrations of credit risk are minimised primarily by:

- ensuring counterparties, together with the respective credit limits, are approved,

- ensuring that transactions are undertaken with a large number of counterparties, and

- ensuring that the majority of transactions are undertaken on recognised exchanges.

As such, the Fund does not have a concentration of non-bank credit risk that arises from an exposure to a

single counterparty. Furthermore, the Fund does not have a material exposure to group of counterparties

which are expected to be affected similarly by changes in economic or other conditions.

The Fund adopts the policy of dealing with approved financial institutions and other counterparties with high

credit ratings.

All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default

is considered minimal, as delivery of securities is only made once the broker has received payment. Payment

is made on a purchase once the securities have been received by the broker. The trade will fail if either party

fails to meet its obligation.

Credit risk also arises from cash and cash equivalents and derivative positions held with financial institutions.

135


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

12 Financial risk management (continued)

The table below summarises the credit rating of banks and custodians in which the Fund’s non-investment

assets are held as at 31 December 2011 and 31 December 2010.

As at 31 December 2011

Amount

S$

Credit

rating

Source of

credit rating

Bank and Custodian

The Hongkong and Shanghai Banking

Corporation Limited 262,777 Aa1 Moody’s

As at 31 December 2010

Bank and Custodian

The Hongkong and Shanghai Banking

Corporation Limited 2,447,588 Aa1 Moody’s

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets.

Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in funding redemptions or liquidation

positions in a timely manner at a reasonable price. Liquidity risk exists when a particular investment

is difficult to purchase or sell. These circumstances could prevent the Fund from promptly liquidating

unfavourable positions and therefore resulting in losses to the Fund and corresponding decreases in the net

assets value per unit. The Manager manages liquidity risk by investing primarily in marketable securities.

In accordance with the Fund’s policies, the Manager monitors the Fund’s liquidity position on a daily basis,

and a risk oversight committee reviews them on a regular basis. The Fund manager also has the option

to limit redemption orders to 10% of the net assets value, with the approval of the Trustee. In this event,

the limitation will apply pro rata so that all unitholders of the relevant class or classes wishing to redeem

units in that Fund on that dealing day will redeem the same proportion by value of such units, and units not

redeemed will be carried forward for redemption, subject to the same limitation, on the next dealing day.

The table below analyses the Fund’s financial liabilities into relevant maturity groupings based on the

remaining period at the balance sheet date to the contractual maturity date. The amounts in the table are the

contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the

impact of discounting is not significant.

136


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

12 Financial risk management (continued)

As at 31 December 2011

Less than 3 months to Above

3 months 1 year

5 years

S$ S$ S$

Payables 43,612 – –

Foreign exchange financial derivatives 137,200 – –

Net assets attributable to unitholders 22,956,021 – –

As at 31 December 2010

Payables 191,713 – –

Due to brokers 1,537,260 – –

Net assets attributable to unitholders 10,173,916 – –

All net assets attributable to unitholders are classified within the less than 3 months category, regardless of

when redemptions might occur.

Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates,

including observable variables such as interest rates, credit spreads, exchange rates, and others that may be

only indirectly observable such as volatilities and correlations. Market risk includes such factors as changes

in economic environment, consumption pattern and investor’s expectation etc. which may have significant

impact on the value of the investments. The Fund’s investments are substantially dependent on changes

in market prices. The Fund’s investments are monitored by the Manager on a regular basis so as to assess

changes in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of

investments, events beyond reasonable control of the Manager could affect the prices of the underlying

investments and hence the asset value of the Fund. Guidelines are set to reduce the Fund’s risk exposures to

market volatility such as diversifying the portfolio by investing across various geographies, alternatively, the

Fund may be hedged using derivative strategies.

The Fund distinguishes market risk as follows:

- Foreign exchange risk

- Interest rate risk

- Other price risk

Foreign exchange risk

The Fund invests in underlying securities which are denominated in foreign currencies where the fluctuations

in the relevant exchange rates may have an impact on the income and value of the Fund.

Depending on market conditions, the Manager may hedge the foreign currency exposure of the Fund by

entering into one or more foreign exchange forward contracts and/or cross currency swap transactions.

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Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

12 Financial risk management (continued)

The table below summarises the exposure to foreign currency risks for the Fund.

As at 31 December 2011

2011 2010

USD

USD

S$ S$

Assets (excluding foreign exchange derivatives)

Portfolio of investments 22,838,004 9,074,264

Receivables 11,031 3,821

Cash and bank balances 1,068 980

Total assets 22,850,103 9,079,065

Liabilities (excluding foreign exchange derivatives)

Due to brokers – 1,537,260

Total liabilities – 1,537,260

Net 22,850,103 7,541,805

Less: Currency forwards (22,555,730) (8,605,311)

Net exposure 294,373 (1,063,506)

The following table show the Fund’s sensitivity to foreign currency exposure should those currencies

increase by 2% against Singapore dollars with all other variable held constant.

Benchmark components Currency rate rise by 2%

Currency

Decrease in net assets attributable to

unitholders

2011 2010

S$ S$

USD 5,887 (21,270)

A weakening of the above currency against the Singapore dollar at 31 December would have had the equal

but opposite effect on the above currencies to the amount shown above, on the basis that all other variables

remain constant.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market

interest rates.

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Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

12 Financial risk management (continued)

The table below summarises the Fund’s exposure to interest rate risks. They include the Fund’s assets and

trading liabilities at fair value, categorised by the earlier of contractual re-pricing or maturity dates. All

variable rate financial instruments are reset within a month.

31 December 2011

Variable

Non-interest

rates Fixed rates bearing Total

S$ S$ S$ S$

Assets

Portfolio of investments – – 22,838,004 22,838,004

Receivables – – 36,052 36,052

Cash and bank balances 262,777 – – 262,777

Total assets 262,777 – 22,874,056 23,136,833

Liabilities

Payables – – 43,612 43,612

Foreign exchange financial derivatives, at

– – 137,200 137,200

fair value

Net assets attributable to unitholders – – 22,956,021 22,956,021

Total liabilities – – 23,136,833 23,136,833

31 December 2010

Assets

Portfolio of investments – – 9,074,264 9,074,264

Receivables – – 48,096 48,096

Cash and bank balances 2,447,588 – – 2,447,588

Foreign exchange financial derivatives – – 332,941 332,941

Total assets 2,447,588 – 9,455,301 11,902,889

Liabilities

Payables – – 191,713 191,713

Due to brokers – – 1,537,260 1,537,260

Net assets attributable to unitholders – – 10,173,916 10,173,916

Total liabilities – – 11,902,889 11,902,889

139


Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

12 Financial risk management (continued)

As at 31 December 2011, should interest rates have risen by 50 basis points (“bps”) with all other variables

remaining constant, the decrease/increase in net assets attributable to unitholders for the period would be as

follows:

Benchmark components

Interest rates rise by 50bps

Decrease/Increase on net assets

attributable to unitholders

2011 2010

S$ S$

SIBOR 4 12,233

A decrease in interest rate at 31 December 2011 would have had the equal but opposite effect in the net

assets attributable to unitholders to the amount shown above, on the basis that all other variables remain

constant.

Other price risk

The table below summarises the impact of increases from the Fund’s underlying investments in equities

on the Fund’s net assets attributable to unitholders at 31 December 2011. The analysis is based on the

assumption that the index components within the benchmark increased by a reasonable possible shift,

with all other variables held constant and that the fair value of Fund’s investments moved according to the

historical correlation with the index.

Benchmark components Benchmark increase by 5%

Increase in net assets attributable to

unitholders

2011 2010

S$ S$

Bank of America Merrill Lynch High Yield, Master II Index - SGD

Hedged 961,627 422,369

A decrease in benchmark at 31 December 2011 would have had the equal but opposite effect in the net assets

attributable to unitholders to the amount shown above, on the basis that all other variables remain constant.

Fair values

At 31 December 2011, fair values of assets and liabilities approximate their carrying values on the Balance

Sheet.

Capital Management

The Fund’s capital is represented by the net assets attributable to unitholders.

The units in issue provide an unitholder with the right to require redemption for cash at a value proportionate

to the unitholder’s share in the Fund’s net assets and are classified as liabilities. The Fund’s objectives in

managing the units in issue are to ensure a stable base to maximise returns to all investors, and to manage

liquidity risk arising from redemptions. The Fund’s management of the liquidity risk arising from units in

issue is discussed under liquidity risk.

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Allianz Global Investors Premier Funds – AllianzGI US High Yield Fund

Financial Statements

13 Financial ratios

For the financial

period from

30 April

2010 (date of

constitution) to

31 December 31 December

2011

2010

% %

Expense ratio (Note 1) 1.87 1.63

Portfolio turnover ratio (Note 2) 69.04 24.50

Note 1 The expense ratio is the sum of the feeder fund’s expense ratio and the underlying fund’s unaudited expense ratio. The

unaudited expense ratio of the underlying fund, a Ireland registered fund, is provided by Luxembourg S.A. There is no

requirement for the expense ratio of this Ireland registered fund to be published or audited.

Interest expense arising on bank lending and other loans to the Fund, brokerage and other transaction costs, foreign exchange

gains/losses, tax deducted at source or arising out of income received, front or back end loads arising from the purchase and

sales of other schemes and distributions paid to unit-holders are not included in the expense ratios.

Note 2 The turnover ratio states the number of times per period that a dollar of assets is reinvested. It is calculated based on the lesser

of purchases or sales for the 12 months preceding the reporting date expressed as a percentage of daily average net asset value.

The portfolio turnover ratio is calculated in accordance with the formula stated in the “Code on Collective Investment

Schemes”.

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Allianz Global Investors Singapore Limited

3 Temasek Avenue

#07-05 Centennial Tower

Singapore 039190

Hotline: (1800) 438 0828

Fax: (65) 6311 8025

Email: Marketing.SG@Allianzgi-ap.com

Website: www.AllianzGlobalInvestors.com.sg

Business Registration No: 199907169Z

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