To or Through? How Target-Date Funds Manage Risk 

A Word About Risk: The Allianz Global Investors Solutions Funds are funds of funds investing in multiple sectors of the equity and bond markets. Each portfolio’s performance will depend on how its assets are allocated and reallocated among constituent funds. There is no assurance that the investment objective of any underlying fund will be achieved. The allocation among those funds will vary, and the Fund may be subject to any and all of the following risks at different times and to different degrees.

The Funds will involve the risk that issuers of fixed-income securities, or counterparties to derivatives contracts, may be unwilling or unable to fulfill their obligations to make interest or principal payments or to deliver securities. In an environment where interest rates may trend upward, rising rates will negatively impact most bond funds, and fixed-income securities held by a fund are likely to decrease in value. The Funds' investments in commodities-linked derivatives contain heightened risk, including market, political, regulatory and natural conditions, and may not be suitable for all investors. The Funds' investments in convertible securities involve the risk of being converted by the holder before they might otherwise be converted, which may have an adverse effect on the Fund’s ability to achieve its investment objective. Investing in non-U.S. securities entails additional risks, including political and economic risk and the risk of currency fluctuations; these risks may be enhanced in emerging markets. Smaller companies may be more volatile than larger companies and may entail more risk. The Funds may use derivative instruments for hedging purposes or as part of its investment strategy. Use of derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit and management risk and the risk that a fund could not close out a position when it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested in those instruments. An investor in a fund of funds, such as the AGIS Target-Date Funds, will bear fees and expenses charged by the underlying funds in addition to the fees and expenses of the fund of funds, making the expenses of a fund of funds generally higher than a fund that primarily invests directly in equities or fixed-income securities.