COMPOSITE RESULTS: This strategy was introduced in June 2004 with a different manager for one of the sleeves. This sleeve was replaced in October of 2005. Accordingly, there are no statistics yet for actual managed accounts in this strategy. All portfolio results represent a hypothetical combination of composites for the individual component strategies. Each composite is based on fully discretionary managed accounts with comparable investment objectives and risk tolerance currently managed as stand alone accounts within each strategy. Composite results are representative of how the portfolios are invested as of the indicated date but may not include all accounts. Actual account holdings will vary depending on the size of an account, cash flows and account restrictions. Portfolio holdings are subject to change daily. Under no circumstances does the information contained within represent a recommendation to buy or sell securities. Individual portfolio results may vary as a result of market conditions, trading costs, and certain other factors which may be unique to each account. Investing in securities entails risk.
Allianz Global Investors Managed Accounts manages the Merrill Lynch Multi-Firm Consults Diversified Portfolio (CDP) III accounts using model portfolios developed by the sub-advisors, Neuberger Berman, NFJ, OpCap and PIMCO, as a guide. While Allianz Global Investors Managed Accounts generally intends to follow the sub-advisors' recommendations, as the investment manager it has the discretion to accept or reject any investment recommendation and to deviate from the model portfolios. A portion of the fixed-income portfolio is managed by PIMCO directly in the form of commingled vehicles, which are available only through Allianz Global Investors Managed Accounts utilizing the Total Return strategy.
Earnings growth is the percentage increase or decrease from the prior period's earnings. P/E is a ratio of security price to earnings per share. Typically, an undervalued security is characterized by a low P/E ratio, while an overvalued security is characterized by a high P/E ratio. P/B is a ratio of the current stock price to the book value. This is used to identify undervalued stocks. Portfolio yield is the weighted average dividend yield of the stocks in the portfolio. Duration is a measure of price sensitivity expressed in years. Beta measures the market related volatility of a portfolio, where the overall market is represented by the S & P 500 for equity portfolios. The beta of the market is 1 by definition. A beta greater than 1 indicates that a portfolio's market risk is greater than the overall market's, while a beta less than 1 indicates a lower market risk. It is important to note that having a low market risk does not necessarily imply low volatility. A portfolio may have a low beta while experiencing volatility due to factors independent of the market.
Investing in securities entails risk. When investing in value securities, the market may not necessarily have the same value assessment as the manager, and, therefore, the performance of the securities may decline. Investments in smaller companies may be more volatile than investments in larger companies. Investing in non-US. securities entails additional risks, including political and economic risk and the risk of currency fluctuations; these risks may be enhanced in emerging markets. The guarantee on Treasuries, TIPS and Government Bonds is to the timely repayment of principal and interest. Portfolios that invest in them are not guaranteed. The value of some mortgage-related or asset-backed securities may be particularly sensitive to interest rate changes, and there is no assurance that private insurers of the underlying mortgages or assets will meet their obligations. With Corporate bonds there is no assurance that issuers will meet their obligations.
The PIMCO Total Return Strategy portion of the portfolio consists of individual securities and a select combination of proprietary, commingled vehicles managed by Allianz Global Investors Managed Accounts' affiliated investment manager Pacific Investment Management Company (PIMCO). The investment approach is designed to efficiently model PIMCO's total return strategy that it offers to institutional investors. No fees are charged to clients at the commingled vehicle level.
The MSCI EAFE is an unmanaged index of over 900 companies and is a generally accepted benchmark for major overseas markets. The Lehman Brothers Aggregate Bond Index is composed of securities from the Lehman Brothers Government/Credit Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index. It is generally considered to be representative of the domestic, investment-grade, fixed-rate, taxable bond market. The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
The managed account strategies described in this material are offered by Allianz Global Investors Managed Accounts and are available exclusively through financial professionals. Managed accounts have a minimum asset level and may not be suitable for all investors. For more information about this product, contact your financial advisor. Allianz Global Investors Managed Accounts offers a range of multi-discipline portfolios developed for specific sponsor firms and are available exclusively through those firms. Financial professionals seeking more information should contact their managed accounts department or call their Allianz Global Investors representative. Allianz Global Investors Managed Accounts LLC, 1345 Avenue of the Americas, New York, NY 10105-4800. Investment Products: NOT FDIC INSURED / MAY LOSE VALUE / NOT BANK GUARANTEED
