COMPOSITE RESULTS: All portfolio statistics represent a composite of all fully discretionary portfolios of this strategy type currently managed by Allianz Global Investors Managed Accounts. Composite results may not include all accounts. Individual account holdings will vary depending on the size of an account, cash flows and account restrictions. These statistics are representative of how the portfolios in the composite are invested as of the date indicated. Portfolio holdings are subject to change daily. Under no circumstances does the information contained within represent a recommendation to buy or sell securities.
The model account is a hypothetical portfolio and does not represent actual trading or investment decisions made under real market conditions. As a result, this information cannot completely account for the impact that real market conditions or economic factors would have had on an actual portfolio or on an investment manager's decisions. The securities in the model account represent recommendations as of a specific date and may or may not be included in an actual account.
Allianz Global Investors Managed Accounts manages the Merrill Lynch Multi-Firm Consults Diversified Portfolio (CDP) V accounts using model portfolios developed by the sub-advisors, Neuberger Berman, NFJ, Cadence, 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.
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.
Investment Risk: 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. PIMCO Total Return can invest without limit in derivative instruments such as options, futures, options on futures and swap agreements. The use of derivative instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a portfolio may 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 these instruments. 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 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 ACWI ex-US is composed of approximately 2000 companies representative of the market structure of 21 developed countries in North America, Europe, and the Pacific Rim, and excludes securities of United States issuers. The Barclays Capital Aggregate Bond Index is composed of securities from the Barclays Capital 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 Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000 Growth Index.
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
