Allianz Global Investors: Managed Accounts




		Strategy Overview

		Literature

		Services


		EQUITY PROFILE	All data as of 12.31.09, unless otherwise indicated.
		NFJ Small-Cap Value

About this Strategy

Strategy Overview

Highlights

	Access to capital appreciation potential of small-cap stocks Managed by experienced value specialists Risk-averse investment philosophy Disciplined, pure value process

Process & Philosophy

CAPITAL APPRECIATION POTENTIAL

While past performance is no guarantee of future results, small-cap value stocks have recorded some of the best investment results among all equity asset classes in the past. The main reason: companies typically realize their greatest growth in the early stages of their development.

EXPERIENCED SPECIALISTS

NFJ Investment Group has a strong small-cap value track record and consists of a team of managers dedicated to a pure, deep value approach to small-cap investing. Each of these professionals participates in the investment process, serving as both portfolio manager and securities analyst. This team approach means broader resources are committed to portfolio construction.

RISK-AVERSE PHILOSOPHY

NFJ adheres to a strict value philosophy, seeking undervalued, fundamentally sound companies. What sets the firm apart from other value-oriented managers is its emphasis on risk control. To temper the risks associated with small-cap stock investing, NFJ maintains broad industry diversification and requires that each stock in a Small-Cap Value portfolio pay a dividend-a characteristic they believe is an important sign of financial stability.

DISCIPLINED INVESTMENT PROCESS

NFJ's investment process enables it to identify small-cap stocks offering attractive valuations and superior long-term capital appreciation potential. At the same time, the process seeks to control total portfolio risk.

Screen for positive fundamentals-Apply a screen for positive fundamental characteristics to a universe of approximately 4,500 stocks.
Conduct in-depth research and analysis-Research each of the remaining 300-500 possible investments, looking for companies with low price-to-earnings multiples, high dividend yields, positive earnings and quality operations.
Restrict industry concentrations-Avoid overexposure to any one sector by restricting the number of stocks held in a single industry.
Construct portfolio-Select approximately 25-40 of the most attractive securities identified, across numerous industries.
Regularly monitor for buy and sell candidates-Continually repeat the research process to identify new buy and sell candidates. Sell a stock when an alternative stock with equally strong fundamentals demonstrates a substantially lower price-to-earnings ratio, and/or a substantially higher dividend yield.

At A Glance

Objective
A managed account seeking long-term capital appreciation through investment in the undervalued stocks of small-cap companies that pay dividends

Management Firm
NFJ Investment Group LLC (NFJ)

Dallas, Texas

NFJ employs a deep value equity investment style that focuses on dividends, discipline and diversification. Over the years, the firm's strict adherence to this approach has helped it to deliver consistent results for investors with lower-than-average risk.

Founded
1989

Assets
$29.9 billion under management (as of 12.31.09)

> Management Commentary



		This information is intended solely to report on investment strategies and opportunities identified by Allianz Global Investors. Statements concerning financial market trends are based on current market conditions, which will fluctuate. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Allianz Global Investors Managed Accounts manages the NFJ Small-Cap Value accounts using a model portfolio developed by the sub-advisor NFJ as a guide. While Allianz Global Investors Managed Accounts generally intends to follow NFJ's recommendations, as the account manager it has the discretion to accept or reject any investment recommendation and to deviate from the model portfolio. Market capitalization is the value of a corporation, where market cap is calculated by multiplying the number of outstanding shares by the current share price. 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. Investing in securities entails risk. Investments in smaller companies may be more volatile than investments in larger companies. 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. The managed account strategies described on this website are offered by Allianz Global Investors Managed Accounts LLC and are available exclusively through financial professionals. Allianz Global Investors Managed Accounts LLC is an SEC registered investment advisor. Participation is restricted to accounts with a minimum asset level and may not be suitable for all investors. For more information, contact your financial advisor. Financial professionals seeking more information should contact their managed accounts department or Allianz Global Investors. 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


	CLICK TO VIEW OUR BUSINESS CONTINUITY PLAN, PROXY POLICIES & VOTING RECORDS, OR OUR PRIVACY POLICY.



	About Us Careers Contact Us Help