• Access to undervalued dividend-paying stocks
• Managed by experienced value specialists
• Risk-averse investment philosophy
• Disciplined, pure value process

POTENTIAL OF UNDERVALUED STOCKS

Investors often focus on a few high growth sectors, allowing strong opportunities in other industries to go unnoticed. NFJ's Large-Cap Value managed account portfolio may be a beneficial way to invest in these undervalued stocks.

EXPERIENCED SPECIALISTS

NFJ Investment Group has a strong track record and consists of a team of managers dedicated to a pure, deep value approach to equity investing. Each of these professionals participate in the investment process, serving as 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 equity investing, NFJ maintains broad industry diversification and requires that each stock in its Large-Cap Value portfolios 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 stocks offering attractive valuations and superior long-term growth potential. At the same time, the process seeks to control total portfolio risk.

• Screen the largest 300 publicly traded companies in the United States, and classify into approximately 55 industries.
• Using fundamental research, select one candidate from each industry that has a low price-to-earnings ratio (P/E) for that industry and pays a dividend.
• Rank candidate stocks by P/E (low to high) and select 40-50 stocks.
• Determine weightings (between 1%-4% at time of investment) by value factors such as low P/E, high yield, low price-to-book, and price momentum.
• 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 P/E ratio and/or a substantially higher dividend yield.

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.