• Provides a comprehensive retirement solution for investors expecting to retire in or near 2020.
• Focuses on after-inflation wealth accumulation to meet the complex financial needs of retirement.
• More broadly diversified than many target date funds, with allocations to real (inflation-hedging) and alternative asset classes.
• Offers access to a wide range of Allianz Global Investors funds within a single portfolio.

An A–Z Retirement Solution

Allianz Global Investors Solutions Target-Date Funds are designed to meet the complex, evolving needs of investors for wealth accumulation and sustainable income as they near and reach retirement. Each Fund follows a diversified asset allocation strategy – or “glide path” – tailored toward one of the following retirement target dates: 2015, 2020, 2030, 2040 and 2050. The Retirement Income Fund is also available for those who have already retired, have begun making withdrawals on their investments or are seeking a conservative allocation fund. As “funds of funds,” the Funds’ portfolios comprise a carefully selected and dynamically managed blend of mutual funds; a portion may also be invested in exchange-traded funds and individual securities.

Emphasis on Sustainable Real Income

With retirements expected to last 20 or even 30 years, one of the greatest risks for retirees is not having the income they need when they need it. To help protect the purchasing power of retirement assets, the Allianz Global Investors Solutions Funds seek a balance of real (after-inflation) capital growth and capital preservation. They pursue this goal by investing in two distinct “buckets” of assets: 1) return-generating assets that emphasize real wealth accumulation; 2) defensive assets designed to preserve principal on an after-inflation basis. The first bucket is emphasized in the early years of each Fund, with the second becoming more prominent as retirement nears. Once retirement has been reached, all of the Funds will seek to generate a sustainable income stream that can keep pace with the rising costs of goods and services, eventually rolling into the Retirement Income Fund.

Broader Diversification

As global markets become increasingly interdependent, correlations have risen among traditional stocks and bonds. The Allianz Global Investors Solutions Funds extend their universe to include lower-correlated real and alternative assets, which can help moderate overall portfolio volatility during periods of market stress. Thus, in addition to a wide range of equity and fixed-income strategies, the Funds highlight sectors such as commodities, real estate, listed infrastructure and listed private equity investments. These are drawn from the full complement of mutual funds from Allianz Global Investors, as well as from selective third-party exchange-traded funds.

Pre-eminent Global Asset Management

Allianz Global Investors Solutions, a registered investment advisor, serves as the sub-advisor for the target-date Funds. The underlying mutual funds are managed by Allianz Global Investors Fund Management LLC, whose affiliates--PIMCO, NFJ Investment Group, RCM, Nicholas-Applegate Capital Management, Oppenheimer Capital, and Cadence Capital Management--are among the most established and forward-looking in the industry. Each firm maintains its own distinctive culture and investment philosophy, providing investors with convenient access to a breadth of proven strategies, styles and approaches. The Allianz Group, a subsidiary of Allianz SE, manages more than $1.4 trillion in assets for its clients worldwide.¹

1 Assets under management as of December 31, 2008.

2 Cadence Capital Management in an independently-owned investment firm.

In building and maintaining the portfolio, the Funds’ managers take a multi-step, research-based approach that accommodates investors’ changing circumstances over time.

• Assets are divided into two distinct “buckets”: return-generating assets, which include riskier strategies with greater long-term growth potential; and defensive assets, which are meant to manage short-term volatility and, secondarily, hedge for inflation.
• In each portfolio, the allocation between these buckets will change over time, with a greater focus on defensive assets as the target date approaches. An optimal “glide path” for this shifting allocation is developed from a sophisticated life-cycle model. This model has a firm grounding in real investor behavior, using data such as: life expectancies, retirement age, savings rates and levels of consumption.
• Strategic allocations (determining specific asset classes), for the defensive and return-generating asset buckets are determined by the Funds' managers.
• The ultimate selection of individual funds is made by the Funds’ portfolio managers.

Risk management is a key consideration throughout the Funds’ lifetimes, with an eye to balancing principal preservation with the need for sufficient wealth accumulation to fund one’s entire retirement.

Mr. Pietranico, CFA, has been the director of investment manager due diligence, risk analysis and performance reporting teams for Allianz Global Investors. He holds a BS in physics, an MA in philosophy of science and an MS in engineering economics, all from Stanford University.

Mr. Sexauer has been a managing director for Allianz Global Investors and a portfolio manager at Nicholas-Applegate Capital Management. He earned an MBA from the University of Chicago and a BS from the University of Illinois.

San Diego, CA

Allianz Global Investors Solutions, a U.S.-registered investment advisor, provides solution-oriented investment strategies, with portfolios designed and managed to meet the specific and complex needs of its clients.