A comprehensive strategy for meeting investors’ evolving needs

Whether building a retirement nest egg or saving for college, investors’ circumstances change over time. Allianz Global Investors Solutions Target-Date Funds are designed to accommodate investors’ evolving needs, using a dynamically managed, inflation-focused strategy that grows increasingly defensive as the target date approaches, and beyond.

It’s important to note that the principal value of the Funds is not guaranteed at any time, including at the target date.

A complete, broadly diversified solution

The Fund provides a comprehensive option for those investing toward a specific date such as retirement. Tapping into an unusually broad universe, it invests in a range of traditional stocks and bonds, as well as lower-correlating “real” (inflation-adjusted) and alternative assets; it may also hold individual securities and exchange-traded funds, when appropriate. Diversification does not ensure against loss, however.

An emphasis on reliable risk^™

The Fund is designed to have a reliable-risk^™ profile, with a targeted focus on expected volatility. It emphasizes after-inflation capital appreciation in the early years, with increasing focus on preservation of purchasing power over time. As the end-date approaches, the lower-volatility defensive portfolio becomes increasingly prominent, seeking downside protection through a high allocation to defensive assets.

Distinctive management expertise

The Fund’s underlying mutual funds are selected from the world-class investment firms of Allianz Global Investors, including PIMCO and RCM. Each firm contributes its distinctive investment approach and culture, providing the benefits of collective expertise as well as additional diversification to the overall Fund.

In building and maintaining the portfolio, the Fund’s 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 Fund’s managers.
• The ultimate selection of individual funds is made by the Fund’s portfolio managers.

Risk management is a key consideration throughout the Fund’s lifetime, 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.