• A comprehensive income solution for investors who have already retired, have begun making withdrawals on their investments or are seeking a conservative allocation strategy.
• Designed to seek current income and, secondarily, after-inflation capital appreciation,
• Broadly diversified with the ability to investment in real (inflation-hedging) and alternative asset classes.
• Offers access to a wide range of Allianz Global Investors funds within a single portfolio.

A Comprehensive Solution

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. Allianz Global Investors Solutions Retirement Income Fund focuses on generating a sustainable income stream during retirement years that can keep pace with rising costs of goods and services. This “fund of funds” takes a conservative stance, targeting a strategic allocation of 75% of total assets to defensive assets and 25% to return-generating assets. However, its managers have some flexibility to diverge from this balance in order to actively take advantage of certain market opportunities.

Emphasis on Diversifying Risk

During periods of severe market stress, asset classes such as U.S. and international stocks tend to be highly correlated (i.e., move closely in tandem), making them less effective diversification tools. The Retirement Income Fund seeks to moderate overall portfolio volatility by diversifying risks rather than asset classes. It does this by dividing assets into two distinct risk categories: 1) defensive assets designed to preserve principal and provide real income, and 2) return-generating assets that emphasize real (inflation-adjusted) wealth accumulation.

Broader Investment Universe

Unlike many traditional allocation funds that invest largely in U.S. stocks and bond funds, the Retirement Income Fund extends its universe to include a range of other assets. These include funds investing in: international and emerging markets investments; real return (inflation-hedging) assets such as Treasury Inflation-Protected Securities (TIPS), commodities and real estate; and alternative assets such as listed private equity and infrastructure. These are drawn largely from the extensive range of Allianz and PIMCO mutual funds, and a portion may be drawn from selective third-party exchange-traded funds (ETFs) and other mutual funds and pooled vehicles.

Pre-eminent Global Asset Management

Allianz Global Investors Solutions, a registered investment advisor, serves as the Fund’s sub-advisor. The underlying mutual funds provide access to the expertise of the Allianz Global Investors investment firms —PIMCO, NFJ, RCM, Nicholas-Applegate Capital Management, Oppenheimer Capital and Cadence Capital Management¹— which are among the most established and forward-looking in the industry. Each firm maintains its own distinctive investment culture and philosophy, providing investors with convenient access to a breadth of proven strategies, styles and approaches. Allianz Global Investors’ investment firms have more than $1 trillion in assets under management for our clients worldwide.²

1 Cadence Capital Management is an independently-owned investment firm.

2 Allianz Global Investors AG assets under management as of December 31, 2008.

In building and maintaining the portfolio, the Fund’s managers take a multi-step, research-based approach that carefully balances risk/return considerations.

• Assets are divided into two distinct categories: return-generating assets, which include riskier strategies with greater long-term growth potential; and defensive assets, which are meant to manage short-term volatility, provide income and preserve capital. Both groupings seek to meet their objectives on an inflation-adjusted basis.
• The Fund will generally maintain a strategic (long-term) allocation target of 75% of assets in defensive assets and 25%% in return-generating assets. However, the Fund’s managers may add value by making tactical, or opportunistic, allocations where market conditions warrant.
• Lastly, the Fund’s managers select individual funds that most appropriately correspond to the portfolio’s asset class allocation.

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.