A comprehensive strategy for sustainable real income

With retirements lasting 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 is designed to generate an income stream that preserves purchasing power throughout retirement.

A complete, broadly diversified solution

The Fund can serve as a comprehensive solution for retirees making withdrawals on their investments or investors seeking a conservative allocation strategy. To help moderate overall volatility, the Fund taps into an unusually broad universe, investing in a range of traditional stocks and bonds, as well as in lower-correlating “real” (inflation-adjusted) and alternative assets. 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. The Fund seeks to provide current income, preservation of purchasing power and downside protection. It takes a conservative stance, targeting 75% of the portfolio in defensive assets and 25% in return-generating assets.

Distinctive management expertise

The Fund’s underlying mutual funds are chosen 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.