Allianz NFJ Large-Cap Value Fund focuses on the largest companies within the equity universe that the managers believe are undervalued but offer attractive long-term capital appreciation potential. Using NFJ’s pure deep-value style, the Fund combines quantitative stock screening with qualitative research to identify fundamentally sound businesses with stronger value characteristics than its benchmark.

A focus on dividends and valuations

The Fund invests primarily in dividend-paying securities, which can offer some stability during periods of market turbulence. Reinvested dividends may also enhance total returns over time. In addition, the Fund has emphasized companies with a lower average price-to-earnings (P/E) ratio than that of its benchmark. NFJ has found that dividend-paying, low P/E stocks have performed well over extended periods of time.

Disciplined, time-tested, value investment style

In an effort to strike the most attractive risk/reward balance, NFJ Investment Group pursues long-term capital appreciation while using a “3D” strategy emphasizing discipline, diversification and dividends to manage risk. This approach can help cushion against price declines and contribute to total return.

Experienced investment team

NFJ’s tightly knit investment team represents decades of experience. Investment professionals serve as both research analysts and portfolio managers, a structure that adds value by encouraging the free flow of ideas and vigorous debate. In addition, the Fund’s portfolio management team includes one of the firm’s co-founders.

• Search for positive fundamentals – Apply a screen for positive fundamental characteristics to a universe of approximately 300 stocks.
• Conduct in-depth research and analysis – Research each of the remaining 75–100 possible investments, looking for companies with low price-to-earnings multiples, dividend yields, positive prospective earnings and quality operations.
• Restrict industry concentrations – Avoid overexposure to any one sector by restricting the number of stocks held in a single industry.
• Construct portfolio – Select approximately 40–60 of the most attractive securities identified, diversified across industries. Each holding is expected to pay a dividend.
• Regularly monitor for buy and sell candidates – Continually repeat research process to identify new buy and sell candidates. Generally, sell a stock when an alternative stock with strong fundamentals demonstrates a lower price-to-earnings multiple, a higher dividend yield or other qualitative metrics.

Ben Fischer, CFA, is Managing Director and Portfolio Manager of NFJ Investment Group. A founding partner of NFJ, Mr. Fischer's experience in the value sector began in 1966.

Paul Magnuson is a Managing Director and a Portfolio Manager at NFJ. He has worked in equity analysis and portfolio management since 1985. He received his B.B.A. in finance from the University of Nebraska.

Thomas W. Oliver, CFA and CPA, is a Portfolio Manager who joined NFJ in 2005. Prior to this he was a manager of corporate reporting at Perot Systems, and before that was an auditor with Deloitte & Touche.

Jeffrey Partenheimer, CFA and CPA, is a Managing Director and Portfolio Manager at NFJ Investment Group.  His experience in financial analysis, portfolio management and large corporate finance began in 1985.

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.