• A mid- to large-cap core equity Fund managed by an experienced team
• Uses a disciplined, integrated investment process that blends traditional fundamental research with rigorous quantitative screening techniques
• The management team comprises investment professionals and analysts who do their own research, yet can still leverage RCM’s global dual research platform
• A portfolio of 50-80 stocks, composed primarily of U.S. companies and diversified across major industry groups

Allianz RCM Disciplined Equity Fund’s mid- to large-cap U.S. core strategy may appeal to investors who simply want to gain exposure to quality domestic companies, rather than choose between “growth” and “value” investment styles. The Fund is clearly differentiated from an index fund with its active management from an experienced team, who are not limited by stock constraints or sector weightings, and instead are driven by their conviction in companies they research.

A Disciplined, Proprietary Investment Process

• The Fund is managed by an experienced team that uses a disciplined investment process (see below) to seek out undervalued companies undergoing positive change.
• The portfolio manager looks for strong potential for capital appreciation; substantial capacity for growth in revenue, cash flow and/or earnings through either an expanding market or expanding market share; a strong balance sheet; superior management; strong commitment to research and product development; and differentiated or superior products and services and/or a steady stream of new products and services.
• The management team performs its own fundamental research on all the stocks in the portfolio, with additional support from RCM’s sector-based career analysts and from RCM’s Grassroots^SM team.

RCM Is an Experienced, Informed Manager

• RCM places a unique emphasis on global information and information flow. By generating and capitalizing on this “information advantage,” RCM seeks to deliver superior and consistent investment results for the Fund’s shareholders.
• RCM is a truly global firm. In lieu of a central headquarters, their offices are strategically located in key financial centers around the world—including San Francisco, London, Frankfurt, Hong Kong, Sydney and Tokyo.
• RCM uses a distinctive dual research platform—consisting of their sector-based fundamental global research platform and unique Grassroots^SM Research division—to provide deep, “bottom-up” insight into a company’s fundamentals from a country, regional and global perspective.

The Fund's integrated investment process blends quantitative techniques with fundamental research. The investment universe consists of approximately 1,200 stocks with a market cap of at least $1.5 billion. The quantitative screening process divides this universe into three categories: buy, neutral and sell, ranking stocks on a number of valuation factors and several positive change catalysts. Four factors are used to identify value: normalized earnings, income potential, price-to-book ratio and price weakness. Catalyst screens include improving earnings and positive estimate trends. The most attractive candidates from the approximately 400 screened stocks are researched by the management team, with input from RCM's global dual research platform. The stocks also undergo a proprietary price range analysis, which produces upside and downside target prices for further consideration. Portfolio construction is subjective: the management team makes all the selection decisions, favoring stocks with limited downside risk and large upside potential. The result is a well-diversified portfolio of 50-80 large- and mid-cap stocks with sector weights that may deviate substantially from the benchmark. While the Fund does have country allocation constraints (non-U.S. holdings are limited to 20% of assets, of which no more than 10% can be in any one non-U.S. country, and no more than 10% can be in emerging markets), there are no explicit stock or sector constraints, so investment ideas are largely driven by stock conviction.

Seung Minn is CIO, Disciplined Equities Group. Prior to joining RCM in 1998, he was a Senior Vice President and Head of International Quantitative Research at Putnam Investments in Boston. He received a B.S.E. in Civil Engineering and Operations Research from Princeton University, is a CFA charterholder, and is a member of the CFA Institute and the Security Analysts of San Francisco. He has 19 years of investment industry experience.

San Francisco, California

RCM is a truly global asset manager and a company of Allianz Global Investors. The firm operates across three continents and five time zones from six international offices- San Francisco, London, Frankfurt, Hong Kong, Tokyo and Sydney. RCM's range of investment solutions spans the market cap and style spectrum and reaches from regional and global strategies to multi-asset and structured products.