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Consistent Income Amid Historically Low Yields 

 

3/14/2017 

During a decade of historically low interest rates and yields, AllianzGI Income & Growth Fund delivered consistent income every month. Portfolio Manager Doug Forsyth explains how the Fund plans to keep the streak moving forward in 2017.

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Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years AnniversaryVolatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years AnniversaryVolatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary Volatility Defense Interest Rate Protection Income Consistency Growth Dedicated Team Strong History 10 Years Anniversary

10 Years, 1 Consistent Income and Growth Solution

AllianzGI Income & Growth Fund has been providing clients with a steady stream of monthly distributions and an asymmetric risk-return profile—regardless of the market environment—for the last 10 years.

Morningstar Overall Rating™ AllianzGI Income & Growth Fund (AZNIX)

as of 2/28/2017. For Class I shares among 408 funds in the Allocation—30% to 50% Equity category. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the 3-,5 and 10-year star ratings.

AllianzGI Income & Growth Fund is a single investment vehicle that can be used in a wide range of ways to help support an investor's income goals—and address financial concerns.

Guard against a rising rate environment

Since 2013, there have been four separate periods when US Treasury yields rose more than 50 basis points and bond prices plummeted. Here's how the Fund held up.
  "Taper Tantrum"
(5/2/2013 – 9/5/2013)
Fed Announces Easing
(10/23/2013 – 12/31/2013)
“Bund Tantrum”
(1/30/2015 – 6/26/2015)
Current Environment
(7/5/2016 – 12/31/2016)
10-Year Treasury Yield 1.66% -2.98% 2.51% -3.04% 1.68% -2.49% 1.37% -2.45%
AllianzGI Income and Growth Fund Return (A share) 3.22% 3.32% 4.08% 6.74%
Bloomberg Barclays U.S. Agg. Bond Index Return -4.85% -0.96% -2.44% -2.74%
Source: Morningstar Direct, data as of 12/31/2016. Past performance is no guarantee of future results.

Dampen market volatility

For more than 10 years, AllianzGI Income & Growth Fund has been a multi-asset tool offering investors equity-like returns with a lower risk profile than an all-equity portfolio.
Return (% Annualized)

AllianzGI Income & Growth Fund (I Share)

S&P 500 Index

  1. 8
  2. 6
  3. 4
  4. 2
  5. 0
                 
                 
                 
                 
                 
                 
                 
                 
  1. 0
  2. 2
  3. 4
  4. 6
  5. 8
  6. 10
  7. 12
  8. 14
  9. 16
  10. 18
Risk (% Annualized)
Source: Morningstar, as of 1/31/2017

Deliver consistent income

The Fund has a proven track record of consistently generating income through monthly distributions—and it's held steady through 10 years of uncertain markets.
  Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2008 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.4712*
2009 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875
2010 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.1136*
2011 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.1125*
2012 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875
2013 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875
2014 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875
2015 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875
2016 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0875 $0.0825 $0.0825 $0.0825
2017 $0.0825 $0.0825                    
Source: US Federal Reserve, Allianz Global Investors. Distribution history shown is for Class A shares of the fund. Past performance is no guarantee of future results.
*Aggregate of monthly and special distributions made in these months: Dec. 2008, $0.4712; Dec. 2010, $0.1136; Dec. 2011, $0.1125.

All Eyes on Earnings

As the post-election rally runs short on fuel, investors will turn once again to earnings growth as a driver of returns. Learn More

Investors should consider the investment objectives, risks, charges and expenses of any mutual fund carefully before investing. This and other information is contained in the fund’s prospectus and summary prospectus, which may be obtained by contacting your financial advisor. Click here for a complete list of the Allianz Funds prospectuses and summary prospectuses. Please read them carefully before you invest.

Performance assumes reinvestment of dividends and capital gains distributions. Taxes on distributions or redemptions have not been deducted.

Performance quoted represents past performance. Past performance is no guarantee of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. The MOP returns take into account the 5.50% maximum initial sales charge. The Fund’s expense ratio is 1.29%.

A Word About Risk: Below-investment-grade securities involve a greater risk to principal than investment- grade securities. Foreign markets may be more volatile, less liquid, less transparent and subject to less oversight, and values may fluctuate with currency exchange rates; these risks may be greater in emerging markets. Convertible securities involve the added risk that securities must be converted before it is optimal. Unregistered securities may entail liquidity risk. Derivative prices depend on the performance of an underlying as set; derivatives carry market, credit and liquidity risk.

The Standard & Poor’s 500 Index (S&P 500) is an unmanaged market index of large capitalization common stocks. The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are SEC registered, taxable, and dollar denominated. The index is composed of securities from the Bloomberg Barclays Capital Government/Credit Bond Index, Mortgage- Backed Securities Index, and Asset-Backed Securities Index. It is generally considered to be representative of the domestic, investment-grade, fixed-rate, taxable bond market. It is not possible to invest directly in the index. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an index.

Minimum investment for Institutional shares is $1 million, though this may be reduced for certain financial intermediaries that aggregate trades on behalf of investors.

Source for Morningstar information: Morningstar Inc. For funds with at least a three-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of all sales charges), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receives a rating of 5 stars; the next 22.5% 4 stars; the next 35% 3 stars; the next 22.5% 2 stars; and the bottom 10% 1 star. In the Allocation--30% to 50% Equity category, AllianzGI Income & Growth Fund I shares received 5 stars/408 funds (3 years), 5 stars/352 funds (5 years), 5 stars/238 funds (10 years). Other share classes have different ratings. © 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Lipper information is calculated by Lipper Inc. The category returns represent the average performance of included funds, while rank compare an individual fund’s returns to those of the other funds in its category. Both are based on total return performance, with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings begin with the actual share class inception.



Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY 10019-7585, us.allianzgi.com, 1-800-926-4456.
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