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Give Your Portfolio an Active Edge 

 
In today's volatile market, getting from risk to reward may take something more than a purely passive approach. Find out how to prepare for a shift in today's markets.

4 key reasons the environment is positioned for active investing

  • How the end of quantitative easing can effect volatility (January 2008 to January 2016)
    Examples of Fed Halting Quantitative Easing
    Historically, volatility has increased as monetary easing ends and markets normalize
    Source: VIX CBOE Volatility Index, Bloomberg. QE1: 11/25/2008–3/31/2010 QE2: 11/3/2010–6/30/2011 QE3: 9/13/2012–12/18/2013 QE tapering: 1/29/2014–10/29/2014. Data as of 1/31/2016.

    Quantitative easing (QE) is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.
  • S&P 500 Index performance during Federal Open Market Committee action (January 2008 to January 2016).
    Active Edge Stocks Correlations
    Lower returns and increased volatility could result in a stock-picker's market
    Source: Bloomberg, US Federal Reserve, S&P 500 Index. Past performance is no guarantee of future results. Data as of 1/31/2016. QE1: 11/25/2008–3/31/2010 QE2: 11/3/2010–6/30/2011 QE3: 9/13/2012–12/18/2013 QE tapering: 1/29/2014–10/29/2014.

    Quantitative easing (QE) is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.
  • S&P 500 Index stock correlations (January 1995 to January 2016).
    stock correlations
    A decrease in correlations means stocks may no longer move in tandem
    Source: FactSet, S&P 500 Index, Bloomberg, Morningstar. Data as of 1/31/2016.
  • Income generated from a hypothetical $100,000 investment will be lower than it was as of December 31, 2005.
    As rates rise, asset allocation will need to be more selective and diverse
    Asset allocation will need to be more selective and diverse as interest rates rise
    Source: Bloomberg and FactSet as of 12/31/2015. Past performance is no guarantee of future results. Based on yields for the indexes as of 12/31/2005 and 12/31/2015. See disclosure for important considerations.

How to prepare for the marketplace shift

Active management has a lot to offer investors. It has the potential to buffer against volatility while delivering a steady income stream, uncovering growth opportunities and providing risk-managed solutions. Here are some ways to seek an edge—and be prepared.

Get an Active Edge Now

Being passive alone may not be the best way to prepare for volatile market shifts. See what active investing can do.

A tepid, uncertain market could put investors' goals in jeopardy. It's important to take the right risks to help grow and potentially preserve wealth while focusing on downside risk mitigation. AllianzGI Best Styles Global Equity Fund

Ticker Symbols:
A shares: ALLGX
I shares: ALLHX
P shares: ALGPX
R6 shares: AGERX

  • Diversified, factor-based investing can provide a stable relative return profile over time
  • Broadly diversified blend of investment factors: growth, value, momentum, quality and earnings change
  • Relatively low tracking error, high information ratio and attractive costs
To learn more, download our Investment Solution Download PDF
AllianzGI Global Dynamic Allocation Fund

Ticker Symbols:
A shares: ASGAX
C shares: ASACX
I shares: AGAIX
P shares: AGSPX
R shares: ASFRX

  • Broad asset-class bands allow the portfolio to strategically shift allocations, aiming to gain from opportunities and avoid pitfalls
  • Global and diversified asset-class mix, investing in equities, fixed-income and opportunistic assets
  • Trend-driven risk mitigation strives to reduce downside risk while allowing participation in the market's upside
To learn more, download our Investment Solution Download PDF
Looking beyond traditional fixed-income securities by focusing on diversification and risk mitigation as interest rates rise. AllianzGI Income & Growth Fund

Ticker Symbols:
A shares: AZNAX
C shares: AZNCX
I shares: AZNIX
P shares: AIGPX
R shares: AIGRX

AZNIX ★★★★★
Morningstar Overall RatingSM

For Class I shares among 406 funds in the Allocation--30% to 50% Equity category as of 4/30/17. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the 3-, 5- and 10-year star ratings.

  • Equity-like characteristics help manage against rising rates
  • Unique multi-sleeve approach (convertibles, high-yield bonds and equities) can help buffer against volatility
  • Strong track record of historically delivering a monthly distribution of $0.0875 (class A share) since its inception 2/28/2007
To learn more, download our Investment Solution Download PDF
AllianzGI Short Duration High Income Fund

Ticker Symbols:
A shares: ASHAX
C shares: ASHCX
I shares: ASHIX
P shares: ASHPX

ASHIX ★★★
Morningstar Overall RatingSM

For Class I shares among 599 funds in the High Yield Bond category as of 4/30/17. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the 3-, 5- and 10-year star ratings.

  • Short-term corporate high-yield debt provides short average duration to lower interest-rate risk
  • Opportunistically invests up to 20% in higher-quality bank loans
  • Since its 10/31/2011 inception, the Fund has historically offered greater returns and less risk compared with core bonds¹
To learn more, download our Investment Solution Download PDF
Applying a unique strategy that is uncorrelated and non-directional. AllianzGI Structured Return Fund

Ticker Symbols:
A shares: AZIAX
C shares: AZICX
I shares: AZIIX
P shares: AZIPX

AZIIX ★★★★
Morningstar Overall RatingSM

For Class I shares among 75 funds in the Option Writing category as of 4/30/17. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the 3-, 5- and 10-year star ratings.

  • An uncorrelated market-neutral strategy that pursues steady, risk-managed returns independent of market conditions
  • An options-based liquid alternative allocation
  • A distinct bond-like risk profile that can help buffer against market declines
To learn more, download our Investment Solution Download PDF
Offering a research edge when looking for new areas of opportunity, innovation and growth. AllianzGI Focused Growth Fund

Ticker Symbols:
A shares: PGWAX
C shares: PGWCX
I shares: PGFIX
P shares: AOGPX
R shares: PPGRX
R6 shares: AFGFX

PGFIX ★★★★
Morningstar Overall RatingSM

For Class I shares among 1301 funds in the Large Growth category as of 4/30/17. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the 3-, 5- and 10-year star ratings.

  • Focused on high-conviction investment ideas that may have significant return potential
  • Optimally concentrated with typically 25 to 45 holdings aiming to maximize the benefits of diversification and minimize the effects of risk²
  • Growth managers may have greater exposure to sectors that have strong tailwinds in the current environment
To learn more, download our Investment Solution Download PDF
Exposing investors to emerging market opportunities that promote strategic portfolio positioning. AllianzGI Emerging Markets Opportunities Fund

Ticker Symbols:
A shares: AOTAX
C shares: AOTCX
I shares: AOTIX
P shares: AEMPX
R6 shares: AEMOX

  • Identifies companies in developing countries that are experiencing positive, sustainable fundamental change thanks to favorable demographics
  • Invests in equities that are reasonably priced with other compelling financial indicators
  • Broader diversification than indexes—across countries, industries and currencies—boosts growth potential
To learn more, download our Investment Solution Download PDF
Taking advantage of inefficiencies: More than 5,000 small-cap companies are not followed by financial analysts, and almost 6,000 companies are covered by fewer than five. AllianzGI Global Small-Cap Fund

Ticker Symbols:
A shares: RGSAX
C shares: RGSCX
I shares: DGSCX
P shares: ARSPX

  • High-conviction smaller companies exploiting inefficiently covered markets around the world
  • Global opportunities that are locally managed; small-cap companies are best researched, invested in and monitored by local portfolio managers
  • Attractive earnings growth
To learn more, download our Investment Solution Download PDF
AllianzGI International Small-Cap Fund

Ticker Symbols:
A shares: AOPAX
C shares: AOPCX
I shares: ALOIX
P shares: ALOPX
R shares: ALORX

ALOIX ★★★★
Morningstar Overall RatingSM

For Class I shares among 108 funds in the Foreign Small/Mid Growth category as of 4/30/17. Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the 3-, 5- and 10-year star ratings.

  • Managed like the Global Small Cap Fund, excluding exposure to US markets
To learn more, download our Investment Solution Download PDF

Given today's unpredictable environment, markets could shift dramatically at any time. Use these tools to better understand these shifts, and why now may be a great time to take advantage of the skills and experience of an active manager.

  • Give Your Portfolio an Active Edge: Presentation

    AE Presentation

    In today's unpredictable environment, getting from risk to reward may take seeing beyond passive. Here's how to gain an active edge.

    Download PDF

  • Prepare for a Marketplace Shift: Client Brochure

    Prepare for a Shift

    Given today's volatile environment, there's a shift toward uncertainty. This is causing investors to think differently—and actively—about their investment strategy.

    Download PDF

  • Investor Education

    Prepare for a Shift

    Use these tools to help better understand what's driving today's financial markets – and what makes the environment ready for an active investor.

    Learn more

For more information on how to prepare for a
marketplace shift contact us at 1 800 926 4456.

  1. 1. As of 12/31/2015. Core bonds are represented by the Barclays US Aggregate Index. Risk is measured by standard deviation.

  2. 2. Source: Elton and Gruber, Modern Portfolio Theory and Investment Analysis; Alexeev, V. & Tapon, F. (2013)

Some products and services may not be offered at all firms. Please check with your individual firm for availability.

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.

Important Considerations: The advisability of moving out on the risk spectrum will vary over time depending on macroeconomic conditions and an individual’s investment time horizon, financial status and risk-tolerance level. Investors should consult with a financial advisor when determining an asset allocation suitable for their investment needs. Unlike cash and fixed-income securities, equity securities do not offer a fixed rate of return and entail a greater risk to principal. High-yield or “junk” bonds have lower credit ratings and involve a greater risk to principal.

A word about risk: Equities have tended to be volatile, and do not offer a fixed rate of return. A security in the portfolio may not perform as anticipated if the market does not agree with the portfolio manager’s value assessment. 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. Investments in smaller companies may be more volatile and less liquid than investments in larger companies. Derivative prices depend on the performance of an underlying asset; derivatives carry market, credit and liquidity risk. Securities purchased in initial public offerings have no trading history, limited issuer information and increased volatility. Below investment grade securities involve a greater risk to principal than investment grade securities. Convertible securities involve the added risk that securities must be converted before it is optimal. Options carry market, credit and liquidity risk. Unregistered securities may entail liquidity risk. High yield or “junk” bonds have lower credit ratings and involve a greater risk to principal. Bond prices will normally decline as interest rates rise. The impact may be greater with longer duration bonds. Unlike US Treasuries, the securities in which the fund invests are not guaranteed as to timely payment of interest and principal and are subject to greater risk. High levels of portfolio turnover increase transaction costs and taxes and may lower investment performance.

Dividend-paying stocks are not guaranteed to continue to pay dividends.

Diversification cannot ensure a profit or protect against a loss. There is no guarantee that actively managed investments will outperform the broader market.

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 Class I Shares received 5 stars/406 funds (3 years), 5 stars/351 funds (5 years) and 5 stars/244 funds (10 years). In the High Yield Bond category, AllianzGI Short Duration High Income Fund Class I Shares received 4 stars/599 funds (3 years) and 2 stars/474 funds (5 years). In the Option Writing category, AllianzGI Structured Return Fund Class I Shares received 4 stars/75 funds (3 years). In the Large Growth category, AllianzGI Focused Growth Fund Class I Shares received 4 stars/1301 funds (3 years) and 4 stars/1146 funds (5 years) and 4 stars/799 funds (10 years). In the Foreign Small/Mid Growth category, AllianzGI International Small-Cap Fund Class I Shares received 3 stars/108 funds (3 years) and 3 stars/98 funds (5 years) and 4 stars/60 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.



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

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