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All data as of 03/31/13, unless otherwise indicated.
Managed Accounts

NFJ International Value

Objective
A managed account seeking long-term capital appreciation through investment in undervalued common stocks of mid- and large-capitalization non-U.S. companies.

Strategy Overview

Highlights

  • Adheres to a strict value discipline, seeking fundamentally sound foreign companies seen as undervalued.
  • Employs a disciplined investment process that combines systematic stock screening with fundamental research.
  • Invests in dividend-paying stocks, which have historically offered lower volatility and may currently benefit from tax legislation changes. (Source: Ford Investor's Service, NFJ Investment Group)
 

Process & Philosophy

RISK-AVERSE PHILOSOPHY

NFJ adheres to a strict value philosophy, seeking undervalued, fundamentally sound companies. What sets the firm apart from other value-oriented managers is its emphasis on risk management. To temper the risks associated with equity investing, NFJ maintains broad industry diversification and requires that each stock in its International Value portfolios pay a dividend-a characteristic they believe is an important sign of financial stability. 

DISCIPLINED INVESTMENT PROCESS

NFJ's investment process enables it to identify international stocks offering attractive valuations and long-term growth potential. At the same time, the process seeks to manage total portfolio risk. 

BUILDING THE PORTFOLIO

NFJ follows a disciplined process to identify the most attractive stocks.
  • Screen approximately 1,200 ADRs of $1 billion and above, and classify into approximately 50-60 industries.
  • Using fundamental research, select one candidate from each industry that has a low price-to-earnings ratio (P/E) for that industry and seeks to invest primarily in dividend paying securities.
  • Rank candidate stocks by P/E (low to high) and selects approximately 40-60 stocks.
  • Determine weightings (between 1%-4% at time of investment) by value factors such as low P/E, high yield, low price-to-book, and price momentum.
  • Continually repeat the research process to identify new buy and sell candidates. Sell a stock when an alternative stock with equally strong fundamentals demonstrates a substantially lower P/E ratio and/or a substantially higher dividend yield.
 
 

Why Invest in this Strategy

Expanding Opportunities Abroad

Investors often focus too heavily on domestic stocks, allowing attractive opportunities abroad to go unnoticed. NFJ's International Value managed account portfolio is a convenient way to invest in these undervalued stocks. 

Experienced Specialists

NFJ Investment Group has a strong track record and consists of a team of managers dedicated to a pure, deep value approach to equity investing. Each of these professionals participates in the investment process, serving as portfolio manager and securities analyst. This team approach means broader resources are committed to portfolio construction.
 
This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

Individual results may vary as a result of market conditions, trading costs, and other factors which may be unique to each account. Individual account holdings will vary depending on the size of an account, cash flows and account restrictions. At any time an individual account managed in this strategy may or may not include securities held by another portfolio. Consequently, any particular account may have portfolio characteristics and performance that differ from another individual account in this strategy.

The managed account strategies described here are offered by Allianz Global Investors U.S. LLC and are available exclusively through financial professionals. Participation is restricted to accounts with a minimum asset level and may not be suitable for all investors.
Allianz Global Investors Managed Accounts LLC merged into Allianz Global Investors U.S. LLC on January 1, 2013. Allianz Global Investors U.S. LLC manages the NFJ International Value accounts using a model portfolio developed by the sub-advisor NFJ as a guide. While Allianz Global Investors U.S. LLC generally intends to follow NFJ''s recommendations, as the investment manager it has the discretion to accept or reject any investment recommendation and to deviate from the model portfolio. For certain sponsor firm accounts, Allianz Global Investors U.S. LLC provides the sub-advisor''s model to the sponsor or the sponsor's designee for discretionary implementation.

A Word About Risk: 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. A security in the portfolio may not perform as anticipated if the market does not agree with the portfolio manager's value assessment. Investments in smaller companies may be more volatile and less liquid than investments in larger companies. P/E is a ratio of security price to earnings per share. Typically, an undervalued security is characterized by a low P/E ratio, while an overvalued security is characterized by a high P/E ratio. Diversification does not ensure against loss.
 


CLICK TO VIEW OUR BUSINESS CONTINUITY PLAN, PROXY POLICIES & VOTING RECORDS, OR OUR PRIVACY POLICY.

Allianz Global Investors U.S. LLC, 1633 Broadway, New York, NY 10019-7585.
 
AGI-2012-12-27-5417
Copyright AllianzGI 2013. All Rights Reserved.
Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED

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