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 Small-Cap 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 account 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: 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. 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.

Market capitalization is the value of a corporation, where market cap is calculated by multiplying the number of outstanding shares by the current share price. 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.