Traditional stock/bond allocations may contain hidden risks, making them particularly vulnerable to severe market shocks. The Allianz Global Investors Target-Date Funds go beyond traditional asset classes and seek to align risk exposures directly with investors' desired outcomes.
Portfolio assets are divided into two categories:
1) Return-generating assets
that emphasize inflation-adjusted capital growth, including small- and large-cap US and international stocks, high-yield and emerging-market bonds and "real," or inflation-hedging, assets such as commodities and real estate.
2) Defensive assets
designed to preserve principal, provide current income and manage volatility, such as cash equivalents, short-term and core US bonds, sovereign bonds and Treasury Inflation Protected Securities (TIPS).
Within these categories, appropriate mutual funds are selected from a wide range of funds from Allianz Global Investors, as well as from carefully chosen third-party open-end mutual funds and exchange-traded funds.