Navigating Market Dynamics on the Road to Retirement
The Allianz Global Investors’ Target-Date Funds go beyond static allocations by seeking to deliver risk mitigation beyond that of its strategic glidepath, as well as the potential to enhance returns during favorable market conditions. This focus on dynamic risk management takes the concept of target date funds one step closer to their true purpose as comprehensive investment vehicles designed to achieve investor’s retirement objectives and managing risk.
Stability amid Market Shifts
Traditional allocations to stocks and bonds have proved particularly vulnerable to severe market shocks. Despite their appearance as risk managed investment options, target date funds were no exception during the global financial crisis, especially for those closest to retirement. It is then that risk mitigation is most important as investor’s nest eggs are the largest and the time left to recover from loss is the shortest.
Strategic Allocation Flexibility
To achieve their objectives, the Funds are managed with the full flexibility to enhance returns or de-risk depending on market conditions. Using this dynamic approach, the Fund’s assets are actively allocated among three key components:
Within these components, appropriate investment strategies are selected from a wide range of Allianz Global Investors funds, as well as from carefully chosen third-party mutual funds and exchange-traded funds. When combined in one portfolio, our proprietary dynamic asset allocation approach can help achieve a meaningful, positive impact on an investor’s ability to realize their retirement objectives.