Allianz Global Investors
LifeCycle
Investing.
Changes with the seasons
of your life.
Understand. Act.
LifeCycle Investing
LifeCycle investing
A dynamic LifeCycle approach actively reviews and reallocates your
investments, ensuring you are invested in the right funds at the right time.
What is LifeCycle Investing?
Maintenance free option – No need for action from the
individual
• Initial Investment: A suitable portfolio is selected for your
start allocation (diversification of assets and mutual funds).
•
Over time: Your allocation is adjusted throughout the
different stages of your life; until retirement and thereafter.
•
Volatile Markets: Portfolios are diversified to stabilize the
value during volatile markets.
•
Delivering simplicity - Let the investment professionals do
the work for you.
Asset Allocation
Sample allocation to Equity and
Fixed Income over time
30
Suitable risk profile over time
• Professional management of risk over time, decreasing your
risk as you approach retirement.
•
Diversification of risk over different asset classes and
mutual funds: currently investing in 6 funds in total (4
equity, 2 fixed income).
•
Regular review of investments over time (asset classes,
allocations, mutual funds).
•
Risk management and diversification are also applied
throughout your retirement.
•
Professional rules-based approach reduces investment
biases, taking the emotion out of investing.
20
10
Individualization
• Your portfolio’s glide path is tailored to your characteristics
e.g. years to retirement, salary, contribution, education, etc.
•
As your circumstances change, this is taken into
consideration and your glide path is adjusted automatically
as you approach (planned) retirement.
Why is it important?
As the world changes, so do the markets and so should your
investments. At the same time, your investment needs change as
you approach retirement. When it comes to retirement planning,
making the right investment decisions at the right time is key.
The investment professionals at risklab can help you get the most
out of your money to give you the best chance of a prosperous
retirement.
2
0
Years to
retirement
Equity
Fixed Income
LifeCycle Investing
Sample factsheet
In this sample back test, we specified an individual’s starting age,
retirement date and monthly contributions to produce a LifeCycle profile
for them.
Their account was then invested in a mix of
Equity and Fixed Income funds. This fund
mix was then re-allocated on a semiannual basis to give them tailored dynamic
LifeCycle allocation over time.
Start Date
30 June 2006
20
Monthly Contribution
$1,125.00
LifeCycle performance
LifeCycle Performance
60%
20%
Value
Years to retirement
80%
40%
Plan member characteristics
Parameter
Fund Weights
100%
Gross of fees
Average Return p.a.
7.3%
Volatility p.a.
9.7%
0%
Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun
06 06 07 07 08 08 09 09 10 10 11 11 12
Allianz US Equity
PIMCO GIS Total Return
Bond Fund
Allianz Europe Equity Growth
Allianz Japan
PIMCO GIS Global
Allianz Emerging Asia
Bond Fund
Funds subject to change by Board decisions.
Accumulation Glidepath
100%
80%
60%
Key Information
40%
Weight Equity Portfolio
How does it work?
The aim of LifeCycle Investing is to achieve
the appropriate balance between
maximising the growth potential of your
retirement money whilst keeping it at a
suitable level of risk. A dynamic LifeCycle
0
5
10
15
40
0%
20
In addition to individual fund fees.
1
20%
25
USD
30
Currency
0.15%1
35
Fees
Weight Fixed Income Portfolio
approach actively reviews and reallocates your investments, ensuring
you are invested in the right funds at the right time. LifeCycle Investing
distributes your savings across 6 different types of funds at different
times to try to maximise the return on your investments over your life
time. Generally, it converts the investments from higher-risk/ higherreturn funds to lower-risk/more stable return funds as you approach
retirement.
The hypothetical performance and simulations shown are for illustrative purposes only and do not represent actual
performance; they are not a reliable indicator for future results. Please see important information regarding backtestings and hypothetical or simulated performance data on page 4
3
Important information
Investing involves risk. The value of an investment and the income from it may fall as
well as rise and investors may not get back the full amount invested.
LifeCycle performance represents the result of the returns of the underlying funds during the period
shown, weighted according to the accumulation glidepath.
The volatility of fund unit prices may be increased or even strongly increased. Past performance is not a
reliable indicator of future results. If the currency in which the past performance is displayed differs from
the currency of the country in which the investor resides, then the investor should be aware that due to
the exchange rate fluctuations the performance shown may be higher or lower if converted into the
investor’s local currency.
Back-testings and hypothetical or simulated performance data has many inherent limitations only some of
which are described as follows:
(i) It is designed with the benefit of hindsight, based on historical data, and does not reflect the impact that
certain economic and market factors might have had on the decision-making process, if a client’s
portfolio had actually been managed. No back-testings, hypothetical or simulated performance can
completely account for the impact of financial risk in actual performance.
(ii) It does not reflect actual transactions and cannot accurately account for the ability to withstand losses.
(iii) the information is based, in part, on hypothetical assumptions made for modeling purposes that may
not be realized in the actual management of portfolios.
No representation or warranty is made as to the reasonableness of the assumptions made or that all
assumptions used in achieving the returns have been stated or fully considered. Assumption changes may
have a material impact on the model returns presented. The back-testing of performance differs from actual
portfolio performance because the investment strategy may be adjusted at any time, for any reason.
Investors should not assume that they will experience a performance similar to the back-testings,
hypothetical or simulated performance shown. Material differences between back-testings, hypothetical or
simulated performance results and actual results subsequently achieved by any investment strategy are
possible.
This is a marketing communication. Issued by Allianz Global Investors Europe GmbH, www.
allianzglobalinvestors.eu, an investment company, incorporated in Germany, with its registered office at
Mainzer Landstrasse 11-13, D-60329 Frankfurt/Main, authorized by Bundesanstalt für
Finanzdienstleistungsaufsicht (www.bafin.de). The information contained herein is confidential. The
duplication, publication, or transmission of the contents, irrespective of the form, is not permitted.
risklab is the investment and risk solutions advisor of Allianz Global Investors (AllianzGI) and is part of
AllianzGI´s global solutions organization. risklab provide its services to renowned national and international
institutional investors such as pension funds, corporate clients, family offices, wealth managers and mutual
funds. Allianz GI is the investment arm of Allianz SE, a multi-national financial services company.
Copyright © 2012 Allianz Global Investors
12-10925 | November 2012
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer
and/or its affiliated companies at the time of publication. The data used is derived from various sources, and
assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness
is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless
caused by gross negligence or willful misconduct. The conditions of any underlying offer or contract that
may have been, or will be, made or concluded, shall prevail.