• Members of the Portfolio Management Team adhere to a strict value discipline, seeking fundamentally sound companies seen as undervalued.
• Employs a disciplined investment process that combines quantitative stock screening with fundamental research.
• Broad industry diversification may help reduce risk.

• Screen for positive fundamentals-Apply a screen for positive fundamental characteristics to a universe of approximately 800 stocks.
• Conduct in-depth research and analysis-Research each of the remaining 150-200 possible investments, looking for companies with low price-to-earnings multiples, dividend yields, and positive prospective earnings, among other factors.
• Restrict industry concentrations-Promote portfolio diversification by limiting exposure to any one industry to 10% of portfolio assets.
• Construct portfolio-Select approximately 35-50 of the most attractive securities identified, diversified across industries.
• Regularly monitor for buy and sell candidates-Continually repeat the research process to identify new buy and sell candidates. Generally, sell a stock when an alternative stock with strong fundamentals demonstrates a lower price-to-earnings ratio, a higher dividend yield, or other qualitative metrics.

Potential of Undervalued Stocks

Investors often focus on a few high growth sectors, allowing strong opportunities in other industries to go unnoticed. Allianz NFJ Mid-Cap Value Fund may be a beneficial way to invest in these undervalued stocks.

Expert Management
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.

Risk Management
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 expects each stock in Allianz NFJ Mid-Cap Value Fund to pay a dividend-a characteristic they believe is an important sign of financial stability.

Ben Fischer, CFA, is Managing Director and Portfolio Manager of NFJ Investment Group. A founding partner of NFJ, Mr. Fischer's experience in the value sector began in 1966.

Thomas W. Oliver, CPA, is a Portfolio Manager who joined NFJ in 2005. Prior to this he was a manager of corporate reporting at Perot Systems, and before that was an auditor with Deloitte & Touche. He is a CPA.

Jeffrey Partenheimer, CFA and CPA, is a Managing Director and Portfolio Manager at NFJ Investment Group.  His experience in financial analysis, portfolio management and large corporate finance began in 1985.

Dallas, Texas

NFJ employs a deep value equity investment style that focuses on dividends, discipline and diversification. Over the years, the firm's strict adherence to this approach has helped it to deliver consistent results for investors with lower-than-average risk.