Reason To Invest  

Market Insights

1. High Yield Bonds: One of the sources offering highest yield globally

• High yield bonds remain as one of the highest yielding fixed income alternatives. Compared to the depressed yields globally, US high yield remains an attractive asset class.
   
• US high yield bonds could potentially contribute from both a diversification and a relative performance perspective, offering a compelling yield opportunity compared to negative and depressed yields globally with lower interest-rate sensitivity.

2. Convertible Bonds : 
Potential for upside participation and cushioning volatility 

• A convertible bond is a fixed-income debt security that yields interest payments, but can be converted into common stock at the holders’ option. Its debt and equity feature allows investors to participate in upside potential of the equity markets, while cushioning 
  against potential downside volatility.
   
• After the March sell-off, many convertible bonds have approached their bond floors, which means downside risk should be much more contained going forward. When the underlying equities recover, convertible bonds will be well-positioned to participate in the upside.

Total return convertibles aim to participate in the upside potential of the equity market, while limiting exposure to downside volatility.

Hypothetical example-not representative of any specific convertible. Convertibles involve the risk factors of both stocks and bonds. They fluctuate in value with the price changes of  the underlying stock. If interest rates on the bonds rise, the value of the corresponding convertible will fall. Funds that invest in convertibles may have to convert the securities before they would otherwise, which may have an adverse effect on the Fund’s ability to achieve its investment objective. Source: Allianz Global Investors. Data as at 31/6/2016

3. Equities : Earnings may have troughed

• After bottoming in 2020, we expect corporate profits to potentially reaccelerate in 2021.
  
  
• US companies are well positioned to directly benefit from the Federal Reserve's programs and US government fiscal support. Looking forward, positive fundamental and economic change at the margin could provide support for US equities.

Fund Features

1. Potential income opportunities available

• The Fund’s AM share classes aim to pay monthly dividend (yields are not guaranteed, dividend may be paid out from capital).
  Note : It helps investors to capture potential source of income.
   
• Since the inception of the Fund (Class AM (USD) Dis.) in October 2012 to end of January 
  2021, it has achieved a historical average annualized dividend yield of approximate 8%.
  Note : i Monthly dividend may comprise of both income and/or realized gains and will vary depending on market conditions.

2. Exposure to income and growth potential

• The chart demonstrates an example of an investment of USD 10,000 in Allianz Income and Growth – Class AM (USD) Dis., which grew 107.41% since launch (16 October 2012) till 31 January 2021, with dividend re-invested.

3. Position for investment opportunities

• The Fund’s structure seeks to participate potential income and capital appreciation while helping to moderate downside risk.
  
  
• US economic growth in 2020 rode on the back of continued and unprecedented monetary policy and fiscal stimulus. Improving economic data and vaccine hopes may have helped offset geopolitical tensions and surging virus cases.