Allianz Income and Growth Fund Karen Chen, CFA, Senior product specialist, Allianz global investors 1. What is the outlook for the fixed income space now? - Economies are emerging from a deflationary environment; particularly in US, momentum is picking up - Many forward looking indicators like manufacturing/services are also trending higher - Trump administration promote pro-growth and pro reflationary policies which the interest rate market is already starting to reflect that already - Rates will continue to trend higher, so investors should avoid asset classes with long duration or high interest rate sensitivity 2. What is the investment approach for Allianz Income and Growth? - 3 sleeve approach with the aim to provide constant stream of income - The fund gives investors asymmetric risk return profile. - Investors will be participate with market upside and dampen volatility on the downside 3. The Fund has seen great performance since inception. What are the key attributes of achieving this commendable result? - Investment team and the investment process - The team has worked together for 16 years and have expertise in combining tradition bond management approach with a bottom up credit selection process - Selection will include selecting companies that have improving business outlook with substantial earnings - 3 sleeve approach help them invest into most attractive part of the company 4. Why should investors include such a fund into their portfolio? - Its increasingly challenging for clients to meet their long term income objectives. - The fund generates lower volatility, with a steady stream of income to allow investors achieve their long term investment objective.