Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today the launch of the AllianzGI PerformanceFee Fund suite of products offering a performance fee structure in which the management fee goes to zero if the funds don’t beat their benchmarks over a rolling 12 month performance period.

As the second longest bull market run in history continues, investors have relied on passive investment strategies for easy access to beta. With stretched equity market valuations and a rising rate environment on the horizon, investors will need to look at active management to generate alpha to reach their investment goals – but active at an attractive price.

The AllianzGI PerformanceFee Fund series offers an innovative performance-based structure that utilizes a fulcrum fee. While fulcrum fees are not new in the US – they have been used by open-end funds for decades – the AllianzGI suite of funds sets itself apart in that the minimum management fee goes to zero if the funds don’t outperform their benchmark over the performance period. These products bring an established institutional fee structure to the retail market.

“Investors are demanding a new value proposition from active managers that proves their ability to deliver returns above the benchmark,” said Douglas Eu, CEO US for AllianzGI. “We are confronting this challenge with a shared value approach that puts clients first and more closely aligns our fees with outperformance.”

The new PerformanceFee suite includes three outcome-oriented funds seeking to address multiple investor needs. The funds – AllianzGI PerformanceFee Structured US Equity, AllianzGI PerformanceFee Structured US Fixed Income Fund and the AllianzGI PerformanceFee Managed Futures Strategy Fund – offer access to Core Equity, Fixed Income and Absolute Return categories respectively.

About Allianz Global Investors

Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have more than $583 billion in AUM for individuals, families and institutions worldwide and employ over 650 investment professionals.

At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.

Data as of 30 September 2017

Disclaimer:

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. This and other information is contained in the fund’s prospectus and summary prospectus, which may be obtained by visiting us.allianzgi.com and should be read carefully before investing.

A Word About Risk: The market prices of securities owned by a Fund may go up or down, sometimes rapidly or unpredictably. A security in the portfolio may not perform as anticipated if the market does not agree with the portfolio manager’s value assessment. Derivative prices depend on the performance of an underlying asset; derivatives carry market, credit and liquidity risk. Leverage, including borrowing, will cause the value of a Fund’s shares to be more volatile than if the Fund did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of a Fund’s portfolio securities.

From the Funds‘ launch through December 31, 2018 management fees will be capped at half the maximum fee ( the „Base Fee“ ). Starting January 1, 2019 the management fee will range based on rolling 12 month net excess returns relative to the benchmark. The Acquired Fund Fees and Expenses is paid by shareholders and is not subject to a waiver or relative performance goal.

The material contains current opinions, which are subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Forecasts are inherently limited and should not be relied upon as an indicator of future performance. Diversification does not guarantee a profit or protect against a loss.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171219005678/en/