Model Performance Disclosures:
The Annual Income Payment Streams and Nominal Deferred Annuity Payments of the Allianz DCDB™ Benchmark (“DCDB”) reflect model performance an investor may obtain if the investor invests in the manner and timing presented by the DCDB™ and does not represent returns that any investor has actually attained.
Certain assumptions have been made for modeling purposes and may not be realized. No representation or warranty is made as to the reasonableness of the assumptions made or that all assumptions used in arriving at the projected returns have been stated or fully considered. Model returns have many inherent limitations and may not reflect the impact that material economic and market factors may have on the decision-making process if client funds are or were actually managed in the manner shown. Actual performance may differ substantially from the model performance presented, especially if the actual rate of inflation differs from the projected rates of inflation disclosed in the DCDB calculation. Changes in the assumptions may have a material impact on the model returns presented. Other periods selected may have different results, including losses. The DCDB™ is designed to project periodic cash flows, and accordingly does not reflect the reinvestment of dividends. There can be no assurance that the DCDB™ will achieve profits or avoid incurring substantial losses. Past performance is no guarantee of future results.
Allianz Global Investors Solutions LLC does not presently offer investment advisory services with respect to the securities and insurance products that compose the DCDB™.
P-Solve Cassidy does not presently offer investment advisory services with respect to the securities and insurance products that compose the DCDB™.
Relevant Investment Risk Disclosures:
Treasury Inflation-Protected Securities (“TIPS”) are inflation-linked bonds issued by the U.S. Government. Although certain U.S. Government securities, including TIPS, are backed by the full faith of the government, portfolios that invest in such securities are not guaranteed and will fluctuate in value. A laddered TIPS portfolio is non-diversified, and concentrates its assets in a small number of issuers. During periods of rising inflation the amount of the monthly distribution of a laddered TIPS portfolio is expected to increase, and during periods of deflation the amount of the monthly distribution is expected to decrease. The value of most fixed income portfolios is impacted by changes in interest rates. Fixed income portfolios with longer durations tend to be more sensitive and more volatile than portfolios with shorter durations; bond prices generally fall as interest rates rise.
Deferred annuity contracts and certificates are guaranteed investment contracts and are general obligations of an insurance company. A deferred annuity is a structure under which the purchaser agrees to pay a given amount of money to an insurer (either in a lump sum or in installments) and the insurer promises to pay interest at a guaranteed rate (either fixed or variable) for the life of the contract. Some deferred annuities provide that the insurer may periodically pay discretionary excess interest over and above the guaranteed rate. Certain annuities may have features that permit redemption by the issuer at a discount from par value. Generally, deferred annuities are not assignable or transferable without the permission of the issuer, and may partially or completely limit an investor’s ability to access capital invested in the annuity. The holder of a deferred is dependent on the creditworthiness of the issuer as to whether the issuer is able to meet its obligations. There are charges and expenses associated with annuities, which may include contract fees, transactions fees, early withdrawal penalties and deferred sales charges for early withdrawals. Fixed deferred annuities are subject to inflation risk.