ALLIANZ PNB LIFE INSURANCE, INC. | www.allianzpnblife.
ph
31 MARCH 2022
Dollar Income and Growth
Dividend-Paying Fund
RISK RATING
Investment Objective
To achieve long term capital appreciation
and income by investing primarily in a
combination of common stocks and other
equity securities, debt securities and
convertible securities
FUND DETAILS:
Inception Date 19 Jun 2018
Fund Manager of
Underlying Fund Allianz Global Investors (AGI)
Fund Currency USD
Fund Size USD 660.60 Million
Management Fee 1.95% p.a.
Risk Classification
The Fund is suitable for investors with a
moderately aggressive profile or for those who
take medium to long - term views. As a marked
-to-market Fund, its net asset value and total
return may fall or rise as a result of interest rate
movements and stock price movements. On
redemption of units, a policyholder may receive
an amount less than the original amount
invested. Prior to investment in the Fund, the
policyholder shall undergo a client suitability
assessment procedure to determine whether
the Fund is appropriate for him considering his
investment objective, risk tolerance,
preferences and experience.
Market Commentary
The market’s defensive tone persisted into mid-
March before sentiment reversed higher into
month-end. US equities and US convertible
securities recorded gains while high-yield
bonds closed lower for the period.
Geopolitical risks caused crude oil to spike
higher and inflation expectations to rise
further. Against this backdrop, US Treasury
yields and rate hike projections jumped.
Investor confidence improved over the back
half of the month concurrent with the US
Federal Reserve’s (Fed’s) rate decision, de-
escalation optimism and easing crude oil
prices.
As widely expected, the Fed raised rates by 25
basis points (bps) to a range of 0.25% to 0.50%.
Policymakers forecasted a total of seven hikes
in 2022 and three in 2023 with quantitative
tightening to commence at “a coming
meeting”. Meanwhile, markets were pricing in
the equivalent of nine hikes this year as of
month-end.
US Treasury yields surged but a sharper move
at the short end caused the curve (2s10s) to
flatten materially. The 2-year, 5-year and 10-
year yields stood at 2.28%, 2.42%, and 2.33%,
respectively.
In economic terms, payrolls rose, and
manufacturing and services surveys remained
in expansionary territory. On the other hand,
inflation accelerated, negatively impacting
consumer sentiment and pressuring real
wages.
Crude oil (WTI) traded above USD 130 before
settling at USD 100/barrel.
Latest NAVPU 1.027115
Initial NAVPU 1.000000
Highest NAVPU (11.09.2021) 1.145309
Lowest NAVPU (03.24.2020) 0.733313
Pricing / Valuation Daily
Market Outlook
The market outlook remains uncertain amid a
growing list of concerns: positive but
decelerating economic growth, healthy
corporate profitability but slower earnings
growth, Fed tightening, yield curve flattening,
high inflation, and geopolitical angst, among
others.
Against this backdrop, risk assets sold off
sharply to start the year. Equities declined the
most with the Nasdaq Composite Index
declining -22% from its November peak to its
March trough. At this year’s low, convertible
securities were down -11% on a year-to-date
basis. Since 2008, the worst year for the asset
class on an annual basis was 2011 at -5.2%.
Year-to-date through mid-March, high yield
fell -6% which would mark the weakest annual
performance since 2008, surpassing 2015’s -
4.6% loss. These drawdowns and comparisons
suggest the abovementioned risks are closer to
being priced in. The quarters ahead will
determine if the worst has already passed, or
further declines await.
It is clear that today’s investing environment is
characterised by high uncertainty, low yields,
fears of both equity and rate volatility, and
rising inflation which can erode wealth. The
strategy is a solution designed to address these
risks, aiming to provide high monthly income,
the potential for capital appreciation, less
volatility than an equity-only fund, and a low
correlation to rate-sensitive investments.
Performance Overview

Performance History Year To Date 1 Year (YoY) 3 Years (YoY) 5 Years (YoY) Since Inception
Absolute -8.32% -3.11% 9.00% N/A 2.71%
Annualized N/A -3.11% 2.91% N/A 0.71%

NAVPU Since Inception

1.10

1.00

0.90

0.80

0.70
Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21

Portfolio Analysis

Asset Allocation

Allianz Income & Growth

97.2%
Fund

Cash/Short-Term
2.8%
Deposits

IMPORTANT NOTICE:
This document is for information purposes only. This does not constitute an offer or a solicitation to buy or
sell any investment referred to in this document. The information in this publication is based on carefully
selected sources believed to be reliable but we do not make any representation as to its accuracy or
completeness. Any opinions herein reflected are good as of this date but may be subject to change without
prior notice. Investment or participation in the Fund is subject to risk and possible loss of principal, and is
not insured by the Philippine Deposit Insurance Corporation (PDIC). Losses, if any, shall be for the account
and risk of the Trustor/Participant. Past performance is not indicative of future performance.