iarc retirement plan investment guide...iarc international retirement plan investment guide page 4...

International Agricultural Research Centers International Retirement Plan

Investment Guide

Contents

Important Risk Notice ............................................................................................. 1

About this Guide ..................................................................................................... 1

Understanding Risk ................................................................................................. 2

Risk and Reward ..................................................................................................... 2

Diversification ......................................................................................................... 5

Your Investment Options ........................................................................................ 6

Share Classes and Distributions .............................................................................. 6

Money Market and Liquidity Funds ........................................................................ 8

Ultra-Short-Term Funds ........................................................................................ 10

Bond Funds ........................................................................................................... 11

Global Equity Funds .............................................................................................. 15

North American Equity Funds ............................................................................... 16

European Equity Funds ......................................................................................... 17

Asian Equity and Japanese Equity Funds ............................................................... 18

Emerging Markets Equity Funds ............................................................................ 20

Socially Responsible Investing (SRI) Funds ............................................................ 21

LifeCycle Concept .................................................................................................. 22

Charges ................................................................................................................. 23

Fund Charges Table ............................................................................................... 26

Further information .............................................................................................. 28

Investment Research ............................................................................................ 29

Important Information .......................................................................................... 32

Plan Administrator contact information ............................................................... 33

IARC International Retirement Plan Investment Guide Page 1 of 33

Important Risk Notice

It is important to note that past performance is not an indicator of future performance. The value of any investment and the income from it can fall, as well as rise, and you may not get back the amount originally invested. You should particularly note the following:

• No investment is risk free and all investments are subject to the possibility of large and sudden falls in value.

• You could get back nothing at all.

• The charges, expenses, and taxation of the underlying funds in this guide are varied and performance may differ.

• Contributions to the plan are made in U.S. dollars, so investing in non-U.S. dollar denominated funds will expose you to currency exchange-rate fluctuations.

• When investing in developing or emerging markets or in specialist funds, investors should be prepared to accept a higher degree of risk than for a fund with a broader investment objective. Some funds contained in this guide may not be appropriate for all investors due to the potential investment risks associated with these markets or asset classes.

• Neither AIARC nor Allianz Global Investors can give you advice on the funds to select for your personal investment account. You should ensure that you understand the risks involved with investing in these funds before making your investment decision.

• Nothing contained in this guide should be construed as guidance to the suitability of the markets or asset classes mentioned; neither is it intended as an offer to invest.

• Anyone considering investing in these funds should always seek professional guidance.

About this Guide

This guide provides you with information about the International Association of Agricultural Research Centers (IARC) International Retirement Plan (the Plan), including the variables that you should consider when making investment decisions such as your personal circumstance, risk tolerance, investment time horizon, as well as the risks associated with investing and the strategies for lessening these risks.

The funds offered are based on the recommendation of an external investment adviser. The available funds provide access to a broad range of asset sectors from quality fund managers to include both actively managed and passive index-tracking funds.

If you do not want to make a specific decision regarding fund selection, but still want to have your retirement account actively managed, the LifeCycle Concept is an option.

Detailed information about each fund can be obtained via the factsheet link provided with each fund summary in this guide and on the IARCPlan.org website.

Funds in this guide have been categorized by type, including Money Market, Bond funds, Global Equity funds, North American Equity funds, European Equity funds, etc. Each fund description outlines management style (active or passive), ISIN Code, and the link to the fund manager’s factsheet.

When saving for retirement, your allocation to each fund impacts your future returns and risk. Choose it carefully, monitor it periodically, and rebalance it when necessary.

https://www.iarcplan.org/


Do not evaluate your individual fund investments in isolation – think instead of your overall portfolio. The reason for holding a portfolio is that gains from one investment may help offset losses in another. In the long term, what matters is the total value of your portfolio, not short-term losses in one fund.

Please note that investment decisions are ultimately made by you (in conjunction with your advisers). This guide is intended only to make planning an investment strategy and constructing a portfolio easier.

This guide is not intended to provide advice or act in any way as a recommendation for your investment strategy. The funds offered are not a warranty or a representation of suitability for your individual investment requirements.

The fund information contained within this guide is based on available data published by the individual fund managers.

Understanding Risk

All investments involve taking on risk. It is important that you understand that you could lose some or all of your money when investing. This section discusses some of the basic concepts of investing such as risk and reward, types of risks, and the strategies for reducing exposure to risks.

What level of risk is right for me? The answer depends on your investment time horizon (when you will need the money), your goals, and your risk tolerance (whether you will be able to sleep at night if you purchase a risky investment). Knowing your investment style should make it easier when selecting your investments. In determining your investment style, you should consider the following:

• Generally, investments that have higher risks will also have the potential for higher returns over the long term, while lower-risk investments typically produce lower returns. However, higher-risk investments will also have the potential for greater losses, especially in the short term.

• If you have a long time before you retire, you will have more time to recover from potential market downturns and may want to be more aggressive with your investments. However, you may want to be more conservative if you are closer to retirement.

• Think about the amount of time you want to spend managing your account and learn which investments may require more or less hands-on involvement.

The Plan has a variety of investment options available, and you will have to choose the investments that are best for you based on your investment style and personal circumstances.

Risk and Reward

It is important to understand how risk and reward interact and to determine what investments suit your risk tolerance and personal circumstances.

In investing, risk is measured by volatility, which is defined as how much the value of your investment goes up and down. Specifically, volatility is the rate and magnitude of price changes in an investment over a period of time. If the price moves up and down rapidly and by large amounts over short periods


of time, it has high volatility. If the price almost never changes, it has low volatility. The higher the volatility of an investment. The riskier the investment is considered.

You need to be aware of the types of investment risk and the impact that these risks may have on your investments. Although risks pose a threat, they also offer an opportunity and you need to understand the strategies for mitigating risks so that you can benefit from the potential rewards.

Risk and reward go hand in hand. Generally, higher returns are associated with higher risks. Historically, stocks have provided the highest returns of the various asset classes over most long-term periods, but they have also had the largest price fluctuations. Cash investments have provided a high level of price stability, but they have provided the lowest long-term returns. The chart below shows the primary investment asset types and the potential risks and rewards generally associated with them.

This diagram is for illustration purposes only. It is a simple illustration of the risk and return relationship of different asset classes. Not all asset classes shown are available as options under this Plan.

Investments at the top of the chart offer the potential for higher returns, but this potential comes with a greater risk of losses. Investments at the bottom of the chart are considered safer investments, but have less potential for high returns.


Different types of investment risk There are many different types of investment risks. Some of the key risks are listed below with examples of how to reduce the risks.

Inflation Risk: This is the risk of your money doing nothing. For example, if you deposit money in a savings account and the interest earned is less than the rate of inflation, you will lose purchasing power because the cost of goods and services is rising at a faster rate than the interest you have earned on your deposit.

How to counteract it: This risk may be lessened by investing in assets expected to grow at or above the rate of inflation over the long term, such as stocks or higher-risk fixed-income securities.

Active manager risk: This is the risk that investments underperform due to poor decisions from an investment manager hired to enhance returns.

How to counteract it: The Plan offers a number of investments, both active (with an investment manager choosing investments) and passive (simply tracking a market index such as the S&P 500). This risk can be mitigated by choosing passive funds. In addition, the Plan’s trustee, which acts to oversee the well-running and suitability of the Plan, regularly reviews the performance of the active managers and offers investments from more than one active manager to avoid overexposure to one organization.

Market risk: This is the risk that the general prices of your stocks and bonds will fluctuate up or down dramatically. This may be due to country-specific factors, currency fluctuations, companies, or governments defaulting on their debt or other factors.

How to counteract it: This risk may be reduced by holding an investment for a long period of time (such as 10 years), investing in a range of asset classes, or by investing in asset classes with lower associated risk thereby reducing the likely extent of any potential fluctuation (and accepting the potential lower return).

Country risk: The risk of an adverse influence on investment values from political intervention or some other external factor (e.g. terrorism).

How to counteract it: The Plan offers a number of diversified global funds as well as regional funds, with the majority investing predominantly in developed markets.

Concentration risk: The risk of an adverse influence on investment values from the concentration of holdings.

How to counteract it: The Trustee makes clear the benefits of investment diversification in the Investment Guide available to participants. The Plan offers two well-diversified LifeCycle Concepts alongside a range of funds that invest in both different regions and asset classes.


Risk ratings It is important to understand the risk characteristics of the funds that you choose to invest in. Morningstar (www.morningstar.co.uk) and the Synthetic Risk Reward Indicator (SRRI, as developed by the Committee of European Securities Regulators) are independent third-party resources that can assist you in assessing the risk (and return) characteristics of the available fund options.

Morningstar Risk and Return Morningstar uses a detailed methodology to determine a fund’s risk and return score. Funds are scored from 1 to 5.

Score Word label

5 High

4 Above Average

3 Average

2 Below Average

1 Low

Note that the word label “High” is generally good for Morningstar return, and “Low” is generally good for Morningstar risk. More information about Morningstar’s risk and return scores can be found at the following location: https://www.morningstar.com/company/morningstar-ratings-faq

Synthetic Risk Reward Indicator (SRRI) The SRRI is calculated using the volatility of a share class’ performance over a five-year period. Each fund will be allocated a risk category from 1 to 7, where 1 is the lowest level of risk and 7 the highest. While no investment is “risk free,” this can help you decide how much risk you are willing to take within your portfolio.

Typically lower rewards Typically higher rewards

Typically lower risk Typically higher risk

1 2 3 4 5 6 7

More information about the methodology used in calculating the SRRI scores can be found at the following site: https://www.esma.europa.eu/sites/default/files/library/2015/11/10_673.pdf

Diversification

What is diversification? Diversification is the strategy of spreading an investor’s money among various investments, hoping that if one investment loses money, the other investments will do well and make up for those losses. It can be summed up by the proverb: “Don’t put all your eggs in one basket.” Diversification cannot guarantee

http://www.morningstar.co.uk/

https://www.morningstar.com/company/morningstar-ratings-faq

https://www.esma.europa.eu/sites/default/files/library/2015/11/10_673.pdf


that your investments will not suffer if the market drops, but it can improve the chances that you will not lose money or, that if you do, it may not be as much as it would be if you were not diversified.

An investment portfolio can be diversified in different ways, particularly by asset class and geographical location. The range of investment options offered by the Plan allows participants to build their own diversified portfolio if desired.

You should understand the risks before investing and always seek professional financial advice.

Your Investment Options

You can choose from a range of funds that includes different asset classes, currencies, management styles, and so on. These funds have been carefully selected by the Plan Directors based on recommendations from a professional investment adviser. Please note that the Directors’ selection of a fund is not intended to act in any way as a recommendation for your investment strategy and you should choose funds that are appropriate for your personal circumstances.

You can change your investment decision at any time by executing a fund switch via the IARCPlan.org website.

Time horizon Before you make any investment, you should always determine the length of time that you can keep your money invested. For example, if you have money to invest today but need it in one year for a down payment on a new house, investing the money in higher-risk equities may not be the best strategy. The riskier an investment is, the greater its volatility or price fluctuations. Thus, if your time horizon is relatively short, you may end up selling your investments at a significant loss.

With a longer time-horizon, you have more time to recoup any possible losses allowing you to be, theoretically, more tolerant of higher risks. For example, if that down payment is for a house you are planning to buy in 10 years, you may want to invest the money in higher-risk funds because there is more time available to recover any losses and you have more choice over when to sell your fund at an opportune time.

Style of investing — Active versus passive management A fund that is actively managed has an individual fund manager that uses research and investment strategies to make investment decisions. With these decisions, the manager aims to generate performance that will beat the fund’s benchmark. A passively managed fund instead mirrors the portfolio of a market index and generates performance in line with that index. For example, the Vanguard U.S. 500 Stock Index Fund aims to replicate the performance of the 500 stocks of Standard & Poor’s 500 Index.

Share Classes and Distributions

There are two types of share class used by the different investment options – the difference relates to how each fund treats investment income (bond coupons and dividends) arising from the investments in each fund.



Accumulation Shares: Dividends are not declared on accumulation shares. The fund’s income is

reinvested into the fund and is reflected in the share price.

Income (Distribution) Shares: Net income is distributed on a regular basis. This is used to

automatically purchase additional shares in the fund.

The price of both accumulation and income share class investment funds will fluctuate on a daily basis, depending upon various factors such as the performance of the underlying assets, and can both rise and fall.


Money Market and Liquidity Funds

Funds within the money market and liquidity sector invest in international, short-term interest-earning securities, such as certificates of deposit, with the aim of providing a flexible and stable alternative to bank deposits for investors.

The primary objective of such funds is capital preservation (i.e. aiming to prevent any falls in value).

SSgA USD Liquidity Fund Institutional USD Accumulation Share Class

About the fund: The fund manager seeks to maintain a high level of liquidity, preserve capital expressed in U.S. Dollars and, consistent with those objectives, earn a return. The investment manager uses credit analysis to identify investments that it believes will provide the greatest stability of capital and the highest probability of repayment.

Share class: Accumulation

Fund Manager State Street Global Advisors Ltd Funds Management Style Active

Fund Category USD Money Market - Short Term Fund Benchmark LIBID USD 7 Day

Trading Frequency Daily Settlement T + 0

ISIN (Morningstar) IE00B1XG4657 Bloomberg SGCMUSA ID

Fund Factsheet* https://www.ssga.com/webapp/cash/uk/funds/IE00B1XG4657/overview.jsp

* Performance figures shown on fund factsheets do not necessarily reflect the same fund charges as those applicable through the Plan.

Goldman Sachs Euro Liquid Reserves Fund Institutional EUR Accumulation Share Class

About the fund: The fund manager seeks to maximize current income to the extent that it is consistent with the preservation of capital and the maintenance of liquidity, by investing in a diversified portfolio of high-quality Euro-denominated money-market securities.


Fund Manager Goldman Sachs Asset Mgmt Intl Management Style Active

Fund Category EUR Money Market - Short Term Fund Benchmark Euro 1 Week LIBID


ISIN (Morningstar) IE00B96CNN65 Bloomberg GSELINT ID

Fund Factsheet* https://www.goldmansachs.com/gsam/docs/funds_international/fund_updates/monthly_fund_updates/mfu_sicav_en.pdf (page 119)


https://www.ssga.com/webapp/cash/uk/funds/IE00B1XG4657/overview.jsp

https://www.goldmansachs.com/gsam/docs/funds_international/fund_updates/monthly_fund_updates/mfu_sicav_en.pdf



Goldman Sachs Yen Liquid Reserves Fund Institutional JPY Accumulation Share Class

About the fund: The fund manager seeks to maximize current income to the extent that it is consistent with the preservation of capital and the maintenance of liquidity, by investing in a diversified portfolio of high-quality Yen-denominated money-market securities.


Fund Manager Goldman Sachs Asset Mgmt Intl Management Style Active

Fund Category Money Market - Other Fund Benchmark 1 Week Yen LIBID


ISIN (Morningstar) IE00BHTFW194 Bloomberg GSYLIAT ID

Fund Factsheet* https://www.goldmansachs.com/gsam/docs/funds_international/fund_updates/monthly_fund_updates/mfu_sicav_en.pdf (page 128)





Ultra-Short-Term Funds

Funds in this category invest in bonds which are due to be repaid very soon. They are considered to have a greater degree of risk and a higher potential return compared to money market and liquidity funds, but these funds are considered less risky than bond funds due to their shorter maturities. Funds in this category aim to provide a return slightly ahead of cash and do not value capital preservation as highly as money-market funds.

Allianz Enhanced Short-Term Euro Institutional EUR Accumulation Share Class

About the fund: The fund aims at generating an above average return with regard to the euro money market. To generate

additional income, the fund can take on exposure to bonds and foreign currencies or corresponding derivatives, even if it does not hold any assets denominated in the currencies concerned. High-yielding securities as well as asset- / mortgage-backed securities (ABS/MBS) may not be acquired.


Fund Manager Allianz Global Investors GmbH Management Style Active

Fund Category Ultra-short EUR Bond Fund Benchmark Euro Overnight Index Average (EONIA)


ISIN (Morningstar) LU0293295597 Bloomberg AGEMMIT LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-enhanced-short-term-euro-it13-eur


https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-enhanced-short-term-euro-it13-eur

https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-enhanced-short-term-euro-it13-eur


Bond Funds

Bond funds can provide balance to an investment portfolio that may otherwise be overly dependent on equities. As equity and bond markets have historically tended to behave differently, participants may view bond investments as an effective way to diversify their portfolio.

Allianz Advanced Fixed Income Global Aggregate Institutional USD Distribution Share Class

About the fund: The fund predominantly invests in a broad range of international government and corporate bonds. The

investment objective is to attain a return in line with yields on the global markets. Up to 20% of fund assets may be invested in bonds rated below investment grade. Emerging markets bonds may be acquired also. The investments in asset- or mortgage-backed securities are limited to a maximum of 20%.

Share class: Income


Fund Category Global Bond Fund Benchmark Barclays Capital Global Aggregate 500 MM Bond Index (hedged into USD)


ISIN (Morningstar) LU1260870800 Bloomberg ALAFGIU LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-advanced-fixed-income-global-aggregate-i-h-usd-usd


PIMCO Global Investors Series plc. Global Bond Fund Institutional USD Accumulation Share Class

About the fund: The fund aims prudently to generate a total return through a combination of both income and capital

growth. The fund invests primarily in a range of investment-grade fixed-income securities (which are loans that pay a fixed or variable rate of interest) issued by companies or governments from around the world. The investment adviser will choose securities with varying repayment dates based on its expectations for interest rate and exchange rate changes. The fund may invest substantially in emerging markets (economies which are still developing). Investment grade securities (as determined by international ratings agencies) whilst potentially producing a lower level of income than non-investment grade securities, are also considered to be of lower risk. The fund may invest up to 10% in non-investment grade securities.


Fund Manager PIMCO Global Advisors (Ireland) Ltd Management Style Active

Fund Category Global Bond - USD Hedged Fund Benchmark Barclays Global Aggregate (USD Hedged) Index


ISIN (Morningstar) IE0002461055 Bloomberg PIMGBAI ID

Fund Factsheet* https://www.pimco.com.sg/en-sg/investments/gis/global-bond-fund/inst-acc


https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-advanced-fixed-income-global-aggregate-i-h-usd-usd

https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-advanced-fixed-income-global-aggregate-i-h-usd-usd

https://www.pimco.com.sg/en-sg/investments/gis/global-bond-fund/inst-acc


Vanguard Global Bond Index Fund Institutional USD Hedged Accumulation Share Class

About the fund: The fund seeks to provide returns consistent with the performance of the Barclays Capital Global Aggregate Float Adjusted Bond Index (the “Index”). The Index includes investment-grade and government bonds from around the world with maturities greater than one year.


Fund Manager Vanguard Group (Ireland) Ltd Management Style Passive

Fund Category Global Bond - USD Hedged Fund Benchmark Barclays Global Aggregate Float Adjusted Bond Index Hedged


ISIN (Morningstar) IE00B18GCB14 Bloomberg VANGBUH ID

Fund Factsheet* https://global.vanguard.com/portal/site/loadPDF?country=es&docId=13281


PIMCO Global Investors Series plc. Total Return Bond Fund Institutional USD Accumulation Share Class

About the fund: The fund aims to maximize total return through a combination of both income and capital growth,

consistent with prudent investment management. The fund invests in a wide range of fixed income securities issued by companies or governments from around the world. The securities will be mostly “investment grade”, as determined by international ratings agencies. The fund may also invest up to 10% in non-investment grade securities. Non-investment grade securities are generally considered to be riskier investments than investment grade, but may pay a higher income.


Fund Manager PIMCO Global Advisors (Ireland) Ltd Management Style Active

Fund Category USD Diversified Bond Fund Benchmark Barclays U.S. Aggregate Index


ISIN (Morningstar) IE0002460867 Bloomberg PIMTRAI ID

Fund Factsheet* https://www.pimco.com.sg/en-sg/investments/gis/total-return-bond-fund/inst-acc


https://global.vanguard.com/portal/site/loadPDF?country=es&docId=13281

https://www.pimco.com.sg/en-sg/investments/gis/total-return-bond-fund/inst-acc


BlackRock U.S. Corporate Bond Index Fund Institutional USD Accumulation Share Class

About the fund: The fund aims to achieve a total return on your investment, through a combination of capital growth and income, which reflects the return of the Citigroup Eurodollar Bond Index, the fund’s benchmark index. The fund invests predominantly in the fixed income securities that make up the fund’s benchmark index.


Fund Manager BlackRock Asset Management (Ireland) Ltd Management Style Passive

Fund Category USD Corporate Bond Fund Benchmark Citigroup Eurodollar Bond Index


ISIN (Morningstar) IE00B1W4R501 Bloomberg BARUSCI ID

Fund Factsheet* https://www.blackrock.com/uk/intermediaries/products/229110/?switchLocale=y&siteEntryPassthrough=true


Threadneedle European Bond Fund Retail EUR Accumulation Share Class

About the fund: The aim of the Fund is to provide income with the potential to grow the amount you invested. The Fund

invests its assets in bonds priced in a range of currencies and issued by governments and companies in Europe (including Eastern Europe), or companies that have significant operations there, or other bonds issued by governments and companies that are priced in euros or other European currencies.


Fund Manager Threadneedle Investment Services Ltd Management Style Active

Fund Category Europe Bond Fund Benchmark BofA Merrill Lynch Pan-Europe Broad Market Index


ISIN (Morningstar) GB00B465TP48 Bloomberg THEBRGA LN

Fund Factsheet* https://factsheets.threadneedle.com/RetailFundFactSheets/GB00B465TP48_EN_IE_RETAILFFS.pdf


https://www.blackrock.com/uk/intermediaries/products/229110/?switchLocale=y&siteEntryPassthrough=true

https://www.blackrock.com/uk/intermediaries/products/229110/?switchLocale=y&siteEntryPassthrough=true

https://factsheets.threadneedle.com/RetailFundFactSheets/GB00B465TP48_EN_IE_RETAILFFS.pdf

https://factsheets.threadneedle.com/RetailFundFactSheets/GB00B465TP48_EN_IE_RETAILFFS.pdf


Vanguard Euro Government Bond Index Fund Retail USD Accumulation Share Class

About the fund: The fund seeks to provide returns consistent with the performance of the Barclay Capital Global Aggregate Euro Government Bond Index, which is a market-weighted bond index of euro-denominated government fixed-income securities. The Index includes investment grade euro-denominated euro zone government bonds with maturities greater than one year. The euro zone is all countries in the European Union that have adopted the euro as their currency.



Fund Category EUR Government Bond Fund Benchmark Barclays Euro Government Float Adjusted Bond Index


ISIN (Morningstar) IE0032369989 Bloomberg VANEGID ID

Fund Factsheet* https://americas.vanguard.com/institutional/mvc/loadImage?country=bs&docId=7493


https://americas.vanguard.com/institutional/mvc/loadImage?country=bs&docId=7493


Global Equity Funds

Investing internationally can help manage risk in a portfolio relating to one particular country’s market. It is hard to tell which country is the best to invest in at a given time as different countries have internal issues, as well as different reactions to global events.

International diversification can be achieved by investing in overseas companies through a pooled investment fund. Investing in stock markets around the world offers access to the growth potential of the major global economies such as the United States, Europe, and Japan, as well as the smaller but potentially higher-return markets across Asia.

Allianz Best Styles Global Equity Institutional USD Distribution Share Class

About the fund: The fund’s investment objective is to attain capital growth over the long term. The fund concentrates on

global equity markets. Exposure to securities from emerging market issuers may not exceed 5% of fund assets. Depending on the market situation, fund management may follow different investment styles when selecting single stocks or may broadly diversify the underlying investment style orientations.

Share class: Income


Fund Category Global Large-Cap Value Equity Fund Benchmark MSCI World Total Return


ISIN (Morningstar) LU1304666990 Bloomberg ALBSWUS LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-best-styles-global-equity-w-usd


Vanguard Global Stock Index Fund Institutional USD Accumulation Share Class

About the fund: The fund seeks to provide long-term growth of capital by tracking the performance of the Morgan Stanley

Capital International World Free Index, a market-capitalization-weighted index of common stocks of companies in developed countries.



Fund Category Global Large-Cap Blend Equity Fund Benchmark MSCI World Index


ISIN (Morningstar) IE00B03HD209 Bloomberg VANGISI ID



https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-best-styles-global-equity-w-usd

https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-best-styles-global-equity-w-usd



North American Equity Funds

North America has one of the world’s largest stock markets and remains home to some of the world’s highest-quality companies and strongest brands. Many of these companies are leaders in their industries and are subject to high standards of corporate governance, which offers a degree of protection to investors. The U.S. economy is among the world’s largest economies and investment in this sector provides exposure to long-term growth opportunities and diversification away from domestic markets.

Allianz Best Styles US Equity Fund Institutional USD Accumulation Share Class

About the fund: The fund concentrates on the stocks of companies domiciled in the USA. Depending on the market situation, fund management may follow different investment styles when selecting single stocks or may broadly diversify the underlying investment style orientations. The fund's investment objective is to attain capital growth over the long-term.



Fund Category US Large-Cap Blend Equity Fund Benchmark S&P 500 Total Return


ISIN (Morningstar) LU0788520384 Bloomberg ALLBSUE LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-best-styles-us-equity-wt-usd


Vanguard U.S. 500 Stock Index Fund Retail USD Accumulation Share Class

About the fund: The fund seeks to track the performance of the Standard & Poor’s 500 (“S&P 500”) Index, a widely

recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies.



Fund Category US Large-Cap Blend Equity Fund Benchmark S&P 500 Total Return


ISIN (Morningstar) IE0002639668 Bloomberg VANUIVI ID



https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-best-styles-us-equity-wt-usd

https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-best-styles-us-equity-wt-usd



European Equity Funds

Europe offers investors one of the largest and most varied markets in the world. It is home to a range of quality companies and industries – from Swedish discount retailers to German car manufacturers. Europe’s varied economic landscape offers a broad range of countries, from established markets to emerging markets. Europe’s variety can provide an attractive source of diversification for investors looking to expand beyond a portfolio of purely U.S. or Asia-based investments.

Allianz Europe Equity Growth Fund Institutional EUR Distribution Share Class

About the fund: The investment policy is geared toward long-term capital growth primarily through positions on European

equity markets. The manager will acquire equities that it considers to represent an equity portfolio oriented toward growth stocks.

Share class: Income


Fund Category Europe Large-Cap Growth Equity Fund Benchmark S&P Europe Large Midcap Growth Net Total Return


ISIN (Morningstar) LU0256881987 Bloomberg RCMEUGW LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-europe-equity-growth-w-eur


Vanguard European Stock Index Fund Retail USD Accumulation Share Class

About the fund: The Fund seeks to track the performance of the MSCI Europe Index (the “Index”). The Index is comprised

of large and mid-sized company stocks in developed markets in Europe.



Fund Category Europe Large-Cap Blend Equity Fund Benchmark MSCI Europe Index


ISIN (Morningstar) IE0002639445 Bloomberg VANEIVI ID



https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-europe-equity-growth-w-eur

https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-europe-equity-growth-w-eur



Asian Equity and Japanese Equity Funds

As a region, Asia presents an investment opportunity for long-term investors who are comfortable with a high degree of investment risk. Several factors combine to build a case for investing in Asian equities, including strong economic growth, improved levels of corporate governance and profitability.

Allianz Emerging Asia Equity Fund Retail USD Distribution Share Class

About the fund: The investment objective is to achieve capital appreciation in the long term. The fund concentrates on

stocks of companies from Asia (ex Japan, Hong Kong, Singapore, Russia and Turkey) or that derive the predominant portion of their profits from Asia.

Share class: Income


Fund Category Asia ex-Japan Equity Fund Benchmark MSCI Emerging Frontier Asia Total Return (Net)


ISIN (Morningstar) LU0348788117 Bloomberg THONPHI LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-emerging-asia-equity-a-usd


Vanguard Pacific ex-Japan Stock Index Fund Institutional USD Accumulation Share Class

About the fund: The fund seeks to provide long-term growth of capital by tracking the performance of the Morgan Stanley

Capital International (MSCI) Pacific ex-Japan Index, which is made up of common stocks of companies located in Australia, Hong Kong, New Zealand and Singapore.



Fund Category Asia-Pacific ex-Japan Equity Fund Benchmark MSCI Pacific ex-Japan Index


ISIN (Morningstar) IE0007218849 Bloomberg VAPEJSI ID



https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-emerging-asia-equity-a-usd



Allianz Japan Equity Fund Institutional USD Accumulation Share Class

About the fund: The investment objective is to achieve capital appreciation in the long-term. The fund will seek to achieve its investment objective primarily through investment in the equity markets of Japan. At least 70% of assets are invested in equities of companies that are incorporated in Japan.



Fund Category Japan Large-Cap Equity Fund Benchmark TOPIX Total Return Index


ISIN (Morningstar) LU0348755371 Bloomberg THONJIA LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-japan-equity-it-usd


Vanguard Japan Stock Index Fund Retail USD Accumulation Share Class

About the fund: The fund seeks to track the performance of the Morgan Stanley Capital International (MSCI) Japan Index,

which emphasizes stocks of companies located in or traded on recognized markets in Japan.

Share Class: Accumulation


Fund Category Japan Large-Cap Equity Fund Benchmark MSCI Japan Index


ISIN (Morningstar) IE0007292083 Bloomberg VANSTOK ID



https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-japan-equity-it-usd



Emerging Markets Equity Funds

Despite the emergence of industrialization, beneficial demographic trends and favorable political reforms in global emerging markets, it is important to understand the risks involved in investing in emerging markets. Political instability, currency fluctuation, or a natural catastrophe can very quickly take its toll on a company’s profitability. Managers of funds that invest in specialist regions, such as global emerging markets, have to manage these risks.

Emerging markets are considered high-risk investments.

Vanguard Emerging Markets Stock Index Fund Retail USD Share Class

About the fund: The fund seeks to track the performance of the Morgan Stanley Capital International (MSCI) Emerging Markets Index, a market-capitalization-weighted index of companies in 25 emerging markets in Europe, Asia, Africa, Latin America, and Russia.



Fund Category Global Emerging Markets Equity Fund Benchmark MSCI Emerging Markets Index


ISIN (Morningstar) IE0031786928 Bloomberg VANEMUI ID





Socially Responsible Investing (SRI) Funds

SRI funds invest based on a set of “socially responsible” criteria that companies must adhere to. These criteria can include social, ethical and environmental factors, for example: the company’s environmental policy, ethical standards, corporate governance and the nature of the company’s industry itself (e.g. firearms, tobacco).

Such funds are suitable for investors who place a particularly high value on investing in a socially responsible way, or put another way, those who actively do not wish to invest in a particular type of company or industry.

It is important to note that the socially responsible criteria and screening methods used by different SRI funds will differ – your particular investment preferences may not be reflected by all SRI funds.

Allianz Europe Equity SRI Fund EUR Distribution Share Class

About the fund: The fund invests primarily in stocks of companies domiciled in the Eurozone that, in the opinion of the

manager, fulfill the criteria for a sustainable and responsible investment. For this purpose, companies’ policies on social matters, human rights, corporate governance, environmental issues and ethics are analyzed (among others). The fund’s investment objective is to attain capital growth over the long term.

Share class: Income


Fund Category Eurozone Large-Cap Equity Fund Benchmark MSCI EMU Total Return (Net)


ISIN (Morningstar) LU0542502660 Bloomberg AEURLNE LX

Fund Factsheet* https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-europe-equity-sri-w-eur


https://lu.allianzgi.com/en-gb/pro/our-funds/funds/list/allianz-europe-equity-sri-w-eur


LifeCycle Concept

Who should use this approach? The LifeCycle Concept is often referred to as the investment of convenience. It is specifically designed for individuals who do not have sufficient expertise or time to manage their investments. The key benefits of LifeCycle Concept include: 1) Professional management from experienced individuals with the aim to enhance returns and to keep risks low, 2) Diversification across asset classes and regions, 3) Automatic gradual movement of investment from riskier to safer asset classes as you approach retirement, and 4) Automatic rebalancing of investments of at least two times per year. You can learn more about the LifeCycle Concept by reviewing the IARC LifeCycle Brochure on the IARCPlan.org website.

How does it work? The LifeCycle Concept is a ready-made, diversified basket of funds that automatically allocates asset class holdings over a designated investment time horizon. Your initial investments are weighted towards equities and gradually move towards bonds as you get nearer to retirement.

What does the LifeCycle Concept invest in? The LifeCycle Concept invests in eight funds in total – five equity funds and three bond funds. These are:

Stocks Bonds

Allianz Best Styles Global Equity Allianz Best Styles US Equity Allianz Europe Equity Growth Allianz Japan Equity Allianz Emerging Asia Equity

PIMCO GIS Total Return Bond Fund PIMCO GIS Global Bond Fund Allianz Advanced Fixed Income Global Aggregate

How much does it cost? Standard fund management charges will apply to the underlying funds within the strategy (see the Charges section for details). In addition, Allianz will charge a fee of 0.125% per year of the value of your LifeCycle funds for managing your strategy, deducted on a quarterly basis.

The chart below illustrates how this would affect the composition of a sample account over a lifetime.

The LifeCycle Concept has two options: Moderate and Growth. The key difference between the two options is the percentage holdings of equities versus bonds (“fixed income”). The Moderate option is the more conservative option and can allocate up to 60% of your investments towards equities versus up to 90% for the Growth option. In theory, the growth option should have greater returns, over time, due to the greater exposure to risk, albeit at the expense of accepting a higher risk of the investments fluctuating in value.


Are my funds locked in until retirement? No, you can switch into other investment funds or withdraw from your holdings in the LifeCycle Concept subject to the same rules that govern withdrawals from any fund offered in the Plan.

Can I invest in the LifeCycle Concept as well as other funds? Yes, you can. However, the LifeCycle approach is not like standard investment funds; it is much more a long-term investment concept. If a participant chooses to invest in other funds in addition to the LifeCycle model, he or she will skew the asset allocations (e.g. if a participant invests in an equity fund in addition to the LifeCycle Concept, he or she will be adding more risk to his or her overall portfolio). The LifeCycle model is designed to cover all of an individual participant’s retirement savings.

Charges

There are primarily two types of charges that will apply to your account – investment costs and platform/administration charges.

Investment costs

Annual management charge (AMC) / Total expense ratio (TER) The manager of each investment fund charges an annual fee to the fund. These will vary depending on the funds invested in. The AMC is not an explicit deduction from your account but instead an implicit cost that is factored into the calculation of the daily fund price.

As is common with most investment funds, there can be additional charges and expenses incurred by the fund. These are also factored into the calculation of the daily fund price. The combined total of these costs together with the AMC is called the total expense ratio (TER). This represents the total cost charged to the fund during the previous financial year. Please note that the TER is indicative of and specific to a particular year, and may change.


Where possible, Allianz has secured institutional class shares for the selected investment funds. These are not available to individual investors and typically have significantly reduced AMCs compared to the standard retail class shares.

Discounts To provide the best range of products for individual investments, the Plan’s trustee has negotiated the use of non-Allianz funds. Allianz has secured discounts on the AMCs for several of these funds. These discounts will be credited to your account as they are received by Allianz.

Preset dilution levy on purchases and/or redemptions A fund may charge a preset dilution levy (PDL) on the purchase and/or redemption of shares to offset the costs of trading. The PDL ensures that these higher costs are borne by the investors making the transaction and not by the shareholders already in the fund. These are the ordinary trading costs (e.g. investment taxes) associated with investments and are often higher for investments, for example, in companies in emerging markets.

All PDLs are paid directly into the assets of the relevant fund to offset the cost to all shareholders of an individual buying or selling securities. It is not a sales charge payable to the manager or any other person. The PDLs applying to each fund are shown in the table on pages 27–28 of this guide and are maximum charges that can be applied – the actual PDL may be lower, depending upon on market conditions on the day shares are purchased.

Where PDLs apply, there is a small deduction from the number of shares you would otherwise have purchased to allow for trading costs. In funds where no PDL applies, trading costs are instead included in the TER and factored into the calculation of the fund price.

Non-Allianz fund platform charge In line with standard practice for international platforms, the online service platform provider (Allianz) charges an access fee for the non-Allianz products. The access fee is 0.05% per year for the use of external funds on the platform, deducted on a quarterly basis. This is applied only to the non-Allianz funds. Please note that PIMCO Global Advisors (Ireland) Ltd is part of the Allianz Group of companies and, therefore, the 0.05% charge does not apply to the PIMCO funds available on the online service platform.

Please note that the AMCs and TERs shown for each fund are those charged by the individual investment manager and do not include any of the discounts negotiated by Allianz. A table detailing the full breakdown of fund charges and discounts as they affect each fund is provided on pages 27–28 of this guide.

Platform and administration costs Allianz charges each participant an annual fee of €15 per annum. This will be deducted from your account on an annual basis and covers Allianz’s administrative costs in running the online service platform.

AIARC charges 0.12% of the value of your account per annum, deducted on a monthly basis. This covers Plan administration, participant support, fiduciary responsibilities, professional fees, custodian costs, and standard transaction costs. Examples of charges that the AIARC fee covers include:

• Custody costs of 0.015% on the value of the Plan assets, with a minimum of €50,000 annually.


• Twelve regular monthly (or four regular quarterly or one regular annual) withdrawals after retirement at a cost of €10 per fund.

• Four fund switches/rebalances and four withdrawals throughout the calendar year at a cost of €10 per fund. This is charged per “batch transaction”, meaning that if more than one investor sells a particular fund on a given day, they share the €10 charge between them.

In addition, the following costs will be charged to you and will be deducted from the proceeds for each transaction:

• Wiring costs — €4 per wiring (for security purposes payments by check will not be available)

• Currency conversion costs – 0.50% foreign exchange spread on proceeds transferred

Other fund charges For Plan participants invested in the LifeCycle Concept, Allianz charges a fee of 0.125% per year, deducted on a quarterly basis. This charge includes regular rebalancing of your account to adjust your individual long-term risk and help protect your retirement savings, at least twice per year.


Fund Charges Table

This table outlines the charges that affect each fund, including any discount negotiated by Allianz as well as the 0.05% access fee for using non-Allianz / PIMCO funds. The fund TER shown is representative of the total charges applied to the fund as standard, not taking into consideration any additional charges (e.g. Non-AGI fund charges) or discounts. The effective charges you pay may differ from the TERs outlined below as a result. For a full explanation of the charges used to calculate each fund TER, please refer to the relevant fund prospectus that will be provided on each fund manager’s website. Note that the TER changes from year to year, reflecting actual costs incurred by the fund manager in running the fund. It is not possible to show the TER for the LifeCycle Concept as this will be specific to each participant.


Fund Charges Table Fund

Total Expense

Ratio (TER)

Non-AGI Fund

Charge

Discount

Preset Dilution

Levy1

Allianz Advanced Fixed Income Global Aggregate Fund2 0.59% — — —

Allianz Best Styles Global Equity Fund 0.51% — — —

Allianz Best Styles US Equity Fund 0.51% — — —

Allianz Emerging Asia Equity Fund 2.29% — -1.00% —

Allianz Enhanced Short-Term Euro Fund 0.24% — — —

Allianz Europe Equity Growth Fund 0.65% — — —

Allianz Europe Equity SRI Fund 0.68% — — —

Allianz Japan Equity Fund 0.94% — — —

BlackRock US Corporate Bond Index Fund 0.15% 0.05% — —

Goldman Sachs Euro Liquid Reserves Fund 0.20% 0.05% -0.01% —

Goldman Sachs Yen Liquid Reserves Fund 0.20% 0.05% -0.01% —

PIMCO GIS Global Bond Fund 0.49% — — —

PIMCO GIS Total Return Bond Fund 0.50% — — —

SSgA USD Liquidity Fund 0.15% 0.05% — —

Threadneedle European Bond Fund 1.15% 0.05% -0.60% —

Vanguard Emerging Markets Stock Index Fund 0.40% 0.05% -0.05% —

Vanguard Euro Government Bond Index Fund 0.25% 0.05% -0.13% —

Vanguard European Stock Index Fund 0.35% 0.05% -0.15% —

Vanguard Global Bond Index Fund 0.15% 0.05% — 0.20%

Vanguard Global Stock Index Fund 0.25% 0.05% -0.05% —

Vanguard Japan Stock Index Fund 0.30% 0.05% -0.10% —

Vanguard Pacific ex-Japan Stock Index Fund 0.23% 0.05% -0.03% —

Vanguard U.S. 500 Stock Index Fund 0.25% 0.05% -0.10% —

Total expense ratios, discounts, and preset dilution levies subject to change. Updated as of 6 March 2019.

Note: Each Plan account pays €15 per year for the cost of the online platform (Allianz administrative fee).

1 Maximum preset dilution levy that might be applicable to purchases only.

2 The fund also has a performance fee of 20% a year on any returns the fund achieves above the benchmark, EuroNight Average (EONIA).


Further information

Fund Manager Websites

Name Website

Allianz Global Investors www.allianzgi.com

Blackrock Asset Management Ireland Ltd www.blackrock.com

Goldman Sachs Asset Management www.gs.com

PIMCO Global Advisors Ltd www.europe.pimco-funds.com

State Street Global Advisors Ltd www.ssga.com

Threadneedle Investment Services Ltd www.threadneedle.com

The Vanguard Group, Inc. global.vanguard.com

http://www.allianzgi.com/

http://www.blackrock.com/

http://www.gs.com/

http://www.europe.pimco-funds.com/

http://www.ssga.com/

http://www.threadneedle.com/

https://global.vanguard.com/


Investment Research

The Allianz platform at IARCPlan.org offers a list of all available funds and the LifeCycle Concept under the menu option “Info Desk” | “Funds.” Click on the plus sign to expose a snapshot of key information; or click on the fund’s name to retrieve the most recent fund factsheet, a brief overview of the fund.



The snapshot of the fund reveals some basic, key metrics about the expenses (before any additional charges or discounts), performance, and risk assessment of the fund.


Independent information about funds can be found at the following websites:

• www.morningstar.co.uk

• www.bloomberg.com

• www.lipperleaders.com

• funds.ft.com

• www.standardandpoors.com

Some of the details of the fund range may be available from the above websites on a restricted basis. If you need further information, please contact your relevant financial professional.

http://www.morningstar.co.uk/

http://www.bloomberg.com/

http://www.lipperleaders.com/

http://funds.ft.com/

http://www.standardandpoors.com/


Important Information

The International Agricultural Research Centers Retirement Plan fund range is designed to enable Plan participants to build a fund portfolio that suits their financial circumstances. The fund range and administration procedures are flexible, so Plan participants can easily change their portfolio as they move through their investment time horizon, or if their personal circumstances or risk tolerances change. The Plan covers most of the risk spectrum, allowing participants to choose from many asset types, geographical sectors, and a selection of brand-name fund managers.

The funds in this guide and their charges may be subject to change by their relevant fund managers. With the exception of Allianz’s funds, neither AIARC, nor Allianz, nor any associated companies or representatives can accept responsibility for any closures and mergers of funds, or variations in fund structure, charges, status, authorization, registration, address, and investment objectives. The Trustees (Board of Directors) reserve the right to withdraw funds at any time as part of the fund review process.

The information in this guide is intended as only a summary and is subject to change without notice. The information in this guide was obtained from what is believed to be reliable sources. As such, the accuracy and completeness cannot be guaranteed. Neither AIARC nor any associated companies nor representatives will accept responsibility for any errors or omissions.

The information contained within this guide is based on the data provided by the relevant financial institutions and is subject to change.

It is very important to understand that there are risks associated with investing. Past performance is not an indicator for future performance. The value of any investment and the income from it can fall, as well as rise, as a result of market and currency fluctuations. Participants may not get back the amount invested.

This guide is not intended as an offer to invest.

Please ensure you read all documents and accompanying literature before joining the Plan, to include the IARC International Retirement Plan Participant Guide and the LifeCycle Concept Brochure.

This guide does not provide any individual advice, and you should make sure that the Plan is suitable for you. If you are unsure about the Plan’s suitability, you should seek independent financial advice, for which there may be a charge. The guide is based on current legislation and practice, which may change. In addition, there may be changes to your personal circumstances that may affect your entitlement to tax relief.


Plan Administrator contact information

If you have questions about the Plan, please contact AIARC by email at [email protected] or by telephone at +1–703–548–4540.

AIARC

901 N. Washington St. Suite 706 Alexandria, VA 22314 USA

Telephone: +1–703–548–4540 Fax: +1–703–548–5960 Email: [email protected]

mailto:[email protected]

mailto:[email protected]

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