Our Firm
NFJ Investment Group, LLC is a wholly-owned subsidiary of Virtus Partners, Inc. (“VPI”), which is wholly-
owned by Virtus Investment Partners, Inc. (“Virtus”). Virtus, a publicly traded firm, is singularly committed
to the long-term success of individual and institutional investors, offering asset management through its
affiliated managers and select sub-advisers (see www.virtus.com).
Our Services
NFJ provides investment management services across a broad range of primarily equity assets including
domestic and non-U.S. securities. NFJ provides discretionary and non-discretionary investment
management or sub-advisory services to institutional clients and non-institutional clients principally through
separate accounts, wrap fee programs and a variety of commingled funds (including SEC registered open-
end investment companies (“Mutual Funds”) and SEC registered closed-end investment companies
(“Closed-End Funds”), other commingled funds which are not registered with the SEC (“Non-Registered
Commingled Funds”), which may be sponsored or established by affiliates of NFJ or by unaffiliated third
parties.
The following are the primary elements of the investment management services typically provided by NFJ.
Such services may vary depending on the nature of the investment advisory relationship as described
herein.
(i) Formulation with the client of appropriate investment objectives and restrictions;
(ii) Application of stock screening process to determine the relative attractiveness of individual
stocks within certain quality constraints;
(iii) Construction of client portfolios utilizing stocks which are determined to be most attractive by
the screening process which concentrates on low valuations and/or dividend yields. A specific sell
discipline is in place;
(iv) If authorized, implementation of the investment strategy by execution of portfolio transactions
as needed;
(v) The continual monitoring of the account for the purpose of reviewing its performance and
controlling its adherence to strategy and objectives; and
(vi) Furnishing reports to the client concerning account activity, strategy, and performance.
In addition, NFJ may determine to tailor its advisory services to the individual needs of its clients. Clients
may submit reasonable guidelines or restrictions on investments in certain securities or security types to
be adhered to by NFJ. When selecting securities and determining amounts, NFJ observes the investment
policies, limitations, and restrictions of the clients for which it advises. Investment guidelines and restrictions
must be provided to NFJ in writing.
Separate Accounts
For separate account clients, NFJ provides investment management services for the assets placed under
its supervision. Investment advice is furnished on a discretionary basis, where the client authorizes NFJ to
make all investment decisions for the account.
Managed Account/Wrap-Fee Programs
NFJ also provides discretionary and non-discretionary investment advisory services for managed
account/wrap-fee programs, programs in which a client pays a program sponsor or broker a single “wrap-
fee” for advisory services, certain brokerage services, monitoring of the investment adviser’s performance
and custodial services or some combination of these or other services; (the “Wrap Programs”) sponsored
by unaffiliated broker-dealers (the "Program Sponsors").
NFJ acts as adviser under certain wrap programs and sub-adviser under other wrap programs with respect
to certain investment strategies, to selected Program Sponsors and a limited number of clients who do not
participate in a Wrap Program
(“Direct Clients”). Under the Wrap Programs, the Program Sponsor permits
its clients to take part in a Wrap Program by choosing an investment adviser from a list of participating
investment advisers that are screened by the Program Sponsor. The Program Sponsor is responsible for
determining whether a specific NFJ strategy is suitable or advisable for an investor. The wrap client
accounts are typically subject to a minimum investment and are administered and serviced primarily by
the Program Sponsor, which, in most cases is also registered as an investment adviser. In dual contract
programs, a participant enters into an advisory agreement with NFJ and a separate agreement with the
program sponsor. Dual contract programs are generally managed in a manner similar to wrap programs
as discussed throughout this brochure.
NFJ does not act as a sponsor of any Wrap Program.
Investment Model Delivery to Unaffiliated Third Parties
NFJ may also act as a non-discretionary adviser/sub-adviser by providing an investment model to unaffiliated
third parties (each a “Model Receiver”) which may manage accounts participating in, or sponsor, Wrap
Programs. In this case, NFJ would typically enter into an investment advisory/sub-advisory agreement with
the Model Receiver.
Pursuant to the investment advisory/sub-advisory agreement entered into by NFJ and the Model Receiver,
NFJ would provide investment recommendations to the Model Receiver for one or more of its investment
strategies. The Model Receiver has the ultimate decision-making authority and discretionary responsibility
for determining which securities are to be purchased and sold for the clients participating in the Wrap
Programs.
Wrap-fee clients should consult the Program Sponsor’s brochure for the specific fees and features
applicable to their program as well as the Form ADV of the primary, discretionary investment manager.
Registered Investment Companies
NFJ also serves as sub-adviser to certain Mutual Funds and Closed-End Funds sponsored or advised by
its affiliates.
Non-Registered Commingled Funds
NFJ may also provide investment management or sub-advisory services to commingled funds, that are
established by affiliates or unaffiliated third parties, which are not registered under the Securities Act of
1933 or the Investment Company Act of 1940, as amended. A minimum account size may be applicable
for participation in a Non-Registered Commingled Fund. Additional information concerning these funds is
included in the relevant fund’s offering documents.
NFJ cannot guarantee or assure you that your investment objectives will be achieved. The investment
decisions NFJ makes for client accounts are subject to various market, currency, economic, political and
business risks, and the risk that investment decisions will not always be profitable. Many of these risks are
discussed in Item 8 below, which you should review carefully before deciding to engage NFJ services.
Assets Under Management
As of 12/31/2023, NFJ had discretionary assets of $4,233,802,768 and non-discretionary assets of
$2,414,539,052* for total assets under management of $6,648,341,820**.
*Non-discretionary assets under management described in this item includes (but not exclusively)
accounts and assets for which the Adviser has neither discretionary authority nor responsibility for
arranging or effecting the purchase or sale of recommendations provided to and accepted by the client or
Sponsor.
**May differ from assets under management disclosed in Item 5.F of Adviser’s Form ADV Part 1 due to
specific calculation instructions for Regulatory Assets Under Management.