Premier Multi-Series VIT Prospectus NFJ Dividend Value Portfolio*

Transcription

1 April 25, 2016 Premier Multi-Series VIT Prospectus NFJ Dividend Value Portfolio* RCM Dynamic Multi-Asset Plus VIT Portfolio* * Shares of the Portfolios currently are available to be purchased by segregated asset accounts ( Separate Accounts ) that fund variable annuity contracts and variable life insurance policies ( Variable Contracts ) issued by Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York (together, Allianz Life ), or other affiliated or unaffiliated insurance companies. To the extent permitted by applicable law, shares of the Portfolios also are available to be purchased by insurance dedicated fund-of-funds vehicles ( AllianzIM Funds ) managed by Allianz Investment Management LLC ( AllianzIM ), an affiliate of the Manager (as defined below). This prospectus should be read in conjunction with the prospectus of any contract or policy. Both prospectuses should be read carefully and retained for future reference. As with other mutual funds, the U.S. Securities and Exchange Commission has not approved or disapproved these securities or determined if this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

2 Premier Multi-Series VIT Prospectus The Prospectus explains what you should know about each Portfolio (together, the Portfolios ) of Premier Multi-Series VIT (the Trust ) before you invest. Please read it carefully. Table of Contents Portfolio Summaries NFJ Dividend Value Portfolio... 1 RCM Dynamic Multi-Asset Plus VIT Portfolio... 4 Principal Investments and Strategies of Each Portfolio... 8 Summary of Principal Risks Portfolio Holdings Prior Related Performance Information Management of the Portfolios Portfolio Shares How to Buy and Sell Shares How Portfolio Shares Are Priced Tax Consequences Characteristics and Risks of Securities and Investment Techniques Financial Highlights Additional Performance Information... 48

3 NFJ Dividend Value Portfolio Investment Objective Fees and Expenses of the Portfolio The Portfolio seeks long-term growth of capital and income. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table does not reflect the fees and expenses of AllianzIM Funds or Variable Contracts (each as defined below) through which investors may invest indirectly into the Portfolio. If it did, expenses would be higher. Shareholder Fees (fees paid directly from your investment): None Annual Portfolio Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Distribution and/or Service (12b-1) Fees Total Annual Portfolio Operating Expenses Management Other Expense Portfolio Fees Expenses Reductions (1) NFJ Dividend Value 0.70% 0.25% 0.22% 1.17% (0.17)% 1.00% Total Annual Portfolio Operating Expenses After Expense Reductions (1) (1) Total Annual Portfolio Operating Expenses After Expense Reductions reflect the effect of two contractual arrangements entered into by Allianz Global Investors Fund Management LLC (the Manager ). Pursuant to the first arrangement, the Manager has contractually agreed to observe, through April 30, 2017, an irrevocable waiver of a portion of its management fee, which reduces the contractual rate by 0.05%, from 0.70% to 0.65%. Under the second arrangement, the Manager has entered into an Expense Limitation Agreement with the Trust, under which the Manager has contractually agreed to waive its management fee and/or reimburse the Portfolio through April 30, 2017 to the extent that Total Annual Portfolio Operating Expenses, excluding interest, tax, extraordinary expenses and certain credits and other expenses (after giving effect to the management fee waiver referred to in the preceding sentence), exceed 1.00% for the Portfolio. Under the Expense Limitation Agreement, the Manager may recoup waived or reimbursed amounts for three years, provided total expenses, including such recoupment, do not exceed the annual expense limit in effect at the time of such waiver/reimbursement or recoupment. The Expense Limitation Agreement is terminable by the Trust upon 90 days prior written notice to the Manager or at any time by mutual agreement of the parties. Examples. The Examples are intended to help you compare the cost of investing in shares of the Portfolio with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in Portfolio shares for the time periods indicated, your investment has a 5% return each year, and the Portfolio s operating expenses remain the same. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. The Examples are based, for the first year, on Total Annual Portfolio Operating Expenses After Expense Reductions and, for all other periods, on Total Annual Portfolio Operating Expenses. These Examples do not take into account the fees and expenses of AllianzIM Funds or Variable Contracts through which investors may invest indirectly into the Portfolio. If they did, expenses would be higher. Portfolio 1 Year 3 Years 5 Years 10 Years NFJ Dividend Value $102 $355 $627 $1,405 Portfolio Turnover. The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). The Portfolio s portfolio turnover rate for the fiscal year ended December 31, 2015 was 49% of the average value of its portfolio. High levels of portfolio turnover may indicate higher transaction costs. These costs, which are not reflected in Total Annual Portfolio Operating Expenses or in the Examples above, can adversely affect the Portfolio s investment performance. Principal Investment Strategies The Portfolio seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies that pay or are expected to pay dividends. Under normal conditions, the Portfolio will invest primarily in common stocks of companies with market capitalizations greater than $3.5 billion. The portfolio managers use a value investing style focusing on companies whose securities the portfolio managers believe are undervalued. The portfolio managers partition the Portfolio s selection universe by industry and then identify what they believe to be undervalued securities in each industry to determine potential holdings for the Portfolio representing a broad range of industry groups. The portfolio managers use quantitative factors to screen the Portfolio s selection universe, analyzing factors such as price momentum (i.e., changes in security price relative to changes in overall market prices) and earnings estimate revisions (i.e., changes in analysts earnings-per-share estimates), and also review and consider fundamental changes. In addition, a portion of the securities selected for the Portfolio are identified primarily on the basis of their dividend yields. After further narrowing the universe through a combination of qualitative analysis and fundamental research, the portfolio managers select securities for the Portfolio. In addition to common stocks and other equity securities (such as preferred stocks, convertible securities and warrants), the Portfolio may invest in real estate investment trusts (REITs) and in non-u.s. securities, including emerging market securities. Prospectus 1

4 NFJ Dividend Value Portfolio (continued) Principal Risks Performance Information The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are (in alphabetical order after the first three risks): Market Risk: The Portfolio will be affected by factors influencing the U.S. or global economies and securities markets or relevant industries or sectors within them. Issuer Risk: The Portfolio will be affected by factors specific to the issuers of securities and other instruments in which the Portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers. Equity Securities Risk: Equity securities may react more strongly to changes in an issuer s financial condition or prospects than other securities of the same issuer. Credit and Counterparty Risk: An issuer or counterparty may default on obligations. Currency Risk: The values of non-u.s. securities may fluctuate with currency exchange rates and exposure to non-u.s. currencies may subject the Portfolio to the risk that those currencies will decline in value relative to the U.S. dollar. Emerging Markets Risk: Non-U.S. investment risk may be particularly high to the extent that the Portfolio invests in emerging market securities. These securities may present market, credit, currency, liquidity, legal, political, technical and other risks different from, or greater than, the risks of investing in developed countries. Focused Investment Risk: Focusing on a limited number of issuers, sectors, industries or geographic regions increases risk and volatility. Liquidity Risk: The lack of an active market for investments may cause delay in disposition or force a sale below fair value. Management Risk: The Portfolio will be affected by the allocation determinations, investment decisions and techniques of the Portfolio s management. Non-U.S. Investment Risk: Non-U.S. securities markets and issuers may be more volatile, smaller, less liquid, less transparent and subject to less oversight, particularly in emerging markets. REIT and Real Estate-Related Investment Risk: Adverse changes in the real estate markets may affect the value of REIT investments or real estate-linked derivatives. Smaller Company Risk: Securities issued by smaller companies may be more volatile and present increased liquidity risk relative to securities issued by larger companies. Turnover Risk: High levels of portfolio turnover increase transaction costs and may lower investment performance. Please see Summary of Principal Risks in this Prospectus for a more detailed description of the Portfolio s risks. It is possible to lose money on an investment in the Portfolio. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The performance information below provides some indication of the risks of investing in the Portfolio by showing changes in its total return from year to year and by comparing the Portfolio s average annual total returns with those of a broad-based market index and a performance average of similar mutual funds. Performance shown does not reflect any charges or expenses imposed by an insurance company and if it did, performance would be lower. Past performance is not necessarily predictive of future performance. Calendar Year Total Returns Annual Return 40% 30% 20% 10% 0% -10% -20% 29.77% 10.01% -8.86% '13 '14 '15 Calendar Year End (through 12/31) Highest and Lowest Quarter Returns (for periods shown in the bar chart) Highest 1/1/2013 3/31/ % Lowest 7/1/2015 9/30/ % 2 Premier Multi-Series VIT

5 NFJ Dividend Value Portfolio (continued) Average Annual Total Returns (for periods ended 12/31/15) Portfolio Inception 1 Year (8/30/12) NFJ Dividend Value Portfolio -8.86% 9.11% Russell 1000 Value Index (reflects no deduction for fees, expenses or taxes) -3.83% 13.42% Lipper VIP Equity Income Funds Average -4.83% 9.59% Management of the Portfolio Investment Manager Allianz Global Investors Fund Management LLC Sub-Adviser NFJ Investment Group LLC Portfolio Managers Jeff N. Reed, CFA, lead portfolio manager, analyst and director, has managed the Portfolio since its inception in Morley D. Campbell, CFA, portfolio manager, analyst and managing director, has managed the Portfolio since its inception in Benno J. Fischer, CFA, portfolio manager, analyst, managing director, CIO and founding partner, has managed the Portfolio since its inception in L. Baxter Hines, CFA, portfolio manager, analyst and managing director, has managed the Portfolio since its inception in Paul A. Magnuson, portfolio manager, analyst and managing director, has managed the Portfolio since its inception in R. Burns McKinney, CFA, portfolio manager, analyst and managing director, has managed the Portfolio since its inception in John R. Mowrey, CFA, portfolio manager, analyst and director, has managed the Portfolio since Thomas W. Oliver, CFA, CPA, portfolio manager, analyst and managing director, has managed the Portfolio since its inception in Purchase and Sale of Portfolio Shares Tax Information Payments to Broker-Dealers and Other Financial Intermediaries Shares of the Portfolios currently are available to be purchased by segregated asset accounts ( Separate Accounts ) that fund variable annuity contracts and variable life insurance policies ( Variable Contracts ) issued by Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York (together, Allianz Life ), or other affiliated or unaffiliated insurance companies. To the extent permitted by applicable law, shares of the Portfolios also are available to be purchased by insurance dedicated fund-of-funds vehicles ( AllianzIM Funds ) managed by Allianz Investment Management LLC ( AllianzIM ), an affiliate of the Manager (as defined below). The Trust requires no minimum investment for AllianzIM Funds or Separate Accounts, but insurers may require minimum investments from those purchasing Variable Contracts for which the Portfolio is an underlying investment option. Generally, purchase and redemption orders for Portfolio shares are processed at the net asset value (NAV) next calculated after an order is received by the distributor or an authorized intermediary. NAVs are determined only on days when the New York Stock Exchange is open for regular trading. For tax purposes, the shareholders of the Portfolio are the AllianzIM Funds or, in the case of direct investment, insurance companies offering Variable Contracts. If you are investing in the Portfolio through a Variable Contract, please refer to the prospectus for your Separate Account and the Variable Contract for information regarding the federal income tax treatment of distributions to the Separate Account. If you purchase the Portfolio through a broker-dealer, the Portfolio and its related companies may pay the brokerdealer for the sale of Portfolio shares and related services. To the extent that shares of the Portfolio are sold to AllianzIM Funds that in turn are sold to Separate Accounts of insurance companies that fund Variable Contracts, or are sold directly to such Separate Accounts, the Portfolio and/or its related companies may also pay the insurance company and other intermediaries for the (direct or indirect) sale of the Portfolio and/or other services. These payments may create a conflict of interest by influencing the broker-dealer, insurance company or intermediary and your salesperson to recommend a Variable Contract and the Portfolio over another investment. Ask your insurance company or salesperson or visit your financial intermediary s Web site for more information. Prospectus 3

6 RCM Dynamic Multi-Asset Plus VIT Portfolio Investment Objective Fees and Expenses of the Portfolio The Portfolio seeks long term capital appreciation. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table does not reflect the fees and expenses of AllianzIM Funds or Variable Contracts (each as defined below) through which investors may invest indirectly into the Portfolio. If it did, expenses would be higher. Shareholder Fees (fees paid directly from your investment): None Annual Portfolio Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Portfolio Management Fees Distribution and/or Service (12b-1) Fees Other Expenses Acquired Fund Fees and Expenses Total Annual Portfolio Operating Expenses (1)(2) Expense Reductions (3) Total Annual Portfolio Operating Expenses After Expense Reductions (3) RCM Dynamic Multi-Asset Plus VIT 0.70% 0.25% 0.86% 0.05% 1.86% (0.66)% 1.20% (1) Total Annual Fund Operating Expenses do not match the Ratio of Expenses to Average Net Assets of the Fund as set forth in the Financial Highlights table of the Fund s prospectus, in part, because the Ratio of Expenses to Average Net Assets in the prospectus reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses. (2) Expenses have been restated to reflect current fees. (3) Total Annual Portfolio Operating Expenses After Expense Reductions reflect the effect of a contractual agreement by Allianz Global Investors Fund Management LLC ( Allianz Global Fund Management or the Manager ) to irrevocably waive its management fee and/or reimburse the Portfolio through April 30, 2017 to the extent that Total Annual Portfolio Operating Expenses, excluding interest, tax, and extraordinary expenses, and certain credits and other expenses, plus the Portfolio s Acquired Fund Fees and Expenses, exceed 1.20% for Portfolio shares. Under the Expense Limitation Agreement, the Manager may recoup waived or reimbursed amounts for three years, provided total expenses, including such recoupment, do not exceed the annual expense limit in effect at the time of such waiver/reimbursement or recoupment. Examples. The Examples are intended to help you compare the cost of investing in shares of the Portfolio with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in Portfolio shares for the time periods indicated, your investment has a 5% return each year, and the Portfolio s operating expenses remain the same. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. The Examples are based, for the first year, on Total Annual Portfolio Operating Expenses After Expense Reductions and, for all other periods, on Total Annual Portfolio Operating Expenses. These Examples do not take into account the fees and expenses of AllianzIM Funds or Variable Contracts (each as defined below) through which investors may invest indirectly into the Portfolio. If they did, expenses would be higher. Portfolio 1 Year 3 Years 5 Years 10 Years RCM Dynamic Multi-Asset Plus VIT Portfolio $122 $521 $944 $2,126 Portfolio Turnover. The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). The Portfolio s portfolio turnover rate from its inception on April 27, 2015 through the end of its fiscal year on December 31, 2015 was 58% of the average value of its Portfolio. High levels of portfolio turnover may indicate higher transaction costs. These costs, which are not reflected in Total Annual Portfolio Operating Expenses or in the Examples above, can adversely affect the Portfolio s investment performance. Principal Investment Strategies The Portfolio seeks to achieve its investment objective through a combination of active allocation between asset classes and actively managed strategies within those asset classes. The Portfolio invests directly and indirectly in a globally diverse combination of equity securities, and U.S. dollar denominated fixed income securities, in each case including emerging market securities. The Portfolio s baseline long-term asset allocation consists of 60% to equity exposure (the Equity Component ) and 40% to fixed income exposure (the Fixed Income Component ), which is also the allocation of the blended benchmark index against which the Portfolio is managed. The portfolio managers will typically over- or under-weight the Portfolio against this baseline long-term allocation, depending upon the portfolio managers view of the relative attractiveness of the investment opportunities available, which will change over time. The Portfolio may invest significantly below its target with respect to the Equity Component and significantly above its target with respect to the Fixed Income Component. Under normal circumstances, the Portfolio will not invest more than 20% of its assets in any combination of the following asset classes: high yield debt (commonly known as junk bonds ), bank loans, global bonds, emerging markets equities, emerging markets debt, Treasury Inflation-Protected Securities ( TIPS ) and real estate securities, including U.S. and non-u.s. real estate investment trusts ( REITs ). The Portfolio may either invest directly in these different asset classes or indirectly through derivatives and other instruments, such as through investments in mutual funds or exchange-traded funds ( ETFs ). 4 Premier Multi-Series VIT

7 RCM Dynamic Multi-Asset Plus VIT Portfolio (continued) The portfolio managers currently expect that the Portfolio s average duration with respect to any fixed-income asset class in which the Portfolio invests directly will typically resemble that of a related broad-based index. The portfolio managers allocate the Portfolio s investments among asset classes in response to changing market, economic, and political factors and events that the portfolio managers believe may affect the value of the Portfolio s investments. The Portfolio seeks to limit downside risk by moving toward less volatile asset classes during periods of high market volatility. Volatility is a statistical measure of risk relating to the magnitude of up and down fluctuations in the value of a financial instrument or index over time and typically results from rapid price swings. Under normal circumstances, the Portfolio will seek to maintain a one year annualized volatility level at or below 12% over a market cycle. A higher volatility level indicates more frequent or rapid up and down fluctuations in the values of the Portfolio s investments relative to a lower volatility level. There can be no assurance that investment decisions made in seeking to manage Portfolio volatility will achieve the desired results. The Portfolio s actual or realized volatility will be dependent on the market environment. The portfolio managers may adjust the Portfolio s exposure to the Equity Component and the Fixed Income Component in response to momentum and momentum reversion signals in an effort to mitigate downside risk in times of severe market stress and to increase the return potential in favorable markets. Momentum is the tendency of a performance trend to continue to move in the same direction. Momentum reversion is the tendency that a performance trend will ultimately change and move in an opposite direction. While the portfolio managers attempt to mitigate the downside risk to stabilize performance, there can be no assurance that the Portfolio will be successful in doing so. The portfolio managers also apply fundamental analysis to adjust the Portfolio s exposure to the asset classes that exhibit the strongest return prospects. The Portfolio may invest in securities of companies of any capitalization, including smaller capitalization companies. The Portfolio also may make investments intended to provide exposure to one or more securities indices, currencies, and real estate-related securities. The Portfolio is expected to be highly diversified across industries, sectors, and countries. In implementing these investment strategies, the Portfolio may make substantial use of over-the-counter (OTC) or exchange-traded derivatives, including futures contracts, interest rate swaps, total return swaps, credit default swaps, currency forwards, and structured notes. The Portfolio may use derivatives for a variety of purposes, including: as a hedge against adverse changes in the market price of securities, interest rates, or currency exchange rates; as a substitute for purchasing or selling securities; to increase the Portfolio s return as a non-hedging strategy that may be considered speculative; and to manage portfolio characteristics. The Portfolio may maintain a significant percentage of its assets in cash and cash equivalents which will serve as margin or collateral for the Portfolio s obligations under derivative transactions. The Portfolio may, at any time, invest in affiliated and unaffiliated funds, ETFs and pooled investment vehicles. The Portfolio may participate in initial public offerings (IPOs). Principal Risks The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are (in alphabetical order after the first five risks): Credit and Counterparty Risk: An issuer or counterparty may default on obligations. Currency Risk: The values of non-u.s. securities may fluctuate with currency exchange rates and exposure to non-u.s. currencies may subject the Portfolio to the risk that those currencies will decline in value relative to the U.S. dollar. Derivatives Risk: Derivative instruments are complex, have different characteristics than their underlying assets and are subject to additional risks, including leverage, liquidity and valuation. Equity Securities Risk: Equity securities may react more strongly to changes in an issuer s financial condition or prospects than other securities of the same issuer. Fixed Income Risk: Fixed income (debt) securities are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer s or counterparty s deterioration or default. Prospectus 5

8 RCM Dynamic Multi-Asset Plus VIT Portfolio (continued) Emerging Markets Risk: Non-U.S. investment risk may be particularly high to the extent that the Portfolio invests in emerging market securities. These securities may present market, credit, currency, liquidity, legal, political, technical and other risks different from, or greater than, the risks of investing in developed countries. High Yield Risk: High-yield or junk bonds are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to increases in interest rates or an issuer s deterioration or default. Index Risk: Investments in index-linked derivatives are subject to the risks associated with the applicable index. Interest Rate Risk: Fixed income securities may decline in value because of increases in interest rates. IPO Risk: Securities purchased in initial public offerings have no trading history, limited issuer information and increased volatility. Issuer Risk: The Portfolio will be affected by factors specific to the issuers of securities and other instruments in which the Portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers. Leveraging Risk: Instruments and transactions that constitute leverage magnify gains or losses and increase volatility. Liquidity Risk: The lack of an active market for investments may cause delay in disposition or force a sale below fair value. Management Risk: The Portfolio will be affected by the allocation determinations, investment decisions and techniques of the Portfolio s management. Market Risk: The Portfolio will be affected by factors influencing the U.S. or global economies and securities markets or relevant industries or sectors within them. Mortgage-Related and Other Asset-Backed Risk: Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated or defaulted on. Non-U.S. Investment Risk: Non-U.S. securities markets and issuers may be more volatile, smaller, less liquid, less transparent and subject to less oversight, particularly in emerging markets. REIT and Real Estate-Related Investment Risk: Adverse changes in the real estate markets may affect the value of REIT investments or real estate-linked derivatives. Smaller Company Risk: Securities issued by smaller companies may be more volatile and present increased liquidity risk relative to securities issued by larger companies. Turnover Risk: High levels of portfolio turnover increase transaction costs and may lower investment performance. Variable Distribution Risk: Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates. Please see Summary of Principal Risks in this Prospectus for a more detailed description of the Portfolio s risks. It is possible to lose money on an investment in the Portfolio. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Performance Information Management of the Portfolio Performance information for the Portfolio will be available after the Portfolio completes a full calendar year of operation. Investment Manager Allianz Global Investors Fund Management LLC Sub-Adviser Allianz Global Investors U.S. LLC ( AllianzGI U.S. ) Portfolio Managers Claudio Marsala, portfolio manager and director, has managed the Portfolio since its inception in Giorgio Carlino, portfolio manager and director has managed the Portfolio since its inception in Michael Stamos, portfolio manager and director has managed the Portfolio since its inception in Premier Multi-Series VIT

9 RCM Dynamic Multi-Asset Plus VIT Portfolio (continued) Purchase and Sale of Portfolio Shares Tax Information Payments to Broker-Dealers and Other Financial Intermediaries Shares of the Portfolios currently are available to be purchased by segregated asset accounts ( Separate Accounts ) that fund variable annuity contracts and variable life insurance policies ( Variable Contracts ) issued by Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York (together, Allianz Life ), or other affiliated or unaffiliated insurance companies. To the extent permitted by applicable law, shares of the Portfolios also are available to be purchased by insurance dedicated fund-of-funds vehicles ( AllianzIM Funds ) managed by Allianz Investment Management LLC ( AllianzIM ), an affiliate of the Manager (as defined below). The Trust requires no minimum investment for AllianzIM Funds or Separate Accounts, but insurers may require minimum investments from those purchasing Variable Contracts for which the Portfolio is an underlying investment option. Generally, purchase and redemption orders for Portfolio shares are processed at the NAV next calculated after an order is received by the distributor or an authorized intermediary. NAVs are determined only on days when the New York Stock Exchange is open for regular trading. For tax purposes, the shareholders of the Portfolio are the AllianzIM Funds or, in the case of direct investment, insurance companies offering Variable Contracts. If you are investing in the Portfolio through a Variable Contract, please refer to the prospectus for your Separate Account and the Variable Contract for information regarding the federal income tax treatment of distributions to the Separate Account. If you purchase the Portfolio through a broker-dealer, the Portfolio and its related companies may pay the brokerdealer for the sale of Portfolio shares and related services. To the extent that shares of the Portfolio are sold to AllianzIM Funds that in turn are sold to Separate Accounts of insurance companies that fund Variable Contracts, or are sold directly to such Separate Accounts, the Portfolio and/or its related companies may also pay the insurance company and other intermediaries for the (direct or indirect) sale of the Portfolio and/or other services. These payments may create a conflict of interest by influencing the broker-dealer, insurance company or intermediary and your salesperson to recommend a Variable Contract and the Portfolio over another investment. Ask your insurance company or salesperson or visit your financial intermediary s Web site for more information. Prospectus 7

10 Principal Investments and Strategies of Each Portfolio This section, together with the next section entitled Summary of Principal Risks, provides more detailed information regarding each Portfolio s investment objective, principal investments and strategies and principal risks. It is possible to lose money on an investment in the Portfolios. The fact that a Portfolio may have had good performance in the past is no assurance that the value of the Portfolio s investments will not decline in the future or appreciate at a slower rate. 8 Premier Multi-Series VIT

11 Principal Investments and Strategies Principal Risks NFJ Dividend Value Portfolio Investment Objective Seeks long-term growth of capital and income Portfolio Category Value stocks Portfolio Focus Income producing common stocks with potential for capital appreciation Approximate Primary Capitalization Range Greater than $3.5 billion Dividend Frequency Annually The Portfolio seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies that pay or are expected to pay dividends. Under normal market and other conditions, the Portfolio will invest primarily in common stocks of companies with market capitalizations greater than $3.5 billion. The Portfolio may also invest a portion of its assets in real estate investment trusts (REITs) and in non-u.s. securities, including emerging market securities. The portfolio managers use a value investing style focusing on companies whose securities the portfolio managers believe are undervalued. The portfolio managers partition the Portfolio s selection universe by industry and then identify what they believe to be undervalued securities in each industry to determine potential holdings for the Portfolio representing a broad range of industry groups. The portfolio managers use quantitative factors to screen the Portfolio s selection universe, analyzing factors such as price momentum (i.e., changes in security price relative to changes in overall market prices) and earnings estimate revisions (i.e., changes in analysts earnings-per share estimates), and also review and consider fundamental changes. In addition, a portion of the securities selected for the Portfolio are identified primarily on the basis of their dividend yields. After still further narrowing the universe through a combination of qualitative analysis and fundamental research, the portfolio managers select approximately 40 to 60 securities for the Portfolio. The portfolio managers consider selling a security when any of the factors leading to its purchase materially changes or when a more attractive candidate is identified, including when an alternative security with strong fundamentals demonstrates a lower valuation ratio, a higher dividend yield or favorable qualitative metrics. In response to adverse market, economic, political or other conditions, the Portfolio may deviate from its principal strategies by making temporary investments of some or all of its assets in high-quality fixed income securities, cash and cash equivalents. The Portfolio may be less likely to achieve its investment objective when it does so. Among the principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are (in alphabetical order after the first three risks): Market Risk Issuer Risk Equity Securities Risk Credit and Counterparty Risk Currency Risk Emerging Markets Risk Focused Investment Risk Liquidity Risk Management Risk Non-U.S. Investment Risk REIT and Real Estate- Related Investment Risk Smaller Company Risk Turnover Risk Please see Summary of Principal Risks following this section for a description of these and other risks of investing in the Portfolio. Prospectus 9

12 Principal Investments and Strategies RCM Dynamic Multi-Asset Plus VIT Portfolio Investment Objective Seeks long term capital appreciation Allocation Strategy Equity Exposure Fixed Income Exposure Dividend Frequency Annually Target 60% 40% Approximate Primary Capitalization Range Any Range 10%-65% Up to 90% The Portfolio seeks to achieve its investment objective through a combination of active allocation between asset classes and actively managed strategies within those asset classes. To gain exposure to the various asset classes, the Portfolio incorporates actively managed strategies and/or passive instruments, including affiliated and unaffiliated funds, pooled investment vehicles, exchange-traded funds ( ETFs ) and exchange-traded notes, and derivative instruments such as futures. The Portfolio invests directly and indirectly in a globally diverse combination of equity securities, and U.S. dollar denominated fixed income securities, in each case including emerging market securities. The Portfolio s baseline long-term asset allocation consists of 60% to equity exposure (the Equity Component ) and 40% to fixed income exposure (the Fixed Income Component ), which is also the allocation of the blended benchmark index against which the Portfolio is managed. The portfolio managers will typically over- or under-weight the Portfolio against this baseline long-term allocation, depending upon the portfolio managers view of the relative attractiveness of the investment opportunities available, which will change over time. The Portfolio may invest significantly below its target with respect to the Equity Component and significantly above its target with respect to the Fixed Income Component. Under normal circumstances, the Portfolio will not invest more than 20% of its assets in any combination of the following asset classes: high yield debt (commonly known as junk bonds ), bank loans, global bonds, emerging markets equities, emerging markets debt, Treasury Inflation-Protected Securities ( TIPS ) and real estate securities, including U.S. and non-u.s. real estate investment trusts ( REITs ). The Portfolio may either invest directly in these different asset classes or indirectly through derivatives and other instruments, such as through investments in mutual funds or ETFs. The portfolio managers currently expect that the Portfolio s average duration with respect to any fixed-income asset class (e.g. governments) in which the Portfolio invests directly (i.e., not through derivatives or ETFs) will typically resemble that of a related broad-based index. For example, with respect to government securities, the portfolio managers target a maximum duration of one year above the duration of the Barclays Aggregate Government Bond Index. Duration is a measure used to determine the sensitivity of a security s price to changes in interest rates. The longer a security s duration, the more sensitive it will be to changes in interest rates. The portfolio managers allocate the Portfolio s investments among asset classes in response to changing market, economic, and political factors and events that the portfolio managers believe may affect the value of the Portfolio s investments. In making investment decisions for the Portfolio, the portfolio managers seek to identify trends and turning points in the global markets. The portfolio managers analyze market cycles, economic cycles and valuations of each asset class and their components and may adjust the Portfolio s exposures to individual holdings and asset classes. The portfolio managers also employ a risk management strategy, which may cause an adjustment to the Portfolio s asset allocation in an effort to mitigate certain downside risks. Depending on market conditions, the Equity Component may range between approximately 10% and 65% of the Portfolio s assets and the Fixed Income Component may account for up to 90% of the Portfolio s assets at the time of investment. The Portfolio seeks to limit downside risk by moving toward less volatile asset classes during periods of high market volatility. Volatility is a statistical measure of risk relating to the magnitude of up and down fluctuations in the value of a financial instrument or index over time and typically results from rapid price swings. Under normal circumstances, the Portfolio will seek to maintain a one year annualized volatility level at or below 12% over a market cycle. A higher volatility level indicates more frequent or rapid up and down fluctuations in the values of the Portfolio s investments relative to a lower volatility level. There can be no assurance that investment decisions made in seeking to manage Portfolio volatility will achieve the desired results. The Portfolio s actual or realized volatility will be dependent on the market environment. The portfolio managers may adjust the Portfolio s exposure to the Equity Component and the Fixed Income Component in response to momentum and momentum reversion signals in an effort to mitigate downside risk in times of severe market stress and to increase the return potential in favorable markets. Momentum is the tendency of a performance trend to continue to move in the same direction. Momentum reversion is the tendency that a performance trend will ultimately change and move in an opposite direction. The portfolio 10 Premier Multi-Series VIT

13 RCM Dynamic Multi-Asset Plus VIT Portfolio (continued) Principal Risks managers look for signals through use of quantitative metrics which may signal momentum or momentum reversion. The portfolio managers believe positive momentum suggests future periods of positive investment returns and typical levels of market volatility. When the momentum signals for an asset class indicate positive momentum, the portfolio managers may increase the Portfolio s exposure to that asset class. The portfolio managers believe negative momentum suggests future periods of negative investment returns and increased volatility. When the portfolio managers recognize negative momentum for an asset class, the Portfolio may reduce its exposure to that asset class. Momentum reversion signals indicate when momentum appears excessive. In such circumstances the portfolio managers may act counter to the momentum. In evaluating momentum and momentum reversion signals, the portfolio managers will designate sub-categories of asset classes within the Equity Component and the Fixed Income Component, which may change over time. While the portfolio managers attempt to mitigate the downside risk to stabilize performance, there can be no assurance that the Portfolio will be successful in doing so. In addition to the momentum and momentum reversion signals, the portfolio managers also apply fundamental analysis to adjust the Portfolio s exposure to the asset classes that exhibit the strongest return prospects. The fundamental analysis attempts to locate opportunities not identified from momentum-related signals. After determining the asset allocation among the Components, the portfolio managers select particular investments in an effort to obtain exposure to the relevant mix of asset classes. The Portfolio may invest in any type of equity or fixed income security, including common and preferred stocks, ETFs, warrants, mortgagebacked securities, asset-backed securities and government and corporate bonds. The Portfolio may invest in securities of companies of any capitalization, including smaller capitalization companies. The Portfolio also may make investments intended to provide exposure to one or more securities indices, currencies, and real estaterelated securities. The Portfolio is expected to be highly diversified across industries, sectors, and countries. The Portfolio may liquidate a holding if it locates another instrument that offers a more attractive exposure to an asset class or when there is a change in the Portfolio s target asset allocation, or if the instrument is otherwise deemed inappropriate. In implementing these investment strategies, the Portfolio may make substantial use of over-the-counter (OTC) or exchange-traded derivatives, including futures contracts, interest rate swaps, total return swaps, credit default swaps, currency forwards, and structured notes. The Portfolio may use derivatives for a variety of purposes, including: as a hedge against adverse changes in the market price of securities, interest rates, or currency exchange rates; as a substitute for purchasing or selling securities; to increase the Portfolio s return as a non-hedging strategy that may be considered speculative; and to manage portfolio characteristics. The Portfolio may maintain a significant percentage of its assets in cash and cash equivalents which will serve as margin or collateral for the Portfolio s obligations under derivative transactions. The Portfolio may, at any time, invest in affiliated and unaffiliated funds (which may include certain affiliated mutual funds and ETFs sponsored by Allianz Asset Management of America L.P. or its subsidiaries (the Underlying Funds ) and ETFs, mutual funds and pooled investment vehicles other than the Underlying Funds ( Other Acquired Funds )). The Portfolio may participate in initial public offerings (IPOs). Among the principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are (in alphabetical order after the first five risks): Credit and Counterparty Risk Currency Risk Derivatives Risk Equity Securities Risk Fixed Income Risk Emerging Markets Risk High Yield Risk Index Risk Interest Rate Risk IPO Risk Issuer Risk Leveraging Risk Liquidity Risk Management Risk Market Risk Mortgage-Related and Other Asset-Backed Risk Non-U.S. Investment Risk REIT and Real Estate- Related Investment Risk Smaller Company Risk Turnover Risk Variable Distribution Risk Please see Summary of Principal Risks following this section for a description of these and other risks of investing in the Portfolio. Prospectus 11

14 Credit and Counterparty Risk Currency Risk Derivatives Risk Summary of Principal Risks The value of your investment in a Portfolio changes with the values of that Portfolio s investments. Many factors can affect those values. The factors that are most likely to have a material effect on a particular Portfolio s portfolio as a whole are called principal risks. The principal risks of each Portfolio are summarized in the Portfolio Summaries and are described in more detail in this section. Each Portfolio may be subject to additional risks other than those described below because the types of investments made by a Portfolio can change over time. Securities and investment techniques appearing in bold type below are described in greater detail under Characteristics and Risks of Securities and Investment Techniques. That section and Investment Objectives and Policies in the Statement of Additional Information also include more information about the Portfolios, their investments and the related risks. There is no guarantee that a Portfolio will be able to achieve its investment objective. It is possible to lose money by investing in a Portfolio. A Portfolio could lose money if the issuer or guarantor of a fixed income security (including a security purchased with securities lending cash collateral) is unable or unwilling, or is perceived (whether by market participants, ratings agencies, pricing services or otherwise) as unable or unwilling, to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in their credit ratings and a fund holding a fixed income security is subject to the risk that the security s credit rating will be downgraded. Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, at least one major rating agency downgraded the long-term U.S. credit rating in 2011 due to the rising public debt burden and perception of greater policymaking uncertainty in the U.S. and introduced greater uncertainty about the ability of the U.S. to repay its obligations. A further credit rating downgrade or a U.S. credit default could decrease the value and increase the volatility of a Portfolio s investments, to the extent that a Portfolio has exposure to securities issued by the U.S. Treasury. Counterparty Risk. A Portfolio is also subject to the risk that a counterparty to a derivatives contract, repurchase agreement, aloan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the Portfolio. If a counterparty fails to meet its contractual obligations, goes bankrupt, or otherwise experiences a business interruption, a Portfolio could miss investment opportunities or otherwise hold investments it would prefer to sell, resulting in losses for the Portfolio. Counterparty risk may be pronounced during unusually adverse market conditions and may be particularly acute in environments in which financial services firms are exposed to systemic risks of the type evidenced by the 2008 insolvency of Lehman Brothers and subsequent market disruptions. Portfolios that invest directly in foreign (non-u.s.) currencies, or in securities that trade in, or receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or non-u.s. governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, a Portfolio s exposure to foreign currencies, including investments in foreign currencydenominated securities, may reduce the returns of that Portfolio. The local emerging market currencies in which a Portfolio may be invested from time to time may experience substantially greater volatility against the U.S. dollar than the major convertible currencies of developed countries. Derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index. The derivatives that may be used by a Portfolio are discussed in more detail under Characteristics and Risks of Securities and Investment Techniques Derivatives in this Prospectus and described in more detail under Investment Objectives and Policies in the Statement of Additional Information. A Portfolio may (but is not required to) use derivatives as part of a strategy designed to reduce exposure to other risks, such as risks associated with changes in interest rates or currency risk. A Portfolio may also use derivatives for leverage, which increases opportunities for gain but also involves greater risk of loss due to leveraging risk, and to gain exposure to issuers, indices, sectors, currencies and/or geographic regions. A Portfolio s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. A Portfolio s investment in a derivative instrument could lose more than the principal amount invested, and the use of certain derivatives may subject a Portfolio to the potential for unlimited loss. Derivatives are subject to a number of risks described elsewhere in this section, such as liquidity risk, market risk, credit and counterparty risk and management risk. As a seller of a credit default swap, a Portfolio effectively adds economic leverage because, in addition to its total net assets, the Portfolio is 12 Premier Multi-Series VIT

15 Emerging Markets Risk subject to investment exposure on the notional amount of the swap. See Leveraging Risk. Additionally, holding a position in a credit default swap could result in losses if a Portfolio does not correctly evaluate the creditworthiness of the company on which the credit default swap is based. To the extent a Portfolio writes call options on individual securities that it does not hold in its portfolio (i.e., naked call options), it is subject to the risk that a liquid market for the underlying security may not exist at the time an option is exercised or when a Portfolio otherwise seeks to close out an option position. Naked call options have speculative characteristics and the potential for unlimited loss. Derivatives also involve the risk of mispricing or improper valuation, the risk of ambiguous documentation, and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that a Portfolio will engage in these transactions to reduce exposure to other risks when that would be beneficial or that, if used, such strategies will be successful. Under recently adopted rules and regulations, transactions in some types of swaps (including interest rate swaps and credit default swaps on North American and European indices) are required to be centrally cleared. In a cleared derivatives transaction, a Portfolio s counterparty is a clearing house, rather than a bank or broker. Since a Portfolio is not a member of clearing houses and only members of a clearing house can participate directly in the clearing house, a Portfolio will hold cleared derivatives through accounts at clearing members. In cleared derivatives transactions, a Portfolio will make payments (including margin payments) to and receive payments from a clearing house through their accounts at clearing members. Clearing members guarantee performance of their clients obligations to the clearing house. Centrally cleared derivative arrangements may be less favorable to mutual funds than bilateral arrangements. For example, a Portfolio may be required to provide greater amounts of margin for cleared derivatives transactions than for bilateral derivatives transactions. Also, in contrast to bilateral derivatives transactions, following a period of notice to a Portfolio, a clearing member generally can require termination of existing cleared derivatives transactions at any time or increases in margin requirements above the margin that the clearing member required at the beginning of a transaction. Clearing houses also have broad rights to increase margin requirements for existing transactions or to terminate transactions at any time. Other recent U.S. and non-u.s. legislative and regulatory reforms, including those related to the Dodd- Frank Wall Street Reform and Consumer Protection Act and the 1940 Act restrictions with respect to senior securities, have resulted in, and may in the future result in, new regulation of derivative instruments and the Portfolios use of such instruments. New regulations could, among other things, restrict a Portfolio s ability to engage in derivative transactions (for example, by making certain types of derivative instruments or transactions no longer available to a Portfolio), establish new margin requirements and/or increase the costs of derivatives transactions, and the Portfolio may as a result be unable to execute its investment strategies in a manner its Sub- Adviser might otherwise choose. A Portfolio that invests in non-u.s. securities and/or currencies may experience more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. issuers or securities that trade exclusively in U.S. markets. See Non-U.S. Investment Risk below. Non-U.S. investment risk may be particularly high to the extent that a Portfolio invests in emerging market securities, that is, securities of issuers tied economically to countries with developing economies. These securities may present market, credit, currency, liquidity, legal, political, technical and other risks different from, or greater than, the risks of investing in developed countries. Certain emerging market countries may impose restrictions on foreign investment and repatriation of investment income and capital. In addition, foreign investors, including a Portfolio, may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, nationalization or the creation of government monopolies. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by a Portfolio. See Currency Risk. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries. Emerging market securities may trade in more limited volume than comparable securities in developed foreign markets. Emerging market securities may have different clearance and settlement procedures, which may be unable to keep pace with the volume of securities transactions or otherwise make it difficult to engage in such transactions. Settlement problems may cause a Portfolio to miss attractive investment opportunities, hold a portion of its assets in cash pending investment, or be delayed in disposing of a portfolio security, all of which would negatively affect the Portfolio s performance. Prospectus 13

16 Equity Securities Risk Fixed Income Risk In addition, the risks associated with investing in a narrowly-defined geographic area (discussed below under Non-U.S. Investment Risk and Focused Investment Risk ) are generally more pronounced with respect to investments in emerging market countries. A Portfolio may also be subject to Emerging Markets Risk if it invests in derivatives or other securities or instruments whose value or returns are related to the value or returns of emerging market securities. Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Equity securities may take the form of shares of common stock of a corporation, membership interests in a limited liability company, limited partnership interests, or other forms of ownership interests. Equity securities also include, among other things, preferred stocks, convertible securities and warrants. The value of a company s equity securities may fall as a result of factors directly relating to that company, such as decisions made by its management or lower demand for the company s products or services. The value of an equity security may also fall because of factors affecting not just the company, but also companies in the same industry or in a number of different industries, such as increases in production costs. The value of a company s equity securities may also be affected by changes in financial markets that are relatively unrelated to the company or its industry, such as changes in interest rates or currency exchange rates or adverse circumstances involving the credit markets. In addition, because a company s equity securities rank junior in priority to the interests of bond holders and other creditors, a company s equity securities will usually react more strongly than its bonds and other debt to actual or perceived changes in the company s financial condition or prospects. To the extent a Portfolio invests in equity-related instruments it will also be subject to these risks. A Portfolio s investments may focus on equity securities of companies that its portfolio managers believe will experience relatively rapid earnings growth (growth securities) or that its portfolio managers believe are selling at a price lower than their true value (value securities). Growth securities typically trade at higher multiples of current earnings than other securities. Therefore, the value of growth securities may be more sensitive to changes in current or expected earnings than the value of other securities. Companies that issue value securities may have experienced adverse business developments or may be subject to special risks that have caused their securities to be out of favor. If a portfolio manager s assessment of a company s prospects is wrong, or if the market does not recognize the value of the company, the price of its securities may decline or may not approach the value that the portfolio manager anticipates. A Portfolio that invests in fixed income instruments is subject to interest rate risk. Changes in the market values of fixed income instruments are largely a function of changes in the current level of interest rates. The value of a Portfolio s investments in fixed income instruments will typically change as the level of interest rates fluctuate. During periods of declining interest rates, the values of fixed income instruments are generally expected to rise. Conversely, during periods of rising interest rates, the values of fixed income instruments are generally expected to decline. Duration is one measure of the expected life of a fixed income instrument that is used to determine the sensitivity of a security s price to changes in interest rates. Securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. As a general rule, a 1% rise in interest rates means a 1% fall in value for every year of positive duration. Similarly, as a general rule, if a Portfolio exhibited a negative duration profile and interest rates declined by 1%, there would be a 1% fall in value for every year of negative duration. Inflation-indexed securities, including Treasury Inflation Protected Securities (TIPs), decline in value when interest rates rise. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest rates, inflation-indexed securities may experience greater losses than other fixed income instruments with similar durations. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Also, some portfolios (e.g., portfolios with mortgage-backed and other prepayable securities) have changing durations and may have increasing durations precisely when that is least advantageous (i.e., when interest rates are rising). A Portfolio that invests in securities that are particularly sensitive to fluctuations in prevailing interest rates is subject to relatively high levels of interest rate risk. Such securities include various mortgage-related securities (e.g., the interest-only or IO class of a stripped mortgage-backed security) and zero coupon securities (fixed income instruments, including certain U.S. Government securities, that do not make periodic interest payments and are purchased at a discount from their value at maturity). The Portfolios may invest in securities issued by U.S. Government agencies or government enterprises. Although some of these securities may be guaranteed as to the payment of principal or interest by the relevant enterprise or agency, others may not be guaranteed, and therefore may be riskier than securities guaranteed by the U.S. Treasury. 14 Premier Multi-Series VIT

17 High Yield Risk Index Risk Interest Rate Risk IPO Risk Focused Investment Risk A Portfolio that invests in high yield securities and unrated securities of similar credit quality (sometimes referred to as high yield securities or junk bonds ) may be subject to greater levels of credit and liquidity risk than a Portfolio that does not invest in such securities. These securities are considered predominately speculative with respect to the issuer s continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce a Portfolio s ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, a Portfolio may lose its entire investment. Because of the risks involved in investing in high yield securities, an investment in a Portfolio that invests in such securities should be considered speculative. The debt instruments of many non-u.s. governments, including their agencies, sub-divisions and instrumentalities, are below investment grade, and are therefore considered high yield instruments. Because certain Underlying Funds and Other Acquired Funds invest in derivatives that are linked to the performance of an index, they will be subject to the risks associated with changes in the applicable index. If the applicable index changes, such a fund could receive lower interest payments (in the case of a debt-related derivative) or experience a reduction in the value of the derivative to below what the fund paid. Certain indexed securities may create leverage to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. Interest rate risk is the risk that fixed income securities valuations will change because of changes in interest rates. During periods of rising nominal interest rates, the values of fixed income instruments are generally expected to decline. Conversely, during periods of declining nominal interest rates, the values of fixed income instruments are generally expected to rise. To the extent that a Portfolio effectively has short positions with respect to fixed income instruments, the values of such short positions would generally be expected to rise when nominal interest rates rise and to decline when nominal interest rates decline. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. The values of equity and other non-fixed income securities may also decline due to fluctuations in interest rates. Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When a Portfolio holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the net asset value of the Portfolio s shares. Securities offered in initial public offerings (IPOs) are subject to many of the same risks of investing in companies with smaller market capitalizations and often to a heightened degree. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile. At any particular time or from time to time, a Portfolio may not be able to invest in securities issued in IPOs, or invest to the extent desired, because, for example, only a small portion (if any) of the securities being offered in an IPO may be made available to that Portfolio. In addition, under certain market conditions, a relatively small number of companies may issue securities in IPOs. Similarly, as the number of funds to which IPO securities are allocated increases, the number of securities issued to any one fund may decrease. The investment performance of a Portfolio during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when that Portfolio is able to do so. In addition, as a Portfolio increases in size, the impact of IPOs on that Portfolio s performance will generally decrease. Focusing Portfolio investments in a small number of issuers, industries, foreign currencies or regions increases risk. Portfolios that are non-diversified because they may invest a significant portion of their assets in a relatively small number of issuers may have more risk because changes in the value of a single security or the impact of a single economic, political or regulatory occurrence may have a greater adverse impact on a Portfolio s net asset value. Similarly, certain underlying bond funds may have more risk because they may invest a substantial portion of their assets in bonds of similar projects or from issuers of the same status. Some of those issuers also may present substantial credit or other risks. Diversified Portfolios that invest in a relatively small number of issuers are subject to similar risks. In addition, a Portfolio may be subject to increased risk to the extent it focuses its investments in securities denominated in a particular foreign currency or in a narrowly defined geographic area, for example, regional economic risks relating to weather emergencies and natural disasters. Similarly, a Portfolio that focuses its investments in a certain type of issuer is particularly vulnerable to Prospectus 15

18 Issuer Risk Leveraging Risk Liquidity Risk Management Risk events affecting such type of issuer. Also, a Portfolio may have greater risk to the extent it invests a substantial portion of its assets in a group of related industries (or sectors ). The industries comprising any particular sector and investments in a particular foreign currency or in a narrowly defined geographic area outside the United States may share common characteristics, are often subject to similar business risks and regulatory burdens, and react similarly to economic, market, political or other developments. Furthermore, certain issuers, industries and regions may be adversely affected by the impacts of climate change on the demand for and the development of goods and services and related production costs, and the impacts of legislation, regulation and international accords related to climate change, as well as any indirect consequences of regulation or business trends driven by climate change. The value of a security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer s goods or services as well as the historical and prospective earnings of the issuer and the value of its assets. Leverage, including borrowing, will cause the value of a Portfolio s shares to be more volatile than if the Portfolio did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Portfolio s portfolio securities. A Portfolio may engage in transactions or purchase instruments that give rise to forms of leverage. Such transactions and instruments may include, among others, the use of reverse repurchase agreements and other borrowings, the investment of collateral from loans of portfolio securities, or the use of when-issued, delayed-delivery or forward commitment transactions. The use of derivatives and short sales may also involve leverage. The use of leverage may cause a Portfolio to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations or to meet segregation requirements. Certain types of leveraging transactions, such as short sales that are not against the box, could theoretically be subject to unlimited losses in cases where a Portfolio, for any reason, is unable to close out the transaction. In addition, to the extent a Portfolio borrows money, interest costs on such borrowings may not be recovered by any appreciation of the securities purchased with the borrowed amounts and could exceed the Portfolio s investment returns, resulting in greater losses. Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing a Portfolio from purchasing or selling such illiquid securities at an advantageous time or price, or possibly requiring a Portfolio to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. Portfolios with principal investment strategies that involve securities of companies with smaller market capitalizations, non-u.s. securities, Rule 144A securities, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer. In such cases, a Portfolio, due to limitations on investments in illiquid securities and the difficulty in purchasing and selling such securities or instruments, may be unable to achieve its desired level of exposure to a certain issuer or sector. Each Portfolio is subject to management risk because it is an actively managed investment portfolio. The Manager, the respective Sub-Adviser and the individual portfolio managers will apply investment techniques and risk analyses in making investment decisions for the Portfolios, but there can be no guarantee that these will produce the desired results. To the extent the portfolio managers employ quantitative models, whether proprietary or maintained by third parties, there can be no assurance that such models will behave as expected in all market conditions, including due to deviations between expected and actual relationships among variables. Any imperfections, errors, or limitations in such models could affect a Portfolio s performance. By necessity, such models make simplifying assumptions that limit their effectiveness. In addition, the computer programming used to construct, or the data employed by, quantitative models may contain errors, which may cause losses for a Portfolio or reduce performance. In the event third-party models become increasingly costly or unavailable, the portfolio managers may be forced to rely on proprietary models or to reduce or discontinue their use of quantitative models. The Portfolios are also subject to the risk that deficiencies in the operational systems or controls of the Manager or another service provider will cause losses for the Portfolios or hinder Portfolio operations. For example, trading delays or errors (both human and systemic) could prevent a Portfolio from purchasing a security expected to appreciate in value. Additionally, legislative, regulatory, or tax developments may affect the investment techniques available to the Manager, each Sub-Adviser and each individual portfolio manager in connection with managing the Portfolios and may also adversely affect the ability of the Portfolios to achieve their respective investment objectives. 16 Premier Multi-Series VIT

19 Market Risk Mortgage-Related and Other Asset- Backed Risk To the extent portfolio managers employ strategies that are not correlated to broader markets, or that are intended to seek returns under a variety of market conditions, certain Portfolios may outperform the general securities market during periods of flat or negative market performance, and underperform the securities market during periods of strong market performance. The market price of securities owned by a Portfolio may go up or down, sometimes rapidly or unpredictably. To the extent a Portfolio invests substantially in common stocks and/or other equity securities, a principal risk of investing in the Portfolio is that the investments in its portfolio will decline in value due to factors affecting securities markets generally or particular industries or sectors represented in those markets. The values of securities may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, adverse changes to credit markets or adverse investor sentiment generally. They may also decline due to factors that disproportionately affect a particular industry, group of related industries or sector, such as labor shortages or increased production costs and competitive conditions within an industry or sector. The market price of fixed income securities, as well as equity securities and other types of investments, may decline due to changes in interest rates or other factors affecting the applicable markets generally. Equity securities generally have greater price volatility than fixed income securities, although under certain market conditions fixed income securities may have comparable or greater price volatility. During a general downturn in securities markets, multiple asset classes may decline in value simultaneously. The Portfolios are subject to the risk that geopolitical and other events will disrupt securities markets, adversely affect global economies and markets and thereby decrease the value of the Portfolios investments. The wars in Iraq and Afghanistan have had a substantial effect on the economies and securities markets of the U.S. and other countries. Terrorism in the U.S. and around the world has had a similar global impact and has increased geopolitical risk. The terrorist attacks on September 11, 2001 resulted in the closure of some U.S. securities markets for four days, and similar attacks are possible in the future. Securities markets may be susceptible to market manipulation (e.g., the potential manipulation of the London Interbank Offered Rate (LIBOR)) or other fraudulent trade practices, which could disrupt the orderly functioning of these markets or adversely affect the value of investments traded in these markets, including investments of the Portfolios. While the U.S. government has honored its credit obligations continuously for the last 200 years, it remains possible that the U.S. could default on its obligations. While it is impossible to predict the consequences of such an unprecedented event, it is likely that a default by the U.S. would be highly disruptive to the U.S. and global securities markets and could significantly impair the value of the Portfolios investments. Similarly, political events within the U.S. at times have resulted, and may in the future result, in a shutdown of government services, which could negatively affect the U.S. economy, decrease the value of many Portfolio investments, and increase uncertainty in or impair the operation of the U.S. or other securities markets. The uncertainty surrounding the sovereign debt of a significant number of European Union countries, as well as the continued existence of the European Union itself, have disrupted and may continue to disrupt markets in the U.S. and around the world. If one or more countries leave the European Union or the European Union dissolves, the world s securities markets likely will be significantly disrupted. Substantial government interventions (e.g., currency controls) also could negatively impact the Portfolios. War, terrorism, economic uncertainty, and related geopolitical events have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. Likewise, natural and environmental disasters, such as the earthquake and tsunami in Japan in early 2011, and systemic market dislocations of the kind surrounding the insolvency of Lehman Brothers in 2008, if repeated, would be highly disruptive to economies and markets, adversely affecting individual companies and industries, securities markets, interest rates, credit ratings, inflation, investor sentiment, and other factors affecting the value of the Portfolios investments. During such market disruptions, the Portfolios exposure to the risks described elsewhere in this Summary of Principal Risks section will likely increase. Market disruptions, including sudden government interventions, can also prevent a Portfolio from implementing its investment program for a period of time and achieving its investment objective. For example, a market disruption may adversely affect the orderly functioning of the securities markets and may cause the Portfolios derivatives counterparties to discontinue offering derivatives on some underlying commodities, securities, reference rates, or indices, or to offer them on a more limited basis. To the extent a Portfolio has focused its investments in the stock index of a particular region, adverse geopolitical and other events could have a disproportionate impact on the Portfolio. A Portfolio that invests in a variety of mortgage-related and other asset-backed securities is subject to certain additional risks. Generally, rising interest rates tend to extend the duration of fixed-rate mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, Prospectus 17

20 Non-U.S. Investment Risk REIT and Real Estate-Related Investment Risk Smaller Company Risk Turnover Risk to the extent a Portfolio holds mortgage-related securities, it may exhibit additional volatility. This is known as extension risk. In addition, adjustable and fixed-rate mortgage-related securities may involve special risks relating to unanticipated rates of prepayment on the mortgages underlying the securities. This is known as prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of a Portfolio because the Portfolio may have to reinvest that money at the lower prevailing interest rates. A Portfolio s investments in other asset-backed securities are subject to risks similar to those associated with mortgage-related securities, as well as additional risks associated with the nature of the assets and the servicing of those assets. The market for mortgage-backed and other asset-backed securities has recently experienced high volatility and a lack of liquidity. As a result, the value of many of these securities has significantly declined. There can be no assurance that these markets will become more liquid or less volatile, and it is possible that the value of these securities could decline further. A Portfolio that invests in non-u.s. securities may cause it to experience more rapid and extreme changes in value than portfolios that invest exclusively in securities of U.S. issuers or securities that trade exclusively in U.S. markets. The securities markets of many non-u.s. countries are relatively small, with a limited number of companies representing a small number of industries. Additionally, issuers of non-u.s. securities are often not subject to the same degree of regulation as U.S. issuers. Reporting, accounting and auditing standards of non-u.s. countries differ, in some cases significantly, from U.S. standards. Also, nationalization, expropriation or confiscatory taxation, currency blockage, market disruption, political changes, security suspensions or diplomatic developments could adversely affect a Portfolio s investments in a non-u.s. country. In the event of nationalization, expropriation or other confiscation, a Portfolio could lose its entire investment in non-u.s. securities. The more a Portfolio invests its assets in a particular currency or geographic area, the more exposure it will generally have to regional economic risks, including weather emergencies and natural disasters. For example, to the extent a Portfolio may invest more than 25% of its assets in particular countries, it may be subject to increased risks due to political, economic, social or regulatory events in those countries. Adverse developments in certain regions can also adversely affect securities of other countries whose economies appear to be unrelated. In addition, a Portfolio s investments in non-u.s. securities may be subject to withholding and other taxes imposed by countries outside the U.S., which could reduce the return on an investment in a Portfolio. To the extent that a Portfolio invests in real estate-related investments, such as securities of real estate-related companies, real estate investment trusts (REITs), real estate operating companies (REOCs) and related instruments and derivatives, it will be subject to the risks associated with owning real estate and with the real estate industry generally. These include difficulties in valuing and disposing of real estate, the possibility of declines in the value of real estate, risks related to general and local economic conditions, the possibility of adverse changes in the climate for real estate, environmental liability risks, the risk of increases in property taxes and operating expenses, possible adverse changes in zoning laws, the risk of casualty or condemnation losses, limitations on rents, the possibility of adverse changes in interest rates and in the credit markets and the possibility of borrowers paying off mortgages sooner than expected, which may lead to reinvestment of assets at lower prevailing interest rates. The value of investments in the real estate sector also may be affected by macroeconomic developments, and social and economic trends. To the extent a Portfolio invests in REITs and/ or REOCs, it will also be subject to the risk that a REIT or REOC will default on its obligations or go bankrupt. By investing in REITs and/or REOCs indirectly through a Portfolio, a shareholder will bear not only his or her proportionate share of the expenses of a Portfolio, but also, indirectly, similar expenses of such REITs or REOCs. The general risks associated with investing in equity securities and liquidity risk are particularly pronounced for securities of companies with smaller market capitalizations. These companies may have limited product lines, markets or financial resources or they may depend on a few key employees. Securities of smaller companies may trade less frequently and in lesser volume than more widely held securities, and their values may fluctuate more sharply than other securities. They may also trade in the over-the-counter market or on a regional exchange, or may otherwise have limited liquidity. Companies with medium-sized market capitalizations also have substantial exposure to these risks. A change in the securities held by a Portfolio is known as portfolio turnover. Higher portfolio turnover involves correspondingly greater expenses to a Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also adversely impact a Portfolio s after-tax returns. The trading costs and tax effects associated with portfolio turnover may adversely affect a Portfolio s performance. 18 Premier Multi-Series VIT