6,7,8 Release Date: Franklin Income VIP Fund 09-30-2017 .......................................................................................................................................................................................................................................................................................................................................... Overall Morningstar Rating™ Morningstar Return Morningstar Risk QQQ Above Average High Out of 395 Allocation--30% to 50% Equity investments. An investment's overall Morningstar Rating, based on its risk- adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure page for details. Investment Strategy from investment's prospectus Morningstar Proprietary Statistics The investment seeks to maximize income while maintaining 1 Year 3 Year 5 Year 10 Year prospects for capital appreciation. Morningstar Rating™ . QQ QQQQ QQQ The fund invests in a diversified portfolio of debt and equity Fund Rank Percentile 2 57 8 16 securities. It may shift its investments from one asset class to Out of # of Investments 502 395 356 257 another based on the investment manager's analysis of the best opportunities for the fund's portfolio in a given market. The fund may invest up to 100% of its total assets in debt securities Portfolio Analysis that are rated below investment grade (also known as "junk Composition as of 06-30-17 % Assets Morningstar Style Box™ U.S. Stocks 39.1 Equity (as of 03-31-17) Fixed Income (as of 03-31-17) bonds"), including a portion in defaulted securities. It may also Large High Non-U.S. Stocks 11.1 invest up to 25% of its assets in foreign securities, either Bonds 35.3 Mid Med directly or through depositary receipts. Cash 7.4 Past name(s) : Franklin Income Securities Cl1. Other 7.1 Small Low Morningstar Category: Allocation--30% to 50% Equity Value Blend Growth Ltd Mod Ext Funds in allocation categories seek to provide both income and capital appreciation by investing in multiple asset classes, HoldingModuleTopHeader as of 06-30-17 % Assets Statistics as of 06-30-17 Port Avg Rel S&P 500 Rel Cat including stocks, bonds, and cash. These portfolios are Lake Forest Money Market 6.66 P/E Ratio 15.52 0.75 0.85 dominated by domestic holdings and have equity exposures Royal Dutch Shell PLC ADR Class A 2.62 P/B Ratio 1.99 0.68 0.91 between 30% and 50%. Chevron Corp 1.80 P/C Ratio 7.58 0.63 0.89 Dow Chemical Co 1.75 GeoAvgCap ($mil) 97899.37 1.09 2.60 Volatility Risk General Electric Co 1.75 ....................................................................................................... Investment Risk Measures as of 09-30-17 Port Avg Rel S&P 500 Rel Cat Wells Fargo & Co 1.54 Low Moderate High 3 Yr Std Dev 7.56 0.75 1.52 Apple Inc 1.52 3 Yr Beta 1.17 . 1.65 Category Pfizer Inc 1.45 3 Yr Sharpe Ratio 0.53 0.51 0.66 Target Corp 1.40 3 Yr Alpha -2.69 . 6.75 United Technologies Corp 1.39 ....................................................................................................... 3 Yr R-squared 87.94 . 0.92 In the past, this investment has shown a relatively moderate ....................................................................................................... Ford Motor Co 1.30 range of price fluctuations relative to other investments. This IncomeRatio 4.26 . Dominion Energy Inc 1.25 investment may experience larger or smaller price declines or InformationRatio -0.68 . 0.86 Rio Tinto PLC ADR 1.24 price increases depending on market conditions. Some of this MetLife Inc 1.12 risk may be offset by owning other investments with different Morningstar Super Sectors as of 06-30-17 % Fund Microsoft Corp 1.12 portfolio makeups or investment strategies. ....................................................................................................... h Cyclical 24.72 Chs / Cmnty Health Sys 8% 11-15-19 1.11 j Sensitive 37.75 PepsiCo Inc 1.10 Best 3 Month Return Worst 3 Month Return k Defensive 37.54 De 6.00% Eln Issued By Morgan 05-22-18 1.07 20.64% -29.06% JPMorgan Chase & Co 1.03 (Mar '09 - May '09) (Sep '08 - Nov '08) Morningstar F-I Sectors as of 06-30-17 % Fund % Category BP PLC ADR 1.02 ⁄ Government 0.00 33.99 ....................................................................................................... Operations › Corporate 82.11 32.79 Total Number of Stock Holdings 63 € Securitized 0.30 14.64 Net Annual Fund 0.46 Total Number of Bond Holdings 153 ‹ Municipal 0.00 4.28 Operating Expense Annual Turnover Ratio % 39.03 fi Cash/Cash Equivalents 17.58 10.80 Fund Inception Date 01-24-89 Total Fund Assets ($mil) 6,120.52 ± Other 0.00 3.51 Advisor Franklin Advisers Inc Subadvisor . Important Disclosures Must be accompanied by standardized performance information for an Allianz Life Insurance Company of North Portfolio Manager(s) America or Allianz Life Insurance Company of New York variable annuity. Past performance is not a guarantee of Edward D. Perks, CFA. B.A., Yale University,. future results. Performance shown is historical. Investment returns and principal value will fluctuate with market Matthew D. Quinlan, CFA. M.B.A., University of California–Los conditions so that units, when redeemed, may be worth more or less than the original cost. This performance Angeles (Anderson),. B.A., University of California–Los information does not reflect contract level expenses. If expenses were applied, performance would be lower. Angeles,. Current performance may be lower or higher than the performance data quoted. To obtain the most recent performance information, please visit our website www.allianzlife.com , and in New York at www.allianzlife.com/ newyork. FVF829 ©2017 Morningstar, Inc., Morningstar Investment Profiles™ 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to ® Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future ß performance. Visit our investment website at www.morningstar.com. Disclosure This material must be preceded or accompanied by a Volatility Risk separate measures are then weighted and averaged to produce current prospectus for variable annuities. Call your The term volatility is used to mean standard deviation. Standard an overall measure for the fund. Funds with less than three years financial professional or Allianz Life at 800.624.0197 to deviation of fund returns measures how much a fund’s total of performance history are not rated. obtain a prospectus from Allianz Life Insurance returns have fluctuated in the past. Company of North America (Allianz Life®) and, in New Investment Risk York, from Allianz Life Insurance Company of New York Prospectus Net Expense Ratio You could lose money by investing in the Fund. Although (Allianz Life® of NY) variable annuities and variable This is the percentage of fund assets paid for operating the Fund seeks to preserve the value of your investment investment options. The prospectuses contain details on expenses and management fees. The expense ratio typically at $1.00 per share, it cannot guarantee it will do so. An investment objectives, risks, fees, and expenses, as includes the following types of fees: accounting, administrator, investment in the Fund is not insured or guaranteed by well as other information about the variable annuity and advisor, auditor, board of directors, custodial, distribution the Federal Deposit Insurance Corporation or any other underlying investment options, which you should (12b-1), legal, organizational, professional, registration, government agency. The Fund’s sponsor has no legal carefully consider. Please read the prospectuses shareholder reporting, sub-advisor, and transfer agency. The obligation to provide financial support to the Fund, and thoroughly before sending money. expense ratio does not reflect the fund's brokerage costs or any you should not expect that the sponsor will provide investor sales charges. In contrast to the gross expense ratio, financial support to the Fund at any time. The advisor or subadvisor of the investment options may have the net expense ratio does reflect fee waivers in effect during a public mutual fund with an investment objective that is similar the time period. 1. Small-cap and mid-cap stocks are more volatile than large- to that of the listed investment option. These are separate cap or more established companies' securities. portfolios that will have different investment performance due Also known as the Total Annual Fund Operating Expense Ratio to differing fees, expenses, relative cash flows, portfolio sizes, Net of Reimbursements, Morningstar pulls the prospectus net 2. This investment option seeks to match the performance of and other factors. expense ratio from the fund's most recent prospectus. the specified market index. Investors cannot invest directly into Prospectus expense ratios reflect material changes to the indexes. The investment options are available only as investment options expense structure for the current period, while annual report in variable annuity contracts and certain other tax-qualified expense ratios reflect the actual fees charged during a particular 3.The AZL®, Allianz NFJ, RCM, and PIMCO investment options investments. They are not made available to the general public fiscal year. are managed by an affiliate of Allianz Life Insurance