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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-06161
Allianz Funds
(Exact name of registrant as specified in charter)
1633 Broadway, New York, New York | 10019 | |
(Address of principal executive offices) | (Zip code) |
Scott Whisten
1633 Broadway,
New York, New York 10019
(Name and address of agent for service)
Registrant’s telephone number, including area code:212-739-3367
Date of fiscal year end: June 30
Date of reporting period: June 30, 2019
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ITEM 1. REPORT TO SHAREHOLDERS
Allianz Funds
SHARE CLASSES A, C, R, P, INSTITUTIONAL, R6, ADMINISTRATIVE
Annual Report
June 30, 2019
AllianzGI Emerging Markets Opportunities Fund
AllianzGI Focused Growth Fund
AllianzGI Global Natural Resources Fund
AllianzGI Global Small-Cap Fund
AllianzGI Health Sciences Fund
AllianzGI Income & Growth Fund
AllianzGI Mid-Cap Fund
AllianzGI NFJ Dividend Value Fund
AllianzGI NFJ International Value Fund
AllianzGI NFJ Large-Cap Value Fund
AllianzGI NFJ Mid-Cap Value Fund
AllianzGI NFJ Small-Cap Value Fund
AllianzGI Small-Cap Fund
AllianzGI Technology Fund
This material is authorized for use only when preceded or accompanied by the current Allianz Funds prospectus. Investors should consider the investment objectives, risks, charges and expenses of each Fund carefully before investing. This and other information is contained in the Funds’ prospectus or summary prospectus. Please read the prospectus carefully before you invest or send money.
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website (us.allianzgi.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at us.allianzgi.com/edelivery.
If you prefer to receive paper copies of your shareholder reports after January 1, 2021, direct investors may inform a Fund at any time. If you invest through a financial intermediary, you should contact your financial intermediary directly. Paper copies are provided free of charge and your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with a Fund or all funds held in your account if you invest through your financial intermediary.
Receive this report electronically and eliminate paper mailings.
To enroll, go to us.allianzgi.com/edelivery.
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A Word About Risk: A fund may be subject to various risks as described in its prospectus. Some of those risks may include, but are not limited to, the following: fixed-income risk, liquidity risk, derivatives risk, smaller company risk, non-US investment risk, focused investment risk and specific sector investment risks. Below investment grade securities involve a greater risk to principal than investment grade securities. Bond prices will normally decline as interest rates rise. The impact may be greater with longer-duration bonds. The market for certain securities may become illiquid, which could prevent a fund from purchasing or selling these securities at an advantageous time or price and possibly delay redemptions of fund shares. Use of derivative instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit and counterparty risk, management risk and the risk that a fund is unable to close out a position when it is most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested in those instruments. Investing in foreign securities may entail risk due to foreign economic and political developments; this risk may be enhanced when investing in emerging markets. Smaller companies may be more volatile than larger companies and may entail more risk. Concentrating investments in individual sectors may add additional risk and additional volatility compared to a diversified equity portfolio. The principal values of the funds are not guaranteed at any time. Please refer to the applicable fund’s current prospectus for complete details.
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Thomas J. Fuccillo
President & CEO
Dear Shareholder,
The US economic expansion continued during the 12-month fiscal reporting period ended June 30, 2019. In contrast, economic growth overseas weakened. Over this period, global equities generated mixed results. Meanwhile, the overall US bond market posted a strong return during the period.
The 12-Month Fiscal Period in Review
For the 12-month period ended June 30, 2019, US stocks returned 10.42%, as measured by the S&P 500 Index. Two measures of stock performance in developed international and global markets produced weak results, in dollar-denominated terms, with the MSCI EAFE (Europe, Australasia and Far East) Index returning 1.08% and the MSCI World Index returning 6.33%. Elsewhere, the MSCI Emerging Markets Index returned 1.21% in dollar-denominated terms. With respect to bonds, the Bloomberg Barclays US Credit Index returned 10.34% and the Bloomberg Barclays Global High Yield Index returned 7.76%. The Bloomberg Barclays US Government Bond Index returned 4.88%, while the broader bond market, as measured by the Bloomberg Barclays US Aggregate Bond Index, returned 7.87%.
Turning to the US economy, gross domestic product (“GDP”), the value of goods and services produced in the country, the broadest measure of economic activity and the principal indicator of economic performance, expanded at a 2.9% and 1.1% annual pace during the third and fourth quarters of 2018, respectively. The US economy then grew at a 3.1% annual pace during the first quarter of 2019. Finally, the Commerce Department’s initial reading showed that the economy expanded at a 2.1% annual pace in the second quarter of the year.
Looking back, the US Federal Reserve (the “Fed”) raised rates four times in 2018, with the last hike pushing the federal funds rate to a range between 2.25% and 2.50%. However, at its January 2019 meeting, the Fed indicated that it expected to pause from tightening monetary policy as it monitored incoming economic data. Then, at its June 2019 meeting, the Federal Open Market Committee (the “Committee”) communicated that it “continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes, but uncertainties about this outlook have increased.” In his press conference after the meeting Fed Chair Jerome Powell stated, “The case for somewhat more accommodative policy has strengthened.” Finally, at its meeting that concluded on July 31, 2019, after the reporting period ended, the Fed lowered the federal funds rate to a range between 2.00% and 2.25%. This was the Fed’s first rate cut since 2008.
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Economic growth outside the US weakened during the reporting period and the European Central Bank (“ECB”) and the Bank of Japan largely maintained their accommodative monetary policies. In June 2019, the ECB announced that it now expects to keep interest rates “at their present levels at least through the first half of 2020.” Later in the month, ECB President Mario Draghi said the central bank would consider how to adapt their policy tools “commensurate to the severity of the risk” to the economic outlook. In other developed countries, the Bank of England raised rates from 0.50% to 0.75% in August 2018, but then remained on hold through the remainder of the year.
Outlook
After a strong start to 2019, the markets abruptly turned volatile. In our opinion, the global economy looks increasingly fragmented, and our outlook calls for more unease over trade tensions and politics.
The outcome of US-China trade negotiations seems uncertain and we currently see only slightly better-than-even odds of the two countries signing a much-needed agreement. Without a deal, US tariffs could expand into consumer-oriented areas, increasing the prices of imported goods. The Fed will watch inflation closely, especially if more trade tariffs are implemented. The US central bank may be less inclined to keep rates low if inflation moves higher, which could undermine support for high stock prices. Still, while the US economy remains late-cycle, it isn’t yet facing a recession.
The second half of 2019 will be important for the European Union as it appoints new members to its leadership team. Support for mainstream pro-European parties held up in recent Parliamentary elections, but the legislative body will likely end up more fragmented and decision-making could slow. Meanwhile, in the UK, economic and corporate uncertainty is being prolonged by the extension of the Brexit decision until October 31, 2019. The election of a new Prime Minister raises additional questions about the future path of Brexit and policymaking overall.
With political uncertainty high, investors might consider pivoting towards income-generating investments—but with low to negative yields on many bonds and cash, we believe the biggest risk is still to take no risk. In our view, it will be important to take an active approach to investing. This approach could involve watching out for high-priced assets and taking contrarian positions when attractive valuations can be found.
On behalf of Allianz Global Investors U.S. LLC, the Funds’ investment adviser, thank you for investing with us. We encourage you to consult with your financial advisor and to visit our website, us.allianzgi.com, for additional information. We remain dedicated to serving your investment needs.
Sincerely,
Thomas J. Fuccillo
President & CEO
Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an index.
Receive this report electronically and eliminate paper mailings.
To enroll, go to us.allianzgi.com/edelivery.
Annual Report | | June 30, 2019 | 3 |
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Unaudited
AllianzGI Emerging Markets Opportunities Fund
For the period of July 1, 2018 through June 30, 2019, as provided by Lu Yu, CFA, CIPM, Portfolio Manager.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI Emerging Markets Opportunities Fund (the “Fund”) returned -3.29%, underperforming the MSCI Emerging Markets Index (the “benchmark”), which returned 1.21%.
Market Overview
Emerging markets were influenced by rapidly changing investor sentiment, which was marked by stark differences between the first half and second half of the reporting period. Initially, the asset class performance was negatively impacted by apprehension over a global trade war between the US and China, mounting geopolitical tensions in Russia and concerns of rising inflation expectations which could lead the US Federal Reserve to accelerate rate hikes. Emerging market currencies broadly declined as result of a moderation in asset class sentiment and earnings estimates were subsequently lowered. These headwinds were present during the first half of the reporting period with July and November the only positive performance months to counteract this trend. Emerging markets equities rebounded in the second half of the reporting period as the asset class was initially buoyed by expectations that central banks would slow the pace of rate hikes. In addition, the market remained hopeful for an eventual trade resolution between the US and China, which had been an overhang for the asset class for the past year. The seesawing market changed course with a broad-based decline in May as market participants were surprised by the escalating trade tensions between the US and China, with both countries imposing new tariffs on each other’s exports, which led to a spike in volatility. Emerging markets equities advanced in June as the potential for central bank rate cuts inched higher and headwinds from a strengthening US dollar eased.
Regional results were led by a nearly 19% gain in Latin American equities. Brazil was the standout performer, advancing close to 40% amid optimism over the reform agenda of newly-elected President Jair Bolsanaro and the potential for government pension reform. With the exception of a low-single-digit gain in Peru, all other countries in the region were lower for the period. Emerging European shares were up more than 16% for the period, led by a 28% gain in Russian equities amid higher energy demand and improving economic growth figures. Meanwhile, geopolitical risks in Turkey and Greece results in both countries posting losses. Asian equities rounded out the three primary regions with a 2% loss. The Philippines, Thailand and Indonesia each notched gains north of 20% thanks to improving growth outlooks. Meanwhile, China was down close to 7% for the period due to rising trade and tariff tensions with the United States. The escalating trade rhetoric also impacted South Korea, which was down nearly 9% for the reporting period.
The benchmark index performance was mixed, with 7 out of 11 sectors advancing. Energy led gains to the upside with a greater than 16% advance, followed by low-double-digit gains in financials and real estate. Meanwhile, health care was the primary laggard, declining nearly 25% during the reporting period amid rising uncertainty over future earnings growth. Information technology, consumer discretionary and materials sectors posted single-digit losses.
Portfolio Review
The Fund’s strategy seeks to deliver outperformance over time by investing in emerging market companies that are benefiting from change not yet fully reflected in the market, via the team’s behavioral finance-focused investment process.
During the twelve-month period, Fund results trailed the benchmark due to a handful of idiosyncratic effects as well as the outperformance of high growth and high beta names within the benchmark, which the Fund is generally underweight.
From a country standpoint, bottom-up stock selection in South Africa and India contributed to results as did a relative overweight allocation to Russia. Meanwhile, stock selection in South Korea and Taiwan offset results as did the underweight to Brazil, which benefitted from a rebound in investor sentiment. A sizeable underweight to the health care proved advantageous given the performance challenges in the sector as was an overweight allocation to the energy sector which benefitted from higher demand. Alternatively, bottom-up selections in materials, financials and consumer discretionary names detracted from relative performance during the reporting period.
Outlook
Emerging market equities remain affected by the “tug-of-war” between compelling stock-level opportunities and prevailing macroeconomic crosscurrents. Market participants were thrown for a surprise when the prospects for a trade agreement between the United States and China took a step backward, leading to a greater level of uncertainty as to when or even if the dispute will be resolved. While we believe the long-term potential for earnings growth remains intact, including expectations of double-digit earnings growth in the upcoming two calendar years, the persistent trade and tariff dispute continues to cloud the near-term outlook. However, inflation risks remain subdued, which could result in central banks cutting interest rates in the future. This may bode well for higher risk asset classes such as emerging market equities.
We continue to construct the Fund on a bottom-up basis with conviction at the stock level. In addition, we apply a dual risk-budget, targeting a tracking error of 4-5% and lower forecast risk than the benchmark, which we believe may help protect capital during inevitable down market periods and provide our clients with a greater level of return consistency. We believe investment results will be supported by earnings growth and our behavioral finance-focused investment process and focus on higher quality securities with attractive company fundamentals will be a driver of returns for the coming quarters.
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Unaudited
AllianzGI Emerging Markets Opportunities Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Emerging Markets Opportunities Fund Class A | –3.29% | 1.52% | 5.74% | 8.48% | ||||||||||||||
| AllianzGI Emerging Markets Opportunities Fund Class A (adjusted) | –8.61% | 0.37% | 5.14% | 8.07% | |||||||||||||
AllianzGI Emerging Markets Opportunities Fund Class C | –4.05% | 0.75% | 4.94% | 7.66% | ||||||||||||||
| AllianzGI Emerging Markets Opportunities Fund Class C (adjusted) | –5.00% | 0.75% | 4.94% | 7.66% | |||||||||||||
| AllianzGI Emerging Markets Opportunities Fund Class P | –3.05% | 1.77% | 6.00% | 8.77% | |||||||||||||
| AllianzGI Emerging Markets Opportunities Fund Institutional Class | –2.97% | 1.87% | 6.13% | 8.89% | |||||||||||||
| AllianzGI Emerging Markets Opportunities Fund Class R6 | –2.96% | 1.92% | 6.18% | 8.95% | |||||||||||||
| MSCI Emerging Markets Index | 1.21% | 2.49% | 5.81% | 8.64% | |||||||||||||
Lipper Emerging Markets Funds Average | 1.28% | 1.78% | 5.91% | 8.24% |
† The Fund began operations on 5/27/04. Benchmark comparisons began on the fund inception date. Lipper comparisons began on 5/31/04.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.61% for Class A shares, 2.36% for Class C shares, 1.36% for Class P shares, 1.26% for Institutional Class and 1.21% for Class R6 shares. These ratios do not include an expense reduction, contractually agreed through at least October 31, 2019. The Fund’s expense ratios net of these reductions and waivers are 1.26% for Class A shares, 2.01% for Class C shares, 1.01% for Class P shares, 0.91% for Institutional Class shares and 0.86% for Class R6 shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 5/27/04. Benchmark comparisons began on the fund inception date.
Country Allocation (as of June 30, 2019)
China | 34.1% | |||
India | 10.8% | |||
Korea (Republic of) | 9.5% | |||
Russian Federation | 8.5% | |||
Brazil | 7.7% | |||
Taiwan | 7.3% | |||
South Africa | 4.9% | |||
Hong Kong | 4.5% | |||
Other | 10.6% | |||
Cash & Equivalents — Net | 2.1% |
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Unaudited
AllianzGI Emerging Markets Opportunities Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||
Class A | Class C | Class P | Institutional Class | Class R6 | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,093.80 | $1,089.40 | $1,095.20 | $1,095.40 | $1,095.50 | |||||
Expenses Paid During Period | $6.54 | $10.41 | $5.25 | $4.73 | $4.47 | |||||
Hypothetical Performance | ||||||||||
(5% return before expenses) | ||||||||||
Class A | Class C | Class P | Institutional Class | Class R6 | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,018.55 | $1,014.83 | $1,019.79 | $1,020.28 | $1,020.53 | |||||
Expenses Paid During Period | $6.31 | $10.04 | $5.06 | $4.56 | $4.31 |
For each class of the Fund, expenses (net of fee waivers) are equal to the annualized expense ratio for the class (1.26% for Class A, 2.01% for Class C, 1.01% for Class P, 0.91% for Institutional Class and 0.86% for Class R6), multiplied by the average account value over the period, multiplied by 181/365. These expenses do not include the expenses of the investment companies in which the Fund invests, which are indirectly borne by Fund shareholders.
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Unaudited
AllianzGI Focused Growth Fund
For the period of July 1, 2018 through June 30, 2019, as provided by Karen Hiatt, CFA, Lead Portfolio Manager.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A Shares at net asset value (“NAV”) of the AllianzGI Focused Growth Fund (the “Fund”) returned 6.79%, underperforming the Russell 1000 Growth Index (the “benchmark”) which returned 11.56%.
Market Overview
Despite the abrupt sell-off in the final quarter of 2018, sparked by a convergence of multiple headwinds, US equities delivered solid gains over the full period. US equities posted robust gains over the first half of 2019, offsetting the sharp declines from late 2018. Corporate earnings remained supportive and a more dovish tone from the US Federal Reserve (Fed) boosted sentiment. While US equities suffered a sharp set-back in May as the US and China trade talks broke down, stocks rebounded in June amid growing speculation that the Fed may be more inclined to cut rates to protect the US economy.
Portfolio Review
The Fund’s underperformance relative to its benchmark is mostly attributed to challenging market conditions that affected performance in the fourth quarter of 2018.
For the twelve-month period, the Fund’s relative performance was helped by an overweight position in software-as-a-service provider, ServiceNow. The company has delivered consistently strong growth as customers are adopting an increasing number of software products across its platform. Additionally, payments companies such as Paypal and Visa continue to benefit from the ongoing global shift to digital and mobile payments. Within healthcare, Insulet performed well as demand for its diabetes pumps remains robust within a large and growing market. Lastly, our underweight to Alphabet (Google) helped relative returns. The company has been facing more regulatory scrutiny in Europe and the US, as well as slower growth in its core business.
Conversely, relative performance was negatively impacted by our exposure to some health care stocks as the sector was hurt by reform proposals from Presidential candidates. In addition, CVS sharply reduced guidance due to an underperforming previous acquisition, while the FDA delayed approval for a pain drug made by Heron Therapeutics. Overweight positions in NVIDIA and Applied Materials underperformed as the semiconductor group struggled amid the ongoing trade dispute between the US and China. Finally, our position in SVB Financial Group underperformed, mostly due to fears of negative fallout from the fourth quarter sell-off as well as concerns that lower deposits will diminish earnings.
From a sector allocation perspective, an overweight in technology and a slight underweight in the industrials sector helped relative performance. Conversely, overweight positions in the health care and energy sectors hurt relative performance.
Outlook
We are generally optimistic on US equities for the second half of 2019. Despite a lull in May, general US employment data remains strong. While some macroeconomic data has deteriorated partly due to trade uncertainty, the Fed has become more dovish in recent months and is now inclined to cut interest rates. Although US corporate profit growth will likely be down relative to 2018, we expect to see positive profits for the year. Despite the macro and political uncertainties, we believe high quality growth companies remain well-positioned to deliver attractive returns.
We believe that the market will ultimately reward companies that deliver consistent growth and increase shareholder value over time. Our focus continues to be on applying rigorous fundamental research to identify companies with strong or under-appreciated growth prospects and attractive risk-reward characteristics.
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Unaudited
AllianzGI Focused Growth Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Focused Growth Fund Class A | 6.79% | 11.88% | 14.95% | 11.30% | ||||||||||||||
| AllianzGI Focused Growth Fund Class A (adjusted) | 0.92% | 10.62% | 14.30% | 11.12% | |||||||||||||
AllianzGI Focused Growth Fund Class C | 5.93% | 11.03% | 14.08% | 10.46% | ||||||||||||||
| AllianzGI Focused Growth Fund Class C (adjusted) | 5.06% | 11.03% | 14.08% | 10.46% | |||||||||||||
| AllianzGI Focused Growth Fund Class R | 6.47% | 11.59% | 14.66% | 10.95% | |||||||||||||
| AllianzGI Focused Growth Fund Class P | 7.01% | 12.15% | 15.24% | 11.60% | |||||||||||||
| AllianzGI Focused Growth Fund Institutional Class | 7.15% | 12.27% | 15.35% | 11.71% | |||||||||||||
| AllianzGI Focused Growth Fund Class R6 | 7.18% | 12.31% | 15.40% | 11.77% | |||||||||||||
AllianzGI Focused Growth Fund Administrative Class | 6.86% | 11.98% | 15.06% | 11.43% | ||||||||||||||
| Russell 1000 Growth Index | 11.56% | 13.39% | 16.28% | 11.13% | |||||||||||||
Lipper Large-Cap Growth Funds Average | 10.79% | 12.36% | 15.02% | 8.20% |
† The Fund began operations on 2/24/84. Benchmark and Lipper performance comparisons began on 2/29/84.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.11% for Class A shares, 1.86% for Class C shares, 1.36% for Class R shares, 0.86% for Class P shares, 0.76% for Institutional Class, 0.71% for Class R6 shares, and 1.01% for Administrative Class shares. These ratios do not include an expense reduction, contractually agreed through at least October 31, 2019. The Fund’s expense ratios net of this reduction are 0.99% for Class A shares, 1.76% for Class C shares, 1.26% for Class R shares, 0.76% for Class P shares, 0.66% for Institutional Class shares, 0.61% for Class R6 shares, and 0.91% for Administrative Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 2/24/84. Benchmark performance comparisons began on 2/29/84.
Industry/Sectors (as of June 30, 2019)
IT Services | 16.1% | |||
Software | 12.5% | |||
Internet & Direct Marketing Retail | 8.2% | |||
Interactive Media & Services | 7.7% | |||
Healthcare Equipment & Supplies | 6.3% | |||
Healthcare Providers & Services | 4.8% | |||
Technology Hardware, Storage & Peripherals | 4.1% | |||
Aerospace & Defense | 3.7% | |||
Other | 33.2% | |||
Cash & Equivalents — Net | 3.4% |
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Unaudited
AllianzGI Focused Growth Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,217.60 | $1,212.40 | $1,215.60 | $1,218.60 | $1,219.50 | $1,219.70 | $1,217.80 | |||||||
Expenses Paid During Period | $5.50 | $9.71 | $6.98 | $4.24 | $3.69 | $3.41 | $5.06 | |||||||
Hypothetical Performance | ||||||||||||||
(5% return before expenses) | ||||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,019.84 | $1,016.02 | $1,018.50 | $1,020.98 | $1,021.47 | $1,021.72 | $1,020.23 | |||||||
Expenses Paid During Period | $5.01 | $8.85 | $6.36 | $3.86 | $3.36 | $3.11 | $4.61 |
For each class of the Fund, expenses (net of fee waivers) are equal to the annualized expense ratio for the class (1.00% for Class A, 1.77% for Class C, 1.27% for Class R, 0.77% for Class P, 0.67% for Institutional Class, 0.62% for Class R6 and 0.92% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365.
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Unaudited
AllianzGI Global Natural Resources Fund
For the reporting period of July 1, 2018, through June 30, 2019, as provided by Paul D. Strand, CFA, Portfolio Manager.
Fund Insights
For the twelve-month reporting period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI Global Natural Resources Fund (the “Fund”) returned -9.24%, underperforming the 60% MSCI World Energy/ 40% MSCI World Materials Benchmark (the “benchmark”), which returned -6.53%.
Market Overview
Brent crude prices traded in the low $60’s to the mid $70’s a barrel range in the second quarter of 2019 after rebounding sharply from the low $50’s in the fourth quarter of 2018. Some of the factors that contributed to the stabilization included the interplay between OPEC adhering to production quotas versus the continued supply growth from the US shale producers, and the increasingly dovish monetary policy from the Federal Reserve. Despite the rebound in energy prices in the first-half of the year, the Fund’s energy component of the blended benchmark was one of the worst performing MSCI sectors during the reporting period.
Portfolio Review
The Fund’s underperformance was primarily driven by its overweight and positioning in energy-related stocks.
The Fund’s largest contributors to performance came from a wide variety of mostly materials-related sub-industries. Two specialty chemical companies, and two large cap base metal companies positively impacted performance. In general, the performance of these global base metal stocks mirrored the sharp rebound of iron ore prices in the first half of 2019. Also, a US rail company boosted performance as the rail companies rebounded in the first-half of 2019 despite the trade friction with China.
The largest detractors to performance were some energy-related positions. Some investors are fearful of a long-term supply glut of crude given the strong outlook for US production. The detractors included mostly energy exposure in oil and gas exploration and production companies and the position in an oil field data provider.
From time to time, the Fund utilizes a “Buy-Write” options strategy in which call options are written against some equity holdings. For the reporting period, the use of this strategy was very limited and had no material impact on overall performance.
Outlook
As the second-half of calendar 2019 quarter commences, the Fund is currently slightly overweight energy and modestly underweight materials. The Fund remains overweight in energy due to our conviction in a long term, ongoing rebound in energy prices and an improvement from what we believe is the current significant disconnect between energy stock valuations and energy price levels. We also believe that the energy sector offers superior growth prospects compared to other natural resource-related industries. We are hoping that the stabilization in oil prices continues and we would look to implement more exposure in the materials sector upon confirmation of a recovery in China’s economy. Our largest non-energy exposure includes metals and mining, chemicals, alternative energy such as wind and solar, rails, water treatment and building materials. The Fund remains globally diversified.
We continue to favor our diversified, thematic and opportunistic approach to investing in natural resource-related companies, and maintain our belief that over the long term the performance of the equities should outperform the underlying commodities. Risks to the Fund include a relapse in the global economy, disruption to world bond markets and a sustained drop in commodity prices.
12 | June 30, 2019 | | Annual Report |
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AllianzGI Global Natural Resources Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Global Natural Resources Fund Class A | –9.24% | –6.62% | 2.16% | 4.80% | ||||||||||||||
| AllianzGI Global Natural Resources Fund Class A (adjusted) | –14.23% | –7.67% | 1.58% | 4.41% | |||||||||||||
AllianzGI Global Natural Resources Fund Class C | –9.90% | –7.31% | 1.40% | 4.03% | ||||||||||||||
| AllianzGI Global Natural Resources Fund Class C (adjusted) | –10.80% | –7.31% | 1.40% | 4.03% | |||||||||||||
| AllianzGI Global Natural Resources Fund Class P | –8.88% | –6.37% | 2.42% | 5.09% | |||||||||||||
| AllianzGI Global Natural Resources Fund Institutional Class | –8.92% | –6.29% | 2.52% | 5.19% | |||||||||||||
| 60% MSCI World Energy/40% MSCI World Materials Benchmark | –6.53% | –1.95% | 4.64% | 5.97% | |||||||||||||
| MSCI World Index | 6.33% | 6.60% | 10.72% | 7.03% | |||||||||||||
Lipper Global Natural Resources Funds Average | –9.44% | –5.97% | 0.70% | 3.70% |
† The Fund began operations on 6/30/04. Benchmark and Lipper comparisons began on the fund inception date.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s expense ratios are 1.45% for Class A shares, 2.20% for Class C shares, 1.20% for Class P shares and 1.10% for Institutional Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 6/30/04. Benchmark comparisons began on the fund inception date.
Country Allocation (as of June 30, 2019)
United States | 62.5% | |||
United Kingdom | 13.5% | |||
Australia | 5.2% | |||
Canada | 5.2% | |||
France | 4.9% | |||
Germany | 2.4% | |||
Japan | 0.9% | |||
Spain | 0.7% | |||
Other | 4.0% | |||
Cash & Equivalents — Net | 0.7% |
Annual Report | | June 30, 2019 | 13 |
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AllianzGI Global Natural Resources Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||
Class A | Class C | Class P | Institutional Class | |||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||
Ending Account Value (6/30/19) | $1,132.40 | $1,129.10 | $1,135.20 | $1,134.60 | ||||
Expenses Paid During Period | $7.61 | $11.56 | $6.30 | $5.77 | ||||
Hypothetical Performance | ||||||||
(5% return before expenses) | ||||||||
Class A | Class C | Class P | Institutional Class | |||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||
Ending Account Value (6/30/19) | $1,017.65 | $1,013.93 | $1,018.89 | $1,019.39 | ||||
Expenses Paid During Period | $7.20 | $10.94 | $5.96 | $5.46 |
For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.44% for Class A, 2.19% for Class C, 1.19% for Class P and 1.09% for Institutional Class), multiplied by the average account value over the period, multiplied by 181/365. These expenses do not include the expenses of the investment companies in which the Fund invests, which are indirectly borne by Fund shareholders.
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AllianzGI Global Small-Cap Fund
For the period of July 1, 2018 through June 30, 2019, as provided by Andrew Neville, Lead Portfolio Manager.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI Global Small-Cap Fund (the “Fund”) returned -4.64%, underperforming the MSCI World Small-Cap Index (the “benchmark”), which returned -2.73%.
Market Overview
There was a significant level of macro-economic uncertainty as regional economies experienced varying levels of deceleration and the trade issues between China and US varied wildly between optimism and pessimism. As a result, it was a volatile year for global equities as the market had numerous ups and downs and disparity across regions. Small caps as measured by the benchmark underperformed large caps, as measured by the MSCI World Net Index, by 9.06% over the twelve-month period. In addition, the MSCI World Minimum Volatility Index returned 13.89%, outperforming small caps by 16.62% and demonstrating that during the period it was primarily a risk off environment which would be detrimental to small caps.
Portfolio Review
The Fund represents the highest conviction names from four underlying regional small cap strategies: US, Europe, Japan, and Asia ex-Japan. Stock selection is the key driver of relative returns as the regional allocation of the fund is neutral to the benchmark and there are risk controls to ensure sector deviations do not become too large.
Overall, sector and country allocations detracted from relative returns. The worst performing country allocation was Taiwan at -24 basis points, which is not in the benchmark, and had a -23% return in the twelve-month period. The worst performing sector was real estate, which detracted -38 basis points from relative returns. The best performing stock was Kinsale Cap Group, a specialty insurance group based in Richmond, VA, which contributed 61 basis points of outperformance over the benchmark. The worst performing stock was Asos Plc, a British based online clothing retailer, which underperformed the benchmark by 36 basis points.
Outlook
In our view, the expectation globally is for economies to begin to slowdown or even enter a recession. The US has remained rather resilient, but Europe is delivering flat economic growth, Japan is decelerating, and there is a spread of environments in Asia ex-Japan. Central banks outside of the US have begun taking stimulus measures and the US is expected to follow suit in July, with possible a 50 basis points rate cut. The trade uncertainty is hurting some small caps as China is a large end market and factors highly into the global supply chain. Small cap performance globally will be influenced by both the economic conditions and stimulus measures and the resulting balance between the two. The Fund will continue to focus on high quality growth stocks that we believe will deliver outperformance above the benchmark over the long-term.
16 | June 30, 2019 | | Annual Report |
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AllianzGI Global Small-Cap Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Global Small-Cap Fund Class A | –4.64% | 4.34% | 12.95% | 9.73% | ||||||||||||||
| AllianzGI Global Small-Cap Fund Class A (adjusted) | –9.88% | 3.16% | 12.31% | 9.45% | |||||||||||||
AllianzGI Global Small-Cap Fund Class C | –5.37% | 3.55% | 12.10% | 8.92% | ||||||||||||||
| AllianzGI Global Small-Cap Fund Class C (adjusted) | –6.11% | 3.55% | 12.10% | 8.92% | |||||||||||||
| AllianzGI Global Small-Cap Fund Class P | –4.40% | 4.60% | 13.23% | 10.04% | |||||||||||||
| AllianzGI Global Small-Cap Fund Institutional Class | –4.32% | 4.69% | 13.34% | 10.14% | |||||||||||||
| MSCI World Small-Cap Index | –2.73% | 5.72% | 12.15% | 7.93% | |||||||||||||
Lipper Global Small-/Mid-Cap Funds Average | –0.32% | 5.51% | 11.54% | 8.03% |
† The Fund began operations on 12/31/96. Benchmark and Lipper comparisons began on the fund inception date.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s expense ratios are 1.62% for Class A shares, 2.37% for Class C shares, 1.37% for Class P shares and 1.27% for Institutional Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 12/31/96. Benchmark comparisons began on the fund inception date.
Country Allocation (as of June 30, 2019)
United States | 59.8% | |||
Japan | 9.5% | |||
United Kingdom | 6.1% | |||
Germany | 3.6% | |||
France | 2.4% | |||
Australia | 2.3% | |||
Switzerland | 2.3% | |||
Denmark | 2.0% | |||
Other | 7.2% | |||
Cash & Equivalents — Net | 4.8% |
Annual Report | | June 30, 2019 | 17 |
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AllianzGI Global Small-Cap Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||
Class A | Class C | Class P | Institutional Class | |||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||
Ending Account Value (6/30/19) | $1,175.90 | $1,171.30 | $1,177.20 | $1,177.60 | ||||
Expenses Paid During Period | $8.74 | $12.76 | $7.40 | $6.86 | ||||
Hypothetical Performance | ||||||||
(5% return before expenses) | ||||||||
Class A | Class C | Class P | Institutional Class | |||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||
Ending Account Value (6/30/19) | $1,016.76 | $1,013.04 | $1,018.00 | $1,018.50 | ||||
Expenses Paid During Period | $8.10 | $11.83 | $6.85 | $6.36 |
For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.62% for Class A, 2.37% for Class C, 1.37% for Class P and 1.27% for Institutional Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI Health Sciences Fund
For the period of July 1, 2018 through June 30, 2019, as provided by Peter Pirsch, CFA, Lead Portfolio Manager.
Fund Insights
For the twelve-month reporting period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI Health Sciences Fund (the “Fund”) returned 13.14%, outperforming the MSCI World Health Care Index (the “benchmark”), which returned 10.84%.
Market Overview
Stock markets around the world rebounded in June as investors saw progress made on the trade war between the United States and China at the G-20 summit in Japan. In fact, the US equity markets have hit all-time highs in July. Additionally, the US Federal Reserve (Fed) has turned increasingly more dovish and the markets now anticipate a series of rate cuts this calendar year and next. The majority of the developed world’s central banks and China are currently implementing very accommodative monetary policies. Despite the robust first-half of 2019, the MSCI healthcare sector has generally lagged the broader markets in the recovery as investors have sought less defensive sectors such as technology and consumer discretionary. The focus of the Trump Administration for healthcare reform continues to be heavily weighted on containing drug pricing and healthcare costs in general, although other non-healthcare-related matters like the US and China trade negotiations and immigration continue to make big headlines as well.
Portfolio Review
The Fund’s outperformance was driven primarily by the positive stock selection in managed care stocks and the device and life science tools positions. Adverse stock selection in biopharma somewhat offset positive performance.
The Fund’s largest contributors to performance included the zero weight throughout the reporting period in Bayer AG and the underweight in Abbvie. Bayer has been negatively impacted by the Roundup litigation related to its purchase of Monsanto. The provider of genetic information to physicians, Invitae, was another large contributor. Investors are enthusiastic about the Company’s progress in genetic screening. Other larger contributors included the maker of invisalign braces, Align Technology, and the managed care company Cigna.
Heron Therapeutics was the largest detractor to performance. The Company suffered a clinical trial setback for its non-opioid acute pain reliever. Another detractor was the drug retailer, CVS, which lowered guidance in the first quarter of 2019. Other detractors to performance included the zero weights in Roche Holdings and Danaher, as well as the position in Bristol Myers, whose stock continues to be pressured from some recent clinical trial disappointments for its cancer franchise.
Outlook
During the twelve-month period, the MSCI healthcare sector has lagged the advances of the broader indices. From a contrarian perspective, we think that underperformance positions the healthcare sector relatively attractively, particularly given the possibility of a pick-up in market volatility and the defensive nature of healthcare. The upcoming presidential election does present headline risk, however, and stock selection will be critical during the election season. In general, given the intense focus on affordability of healthcare in the United States, we remain vigilant for a pick-up in negative healthcare campaign rhetoric, especially as the 2020 presidential campaign swings into the primaries and prospective candidates become more outspoken on policies. Overall, the Fund’s positioning is focused is on what we believe are the significant long-term growth drivers for healthcare which are largely driven by drug and cost-containment innovation. Areas in which the Fund is overweight include small- and mid-cap biopharma, unique medical device technology and managed care.
20 | June 30, 2019 | | Annual Report |
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AllianzGI Health Sciences Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Health Sciences Fund Class A | 13.14% | 9.55% | 15.43% | 11.63% | ||||||||||||||
| AllianzGI Health Sciences Fund Class A (adjusted) | 6.91% | 8.32% | 14.78% | 11.35% | |||||||||||||
AllianzGI Health Sciences Fund Class C | 12.34% | 8.74% | 14.58% | 10.80% | ||||||||||||||
| AllianzGI Health Sciences Fund Class C (adjusted) | 11.40% | 8.74% | 14.58% | 10.80% | |||||||||||||
| AllianzGI Health Sciences Fund Institutional Class | 13.54% | 9.93% | 15.84% | 12.05% | |||||||||||||
| MSCI World Health Care Index | 10.84% | 7.38% | 13.10% | 8.56% | |||||||||||||
Lipper Health/Biotechnology Funds Average | 4.43% | 9.52% | 16.11% | 11.15% |
† The Fund began operations on 12/31/96. Benchmark and Lipper comparisons began on the fund inception date.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s expense ratios are 1.47% for Class A shares, 2.22% for Class C shares and 1.12% for Institutional Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 12/31/96. Benchmark comparisons began on the fund inception date.
Industry/Sectors (as of June 30, 2019)
Pharmaceuticals | 40.8% | |||
HealthCare Equipment & Supplies | 20.9% | |||
Biotechnology | 15.3% | |||
HealthCare Providers & Services | 14.0% | |||
Life Sciences Tools & Services | 7.1% | |||
Cash & Equivalents — Net | 1.9% |
Annual Report | | June 30, 2019 | 21 |
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AllianzGI Health Sciences Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||
Class A | Class C | Institutional Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,132.30 | $1,128.30 | $1,134.30 | |||||||
Expenses Paid During Period | $7.77 | $11.71 | $5.93 | |||||||
Hypothetical Performance | ||||||||||
(5% return before expenses) | ||||||||||
Class A | Class C | Institutional Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,017.50 | $1,013.79 | $1,019.24 | |||||||
Expenses Paid During Period | $7.35 | $11.08 | $5.61 |
For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.47% for Class A, 2.22% for Class C and 1.12% for Institutional Class ), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI Income & Growth Fund
For the period of July 1, 2018, through June 30, 2019, as provided by Douglas G. Forsyth, CFA, Portfolio Manager.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI Income & Growth Fund (the “Fund”) returned 5.35%. During the same period, the S&P 500 Index increased 10.42% and the overall U.S. bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, rose 7.87%. The convertible universe returned 7.93%, as measured by the ICE BofA Merrill Lynch All US Convertibles Index; and high yield bonds, as measured by the ICE BofA Merrill Lynch US High Yield Master II Index, returned 7.58%. Lastly, the Russell 1000 Growth Index advanced 11.56%.
Market Overview
Trade war fears and the US Federal Reserve’s (the “Fed”) tightening bias led to increased volatility in the fourth quarter of 2018 and temporarily disrupted the upward trajectory of risk assets over the trailing twelve months. After a weak finish to the year, the equity, convertible bond and high-yield bond markets rebounded sharply in 2019 and ended the reporting period with strong gains. The strength in risk assets was aided by dovish central bank commentary. Other factors influencing sentiment included corporate earnings, economic data and trade developments.
In 2019, central banks around the globe pivoted and announced stimulus measures or suggested future accommodation. After raising rates four times in 2018, the Fed kept rates steady throughout the first half of 2019 and signaled a bias toward rate cuts, if needed. Coordinated easing efforts and dovish outlooks compressed global yields, triggering the US yield curve (3-month/10-year) to invert.
Against this backdrop, most US companies continued to exceed analyst expectations. In 2018, quarterly earnings growth on a year-over-year basis for the S&P 500 Index averaged more than 20%. However, the first-quarter earnings season in 2019 was the first period without the tax reform tailwind. Although high yield financials revealed lower year-over-year comparisons for revenue and earnings before interest, taxes, depreciation, and amortization growth, most issuers reported better-than-expected results. Most convertible bond issuers surpassed first-quarter expectations and reported higher year-over-year comparisons for revenue and earnings growth. Correspondingly, three quarters of the S&P 500 Index’s constituents exceeded first-quarter earnings estimates.
Economic reports indicated that the growth rate of activity moderated and the labor market remained strong over the reporting period. Consumer spending picked up into period-end while business investment was soft and overall inflation was muted.
Trade tensions persisted but eased into the end of the reporting period. The US raised tariffs on Chinese imports and China retaliated with tariffs on US imports. Planned tariffs on Mexico were cancelled, and at the G20 summit, the US and China temporarily agreed to pause tariff hikes and restart bilateral trade negotiations.
Portfolio Review
The Fund provided consistent income—the primary goal of the strategy—and a positive total return over the trailing 12-month period.
In the equity sleeve of the Fund’s portfolio, information technology, consumer discretionary and industrials exposures had the greatest positive impact on performance. Conversely, the energy and materials sectors hindered performance.
In the convertible sleeve of the Fund’s portfolio, sectors that contributed positively to performance were technology, healthcare and financials. On the other hand, energy and transportation exposures pressured performance.
In the high yield sleeve of the Fund’s portfolio, industries that aided performance were healthcare, support-services and technology & electronics. In contrast, exposure to the energy and steel producers/products industries detracted from performance.
Many option positions expired below strike and the Fund’s portfolio was able to retain the set premiums. The Fund’s portfolio took advantage of higher implied volatility episodes throughout the reporting period that presented attractive yield opportunities.
Outlook
In our opinion, synchronized central bank easing and progress on trade could help to support economic and earnings growth in the second half of the year.
Many central banks have either postponed/ended policy normalization plans or launched new stimulus measures. The Fed communicated that they “will act as appropriate to sustain the expansion.” Fed funds futures suggest multiple rate cuts before year-end.
24 | June 30, 2019 | | Annual Report |
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Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Income & Growth Fund Class A | 5.35% | 5.57% | 9.93% | 6.85% | ||||||||||||||
| AllianzGI Income & Growth Fund Class A (adjusted) | –0.44% | 4.38% | 9.31% | 6.36% | |||||||||||||
AllianzGI Income & Growth Fund Class C | 4.60% | 4.79% | 9.11% | 6.05% | ||||||||||||||
| AllianzGI Income & Growth Fund Class C (adjusted) | 3.64% | 4.79% | 9.11% | 6.05% | |||||||||||||
| AllianzGI Income & Growth Fund Class R | 5.09% | 5.30% | 9.66% | 6.59% | |||||||||||||
| AllianzGI Income & Growth Fund Class P | 5.64% | 5.84% | 10.21% | 7.13% | |||||||||||||
| AllianzGI Income & Growth Fund Institutional Class | 5.69% | 5.93% | 10.31% | 7.23% | |||||||||||||
| Bloomberg Barclays U.S. Aggregate Bond Index | 7.87% | 2.95% | 3.90% | 4.18% | |||||||||||||
| S&P 500 Index | 10.42% | 10.71% | 14.70% | 8.44% | |||||||||||||
Lipper Flexible Portfolio Funds Average | 2.88% | 3.33% | 7.69% | 4.67% |
† The Fund began operations on 2/28/07. Benchmark and Lipper comparisons began on the fund inception date.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.28% for Class A shares, 2.03% for Class C shares, 1.53% for Class R shares, 1.03% for Class P shares and 0.93% for Institutional Class shares. These ratios do not include an expense reduction, contractually agreed through at least October 31, 2019. The Fund’s expense ratios net of this reduction are 1.27% for Class A shares, 2.02% for Class C shares, 1.52% for Class R shares, 1.02% for Class P shares and 0.92% for Institutional Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 2/28/07. Benchmark comparisons began on the fund inception date.
Industry/Sectors (as of June 30, 2019)
Software | 8.3% | |||
Media | 5.0% | |||
Internet | 4.9% | |||
Oil, Gas & Consumable Fuels | 4.8% | |||
Pharmaceuticals | 3.8% | |||
Telecommunications | 3.7% | |||
Semiconductors | 3.7% | |||
Entertainment | 3.5% | |||
Other | 57.7% | |||
Cash & Equivalents — Net | 4.6% |
S&P Ratings* (as of June 30, 2019)
* | As a percentage of fixed-income investments. Bond ratings refer to the underlying holdings of the Fund and are categorized from highest to lowest credit quality using ratings provided by S&P Global Ratings (“S&P”). S&P’s ratings have been selected for several reasons, including the portfolio managers’ usage of S&P ratings methodology among other credit quality information in managing the Fund, access to background information and other materials provided by S&P, as well as the Fund’s consideration of industry practice. The Fund also displays S&P credit ratings information in materials provided in client presentations. See “Important Information” for more detail on the selection of S&P for the Fund’s ratings presentation. Securities not rated by S&P and bonds that do not currently have a rating available are designated in the chart above as “NR” and “NA”, respectively. |
Annual Report | | June 30, 2019 | 25 |
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AllianzGI Income & Growth Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||
Class A | Class C | Class R | Class P | Institutional Class | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,130.80 | $1,126.70 | $1,129.40 | $1,132.80 | $1,133.00 | |||||
Expenses Paid During Period | $6.76 | $10.70 | $8.08 | $5.45 | $4.92 | |||||
Hypothetical Performance | ||||||||||
(5% return before expenses) | ||||||||||
Class A | Class C | Class R | Class P | Institutional Class | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,018.45 | $1,014.73 | $1,017.21 | $1,019.69 | $1,020.18 | |||||
Expenses Paid During Period | $6.41 | $10.14 | $7.65 | $5.16 | $4.66 |
For each class of the Fund, expenses (net of fee waivers) are equal to the annualized expense ratio for the class (1.28% for Class A, 2.03% for Class C, 1.53% for Class R, 1.03% for Class P and 0.93% for Institutional Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI Mid-Cap Fund
For the period July 1, 2018 through June 30, 2019, as provided by Steven Klopukh, CFA, Lead Portfolio Manager.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A Shares at net asset value (“NAV”) of the AllianzGI Mid-Cap Fund (the “Fund”) returned 13.58%, underperforming the Russell Midcap Growth Index (the “benchmark”), which returned 13.94%.
Market Overview
Broader US equities closed a volatile twelve-month period with positive returns. In the fourth quarter of 2018, risk assets sold off amid the combination of a decelerating economy and hawkish commentary from the US Federal Reserve (the “Fed”). US equities subsequently rallied, as investor concerns were eased after Fed Chair Jerome Powell highlighted flexible monetary policy going forward. Better-than-expected corporate earnings results also helped the recovery. Against this backdrop, the Russell Midcap Index returned 7.83%, underperforming the Russell 1000 Index’s return of 10.02%. Within the mid cap universe, growth stocks outperformed value stocks by 10.26%.
Portfolio Review
Sector allocation had a negative effect on performance while positive security selection was offsetting. Stock picking in health care was the primary contributor to relative returns, followed by the information technology and materials sectors. This is balanced by weaker security selections in the industrials, energy and financials sectors.
A top contributor to relative returns was The Trade Desk, Inc. (“Trade Desk”), which provides a technology platform that helps manage digital advertising campaigns. Trade Desk is a pure play on a secular shift from traditional (such as print, TV and radio) to programmatic advertising, which allows for targeted ads and optimized marketing expenditures. Shares rallied as management reported strong financial results along with raised guidance. We believe that Trade Desk should continue generating strong growth, as the shift to programmatic advertising continues and as the company expands into international markets.
A top detractor over the period, XPO Logistics, Inc. (“XPO”), is a leading global freight, transportation and logistics company with a focus on e-commerce. The stock was lower during the period as the company posted below consensus earnings and guidance amid weakness within the European markets. Looking forward, we believe that XPO can still drive growth through LTL segment (small freight) margin improvements, continued demand for last mile deliveries and XPO Direct, which is a predictive analytics enhanced shared-space distribution service. However, we continue to monitor the situation closely for near-term headwinds, including softer global macroeconomic conditions and uncertain near-term trajectory of earnings.
As of June 30, 2019, the largest sector overweight was in health care, followed by consumer staples and communication services. Consumer discretionary was the largest underweight position in the Fund, followed by the information technology and financials sectors.
Outlook
Looking forward, we continue to expect moderate growth from the US economy. Leading economic indicators continue to signal benign conditions and employment metrics remains positive. However, key manufacturing and service surveys are signaling slower economic growth. As expected, the Fed held interest rates steady in its June 2019 meeting. Fed Chair Jerome Powell offered dovish commentary that the central bank would act accordingly to sustain the economic expansion. Overall, we believe that the Fed’s flexible approach to monetary policy should help stabilize investor appetite for risk assets. From a bottom-up perspective, consensus analyst estimates continue to show mild earnings contraction for the first half of 2019. However, earnings are expected to improve in late 2019. Against historical levels, mid cap growth valuations still trade at reasonable levels relative to its growth potential.
As always, we continue to focus on stock selection, seeking to invest in high quality mid cap companies with attractive growth prospects that are attractively valued. The Fund’s portfolio emphasizes free cash flow yield and responsible capital allocation.
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Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Mid-Cap Fund Class A | 13.58% | 10.48% | 14.08% | 12.87% | ||||||||||||||
| AllianzGI Mid-Cap Fund Class A (adjusted) | 7.33% | 9.23% | 13.44% | 12.71% | |||||||||||||
AllianzGI Mid-Cap Fund Class C | 12.56% | 9.67% | 13.23% | 12.09% | ||||||||||||||
| AllianzGI Mid-Cap Fund Class C (adjusted) | 11.64% | 9.67% | 13.23% | 12.09% | |||||||||||||
| AllianzGI Mid-Cap Fund Class R | 12.97% | 10.15% | 13.77% | 12.67% | |||||||||||||
| AllianzGI Mid-Cap Fund Class P | 13.79% | 10.82% | 14.37% | 13.32% | |||||||||||||
| AllianzGI Mid-Cap Fund Institutional Class | 13.97% | 10.87% | 14.46% | 13.43% | |||||||||||||
AllianzGI Mid-Cap Fund Administrative Class | 13.61% | 10.61% | 14.18% | 13.13% | ||||||||||||||
| Russell Midcap Growth Index | 13.94% | 11.10% | 16.02% | 12.40% | |||||||||||||
Lipper Mid-Cap Growth Funds Average | 11.81% | 10.37% | 14.73% | 9.66% | ||||||||||||||
Lipper Multi-Cap Growth Funds Average | 10.22% | 10.71% | 14.74% | —% |
† The Fund began operations on 11/6/79. Benchmark and primary Lipper performance comparisons began on 10/31/79; secondary Lipper performance is available for trailing 10 years.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s expense ratios are 1.13% for Class A shares, 1.88% for Class C shares, 1.38% for Class R shares, 0.88% for Class P shares, 0.78% for Institutional Class shares and 1.03% for Administrative Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 11/6/79. Benchmark performance comparisons began on 10/31/79.
Industry/Sectors (as of June 30, 2019)
IT Services | 11.6% | |||
Health Care Equipment & Supplies | 10.6% | |||
Semiconductors & Semiconductor Equipment | 7.3% | |||
Software | 7.0% | |||
Entertainment | 5.4% | |||
Professional Services | 4.2% | |||
Commercial Services & Supplies | 3.9% | |||
Electronic Equipment, Instruments & Components | 3.7% | |||
Other | 45.8% | |||
Cash & Equivalents — Net | 0.5% |
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Shareholder Expense Example | Actual Performance | |||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Administrative Class | |||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||||
Ending Account Value (6/30/19) | $1,317.50 | $1,315.00 | $1,313.60 | $1,318.70 | $1,319.80 | $1,320.70 | ||||||
Expenses Paid During Period | $6.55 | $10.85 | $7.97 | $5.12 | $4.54 | $5.98 | ||||||
Hypothetical Performance | ||||||||||||
(5% return before expenses) | ||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Administrative Class | |||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||||
Ending Account Value (6/30/19) | $1,019.14 | $1,015.42 | $1,017.90 | $1,020.38 | $1,020.88 | $1,019.64 | ||||||
Expenses Paid During Period | $5.71 | $9.44 | $6.95 | $4.46 | $3.96 | $5.21 |
For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.14% for Class A, 1.89% for Class C, 1.39% for Class R, 0.89% for Class P, 0.79% for Institutional Class and 1.04% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI NFJ Dividend Value Fund
For the period July 1, 2018 through June 30, 2019, as provided by the Value Equity, US team.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI NFJ Dividend Value Fund (the “Fund”) returned 4.46%, underperforming the Russell 1000 Value Index (the “benchmark”), which returned 8.46%.
Market Overview
US equities ratcheted steadily higher over the third quarter of 2018, with major indices touching a series of fresh peaks bolstered by corporate earnings growth and positive economic data. The gains propelled the market to its longest bull run in history, surpassing the previous record set between 1990 and 2000. However, the bull market ended abruptly in the final quarter of 2018 when US stocks plummeted, recording their weakest fourth-quarter returns since 2008. A sudden rise in bond yields provided the catalyst for the initial downward movement in October 2018, with stocks plunging further in December 2018 amid concerns over the outlook for growth and company profits, with political tensions providing further fuel for the selloff. Equity returns once again shifted over the first half of 2019, with January being the strongest start to a year for US stocks since 1987. Corporate earnings remained supportive, beating albeit lowered forecasts, and a more dovish tone from the US Federal Reserve (the “Fed”) also boosted sentiment. While US equities suffered a sharp set-back in May 2019 as the breakdown in US and China trade talks led to a series of tit-for-tat tariffs and other protectionist measures, stocks rebounded in June 2019 amid growing speculation that the Fed may be more inclined to cut rates to protect the US economy.
Portfolio Review
Relative performance results were due to negative stock selection, though sector allocation also detracted to a lesser degree over the twelve-month period. Selection across the industrials and communications services sectors boosted relative returns. However, these gains were offset by holdings in the information technology and consumer staples sectors, which failed to keep pace with benchmark shares. Within the benchmark, utilities, health care, communications services, information technology and consumer staples lead gains while two of the eleven GICS economic sectors—energy and materials—dipped into negative territory for the trailing one-year period. The Fund’s overweight in energy detracted from relative returns, while an overweight in health care contributed to performance results during the twelve-month period.
Outlook
After a strong start to 2019 with double-digit gains in the first quarter, US equity markets abruptly turned volatile, netting a modestly positive return in the second quarter. Despite some bumps and bruises, US equities have recorded impressive gains, with the S&P 500 up 18.5% in 2019, as of June 30, 2019. As market participants look to the second half of the year, they face a fragmented economic environment with multiple pain points. We believe that market disruptions from intensifying and/or shifting trade talks may become a long-term theme. Also, the US is continuing along what many believe to be a late-cycle path with growth stuck at less than 2% and rising fears of a recession in 2020. Of course, the continued shift in Fed policy toward more accommodative actions could have a material impact, and continued low unemployment and a fundamentally strong US consumer could bode well for sustained economic strength. Finally, political uncertainty related to the upcoming presidential election could create market headwinds.
In the face of these investing challenges and uncertainties, we believe a focus on higher-quality companies that pay a dividend within an attractive price-value framework offers many compelling characteristics, from less volatility with income to the potential to protect against inflation via dividend growth. As active managers committed to researching fundamentals and evaluating a company’s prospects, we believe this approach will become critical in the current environment for clients seeking strong absolute returns and moderated volatility over the long term.
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Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI NFJ Dividend Value Fund Class A | 4.46% | 4.90% | 11.21% | 7.70% | ||||||||||||||
| AllianzGI NFJ Dividend Value Fund Class A (adjusted) | –1.29% | 3.72% | 10.58% | 7.38% | |||||||||||||
AllianzGI NFJ Dividend Value Fund Class C | 3.63% | 4.11% | 10.37% | 6.89% | ||||||||||||||
| AllianzGI NFJ Dividend Value Fund Class C (adjusted) | 2.80% | 4.11% | 10.37% | 6.89% | |||||||||||||
| AllianzGI NFJ Dividend Value Fund Class R | 4.14% | 4.62% | 10.92% | 7.43% | |||||||||||||
| AllianzGI NFJ Dividend Value Fund Class P | 4.62% | 5.15% | 11.48% | 8.01% | |||||||||||||
| AllianzGI NFJ Dividend Value Fund Institutional Class | 4.82% | 5.26% | 11.60% | 8.12% | |||||||||||||
| AllianzGI NFJ Dividend Value Fund Class R6 | 4.82% | 5.31% | 11.65% | 8.17% | |||||||||||||
AllianzGI NFJ Dividend Value Fund Administrative Class | 4.49% | 4.99% | 11.32% | 7.85% | ||||||||||||||
| Russell 1000 Value Index | 8.46% | 7.46% | 13.19% | 6.96% | |||||||||||||
Lipper Equity Income Funds Average | 7.00% | 6.93% | 11.97% | 6.71% |
† The Fund began operations on 5/8/00. Benchmark comparisons began on the fund inception date. Lipper comparisons began on 4/30/00.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.11% for Class A shares, 1.86% for Class C shares, 1.36% for Class R shares, 0.86% for Class P shares, 0.76% for Institutional Class shares, 0.71% for Class R6 shares and 1.01% for Administrative Class shares. Theses ratios do not include an expense reduction, contractually agreed through at least October 31, 2019. The Fund’s expense ratios net of this reduction are 1.04% for Class A shares, 1.79% for Class C shares, 1.29% for Class R shares, 0.79% for Class P shares, 0.69% for Institutional Class shares, 0.64% for Class R6 shares and 0.94% for Administrative Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 5/8/00. Benchmark comparisons began on the fund inception date.
Industry/Sectors (as of June 30, 2019)
Banks | 13.8% | |||
Oil, Gas & Consumable Fuels | 11.9% | |||
Pharmaceuticals | 8.6% | |||
Insurance | 7.0% | |||
Aerospace & Defense | 4.8% | |||
Semiconductors & Semiconductor Equipment | 4.8% | |||
Diversified Telecommunications Services | 4.1% | |||
Industrial Conglomerates | 3.1% | |||
Other | 40.3% | |||
Cash & Equivalents — Net | 1.6% |
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AllianzGI NFJ Dividend Value Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,143.20 | $1,138.80 | $1,140.80 | $1,144.30 | $1,144.90 | $1,144.90 | $1,142.70 | |||||||
Expenses Paid During Period | $5.53 | $9.49 | $6.85 | $4.20 | $3.67 | $3.40 | $4.99 | |||||||
Hypothetical Performance | ||||||||||||||
(5% return before expenses) | ||||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,019.64 | $1,015.92 | $1,018.40 | $1,020.88 | $1,021.37 | $1,021.62 | $1,020.13 | |||||||
Expenses Paid During Period | $5.21 | $8.95 | $6.46 | $3.96 | $3.46 | $3.21 | $4.71 |
For each class of the Fund, expenses (net of fee waivers) are equal to the annualized expense ratio for the class (1.04% for Class A, 1.79% for Class C, 1.29% for Class R, 0.79% for Class P, 0.69% for Institutional Class, 0.64% for Class R6 and 0.94% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI NFJ International Value Fund
For the period July 1, 2018 through June 30, 2019, as provided by the Value Equity, US team.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI NFJ International Value Fund (the “Fund”) returned 1.44%, outperforming the MSCI ACWI ex-USA Index (the “benchmark”), which returned 1.29%.
Market Overview
International equities fell sharply over the second half of 2018, with many markets entering bear territory in the fourth quarter. In general, markets continued to ratchet higher during the third quarter, but a sudden rise in bond yields at the start of October sent stocks into reverse. The selloff intensified as worries over earnings added to concerns over the impact of higher tariffs and the outlook for global growth. Politics also unsettled investors, with a US government shutdown, continued uncertainty over Brexit, Italy’s controversial budget and political unrest in France all adding to the downward pressure on prices. Equities rallied over the first half of 2019, with many markets delivering double-digit gains. Sentiment was boosted by hopes of improved trade relations between the US and China and monetary policy U-turns from key central banks. Equity markets ratcheted higher until May when global stocks suffered a sharp set-back as the breakdown of US and China trade talks led to a series of tit-for-tat tariffs and other protectionist measures. Central banks rode to the rescue in June, issuing a series of dovish comments which caused stocks to rally once more and countered concerns over heightened geopolitical risks in the Middle East.
Portfolio Review
Relative performance results over the twelve-month period were due to positive stock selection, which was only partially offset by negative country and sector allocations. Selection across the financials and energy sectors boosted relative returns. These gains were only modestly dampened by holdings in the materials and consumer staples sectors, which failed to keep pace with benchmark shares. The Fund’s underweight in health care detracted from relative returns while an overweight in financials contributed to performance during the twelve-month period. By country, selection was positive across China and Japan, while the Fund realized negative selection from holdings based in Hong Kong and the UK. Underweight exposures across Switzerland and Brazil detracted over the reporting period. In contrast, overweight positions in Hong Kong and Russia boosted relative performance.
Outlook
European banking stocks sunk to another multi-decade relative low in terms of their performance versus the broader markets in the second quarter of 2019. The Euro Stoxx Banks Index continues to trade near where it did during the depths of the Global Financial Crisis of 2008-2009, and this index has underperformed the MSCI EAFE by more than 8% per annum for the last five years. Persistently low rates in Europe continue to dog the banking industry’s primary moneymaker: net interest income. With razor thin spreads to work with, banks are plagued with mind-numbingly low returns on assets. This has forced financial institutions to take on excessive amounts of leverage or push the envelope in riskier business endeavors to turn a decent profit. This past quarter, the European Central Bank once again hinted at its intentions to flood the market with more stimulus and open market purchases of assets. The European central banks would like to see renewed inflation and economic growth. However, unless the governments of European countries are willing to make structural reforms, it is unlikely that these economies will see a jumpstart in growth rates.
The Fund has been and continues to be underweight European banking stocks. Given the difficulty these institutions face to generate a fair return on their shareholders’ capital, and the risks they must take in order to earn them, we do not see a strong investment case for these stocks—despite the fact that they trade at historically low valuation multiples. Until these banks see more clarity from an economic and regulatory standpoint, we are comfortable sitting on the sidelines.
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Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI NFJ International Value Fund Class A | 1.44% | –3.05% | 4.09% | 8.16% | ||||||||||||||
| AllianzGI NFJ International Value Fund Class A (adjusted) | –4.14% | –4.14% | 3.50% | 7.79% | |||||||||||||
AllianzGI NFJ International Value Fund Class C | 0.76% | –3.76% | 3.32% | 7.36% | ||||||||||||||
| AllianzGI NFJ International Value Fund Class C (adjusted) | –0.24% | –3.76% | 3.32% | 7.36% | |||||||||||||
| AllianzGI NFJ International Value Fund Class R | 1.23% | –3.28% | 3.84% | 7.91% | |||||||||||||
| AllianzGI NFJ International Value Fund Class P | 1.76% | –2.80% | 4.35% | 8.45% | |||||||||||||
| AllianzGI NFJ International Value Fund Institutional Class | 1.84% | –2.71% | 4.45% | 8.56% | |||||||||||||
| AllianzGI NFJ International Value Fund Class R6 | 1.88% | –2.67% | 4.50% | 8.61% | |||||||||||||
AllianzGI NFJ International Value Fund Administrative Class | 1.68% | –2.93% | 4.21% | 8.29% | ||||||||||||||
| MSCI ACWI ex-USA Index | 1.29% | 2.16% | 6.54% | 8.04% | |||||||||||||
Lipper International Large-Cap Core Funds Average | –0.85% | 0.68% | 5.88% | 7.23% |
† The Fund began operations on 1/31/03. Benchmark comparisons began on the fund inception date. Lipper comparisons began on 1/31/03.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership.Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.37% for Class A shares, 2.12% for Class C shares, 1.62% for Class R shares, 1.12% for Class P shares, 1.02% for Institutional Class shares, 0.97% for Class R6 shares and 1.27% for Administrative Class shares. Theses ratios do not include an expense reduction, contractually agreed through at least October 31, 2019. The Fund’s expense ratios net of this reduction are 1.30% for Class A shares, 2.05% for Class C shares, 1.55% for Class R shares, 1.05% for Class P shares, 0.95% for Institutional Class shares, 0.90% for Class R6 shares and 1.20% for Administrative Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 1/31/03. Benchmark comparisons began on the fund inception date.
Country Allocation (as of June 30, 2019)
United Kingdom | 16.5% | |||
Japan | 13.7% | |||
Canada | 12.5% | |||
China | 11.9% | |||
Hong Kong | 6.7% | |||
France | 6.2% | |||
Germany | 4.2% | |||
Ireland | 3.7% | |||
Other | 23.7% | |||
Cash & Equivalents — Net | 0.9% |
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Shareholder Expense Example | Actual Performance | |||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,144.90 | $1,141.00 | $1,143.70 | $1,146.60 | $1,147.20 | $1,147.30 | $1,146.70 | |||||||
Expenses Paid During Period | $6.97 | $10.94 | $8.29 | $5.64 | $5.11 | $4.84 | $6.44 | |||||||
Hypothetical Performance | ||||||||||||||
(5% return before expenses) | ||||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,018.30 | $1,014.58 | $1,017.06 | $1,019.54 | $1,020.03 | $1,020.28 | $1,018.79 | |||||||
Expenses Paid During Period | $6.56 | $10.29 | $7.80 | $5.31 | $4.81 | $4.56 | $6.06 |
For each class of the Fund, expenses (net of fee waiver) are equal to the annualized expense ratio for the class (1.31% for Class A, 2.06% for Class C, 1.56% for Class R, 1.06% for Class P, 0.96% for Institutional Class , 0.91% for Class R6 and 1.21% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI NFJ Large-Cap Value Fund
For the period July 1, 2018 through June 30, 2019, as provided by the Value Equity, US team.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI NFJ Large-Cap Value Fund (the “Fund”) returned 4.62%, underperforming the Russell 1000 Value Index (the “benchmark”), which returned 8.46%.
Market Overview
US equities ratcheted steadily higher over the third quarter of 2018, with major indices touching a series of fresh peaks bolstered by corporate earnings growth and positive economic data. The gains propelled the market to its longest bull run in history, surpassing the previous record set between 1990 and 2000. However, the bull market ended abruptly in the final quarter of 2018 when US stocks plummeted, recording their weakest fourth-quarter returns since 2008. A sudden rise in bond yields provided the catalyst for the initial downward movement in October, with stocks plunging further in December amid concerns over the outlook for growth and company profits, with political tensions providing further fuel for the selloff. Equity returns once again shifted over the first half of 2019, with January being the strongest start to a year for US stocks since 1987. Corporate earnings remained supportive, beating albeit lowered forecasts, and a more dovish tone from the US Federal Reserve (the “Fed”) also boosted sentiment. While US equities suffered a sharp set-back in May as the breakdown of US and China trade talks led to a series of tit-for-tat tariffs and other protectionist measures, stocks rebounded in June amid growing speculation that the Fed may be more inclined to cut rates to protect the US economy.
Portfolio Review
Relative performance results were due to negative stock selection, though sector allocation also detracted to a lesser degree over the reporting period. Selection across the industrials and financials sectors boosted relative returns. However, these gains were offset by holdings in the energy and information technology sectors, which failed to keep pace with benchmark shares. Within the benchmark, utilities, health care, communications services, information technology and consumer staples lead gains while two of the eleven GICS economic sectors—energy and materials—dipped into negative territory for the trailing one-year period. The Fund’s overweight in energy detracted from relative returns, while an overweight in health care contributed to performance results during the twelve-month period.
Outlook
After a strong start to 2019 with double-digit gains in the first quarter, US equity markets abruptly turned volatile, netting a modestly positive return in the second quarter. Despite some bumps and bruises, US equities have recorded impressive gains, with the S&P 500 up 18.5% year-to-date. As market participants look to the second half of the year, they face a fragmented economic environment with multiple pain points. We believe that market disruptions from intensifying and/or shifting trade talks may become a long-term theme. Also, the US is continuing along what many believe to be a late-cycle path with growth stuck at less than 2% and rising fears of a recession in 2020. Of course, the continued shift in Fed policy toward more accommodative actions could have a material impact, and continued low unemployment and a fundamentally strong US consumer could bode well for sustained economic strength. Finally, political uncertainty related to the upcoming presidential election could create market headwinds.
In the face of these investing challenges and uncertainties, we believe a focus on higher-quality companies that pay a dividend within an attractive price-value framework offers many compelling characteristics, from less volatility with income to the potential to protect against inflation via dividend growth. As active managers committed to researching fundamentals and evaluating a company’s prospects, we believe this approach will become critical in the current environment for clients seeking strong absolute returns and moderated volatility over the long term.
40 | June 30, 2019 | | Annual Report |
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Unaudited
AllianzGI NFJ Large-Cap Value Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI NFJ Large-Cap Value Fund Class A | 4.62% | 6.71% | 11.97% | 7.40% | ||||||||||||||
| AllianzGI NFJ Large-Cap Value Fund Class A (adjusted) | –1.13% | 5.51% | 11.34% | 7.08% | |||||||||||||
AllianzGI NFJ Large-Cap Value Fund Class C | 3.78% | 5.91% | 11.13% | 6.60% | ||||||||||||||
| AllianzGI NFJ Large-Cap Value Fund Class C (adjusted) | 2.78% | 5.91% | 11.13% | 6.60% | |||||||||||||
| AllianzGI NFJ Large-Cap Value Fund Class R | 4.33% | 6.45% | 11.70% | 7.16% | |||||||||||||
| AllianzGI NFJ Large-Cap Value Fund Class P | 4.87% | 6.98% | 12.25% | 7.73% | |||||||||||||
| AllianzGI NFJ Large-Cap Value Fund Institutional Class | 4.98% | 7.09% | 12.38% | 7.83% | |||||||||||||
AllianzGI NFJ Large-Cap Value Fund Administrative Class | 4.69% | 6.83% | 12.08% | 7.56% | ||||||||||||||
| Russell 1000 Value Index | 8.46% | 7.46% | 13.19% | 6.96% | |||||||||||||
Lipper Large-Cap Value Funds Average | 6.60% | 6.90% | 12.11% | 6.50% |
† The Fund began operations on 5/8/00. Benchmark comparisons began on the fund inception date. Lipper comparisons began on 4/30/00.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s expense ratios are 1.11% for Class A shares, 1.86% for Class C shares, 1.36% for Class R shares, 0.86% for Class P shares, 0.76% for Institutional Class shares and 1.01% for Administrative Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 5/8/00. Benchmark comparisons began on the fund inception date.
Industry/Sectors (as of June 30, 2019)
Banks | 13.8% | |||
Oil, Gas & Consumable Fuels | 11.1% | |||
Pharmaceuticals | 8.1% | |||
Insurance | 5.2% | |||
Semiconductors & Semiconductor Equipment | 4.4% | |||
Aerospace & Defense | 3.6% | |||
Healthcare Equipment & Supplies | 3.1% | |||
Chemicals | 3.0% | |||
Other | 47.4% | |||
Cash & Equivalents — Net | 0.3% |
Annual Report | | June 30, 2019 | 41 |
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Unaudited
AllianzGI NFJ Large-Cap Value Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Administrative Class | |||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||||
Ending Account Value (6/30/19) | $1,136.00 | $1,131.60 | $1,134.40 | $1,136.90 | $1,137.80 | $1,136.30 | ||||||
Expenses Paid During Period | $5.93 | $9.88 | $7.25 | $4.61 | $4.08 | $5.40 | ||||||
Hypothetical Performance | ||||||||||||
(5% return before expenses) | ||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Administrative Class | |||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | ||||||
Ending Account Value (6/30/19) | $1,019.24 | $1,015.52 | $1,018.00 | $1,020.48 | $1,020.98 | $1,019.74 | ||||||
Expenses Paid During Period | $5.61 | $9.35 | $6.85 | $4.36 | $3.86 | $5.11 |
For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.12% for Class A, 1.87 % for Class C, 1.37% for Class R, 0.87% for Class P, 0.77 % for Institutional Class and 1.02% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI NFJ Mid-Cap Value Fund
For the period July 1, 2018 through June 30, 2019, as provided by the Value Equity, US team.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI NFJ Mid-Cap Value Fund (the “Fund”) returned 3.46%, underperforming the Russell Midcap Value Index (the “benchmark”), which returned 3.68%.
Market Overview
US equities ratcheted steadily higher over the third quarter of 2018, with major indices touching a series of fresh peaks bolstered by corporate earnings growth and positive economic data. The gains propelled the market to its longest bull run in history, surpassing the previous record set between 1990 and 2000. However, the bull market ended abruptly in the final quarter of 2018 when US stocks plummeted, recording their weakest fourth-quarter returns since 2008. A sudden rise in bond yields provided the catalyst for the initial downward movement in October, with stocks plunging further in December amid concerns over the outlook for growth and company profits, with political tensions providing further fuel for the selloff. Equity returns once again shifted over the first half of 2019, with January being the strongest start to a year for US stocks since 1987. Corporate earnings remained supportive, beating albeit lowered forecasts, and a more dovish tone from the US Federal Reserve (the “Fed”) also boosted sentiment. While US equities suffered a sharp set-back in May as the breakdown of US and China trade talks led to a series of tit-for-tat tariffs and other protectionist measures, stocks rebounded in June amid growing speculation that the Fed may be more inclined to cut rates to protect the US economy.
Portfolio Review
Relative performance results were due to positive stock selection, which was offset by negative sector allocation over the reporting period. Selection across the consumer discretionary and consumer staples sectors boosted relative returns. These gains were only somewhat offset by holdings in the financial and information technology sectors that failed to keep pace with benchmark shares. Within the benchmark, utilities, information technology and industrials lead gains while energy posted a double-digit decline, followed by negative absolute returns for the consumer discretionary, materials and consumer staples sectors. The Fund’s underweight in utilities detracted from relative returns, while an overweight in industrials contributed to performance results during the twelve-month period.
Outlook
After a strong start to 2019 with double-digit gains in the first quarter, US equity markets abruptly turned volatile, netting a modestly positive return in the second quarter. Despite some bumps and bruises, US equities have recorded impressive gains, with the S&P 500 up 18.5% year-to-date. As market participants look to the second half of the year, they face a fragmented economic environment with multiple pain points. We believe that market disruptions from intensifying and/or shifting trade talks may become a long-term theme. Also, the US is continuing along what many believe to be a late-cycle path with growth stuck at less than 2% and rising fears of a recession in 2020. Of course, the continued shift in Fed policy toward more accommodative actions could have a material impact, and continued low unemployment and a fundamentally strong US consumer could bode well for sustained economic strength. Finally, political uncertainty related to the upcoming presidential election could create market headwinds.
In the face of these investing challenges and uncertainties, we believe a focus on higher-quality companies that pay a dividend within an attractive price-value framework offers many compelling characteristics, from less volatility with income to the potential to protect against inflation via dividend growth. As active managers committed to researching fundamentals and evaluating a company’s prospects, we believe this approach will become critical in the current environment for clients seeking strong absolute returns and moderated volatility over the long term.
44 | June 30, 2019 | | Annual Report |
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AllianzGI NFJ Mid-Cap Value Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI NFJ Mid-Cap Value Fund Class A | 3.46% | 7.46% | 13.29% | 11.04% | ||||||||||||||
| AllianzGI NFJ Mid-Cap Value Fund Class A (adjusted) | –2.23% | 6.25% | 12.65% | 10.83% | |||||||||||||
AllianzGI NFJ Mid-Cap Value Fund Class C | 2.69% | 6.66% | 12.45% | 10.20% | ||||||||||||||
| AllianzGI NFJ Mid-Cap Value Fund Class C (adjusted) | 1.69% | 6.66% | 12.45% | 10.20% | |||||||||||||
| AllianzGI NFJ Mid-Cap Value Fund Class R | 3.21% | 7.20% | 13.02% | 10.70% | |||||||||||||
| AllianzGI NFJ Mid-Cap Value Fund Class P | 3.75% | 7.74% | 13.59% | 11.33% | |||||||||||||
| AllianzGI NFJ Mid-Cap Value Fund Institutional Class | 3.83% | 7.84% | 13.69% | 11.43% | |||||||||||||
| AllianzGI NFJ Mid-Cap Value Fund Class R6 | 3.89% | 7.90% | 13.75% | 11.49% | |||||||||||||
AllianzGI NFJ Mid-Cap Value Fund Administrative Class | 3.56% | 7.57% | 13.41% | 11.18% | ||||||||||||||
| Russell Midcap Value Index | 3.68% | 6.72% | 14.56% | 11.57% | |||||||||||||
Lipper Multi-Cap Value Funds Average | 3.20% | 6.03% | 11.98% | 6.93% |
† The Fund began operations on 4/18/88. Benchmark and Lipper performance comparisons began on 4/30/88.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.21% for Class A shares, 1.96% for Class C shares, 1.46% for Class R shares, 0.96% for Class P shares, 0.86% for Institutional Class shares, 0.81% for Class R6 shares and 1.11% for Administrative Class shares. These ratios do not include an expense reduction, contractually agree through at least September 30, 2019. The Fund’s expense ratios net of this reduction are 0.99% for Class A shares, 1.74% for Class C shares, 1.24% for Class R shares, 0.74% for Class P shares, 0.64% for Institutional Class shares, 0.59% for Class R6 shares and 0.89% for Administrative Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 4/18/88. Benchmark performance comparisons began on 4/30/88.
Industry/Sectors (as of June 30, 2019)
Banks | 8.5% | |||
Insurance | 7.4% | |||
Equity Real Estate Investment Trusts (REITs) | 7.3% | |||
Oil, Gas & Consumable Fuels | 6.4% | |||
Aerospace & Defense | 4.5% | |||
Food Products | 4.4% | |||
IT Services | 4.2% | |||
Capital Markets | 4.1% | |||
Other | 52.6% | |||
Cash & Equivalents — Net | 0.6% |
Annual Report | | June 30, 2019 | 45 |
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Unaudited
AllianzGI NFJ Mid-Cap Value Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,186.00 | $1,181.80 | $1,184.80 | $1,187.70 | $1,188.20 | $1,188.30 | $1,186.40 | |||||||
Expenses Paid During Period | $5.37 | $9.41 | $6.72 | $4.01 | $3.47 | $3.20 | $4.82 | |||||||
Hypothetical Performance | ||||||||||||||
(5% return before expenses) | ||||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,019.89 | $1,016.17 | $1,018.65 | $1,021.12 | $1,021.62 | $1,021.87 | $1,020.38 | |||||||
Expenses Paid During Period | $4.96 | $8.70 | $6.21 | $3.71 | $3.21 | $2.96 | $4.46 |
For each class of the Fund, expenses ( net of fee waiver) are equal to the annualized expense ratio for the class (0.99% for Class A, 1.74% for Class C, 1.24% for Class R, 0.74% for Class P, 0.64% for Institutional Class, 0.59% for Class R6 and 0.89% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGI NFJ Small-Cap Value Fund
For the period July 1, 2018 through June 30, 2019, as provided by the Value Equity, US team.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A shares at net asset value (“NAV”) of the AllianzGI NFJ Small-Cap Value Fund (the “Fund”) returned -7.70%, underperforming the Russell 2000 Value Index (the “benchmark index”), which returned -6.24%.
Market Overview
US equities ratcheted steadily higher over the third quarter of 2018, with major indices touching a series of fresh peaks bolstered by corporate earnings growth and positive economic data. The gains propelled the market to its longest bull run in history, surpassing the previous record set between 1990 and 2000. However, the bull market ended abruptly in the final quarter of 2018 when US stocks plummeted, recording their weakest fourth-quarter returns since 2008. A sudden rise in bond yields provided the catalyst for the initial downward movement in October, with stocks plunging further in December amid concerns over the outlook for growth and company profits, with political tensions providing further fuel for the selloff. Equity returns once again shifted over the first half of 2019, with January being the strongest start to a year for US stocks since 1987. Corporate earnings remained supportive, beating albeit lowered forecasts, and a more dovish tone from the US Federal Reserve (the “Fed”) also boosted sentiment. While US equities suffered a sharp set-back in May as the breakdown of US and China trade talks led to a series of tit-for-tat tariffs and other protectionist measures, stocks rebounded in June amid growing speculation that the Fed may be more inclined to cut rates to protect the US economy.
Portfolio Review
Relative performance results were due to positive stock selection, which was offset by negative sector allocation over the reporting period. Selection across the health care and energy sectors boosted relative returns. These gains were only somewhat offset by holdings in the financial and information technology sectors that failed to keep pace with benchmark shares. Within the benchmark, utilities, communications services and information technology lead gains, followed by real estate and industrials names, which held up a relative basis. In contrast, the benchmark’s energy, health care, consumer staples, materials and consumer discretionary sector posted double-digit declines. The Fund’s underweight in utilities detracted from relative returns, while an overweight in industrials contributed to performance results during the twelve-month period.
Outlook
After a strong start to 2019 with double-digit gains in the first quarter, US equity markets abruptly turned volatile, netting a modestly positive return in the second quarter. Despite some bumps and bruises, US equities have recorded impressive gains, with the S&P 500 up 18.5% year-to-date. As market participants look to the second half of the year, they face a fragmented economic environment with multiple pain points. We believe that market disruptions from intensifying and/or shifting trade talks may become a long-term theme. Also, the US is continuing along what many believe to be a late-cycle path with growth stuck at less than 2% and rising fears of a recession in 2020. Of course, the continued shift in Fed policy toward more accommodative actions could have a material impact, and continued low unemployment and a fundamentally strong US consumer could bode well for sustained economic strength. Finally, political uncertainty related to the upcoming presidential election could create market headwinds.
In the face of these investing challenges and uncertainties, we believe a focus on higher-quality companies that pay a dividend within an attractive price-value framework offers many compelling characteristics, from less volatility with income to the potential to protect against inflation via dividend growth. As active managers committed to researching fundamentals and evaluating a company’s prospects, we believe this approach will become critical in the current environment for clients seeking strong absolute returns and moderated volatility over the long term.
48 | June 30, 2019 | | Annual Report |
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AllianzGI NFJ Small-Cap Value Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI NFJ Small-Cap Value Fund Class A | –7.70% | 1.79% | 10.19% | 10.46% | ||||||||||||||
| AllianzGI NFJ Small-Cap Value Fund Class A (adjusted) | –12.78% | 0.64% | 9.57% | 10.23% | |||||||||||||
AllianzGI NFJ Small-Cap Value Fund Class C | –8.35% | 1.04% | 9.38% | 9.64% | ||||||||||||||
| AllianzGI NFJ Small-Cap Value Fund Class C (adjusted) | –9.02% | 1.04% | 9.38% | 9.64% | |||||||||||||
| AllianzGI NFJ Small-Cap Value Fund Class R | –7.97% | 1.52% | 9.92% | 10.14% | |||||||||||||
| AllianzGI NFJ Small-Cap Value Fund Class P | –7.49% | 2.03% | 10.47% | 10.78% | |||||||||||||
| AllianzGI NFJ Small-Cap Value Fund Institutional Class | –7.42% | 2.16% | 10.61% | 10.90% | |||||||||||||
| AllianzGI NFJ Small-Cap Value Fund Class R6 | –7.37% | 2.21% | 10.67% | 10.96% | |||||||||||||
AllianzGI NFJ Small-Cap Value Fund Administrative Class | –7.64% | 1.92% | 10.35% | 10.58% | ||||||||||||||
| Russell 2000 Value Index | –6.24% | 5.39% | 12.40% | 10.72% | |||||||||||||
Lipper Small-Cap Core Funds Average | –3.34% | 5.67% | 12.62% | 8.48% |
† The Fund began operations on 10/1/91. Benchmark comparisons began on the fund inception date. Lipper comparisons began on 9/30/91.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.26% for Class A shares, 2.01% for Class C shares, 1.51% for Class R shares, 1.01% for Class P shares, 0.91% for Institutional Class shares, 0.86% for Class R6 shares and 1.16% for Administrative Class Shares. These ratios do not include an expense reduction, contractually agreed through at least October 31, 2019. The Fund’s expense ratios net of this reduction are 1.16% for Class A shares, 1.91% for Class C shares, 1.41% for Class R shares, 0.91% for Class P shares, 0.81% for Institutional Class shares, 0.76% for Class R6 shares and 1.06% for Administrative Class Shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 10/1/91. Benchmark comparisons began on the fund inception date.
Industry/Sectors (as of June 30, 2019)
Banks | 21.6% | |||
Equity Real Estate Investment Trusts (REITs) | 8.6% | |||
Oil, Gas & Consumable Fuels | 6.3% | |||
Electronic Equipment, Instuments & Components | 5.7% | |||
Insurance | 4.6% | |||
Commercial Services & Supplies | 4.1% | |||
Machinery | 3.3% | |||
IT Services | 3.0% | |||
Other | 43.5% | |||
Cash & Equivalents — Net | –0.7% |
Annual Report | | June 30, 2019 | 49 |
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Unaudited
AllianzGI NFJ Small-Cap Value Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,145.90 | $1,141.70 | $1,144.40 | $1,147.60 | $1,147.60 | $1,147.80 | $1,146.50 | |||||||
Expenses Paid During Period | $6.23 | $10.20 | $7.55 | $4.90 | $4.37 | $4.10 | $5.69 | |||||||
Hypothetical Performance | ||||||||||||||
(5% return before expenses) | ||||||||||||||
Class A | Class C | Class R | Class P | Institutional Class | Class R6 | Administrative Class | ||||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||||
Ending Account Value (6/30/19) | $1,018.99 | $1,015.27 | $1,017.75 | $1,020.23 | $1,020.73 | $1,020.98 | $1,019.49 | |||||||
Expenses Paid During Period | $5.86 | $9.59 | $7.10 | $4.61 | $4.11 | $3.86 | $5.36 |
For each class of the Fund, expenses (net of fee waiver) are equal to the annualized expense ratio for the class (1.17% for Class A, 1.92% for Class C, 1.42% for Class R, 0.92% for Class P, 0.82% for Institutional Class , 0.77% for Class R6 and 1.07% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365.
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AllianzGISmall-Cap Fund
For the period of July 1, 2018 through June 30, 2019, as provided by Kunal Ghosh, Lead Portfolio Manager.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A Shares at net asset value (“NAV”) of the AllianzGI Small-Cap Fund (the “Fund”) returned-0.62%, outperforming the Russell 2000 Index (the “benchmark”), which returned -3.31%.
Market Overview
For the last twelve-months, US equities underwent a relatively volatile period. In the fourth quarter of 2018, risk assets sold off meaningfully, amid the combination of a decelerating economy and hawkish commentary from the US Federal Reserve (the “Fed”). Equity markets subsequently rallied in 2019, as investor concerns were eased after Fed Chair Jerome Powell highlighted flexible monetary policy going forward. Better-than-expected corporate earnings results also helped the recovery. The benchmark, which is representative of US small caps, underperformed the Russell 1000 large cap index by 13.33%. Within the small cap universe, growth outperformed value by 5.75%.
Portfolio Review
The Fund seeks to provide an “all-weather” performance by combining three unique small-cap strategies in a single investment strategy. The fundamental growth sleeve is tasked to provide up market exposure, the quantitative core sleeve is designed to perform well over a variety of market cycles and the managed volatility sleeve seeks to protect capital in down market periods.
Security selection was the primary driver of outperformance, and sector allocation modestly detracted from returns. Stock picking was positive in the health care, energy and financials sectors, while weak selections in the industrials, information technology and consumer discretionary sectors were partly offsetting. Separately, the underweight to information technology was a drag on performance while an underweight to materials was a slight positive.
A top contributor, Masimo Corp., is a medical technology company that specializes in devices and systems that monitor patient vital signs. The stock rallied as the company delivered strong financial results, which were helped by better-than-expected volumes. The largest absolute detractor was cashless payment technology provider USA Technologies Inc. Share prices were challenged after the company delayed a regulatory filing.
At the end of the period, the Fund was positioned with overweight allocations to the health care, utilities and consumer staples sectors. Industrials was the largest underweight position in the Fund, followed by the real estate and materials sectors.
Outlook
Looking forward, we continue to expect moderate growth from the US economy. Leading economic indicators continue to signal benign conditions and employment metrics remain positive. While key manufacturing and service surveys flash expansionary numbers, the numbers have fallen and signal slowing economic growth. As expected, the Fed held interest rates steady in its June 2019 meeting. Fed Chair Jerome Powell offered dovish commentary that the central bank will act accordingly to sustain the economic expansion. Overall, the Fed’s flexible approach to monetary policy should help stabilize investor appetite for risk assets.
From a bottom-up perspective, consensus analyst estimates continue to show mild earnings contraction for the first half of 2019. However, earnings are expected to improve into the second half of the year. Specific to small cap equities, earnings growth is expected to accelerate into double digits by the end of the year. With the benchmark’s price-to-earnings multiple below historical averages, small-cap equities appear to be trading at reasonable valuations relative to their growth potential.
The Fund combines three unique small-cap strategies in one investment, including a quantitative core, a fundamental growth and a managed volatility sleeve. Each individual small-cap sleeve is managed independently as a standalone portfolio by its respective portfolio management team, providing investors with access to a wide range of small-cap strategies in a single investment. We believe the Fund provides diversification benefits and may help reduce overall portfolio volatility through the combination of three separately managed small-cap portfolios.
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AllianzGI Small-Cap Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | Since Inception† | ||||||||||||
AllianzGI Small-Cap Fund Class A | –0.62% | 7.84% | 10.26% | |||||||||||
| AllianzGI Small-Cap Fund Class A (adjusted) | –6.09% | 6.63% | 9.23% | ||||||||||
AllianzGI Small-Cap Fund Class C | –1.39% | 7.03% | 9.44% | |||||||||||
| AllianzGI Small-Cap Fund Class C (adjusted) | –2.28% | 7.03% | 9.44% | ||||||||||
| AllianzGI Small-Cap Fund Class P | –0.36% | 8.12% | 10.54% | ||||||||||
| AllianzGI Small-Cap Fund Institutional Class | –0.29% | 8.22% | 10.64% | ||||||||||
| AllianzGI Small-Cap Fund Class R6 | –0.24% | 8.27% | 10.70% | ||||||||||
| Russell 2000 Index | –3.31% | 7.06% | 9.44% | ||||||||||
Lipper Small-Cap Core Funds Average | –3.34% | 5.67% | 8.49% |
† The Fund began operations on 7/1/13. Benchmark performance comparison began on 7/1/13. Lipper performance comparisons began on 6/30/13.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s expense ratios are 1.28% for Class A shares, 2.03% for Class C shares, 1.03% for Class P shares, 0.93% for Institutional Class shares and 0.88% for Class R6 shares. Theses ratios do not include an expense reduction, contractually agreed through at least October 31, 2019. The Fund’s expense ratios net of this reduction are 1.18% for Class A shares, 1.93% for Class C shares, 0.93% for Class P shares, 0.83% for Institutional Class shares and 0.78% for Class R6 shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 7/1/13. Benchmark performance comparisons began on 7/1/13.
Industry/Sectors (as of June 30, 2019)
Software | 6.8% | |||
Biotechnology | 5.7% | |||
Healthcare Equipment & Supplies | 5.7% | |||
Thrifts & Mortgage Finance | 5.0% | |||
Life Sciences Tools & Services | 4.0% | |||
HealthCare Providers & Services | 3.9% | |||
Equity Real Estate Investment Trusts (REITS) | 3.9% | |||
Electronic Equipment, Instruments & Components | 3.6% | |||
Other | 59.7% | |||
Cash & Equivalents — Net | 1.7% |
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AllianzGI Small-Cap Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||
Class A | Class C | Class P | Institutional Class | Class R6 | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,177.50 | $1,172.80 | $1,179.20 | $1,179.10 | $1,179.70 | |||||
Expenses Paid During Period | $6.32 | $10.34 | $4.97 | $4.43 | $4.16 | |||||
Hypothetical Performance | ||||||||||
(5% return before expenses) | ||||||||||
Class A | Class C | Class P | Institutional Class | Class R6 | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,018.99 | $1,015.27 | $1,020.23 | $1,020.73 | $1,020.98 | |||||
Expenses Paid During Period | $5.86 | $9.59 | $4.61 | $4.11 | $3.86 |
For each class of the Fund, expenses (net of fee waiver) are equal to the annualized expense ratio for the class (1.17% for Class A,1.92% for Class C, 0.92% for Class P, 0.82% for Institutional Class and 0.77% for Class R6), multiplied by the average account value over the period, multiplied by 181 /365. These expenses do not include the expenses of the investment companies in which the Fund invests, which are indirectly borne by Fund shareholders.
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AllianzGI Technology Fund
For the period of July 1, 2018 to June 30, 2019, as provided by Huachen Chen, CFA and Walter C. Price, Jr., CFA, Senior Portfolio Managers.
Fund Insights
For the twelve-month period ended June 30, 2019, the Class A Shares at net asset value (“NAV”), of the AllianzGI Technology Fund (the “Fund”) returned 12.40%, underperforming the S&P North American Technology Sector Index (the “benchmark”) which returned 12.73%.
Market Overview
Despite the abrupt sell-off in the final quarter of 2018, sparked by a convergence of multiple headwinds, equities delivered solid gains over the full period. Technology stocks performed particularly well, outperforming the broader market indexes over the period. While global semiconductor and hardware stocks delivered gains in the period, both segments lagged the technology sector due to the ongoing trade tensions between the US and China. Supply chains and end markets are highly connected between the two countries, making the impact more acute for these groups. Software and services stocks held up better given lower exposures to China trade uncertainties and earnings reports that largely supported the view of stable and healthy growth.
Portfolio Review
The Fund has benefited from strong performance among several mid-sized, high-growth software companies including Paycom Software, Okta, and MongoDB. In our opinion, each of these companies continue to see increasing demand for innovative software services as more companies adopt cloud computing and Software-as-a-Service solutions. Additionally, underweight positions in mega cap companies such as Alphabet and Intel helped relative performance.
Conversely, the Fund’s overweight positions in Netapp, Nutanix, and DXC Technologies detracted from relative performance. NetApp and DXC experienced headwinds with sales execution, and Nutanix is working through a business model transition. Other top detractors included underweight positions in Microsoft and Qualcomm. While Microsoft has been among the Fund’s largest holdings, it was underweight relative to the benchmark’s 8.4% position at the end of the period.
The core of our investment process is the identification of major themes impacting the technology sector and investing in the primary beneficiaries/drivers of these trends. We maintain our conviction in the core secular growth names in our portfolio, but we are also attentive to present market conditions and valuations.
Outlook
In our view, the technology sector continues to benefit from strong tailwinds which, we believe, should continue to drive attractive long term appreciation. The digital transformation is the top priority for many companies across the economy, as these technologies are increasingly becoming critical drivers of growth, productivity, and competitive positioning. This transition is a multi-year process, and we believe we are still in the fairly early stages. For the semiconductors and hardware segments, we believe the environment will remain mixed as companies work through production and inventory adjustments amid the trade conflict between the US and China. From a fundamental perspective, these companies are much stronger after years of consolidation, and we expect growth to reaccelerate in 2020. We maintain exposure to companies that we believe will benefit from secular growth themes. Despite periods of volatility driven by geopolitical uncertainty, we expect the broad technology sector to see attractive growth in the future.
We continue to believe the technology sector can provide some of the best absolute and relative return opportunities in the equity markets—especially for bottom-up stock pickers. In our opinion, the growth in technology is coming from the creation of new markets, rather than simply GDP growth. We believe investors need to find companies generating organic growth by creating new markets or effecting significant change on old markets. Industries such as automobiles, advertising, security, retail, and manufacturing are all being shaped and transformed by advances in technology.
We are seeing an ongoing wave of innovation in the sector that we believe has the potential to produce attractive returns for companies with “best-in-class” solutions.
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AllianzGI Technology Fund (cont’d)
Average Annual Total Return for the period ended June 30, 2019
1 Year | 5 Year | 10 Year | Since Inception† | |||||||||||||||
AllianzGI Technology Fund Class A | 12.40% | 17.38% | 18.80% | 14.23% | ||||||||||||||
| AllianzGI Technology Fund Class A (adjusted) | 6.22% | 16.06% | 18.13% | 13.96% | |||||||||||||
AllianzGI Technology Fund Class C | 11.57% | 16.51% | 17.92% | 13.38% | ||||||||||||||
| AllianzGI Technology Fund Class C (adjusted) | 10.75% | 16.51% | 17.92% | 13.38% | |||||||||||||
| AllianzGI Technology Fund Class P | 12.68% | 17.68% | 19.09% | 14.60% | |||||||||||||
| AllianzGI Technology Fund Institutional Class | 12.81% | 17.80% | 19.22% | 14.72% | |||||||||||||
AllianzGI Technology Fund Administrative Class | 12.52% | 17.50% | 18.92% | 14.43% | ||||||||||||||
| S&P North American Technology Sector Index | 12.73% | 19.14% | 19.12% | 11.21% | |||||||||||||
| NASDAQ Composite Index | 7.78% | 13.97% | 17.19% | 9.75% | |||||||||||||
Lipper Global Science & Technology Funds Average | 6.35% | 16.18% | 17.55% | 10.22% |
† The Fund began operations on 12/27/95. Benchmark and Lipper performance comparisons began on 12/31/95.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit our website at us.allianzgi.com. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed.The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1% contingent deferred sales charge (CDSC) on Class C shares, which may apply to shares redeemed during the first year of ownership. Returns do not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Please see pages 60-62 for more information. The Fund’s gross expense ratios are 1.57% for Class A shares, 2.32% for Class C shares, 1.32% for Class P shares, 1.22% for Institutional Class shares and 1.47% for Administrative Class shares. Expense ratio information is as of the Fund’s current prospectus dated August 28, 2018, as revised August 30, 2018 and as supplemented to date.
Cumulative Returns Through June 30, 2019
The Fund began operations on 12/27/95. Benchmark and Lipper performance comparisons began on 12/31/95.
Industry/Sectors (as of June 30, 2019)
Software | 33.4% | |||
IT Services | 22.9% | |||
Semiconductors & Semiconductor Equipment | 10.4% | |||
Interactive Media & Services | 9.4% | |||
Internet & Direct Marketing Retail | 6.4% | |||
Technology Hardware, Storage & Peripherals | 3.2% | |||
Communications Equipment | 2.3% | |||
Other | 3.1% | |||
Securities Sold Short* | –0.0% | |||
Cash & Equivalents - Net | 8.9% |
* | Table below details the industry allocation for securities sold short |
Industry/Sectors - Securities Sold Short
IT Services | –0.0% |
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AllianzGI Technology Fund (cont’d)
Shareholder Expense Example | Actual Performance | |||||||||
Class A | Class C | Class P | Institutional Class | Administrative Class | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,248.70 | $1,244.00 | $1,250.00 | $1,250.80 | $1,249.20 | |||||
Expenses Paid During Period | $8.70 | $12.85 | $7.31 | $6.75 | $8.14 | |||||
Hypothetical Performance | ||||||||||
(5% return before expenses) | ||||||||||
Class A | Class C | Class P | Institutional Class | Administrative Class | ||||||
Beginning Account Value (1/1/19) | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |||||
Ending Account Value (6/30/19) | $1,017.06 | $1,013.34 | $1,018.30 | $1,018.79 | $1,017.55 | |||||
Expenses Paid During Period | $7.80 | $11.53 | $6.56 | $6.06 | $7.30 |
For each class of the Fund, expenses (net of fee waiver) are equal to the annualized expense ratio for the class (1.56% for Class A, 2.31% for Class C, 1.31% for Class P, 1.21% for Institutional Class and 1.46% for Administrative Class), multiplied by the average account value over the period, multiplied by 181/365. These expenses do not include the expenses of the investment companies in which the Fund invests, which are indirectly borne by Fund shareholders.
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Share Class (A/C)
The inception date on each Fund Summary page is the inception date of the Fund’s oldest share class or classes. The oldest share class for the following Funds is the Institutional share class, and the Class A and/or C shares were first offered in the month/year indicated in parentheses after each Fund name: AllianzGI NFJ Dividend Value (10/01), AllianzGI NFJ Large-Cap Value (7/02), AllianzGI NFJ Small-Cap Value (1/97), AllianzGIMid-Cap (2/02), AllianzGI Emerging Markets Opportunities (8/06), AllianzGI Global Natural Resources (3/06), AllianzGI Global Small-Cap (2/02) and AllianzGI Technology (2/02). The oldest share class for the following Funds is C, and the A shares were first offered in the month/year indicated in parentheses after each Fund name: AllianzGI NFJ Mid-Cap Value (2/91) and AllianzGI Focused Growth (10/90). The oldest share class for AllianzGI Health Sciences was the D share class, and the A and C shares were first offered in 2/02. For AllianzGI NFJ International Value the oldest share class is the Institutional share class and A and C shares were first offered in 4/05. For AllianzGI Small-Cap, A and C shares were each first offered in 7/13. For the AllianzGI Income & Growth Fund, Class A and Class C shares were first offered simultaneously with Institutional shares in 2/07.
Class A shares are subject to an initial sales charge. Class C shares are subject to a 1% CDSC for shares redeemed in the first year.
Share Class (R)
The inception date on each Fund Summary page is the inception date of the Fund’s oldest share class or classes. The oldest share classes are (Fund/share class): AllianzGI NFJ Dividend Value/Institutional and Administrative, AllianzGI NFJ Mid-Cap Value/C, AllianzGI NFJ Small-Cap Value/Institutional, AllianzGI Focused Growth/C and AllianzGI Mid-Cap/Institutional. Class R shares for these Funds were first offered in 12/02. The oldest share class for AllianzGI NFJ Large-Cap Value is the Institutional share class and it first offered Class R shares in 11/09. The oldest share class for AllianzGI NFJ International Value is the Institutional share class and the Fund first offered Class R shares in 11/09. The oldest share classes for AllianzGI Income & Growth are the Institutional, Class A and Class C share classes and the Fund first offered Class R shares in 2/11.
Share Class (P)
Class P shares were launched in July 2008, except for Class P shares of AllianzGI NFJ Mid-Cap Value Fund, which were launched February 28, 2011, Class P shares of AllianzGI Mid-Cap Fund, which were launched April 2, 2012, and Class P shares of AllianzGI Small-Cap, which were launched July 1, 2013.
Share Class (Institutional/Administrative)
The inception date on each Fund Summary page is the inception date of the Fund’s oldest share class or classes. Unless otherwise indicated, the noted Institutional or Administrative share class is one of the Fund’s oldest share classes. The oldest share class for the following Funds is the C shares, and the Institutional and Administrative shares
were first offered in the month/year indicated in parentheses after each Fund name: AllianzGI NFJ Mid-Cap Value (4/88) and AllianzGI Focused Growth (3/99). The oldest share class for the AllianzGI Health Sciences Fund was the D share class, and the Institutional share class was first offered in 12/14. The oldest share class for the following Funds is the Institutional class and the Administrative shares were first offered in the month/year indicated in parentheses after each Fund name: AllianzGI NFJ International Value (5/10), AllianzGI NFJ Large-Cap Value (9/06), AllianzGI NFJ Small-Cap Value (11/95), AllianzGI Technology (3/05) and AllianzGI Mid-Cap (2/02).
Share Class (R6)
The inception date on each Fund Summary page is the inception date of the Fund’s oldest share class or classes. The oldest share class for the following funds is the Institutional class and Class R6 shares were first offered in the month/year indicated in parentheses after each Fund name: AllianzGI Emerging Markets Opportunities (12/15), AllianzGI NFJ Dividend Value (12/13), AllianzGI NFJ International Value (12/13), AllianzGI NFJ Small-Cap Value (12/13), AllianzGI NFJ Mid Cap Value (12/17) and AllianzGI Small-Cap (8/18). For AllianzGI Focused Growth, Class C is the oldest share class and Class R6 shares were first offered in 12/15.
Returns shown in the “Fund Summaries” section of this report measure performance from the inception of the oldest share class to the present; therefore some returns predate the inception of the noted share class. Those returns are calculated by adjusting the returns of the oldest share class to reflect the fees and expenses paid by the newer class. Total return performance assumes that all dividend and capital gain distributions were reinvested on the payable date.
The Lipper Averages are calculated by Lipper, Inc. (“Lipper”). They are based on the total return performance, with distributions reinvested and operating expenses deducted, of funds included by Lipper in the stated category. Lipper does not take into account sales charges.
The Average Annual Total Return charts for each Fund assume the initial investment was made on the first day of the Fund’s initial fiscal year. The charts reflect any sales load that would have applied at the time of purchase or any CDSC that would have applied if a full redemption occurred on the last business day of the most recent fiscal year. Results assume that all dividend and capital gain distributions were reinvested. They do not take into account the effect of taxes. The benchmark index cumulative return began on the last day of the month of the respective Fund’s inception date, unless otherwise noted.
“Cash & Equivalents — Net” in the Allocation Summaries may be comprised of cash, repurchase agreements, U.S. Treasury Bills, options purchased, options written and other assets net of other liabilities including net unrealized appreciation (depreciation) on futures contracts, forward foreign currency contracts and swap agreements, as applicable.
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Proxy Voting
Allianz Global Investors U.S. LLC (the “Investment Adviser”) has adopted written proxy voting policies and procedures (the “Proxy Policy”) as required byRule 206(4)-6 under the Investment Advisers Act of 1940. The Proxy Policy has been adopted by the Trust as the policies and procedures that the Investment Adviser will use when voting proxies on behalf of the Funds. Copies of the written Proxy Policy, the factors that the Investment Adviser may consider in determining how to vote proxies for each Fund and information about how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are provided without charge, upon request, by calling the Trust at 1-800-988-8380 (Class A, Class C and Class R) or1-800-498-5413 (Class P, Class R6, Institutional and Administrative classes), on the Allianz Global Investors Distributors LLC website at us.allianzgi.com, and on the Securities and Exchange Commission (the “SEC”) Website at http://www.sec.gov.
Form N-PORT
The Trust files complete schedules of each Fund’s portfolio holdings with the SEC on Form N-PORT for the first and third quarters of the fiscal year; such filings are available on the SEC’s website at http://www.sec.gov. A copy of the Trust’s Form N-PORT, when available, will be provided without charge, upon request, by calling1-800-988-8380 (Class A, Class C and Class R) or1-800-498-5413 (Class P, Class R6, Institutional and Administrative classes). In addition, the Trust’s Form N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A description of the Trust’s policies and procedures with respect to the disclosure of each Fund’s portfolio holdings is available in the Trust’s Statement of Additional Information. The Investment Adviser will post each Fund’s holdings information on the Fund’s website at us.allianzgi.com. Each Fund’s website will contain a complete schedule of portfolio holdings as of the relevant month end. The information will be posted on the website approximately thirty (30) calendar days after the relevant month’s end. Portfolio holdings information for each Fund will remain accessible on its website until the Trust files its Form N-CSR, or Form N-PORT for the last month of the Fund’s first or third fiscal quarters, with the SEC for the period that includes the date as of which the website information is current. The Trust’s policies with respect to the disclosure of the portfolio holdings are subject to change without notice.
The following disclosure provides important information regarding each Fund’s Shareholder Expense Example, which appears on each Fund Summary page in this Annual Report. Please refer to this information when reviewing the Shareholder Expense Example for a Fund.
Shareholder Expense Example
The Shareholder Expense Example is based on $1,000.00 invested at the beginning of and held for the entire period. Shareholders of the Funds incur two types of costs: (1) transaction costs; and (2) ongoing costs, including investment advisory and administration fees; distribution and/or service (12b-1) fees and other Fund expenses. The
Shareholder Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Shareholder Expense Example is based on $1,000.00 invested at the beginning and held for the entire period January 1, 2019 through June 30, 2019.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the appropriate column for your share class, in the row entitled “Expenses Paid During Period”, to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table for “Hypothetical Performance (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs may have been higher.
Expense ratios may vary from period to period because of various factors such as increases in expenses not covered by advisory and administration fees (for example, expenses of the trustees and their counsel or litigation expenses) and/or because of reductions in the administration fees resulting from the size of the fund.
Credit Ratings
Bond ratings apply to the underlying holdings of a Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined for purposes of presentations in this report by using ratings provided by S&P Global Ratings (“S&P”). Presentations of credit ratings information in this report use ratings provided by S&P for this purpose, among other reasons, because of the access to background information and other materials provided by
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Important Information (cont’d)
S&P, as well as the Funds’ considerations of industry practice. Bonds not rated by S&P, or bonds that do not have a rating available from S&P, or bonds that had a rating withdrawn by S&P are designated as “NR” or “NA”, respectively. Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change periodically, even as frequently as daily. Ratings assigned by S&P or another rating agency are not absolute standards of credit quality and do not evaluate market risk. Rating agencies may fail to make timely changes in credit ratings, and an issuer’s current financial condition may be better or worse than a rating indicates. In formulating investment decisions for the applicable Funds, the Investment Adviser develops its own analysis of the credit quality and risks associated with individual debt instruments, rather than relying exclusively on rating agencies or third-party research.
All of the information on the Fund Summary pages, including Fund Insights, Average Annual Total Return and Cumulative Returns charts, Shareholder Expense Examples and Allocation/Credit Ratings Summaries are unaudited.
Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY, 10019, us.allianzgi.com, 1-800-988-8380 (retail classes: A, C & R) or1-800-498-5413 (Class P, Class R6, Institutional and Administrative classes).
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Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an index.
Prior to November 1, 2006, performance data for the MSCI Indices was calculated gross of dividend tax withholding. Performance data presently shown for the Indices is net of dividend tax withholding. This recalculation results in lower performance for the Indices.
Index | Description | |
Bloomberg Barclays US Aggregate Bond Index | The Bloomberg Barclays US Aggregate Bond Index represents securities that are SEC-registered, taxable, and US dollar denominated. The index covers the US investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. | |
Bloomberg Barclays US Credit Index | The Bloomberg Barclays US Credit Index is the credit component of the US Government/Credit Index. It includes publicly issued US corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC-registered. | |
Bloomberg Barclays US Government Bond Index | The Bloomberg Barclays US Government Bond Index is the US Government component of the US Government/Credit Index. It includes US Dollar-denominated, fixed-rate, nominal US Treasuries and US agency debentures (securities issued by US government owned or government sponsored entities) and debt explicitly guaranteed by the US government. | |
Bloomberg Barclays Global High Yield Index | The Bloomberg Barclays Global High Yield Index is a multi-currency flagship measure of the global high yield debt market. The index represents the union of the US High Yield, the Pan-European High Yield and Emerging Markets (EM) Hard Currency High Yield Indices. | |
ICE BofA Merrill Lynch US High Yield Master II Index | The ICE BofA Merrill Lynch High Yield Master II Index is an unmanaged index consisting of US dollar denominated bonds that are issued in countries having a BBB3 or higher debt rating with at least one year remaining until maturity. All bonds must have a credit rating below investment grade but not in default. | |
Chicago Board Options Exchange (CBOE) Volatility Index (VIX) | The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. | |
MSCI All Country World ex-USA Index (Also known as MSCI ACWI ex-USA Index) | The MSCI All Country World Index (ACWI) ex-USA Index captures large and mid cap representation across Developed Markets countries (excluding the US) and Emerging Markets countries. The index covers approximately 85% of the global equity opportunity set outside the US. | |
MSCI EAFE Index | The MSCI EAFE Index is an equity index which captures large and mid cap representation across the Developed Markets countries around the world, excluding the US and Canada. | |
MSCI Emerging Markets Index | The MSCI Emerging Markets Index captures large and mid cap representation across Emerging Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country. | |
MSCI World Energy Index | The MSCI World Energy Index is designed to capture the large and mid-cap segments across Developed Markets countries. All securities in the index are classified in the Energy sector as per the Global Industry Classification Standard. | |
MSCI World Health Care Index | The MSCI World Health Care Index is designed to capture the large and mid cap segments across Developed Markets countries. All securities in the index are classified in the Health Care sector as per the Global Industry Classification Standard. | |
MSCI World Index | The MSCI World Index captures large and mid cap representation across Developed Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country. | |
MSCI World Materials Index | The MSCI World Materials Index is designed to capture the large and mid cap segments across Developed Markets countries. All securities in the index are classified in the Materials sector as per the Global Industry Classification Standard. |
Annual Report | | June 30, 2019 | 63 |
Table of Contents
Unaudited
Benchmark Descriptions (cont’d)
Index | Description | |
MSCI World Small-Cap Index | The MSCI World Small-Cap Index captures small-cap representation across Developed Markets countries. The index covers approximately 14% of the free float-adjusted market capitalization in each country. | |
NASDAQ Composite Index | The NASDAQ Composite Index is an unmanaged market-value weighted index of all common stocks listed on the NASDAQ Stock Market. | |
Russell 1000 Growth Index | The Russell 1000 Growth Index is an unmanaged index that measures the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which consists of the 3,000 largest US companies based on total market capitalization. | |
Russell 1000 Index | The Russell 1000 Index is an unmanaged index that consists of the 1,000 largest companies in the Russell 3000 Index and represents approximately 90% of the total market capitalization of the Russell 3000 Index. It is highly correlated with the S&P 500 Index. | |
Russell 1000 Value Index | The Russell 1000 Value Index is an unmanaged index that measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. | |
Russell 2000 Index | The Russell 2000 Index measures the performance of the small-cap segment of the US equity universe. The Russell 2000 is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. | |
Russell 2000 Value Index | The Russell 2000 Value Index is an unmanaged index that measures the performance of the small-cap value segment of the US equity universe. It includes those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. | |
Russell Midcap Growth Index | The Russell Midcap Growth Index is an unmanaged index that measures the performance of the mid-cap growth segment of the US equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell Midcap Index | The Russell Midcap Index is an unmanaged index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. | |
Russell Midcap Value Index | The Russell Midcap Value Index is an unmanaged index that measures the performance of the mid-cap value segment of the US equity universe represented by stocks in the largest 200 by market cap that exhibit value characteristics. It includes Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. | |
S&P 500 Index | The S&P 500 Index is an unmanaged index of large capitalization common stocks. | |
S&P North American Technology Sector Index | The S&P North American Technology Sector Index is a modified capitalization-weighted index of selected technology and internet-related stocks. |
64 | June 30, 2019 | | Annual Report |
Table of Contents
June 30, 2019
AllianzGI Emerging Markets Opportunities Fund
Shares | Value | |||||||
Common Stock—92.3% |
| |||||||
Brazil—4.3% | ||||||||
Banco do Brasil S.A. | 386,000 | $5,422,164 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo ADR | 340,700 | 4,146,319 | ||||||
IRB Brasil Resseguros S.A. | 56,800 | 1,456,998 | ||||||
Porto Seguro S.A. | 150,076 | 2,019,799 | ||||||
Qualicorp Consultoria e Corretora de Seguros S.A. | 148,400 | 887,706 | ||||||
Vale S.A. | 186,500 | 2,516,812 | ||||||
|
| |||||||
16,449,798 | ||||||||
|
| |||||||
China—34.1% | ||||||||
Alibaba Group Holding Ltd. ADR (d) | 72,800 | 12,335,960 | ||||||
Anhui Conch Cement Co., Ltd., Class H | 1,169,000 | 7,314,798 | ||||||
Bank of Communications Co., Ltd., Class H | 3,434,000 | 2,607,524 | ||||||
China Merchants Bank Co., Ltd., Class H | 1,570,500 | 7,793,475 | ||||||
China Mobile Ltd. | 1,456,000 | 13,254,930 | ||||||
China Telecom Corp., Ltd., Class H | 3,410,000 | 1,717,098 | ||||||
CNOOC Ltd. | 2,690,000 | 4,588,500 | ||||||
Daqin Railway Co., Ltd., Class A | 1,483,600 | 1,748,677 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 11,955,000 | 8,726,209 | ||||||
Jiangsu Expressway Co., Ltd., Class H | 1,090,000 | 1,551,292 | ||||||
Kweichow Moutai Co., Ltd., Class A | 30,400 | 4,366,154 | ||||||
Lenovo Group Ltd. | 11,200,000 | 8,671,982 | ||||||
Qudian, Inc. ADR (d) | 399,700 | 2,997,750 | ||||||
RiseSun Real Estate Development Co., Ltd., Class A | 3,134,052 | 4,291,430 | ||||||
Tencent Holdings Ltd. | 692,100 | 31,310,180 | ||||||
Weichai Power Co., Ltd., Class H | 4,429,000 | 7,491,346 | ||||||
Xiamen C & D, Inc. | 690,372 | 893,757 | ||||||
Yum China Holdings, Inc. | 102,300 | 4,726,260 | ||||||
Zoomlion Heavy Industry Science and Technology Co., Ltd. Class H | 3,815,600 | 2,506,213 | ||||||
|
| |||||||
128,893,535 | ||||||||
|
| |||||||
Hong Kong—4.5% | ||||||||
Hang Seng Bank Ltd. | 179,200 | 4,460,374 | ||||||
Link REIT | 1,013,500 | 12,471,530 | ||||||
|
| |||||||
16,931,904 | ||||||||
|
| |||||||
India—10.8% | ||||||||
Bajaj Finance Ltd. | 69,678 | 3,719,133 | ||||||
GAIL India Ltd. | 410,208 | 1,852,814 | ||||||
HDFC Bank Ltd. ADR | 102,100 | 13,277,084 | ||||||
Hindustan Unilever Ltd. | 107,454 | 2,785,635 | ||||||
ITC Ltd. | 815,856 | 3,234,607 | ||||||
REC Ltd. | 355,430 | 849,721 | ||||||
Tata Consultancy Services Ltd. | 369,505 | 11,928,000 | ||||||
Tech Mahindra Ltd. | 316,687 | 3,246,695 | ||||||
|
| |||||||
40,893,689 | ||||||||
|
|
Shares | Value | |||||||
Indonesia—2.1% | ||||||||
Bank Central Asia Tbk PT | 1,977,700 | $ | 4,196,828 | |||||
Bank Rakyat Indonesia Persero Tbk PT | 12,510,900 | 3,862,428 | ||||||
|
| |||||||
8,059,256 | ||||||||
|
| |||||||
Korea (Republic of)—9.5% |
| |||||||
Kia Motors Corp. | 213,508 | 8,145,078 | ||||||
LG Electronics, Inc. | 103,133 | 7,096,185 | ||||||
Partron Co., Ltd. | 238,699 | 3,674,574 | ||||||
POSCO | 22,816 | 4,843,491 | ||||||
Samsung Electronics Co., Ltd. | 180,591 | 7,353,723 | ||||||
Shinhan Financial Group Co., Ltd. | 126,847 | 4,933,595 | ||||||
|
| |||||||
36,046,646 | ||||||||
|
| |||||||
Mexico—2.9% | ||||||||
Grupo Financiero Banorte S.A.B de C.V., Class O | 1,873,100 | 10,879,228 | ||||||
|
| |||||||
Russian Federation—7.0% |
| |||||||
Alrosa PJSC (b)(c) | 2,474,700 | 3,377,025 | ||||||
Lukoil PJSC ADR | 200,807 | 16,871,804 | ||||||
MMC Norilsk Nickel PJSC ADR | 269,765 | 6,075,108 | ||||||
|
| |||||||
26,323,937 | ||||||||
|
| |||||||
South Africa—4.9% | ||||||||
AngloGold Ashanti Ltd. ADR | 205,400 | 3,658,174 | ||||||
Exxaro Resources Ltd. | 143,171 | 1,753,173 | ||||||
Impala Platinum Holdings Ltd. (d) | 238,406 | 1,181,444 | ||||||
Kumba Iron Ore Ltd. | 27,934 | 990,299 | ||||||
Nedbank Group Ltd. | 62,062 | 1,116,378 | ||||||
Telkom S.A. SOC Ltd. | 1,507,879 | 9,861,536 | ||||||
|
| |||||||
18,561,004 | ||||||||
|
| |||||||
Taiwan—7.3% | ||||||||
Cathay Financial Holding Co., Ltd. | 693,000 | 959,861 | ||||||
Chlitina Holding Ltd. | 245,000 | 2,115,961 | ||||||
CTBC Financial Holding Co., Ltd. | 1,315,000 | 904,209 | ||||||
Hon Hai Precision Industry Co., Ltd. | 2,227,000 | 5,556,174 | ||||||
Radiant Opto-Electronics Corp. | 1,004,000 | 3,374,039 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 945,000 | 7,227,716 | ||||||
Uni-President Enterprises Corp. | 1,232,000 | 3,281,655 | ||||||
United Microelectronics Corp. | 2,053,000 | 925,001 | ||||||
Zhen Ding Technology Holding Ltd. | 1,051,000 | 3,362,385 | ||||||
|
| |||||||
27,707,001 | ||||||||
|
| |||||||
Thailand—2.0% | ||||||||
Charoen Pokphand Foods PCL (b)(c) | 6,445,600 | 5,940,019 | ||||||
Land & Houses PCL (b)(c) | 4,574,000 | 1,656,693 | ||||||
|
| |||||||
7,596,712 | ||||||||
|
| |||||||
Turkey—1.4% | ||||||||
KOC Holding AS | 288,762 | 871,429 | ||||||
Turkiye Is Bankasi AS | 4,054,911 | 4,228,789 | ||||||
|
| |||||||
5,100,218 | ||||||||
|
|
Shares | Value | |||||||
United Kingdom—0.5% |
| |||||||
Mondi PLC | 76,199 | $ | 1,734,300 | |||||
|
| |||||||
United States—1.0% | ||||||||
AutoZone, Inc. (d) | 3,600 | 3,958,092 | ||||||
|
| |||||||
Total Common Stock (cost—$319,344,327) | 349,135,320 | |||||||
|
| |||||||
Preferred Stock—4.9% | ||||||||
Brazil—3.4% | ||||||||
Banco Bradesco S.A. | 628,020 | 6,172,339 | ||||||
Banco do Estado do Rio Grande do Sul S.A., Class B | 270,700 | 1,674,273 | ||||||
Cia Paranaense de Energia | 395,800 | 5,009,409 | ||||||
|
| |||||||
12,856,021 | ||||||||
|
| |||||||
Russian Federation—1.5% |
| |||||||
Surgutneftegas PJSC (b)(c) | 8,440,857 | 5,739,783 | ||||||
|
| |||||||
Total Preferred Stock (cost—$14,094,570) | 18,595,804 | |||||||
|
| |||||||
Exchange-Traded Funds—0.7% |
| |||||||
iShares MSCI Emerging Markets Index | 66,000 | 2,832,060 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—1.6% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $5,998,250; collateralized by U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $6,119,208 including accrued interest |
| |||||||
(cost—$5,998,000) | $5,998 | 5,998,000 | ||||||
|
| |||||||
Total Investments (cost—$342,306,247) (a)—99.5% |
| 376,561,184 | ||||||
|
| |||||||
Other assets less liabilities—0.5% | 1,798,413 | |||||||
|
| |||||||
Net Assets—100.0% | $378,359,597 | |||||||
|
|
Notes to Schedule of Investments:
(a) Securities with an aggregate value of $246,932,325, representing 65.3% of net assets, were valued utilizing modeling tools provided by a third-party vendor. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(b) Fair-Valued—Securities with an aggregate value of $16,713,520, representing 4.4% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(c) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(d)Non-income producing.
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 65 |
Table of Contents
Schedule of Investments
June 30, 2019
Glossary:
ADR—American Depositary Receipt
MSCI—Morgan Stanley Capital International
REIT—Real Estate Investment Trust
The industry classification of portfolio holdings and other assets less liabilities shown as a percentage of net assets were as follows:
Banks | 21.2% | |||
Interactive Media & Services | 8.3% | |||
Oil, Gas & Consumable Fuels | 7.7% | |||
Metals & Mining | 6.0% | |||
Technology Hardware, Storage & Peripherals | 4.2% | |||
IT Services | 4.0% | |||
Wireless Telecommunication Services | 3.5% | |||
Electronic Equipment, Instruments & Components | 3.3% | |||
Equity Real Estate Investment Trusts (REITs) | 3.3% | |||
Internet & Direct Marketing Retail | 3.3% | |||
Diversified Telecommunication Services | 3.1% | |||
Semiconductors & Semiconductor Equipment | 3.0% | |||
Machinery | 2.6% | |||
Food Products | 2.4% | |||
Automobiles | 2.2% | |||
Construction Materials | 1.9% | |||
Household Durables | 1.9% | |||
Consumer Finance | 1.8% | |||
Real Estate Management & Development | 1.6% | |||
Electric Utilities | 1.3% | |||
Hotels, Restaurants & Leisure | 1.2% | |||
Insurance | 1.2% | |||
Beverages | 1.2% | |||
Water Utilities | 1.1% | |||
Specialty Retail | 1.0% | |||
Tobacco | 0.9% | |||
Exchange-Traded Funds | 0.7% | |||
Household Products | 0.7% | |||
Personal Products | 0.6% | |||
Gas Utilities | 0.5% | |||
Road & Rail | 0.5% | |||
Paper & Forest Products | 0.5% | |||
Transportation Infrastructure | 0.4% | |||
Trading Companies & Distributors | 0.2% | |||
Healthcare Providers & Services | 0.2% | |||
Industrial Conglomerates | 0.2% | |||
Diversified Financial Services | 0.2% | |||
Repurchase Agreements | 1.6% | |||
Other assets less liabilities | 0.5% | |||
|
| |||
100.0% | ||||
|
|
AllianzGI Focused Growth Fund
Shares | Value | |||||||
Common Stock—96.6% |
| |||||||
Aerospace & Defense—3.7% |
| |||||||
Lockheed Martin Corp. | 104,752 | $38,081,542 | ||||||
|
| |||||||
Banks—1.3% | ||||||||
SVB Financial Group (a) | 60,635 | 13,618,015 | ||||||
|
| |||||||
Beverages—1.0% | ||||||||
Constellation Brands, Inc., Class A | 54,088 | 10,652,091 | ||||||
|
| |||||||
Biotechnology—1.6% | ||||||||
Vertex Pharmaceuticals, Inc. (a) | 90,780 | 16,647,236 | ||||||
|
| |||||||
Capital Markets—1.3% |
| |||||||
MSCI, Inc. | 54,575 | 13,031,964 | ||||||
|
| |||||||
Communications Equipment—1.8% |
| |||||||
Arista Networks, Inc. (a) | 72,340 | 18,780,911 | ||||||
|
| |||||||
Construction Materials—2.1% |
| |||||||
Vulcan Materials Co. | 158,805 | 21,805,514 | ||||||
|
| |||||||
Entertainment—0.8% | ||||||||
World Wrestling Entertainment, Inc., Class A | 117,910 | 8,514,281 | ||||||
|
| |||||||
Healthcare Equipment & Supplies—6.3% |
| |||||||
Boston Scientific Corp. (a) | 524,230 | 22,531,405 | ||||||
DexCom, Inc. (a) | 70,140 | 10,509,778 | ||||||
Insulet Corp. (a) | 146,305 | 17,465,891 | ||||||
Intuitive Surgical, Inc. (a) | 29,585 | 15,518,812 | ||||||
|
| |||||||
66,025,886 | ||||||||
|
| |||||||
Healthcare Providers & Services—4.8% |
| |||||||
Anthem, Inc. | 90,600 | 25,568,226 | ||||||
UnitedHealth Group, Inc. | 99,385 | 24,250,934 | ||||||
|
| |||||||
49,819,160 | ||||||||
|
| |||||||
Household Durables—0.6% |
| |||||||
Roku, Inc. (a) | 64,870 | 5,875,925 | ||||||
|
| |||||||
Industrial Conglomerates—1.6% |
| |||||||
General Electric Co. | 1,574,645 | 16,533,772 | ||||||
|
| |||||||
Insurance—1.1% | ||||||||
Progressive Corp. | 141,875 | 11,340,069 | ||||||
|
| |||||||
Interactive Media & Services—7.7% |
| |||||||
Facebook, Inc., Class A (a) | 265,685 | 51,277,205 | ||||||
Tencent Holdings Ltd. ADR | 636,880 | 28,825,189 | ||||||
|
| |||||||
80,102,394 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail—8.2% |
| |||||||
Amazon.com, Inc. (a) | 45,087 | 85,378,096 | ||||||
|
| |||||||
IT Services—16.1% | ||||||||
EPAM Systems, Inc. (a) | 60,210 | 10,422,351 | ||||||
Mastercard, Inc., Class A | 145,115 | 38,387,271 | ||||||
Okta, Inc. (a) | 87,880 | 10,854,059 | ||||||
PayPal Holdings, Inc. (a) | 333,245 | 38,143,223 | ||||||
Square, Inc., Class A (a) | 232,405 | 16,856,334 | ||||||
Visa, Inc., Class A | 305,325 | 52,989,154 | ||||||
|
| |||||||
167,652,392 | ||||||||
|
| |||||||
Life Sciences Tools & Services—2.8% |
| |||||||
Adaptive Biotechnologies Corp. (a) | 115,140 | 5,561,262 | ||||||
Agilent Technologies, Inc. | 318,415 | 23,776,048 | ||||||
|
| |||||||
29,337,310 | ||||||||
|
|
Shares | Value | |||||||
Machinery—1.6% | ||||||||
Fortive Corp. | 207,670 | $ | 16,929,258 | |||||
|
| |||||||
Media—1.5% | ||||||||
Comcast Corp., Class A | 376,345 | 15,911,867 | ||||||
|
| |||||||
Personal Products—1.2% |
| |||||||
Estee Lauder Cos., Inc., Class A | 66,830 | 12,237,241 | ||||||
|
| |||||||
Pharmaceuticals—3.0% |
| |||||||
Zoetis, Inc. | 278,855 | 31,647,254 | ||||||
|
| |||||||
Road & Rail—3.1% | ||||||||
Union Pacific Corp. | 189,290 | 32,010,832 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—3.6% |
| |||||||
Broadcom, Inc. | 89,725 | 25,828,239 | ||||||
ON Semiconductor Corp. (a) | 596,720 | 12,059,711 | ||||||
|
| |||||||
37,887,950 | ||||||||
|
| |||||||
Software—12.5% | ||||||||
Crowdstrike Holdings, Inc. (a) | 41,920 | 2,862,717 | ||||||
Microsoft Corp. | 545,455 | 73,069,152 | ||||||
Salesforce.com, Inc. (a) | 162,275 | 24,621,985 | ||||||
ServiceNow, Inc. (a) | 106,040 | 29,115,403 | ||||||
|
| |||||||
129,669,257 | ||||||||
|
| |||||||
Specialty Retail—3.2% |
| |||||||
Burlington Stores, Inc. (a) | 67,545 | 11,492,782 | ||||||
Home Depot, Inc. | 59,328 | 12,338,444 | ||||||
O’Reilly Automotive, Inc. (a) | 25,615 | 9,460,132 | ||||||
|
| |||||||
33,291,358 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—4.1% |
| |||||||
Apple, Inc. | 216,705 | 42,890,253 | ||||||
|
| |||||||
Total Common Stock (cost—$607,805,842) |
| 1,005,671,828 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—3.8% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $39,630,651; collateralized by U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $40,423,396 including accrued interest |
| |||||||
(cost—$39,629,000) | $39,629 | 39,629,000 | ||||||
|
| |||||||
Total Investments (cost—$647,434,842)—100.4% |
| 1,045,300,828 | ||||||
|
| |||||||
Liabilities in excess of other assets—(0.4)% | (3,917,039 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $1,041,383,789 | |||||||
|
|
Notes to Schedule of Investments:
(a)Non-income producing.
Glossary:
ADR—American Depositary Receipt
66 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
AllianzGI Global Natural Resources Fund
Shares | Value | |||||||
Common Stock—95.9% | ||||||||
Australia—5.2% | ||||||||
BHP Group Ltd. | 18,805 | $546,634 | ||||||
South32 Ltd. | 40,170 | 90,046 | ||||||
|
| |||||||
636,680 | ||||||||
|
| |||||||
Canada—5.2% | ||||||||
Enbridge, Inc. | 3,680 | 132,919 | ||||||
Nutrien Ltd. | 3,046 | 162,936 | ||||||
Suncor Energy, Inc. | 7,438 | 232,020 | ||||||
TC Energy Corp. | 2,150 | 106,585 | ||||||
|
| |||||||
634,460 | ||||||||
|
| |||||||
Denmark—0.6% | ||||||||
Vestas Wind Systems A/S | 905 | 78,403 | ||||||
|
| |||||||
France—4.9% | ||||||||
Air Liquide S.A. | 1,250 | 174,835 | ||||||
Total S.A. | 7,472 | 419,133 | ||||||
|
| |||||||
593,968 | ||||||||
|
| |||||||
Germany—2.4% | ||||||||
BASF SE | 1,915 | 139,315 | ||||||
HeidelbergCement AG | 1,855 | 150,116 | ||||||
|
| |||||||
289,431 | ||||||||
|
| |||||||
Japan—0.9% | ||||||||
Shin-Etsu Chemical Co., Ltd. | 1,200 | 112,274 | ||||||
|
| |||||||
Spain—0.7% | ||||||||
Siemens Gamesa Renewable Energy S.A. | 5,255 | 87,343 | ||||||
|
| |||||||
United Kingdom—13.5% | ||||||||
BP PLC | 58,432 | 407,082 | ||||||
Rio Tinto PLC | 7,804 | 483,013 | ||||||
Royal Dutch Shell PLC, Class A | 13,724 | 447,918 | ||||||
Royal Dutch Shell PLC, Class B | 9,760 | 319,803 | ||||||
|
| |||||||
1,657,816 | ||||||||
|
| |||||||
United States—62.5% | ||||||||
Air Products & Chemicals, Inc. | 1,570 | 355,401 | ||||||
Cabot Oil & Gas Corp. | 3,530 | 81,049 | ||||||
CF Industries Holdings, Inc. | 1,535 | 71,700 | ||||||
Chevron Corp. | 6,015 | 748,506 | ||||||
Concho Resources, Inc. (b) | 1,325 | 136,713 | ||||||
ConocoPhillips | 4,895 | 298,595 | ||||||
Continental Resources, Inc. (c) | 5,740 | 241,597 | ||||||
Devon Energy Corp. | 2,035 | 58,038 | ||||||
Diamondback Energy, Inc. | 2,810 | 306,206 | ||||||
Ecolab, Inc. (b) | 1,985 | 391,918 | ||||||
EOG Resources, Inc. | 3,535 | 329,321 | ||||||
Exxon Mobil Corp. | 10,815 | 828,753 | ||||||
FMC Corp. | 1,655 | 137,282 | ||||||
Hess Corp. | 2,020 | 128,411 | ||||||
Kansas City Southern | 880 | 107,202 | ||||||
Kinder Morgan, Inc. | 12,875 | 268,830 | ||||||
Linde PLC | 1,865 | 374,492 | ||||||
LyondellBasell Industries NV, Class A | 1,425 | 122,735 | ||||||
Marathon Oil Corp. | 11,200 | 159,152 | ||||||
Marathon Petroleum Corp. | 4,340 | 242,519 | ||||||
Occidental Petroleum Corp. | 2,395 | 120,421 | ||||||
ONEOK, Inc. | 2,910 | 200,237 | ||||||
Parsley Energy, Inc., Class A (c) | 7,380 | 140,294 | ||||||
Phillips 66 | 1,430 | 133,762 | ||||||
Pioneer Natural Resources Co. | 1,608 | 247,407 | ||||||
Schlumberger Ltd. | 7,390 | 293,679 | ||||||
Sherwin-Williams Co. | 245 | 112,281 | ||||||
Union Pacific Corp. | 725 | 122,605 | ||||||
Valero Energy Corp. | 4,320 | 369,835 | ||||||
Vulcan Materials Co. | 1,065 | 146,235 |
Shares | Value | |||||||
Williams Cos., Inc. | 10,825 | $ | 303,533 | |||||
WPX Energy, Inc. (c) | 5,360 | 61,694 | ||||||
|
| |||||||
7,640,403 | ||||||||
|
| |||||||
Total Common Stock (cost—$11,053,492) |
| 11,730,778 | ||||||
|
| |||||||
Exchange-Traded Funds—3.4% |
| |||||||
Invesco Solar | 4,865 | 137,534 | ||||||
VanEck Vectors Gold Miners | 10,545 | 269,530 | ||||||
|
| |||||||
Total Exchange-Traded Funds (cost—$325,938) |
| 407,064 | ||||||
|
| |||||||
Total Investments (cost—$11,379,430) (a)—99.3% |
| 12,137,842 | ||||||
|
| |||||||
Other assets less liabilities—0.7% | 91,356 | |||||||
|
| |||||||
Net Assets—100.0% |
| $12,229,198 | ||||||
|
|
Notes to Schedule of Investments:
(a) Securities with an aggregate value of $3,455,915, representing 28.3% of net assets, were valued utilizing modeling tools provided by a third-party vendor. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(b) All or partial amount segregated for the benefit of the counterparty as collateral for options written. There were no open options written outstanding at June 30, 2019, however the Fund had securities segregated as collateral for any transactions in the future.
(c)Non-income producing.
The industry classification of portfolio holdings and other assets less liabilities shown as a percentage of net assets were as follows:
Oil, Gas & Consumable Fuels | 61.0% | |||
Chemicals | 17.6% | |||
Metals & Mining | 9.2% | |||
Exchange-Traded Funds | 3.4% | |||
Construction Materials | 2.4% | |||
Energy Equipment & Services | 2.4% | |||
Road & Rail | 1.9% | |||
Electrical Equipment | 1.4% | |||
Other assets less liabilities | 0.7% | |||
|
| |||
100.0% | ||||
|
|
AllianzGI Global Small-Cap Fund
Shares | Value | |||||||
Common Stock—94.7% |
| |||||||
Australia—2.3% | ||||||||
ALS Ltd. | 54,115 | $279,560 | ||||||
Austal Ltd. | 117,502 | 282,113 | ||||||
Bapcor Ltd. | 44,700 | 175,475 | ||||||
Charter Hall Retail REIT | 99,249 | 304,806 | ||||||
Downer EDI Ltd. | 67,713 | 329,385 | ||||||
Growthpoint Properties Australia Ltd. REIT (c)(d)(e) | 15,921 | 46,051 | ||||||
Growthpoint Properties Australia Ltd. REIT | 20,100 | 58,169 | ||||||
GUD Holdings Ltd. | 39,130 | 275,543 | ||||||
NEXTDC Ltd. (e) | 55,644 | 253,998 | ||||||
Nine Entertainment Co., Holdings Ltd. | 174,118 | 230,019 | ||||||
Reliance Worldwide Corp. Ltd. | 70,800 | 175,195 | ||||||
Santos Ltd. | 17,545 | 87,594 | ||||||
Seven Group Holdings Ltd. | 19,100 | 248,894 | ||||||
WorleyParsons Ltd. | 30,000 | 311,859 | ||||||
|
| |||||||
3,058,661 | ||||||||
|
| |||||||
Austria—1.7% |
| |||||||
ANDRITZ AG | 14,594 | 549,447 | ||||||
Schoeller-Bleckmann Oilfield Equipment AG | 2,474 | 210,082 | ||||||
UNIQA Insurance Group AG | 79,964 | 745,147 | ||||||
Wienerberger AG | 31,260 | 771,343 | ||||||
|
| |||||||
2,276,019 | ||||||||
|
| |||||||
Denmark—2.0% |
| |||||||
Ambu A/S, Class B | 27,051 | 439,748 | ||||||
FLSmidth & Co. A/S | 16,056 | 727,527 | ||||||
ISS A/S | 23,296 | 704,303 | ||||||
SimCorp A/S | 8,804 | 852,245 | ||||||
|
| |||||||
2,723,823 | ||||||||
|
| |||||||
Finland—0.4% |
| |||||||
Huhtamaki Oyj | 11,510 | 473,370 | ||||||
|
| |||||||
France—2.4% |
| |||||||
Ingenico Group S.A. | 9,950 | 880,588 | ||||||
Korian S.A. | 20,167 | 767,114 | ||||||
Nexity S.A. | 17,458 | 754,408 | ||||||
Sartorius Stedim Biotech | 4,708 | 742,372 | ||||||
|
| |||||||
3,144,482 | ||||||||
|
| |||||||
Germany—3.1% |
| |||||||
alstria officeREIT-AG | 51,892 | 840,251 | ||||||
Bechtle AG | 7,271 | 836,788 | ||||||
CANCOM SE | 16,989 | 901,753 | ||||||
Hella GmbH & Co. KGaA | 15,697 | 773,444 | ||||||
TLG Immobilien AG | 26,315 | 770,512 | ||||||
|
| |||||||
4,122,748 | ||||||||
|
| |||||||
Hong Kong—0.1% |
| |||||||
Techtronic Industries Co., Ltd. | 25,000 | 191,521 | ||||||
|
| |||||||
Indonesia—0.2% |
| |||||||
Bank Tabungan Negara Persero Tbk PT | 485,600 | 84,597 | ||||||
Jasa Marga Persero Tbk PT | 587,600 | 237,955 | ||||||
|
| |||||||
322,552 | ||||||||
|
| |||||||
Italy—1.0% |
| |||||||
Buzzi Unicem SpA | 36,604 | 743,202 | ||||||
De’ Longhi SpA | 27,842 | 563,490 | ||||||
|
| |||||||
1,306,692 | ||||||||
|
| |||||||
Japan—9.5% |
| |||||||
Anritsu Corp. | 25,500 | 444,653 | ||||||
Azbil Corp. | 28,000 | 685,638 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 67 |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
COMSYS Holdings Corp. | 38,800 | $ | 985,961 | |||||
Fuji Electric Co., Ltd. | 5,900 | 204,475 | ||||||
Fuji Oil Holdings, Inc. | 5,400 | 162,896 | ||||||
Hitachi Transport System Ltd. | 24,600 | 800,262 | ||||||
Horiba Ltd. | 2,900 | 150,458 | ||||||
Ichigo, Inc. | 85,000 | 250,231 | ||||||
Itochu Techno-Solutions Corp. | 30,200 | 776,389 | ||||||
KH Neochem Co., Ltd. | 14,100 | 346,726 | ||||||
Kobe Bussan Co., Ltd. | 6,800 | 330,536 | ||||||
Lion Corp. | 33,500 | 624,952 | ||||||
Maruwa Co., Ltd. | 11,600 | 637,113 | ||||||
Mitsubishi UFJ Lease & Finance Co., Ltd. | 167,300 | 889,022 | ||||||
Nippon Shinyaku Co., Ltd. | 11,200 | 792,851 | ||||||
Nishio Rent All Co., Ltd. | 15,900 | 450,206 | ||||||
Oji Holdings Corp. | 82,200 | 476,152 | ||||||
Okamura Corp. | 23,400 | 234,306 | ||||||
Penta-Ocean Construction Co., Ltd. | 80,000 | 393,150 | ||||||
Rengo Co., Ltd. | 96,700 | 778,533 | ||||||
Ship Healthcare Holdings, Inc. | 15,200 | 657,565 | ||||||
Sojitz Corp. | 109,100 | 351,103 | ||||||
THK Co., Ltd. | 9,900 | 238,129 | ||||||
Tokyu Fudosan Holdings Corp. | 118,700 | 656,911 | ||||||
Ube Industries Ltd. | 21,200 | 441,063 | ||||||
|
| |||||||
12,759,281 | ||||||||
|
| |||||||
Netherlands—1.1% |
| |||||||
ASM International NV | 11,522 | 747,807 | ||||||
ASR Nederland NV | 18,141 | 737,093 | ||||||
|
| |||||||
1,484,900 | ||||||||
|
| |||||||
Norway—1.0% |
| |||||||
Elkem ASA (a) | 217,069 | 612,776 | ||||||
Storebrand ASA | 99,579 | 732,903 | ||||||
|
| |||||||
1,345,679 | ||||||||
|
| |||||||
Singapore—0.7% |
| |||||||
Frasers Centrepoint Trust | 178,500 | 343,016 | ||||||
Mapletree Commercial Trust REIT | 175,900 | 271,803 | ||||||
Mapletree Industrial Trust REIT | 158,000 | 261,674 | ||||||
|
| |||||||
876,493 | ||||||||
|
| |||||||
Sweden—0.7% |
| |||||||
AAK AB | 48,111 | 912,375 | ||||||
|
| |||||||
Switzerland—2.3% |
| |||||||
Galenica AG (a)(e) | 16,205 | 814,289 | ||||||
Georg Fischer AG | 653 | 624,662 | ||||||
Interroll Holding AG | 357 | 897,803 | ||||||
OC Oerlikon Corp. AG | 56,915 | 695,491 | ||||||
|
| |||||||
3,032,245 | ||||||||
|
| |||||||
Taiwan—0.1% |
| |||||||
Merry Electronics Co., Ltd. | 33,000 | 180,205 | ||||||
|
| |||||||
Thailand—0.2% |
| |||||||
Amata Corp. PCL (c)(d) | 323,000 | 257,201 | ||||||
|
| |||||||
United Kingdom—6.1% |
| |||||||
ASOS PLC (e) | 12,838 | 416,668 | ||||||
Auto Trader Group PLC (a) | 104,539 | 728,090 | ||||||
Derwent London PLC REIT | 18,173 | 719,664 | ||||||
Genus PLC | 24,368 | 820,703 | ||||||
HomeServe PLC | 53,813 | 810,909 | ||||||
Howden Joinery Group PLC | 113,993 | 733,629 | ||||||
Intermediate Capital Group PLC | 49,462 | 867,593 | ||||||
Moneysupermarket.com Group PLC | 168,243 | 881,350 | ||||||
Rotork PLC | 194,312 | 781,173 |
Shares | Value | |||||||
Spectris PLC | 21,938 | $ | 801,330 | |||||
Tullow Oil PLC | 231,600 | 619,564 | ||||||
|
| |||||||
8,180,673 | ||||||||
|
| |||||||
United States—59.8% |
| |||||||
Acacia Communications, Inc. (e) | 18,223 | 859,397 | ||||||
Addus HomeCare Corp. (e) | 16,038 | 1,202,048 | ||||||
Air Transport Services Group, Inc. (e) | 53,318 | 1,300,959 | ||||||
Alteryx, Inc., Class A (e) | 8,200 | 894,784 | ||||||
Americold Realty Trust REIT | 46,462 | 1,506,298 | ||||||
Ameris Bancorp | 23,168 | 907,954 | ||||||
ANGI Homeservices, Inc., Class A (e) | 54,548 | 709,669 | ||||||
Axon Enterprise, Inc. (e) | 15,155 | 973,103 | ||||||
Bio-Rad Laboratories, Inc., Class A (e) | 2,206 | 689,574 | ||||||
Bluebird Bio, Inc. (e) | 1,320 | 167,904 | ||||||
Bright Horizons Family Solutions, Inc. (e) | 6,739 | 1,016,713 | ||||||
Brink’s Co. | 11,070 | 898,663 | ||||||
Brown & Brown, Inc. | 39,045 | 1,308,007 | ||||||
CBIZ, Inc. (e) | 46,335 | 907,703 | ||||||
CenterState Bank Corp. | 34,970 | 805,359 | ||||||
Charles River Laboratories International, Inc. (e) | 3,795 | 538,511 | ||||||
Chart Industries, Inc. (e) | 15,391 | 1,183,260 | ||||||
Churchill Downs, Inc. | 6,676 | 768,207 | ||||||
Columbus McKinnon Corp. | 16,797 | 704,970 | ||||||
Dine Brands Global, Inc. | 10,586 | 1,010,645 | ||||||
eHealth, Inc. (e) | 9,136 | 786,610 | ||||||
Equity LifeStyle Properties, Inc. REIT | 8,843 | 1,073,010 | ||||||
Essent Group Ltd. (e) | 21,885 | 1,028,376 | ||||||
Etsy, Inc. (e) | 11,661 | 715,636 | ||||||
First Industrial Realty Trust, Inc. REIT | 39,041 | 1,434,366 | ||||||
First Merchants Corp. | 18,812 | 712,975 | ||||||
Five9, Inc. (e) | 12,216 | 626,559 | ||||||
Fluidigm Corp. (e) | 60,734 | 748,243 | ||||||
Fox Factory Holding Corp. (e) | 11,487 | 947,792 | ||||||
Freshpet, Inc. (e) | 24,689 | 1,123,596 | ||||||
Hanover Insurance Group, Inc. | 10,321 | 1,324,184 | ||||||
Harsco Corp. (e) | 24,782 | 680,018 | ||||||
HEICO Corp., Class A | 10,167 | 1,050,963 | ||||||
Horizon Therapeutics PLC (e) | 42,530 | 1,023,272 | ||||||
HubSpot, Inc. (e) | 3,973 | 677,476 | ||||||
Ingevity Corp. (e) | 12,252 | 1,288,543 | ||||||
Insperity, Inc. | 10,360 | 1,265,370 | ||||||
Invitae Corp. (e) | 30,127 | 707,985 | ||||||
Kilroy Realty Corp. REIT | 15,019 | 1,108,552 | ||||||
Kinsale Capital Group, Inc. | 15,908 | 1,455,264 | ||||||
Kratos Defense & Security Solutions, Inc. (e) | 43,433 | 994,181 | ||||||
LendingTree, Inc. (e) | 1,941 | 815,278 | ||||||
LHC Group, Inc. (e) | 8,781 | 1,050,032 | ||||||
Lincoln Electric Holdings, Inc. | 10,360 | 852,835 | ||||||
LivePerson, Inc. (e) | 34,315 | 962,193 | ||||||
LiveRamp Holdings, Inc. (e) | 10,188 | 493,914 | ||||||
LPL Financial Holdings, Inc. | 18,263 | 1,489,713 | ||||||
Madison Square Garden Co., Class A (e) | 4,347 | 1,216,899 | ||||||
Medifast, Inc. | 4,185 | 536,936 | ||||||
Mercury Systems, Inc. (e) | 11,061 | 778,141 | ||||||
Merit Medical Systems, Inc. (e) | 21,765 | 1,296,323 | ||||||
MKS Instruments, Inc. | 9,826 | 765,347 | ||||||
Monolithic Power Systems, Inc. | 3,731 | 506,595 |
Shares | Value | |||||||
Natera, Inc. (e) | 38,984 | $ | 1,075,179 | |||||
Neurocrine Biosciences, Inc. (e) | 3,829 | 323,282 | ||||||
Nexstar Media Group, Inc., Class A | 10,819 | 1,092,719 | ||||||
Ollie’s Bargain Outlet Holdings, Inc. (e) | 5,485 | 477,798 | ||||||
Omnicell, Inc. (e) | 9,085 | 781,583 | ||||||
Perficient, Inc. (e) | 26,967 | 925,507 | ||||||
Performance Food Group Co. (e) | 17,040 | 682,111 | ||||||
Pluralsight, Inc., Class A (e) | 34,230 | 1,037,854 | ||||||
Pool Corp. | 2,949 | 563,259 | ||||||
PRA Health Sciences, Inc. (e) | 9,313 | 923,384 | ||||||
ProPetro Holding Corp. (e) | 46,173 | 955,781 | ||||||
Quanterix Corp. (e) | 12,649 | 427,410 | ||||||
R1 RCM, Inc. (e) | 112,297 | 1,412,696 | ||||||
Rapid7, Inc. (e) | 11,620 | 672,101 | ||||||
REGENXBIO, Inc. (e) | 9,688 | 497,673 | ||||||
Rosetta Stone, Inc. (e) | 34,292 | 784,601 | ||||||
Sage Therapeutics, Inc. (e) | 2,656 | 486,287 | ||||||
Sarepta Therapeutics, Inc. (e) | 4,138 | 628,769 | ||||||
Semtech Corp. (e) | 14,715 | 707,056 | ||||||
Simply Good Foods Co. (e) | 52,523 | 1,264,754 | ||||||
STAG Industrial, Inc. REIT | 51,154 | 1,546,897 | ||||||
Strategic Education, Inc. | 5,103 | 908,334 | ||||||
Tandem Diabetes Care, Inc. (e) | 15,046 | 970,768 | ||||||
TechTarget, Inc. (e) | 24,773 | 526,426 | ||||||
Teladoc Health, Inc. (e) | 10,115 | 671,737 | ||||||
Tetra Tech, Inc. | 11,448 | 899,240 | ||||||
TPI Composites, Inc. (e) | 24,905 | 615,652 | ||||||
Vericel Corp. (e) | 22,070 | 416,902 | ||||||
Verint Systems, Inc. (e) | 18,941 | 1,018,647 | ||||||
Vonage Holdings Corp. (e) | 56,028 | 634,797 | ||||||
Western Alliance Bancorp (e) | 18,893 | 844,895 | ||||||
WEX, Inc. (e) | 5,525 | 1,149,753 | ||||||
WPX Energy, Inc. (e) | 74,038 | 852,177 | ||||||
YETI Holdings, Inc. (e) | 43,721 | 1,265,723 | ||||||
Zendesk, Inc. (e) | 6,018 | 535,783 | ||||||
Zix Corp. (e) | 97,570 | 886,911 | ||||||
Zynga, Inc., Class A (e) | 112,080 | 687,050 | ||||||
|
| |||||||
80,042,401 | ||||||||
|
| |||||||
Total Common Stock (cost—$106,378,340) |
| 126,691,321 | ||||||
|
| |||||||
Preferred Stock—0.5% |
| |||||||
Germany—0.5% |
| |||||||
Jungheinrich AG (cost—$660,483) | 21,848 | 674,411 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—3.2% |
| |||||||
State Street Bank and Trust Co., |
| |||||||
(cost—$4,336,000) | $4,336 | 4,336,000 | ||||||
|
| |||||||
Total Investments (cost—$111,374,823) (b)—98.4% |
| 131,701,732 | ||||||
|
| |||||||
Other assets less liabilities—1.6% |
| 2,190,075 | ||||||
|
| |||||||
Net Assets—100.0% |
| $133,891,807 | ||||||
|
|
68 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Notes to Schedule of Investments:
(a) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $2,155,155, representing 1.6% of net assets.
(b) Securities with an aggregate value of $42,652,007, representing 31.9% of net assets, were valued utilizing modeling tools provided by a third-party vendor. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(c) Fair-Valued—Securities with an aggregate value of $303,252, representing 0.2% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(d) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(e)Non-income producing.
Glossary:
REIT—Real Estate Investment Trust
The industry classification of portfolio holdings and other assets less liabilities shown as a percentage of net assets were as follows:
Equity Real Estate Investment Trusts (REITs) | 7.1% | |||
Machinery | 6.6% | |||
Software | 6.1% | |||
Insurance | 5.3% | |||
Healthcare Providers & Services | 4.4% | |||
IT Services | 4.0% | |||
Biotechnology | 3.8% | |||
Aerospace & Defense | 3.1% | |||
Life Sciences Tools & Services | 3.0% | |||
Commercial Services & Supplies | 2.9% | |||
Electronic Equipment, Instruments & Components | 2.8% | |||
Food Products | 2.6% | |||
Banks | 2.5% | |||
Semiconductors & Semiconductor Equipment | 2.0% | |||
Healthcare Equipment & Supplies | 2.0% | |||
Real Estate Management & Development | 2.0% | |||
Chemicals | 2.0% | |||
Entertainment | 2.0% | |||
Professional Services | 1.8% | |||
Capital Markets | 1.8% | |||
Internet & Direct Marketing Retail | 1.5% | |||
Auto Components | 1.5% | |||
Diversified Consumer Services | 1.4% | |||
Media | 1.4% | |||
Thrifts & Mortgage Finance | 1.4% | |||
Pharmaceuticals | 1.4% | |||
Trading Companies & Distributors | 1.3% | |||
Hotels, Restaurants & Leisure | 1.3% | |||
Oil, Gas & Consumable Fuels | 1.2% | |||
Construction Materials | 1.1% | |||
Energy Equipment & Services | 1.1% | |||
Healthcare Technology | 1.1% | |||
Interactive Media & Services | 1.1% | |||
Construction & Engineering | 1.0% | |||
Air Freight & Logistics | 1.0% | |||
Leisure Equipment & Products | 0.9% | |||
Containers & Packaging | 0.9% | |||
Food & Staples Retailing | 0.8% | |||
Diversified Financial Services | 0.7% | |||
Communications Equipment | 0.6% | |||
Electrical Equipment | 0.6% | |||
Road & Rail | 0.6% | |||
Distributors | 0.6% | |||
Diversified Telecommunication Services | 0.5% | |||
Household Products | 0.5% | |||
Household Durables | 0.4% | |||
Personal Products | 0.4% | |||
Multi-Line Retail | 0.4% | |||
Paper & Forest Products | 0.4% | |||
Transportation Infrastructure | 0.2% | |||
Building Products | 0.1% | |||
Repurchase Agreements | 3.2% | |||
Other assets less liabilities | 1.6% | |||
|
| |||
100.0% | ||||
|
|
AllianzGI Health Sciences Fund
Shares | Value | |||||||
Common Stock—97.9% |
| |||||||
Biotechnology—15.3% |
| |||||||
AbbVie, Inc. | 41,000 | $2,981,520 | ||||||
Alexion Pharmaceuticals, Inc. (d) | 6,910 | 905,072 | ||||||
Amarin Corp. PLC ADR (d) | 32,710 | 634,247 | ||||||
Arena Pharmaceuticals, Inc. (d) | 10,090 | 591,577 | ||||||
Argenx SE ADR (d) | 4,150 | 587,557 | ||||||
Ascendis Pharma A/S ADR (d) | 3,600 | 414,540 | ||||||
BioMarin Pharmaceutical, Inc. (d) | 21,909 | 1,876,506 | ||||||
Bluebird Bio, Inc. (d) | 2,625 | 333,900 | ||||||
Celgene Corp. (d) | 21,180 | 1,957,879 | ||||||
CytomX Therapeutics, Inc. (d) | 16,559 | 185,792 | ||||||
Exact Sciences Corp. (d) | 5,100 | 602,004 | ||||||
Gilead Sciences, Inc. | 49,396 | 3,337,194 | ||||||
Heron Therapeutics, Inc. (d) | 39,355 | 731,609 | ||||||
Insmed, Inc. (d) | 26,215 | 671,104 | ||||||
Invitae Corp. (d) | 24,557 | 577,089 | ||||||
Iovance Biotherapeutics, Inc. (d) | 28,715 | 704,092 | ||||||
Neurocrine Biosciences, Inc. (d) | 12,325 | 1,040,600 | ||||||
Sage Therapeutics, Inc. (d) | 5,960 | 1,091,216 | ||||||
Sarepta Therapeutics, Inc. (d) | 5,100 | 774,945 | ||||||
uniQure NV (d) | 3,000 | 234,450 | ||||||
Vertex Pharmaceuticals, Inc. (d) | 19,245 | 3,529,148 | ||||||
|
| |||||||
23,762,041 | ||||||||
|
| |||||||
Healthcare Equipment & Supplies—20.9% |
| |||||||
Abbott Laboratories | 67,098 | 5,642,942 | ||||||
ABIOMED, Inc. (d) | 4,155 | 1,082,336 | ||||||
Alcon, Inc. (d) | 32,875 | 2,039,894 | ||||||
Align Technology, Inc. (d) | 2,285 | 625,405 | ||||||
Becton Dickinson and Co. | 12,845 | 3,237,068 | ||||||
Boston Scientific Corp. (d) | 115,157 | 4,949,448 | ||||||
DENTSPLY SIRONA, Inc. | 6,970 | 406,769 | ||||||
DexCom, Inc. (d) | 10,220 | 1,531,365 | ||||||
Edwards Lifesciences Corp. (d) | 2,190 | 404,581 | ||||||
Haemonetics Corp. (d) | 10,630 | 1,279,214 | ||||||
Insulet Corp. (d) | 9,955 | 1,188,428 | ||||||
Intuitive Surgical, Inc. (d) | 7,855 | 4,120,340 | ||||||
Quotient Ltd. (d) | 150,789 | 1,409,877 | ||||||
Vapotherm, Inc. (d) | 54,255 | 1,247,865 | ||||||
Wright Medical Group NV (d) | 37,125 | 1,107,067 | ||||||
Zimmer Biomet Holdings, Inc. | 18,795 | 2,212,923 | ||||||
|
| |||||||
32,485,522 | ||||||||
|
| |||||||
Healthcare Providers & Services—14.0% |
| |||||||
Anthem, Inc. | 16,265 | 4,590,146 | ||||||
CVS Health Corp. | 56,470 | 3,077,050 | ||||||
Humana, Inc. | 16,260 | 4,313,778 | ||||||
UnitedHealth Group, Inc. | 38,801 | 9,467,832 | ||||||
WellCare Health Plans, Inc. (d) | 1,515 | 431,881 | ||||||
|
| |||||||
21,880,687 | ||||||||
|
| |||||||
Life Sciences Tools & Services—7.1% |
| |||||||
Adaptive Biotechnologies Corp. (d) | 28,150 | 1,359,645 | ||||||
Agilent Technologies, Inc. | 42,955 | 3,207,450 | ||||||
Bio-Rad Laboratories, Inc., Class A (d) | 2,505 | 783,038 | ||||||
Illumina, Inc. (d) | 7,945 | 2,924,952 | ||||||
PerkinElmer, Inc. | 8,475 | 816,482 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 69 |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
Thermo Fisher Scientific, Inc. | 6,540 | $ | 1,920,667 | |||||
|
| |||||||
11,012,234 | ||||||||
|
| |||||||
Pharmaceuticals—40.6% |
| |||||||
AIT Therapeutics, Inc. (d) | 123,899 | 687,640 | ||||||
Allergan PLC | 11,161 | 1,868,686 | ||||||
Aratana Therapeutics, Inc. (d) | 38,000 | 196,080 | ||||||
AstraZeneca PLC ADR | 197,615 | 8,157,547 | ||||||
Bayer AG | 25,485 | 1,767,647 | ||||||
Bristol-Myers Squibb Co. | 125,010 | 5,669,204 | ||||||
Catalent, Inc. (d) | 30,330 | 1,644,189 | ||||||
Dermira, Inc. (d) | 55,990 | 535,264 | ||||||
Elanco Animal Health, Inc. (d) | 85,365 | 2,885,337 | ||||||
Horizon Therapeutics PLC (d) | 56,535 | 1,360,232 | ||||||
Johnson & Johnson | 36,007 | 5,015,055 | ||||||
Merck & Co., Inc. | 120,262 | 10,083,969 | ||||||
Mylan NV (d) | 47,231 | 899,278 | ||||||
Novartis AG ADR | 100,388 | 9,166,428 | ||||||
Pfizer, Inc. | 67,619 | 2,929,255 | ||||||
Sanofi ADR | 121,365 | 5,251,464 | ||||||
Takeda Pharmaceutical Co., Ltd. (d) | 44,200 | 1,572,319 | ||||||
Zoetis, Inc. | 29,990 | 3,403,565 | ||||||
|
| |||||||
63,093,159 | ||||||||
|
| |||||||
Total Common Stock (cost—$130,867,839) | 152,233,643 | |||||||
|
| |||||||
Units | ||||||||
Warrants—0.2% |
| |||||||
Pharmaceuticals—0.2% |
| |||||||
AIT Therapeutics, Inc., (b)(c)(d) (cost—$1,239) | 123,899 | 184,981 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—2.3% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $3,619,151; collateralized by U.S. Treasury Notes, 2.50%, due 5/15/24, valued at $3,691,941 including accrued interest |
| |||||||
(cost—$3,619,000) | $3,619 | 3,619,000 | ||||||
|
| |||||||
Total Investments (cost—$134,488,078) (a)—100.4% |
| 156,037,624 | ||||||
|
| |||||||
Liabilities in excess of other assets—(0.4)% | (549,057 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $155,488,567 | |||||||
|
|
Notes to Schedule of Investments:
(a) Securities with an aggregate value of $3,339,966, representing 2.1% of net assets, were valued utilizing modeling tools provided by a third-party vendor. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(b) Fair-Valued—Security with a value of $184,981, representing 0.1% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(c) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(d)Non-income producing.
Glossary:
ADR—American Depositary Receipt
AllianzGI Income & Growth Fund
Shares | Value | |||||||
Common Stock—32.9% |
| |||||||
Advertising—0.0% |
| |||||||
Mood Media Corp. (d)(f)(k) | 286,500 | $266,445 | ||||||
|
| |||||||
Aerospace & Defense—1.1% |
| |||||||
Arconic, Inc. | 286,070 | 7,386,327 | ||||||
Boeing Co. (g) | 65,500 | 23,842,655 | ||||||
Erickson, | 10,866 | 272,411 | ||||||
Raytheon Co. | 96,400 | 16,762,032 | ||||||
|
| |||||||
48,263,425 | ||||||||
|
| |||||||
Apparel & Textiles—0.0% |
| |||||||
Quiksilver, | 2,328 | 44,930 | ||||||
|
| |||||||
Automobiles—0.3% |
| |||||||
Ford Motor Co. | 1,199,700 | 12,272,931 | ||||||
|
| |||||||
Banks—1.1% |
| |||||||
Bank of America Corp. | 676,900 | 19,630,100 | ||||||
CCF Holdings LLC, Class A (cost—$0; purchased 12/18/18) (d)(f)(i)(k) | 31,304 | 3 | ||||||
CCF Holdings LLC, Class B (cost—$0; purchased | 42,857 | 4 | ||||||
JPMorgan Chase & Co. (g) | 274,100 | 30,644,380 | ||||||
|
| |||||||
50,274,487 | ||||||||
|
| |||||||
Beverages—0.3% |
| |||||||
PepsiCo, Inc. | 120,300 | 15,774,939 | ||||||
|
| |||||||
Biotechnology—1.4% |
| |||||||
AbbVie, Inc. | 215,900 | 15,700,248 | ||||||
Biogen, Inc. (k) | 29,700 | 6,945,939 | ||||||
BioMarin Pharmaceutical, Inc. (k) | 3,926 | 336,262 | ||||||
Gilead Sciences, Inc. | 239,250 | 16,163,730 | ||||||
Vertex Pharmaceuticals, Inc. (g)(k) | 119,700 | 21,950,586 | ||||||
|
| |||||||
61,096,765 | ||||||||
|
| |||||||
Building Products—0.3% |
| |||||||
Johnson Controls International PLC | 370,382 | 15,300,480 | ||||||
Resideo Technologies, | 11,016 | 241,471 | ||||||
|
| |||||||
15,541,951 | ||||||||
|
| |||||||
Capital Markets—0.3% |
| |||||||
S&P Global, Inc. (g) | 62,100 | 14,145,759 | ||||||
|
| |||||||
Chemicals—0.3% |
| |||||||
Chemours Co. | 238,400 | 5,721,600 | ||||||
Corteva, Inc. (k) | 59,533 | 1,760,391 | ||||||
Dow, Inc. (k) | 59,533 | 2,935,572 | ||||||
DuPont de Nemours, Inc. | 59,533 | 4,469,142 | ||||||
|
| |||||||
14,886,705 | ||||||||
|
| |||||||
Commercial Services—0.0% |
| |||||||
Cenveo | 19,074 | 576,798 | ||||||
|
| |||||||
Commercial Services & Supplies—0.1% |
| |||||||
Stericycle, Inc. (k) | 66,843 | 3,191,753 | ||||||
|
| |||||||
Communications Equipment—0.6% |
| |||||||
Cisco Systems, Inc. | 535,600 | 29,313,388 | ||||||
|
| |||||||
Construction & Engineering—0.2% |
| |||||||
Fluor Corp. | 209,800 | 7,068,162 | ||||||
|
|
70 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
Diversified Telecommunication Services—0.0% |
| |||||||
Frontier Communications Corp. (k) | 210,781 | $ | 368,867 | |||||
|
| |||||||
Energy Equipment & Services—0.2% |
| |||||||
National Oilwell Varco, Inc. | 145,600 | 3,236,688 | ||||||
Schlumberger Ltd. | 172,400 | 6,851,176 | ||||||
|
| |||||||
10,087,864 | ||||||||
|
| |||||||
Entertainment—1.6% |
| |||||||
Netflix, Inc. (k) | 83,100 | 30,524,292 | ||||||
Take-Two Interactive Software, Inc. (g)(k) | 139,700 | 15,860,141 | ||||||
Walt Disney Co. (g) | 201,300 | 28,109,532 | ||||||
|
| |||||||
74,493,965 | ||||||||
|
| |||||||
Food & Staples Retailing—1.3% |
| |||||||
Costco Wholesale Corp. | 120,400 | 31,816,904 | ||||||
Kroger Co. | 472,000 | 10,247,120 | ||||||
Walgreens Boots Alliance, Inc. | 286,600 | 15,668,422 | ||||||
|
| |||||||
57,732,446 | ||||||||
|
| |||||||
Food Products—0.1% |
| |||||||
Archer-Daniels-Midland Co. | 159,650 | 6,513,720 | ||||||
|
| |||||||
Healthcare Equipment & Supplies—1.5% |
| |||||||
Align Technology, | 73,900 | 20,226,430 | ||||||
Boston Scientific | 611,600 | 26,286,568 | ||||||
Intuitive Surgical, | 41,800 | 21,926,190 | ||||||
|
| |||||||
68,439,188 | ||||||||
|
| |||||||
Healthcare Providers & Services—1.1% |
| |||||||
Laboratory Corp. of America Holdings (k) | 49,000 | 8,472,100 | ||||||
McKesson Corp. | 114,300 | 15,360,777 | ||||||
UnitedHealth Group, Inc. | 106,600 | 26,011,466 | ||||||
|
| |||||||
49,844,343 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure—1.2% |
| |||||||
McDonald’s Corp. | 112,000 | 23,257,920 | ||||||
Starbucks Corp. (g) | 239,300 | 20,060,519 | ||||||
Wynn Resorts Ltd. | 76,700 | 9,510,033 | ||||||
|
| |||||||
52,828,472 | ||||||||
|
| |||||||
Household Durables—0.3% |
| |||||||
DR Horton, Inc. (g) | 320,000 | 13,801,600 | ||||||
|
| |||||||
Independent Power Producers & Energy Traders—0.1% |
| |||||||
Vistra Energy Corp. | 144,101 | 3,262,447 | ||||||
|
| |||||||
Industrial Conglomerates—0.8% |
| |||||||
3M Co. | 50,100 | 8,684,334 | ||||||
General Electric Co. | 326,200 | 3,425,100 | ||||||
Honeywell International, Inc. (g) | 131,500 | 22,958,585 | ||||||
|
| |||||||
35,068,019 | ||||||||
|
| |||||||
Insurance—0.4% |
| |||||||
Progressive Corp. | 229,700 | 18,359,921 | ||||||
|
| |||||||
Interactive Media & Services—1.7% |
| |||||||
Alphabet, Inc., Class A (g)(k) | 34,800 | 37,681,440 | ||||||
Facebook, Inc., Class A (g)(k) | 211,800 | 40,877,400 | ||||||
|
| |||||||
78,558,840 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail—1.5% |
| |||||||
Alibaba Group Holding Ltd. ADR (k) | 142,081 | 24,075,626 | ||||||
Amazon.com, Inc. (k) | 23,600 | 44,689,668 | ||||||
|
| |||||||
68,765,294 | ||||||||
|
|
Shares | Value | |||||||
IT Services—2.5% |
| |||||||
Fiserv, Inc. (g)(k) | 217,500 | $ | 19,827,300 | |||||
International Business Machines Corp. | 92,200 | 12,714,380 | ||||||
Mastercard, Inc., Class A | 42,200 | 11,163,166 | ||||||
PayPal Holdings, Inc. (k) | 195,200 | 22,342,592 | ||||||
Visa, Inc., Class A | 262,000 | 45,470,100 | ||||||
|
| |||||||
111,517,538 | ||||||||
|
| |||||||
Machinery—1.0% |
| |||||||
Caterpillar, Inc. | 202,500 | 27,598,725 | ||||||
Deere & Co. (g) | 111,900 | 18,542,949 | ||||||
Wabtec Corp. | 1,752 | 125,724 | ||||||
|
| |||||||
46,267,398 | ||||||||
|
| |||||||
Media—0.4% |
| |||||||
Comcast Corp., Class A | 437,700 | 18,505,956 | ||||||
LiveStyle, Inc. (a)(d)(f)(h)(k)(l) | 202,319 | 20 | ||||||
Postmedia Network Canada | 1,018,823 | 1,018,823 | ||||||
|
| |||||||
19,524,799 | ||||||||
|
| |||||||
Metals & Mining—0.1% |
| |||||||
ArcelorMittal | 180,611 | 3,256,416 | ||||||
Freeport-McMoRan, Inc. | 113,100 | 1,313,091 | ||||||
|
| |||||||
4,569,507 | ||||||||
|
| |||||||
Multi-Line Retail—0.3% |
| |||||||
Target Corp. (g) | 166,700 | 14,437,887 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—0.9% |
| |||||||
Arch Coal, Inc., Class A | 1,858 | 175,042 | ||||||
Chesapeake Energy Corp. (k) | 1,250,759 | 2,438,980 | ||||||
Hercules Offshore, Inc. (d)(f)(k) | 174,935 | 18 | ||||||
Hess Corp. | 29,237 | 1,858,596 | ||||||
Kinder Morgan, Inc. | 187,778 | 3,920,805 | ||||||
Occidental Petroleum Corp. | 229,700 | 11,549,316 | ||||||
Riviera Resources, Inc. (k) | 25,527 | 324,193 | ||||||
Roan Resources, Inc. (k) | 25,527 | 44,417 | ||||||
Southwestern Energy Co. (k) | 508,010 | 1,605,312 | ||||||
Talos Energy, | 98,625 | 2,371,931 | ||||||
Valero Energy Corp. | 171,200 | 14,656,432 | ||||||
Vanguard Natural Resources, | 12,187 | 119 | ||||||
|
| |||||||
38,945,161 | ||||||||
|
| |||||||
Pharmaceuticals—1.1% |
| |||||||
Allergan PLC | 99,241 | 16,615,921 | ||||||
Bristol-Myers Squibb Co. | 242,700 | 11,006,445 | ||||||
Merck & Co., Inc. | 238,200 | 19,973,070 | ||||||
Teva Pharmaceutical Industries Ltd. ADR (k) | 248,006 | 2,289,095 | ||||||
|
| |||||||
49,884,531 | ||||||||
|
| |||||||
Road & Rail—0.3% |
| |||||||
Union Pacific | 87,500 | 14,797,125 | ||||||
|
| |||||||
Semiconductors—0.0% |
| |||||||
GT Advanced Technologies, Inc. (d)(f)(k) | 537 | — | † | |||||
|
| |||||||
Semiconductors & Semiconductor Equipment—2.5% |
| |||||||
Broadcom, Inc. (g) | 84,700 | 24,381,742 | ||||||
Marvell Technology Group Ltd. | 523,300 | 12,491,171 | ||||||
Micron Technology, Inc. (k) | 491,800 | 18,978,562 |
Shares | Value | |||||||
NVIDIA Corp. | 116,800 | $ | 19,182,064 | |||||
QUALCOMM, Inc. | 185,700 | 14,126,199 | ||||||
Texas Instruments, Inc. | 189,100 | 21,701,116 | ||||||
|
| |||||||
110,860,854 | ||||||||
|
| |||||||
Software—3.5% |
| |||||||
Adobe, Inc. (g)(k) | 129,900 | 38,275,035 | ||||||
Intuit, Inc. (g) | 56,800 | 14,843,544 | ||||||
Microsoft Corp. (g) | 368,100 | 49,310,676 | ||||||
Salesforce.com, Inc. (k) | 140,300 | 21,287,719 | ||||||
ServiceNow, Inc. (k) | 86,200 | 23,667,934 | ||||||
Workday, Inc., Class A (g)(k) | 55,900 | 11,491,922 | ||||||
|
| |||||||
158,876,830 | ||||||||
|
| |||||||
Specialty Retail—0.6% |
| |||||||
Home Depot, | 140,800 | 29,282,176 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—1.3% |
| |||||||
Apple, Inc. (g) | 227,200 | 44,967,424 | ||||||
NetApp, Inc. | 196,300 | 12,111,710 | ||||||
Western Digital Corp. | 1,953 | 92,865 | ||||||
|
| |||||||
57,171,999 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods—0.5% |
| |||||||
NIKE, Inc., | 244,600 | 20,534,170 | ||||||
|
| |||||||
Trading Companies & Distributors—0.1% |
| |||||||
WESCO International, Inc. (k) | 54,455 | 2,758,146 | ||||||
|
| |||||||
Total Common Stock (cost—$1,828,074,060) |
| 1,490,271,545 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Corporate Bonds & Notes—31.0% |
| |||||||
Advertising—0.0% | ||||||||
Mood Media Borrower LLC, |
| |||||||
9.25%, 12/31/23 | $1,164 | 1,699,423 | ||||||
|
| |||||||
Aerospace & Defense—0.6% |
| |||||||
Kratos Defense & Security Solutions, |
| |||||||
6.50%, 11/30/25 | 5,660 | 6,098,650 | ||||||
TransDigm, Inc., |
| |||||||
6.50%, 7/15/24 | 5,000 | 5,081,250 | ||||||
6.50%, 5/15/25 | 11,545 | 11,718,175 | ||||||
Triumph Group, Inc., |
| |||||||
7.75%, 8/15/25 | 5,855 | 5,679,350 | ||||||
|
| |||||||
28,577,425 | ||||||||
|
| |||||||
Auto Components—0.9% |
| |||||||
Adient U.S. LLC (a)(b), |
| |||||||
7.00%, 5/15/26 | 7,210 | 7,426,300 | ||||||
American Axle & Manufacturing, Inc., |
| |||||||
6.625%, 10/15/22 | 4,808 | 4,904,160 | ||||||
Delphi Technologies PLC (a)(b), |
| |||||||
5.00%, 10/1/25 | 8,155 | 7,278,338 | ||||||
Goodyear Tire & Rubber Co., |
| |||||||
5.00%, 5/31/26 | 8,985 | 8,883,919 | ||||||
Panther BF Aggregator 2 L.P. (a)(b), |
| |||||||
8.50%, 5/15/27 | 10,895 | 11,249,087 | ||||||
|
| |||||||
39,741,804 | ||||||||
|
| |||||||
Auto Manufacturers—0.5% |
| |||||||
Navistar International Corp. (a)(b), |
| |||||||
6.625%, 11/1/25 | 10,715 | 11,277,537 | ||||||
Tesla, Inc. (a)(b), |
| |||||||
5.30%, 8/15/25 | 12,230 | 10,777,688 | ||||||
|
| |||||||
22,055,225 | ||||||||
|
| |||||||
Banks—0.1% | ||||||||
CIT Group, Inc., |
| |||||||
6.125%, 3/9/28 | 5,640 | 6,429,600 | ||||||
|
|
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 71 |
Table of Contents
Schedule of Investments
June 30, 2019
Principal | Value | |||||||
Building Materials—0.3% |
| |||||||
Builders FirstSource, Inc. (a)(b), |
| |||||||
5.625%, 9/1/24 | $ | 7,415 | $ | 7,670,224 | ||||
Jeld-Wen, Inc. (a)(b), |
| |||||||
4.875%, 12/15/27 | 4,635 | 4,495,950 | ||||||
|
| |||||||
12,166,174 | ||||||||
|
| |||||||
Chemicals—1.0% | ||||||||
Chemours Co., |
| |||||||
6.625%, 5/15/23 | 7,000 | 7,266,840 | ||||||
7.00%, 5/15/25 | 4,115 | 4,310,463 | ||||||
Kraton Polymers LLC (a)(b), |
| |||||||
7.00%, 4/15/25 | 6,865 | 6,985,137 | ||||||
Olin Corp., |
| |||||||
5.00%, 2/1/30 | 8,130 | 8,069,025 | ||||||
PQ Corp. (a)(b), |
| |||||||
5.75%, 12/15/25 | 3,100 | 3,150,375 | ||||||
Trinseo Materials Operating SCA (a)(b), |
| |||||||
5.375%, 9/1/25 | 5,645 | 5,461,537 | ||||||
Tronox Finance PLC (a)(b), |
| |||||||
5.75%, 10/1/25 | 5,510 | 5,365,363 | ||||||
Tronox, Inc. (a)(b), |
| |||||||
6.50%, 4/15/26 | 5,835 | 5,796,839 | ||||||
|
| |||||||
46,405,579 | ||||||||
|
| |||||||
Commercial Services—1.7% |
| |||||||
Ashtead Capital, Inc. (a)(b), |
| |||||||
5.25%, 8/1/26 | 4,370 | 4,584,527 | ||||||
Cardtronics, Inc. (a)(b), |
| |||||||
5.50%, 5/1/25 | 2,490 | 2,490,000 | ||||||
Cenveo | ||||||||
6.00%, 5/15/24 | 8,116 | 446,380 | ||||||
8.50%, 9/15/22 | 1,520 | 30,400 | ||||||
Gartner, Inc. (a)(b), |
| |||||||
5.125%, 4/1/25 | 7,980 | 8,250,602 | ||||||
Herc Holdings, Inc. (a)(b), |
| |||||||
5.50%, 7/15/27 | 10,005 | 10,092,544 | ||||||
Hertz Corp. (a)(b), |
| |||||||
5.50%, 10/15/24 | 5,215 | 5,007,965 | ||||||
7.625%, 6/1/22 | 5,820 | 6,052,800 | ||||||
Laureate Education, Inc. (a)(b), |
| |||||||
8.25%, 5/1/25 | 8,795 | 9,652,512 | ||||||
Monitronics International, Inc. (c), |
| |||||||
9.125%, 4/1/20 | 6,450 | 419,250 | ||||||
RR Donnelley & Sons Co., |
| |||||||
6.00%, 4/1/24 | 3,195 | 3,195,000 | ||||||
7.00%, 2/15/22 | 5,500 | 5,582,500 | ||||||
United Rentals North America, Inc., |
| |||||||
5.25%, 1/15/30 | 9,260 | 9,537,800 | ||||||
5.50%, 7/15/25 | 8,930 | 9,320,687 | ||||||
|
| |||||||
74,662,967 | ||||||||
|
| |||||||
Computers—0.4% |
| |||||||
Dell International LLC (a)(b), |
| |||||||
7.125%, 6/15/24 | 7,485 | 7,902,135 | ||||||
DynCorp International, Inc., PIK 1.50%, |
| |||||||
11.875%, 11/30/20 | 713 | 724,163 | ||||||
Harland Clarke Holdings Corp. (a)(b), |
| |||||||
9.25%, 3/1/21 | 7,380 | 7,213,950 | ||||||
|
| |||||||
15,840,248 | ||||||||
|
| |||||||
Containers & Packaging—0.2% |
| |||||||
Berry Global Escrow Corp. (a)(b), |
| |||||||
5.625%, 7/15/27 | 9,855 | 10,273,837 | ||||||
|
| |||||||
Distribution/Wholesale—0.4% |
| |||||||
H&E Equipment Services, Inc., |
| |||||||
5.625%, 9/1/25 | 9,845 | 10,162,501 |
Principal Amount (000s) | Value | |||||||
KAR Auction Services, Inc. (a)(b), |
| |||||||
5.125%, 6/1/25 | $ | 6,525 | $ | 6,671,813 | ||||
|
| |||||||
16,834,314 | ||||||||
|
| |||||||
Diversified Financial Services—1.4% |
| |||||||
Ally Financial, Inc., |
| |||||||
5.75%, 11/20/25 | 5,675 | 6,298,682 | ||||||
8.00%, 3/15/20 | 2,995 | 3,103,569 | ||||||
CCF Holdings LLC, PIK 10.75% (a)(b)(c)(d)(f), |
| |||||||
10.75%, 12/15/23 | 10,199 | 3,683,024 | ||||||
Community Choice Financial Issuer LLC |
| |||||||
9.00%, 6/15/23 | 12,000 | 12,015,000 | ||||||
Navient Corp., |
| |||||||
6.75%, 6/15/26 | 10,370 | 10,784,800 | ||||||
7.25%, 9/25/23 | 5,435 | 5,822,244 | ||||||
Springleaf Finance Corp., |
| |||||||
6.625%, 1/15/28 | 9,660 | 10,167,150 | ||||||
8.25%, 10/1/23 | 8,080 | 9,405,120 | ||||||
|
| |||||||
61,279,589 | ||||||||
|
| |||||||
Electric Utilities—0.4% |
| |||||||
Calpine Corp., |
| |||||||
5.75%, 1/15/25 | 6,140 | 6,116,975 | ||||||
NRG Energy, Inc., |
| |||||||
5.75%, 1/15/28 | 9,190 | 9,890,737 | ||||||
Talen Energy Supply LLC, |
| |||||||
6.50%, 6/1/25 | 3,365 | 2,835,013 | ||||||
|
| |||||||
18,842,725 | ||||||||
|
| |||||||
Electrical Equipment—0.1% |
| |||||||
Energizer Holdings, Inc. (a)(b), |
| |||||||
7.75%, 1/15/27 | 3,820 | 4,144,051 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components—0.2% |
| |||||||
Energizer Holdings, Inc. (a)(b), |
| |||||||
5.50%, 6/15/25 | 9,890 | 10,038,350 | ||||||
|
| |||||||
Engineering & Construction—0.6% |
| |||||||
AECOM, |
| |||||||
5.125%, 3/15/27 | 2,125 | 2,220,625 | ||||||
5.875%, 10/15/24 | 8,550 | 9,291,712 | ||||||
TopBuild Corp. (a)(b), |
| |||||||
5.625%, 5/1/26 | 5,965 | 6,129,038 | ||||||
Tutor Perini Corp. (a)(b), |
| |||||||
6.875%, 5/1/25 | 11,480 | 11,020,800 | ||||||
|
| |||||||
28,662,175 | ||||||||
|
| |||||||
Entertainment—1.6% |
| |||||||
AMC Entertainment Holdings, Inc., |
| |||||||
6.125%, 5/15/27 | 12,225 | 10,941,375 | ||||||
Cedar Fair L.P., |
| |||||||
5.375%, 6/1/24 | 5,900 | 6,091,750 | ||||||
5.375%, 4/15/27 | 2,465 | 2,569,763 | ||||||
Eldorado Resorts, Inc., |
| |||||||
6.00%, 9/15/26 | 4,865 | 5,339,338 | ||||||
International Game Technology PLC (a)(b), |
| |||||||
6.25%, 1/15/27 | 5,705 | 6,261,237 | ||||||
6.50%, 2/15/25 | 4,715 | 5,178,013 | ||||||
Lions Gate Capital Holdings LLC (a)(b), |
| |||||||
6.375%, 2/1/24 | 9,370 | 9,873,637 | ||||||
Live Nation Entertainment, Inc. (a)(b), |
| |||||||
5.625%, 3/15/26 | 4,145 | 4,357,431 | ||||||
Scientific Games International, Inc. (a)(b), |
| |||||||
5.00%, 10/15/25 | 10,510 | 10,641,375 | ||||||
Stars Group Holdings BV (a)(b), |
| |||||||
7.00%, 7/15/26 | 9,065 | 9,608,900 | ||||||
|
| |||||||
70,862,819 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—0.3% |
| |||||||
CyrusOne L.P., |
| |||||||
5.00%, 3/15/24 | 5,425 | 5,586,671 | ||||||
5.375%, 3/15/27 | 2,565 | 2,711,686 |
Principal Amount (000s) | Value | |||||||
Equinix, Inc., |
| |||||||
5.375%, 5/15/27 | $ | 4,165 | $ | 4,475,167 | ||||
Uniti Group L.P. (a)(b), |
| |||||||
7.125%, 12/15/24 | 2,500 | 2,256,250 | ||||||
|
| |||||||
15,029,774 | ||||||||
|
| |||||||
Food & Beverage—0.4% |
| |||||||
Albertsons Cos. LLC, |
| |||||||
6.625%, 6/15/24 | 3,115 | 3,243,494 | ||||||
7.50%, 3/15/26 (a)(b) | 5,350 | 5,737,875 | ||||||
Post Holdings, Inc. (a)(b), |
| |||||||
5.75%, 3/1/27 | 9,655 | 10,017,062 | ||||||
|
| |||||||
18,998,431 | ||||||||
|
| |||||||
Food Service—0.2% |
| |||||||
Aramark Services, Inc. (a)(b), |
| |||||||
5.00%, 2/1/28 | 9,360 | 9,652,500 | ||||||
|
| |||||||
Hand/Machine Tools—0.2% |
| |||||||
Colfax Corp. (a)(b), |
| |||||||
6.00%, 2/15/24 | 1,940 | 2,058,825 | ||||||
6.375%, 2/15/26 | 6,655 | 7,145,806 | ||||||
|
| |||||||
9,204,631 | ||||||||
|
| |||||||
Healthcare Providers & Services—0.2% |
| |||||||
WellCare Health Plans, Inc. (a)(b), |
| |||||||
5.375%, 8/15/26 | 6,135 | 6,518,438 | ||||||
|
| |||||||
Healthcare-Products—0.4% |
| |||||||
Hill-Rom Holdings, Inc. (a)(b), |
| |||||||
5.00%, 2/15/25 | 4,255 | 4,403,925 | ||||||
Mallinckrodt International Finance S.A. (a)(b), |
| |||||||
5.75%, 8/1/22 | 10,965 | 9,484,725 | ||||||
Teleflex, Inc., |
| |||||||
5.25%, 6/15/24 | 2,990 | 3,075,028 | ||||||
|
| |||||||
16,963,678 | ||||||||
|
| |||||||
Healthcare-Services—1.7% |
| |||||||
Centene Corp. (a)(b), |
| |||||||
5.375%, 6/1/26 | 6,975 | 7,349,906 | ||||||
Charles River Laboratories International, Inc. (a)(b), |
| |||||||
5.50%, 4/1/26 | 5,340 | 5,632,632 | ||||||
Community Health Systems, Inc., |
| |||||||
6.875%, 2/1/22 | 2,500 | 1,700,000 | ||||||
7.125%, 7/15/20 | 4,595 | 4,399,712 | ||||||
8.00%, 11/15/19 | 1,705 | 1,680,491 | ||||||
Community Health Systems, Inc., |
| |||||||
6.25%, 3/31/23 | 1,985 | 1,918,006 | ||||||
DaVita, Inc., |
| |||||||
5.125%, 7/15/24 | 8,620 | 8,644,136 | ||||||
Encompass Health Corp., |
| |||||||
5.75%, 11/1/24 | 7,650 | 7,818,682 | ||||||
HCA, Inc., |
| |||||||
5.375%, 9/1/26 | 2,965 | 3,202,200 | ||||||
5.625%, 9/1/28 | 2,420 | 2,625,700 | ||||||
7.50%, 2/15/22 | 8,185 | 9,044,425 | ||||||
Tenet Healthcare Corp., |
| |||||||
6.25%, 2/1/27 (a)(b) | 4,110 | 4,238,438 | ||||||
7.00%, 8/1/25 | 5,000 | 5,000,000 | ||||||
8.125%, 4/1/22 | 10,865 | 11,448,994 | ||||||
|
| |||||||
74,703,322 | ||||||||
|
| |||||||
Home Builders—0.3% |
| |||||||
Beazer Homes USA, Inc., |
| |||||||
5.875%, 10/15/27 | 1,885 | 1,644,097 | ||||||
Brookfield Residential Properties, Inc. (a)(b), |
| |||||||
6.50%, 12/15/20 | 6,050 | 6,065,125 | ||||||
KB Home, |
| |||||||
8.00%, 3/15/20 | 3,905 | 4,042,456 | ||||||
Lennar Corp., |
| |||||||
5.875%, 11/15/24 | 2,665 | 2,931,500 | ||||||
|
| |||||||
14,683,178 | ||||||||
|
|
72 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Principal Amount (000s) | Value | |||||||
Household Products/Wares—0.1% |
| |||||||
Spectrum Brands, Inc., |
| |||||||
5.75%, 7/15/25 | $ | 4,725 | $ | 4,931,719 | ||||
|
| |||||||
Insurance—0.2% |
| |||||||
CNO Financial Group, Inc., |
| |||||||
5.25%, 5/30/25 | 3,730 | 4,030,731 | ||||||
Prudential Financial, Inc., |
| |||||||
5.70%, 9/15/48 | 4,550 | 4,886,658 | ||||||
|
| |||||||
8,917,389 | ||||||||
|
| |||||||
Internet—0.9% |
| |||||||
Go Daddy Operating Co. LLC (a)(b), |
| |||||||
5.25%, 12/1/27 | 8,500 | 8,829,375 | ||||||
Match Group, Inc. (a)(b), |
| |||||||
5.00%, 12/15/27 | 8,485 | 8,929,614 | ||||||
Netflix, Inc. (a)(b), |
| |||||||
5.375%, 11/15/29 | 10,465 | 11,141,981 | ||||||
Symantec Corp. (a)(b), |
| |||||||
5.00%, 4/15/25 | 5,390 | 5,527,894 | ||||||
Zayo Group LLC (a)(b), |
| |||||||
5.75%, 1/15/27 | 7,400 | 7,548,000 | ||||||
|
| |||||||
41,976,864 | ||||||||
|
| |||||||
Iron/Steel—0.2% |
| |||||||
AK Steel Corp., |
| |||||||
7.00%, 3/15/27 | 3,580 | 2,899,800 | ||||||
United States Steel Corp., |
| |||||||
6.875%, 8/15/25 | 8,595 | 8,122,275 | ||||||
|
| |||||||
11,022,075 | ||||||||
|
| |||||||
Lodging—0.7% |
| |||||||
Hilton Domestic Operating Co., Inc., |
| |||||||
5.125%, 5/1/26 | 6,795 | 7,109,269 | ||||||
MGM Resorts International, |
| |||||||
5.50%, 4/15/27 | 7,270 | 7,642,587 | ||||||
Wyndham Hotels & Resorts, Inc. (a)(b), |
| |||||||
5.375%, 4/15/26 | 7,110 | 7,474,388 | ||||||
Wynn Las Vegas LLC (a)(b), |
| |||||||
5.50%, 3/1/25 | 7,275 | 7,531,807 | ||||||
|
| |||||||
29,758,051 | ||||||||
|
| |||||||
Machinery-Construction & Mining—0.2% |
| |||||||
Terex Corp. (a)(b), |
| |||||||
5.625%, 2/1/25 | 7,570 | 7,674,088 | ||||||
|
| |||||||
Machinery-Diversified—0.1% |
| |||||||
Mueller Water Products, Inc. (a)(b), |
| |||||||
5.50%, 6/15/26 | 3,840 | 3,974,400 | ||||||
Tennant Co., |
| |||||||
5.625%, 5/1/25 | 1,395 | 1,447,313 | ||||||
|
| |||||||
5,421,713 | ||||||||
|
| |||||||
Media—2.7% |
| |||||||
Cablevision Systems Corp., |
| |||||||
8.00%, 4/15/20 | 6,250 | 6,470,813 | ||||||
CCO Holdings LLC (a)(b), |
| |||||||
5.125%, 5/1/27 | 1,625 | 1,686,523 | ||||||
5.50%, 5/1/26 | 6,460 | 6,776,863 | ||||||
Clear Channel Worldwide Holdings, |
| |||||||
9.25%, 2/15/24 | 10,230 | 11,125,125 | ||||||
CSC Holdings LLC (a)(b), |
| |||||||
7.50%, 4/1/28 | 9,860 | 10,873,608 | ||||||
7.75%, 7/15/25 | 6,160 | 6,679,904 | ||||||
10.875%, 10/15/25 | 4,145 | 4,761,589 | ||||||
DISH DBS Corp., |
| |||||||
5.875%, 7/15/22 | 4,880 | 4,971,500 | ||||||
6.75%, 6/1/21 | 8,250 | 8,683,125 | ||||||
Gray Television, Inc. (a)(b), |
| |||||||
5.875%, 7/15/26 | 10,065 | 10,467,600 | ||||||
LiveStyle, Inc. |
| |||||||
9.625%, 2/1/19 | 7,628 | 8 |
Principal Amount (000s) | Value | |||||||
Meredith Corp., |
| |||||||
6.875%, 2/1/26 | $ | 9,225 | $ | 9,835,049 | ||||
Nexstar Broadcasting, Inc., |
| |||||||
5.625%, 8/1/24 (a)(b) | 6,765 | 7,025,182 | ||||||
5.875%, 11/15/22 | 4,615 | 4,730,375 | ||||||
Nexstar Escrow, Inc. (a)(b), |
| |||||||
5.625%, 7/15/27 | 10,085 | 10,362,337 | ||||||
Sirius XM Radio, Inc. (a)(b), |
| |||||||
5.00%, 8/1/27 | 9,715 | 9,920,472 | ||||||
Virgin Media Secured Finance PLC (a)(b), |
| |||||||
5.50%, 5/15/29 | 5,725 | 5,818,031 | ||||||
|
| |||||||
120,188,104 | ||||||||
|
| |||||||
Metal Fabricate/Hardware—0.2% |
| |||||||
Park-Ohio Industries, Inc., |
| |||||||
6.625%, 4/15/27 | 7,995 | 8,034,975 | ||||||
|
| |||||||
Mining—0.6% |
| |||||||
Alcoa Nederland Holding BV (a)(b), |
| |||||||
6.75%, 9/30/24 | 8,070 | 8,564,287 | ||||||
Constellium NV (a)(b), |
| |||||||
6.625%, 3/1/25 | 9,605 | 9,989,200 | ||||||
Hudbay Minerals, Inc. (a)(b), |
| |||||||
7.625%, 1/15/25 | 4,965 | 5,151,188 | ||||||
Joseph T. Ryerson & Son, Inc. (a)(b), |
| |||||||
11.00%, 5/15/22 | 1,500 | 1,586,719 | ||||||
|
| |||||||
25,291,394 | ||||||||
|
| |||||||
Miscellaneous Manufacturing—0.2% |
| |||||||
Koppers, Inc. (a)(b), |
| |||||||
6.00%, 2/15/25 | 7,345 | 6,922,663 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—2.8% |
| |||||||
AmeriGas Partners L.P., |
| |||||||
5.875%, 8/20/26 | 5,780 | 6,155,700 | ||||||
Callon Petroleum Co., |
| |||||||
6.125%, 10/1/24 | 4,820 | 4,892,300 | ||||||
Calumet Specialty Products Partners L.P., |
| |||||||
6.50%, 4/15/21 | 6,225 | 6,225,000 | ||||||
Carrizo Oil & Gas, Inc., |
| |||||||
6.25%, 4/15/23 | 9,725 | 9,421,094 | ||||||
Chesapeake Energy Corp., |
| |||||||
8.00%, 1/15/25 | 7,730 | 7,169,575 | ||||||
8.00%, 3/15/26 (a)(b) | 6,301 | 5,749,662 | ||||||
CNX Resources Corp., |
| |||||||
5.875%, 4/15/22 | 3,603 | 3,512,925 | ||||||
Cobalt International Energy, Inc. (b)(c), |
| |||||||
7.75%, 12/1/23 | 9,216 | 645,120 | ||||||
CVR Refining LLC, |
| |||||||
6.50%, 11/1/22 | 5,550 | 5,665,162 | ||||||
Ensco Rowan PLC, |
| |||||||
5.20%, 3/15/25 | 1,295 | 956,681 | ||||||
7.75%, 2/1/26 | 6,640 | 4,980,000 | ||||||
EP Energy LLC, |
| |||||||
9.375%, 5/1/20 | 8,765 | 1,007,975 | ||||||
Nabors Industries, Inc., |
| |||||||
5.75%, 2/1/25 | 1,910 | 1,702,288 | ||||||
Noble Holding International Ltd., |
| |||||||
7.75%, 1/15/24 | 6,955 | 5,337,963 | ||||||
Oasis Petroleum, Inc., |
| |||||||
6.875%, 3/15/22 | 10,145 | 10,113,297 | ||||||
Range Resources Corp., |
| |||||||
4.875%, 5/15/25 | 8,965 | 7,911,612 | ||||||
Sable Permian Resources Land LLC (a)(b)(c), |
| |||||||
7.375%, 11/1/21 | 5,000 | 500,000 | ||||||
Sanchez Energy Corp., |
| |||||||
6.125%, 1/15/23 | 6,240 | 312,000 | ||||||
SM Energy Co., |
| |||||||
6.625%, 1/15/27 | 9,360 | 8,704,800 | ||||||
Sunoco L.P., |
| |||||||
5.50%, 2/15/26 | 4,605 | 4,806,469 | ||||||
5.875%, 3/15/28 | 4,830 | 5,017,163 | ||||||
Talos Production LLC, |
| |||||||
11.00%, 4/3/22 | 1,168 | 1,236,548 |
Principal Amount (000s) | Value | |||||||
Transocean, Inc. (a)(b), |
| |||||||
7.50%, 1/15/26 | $ | 12,010 | $ | 11,499,575 | ||||
USA Compression Partners L.P. (a)(b), |
| |||||||
6.875%, 9/1/27 | 10,045 | 10,598,580 | ||||||
Weatherford International Ltd. (c), |
| |||||||
8.25%, 6/15/23 | 2,170 | 1,144,675 | ||||||
|
| |||||||
125,266,164 | ||||||||
|
| |||||||
Paper & Forest Products—0.2% |
| |||||||
Mercer International, Inc., |
| |||||||
5.50%, 1/15/26 | 5,370 | 5,363,287 | ||||||
7.375%, 1/15/25 (a)(b) | 3,825 | 4,073,625 | ||||||
|
| |||||||
9,436,912 | ||||||||
|
| |||||||
Pharmaceuticals—0.8% |
| |||||||
Bausch Health Americas, Inc. (a)(b), |
| |||||||
8.50%, 1/31/27 | 6,635 | 7,311,903 | ||||||
Bausch Health Cos., Inc. (a)(b), |
| |||||||
6.125%, 4/15/25 | 7,220 | 7,382,450 | ||||||
7.25%, 5/30/29 | 7,305 | 7,615,462 | ||||||
Endo Finance LLC (a)(b), |
| |||||||
5.375%, 1/15/23 | 10,730 | 7,779,250 | ||||||
Horizon Pharma USA, Inc., |
| |||||||
6.625%, 5/1/23 | 3,844 | 3,961,723 | ||||||
8.75%, 11/1/24 (a)(b) | 1,370 | 1,476,586 | ||||||
|
| |||||||
35,527,374 | ||||||||
|
| |||||||
Pipelines—1.0% |
| |||||||
Cheniere Energy Partners L.P. (a)(b), |
| |||||||
5.625%, 10/1/26 | 8,410 | 8,893,575 | ||||||
Crestwood Midstream Partners L.P., |
| |||||||
5.75%, 4/1/25 | 8,310 | 8,455,425 | ||||||
DCP Midstream Operating L.P., |
| |||||||
5.125%, 5/15/29 | 9,570 | 9,845,137 | ||||||
NGL Energy Partners L.P. (a)(b), |
| |||||||
7.50%, 4/15/26 | 9,405 | 9,828,225 | ||||||
Targa Resources Partners L.P. (a)(b), |
| |||||||
6.50%, 7/15/27 | 4,170 | 4,555,725 | ||||||
6.875%, 1/15/29 | 4,320 | 4,795,200 | ||||||
|
| |||||||
46,373,287 | ||||||||
|
| |||||||
Real Estate—0.5% |
| |||||||
Iron Mountain, Inc. (a)(b), |
| |||||||
4.875%, 9/15/27 | 8,150 | 8,119,437 | ||||||
Kennedy-Wilson, Inc., |
| |||||||
5.875%, 4/1/24 | 10,198 | 10,452,950 | ||||||
Uniti Group L.P., |
| |||||||
8.25%, 10/15/23 | 6,445 | 6,009,963 | ||||||
|
| |||||||
24,582,350 | ||||||||
|
| |||||||
Retail—1.1% |
| |||||||
1011778 BC ULC (a)(b), |
| |||||||
5.00%, 10/15/25 | 10,990 | 11,103,197 | ||||||
Beacon Roofing Supply, Inc. (a)(b), |
| |||||||
4.875%, 11/1/25 | 7,725 | 7,676,719 | ||||||
Conn’s, Inc., | ||||||||
7.25%, 7/15/22 | 12,570 | 12,632,850 | ||||||
L Brands, Inc., | ||||||||
6.875%, 11/1/35 | 2,655 | 2,374,526 | ||||||
Men’s Wearhouse, Inc., | ||||||||
7.00%, 7/1/22 | 3,718 | 3,597,165 | ||||||
Neiman Marcus Group Ltd. LLC (a)(b), |
| |||||||
8.00%, 10/15/21 | 6,810 | 4,732,950 | ||||||
Party City Holdings, Inc. (a)(b), |
| |||||||
6.625%, 8/1/26 | 9,755 | 9,486,737 | ||||||
|
| |||||||
51,604,144 | ||||||||
|
| |||||||
Semiconductors—0.4% |
| |||||||
Advanced Micro Devices, Inc., |
| |||||||
7.50%, 8/15/22 | 2,670 | 3,023,775 | ||||||
Amkor Technology, Inc. (a)(b), |
| |||||||
6.625%, 9/15/27 | 11,410 | 11,396,879 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 73 |
Table of Contents
Schedule of Investments
June 30, 2019
Principal Amount (000s) | Value | |||||||
Broadcom Corp., | ||||||||
3.875%, 1/15/27 | $ | 5,195 | $ | 5,097,083 | ||||
|
| |||||||
19,517,737 | ||||||||
|
| |||||||
Software—1.0% |
| |||||||
Camelot Finance S.A. (a)(b), |
| |||||||
7.875%, 10/15/24 | 9,045 | 9,531,169 | ||||||
IQVIA, Inc. (a)(b), | ||||||||
5.00%, 5/15/27 | 10,210 | 10,567,350 | ||||||
j2 Cloud Services LLC (a)(b), |
| |||||||
6.00%, 7/15/25 | 9,810 | 10,312,762 | ||||||
MSCI, Inc. (a)(b), | ||||||||
5.375%, 5/15/27 | 2,885 | 3,094,163 | ||||||
Rackspace Hosting, Inc. (a)(b), |
| |||||||
8.625%, 11/15/24 | 3,120 | 2,878,200 | ||||||
SS&C Technologies, Inc. (a)(b), |
| |||||||
5.50%, 9/30/27 | 10,230 | 10,632,806 | ||||||
|
| |||||||
47,016,450 | ||||||||
|
| |||||||
Telecommunications—2.9% |
| |||||||
CenturyLink, Inc., | ||||||||
6.75%, 12/1/23, Ser. W | 2,000 | 2,162,500 | ||||||
7.50%, 4/1/24, Ser. Y | 9,535 | 10,571,931 | ||||||
Cincinnati Bell, | ||||||||
7.00%, 7/15/24 | 11,630 | 10,321,625 | ||||||
CommScope Technologies LLC (a)(b), |
| |||||||
5.00%, 3/15/27 | 4,460 | 3,902,500 | ||||||
6.00%, 6/15/25 | 5,940 | 5,596,727 | ||||||
Consolidated Communications, Inc., |
| |||||||
6.50%, 10/1/22 | 9,435 | 8,842,388 | ||||||
Frontier Communications Corp., |
| |||||||
10.50%, 9/15/22 | 9,315 | 6,357,488 | ||||||
GTT Communications, Inc. (a)(b), |
| |||||||
7.875%, 12/31/24 | 10,045 | 8,262,012 | ||||||
Hughes Satellite Systems Corp., |
| |||||||
6.625%, 8/1/26 | 9,080 | 9,568,050 | ||||||
7.625%, 6/15/21 | 7,440 | 7,979,400 | ||||||
Intelsat Connect Finance S.A. (a)(b), |
| |||||||
9.50%, 2/15/23 | 3,195 | 2,843,550 | ||||||
Intelsat Jackson Holdings S.A., |
| |||||||
5.50%, 8/1/23 | 10,370 | 9,514,475 | ||||||
9.75%, 7/15/25 (a)(b) | 1,500 | 1,545,000 | ||||||
Level 3 Financing, Inc., | ||||||||
5.375%, 5/1/25 | 8,420 | 8,714,700 | ||||||
Sprint Capital Corp., | ||||||||
6.875%, 11/15/28 | 6,890 | 7,148,375 | ||||||
Sprint Communications, Inc., |
| |||||||
11.50%, 11/15/21 | 7,890 | 9,152,400 | ||||||
Sprint Corp., | ||||||||
7.125%, 6/15/24 | 2,250 | 2,391,300 | ||||||
7.625%, 3/1/26 | 6,525 | 6,971,962 | ||||||
T-Mobile USA, Inc., | ||||||||
4.75%, 2/1/28 | 3,190 | 3,298,620 | ||||||
6.50%, 1/15/26 | 3,760 | 4,074,186 | ||||||
Windstream Services LLC |
| |||||||
6.375%, 8/1/23 | 7,464 | 2,183,220 | ||||||
|
| |||||||
131,402,409 | ||||||||
|
| |||||||
Transportation—0.1% |
| |||||||
XPO Logistics, Inc. (a)(b), |
| |||||||
6.125%, 9/1/23 | 2,705 | 2,809,819 | ||||||
6.50%, 6/15/22 | 3,184 | 3,255,640 | ||||||
|
| |||||||
6,065,459 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes (cost—$1,456,911,107) |
| 1,401,201,578 | ||||||
|
| |||||||
Convertible Bonds & Notes—26.7% |
| |||||||
Aerospace & Defense—0.2% |
| |||||||
Aerojet Rocketdyne Holdings, Inc., |
| |||||||
2.25%, 12/15/23 | 1,255 | 2,235,140 |
Principal Amount (000s) | Value | |||||||
Arconic, Inc., | ||||||||
1.625%, 10/15/19 | $ | 4,715 | $ | 4,774,766 | ||||
|
| |||||||
7,009,906 | ||||||||
|
| |||||||
Apparel & Textiles—0.0% |
| |||||||
Iconix Brand Group, Inc., |
| |||||||
5.75%, 8/15/23 | 4,185 | 1,088,100 | ||||||
|
| |||||||
Auto Components—0.1% |
| |||||||
Meritor, Inc., | ||||||||
3.25%, 10/15/37 | 6,405 | 6,691,774 | ||||||
|
| |||||||
Auto Manufacturers—0.4% |
| |||||||
Tesla, Inc., | ||||||||
1.25%, 3/1/21 | 9,155 | 8,697,250 | ||||||
2.375%, 3/15/22 | 7,520 | 7,427,060 | ||||||
|
| |||||||
16,124,310 | ||||||||
|
| |||||||
Banks—0.4% |
| |||||||
BofA Finance LLC, | ||||||||
0.25%, 5/1/23 | 1,000 | 1,004,375 | ||||||
Deutsche Bank AG (f), | ||||||||
1.00%, 5/1/23 | 17,460 | 17,201,932 | ||||||
|
| |||||||
18,206,307 | ||||||||
|
| |||||||
Biotechnology—2.1% |
| |||||||
Aegerion Pharmaceuticals, Inc. (c), |
| |||||||
2.00%, 8/15/19 | 5,270 | 3,771,344 | ||||||
Alder Biopharmaceuticals, Inc., |
| |||||||
2.50%, 2/1/25 | 1,785 | 1,667,859 | ||||||
AMAG Pharmaceuticals, Inc., |
| |||||||
3.25%, 6/1/22 | 2,025 | 1,625,832 | ||||||
BioMarin Pharmaceutical, Inc., |
| |||||||
0.599%, 8/1/24 | 4,860 | 5,057,438 | ||||||
1.50%, 10/15/20 | 6,830 | 7,675,213 | ||||||
Exact Sciences Corp., |
| |||||||
0.375%, 3/15/27 | 12,385 | 15,683,759 | ||||||
Illumina, Inc. (a)(b), |
| |||||||
zero coupon, 8/15/23 | 21,955 | 25,444,732 | ||||||
Insmed, Inc., | ||||||||
1.75%, 1/15/25 | 6,210 | 6,053,850 | ||||||
Intercept Pharmaceuticals, Inc., |
| |||||||
3.25%, 7/1/23 | 8,585 | 7,697,447 | ||||||
Ligand Pharmaceuticals, Inc., |
| |||||||
0.75%, 5/15/23 | 10,535 | 9,121,853 | ||||||
Medicines Co., | ||||||||
2.50%, 1/15/22 | 1,140 | 1,374,789 | ||||||
2.75%, 7/15/23 | 5,075 | 5,101,282 | ||||||
3.50%, 1/15/24 (a)(b) | 130 | 212,921 | ||||||
PTC Therapeutics, Inc., |
| |||||||
3.00%, 8/15/22 | 460 | 510,408 | ||||||
Radius Health, Inc., | ||||||||
3.00%, 9/1/24 | 3,660 | 3,321,078 | ||||||
Verastem, Inc., | ||||||||
5.00%, 11/1/48 | 5,910 | 3,117,525 | ||||||
|
| |||||||
97,437,330 | ||||||||
|
| |||||||
Building Materials—0.0% |
| |||||||
Patrick Industries, Inc., |
| |||||||
1.00%, 2/1/23 | 1,015 | 925,374 | ||||||
|
| |||||||
Commercial Services—1.3% |
| |||||||
Cardtronics, Inc., |
| |||||||
1.00%, 12/1/20 | 3,000 | 2,919,766 | ||||||
Chegg, Inc. (a)(b), | ||||||||
0.125%, 3/15/25 | 12,850 | 12,960,657 | ||||||
Euronet Worldwide, Inc. (a)(b), |
| |||||||
0.75%, 3/15/49 | 6,875 | 8,361,170 | ||||||
Huron Consulting Group, Inc., |
| |||||||
1.25%, 10/1/19 | 7,480 | 7,445,247 | ||||||
Macquarie Infrastructure Corp., |
| |||||||
2.00%, 10/1/23 | 5,410 | 4,781,178 | ||||||
2.875%, 7/15/19 | 5,500 | 5,502,233 |
Principal Amount (000s) | Value | |||||||
Square, Inc., | ||||||||
0.50%, 5/15/23 | $ | 13,955 | $ | 16,722,927 | ||||
|
| |||||||
58,693,178 | ||||||||
|
| |||||||
Computers—0.8% |
| |||||||
Lumentum Holdings, Inc., |
| |||||||
0.25%, 3/15/24 | 6,920 | 8,159,973 | ||||||
Nutanix, Inc., |
| |||||||
zero coupon, 1/15/23 | 6,245 | 5,846,439 | ||||||
Pure Storage, Inc., |
| |||||||
0.125%, 4/15/23 | 8,420 | 8,104,250 | ||||||
Western Digital Corp. (a)(b), |
| |||||||
1.50%, 2/1/24 | 13,400 | 12,067,112 | ||||||
|
| |||||||
34,177,774 | ||||||||
|
| |||||||
Diversified Financial Services—0.6% |
| |||||||
Encore Capital Group, Inc., |
| |||||||
2.875%, 3/15/21 | 6,960 | 6,616,373 | ||||||
3.00%, 7/1/20 | 1,215 | 1,220,871 | ||||||
JPMorgan Chase Financial Co. LLC (a)(b), |
| |||||||
0.25%, 5/1/23 | 10,090 | 10,247,404 | ||||||
LendingTree, Inc., |
| |||||||
0.625%, 6/1/22 | 3,580 | 7,475,431 | ||||||
|
| |||||||
25,560,079 | ||||||||
|
| |||||||
Electric Utilities—0.2% |
| |||||||
NRG Energy, Inc., |
| |||||||
2.75%, 6/1/48 | 9,990 | 10,695,105 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components—0.0% |
| |||||||
SunPower Corp., |
| |||||||
4.00%, 1/15/23 | 1,360 | 1,212,245 | ||||||
|
| |||||||
Electronics—0.3% |
| |||||||
Fortive Corp. (a)(b), |
| |||||||
0.875%, 2/15/22 | 6,360 | 6,592,383 | ||||||
II-VI, Inc., |
| |||||||
0.25%, 9/1/22 | 2,790 | 2,945,194 | ||||||
OSI Systems, Inc., |
| |||||||
1.25%, 9/1/22 | 2,145 | 2,547,597 | ||||||
Vishay Intertechnology, Inc. (a)(b), |
| |||||||
2.25%, 6/15/25 | 1,355 | 1,249,988 | ||||||
|
| |||||||
13,335,162 | ||||||||
|
| |||||||
Energy-Alternate Sources—0.3% |
| |||||||
NextEra Energy Partners L.P. (a)(b), |
| |||||||
1.50%, 9/15/20 | 4,800 | 4,860,686 | ||||||
SunEdison, Inc. (a)(b)(c), |
| |||||||
0.25%, 1/15/20 | 9,565 | 215,213 | ||||||
2.625%, 6/1/23 | 11,270 | 253,575 | ||||||
3.375%, 6/1/25 | 4,565 | 102,712 | ||||||
Tesla Energy Operations, Inc., |
| |||||||
1.625%, 11/1/19 | 10,475 | 10,126,424 | ||||||
|
| |||||||
15,558,610 | ||||||||
|
| |||||||
Engineering & Construction—0.3% |
| |||||||
Dycom Industries, Inc., |
| |||||||
0.75%, 9/15/21 | 6,890 | 6,754,586 | ||||||
KBR, Inc. (a)(b), | ||||||||
2.50%, 11/1/23 | 5,270 | 6,135,340 | ||||||
|
| |||||||
12,889,926 | ||||||||
|
| |||||||
Entertainment—0.3% |
| |||||||
Live Nation Entertainment, Inc., |
| |||||||
2.50%, 3/15/23 | 8,605 | 10,206,895 | ||||||
Marriott Vacations Worldwide Corp., |
| |||||||
1.50%, 9/15/22 | 3,230 | 3,134,903 | ||||||
|
| |||||||
13,341,798 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—0.2% |
| |||||||
Extra Space Storage L.P. (a)(b), |
| |||||||
3.125%, 10/1/35 | 6,130 | 7,286,933 | ||||||
|
|
74 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Principal Amount (000s) | Value | |||||||
Healthcare-Products—0.8% |
| |||||||
CONMED Corp. (a)(b), |
| |||||||
2.625%, 2/1/24 | $ | 3,120 | $ | 3,602,308 | ||||
Insulet Corp., |
| |||||||
1.375%, 11/15/24 | 8,400 | 11,965,021 | ||||||
NuVasive, Inc., |
| |||||||
2.25%, 3/15/21 | 8,065 | 9,178,978 | ||||||
Wright Medical Group, Inc., |
| |||||||
1.625%, 6/15/23 | 10,863 | 11,969,668 | ||||||
|
| |||||||
36,715,975 | ||||||||
|
| |||||||
Healthcare-Services—0.4% |
| |||||||
Anthem, Inc., |
| |||||||
2.75%, 10/15/42 | 1,985 | 7,756,541 | ||||||
Teladoc Health, Inc., |
| |||||||
1.375%, 5/15/25 | 6,740 | 10,028,742 | ||||||
|
| |||||||
17,785,283 | ||||||||
|
| |||||||
Insurance—0.2% |
| |||||||
AXA S.A. (a)(b), |
| |||||||
7.25%, 5/15/21 | 6,855 | 7,053,624 | ||||||
|
| |||||||
Internet—4.0% |
| |||||||
Boingo Wireless, Inc. (a)(b), |
| |||||||
1.00%, 10/1/23 | 2,460 | 2,111,897 | ||||||
Booking Holdings, Inc., |
| |||||||
0.35%, 6/15/20 | 5,325 | 7,679,904 | ||||||
0.90%, 9/15/21 | 12,035 | 13,796,895 | ||||||
Ctrip.com International Ltd., |
| |||||||
1.00%, 7/1/20 | 3,500 | 3,458,987 | ||||||
1.25%, 9/15/22 | 10,635 | 10,591,568 | ||||||
Etsy, Inc., |
| |||||||
zero coupon, 3/1/23 | 2,925 | 5,302,882 | ||||||
FireEye, Inc., |
| |||||||
0.875%, 6/1/24 | 7,485 | 7,333,400 | ||||||
FireEye, Inc., Ser. B, |
| |||||||
1.625%, 6/1/35 | 4,650 | 4,394,250 | ||||||
IAC FinanceCo 2, Inc. (a)(b), |
| |||||||
0.875%, 6/15/26 | 7,385 | 7,456,006 | ||||||
IAC FinanceCo 3, Inc. (a)(b), |
| |||||||
2.00%, 1/15/30 | 6,810 | 7,024,256 | ||||||
Liberty Expedia Holdings, Inc. (a)(b), |
| |||||||
1.00%, 6/30/47 | 5,580 | 5,584,355 | ||||||
MercadoLibre, Inc. (a)(b), |
| |||||||
2.00%, 8/15/28 | 4,765 | 7,352,068 | ||||||
Okta, Inc., |
| |||||||
0.25%, 2/15/23 | 2,830 | 7,339,920 | ||||||
Palo Alto Networks, Inc. (a)(b), |
| |||||||
0.75%, 7/1/23 | 17,035 | 18,032,792 | ||||||
Q2 Holdings, Inc. (a)(b), |
| |||||||
0.75%, 6/1/26 | 4,395 | 4,748,973 | ||||||
RingCentral, Inc., |
| |||||||
zero coupon, 3/15/23 | 4,955 | 7,452,180 | ||||||
Twitter, Inc., |
| |||||||
0.25%, 6/15/24 | 11,865 | 11,614,169 | ||||||
1.00%, 9/15/21 | 9,690 | 9,298,459 | ||||||
Wayfair, Inc. (a)(b), |
| |||||||
1.125%, 11/1/24 | 4,080 | 5,936,928 | ||||||
Weibo Corp., |
| |||||||
1.25%, 11/15/22 | 6,415 | 6,088,011 | ||||||
Wix.com Ltd. (a)(b), |
| |||||||
zero coupon, 7/1/23 | 5,845 | 7,160,125 | ||||||
Zendesk, Inc., |
| |||||||
0.25%, 3/15/23 | 7,065 | 10,846,131 | ||||||
Zillow Group, Inc., |
| |||||||
1.50%, 7/1/23 | 4,865 | 4,800,338 | ||||||
2.00%, 12/1/21 | 6,000 | 6,804,826 | ||||||
|
| |||||||
182,209,320 | ||||||||
|
| |||||||
Investment Companies—0.1% |
| |||||||
Prospect Capital Corp., |
| |||||||
6.375%, 3/1/25 | 5,000 | 5,131,500 |
Principal Amount (000s) | Value | |||||||
Lodging—0.4% | ||||||||
Caesars Entertainment Corp., |
| |||||||
5.00%, 10/1/24 | $ | 10,220 | $ | 17,518,876 | ||||
|
| |||||||
Machinery-Diversified—0.1% |
| |||||||
Chart Industries, Inc. (a)(b), |
| |||||||
1.00%, 11/15/24 | 1,800 | 2,568,572 | ||||||
|
| |||||||
Media—1.5% | ||||||||
DISH Network Corp., |
| |||||||
2.375%, 3/15/24 | 13,010 | 12,066,976 | ||||||
3.375%, 8/15/26 | 13,620 | 13,275,197 | ||||||
Liberty Interactive LLC (a)(b), |
| |||||||
1.75%, 9/30/46 | 8,700 | 10,908,375 | ||||||
Liberty Media Corp-Liberty Formula One, |
| |||||||
1.00%, 1/30/23 | 6,425 | 7,579,966 | ||||||
Liberty Media Corp., |
| |||||||
1.375%, 10/15/23 | 7,875 | 8,858,946 | ||||||
2.125%, 3/31/48 (a)(b) | 7,620 | 7,434,263 | ||||||
2.25%, 9/30/46 | 2,580 | 1,391,736 | ||||||
World Wrestling Entertainment, Inc., |
| |||||||
3.375%, 12/15/23 | 1,510 | 4,515,844 | ||||||
|
| |||||||
66,031,303 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels—1.1% |
| |||||||
Bristow Group, Inc. (c), |
| |||||||
4.50%, 6/1/23 | 1,625 | 357,500 | ||||||
Chesapeake Energy Corp., |
| |||||||
5.50%, 9/15/26 | 14,705 | 11,773,977 | ||||||
Ensco Jersey Finance Ltd., |
| |||||||
3.00%, 1/31/24 | 9,245 | 7,232,615 | ||||||
Helix Energy Solutions Group, Inc., |
| |||||||
4.25%, 5/1/22 | 2,510 | 2,531,473 | ||||||
Nabors Industries, Inc., |
| |||||||
0.75%, 1/15/24 | 8,145 | 5,850,696 | ||||||
Oasis Petroleum, Inc., |
| |||||||
2.625%, 9/15/23 | 9,190 | 8,430,552 | ||||||
Oil States International, Inc., |
| |||||||
1.50%, 2/15/23 | 2,450 | 2,191,299 | ||||||
Transocean, Inc., |
| |||||||
0.50%, 1/30/23 | 7,950 | 7,894,537 | ||||||
Weatherford International Ltd., |
| |||||||
5.875%, 7/1/21 | 6,780 | 3,508,650 | ||||||
|
| |||||||
49,771,299 | ||||||||
|
| |||||||
Pharmaceuticals—1.9% |
| |||||||
Clovis Oncology, Inc., |
| |||||||
1.25%, 5/1/25 | 4,440 | 2,784,446 | ||||||
2.50%, 9/15/21 | 4,020 | 3,585,473 | ||||||
Dermira, Inc., |
| |||||||
3.00%, 5/15/22 | 3,065 | 2,652,078 | ||||||
DexCom, Inc. (a)(b), |
| |||||||
0.75%, 12/1/23 | 13,600 | 15,985,471 | ||||||
Flexion Therapeutics, Inc., |
| |||||||
3.375%, 5/1/24 | 2,670 | 2,331,244 | ||||||
Herbalife Nutrition Ltd., |
| |||||||
2.625%, 3/15/24 | 9,465 | 9,205,160 | ||||||
Horizon Pharma Investment Ltd., |
| |||||||
2.50%, 3/15/22 | 2,170 | 2,412,439 | ||||||
Jazz Investments I Ltd., |
| |||||||
1.50%, 8/15/24 | 6,195 | 6,125,975 | ||||||
1.875%, 8/15/21 | 9,950 | 10,163,219 | ||||||
Neurocrine Biosciences, Inc., |
| |||||||
2.25%, 5/15/24 | 6,250 | 8,231,230 | ||||||
Sarepta Therapeutics, Inc., |
| |||||||
1.50%, 11/15/24 | 3,205 | 7,142,165 | ||||||
Supernus Pharmaceuticals, Inc., |
| |||||||
0.625%, 4/1/23 | 6,355 | 6,233,307 | ||||||
Teva Pharmaceutical Finance Co. LLC, Ser. C, |
| |||||||
0.25%, 2/1/26 | 7,285 | 6,697,647 | ||||||
Tilray, Inc. (a)(b), |
| |||||||
5.00%, 10/1/23 | 2,975 | 2,413,469 | ||||||
|
| |||||||
85,963,323 | ||||||||
|
|
Principal Amount (000s) | Value | |||||||
Pipelines—0.2% | ||||||||
Cheniere Energy, Inc., |
| |||||||
4.25%, 3/15/45 | $ | 14,605 | $ | 11,510,200 | ||||
|
| |||||||
Retail—0.2% |
| |||||||
RH (a)(b), | ||||||||
zero coupon, 6/15/23 | 9,335 | 8,501,661 | ||||||
|
| |||||||
Semiconductors—3.3% |
| |||||||
Advanced Micro Devices, Inc., |
| |||||||
2.125%, 9/1/26 | 3,435 | 13,321,359 | ||||||
Brocade Communications Systems, Inc., |
| |||||||
1.375%, 1/1/20 | 4,450 | 4,438,875 | ||||||
Cree, Inc. (a)(b), |
| |||||||
0.875%, 9/1/23 | 6,155 | 7,139,387 | ||||||
Inphi Corp., |
| |||||||
0.75%, 9/1/21 | 6,800 | 7,556,375 | ||||||
1.125%, 12/1/20 | 1,710 | 2,300,683 | ||||||
Intel Corp., |
| |||||||
3.25%, 8/1/39 | 3,825 | 9,007,340 | ||||||
Microchip Technology, Inc., |
| |||||||
1.625%, 2/15/27 | 29,480 | 34,804,088 | ||||||
2.25%, 2/15/37 | 2,660 | 3,139,066 | ||||||
Micron Technology, Inc., |
| |||||||
2.125%, 2/15/33, Ser. F | 1,300 | 4,592,510 | ||||||
3.125%, 5/1/32, Ser. D | 490 | 1,889,228 | ||||||
Novellus Systems, Inc., |
| |||||||
2.625%, 5/15/41 | 2,165 | 12,597,998 | ||||||
NXP Semiconductors NV, |
| |||||||
1.00%, 12/1/19 | 10,050 | 10,615,113 | ||||||
ON Semiconductor Corp., |
| |||||||
1.625%, 10/15/23 | 11,715 | 14,301,780 | ||||||
Silicon Laboratories, Inc., |
| |||||||
1.375%, 3/1/22 | 565 | 704,279 | ||||||
Synaptics, Inc., |
| |||||||
0.50%, 6/15/22 | 7,195 | 6,444,022 | ||||||
Teradyne, Inc., |
| |||||||
1.25%, 12/15/23 | 5,275 | 8,570,917 | ||||||
Veeco Instruments, Inc., |
| |||||||
2.70%, 1/15/23 | 6,560 | 5,853,130 | ||||||
|
| |||||||
147,276,150 | ||||||||
|
| |||||||
Software—3.8% |
| |||||||
Akamai Technologies, Inc., |
| |||||||
0.125%, 5/1/25 | 12,435 | 13,346,512 | ||||||
Allscripts Healthcare Solutions, Inc., |
| |||||||
1.25%, 7/1/20 | 6,585 | 6,602,352 | ||||||
Atlassian, Inc., |
| |||||||
0.625%, 5/1/23 | 9,725 | 16,556,813 | ||||||
Avaya Holdings Corp., |
| |||||||
2.25%, 6/15/23 | 5,740 | 5,023,137 | ||||||
Coupa Software, Inc. (a)(b), |
| |||||||
0.125%, 6/15/25 | 5,370 | 5,759,765 | ||||||
DocuSign, Inc. (a)(b), |
| |||||||
0.50%, 9/15/23 | 8,590 | 8,896,019 | ||||||
Envestnet, Inc., |
| |||||||
1.75%, 6/1/23 | 4,790 | 5,723,517 | ||||||
Evolent Health, Inc., |
| |||||||
1.50%, 10/15/25 (a)(b) | 3,470 | 2,276,110 | ||||||
2.00%, 12/1/21 | 1,400 | 1,247,969 | ||||||
Five9, Inc., |
| |||||||
0.125%, 5/1/23 | 500 | 694,410 | ||||||
Guidewire Software, Inc., |
| |||||||
1.25%, 3/15/25 | 5,245 | 5,909,224 | ||||||
Momo, Inc. (a)(b), |
| |||||||
1.25%, 7/1/25 | 2,665 | 2,531,750 | ||||||
MongoDB, Inc. (a)(b), |
| |||||||
0.75%, 6/15/24 | 2,270 | 5,213,906 | ||||||
New Relic, Inc., |
| |||||||
0.50%, 5/1/23 | 7,155 | 7,669,434 | ||||||
Nuance Communications, Inc., |
| |||||||
1.00%, 12/15/35 | 5,560 | 5,246,270 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 75 |
Table of Contents
Schedule of Investments
June 30, 2019
Principal Amount (000s) | Value | |||||||
Pluralsight, Inc. (a)(b), |
| |||||||
0.375%, 3/1/24 | $ | 7,740 | $ | 8,294,462 | ||||
RealPage, Inc., |
| |||||||
1.50%, 11/15/22 | 2,965 | 4,452,853 | ||||||
ServiceNow, Inc., |
| |||||||
zero coupon, 6/1/22 | 7,290 | 15,132,709 | ||||||
Splunk, Inc. (a)(b), |
| |||||||
0.50%, 9/15/23 | 8,880 | 9,796,930 | ||||||
1.125%, 9/15/25 | 9,235 | 10,370,076 | ||||||
Twilio, Inc., |
| |||||||
0.25%, 6/1/23 | 6,135 | 12,320,633 | ||||||
Workday, Inc., |
| |||||||
0.25%, 10/1/22 | 12,690 | 19,067,373 | ||||||
Zynga, Inc. (a)(b), |
| |||||||
0.25%, 6/1/24 | 1,690 | 1,691,608 | ||||||
|
| |||||||
173,823,832 | ||||||||
|
| |||||||
Telecommunications—0.8% |
| |||||||
CalAmp Corp. (a)(b), |
| |||||||
2.00%, 8/1/25 | 2,330 | 1,890,458 | ||||||
Finisar Corp., |
| |||||||
0.50%, 12/15/36 | 13,830 | 13,517,793 | ||||||
GCI Liberty, Inc. (a)(b), |
| |||||||
1.75%, 9/30/46 | 1,000 | 1,173,933 | ||||||
GDS Holdings Ltd., |
| |||||||
2.00%, 6/1/25 | 1,750 | 1,729,770 | ||||||
Infinera Corp., |
| |||||||
2.125%, 9/1/24 | 4,090 | 2,799,094 | ||||||
Viavi Solutions, Inc., |
| |||||||
1.75%, 6/1/23 | 6,678 | 7,700,569 | ||||||
Viavi Solutions, Inc., |
| |||||||
1.00%, 3/1/24 | 3,600 | 4,239,000 | ||||||
Vonage Holdings Corp. (a)(b), |
| |||||||
1.75%, 6/1/24 | 3,715 | 3,758,371 | ||||||
|
| |||||||
36,808,988 | ||||||||
|
| |||||||
Transportation—0.4% |
| |||||||
Atlas Air Worldwide Holdings, Inc., |
| |||||||
1.875%, 6/1/24 | 1,400 | 1,440,809 | ||||||
2.25%, 6/1/22 | 6,445 | 6,398,694 | ||||||
Echo Global Logistics, Inc., |
| |||||||
2.50%, 5/1/20 | 2,225 | 2,212,485 | ||||||
Greenbrier Cos., Inc., |
| |||||||
2.875%, 2/1/24 | 2,265 | 2,193,388 | ||||||
Hornbeck Offshore Services, Inc., |
| |||||||
1.50%, 9/1/19 | 4,860 | 4,422,600 | ||||||
Teekay Corp., |
| |||||||
5.00%, 1/15/23 | 1,625 | 1,280,703 | ||||||
|
| |||||||
17,948,679 | ||||||||
|
| |||||||
Total Convertible Bonds & Notes (cost—$1,253,913,970) |
| 1,206,852,496 | ||||||
|
| |||||||
Shares | ||||||||
Convertible Preferred Stock—4.4% |
| |||||||
Banks—0.9% |
| |||||||
Bank of America Corp., Ser. L (e), |
| |||||||
7.25% | 9,840 | 13,500,480 | ||||||
Wells Fargo & Co., Ser. L (e), |
| |||||||
7.50% | 21,405 | 29,200,701 | ||||||
|
| |||||||
42,701,181 | ||||||||
|
| |||||||
Chemicals—0.3% |
| |||||||
International Flavors & Fragrances, Inc., |
| |||||||
6.00%, 9/15/21 | 220,765 | 11,881,572 | ||||||
|
| |||||||
Computers—0.2% |
| |||||||
NCR Corp., Ser. A, PIK 5.50% (e), |
| |||||||
5.50% | 9,125 | 10,777,966 | ||||||
|
|
Shares | Value | |||||||
Diversified Financial Services—0.1% |
| |||||||
AMG Capital Trust II, |
| |||||||
5.15%, 10/15/37 | 72,690 | $ | 3,527,607 | |||||
|
| |||||||
Electric Utilities—0.6% |
| |||||||
CenterPoint Energy, Inc., Ser. B, |
| |||||||
7.00%, 9/1/21 | 41,735 | 2,095,932 | ||||||
NextEra Energy, Inc., |
| |||||||
6.123%, 9/1/19 | 140,720 | 9,136,949 | ||||||
Sempra Energy, Ser. A, |
| |||||||
6.00%, 1/15/21 | 125,785 | 14,023,770 | ||||||
|
| |||||||
25,256,651 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—0.2% |
| |||||||
Belden, Inc., |
| |||||||
6.75%, 7/15/19 | 94,470 | 7,439,513 | ||||||
|
| |||||||
Electronics—0.4% |
| |||||||
Fortive Corp., Ser. A, | ||||||||
5.00%, 7/1/21 | 15,285 | 15,758,632 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—0.3% |
| |||||||
Crown Castle International Corp., Ser. A, |
| |||||||
6.875%, 8/1/20 | 12,755 | 15,268,065 | ||||||
|
| |||||||
Hand/Machine Tools—0.3% |
| |||||||
Stanley Black & Decker, Inc., |
| |||||||
5.375%, 5/15/20 | 126,835 | 12,980,294 | ||||||
|
| |||||||
Healthcare-Products—0.9% |
| |||||||
Avantor, Inc., Ser. A, | ||||||||
6.25%, 5/15/22 | 145,055 | 9,592,487 | ||||||
Becton Dickinson and Co., Ser. A, |
| |||||||
6.125%, 5/1/20 | 333,880 | 20,758,694 | ||||||
Danaher Corp., Ser. A, |
| |||||||
4.75%, 4/15/22 | 11,080 | 12,239,522 | ||||||
|
| |||||||
42,590,703 | ||||||||
|
| |||||||
Insurance—0.2% |
| |||||||
Assurant, Inc., Ser. D, |
| |||||||
6.50%, 3/15/21 | 81,455 | 9,078,974 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—0.0% |
| |||||||
Nabors Industries Ltd., |
| |||||||
6.00%, 5/1/21 | 53,040 | 1,192,339 | ||||||
|
| |||||||
Total Convertible Preferred Stock (cost—$196,154,974) |
| 198,453,497 | ||||||
|
| |||||||
Preferred Stock(a)(d)(f)(k)(l)— 0.4% |
| |||||||
Media—0.4% |
| |||||||
LiveStyle, Inc., Ser. A | 7,960 | 1,082,958 | ||||||
LiveStyle, Inc., Ser. B (h) | 171,344 | 17,134,400 | ||||||
LiveStyle, Inc., Ser. B (h) | 8,000 | 80 | ||||||
|
| |||||||
Total Preferred Stock (cost—$25,578,848) |
| 18,217,438 | ||||||
|
| |||||||
Equity-Linked Security—0.0% |
| |||||||
Coal—0.0% |
| |||||||
Arch Coal, Inc., expires |
| |||||||
10/5/23 (k) | 4,002 | 192,096 | ||||||
|
| |||||||
Units | Value | |||||||
Warrants(d)(f)(k)— 0.0% |
| |||||||
Advertising—0.0% |
| |||||||
Affinion Group Holdings, Inc., |
| |||||||
exercise price $67.12, expires 4/1/24 (cost—$1,422,155; purchased 4/1/19) (i) | 7,203 | $ | 69,799 | |||||
|
| |||||||
Media—0.0% |
| |||||||
LiveStyle, Inc., Ser. C, expires 11/30/21 (a)(l) | 43,500 | 4 | ||||||
|
| |||||||
Semiconductors—0.0% |
| |||||||
GT Advanced Technologies, Inc., expires 10/1/17 (c) | 2,860,000 | — | † | |||||
|
| |||||||
Total Warrants (cost—$1,422,155) |
| 69,803 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—4.7% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $211,946,831; collateralized by U.S. Treasury Inflation Indexed Notes, 0.25%, due 1/15/25, valued at $216,180,902 including accrued interest |
| |||||||
(cost—$211,938,000) | $211,938 | 211,938,000 | ||||||
|
| |||||||
Total Investments, before options written (cost—$4,973,993,114)—100.1% |
| 4,527,196,453 | ||||||
|
| |||||||
Total Options Written—(0.0)% (premiums received—$611,487) (k)(m)(n) |
| (760,940 | ) | |||||
|
| |||||||
Total Investments, net of options written (cost—$4,973,381,627)—100.1% |
| 4,526,435,513 | ||||||
|
| |||||||
Other liabilities in excess of other assets—(0.1)% |
| (3,429,959 | ) | |||||
|
| |||||||
Net Assets—100.0% |
| $4,523,005,554 | ||||||
|
|
76 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Notes to Schedule of Investments:
† Actual amount rounds to less than $1.
(a) Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $1,070,746,186, representing 23.7% of net assets.
(b) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $1,053,173,843, representing 23.3% of net assets.
(c) In default.
(d) Fair-Valued—Securities with an aggregate value of $24,626,505, representing 0.5% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(e) Perpetual maturity. The date shown, if any, is the next call date.
(f) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(g) All or partial amount segregated for the benefit of the counterparty as collateral for options written.
(h) Affiliated security.
(i) Restricted. The aggregate cost of such securities is $36,353,629. The aggregate value is $14,714,414, representing 0.3% of net assets.
(j) Variable or Floating Rate Security—Security with an interest rate that changes periodically. The interest rate disclosed reflects the rate in effect on June 30, 2019.
(k)Non-income producing.
(l) A member of the Fund’s portfolio management team is a member of the board of directors of LiveStyle, Inc. The Fund’s aggregate value of investments in LiveStyle, Inc. represents 0.4% of net assets.
(m) Exchange traded-Chicago Board Options Exchange.
(n) Exchange traded option contracts outstanding at June 30, 2019:
Options written contracts outstanding at June 30, 2019: | ||||||||||||||||||||||||||||
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Market Value | Premiums Received | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
Call options: | ||||||||||||||||||||||||||||
Adobe, Inc. | 315.00 USD | 7/19/19 | (390 | ) | $ | (39,000 | ) | $ | (27,105 | ) | $ | (30,633 | ) | $ | 3,528 | |||||||||||||
Alphabet, Inc. | 1,250.00 USD | 7/19/19 | (140 | ) | (14,000 | ) | (3,150 | ) | (42,974 | ) | 39,824 | |||||||||||||||||
Apple, Inc. | 210.00 USD | 7/19/19 | (570 | ) | (57,000 | ) | (60,420 | ) | (16,810 | ) | (43,610 | ) | ||||||||||||||||
Boeing Co. | 415.00 USD | 7/19/19 | (345 | ) | (34,500 | ) | (5,002 | ) | (13,268 | ) | 8,266 | |||||||||||||||||
Broadcom, Inc. | 330.00 USD | 7/19/19 | (425 | ) | (42,500 | ) | (4,250 | ) | (25,717 | ) | 21,467 | |||||||||||||||||
Deere & Co. | 165.00 USD | 7/19/19 | (560 | ) | (56,000 | ) | (245,000 | ) | (16,940 | ) | (228,060 | ) | ||||||||||||||||
DR Horton, Inc. | 48.00 USD | 7/19/19 | (505 | ) | (50,500 | ) | (2,525 | ) | (10,600 | ) | 8,075 | |||||||||||||||||
Facebook, Inc. | 205.00 USD | 7/19/19 | (525 | ) | (52,500 | ) | (56,438 | ) | (45,161 | ) | (11,277 | ) | ||||||||||||||||
Fiserv, Inc. | 95.00 USD | 7/19/19 | (1,085 | ) | (108,500 | ) | (75,950 | ) | (36,847 | ) | (39,103 | ) | ||||||||||||||||
Home Depot, Inc. | 217.50 USD | 7/19/19 | (705 | ) | (70,500 | ) | (32,782 | ) | (25,034 | ) | (7,748 | ) | ||||||||||||||||
Honeywell International, Inc. | 185.00 USD | 7/19/19 | (660 | ) | (66,000 | ) | (20,130 | ) | (33,640 | ) | 13,510 | |||||||||||||||||
Intuit, Inc. | 290.00 USD | 7/19/19 | (340 | ) | (34,000 | ) | (1,700 | ) | (11,546 | ) | 9,846 | |||||||||||||||||
JPMorgan Chase & Co. | 120.00 USD | 7/19/19 | (690 | ) | (69,000 | ) | (5,865 | ) | (8,971 | ) | 3,106 | |||||||||||||||||
Microsoft Corp. | 145.00 USD | 7/19/19 | (920 | ) | (92,000 | ) | (18,400 | ) | (44,583 | ) | 26,183 | |||||||||||||||||
NIKE, Inc. | 90.00 USD | 7/19/19 | (835 | ) | (83,500 | ) | (10,020 | ) | (34,350 | ) | 24,330 | |||||||||||||||||
S&P Global, Inc. | 230.00 USD | 7/19/19 | (217 | ) | (21,700 | ) | (62,388 | ) | (23,211 | ) | (39,177 | ) | ||||||||||||||||
Starbucks Corp. | 90.00 USD | 7/19/19 | (1,200 | ) | (120,000 | ) | (5,400 | ) | (21,553 | ) | 16,153 | |||||||||||||||||
Take-Two Interactive Software, Inc. | 130.00 USD | 7/19/19 | (420 | ) | (42,000 | ) | (5,250 | ) | (10,063 | ) | 4,813 | |||||||||||||||||
Target Corp. | 92.50 USD | 7/19/19 | (960 | ) | (96,000 | ) | (12,960 | ) | (77,721 | ) | 64,761 | |||||||||||||||||
Union Pacific Corp. | 180.00 USD | 7/19/19 | (525 | ) | (52,500 | ) | (29,400 | ) | (19,441 | ) | (9,959 | ) | ||||||||||||||||
Vertex Pharmaceuticals, Inc. | 195.00 USD | 7/19/19 | (300 | ) | (30,000 | ) | (41,250 | ) | (18,909 | ) | (22,341 | ) | ||||||||||||||||
Walt Disney Co. | 150.00 USD | 7/19/19 | (1,010 | ) | (101,000 | ) | (25,755 | ) | (31,381 | ) | 5,626 | |||||||||||||||||
Workday, Inc. | 225.00 USD | 7/19/19 | (140 | ) | (14,000 | ) | (9,800 | ) | (12,134 | ) | 2,334 | |||||||||||||||||
|
| |||||||||||||||||||||||||||
Total options written contracts |
| $ | (760,940 | ) | $ | (611,487 | ) | $ | (149,453 | ) | ||||||||||||||||||
|
|
Glossary:
ADR—American Depositary Receipt
FRN—Floating Rate Note
PIK—Payment-in-Kind
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 77 |
Table of Contents
Schedule of Investments
June 30, 2019
AllianzGI Mid-Cap Fund
Shares | Value | |||||||
Common Stock—99.5% |
| |||||||
Aerospace & Defense—2.5% |
| |||||||
HEICO Corp., Class A | 44,120 | $4,560,684 | ||||||
L3 Technologies, Inc. | 13,353 | 3,273,755 | ||||||
|
| |||||||
7,834,439 | ||||||||
|
| |||||||
Air Freight & Logistics—1.3% |
| |||||||
XPO Logistics, Inc. (a) | 70,754 | 4,090,289 | ||||||
|
| |||||||
Beverages—3.0% | ||||||||
MGP Ingredients, Inc. | 49,725 | 3,297,265 | ||||||
Monster Beverage Corp. (a) | 96,426 | 6,154,871 | ||||||
|
| |||||||
9,452,136 | ||||||||
|
| |||||||
Biotechnology—2.8% | ||||||||
Exact Sciences Corp. (a) | 44,740 | 5,281,110 | ||||||
Sage Therapeutics, Inc. (a) | 18,245 | 3,340,477 | ||||||
|
| |||||||
8,621,587 | ||||||||
|
| |||||||
Capital Markets—1.4% | ||||||||
E*TRADE Financial Corp. | 95,887 | 4,276,560 | ||||||
|
| |||||||
Chemicals—1.8% | ||||||||
FMC Corp. | 68,340 | 5,668,803 | ||||||
|
| |||||||
Commercial Services & Supplies—3.9% |
| |||||||
Clean Harbors, Inc. (a) | 76,225 | 5,419,598 | ||||||
Waste Connections, Inc. | 69,937 | 6,684,578 | ||||||
|
| |||||||
12,104,176 | ||||||||
|
| |||||||
Containers & Packaging—2.0% |
| |||||||
Crown Holdings, Inc. (a) | 103,900 | 6,348,290 | ||||||
|
| |||||||
Electrical Equipment—2.2% |
| |||||||
AMETEK, Inc. | 75,147 | 6,826,354 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components—3.7% |
| |||||||
Keysight Technologies, Inc. (a) | 49,740 | 4,467,150 | ||||||
TE Connectivity Ltd. | 36,841 | 3,528,631 | ||||||
Trimble, Inc. (a) | 81,447 | 3,674,074 | ||||||
|
| |||||||
11,669,855 | ||||||||
|
| |||||||
Entertainment—5.4% | ||||||||
Take-Two Interactive Software, Inc. (a) | 78,355 | 8,895,643 | ||||||
World Wrestling Entertainment, Inc., Class A | 35,525 | 2,565,260 | ||||||
Zynga, Inc., Class A (a) | 894,411 | 5,482,740 | ||||||
|
| |||||||
16,943,643 | ||||||||
|
| |||||||
Food Products—2.3% | ||||||||
Freshpet, Inc. (a) | 71,565 | 3,256,923 | ||||||
Lamb Weston Holdings, Inc. | 60,110 | 3,808,570 | ||||||
|
| |||||||
7,065,493 | ||||||||
|
| |||||||
Healthcare Equipment & Supplies—10.6% |
| |||||||
Cooper Cos., Inc. | 14,015 | 4,721,513 | ||||||
DexCom, Inc. (a) | 63,217 | 9,472,435 | ||||||
Edwards Lifesciences Corp. (a) | 29,443 | 5,439,300 | ||||||
Haemonetics Corp. (a) | 46,643 | 5,613,019 | ||||||
IDEXX Laboratories, Inc. (a) | 28,195 | 7,762,929 | ||||||
|
| |||||||
33,009,196 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure—3.3% |
| |||||||
Chipotle Mexican Grill, Inc. (a) | 7,515 | 5,507,593 | ||||||
Royal Caribbean Cruises Ltd. | 38,553 | 4,673,009 | ||||||
|
| |||||||
10,180,602 | ||||||||
|
|
Shares | Value | |||||||
Insurance—2.9% | ||||||||
Arthur J Gallagher & Co. | 68,225 | $ | 5,975,828 | |||||
James River Group Holdings Ltd. | 66,195 | 3,104,545 | ||||||
|
| |||||||
9,080,373 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail—1.2% |
| |||||||
Etsy, Inc. (a) | 63,130 | 3,874,288 | ||||||
|
| |||||||
IT Services—11.6% | ||||||||
Booz Allen Hamilton Holding Corp. | 69,770 | 4,619,472 | ||||||
EPAM Systems, Inc. (a) | 44,738 | 7,744,148 | ||||||
Twilio, Inc., Class A (a) | 36,910 | 5,032,679 | ||||||
WEX, Inc. (a) | 31,058 | 6,463,170 | ||||||
Wix.com Ltd. (a) | 28,254 | 4,014,893 | ||||||
Worldpay, Inc., Class A (a) | 66,875 | 8,195,531 | ||||||
|
| |||||||
36,069,893 | ||||||||
|
| |||||||
Life Sciences Tools & Services—2.6% |
| |||||||
Agilent Technologies, Inc. | 65,694 | 4,905,371 | ||||||
Illumina, Inc. (a) | 8,975 | 3,304,146 | ||||||
|
| |||||||
8,209,517 | ||||||||
|
| |||||||
Multi-Line Retail—2.1% | ||||||||
Dollar Tree, Inc. (a) | 60,607 | 6,508,586 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—1.0% |
| |||||||
Parsley Energy, Inc., Class A (a) | 157,433 | 2,992,801 | ||||||
|
| |||||||
Pharmaceuticals—3.3% | ||||||||
Catalent, Inc. (a) | 117,652 | 6,377,915 | ||||||
Elanco Animal Health, Inc. (a) | 114,510 | 3,870,438 | ||||||
|
| |||||||
10,248,353 | ||||||||
|
| |||||||
Professional Services—4.2% |
| |||||||
Equifax, Inc. | 40,733 | 5,508,731 | ||||||
Verisk Analytics, Inc. | 51,568 | 7,552,649 | ||||||
|
| |||||||
13,061,380 | ||||||||
|
| |||||||
Real Estate Management & Development—1.2% |
| |||||||
CBRE Group, Inc., Class A (a) | 75,416 | 3,868,841 | ||||||
|
| |||||||
Road & Rail—1.0% | ||||||||
Kansas City Southern | 24,400 | 2,972,408 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—7.3% |
| |||||||
Advanced Micro Devices, Inc. (a) | 199,910 | 6,071,267 | ||||||
Cree, Inc. (a) | 51,195 | 2,876,135 | ||||||
Entegris, Inc. | 65,706 | 2,452,148 | ||||||
Monolithic Power Systems, Inc. | 25,179 | 3,418,804 | ||||||
Xilinx, Inc. | 68,500 | 8,077,520 | ||||||
|
| |||||||
22,895,874 | ||||||||
|
| |||||||
Software—7.0% | ||||||||
Ceridian HCM Holding, Inc. (a) | 72,570 | 3,643,014 | ||||||
Splunk, Inc. (a) | 51,299 | 6,450,849 | ||||||
Trade Desk, Inc., Class A (a) | 13,663 | 3,112,158 | ||||||
Workday, Inc., Class A (a) | 42,624 | 8,762,642 | ||||||
|
| |||||||
21,968,663 | ||||||||
|
| |||||||
Specialty Retail—2.9% | ||||||||
Floor & Decor Holdings, Inc., Class A (a) | 101,600 | 4,257,040 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 14,124 | 4,899,474 | ||||||
|
| |||||||
9,156,514 | ||||||||
|
|
Shares | Value | |||||||
Textiles, Apparel & Luxury Goods—3.6% |
| |||||||
Lululemon Athletica, Inc. (a) | 38,805 | $ | 6,993,049 | |||||
VF Corp. | 48,230 | 4,212,891 | ||||||
|
| |||||||
11,205,940 | ||||||||
|
| |||||||
Trading Companies & Distributors—1.4% |
| |||||||
United Rentals, Inc. (a) | 32,379 | 4,294,427 | ||||||
|
| |||||||
Total Common Stock (cost—$238,374,500) | 310,499,281 | |||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—0.8% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $2,558,107; collateralized by U.S. Treasury Inflation Indexed Notes, 0.25%, due 1/15/25, valued at $2,611,364 including accrued interest |
| |||||||
(cost—$2,558,000) | $2,558 | 2,558,000 | ||||||
|
| |||||||
Total Investments (cost—$240,932,500)—100.3% |
| 313,057,281 | ||||||
|
| |||||||
Liabilities in excess of other assets—(0.3)% | (889,858 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $312,167,423 | |||||||
|
|
Notes to Schedule of Investments:
(a)Non-income producing.
78 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
AllianzGI NFJ Dividend Value Fund
Shares | Value | |||||||
Common Stock—98.4% |
| |||||||
Aerospace & Defense—4.8% |
| |||||||
Curtiss-Wright Corp. | 84,177 | $10,701,422 | ||||||
Lockheed Martin Corp. | 75,565 | 27,470,900 | ||||||
United Technologies Corp. | 210,605 | 27,420,771 | ||||||
|
| |||||||
65,593,093 | ||||||||
|
| |||||||
Automobiles—2.1% |
| |||||||
General Motors Co. | 724,675 | 27,921,728 | ||||||
|
| |||||||
Banks—13.8% |
| |||||||
Bank of America Corp. | 961,810 | 27,892,490 | ||||||
Citigroup, Inc. | 395,870 | 27,722,776 | ||||||
Citizens Financial Group, Inc. | 771,335 | 27,274,406 | ||||||
Comerica, Inc. | 340,900 | 24,762,976 | ||||||
JPMorgan Chase & Co. | 476,640 | 53,288,352 | ||||||
U.S. Bancorp | 512,615 | 26,861,026 | ||||||
|
| |||||||
187,802,026 | ||||||||
|
| |||||||
Capital Markets—2.0% |
| |||||||
Morgan Stanley | 606,245 | 26,559,593 | ||||||
|
| |||||||
Chemicals—1.9% |
| |||||||
Celanese Corp. | 129,200 | 13,927,760 | ||||||
Dow, Inc. | 242,706 | 11,967,833 | ||||||
|
| |||||||
25,895,593 | ||||||||
|
| |||||||
Communications Equipment—1.9% |
| |||||||
Cisco Systems, Inc. | 474,870 | 25,989,635 | ||||||
|
| |||||||
Containers & Packaging—1.6% |
| |||||||
Avery Dennison Corp. | 69,663 | 8,027,760 | ||||||
International Paper Co. | 304,475 | 13,189,857 | ||||||
|
| |||||||
21,217,617 | ||||||||
|
| |||||||
Diversified Telecommunication Services—4.1% |
| |||||||
AT&T, Inc. | 837,863 | 28,076,789 | ||||||
Verizon Communications, Inc. | 471,450 | 26,933,939 | ||||||
|
| |||||||
55,010,728 | ||||||||
|
| |||||||
Electric Utilities—1.9% |
| |||||||
Exelon Corp. | 546,058 | 26,178,020 | ||||||
|
| |||||||
Electrical Equipment—2.0% |
| |||||||
Eaton Corp. PLC | 327,110 | 27,241,721 | ||||||
|
| |||||||
Entertainment—1.0% |
| |||||||
Walt Disney Co. | 99,084 | 13,836,090 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—0.9% |
| |||||||
Host Hotels & Resorts, Inc. | 693,926 | 12,643,332 | ||||||
|
| |||||||
Food & Staples Retailing—2.0% |
| |||||||
Walmart, Inc. | 244,350 | 26,998,231 | ||||||
|
| |||||||
Food Products—1.9% |
| |||||||
Mondelez International, Inc., Class A | 486,300 | 26,211,570 | ||||||
|
| |||||||
Healthcare Equipment & Supplies—2.0% |
| |||||||
Medtronic PLC | 274,470 | 26,730,633 | ||||||
|
| |||||||
Healthcare Providers & Services—3.0% |
| |||||||
Humana, Inc. | 52,026 | 13,802,498 | ||||||
Quest Diagnostics, Inc. | 269,160 | 27,403,179 | ||||||
|
| |||||||
41,205,677 | ||||||||
|
|
Shares | Value | |||||||
Industrial Conglomerates—3.1% |
| |||||||
General Electric Co. | 1,333,000 | $ | 13,996,500 | |||||
Honeywell International, Inc. | 156,570 | 27,335,556 | ||||||
|
| |||||||
41,332,056 | ||||||||
|
| |||||||
Insurance—7.0% |
| |||||||
Allstate Corp. | 267,975 | 27,250,378 | ||||||
MetLife, Inc. | 552,265 | 27,431,002 | ||||||
Progressive Corp. | 165,288 | 13,211,470 | ||||||
Reinsurance Group of America, Inc. | 175,125 | 27,324,754 | ||||||
|
| |||||||
95,217,604 | ||||||||
|
| |||||||
Media—2.9% |
| |||||||
Comcast Corp., Class A | 935,000 | 39,531,800 | ||||||
|
| |||||||
Metals & Mining—0.4% |
| |||||||
Reliance Steel & Aluminum Co. | 57,590 | 5,449,166 | ||||||
|
| |||||||
Multi-Line Retail—2.0% |
| |||||||
Target Corp. | 311,414 | 26,971,566 | ||||||
|
| |||||||
Multi-Utilities—2.0% |
| |||||||
Public Service Enterprise Group, Inc. | 453,330 | 26,664,871 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—11.9% |
| |||||||
Chevron Corp. | 108,795 | 13,538,450 | ||||||
ConocoPhillips | 421,065 | 25,684,965 | ||||||
Royal Dutch Shell PLC, Class A ADR | 614,895 | 40,011,218 | ||||||
TC Energy Corp. | 543,432 | 26,910,752 | ||||||
Total S.A. ADR | 482,700 | 26,929,833 | ||||||
Valero Energy Corp. | 330,500 | 28,294,105 | ||||||
|
| |||||||
161,369,323 | ||||||||
|
| |||||||
Pharmaceuticals—8.6% |
| |||||||
Bristol-Myers Squibb Co. | 204,738 | 9,284,868 | ||||||
Johnson & Johnson | 283,146 | 39,436,575 | ||||||
Merck & Co., Inc. | 314,649 | 26,383,319 | ||||||
Pfizer, Inc. | 620,185 | 26,866,414 | ||||||
Roche Holding AG ADR | 436,777 | 15,330,873 | ||||||
|
| |||||||
117,302,049 | ||||||||
|
| |||||||
Road & Rail—1.9% |
| |||||||
Kansas City Southern | 216,350 | 26,355,757 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—4.8% |
| |||||||
Broadcom, Inc. | 90,700 | 26,108,902 | ||||||
Intel Corp. | 514,544 | 24,631,221 | ||||||
KLA-Tencor Corp. | 117,362 | 13,872,189 | ||||||
|
| |||||||
64,612,312 | ||||||||
|
| |||||||
Software—2.0% |
| |||||||
Oracle Corp. | 479,069 | 27,292,561 | ||||||
|
| |||||||
Specialty Retail—1.0% |
| |||||||
Lowe’s Cos., Inc. | 140,167 | 14,144,252 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—2.0% |
| |||||||
Apple, Inc. | 135,140 | 26,746,909 | ||||||
|
| |||||||
Tobacco—1.9% |
| |||||||
Philip Morris International, Inc. | 320,000 | 25,129,600 | ||||||
|
| |||||||
Total Common Stock (cost—$1,159,269,262) |
| 1,335,155,113 | ||||||
|
| |||||||
Principal | Value | |||||||
Repurchase Agreements—1.6% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $21,560,898; collateralized by U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $21,997,103 including accrued interest |
| |||||||
(cost—$21,560,000) | $21,560 | $ | 21,560,000 | |||||
|
| |||||||
Total Investments (cost—$1,180,829,262)—100.0% |
| 1,356,715,113 | ||||||
|
| |||||||
Other assets less liabilities—0.0% | 528,101 | |||||||
|
| |||||||
Net Assets—100.0% | $1,357,243,214 | |||||||
|
|
Glossary:
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 79 |
Table of Contents
Schedule of Investments
June 30, 2019
AllianzGI NFJ International Value Fund
Shares | Value | |||||||
Common Stock—99.1% |
| |||||||
Australia—2.1% |
| |||||||
Macquarie Group Ltd. | 21,942 | $1,935,416 | ||||||
Westpac Banking Corp. | 93,861 | 1,870,673 | ||||||
|
| |||||||
3,806,089 | ||||||||
|
| |||||||
Canada—12.5% |
| |||||||
Bank of Montreal | 24,300 | 1,833,435 | ||||||
Canadian Pacific Railway Ltd. | 14,441 | 3,397,101 | ||||||
Enerplus Corp. | 185,100 | 1,393,803 | ||||||
Magna International, Inc. | 77,140 | 3,833,858 | ||||||
Manulife Financial Corp. | 104,468 | 1,899,228 | ||||||
Methanex Corp. | 37,619 | 1,710,160 | ||||||
TC Energy Corp. | 66,660 | 3,301,003 | ||||||
Toronto-Dominion Bank | 87,840 | 5,126,342 | ||||||
|
| |||||||
22,494,930 | ||||||||
|
| |||||||
China—11.9% |
| |||||||
Anhui Conch Cement Co., Ltd., Class H | 589,500 | 3,688,686 | ||||||
China Construction Bank Corp., Class H | 2,249,100 | 1,938,732 | ||||||
China Mobile Ltd. | 381,000 | 3,468,495 | ||||||
China Railway Signal & Communication Corp., Ltd., Class H (a) | 5,196,000 | 3,775,774 | ||||||
China Shenhua Energy Co., Ltd., Class H | 784,000 | 1,642,140 | ||||||
Hengan International Group Co., Ltd. | 438,000 | 3,225,088 | ||||||
Longfor Group Holdings Ltd. | 470,500 | 1,773,977 | ||||||
Ping An Insurance Group Co of China Ltd., Class A | 151,817 | 1,963,097 | ||||||
|
| |||||||
21,475,989 | ||||||||
|
| |||||||
France—6.2% |
| |||||||
Capgemini SE | 29,479 | 3,665,215 | ||||||
Danone S.A. | 44,407 | 3,760,038 | ||||||
Euronext NV (a) | 23,295 | 1,762,479 | ||||||
Kering S.A. | 3,345 | 1,974,296 | ||||||
|
| |||||||
11,162,028 | ||||||||
|
| |||||||
Germany—4.2% |
| |||||||
BASF SE | 25,454 | 1,851,759 | ||||||
Deutsche Telekom AG | 104,813 | 1,815,847 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 7,365 | 1,846,093 | ||||||
SAP SE | 14,486 | 1,985,913 | ||||||
|
| |||||||
7,499,612 | ||||||||
|
| |||||||
Hong Kong—6.7% |
| |||||||
AIA Group Ltd. | 172,200 | 1,859,570 | ||||||
BOC Hong Kong Holdings Ltd. | 399,600 | 1,573,284 | ||||||
CK Hutchison Holdings Ltd. | 362,500 | 3,575,606 | ||||||
CLP Holdings Ltd. | 156,000 | 1,719,087 | ||||||
Sands China Ltd. | 364,000 | 1,738,853 | ||||||
Xinyi Glass Holdings Ltd. | 1,492,000 | 1,567,277 | ||||||
|
| |||||||
12,033,677 | ||||||||
|
| |||||||
India—0.7% |
| |||||||
Reliance Industries Ltd. GDR (a) | 33,792 | 1,221,581 | ||||||
|
| |||||||
Ireland—3.7% |
| |||||||
Glanbia PLC | 193,471 | 3,145,693 | ||||||
Smurfit Kappa Group PLC | 114,796 | 3,478,599 | ||||||
|
| |||||||
6,624,292 | ||||||||
|
|
Shares | Value | |||||||
Italy—1.1% |
| |||||||
Terna Rete Elettrica Nazionale SpA | 300,886 | $ | 1,917,131 | |||||
|
| |||||||
Japan—13.7% |
| |||||||
Asahi Group Holdings Ltd. | 39,000 | 1,755,728 | ||||||
Astellas Pharma, Inc. | 135,000 | 1,923,853 | ||||||
Hitachi Ltd. | 48,340 | 1,778,560 | ||||||
Japan Exchange Group, Inc. | 224,500 | 3,575,567 | ||||||
Mitsubishi Corp. | 131,400 | 3,472,293 | ||||||
Shionogi & Co., Ltd. | 60,100 | 3,472,748 | ||||||
Sony Corp. | 97,600 | 5,128,875 | ||||||
Tokio Marine Holdings, Inc. | 72,200 | 3,622,658 | ||||||
|
| |||||||
24,730,282 | ||||||||
|
| |||||||
Korea (Republic of)—2.0% |
| |||||||
Samsung Electronics Co., Ltd. | 86,483 | 3,521,615 | ||||||
|
| |||||||
Mexico—1.0% |
| |||||||
Grupo Aeroportuario del Pacifico S.A.B de C.V., Class B | 176,000 | 1,832,830 | ||||||
|
| |||||||
Netherlands—2.9% |
| |||||||
ING Groep NV | 139,403 | 1,614,808 | ||||||
Unilever NV | 59,491 | 3,614,562 | ||||||
|
| |||||||
5,229,370 | ||||||||
|
| |||||||
Peru—1.0% |
| |||||||
Southern Copper Corp. | 45,968 | 1,785,857 | ||||||
|
| |||||||
Russian Federation—0.9% |
| |||||||
Lukoil PJSC ADR | 19,970 | 1,677,879 | ||||||
|
| |||||||
Singapore—1.9% |
| |||||||
DBS Group Holdings Ltd. | 182,500 | 3,505,835 | ||||||
|
| |||||||
South Africa—1.0% |
| |||||||
Naspers Ltd., Class N | 7,323 | 1,772,533 | ||||||
|
| |||||||
Spain—2.0% |
| |||||||
Banco Santander S.A. | 778,171 | 3,606,552 | ||||||
|
| |||||||
Sweden—1.1% |
| |||||||
Sandvik AB | 106,259 | 1,952,621 | ||||||
|
| |||||||
Switzerland—3.2% |
| |||||||
Roche Holding AG | 20,414 | 5,740,164 | ||||||
|
| |||||||
Taiwan—0.9% |
| |||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 41,686 | 1,632,841 | ||||||
|
| |||||||
United Kingdom—16.5% |
| |||||||
3i Group PLC | 117,910 | 1,668,182 | ||||||
BAE Systems PLC ADR | 152,868 | 3,832,401 | ||||||
Carnival PLC | 69,664 | 3,065,797 | ||||||
Compass Group PLC | 73,048 | 1,751,089 | ||||||
GlaxoSmithKline PLC | 183,804 | 3,684,319 | ||||||
Imperial Brands PLC | 133,449 | 3,131,401 | ||||||
Legal & General Group PLC | 1,015,080 | 3,477,675 | ||||||
Rio Tinto PLC | 29,354 | 1,816,808 | ||||||
Royal Dutch Shell PLC, Class A ADR | 110,540 | 7,192,838 | ||||||
|
| |||||||
29,620,510 | ||||||||
|
|
Shares | Value | |||||||
United States—1.9% |
| |||||||
Broadcom, Inc. | 5,700 | $ | 1,640,802 | |||||
Constellation Brands, Inc., Class A | 8,701 | 1,713,575 | ||||||
|
| |||||||
3,354,377 | ||||||||
|
| |||||||
Total Common Stock (cost—$171,746,521) |
| 178,198,595 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—0.7% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $1,224,051; collateralized by U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $1,251,309 including accrued interest |
| |||||||
(cost—$1,224,000) | $1,224 | 1,224,000 | ||||||
|
| |||||||
Total Investments (cost—$172,970,521) (b)—99.8% |
| 179,422,595 | ||||||
|
| |||||||
Other assets less liabilities—0.2% | 382,974 | |||||||
|
| |||||||
Net Assets—100.0% | $179,805,569 | |||||||
|
|
Notes to Schedule of Investments:
(a) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $6,759,834, representing 3.8% of net assets.
(b) Securities with an aggregate value of $133,173,061, representing 74.1% of net assets, were valued utilizing modeling tools provided by a third-party vendor. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
Glossary:
ADR—American Depositary Receipt
GDR—Global Depositary Receipt
80 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
The industry classification of portfolio holdings and other assets less liabilities shown as a percentage of net assets were as follows:
Banks | 11.7% | |||
Oil, Gas & Consumable Fuels | 9.1% | |||
Pharmaceuticals | 8.3% | |||
Insurance | 8.2% | |||
Capital Markets | 5.0% | |||
Food Products | 3.8% | |||
Personal Products | 3.8% | |||
Hotels, Restaurants & Leisure | 3.7% | |||
Electronic Equipment, Instruments & Components | 3.1% | |||
Auto Components | 3.0% | |||
Household Durables | 2.9% | |||
Aerospace & Defense | 2.1% | |||
Construction Materials | 2.1% | |||
IT Services | 2.0% | |||
Electric Utilities | 2.0% | |||
Metals & Mining | 2.0% | |||
Industrial Conglomerates | 2.0% | |||
Chemicals | 2.0% | |||
Technology Hardware, Storage & Peripherals | 2.0% | |||
Containers & Packaging | 1.9% | |||
Trading Companies & Distributors | 1.9% | |||
Beverages | 1.9% | |||
Wireless Telecommunication Services | 1.9% | |||
Road & Rail | 1.9% | |||
Semiconductors & Semiconductor Equipment | 1.8% | |||
Tobacco | 1.7% | |||
Software | 1.1% | |||
Textiles, Apparel & Luxury Goods | 1.1% | |||
Machinery | 1.1% | |||
Transportation Infrastructure | 1.0% | |||
Diversified Telecommunication Services | 1.0% | |||
Real Estate Management & Development | 1.0% | |||
Internet & Direct Marketing Retail | 1.0% | |||
Repurchase Agreements | 0.7% | |||
Other assets less liabilities | 0.2% | |||
|
| |||
100.0% | ||||
|
|
AllianzGI NFJ Large-Cap Value Fund
Shares | Value | |||||||
Common Stock—99.7% |
| |||||||
Aerospace & Defense—3.6% |
| |||||||
Curtiss-Wright Corp. | 26,768 | $3,403,016 | ||||||
Lockheed Martin Corp. | 10,800 | 3,926,232 | ||||||
United Technologies Corp. | 40,184 | 5,231,957 | ||||||
|
| |||||||
12,561,205 | ||||||||
|
| |||||||
Banks—13.8% |
| |||||||
Bank of America Corp. | 273,667 | 7,936,343 | ||||||
Citigroup, Inc. | 105,900 | 7,416,177 | ||||||
Citizens Financial Group, Inc. | 98,465 | 3,481,722 | ||||||
Comerica, Inc. | 85,540 | 6,213,626 | ||||||
First Republic Bank | 17,950 | 1,752,817 | ||||||
JPMorgan Chase & Co. | 123,200 | 13,773,760 | ||||||
U.S. Bancorp | 136,100 | 7,131,640 | ||||||
|
| |||||||
47,706,085 | ||||||||
|
| |||||||
Beverages—1.1% |
| |||||||
PepsiCo, Inc. | 28,700 | 3,763,431 | ||||||
|
| |||||||
Capital Markets—2.7% |
| |||||||
Ameriprise Financial, Inc. | 17,960 | 2,607,074 | ||||||
Morgan Stanley | 152,400 | 6,676,644 | ||||||
|
| |||||||
9,283,718 | ||||||||
|
| |||||||
Chemicals—3.0% |
| |||||||
Air Products & Chemicals, Inc. | 16,122 | 3,649,537 | ||||||
Celanese Corp. | 34,700 | 3,740,660 | ||||||
Dow, Inc. (a) | 58,346 | 2,877,041 | ||||||
|
| |||||||
10,267,238 | ||||||||
|
| |||||||
Commercial Services & Supplies—0.8% |
| |||||||
IAA, Inc. (a) | 41,687 | 1,616,622 | ||||||
KAR Auction Services, Inc. | 41,687 | 1,042,175 | ||||||
|
| |||||||
2,658,797 | ||||||||
|
| |||||||
Communications Equipment—2.0% |
| |||||||
Cisco Systems, Inc. | 128,400 | 7,027,332 | ||||||
|
| |||||||
Construction & Engineering—1.1% |
| |||||||
EMCOR Group, Inc. | 41,968 | 3,697,381 | ||||||
|
| |||||||
Consumer Finance—2.1% |
| |||||||
American Express Co. | 29,948 | 3,696,781 | ||||||
Discover Financial Services | 45,000 | 3,491,550 | ||||||
|
| |||||||
7,188,331 | ||||||||
|
| |||||||
Containers & Packaging—1.3% |
| |||||||
Avery Dennison Corp. | 8,873 | 1,022,499 | ||||||
Packaging Corp. of America | 35,326 | 3,367,274 | ||||||
|
| |||||||
4,389,773 | ||||||||
|
| |||||||
Diversified Telecommunication Services—3.0% |
| |||||||
AT&T, Inc. | 108,948 | 3,650,848 | ||||||
Verizon Communications, Inc. | 115,771 | 6,613,997 | ||||||
|
| |||||||
10,264,845 | ||||||||
|
| |||||||
Electric Utilities—2.0% |
| |||||||
Entergy Corp. | 34,265 | 3,526,896 | ||||||
Exelon Corp. | 68,992 | 3,307,477 | ||||||
|
| |||||||
6,834,373 | ||||||||
|
| |||||||
Electrical Equipment—1.0% |
| |||||||
Eaton Corp. PLC | 43,400 | 3,614,352 | ||||||
|
| |||||||
Entertainment—1.3% |
| |||||||
Walt Disney Co. | 31,600 | 4,412,624 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—1.5% |
| |||||||
Host Hotels & Resorts, Inc. | 184,248 | 3,356,998 | ||||||
Prologis, Inc. | 22,436 | 1,797,124 | ||||||
|
| |||||||
5,154,122 | ||||||||
|
|
Shares | Value | |||||||
Food & Staples Retailing—2.2% |
| |||||||
Sysco Corp. | 53,500 | $ | 3,783,520 | |||||
Walmart, Inc. | 34,400 | 3,800,856 | ||||||
|
| |||||||
7,584,376 | ||||||||
|
| |||||||
Food Products—1.1% |
| |||||||
Mondelez International, Inc., Class A | 70,600 | 3,805,340 | ||||||
|
| |||||||
Healthcare Equipment & Supplies—3.1% |
| |||||||
Abbott Laboratories | 20,807 | 1,749,869 | ||||||
Baxter International, Inc. | 25,806 | 2,113,511 | ||||||
Hill-Rom Holdings, Inc. | 16,845 | 1,762,324 | ||||||
Medtronic PLC | 53,600 | 5,220,104 | ||||||
|
| |||||||
10,845,808 | ||||||||
|
| |||||||
Healthcare Providers & Services—2.3% |
| |||||||
HCA Healthcare, Inc. | 21,000 | 2,838,570 | ||||||
Humana, Inc. | 6,626 | 1,757,878 | ||||||
Quest Diagnostics, Inc. | 33,400 | 3,400,454 | ||||||
|
| |||||||
7,996,902 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure—0.9% |
| |||||||
Royal Caribbean Cruises Ltd. | 26,900 | 3,260,549 | ||||||
|
| |||||||
Household Products—1.1% |
| |||||||
Procter & Gamble Co. | 34,200 | 3,750,030 | ||||||
|
| |||||||
Industrial Conglomerates—2.0% |
| |||||||
General Electric Co. | 338,800 | 3,557,400 | ||||||
Honeywell International, Inc. | 19,770 | 3,451,644 | ||||||
|
| |||||||
7,009,044 | ||||||||
|
| |||||||
Insurance—5.2% |
| |||||||
Aflac, Inc. | 70,800 | 3,880,548 | ||||||
Allstate Corp. | 36,900 | 3,752,361 | ||||||
Progressive Corp. | 82,988 | 6,633,231 | ||||||
Reinsurance Group of America, Inc. | 22,600 | 3,526,278 | ||||||
|
| |||||||
17,792,418 | ||||||||
|
| |||||||
Machinery—1.0% |
| |||||||
Ingersoll-Rand PLC | 27,600 | 3,496,092 | ||||||
Wabtec Corp. | 852 | 61,139 | ||||||
|
| |||||||
3,557,231 | ||||||||
|
| |||||||
Media—2.0% |
| |||||||
Comcast Corp., Class A | 162,600 | 6,874,728 | ||||||
|
| |||||||
Metals & Mining—1.1% |
| |||||||
Reliance Steel & Aluminum Co. | 38,611 | 3,653,373 | ||||||
|
| |||||||
Multi-Line Retail—1.1% |
| |||||||
Target Corp. | 42,564 | 3,686,468 | ||||||
|
| |||||||
Multi-Utilities—1.9% |
| |||||||
Public Service Enterprise Group, Inc. | 110,400 | 6,493,728 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—11.1% |
| |||||||
Chevron Corp. | 71,500 | 8,897,460 | ||||||
ConocoPhillips | 111,800 | 6,819,800 | ||||||
Kinder Morgan, Inc. | 180,722 | 3,773,475 | ||||||
Marathon Oil Corp. | 217,592 | 3,091,982 | ||||||
Royal Dutch Shell PLC, Class A ADR | 57,308 | 3,729,032 | ||||||
TC Energy Corp. | 70,947 | 3,513,296 | ||||||
Total S.A. ADR | 60,800 | 3,392,032 | ||||||
Valero Energy Corp. | 61,428 | 5,258,851 | ||||||
|
| |||||||
38,475,928 | ||||||||
|
| |||||||
Pharmaceuticals—8.1% |
| |||||||
Bristol-Myers Squibb Co. | 52,297 | 2,371,669 | ||||||
Johnson & Johnson | 60,109 | 8,371,982 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 81 |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
Merck & Co., Inc. | 80,659 | $ | 6,763,257 | |||||
Pfizer, Inc. | 154,000 | 6,671,280 | ||||||
Roche Holding AG ADR | 111,000 | 3,896,100 | ||||||
|
| |||||||
28,074,288 | ||||||||
|
| |||||||
Road & Rail—1.9% |
| |||||||
Kansas City Southern | 28,100 | 3,423,142 | ||||||
Union Pacific Corp. | 19,100 | 3,230,001 | ||||||
|
| |||||||
6,653,143 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—4.4% |
| |||||||
Broadcom, Inc. | 17,346 | 4,993,220 | ||||||
Intel Corp. | 139,000 | 6,653,930 | ||||||
KLA-Tencor Corp. | 29,717 | 3,512,549 | ||||||
|
| |||||||
15,159,699 | ||||||||
|
| |||||||
Software—2.6% |
| |||||||
Microsoft Corp. | 38,320 | 5,133,347 | ||||||
Oracle Corp. | 68,500 | 3,902,445 | ||||||
|
| |||||||
9,035,792 | ||||||||
|
| |||||||
Specialty Retail—2.6% |
| |||||||
Best Buy Co., Inc. | 27,585 | 1,923,502 | ||||||
Lowe’s Cos., Inc. | 70,285 | 7,092,459 | ||||||
|
| |||||||
9,015,961 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—0.9% |
| |||||||
Apple, Inc. | 15,500 | 3,067,760 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods—1.0% |
| |||||||
Columbia Sportswear Co. | 35,018 | 3,507,403 | ||||||
|
| |||||||
Tobacco—1.8% |
| |||||||
Philip Morris International, Inc. | 79,700 | 6,258,841 | ||||||
|
| |||||||
Total Investments(cost—$326,345,995)—99.7% |
| 344,382,417 | ||||||
|
| |||||||
Other assets less liabilities—0.3% | 1,148,318 | |||||||
|
| |||||||
Net Assets—100.0% | $345,530,735 | |||||||
|
|
Notes to Schedule of Investments:
(a)Non-income producing.
Glossary:
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
AllianzGI NFJ Mid-Cap Value Fund
Shares | Value | |||||||
Common Stock—99.4% |
| |||||||
Aerospace & Defense—4.5% |
| |||||||
Curtiss-Wright Corp. | 58,713 | $7,464,184 | ||||||
Huntington Ingalls Industries, Inc. | 57,340 | 12,886,592 | ||||||
L3Harris Technologies, Inc. | 65,130 | 12,318,037 | ||||||
Northrop Grumman Corp. | 43,607 | 14,089,858 | ||||||
Raytheon Co. | 67,554 | 11,746,289 | ||||||
|
| |||||||
58,504,960 | ||||||||
|
| |||||||
Air Freight & Logistics—0.9% |
| |||||||
FedEx Corp. | 71,340 | 11,713,315 | ||||||
|
| |||||||
Auto Components—1.5% |
| |||||||
Gentex Corp. | 474,816 | 11,685,222 | ||||||
Lear Corp. | 57,660 | 8,030,308 | ||||||
|
| |||||||
19,715,530 | ||||||||
|
| |||||||
Banks—8.5% |
| |||||||
Chemical Financial Corp. | 312,988 | 12,866,937 | ||||||
Citizens Financial Group, Inc. | 358,000 | 12,658,880 | ||||||
Comerica, Inc. | 182,960 | 13,290,214 | ||||||
East West Bancorp, Inc. | 290,660 | 13,594,168 | ||||||
Fifth Third Bancorp | 479,210 | 13,369,959 | ||||||
First Republic Bank | 135,370 | 13,218,880 | ||||||
KeyCorp | 378,590 | 6,719,973 | ||||||
M&T Bank Corp. | 78,857 | 13,411,210 | ||||||
Regions Financial Corp. | 832,620 | 12,439,343 | ||||||
|
| |||||||
111,569,564 | ||||||||
|
| |||||||
Beverages—1.5% |
| |||||||
Coca-Cola European Partners PLC | 224,890 | 12,706,285 | ||||||
Constellation Brands, Inc., Class A | 33,404 | 6,578,584 | ||||||
|
| |||||||
19,284,869 | ||||||||
|
| |||||||
Biotechnology—1.0% |
| |||||||
Grifols S.A. ADR | 597,033 | 12,597,396 | ||||||
|
| |||||||
Capital Markets—4.1% |
| |||||||
Ameriprise Financial, Inc. | 45,362 | 6,584,748 | ||||||
Cboe Global Markets, Inc. | 120,061 | 12,441,922 | ||||||
Raymond James Financial, Inc. | 141,340 | 11,950,297 | ||||||
State Street Corp. | 198,390 | 11,121,743 | ||||||
TD Ameritrade Holding Corp. | 240,725 | 12,016,992 | ||||||
|
| |||||||
54,115,702 | ||||||||
|
| |||||||
Chemicals—1.9% |
| |||||||
Celanese Corp. | 120,030 | 12,939,234 | ||||||
LyondellBasell Industries NV, Class A | 144,540 | 12,449,230 | ||||||
|
| |||||||
25,388,464 | ||||||||
|
| |||||||
Commercial Services & Supplies—1.7% |
| |||||||
IAA, Inc. (a) | 226,630 | 8,788,711 | ||||||
KAR Auction Services, Inc. | 226,630 | 5,665,750 | ||||||
Tetra Tech, Inc. | 93,125 | 7,314,969 | ||||||
|
| |||||||
21,769,430 | ||||||||
|
| |||||||
Communications Equipment—1.1% |
| |||||||
Motorola Solutions, Inc. | 85,270 | 14,217,067 | ||||||
|
| |||||||
Construction & Engineering—1.2% |
| |||||||
EMCOR Group, Inc. | 185,603 | 16,351,624 | ||||||
|
| |||||||
Consumer Finance—0.9% |
| |||||||
Discover Financial Services | 156,490 | 12,142,059 | ||||||
|
|
Shares | Value | |||||||
Containers & Packaging—2.0% |
| |||||||
Avery Dennison Corp. | 122,398 | $ | 14,159,001 | |||||
Packaging Corp. of America | 130,280 | 12,418,289 | ||||||
|
| |||||||
26,577,290 | ||||||||
|
| |||||||
Distributors—0.7% |
| |||||||
Genuine Parts Co. | 84,810 | 8,784,620 | ||||||
|
| |||||||
Electric Utilities—4.0% |
| |||||||
Edison International | 100,100 | 6,747,741 | ||||||
Evergy, Inc. | 218,158 | 13,122,204 | ||||||
Eversource Energy | 140,680 | 10,657,917 | ||||||
Pinnacle West Capital Corp. | 138,670 | 13,047,460 | ||||||
Southern Co. | 174,494 | 9,646,028 | ||||||
|
| |||||||
53,221,350 | ||||||||
|
| |||||||
Electrical Equipment—2.0% |
| |||||||
AMETEK, Inc. | 148,225 | 13,464,759 | ||||||
EnerSys | 96,900 | 6,637,650 | ||||||
Hubbell, Inc. | 52,040 | 6,786,016 | ||||||
|
| |||||||
26,888,425 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—0.8% |
| |||||||
Amphenol Corp., Class A | 116,520 | 11,178,929 | ||||||
|
| |||||||
Entertainment—0.5% |
| |||||||
Activision Blizzard, Inc. | 133,456 | 6,299,123 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—7.3% |
| |||||||
Boston Properties, Inc. | 88,793 | 11,454,297 | ||||||
CoreSite Realty Corp. | 114,740 | 13,214,606 | ||||||
Equinix, Inc. | 25,200 | 12,708,108 | ||||||
Extra Space Storage, Inc. | 58,824 | 6,241,226 | ||||||
Lamar Advertising Co., Class A | 104,070 | 8,399,490 | ||||||
Mid-America Apartment Communities, Inc. | 107,130 | 12,615,629 | ||||||
National Health Investors, Inc. | 157,240 | 12,269,437 | ||||||
Prologis, Inc. | 166,310 | 13,321,431 | ||||||
Public Storage | 26,390 | 6,285,306 | ||||||
|
| |||||||
96,509,530 | ||||||||
|
| |||||||
Food Products—4.4% |
| |||||||
Archer-Daniels-Midland Co. | 271,500 | 11,077,200 | ||||||
Hershey Co. | 93,010 | 12,466,130 | ||||||
Ingredion, Inc. | 114,430 | 9,439,331 | ||||||
Kellogg Co. | 214,649 | 11,498,747 | ||||||
Lamb Weston Holdings, Inc. | 204,248 | 12,941,153 | ||||||
|
| |||||||
57,422,561 | ||||||||
|
| |||||||
Gas Utilities—1.8% |
| |||||||
Southwest Gas Holdings, Inc. (a) | 144,755 | 12,972,943 | ||||||
UGI Corp. | 204,800 | 10,938,368 | ||||||
|
| |||||||
23,911,311 | ||||||||
|
| |||||||
Healthcare Equipment & Supplies—1.0% |
| |||||||
STERIS PLC | 85,890 | 12,787,303 | ||||||
|
| |||||||
Healthcare Providers & Services—3.2% |
| |||||||
Encompass Health Corp. | 202,400 | 12,824,064 | ||||||
Humana, Inc. | 22,234 | 5,898,680 | ||||||
Quest Diagnostics, Inc. | 130,281 | 13,263,909 | ||||||
Universal Health Services, Inc., Class B | 72,850 | 9,498,911 | ||||||
|
| |||||||
41,485,564 | ||||||||
|
|
82 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
Hotels, Restaurants & Leisure—3.2% |
| |||||||
Aramark | 202,471 | $ | 7,301,104 | |||||
Cedar Fair L.P. | 278,220 | 13,268,312 | ||||||
Royal Caribbean Cruises Ltd. | 95,400 | 11,563,434 | ||||||
Yum China Holdings, Inc. | 219,919 | 10,160,258 | ||||||
|
| |||||||
42,293,108 | ||||||||
|
| |||||||
Household Durables—0.5% |
| |||||||
PulteGroup, Inc. | 202,054 | 6,388,947 | ||||||
|
| |||||||
Insurance—7.4% |
| |||||||
Allstate Corp. | 127,720 | 12,987,847 | ||||||
American Financial Group, Inc. | 124,180 | 12,724,725 | ||||||
Aon PLC | 38,840 | 7,495,343 | ||||||
Hanover Insurance Group, Inc. | 103,257 | 13,247,873 | ||||||
Lincoln National Corp. | 191,800 | 12,361,510 | ||||||
Progressive Corp. | 154,450 | 12,345,188 | ||||||
Prudential Financial, Inc. | 124,990 | 12,623,990 | ||||||
Reinsurance Group of America, Inc. | 84,063 | 13,116,350 | ||||||
|
| |||||||
96,902,826 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail—0.9% |
| |||||||
eBay, Inc. | 304,678 | 12,034,781 | ||||||
|
| |||||||
IT Services—4.2% |
| |||||||
Amdocs Ltd. | 234,164 | 14,539,243 | ||||||
Broadridge Financial Solutions, Inc. | 72,599 | 9,269,440 | ||||||
Fidelity National Information Services, Inc. | 136,760 | 16,777,717 | ||||||
MAXIMUS, Inc. | 103,580 | 7,513,693 | ||||||
Science Applications International Corp. | 84,943 | 7,352,666 | ||||||
|
| |||||||
55,452,759 | ||||||||
|
| |||||||
Life Sciences Tools & Services—2.1% |
| |||||||
Agilent Technologies, Inc. | 183,681 | 13,715,461 | ||||||
PerkinElmer, Inc. | 143,236 | 13,799,356 | ||||||
|
| |||||||
27,514,817 | ||||||||
|
| |||||||
Machinery—3.4% |
| |||||||
Altra Industrial Motion Corp. | 342,950 | 12,305,046 | ||||||
Crane Co. | 154,280 | 12,873,123 | ||||||
PACCAR, Inc. | 179,430 | 12,857,954 | ||||||
Toro Co. | 97,713 | 6,537,000 | ||||||
|
| |||||||
44,573,123 | ||||||||
|
| |||||||
Metals & Mining—1.9% |
| |||||||
Nucor Corp. | 249,490 | 13,746,899 | ||||||
Southern Copper Corp. | 274,221 | 10,653,486 | ||||||
|
| |||||||
24,400,385 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs)—0.5% |
| |||||||
Annaly Capital Management, Inc. | 704,337 | 6,430,597 | ||||||
|
| |||||||
Multi-Line Retail—0.4% |
| |||||||
Target Corp. | 60,735 | 5,260,258 | ||||||
|
| |||||||
Multi-Utilities—2.1% |
| |||||||
CenterPoint Energy, Inc. | 327,601 | 9,379,217 | ||||||
Dominion Energy, Inc. | 153,850 | 11,895,682 | ||||||
Sempra Energy | 51,100 | 7,023,184 | ||||||
|
| |||||||
28,298,083 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels—6.4% |
| |||||||
Concho Resources, Inc. | 61,849 | 6,381,580 | ||||||
ConocoPhillips | 200,715 | 12,243,615 | ||||||
Devon Energy Corp. | 205,970 | 5,874,264 |
Shares | Value | |||||||
Diamondback Energy, Inc. | 57,800 | $ | 6,298,466 | |||||
EOG Resources, Inc. | 70,490 | 6,566,849 | ||||||
Magellan Midstream Partners L.P. | 221,840 | 14,197,760 | ||||||
Marathon Oil Corp. | 481,330 | 6,839,699 | ||||||
TC Energy Corp. | 273,790 | 13,558,081 | ||||||
Valero Energy Corp. | 138,990 | 11,898,934 | ||||||
|
| |||||||
83,859,248 | ||||||||
|
| |||||||
Professional Services—0.8% |
| |||||||
TransUnion | 140,903 | 10,357,780 | ||||||
|
| |||||||
Road & Rail—3.0% |
| |||||||
JB Hunt Transport Services, Inc. | 135,330 | 12,370,515 | ||||||
Kansas City Southern | 108,060 | 13,163,869 | ||||||
Norfolk Southern Corp. | 66,650 | 13,285,345 | ||||||
|
| |||||||
38,819,729 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—2.0% |
| |||||||
Applied Materials, Inc. | 248,520 | 11,161,033 | ||||||
Monolithic Power Systems, Inc. | 50,700 | 6,884,046 | ||||||
NXP Semiconductors NV | 80,669 | 7,874,101 | ||||||
|
| |||||||
25,919,180 | ||||||||
|
| |||||||
Software—1.0% |
| |||||||
SS&C Technologies Holdings, Inc. | 228,044 | 13,137,615 | ||||||
|
| |||||||
Specialty Retail—1.6% |
| |||||||
Best Buy Co., Inc. | 117,152 | 8,169,009 | ||||||
Tractor Supply Co. | 118,990 | 12,946,112 | ||||||
|
| |||||||
21,115,121 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods—1.5% |
| |||||||
Columbia Sportswear Co. | 132,175 | 13,238,648 | ||||||
Tapestry, Inc. | 213,676 | 6,779,939 | ||||||
|
| |||||||
20,018,587 | ||||||||
|
| |||||||
Total Common Stock (cost—$1,148,600,168) | 1,305,212,930 | |||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—1.6% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $20,909,871; collateralized by U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $21,333,298 including accrued interest |
| |||||||
(cost—$20,909,000) | $20,909 | 20,909,000 | ||||||
|
| |||||||
Total Investments(cost—$1,169,509,168)—101.0% |
| 1,326,121,930 | ||||||
|
| |||||||
Liabilities in excess of other assets—(1.0)% | (13,320,770 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $1,312,801,160 | |||||||
|
|
Notes to Schedule of Investments:
(a)Non-income producing.
Glossary:
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
AllianzGI NFJ Small-Cap Value Fund
Shares | Value | |||||||
Common Stock—100.7% |
| |||||||
Aerospace & Defense—2.4% |
| |||||||
CAE, Inc. | 394,360 | $10,592,509 | ||||||
Curtiss-Wright Corp. | 115,330 | 14,661,903 | ||||||
|
| |||||||
25,254,412 | ||||||||
|
| |||||||
Auto Components—1.1% |
| |||||||
Gentex Corp. | 469,150 | 11,545,781 | ||||||
|
| |||||||
Banks—21.6% |
| |||||||
Associated Banc-Corp | 554,900 | 11,730,586 | ||||||
Atlantic Union Bankshares Corp. | 343,780 | 12,145,747 | ||||||
BancFirst Corp. | 97,940 | 5,451,340 | ||||||
Berkshire Hills Bancorp, Inc. | 215,764 | 6,772,832 | ||||||
CenterState Bank Corp. | 528,753 | 12,177,182 | ||||||
East West Bancorp, Inc. | 237,630 | 11,113,955 | ||||||
Enterprise Financial Services Corp. | 287,550 | 11,962,080 | ||||||
First Hawaiian, Inc. | 412,520 | 10,671,892 | ||||||
First Interstate Bancsystem, Inc., Class A | 306,608 | 12,144,743 | ||||||
FNB Corp. | 1,157,525 | 13,624,069 | ||||||
Great Western Bancorp, Inc. | 375,175 | 13,401,251 | ||||||
Heritage Commerce Corp. | 522,460 | 6,400,135 | ||||||
IBERIABANK Corp. | 165,488 | 12,552,265 | ||||||
Renasant Corp. | 357,040 | 12,832,018 | ||||||
Simmons First National Corp., Class A | 482,500 | 11,222,950 | ||||||
South State Corp. | 169,530 | 12,489,275 | ||||||
TCF Financial Corp. | 601,390 | 12,502,898 | ||||||
Towne Bank | 59,810 | 1,631,617 | ||||||
Umpqua Holdings Corp. | 666,330 | 11,054,415 | ||||||
United Community Banks, Inc. | 448,190 | 12,800,307 | ||||||
Wintrust Financial Corp. | 167,620 | 12,263,079 | ||||||
|
| |||||||
226,944,636 | ||||||||
|
| |||||||
Building Products—1.0% |
| |||||||
Universal Forest Products, Inc. | 278,702 | 10,607,398 | ||||||
|
| |||||||
Capital Markets—2.9% |
| |||||||
AllianceBernstein Holding L.P. | 215,142 | 6,394,020 | ||||||
Houlihan Lokey, Inc. | 275,220 | 12,255,547 | ||||||
LPL Financial Holdings, Inc. | 150,200 | 12,251,814 | ||||||
|
| |||||||
30,901,381 | ||||||||
|
| |||||||
Chemicals—2.8% |
| |||||||
Cabot Corp. | 276,140 | 13,174,639 | ||||||
Innophos Holdings, Inc. | 117,608 | 3,423,569 | ||||||
Rentech Nitrogen Partners L.P. (a)(b)(c) | 555,768 | 56 | ||||||
Stepan Co. | 135,428 | 12,447,187 | ||||||
|
| |||||||
29,045,451 | ||||||||
|
| |||||||
Commercial Services & Supplies—4.1% |
| |||||||
Ennis, Inc. | 438,021 | 8,988,191 | ||||||
Interface, Inc. | 582,055 | 8,922,903 | ||||||
McGrath RentCorp | 194,690 | 12,099,984 | ||||||
Tetra Tech, Inc. | 167,104 | 13,126,019 | ||||||
|
| |||||||
43,137,097 | ||||||||
|
| |||||||
Construction & Engineering—2.6% |
| |||||||
Comfort Systems USA, Inc. | 247,217 | 12,605,595 | ||||||
EMCOR Group, Inc. | 161,839 | 14,258,016 | ||||||
|
| |||||||
26,863,611 | ||||||||
|
|
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 83 |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
Containers & Packaging—1.3% |
| |||||||
Silgan Holdings, Inc. | 444,646 | $ | 13,606,168 | |||||
|
| |||||||
Electrical Equipment—2.5% |
| |||||||
EnerSys | 117,191 | 8,027,584 | ||||||
Hubbell, Inc. | 54,250 | 7,074,200 | ||||||
Regal Beloit Corp. | 129,210 | 10,557,749 | ||||||
|
| |||||||
25,659,533 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—5.7% |
| |||||||
Dolby Laboratories, Inc., Class A | 188,350 | 12,167,410 | ||||||
FLIR Systems, Inc. | 244,350 | 13,219,335 | ||||||
Methode Electronics, Inc. | 471,102 | 13,459,384 | ||||||
SYNNEX Corp. | 112,830 | 11,102,472 | ||||||
Vishay Intertechnology, Inc. | 610,690 | 10,088,599 | ||||||
|
| |||||||
60,037,200 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—8.6% |
| |||||||
American Assets Trust, Inc. | 117,299 | 5,527,129 | ||||||
CoreSite Realty Corp. | 115,720 | 13,327,473 | ||||||
CyrusOne, Inc. | 225,464 | 13,013,782 | ||||||
First Industrial Realty Trust, Inc. | 200,075 | 7,350,756 | ||||||
Hudson Pacific Properties, Inc. | 331,959 | 11,044,276 | ||||||
Life Storage, Inc. | 137,330 | 13,057,336 | ||||||
Monmouth Real Estate Investment Corp. | 976,368 | 13,229,786 | ||||||
National Health Investors, Inc. | 169,780 | 13,247,933 | ||||||
|
| |||||||
89,798,471 | ||||||||
|
| |||||||
Food Products—2.1% |
| |||||||
Ingredion, Inc. | 133,000 | 10,971,170 | ||||||
Lamb Weston Holdings, Inc. | 171,227 | 10,848,943 | ||||||
|
| |||||||
21,820,113 | ||||||||
|
| |||||||
Gas Utilities—2.4% |
| |||||||
National Fuel Gas Co. | 212,900 | 11,230,475 | ||||||
Southwest Gas Holdings, Inc. (c) | 153,510 | 13,757,566 | ||||||
|
| |||||||
24,988,041 | ||||||||
|
| |||||||
Healthcare Equipment & Supplies—1.1% |
| |||||||
Hill-Rom Holdings, Inc. | 112,760 | 11,796,951 | ||||||
|
| |||||||
Healthcare Providers & Services—1.2% |
| |||||||
Encompass Health Corp. | 198,319 | 12,565,492 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure—2.1% |
| |||||||
Cedar Fair L.P. | 224,130 | 10,688,760 | ||||||
Ruth’s Hospitality Group, Inc. | 497,975 | 11,309,012 | ||||||
|
| |||||||
21,997,772 | ||||||||
|
| |||||||
Household Durables—1.9% |
| |||||||
La-Z-Boy, Inc. | 260,310 | 7,981,105 | ||||||
MDC Holdings, Inc. | 364,761 | 11,956,865 | ||||||
|
| |||||||
19,937,970 | ||||||||
|
| |||||||
Household Products—0.6% |
| |||||||
WD-40 Co. | 39,277 | 6,246,614 | ||||||
|
| |||||||
Independent Power Producers & Energy Traders—1.0% |
| |||||||
Capital Power Corp. | 457,951 | 10,543,486 | ||||||
|
| |||||||
Insurance—4.6% |
| |||||||
American Financial Group, Inc. | 119,130 | 12,207,251 | ||||||
CNO Financial Group, Inc. | 737,800 | 12,306,504 |
Shares | Value | |||||||
First American Financial Corp. | 249,340 | $ | 13,389,558 | |||||
Old Republic International Corp. | 475,120 | 10,633,186 | ||||||
|
| |||||||
48,536,499 | ||||||||
|
| |||||||
IT Services—3.0% |
| |||||||
MAXIMUS, Inc. | 170,493 | 12,367,562 | ||||||
Perspecta, Inc. | 301,694 | 7,062,656 | ||||||
Science Applications International Corp. | 142,251 | 12,313,247 | ||||||
|
| |||||||
31,743,465 | ||||||||
|
| |||||||
Life Sciences Tools & Services—1.2% |
| |||||||
Bruker Corp. | 258,450 | 12,909,577 | ||||||
|
| |||||||
Machinery—3.3% |
| |||||||
Crane Co. | 133,890 | 11,171,781 | ||||||
ITT, Inc. | 194,835 | 12,757,796 | ||||||
Toro Co. | 163,912 | 10,965,713 | ||||||
|
| |||||||
34,895,290 | ||||||||
|
| |||||||
Media—1.1% |
| |||||||
Meredith Corp. | 217,102 | 11,953,636 | ||||||
|
| |||||||
Metals & Mining—1.0% |
| |||||||
Steel Dynamics, Inc. | 353,860 | 10,686,572 | ||||||
|
| |||||||
Multi-Utilities—1.2% |
| |||||||
Black Hills Corp. | 162,970 | 12,739,365 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—6.3% |
| |||||||
Alliance Resource Partners L.P. | 79,960 | 1,357,721 | ||||||
Cimarex Energy Co. | 135,670 | 8,049,301 | ||||||
CNX Midstream Partners L.P. | 715,251 | 10,049,277 | ||||||
Delek Logistics Partners L.P. | 181,763 | 5,816,416 | ||||||
Enerplus Corp. | 1,513,600 | 11,397,408 | ||||||
Murphy Oil Corp. | 230,510 | 5,682,072 | ||||||
Parkland Fuel Corp. | 335,959 | 10,659,460 | ||||||
Ship Finance International Ltd. | 1,056,130 | 13,212,186 | ||||||
|
| |||||||
66,223,841 | ||||||||
|
| |||||||
Professional Services—2.0% |
| |||||||
ICF International, Inc. | 156,340 | 11,381,552 | ||||||
Korn Ferry | 250,252 | 10,027,598 | ||||||
|
| |||||||
21,409,150 | ||||||||
|
| |||||||
Road & Rail—1.1% |
| |||||||
Werner Enterprises, Inc. | 361,227 | 11,226,935 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—2.9% |
| |||||||
Cabot Microelectronics Corp. | 113,284 | 12,470,303 | ||||||
MKS Instruments, Inc. | 76,453 | 5,954,924 | ||||||
Monolithic Power Systems, Inc. | 86,060 | 11,685,227 | ||||||
|
| |||||||
30,110,454 | ||||||||
|
| |||||||
Specialty Retail—0.5% |
| |||||||
Designer Brands, Inc., Class A | 289,890 | 5,557,191 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods—1.1% |
| |||||||
Columbia Sportswear Co. | 119,385 | 11,957,602 | ||||||
|
| |||||||
Thrifts & Mortgage Finance—1.3% |
| |||||||
Washington Federal, Inc. | 380,140 | 13,278,290 | ||||||
|
|
Shares | Value | |||||||
Tobacco—1.1% |
| |||||||
Universal Corp. | 192,070 | $ | 11,672,094 | |||||
|
| |||||||
Total Common Stock (cost—$952,511,190) |
| 1,058,197,539 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—1.2% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $13,137,547; collateralized by U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $13,405,796 including accrued interest |
| |||||||
(cost—$13,137,000) | $13,137 | 13,137,000 | ||||||
|
| |||||||
Total Investments(cost—$965,648,190)—101.9% |
| 1,071,334,539 | ||||||
|
| |||||||
Liabilities in excess of other assets—(1.9)% | (19,716,525 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $1,051,618,014 | |||||||
|
|
Notes to Schedule of Investments:
(a) Fair-Valued—Security with a value of $56, representing less than 0.05% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(b) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(c)Non-income producing.
Glossary:
REIT—Real Estate Investment Trust
84 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
AllianzGI Small-Cap Fund
Shares | Value | |||||||
Common Stock—98.3% |
| |||||||
Aerospace & Defense—1.7% |
| |||||||
Axon Enterprise, Inc. (c) | 5,430 | $348,660 | ||||||
BWX Technologies, Inc. | 3,640 | 189,644 | ||||||
HEICO Corp. | 1,255 | 167,931 | ||||||
Kratos Defense & Security Solutions, Inc. (c) | 18,230 | 417,285 | ||||||
Moog, Inc., Class A | 8,575 | 802,706 | ||||||
|
| |||||||
1,926,226 | ||||||||
|
| |||||||
Airlines—0.3% |
| |||||||
Spirit Airlines, Inc. (c) | 6,345 | 302,847 | ||||||
|
| |||||||
Auto Components—1.0% |
| |||||||
Dana, Inc. | 37,840 | 754,530 | ||||||
Fox Factory Holding Corp. (c) | 3,052 | 251,820 | ||||||
Stoneridge, Inc. (c) | 4,085 | 128,882 | ||||||
|
| |||||||
1,135,232 | ||||||||
|
| |||||||
Banks—2.3% |
| |||||||
BankFinancial Corp. | 4,910 | 68,691 | ||||||
Carolina Financial Corp. | 1,507 | 52,881 | ||||||
CBTX, Inc. | 2,665 | 74,993 | ||||||
First BanCorp | 81,210 | 896,558 | ||||||
First Financial Bankshares, Inc. | 29,550 | 909,844 | ||||||
First Foundation, Inc. | 3,664 | 49,244 | ||||||
HarborOne Bancorp, Inc. (c) | 3,670 | 68,739 | ||||||
IBERIABANK Corp. | 2,605 | 197,589 | ||||||
Preferred Bank | 995 | 47,014 | ||||||
RBB Bancorp | 3,380 | 65,369 | ||||||
Southern National Bancorp of Virginia, Inc. | 5,305 | 81,220 | ||||||
Veritex Holdings, Inc. | 2,187 | 56,753 | ||||||
|
| |||||||
2,568,895 | ||||||||
|
| |||||||
Beverages—1.1% |
| |||||||
Boston Beer Co., Inc., Class A (c) | 2,800 | 1,057,728 | ||||||
Craft Brew Alliance, Inc. (c) | 5,065 | 70,859 | ||||||
MGP Ingredients, Inc. | 1,136 | 75,328 | ||||||
Primo Water Corp. (c) | 3,798 | 46,716 | ||||||
|
| |||||||
1,250,631 | ||||||||
|
| |||||||
Biotechnology—5.7% |
| |||||||
Albireo Pharma, Inc. (c) | 601 | 19,376 | ||||||
Amicus Therapeutics, Inc. (c) | 6,492 | 81,020 | ||||||
Arena Pharmaceuticals, Inc. (c) | 1,429 | 83,782 | ||||||
ArQule, Inc. (c) | 3,881 | 42,730 | ||||||
Array BioPharma, Inc. (c) | 3,658 | 169,475 | ||||||
Arrowhead Pharmaceuticals, Inc. (c) | 5,384 | 142,676 | ||||||
Audentes Therapeutics, Inc. (c) | 4,155 | 157,308 | ||||||
BioCryst Pharmaceuticals, Inc. (c) | 4,126 | 15,638 | ||||||
Biohaven Pharmaceutical Holding Co., Ltd. (c) | 891 | 39,017 | ||||||
BioSpecifics Technologies Corp. (c) | 5,242 | 313,000 | ||||||
Blueprint Medicines Corp. (c) | 1,838 | 173,379 | ||||||
Cara Therapeutics, Inc. (c) | 1,488 | 31,992 | ||||||
Corbus Pharmaceuticals Holdings, Inc. (c) | 2,059 | 14,269 | ||||||
CRISPR Therapeutics AG (c) | 3,435 | 161,789 | ||||||
Dicerna Pharmaceuticals, Inc. (c) | 2,123 | 33,437 | ||||||
Fate Therapeutics, Inc. (c) | 2,141 | 43,462 | ||||||
Genomic Health, Inc. (c) | 14,240 | 828,341 | ||||||
Global Blood Therapeutics, Inc. (c) | 1,775 | 93,365 | ||||||
GlycoMimetics, Inc. (c) | 1,786 | 21,289 |
Shares | Value | |||||||
Halozyme Therapeutics, Inc. (c) | 51,590 | $ | 886,316 | |||||
Intellia Therapeutics, Inc. (c) | 8,443 | 138,212 | ||||||
Invitae Corp. (c) | 25,137 | 590,720 | ||||||
Iovance Biotherapeutics, Inc. (c) | 6,487 | 159,061 | ||||||
Kindred Biosciences, Inc. (c) | 3,868 | 32,220 | ||||||
Kura Oncology, Inc. (c) | 1,953 | 38,455 | ||||||
MacroGenics, Inc. (c) | 1,653 | 28,051 | ||||||
Natera, Inc. (c) | 21,279 | 586,875 | ||||||
Progenics Pharmaceuticals, Inc. (c) | 3,900 | 24,063 | ||||||
PTC Therapeutics, Inc. (c) | 2,783 | 125,235 | ||||||
REGENXBIO, Inc. (c) | 2,626 | 134,898 | ||||||
T2 Biosystems, Inc. (c) | 7,306 | 12,274 | ||||||
uniQure NV (c) | 600 | 46,890 | ||||||
Vanda Pharmaceuticals, Inc. (c) | 2,105 | 29,659 | ||||||
Veracyte, Inc. (c) | 18,491 | 527,178 | ||||||
Vericel Corp. (c) | 21,736 | 410,593 | ||||||
Viking Therapeutics, Inc. (c) | 3,297 | 27,365 | ||||||
Voyager Therapeutics, Inc. (c) | 1,421 | 38,680 | ||||||
|
| |||||||
6,302,090 | ||||||||
|
| |||||||
Building Products—0.3% |
| |||||||
PGT Innovations, Inc. (c) | 2,681 | 44,826 | ||||||
Simpson Manufacturing Co., Inc. | 4,745 | 315,353 | ||||||
|
| |||||||
360,179 | ||||||||
|
| |||||||
Capital Markets—1.2% |
| |||||||
Artisan Partners Asset Management, Inc., Class A | 25,100 | 690,752 | ||||||
Barings BDC, Inc. | 13,830 | 136,087 | ||||||
BlackRock TCP Capital Corp. | 5,325 | 75,881 | ||||||
Golub Capital BDC, Inc. | 15,370 | 273,586 | ||||||
Main Street Capital Corp. | 2,143 | 88,120 | ||||||
Prospect Capital Corp. | 11,905 | 77,740 | ||||||
|
| |||||||
1,342,166 | ||||||||
|
| |||||||
Chemicals—0.6% |
| |||||||
American Vanguard Corp. | 2,380 | 36,676 | ||||||
Balchem Corp. | 690 | 68,979 | ||||||
Ingevity Corp. (c) | 4,096 | 430,776 | ||||||
Westlake Chemical Partners L.P. | 5,735 | 141,024 | ||||||
|
| |||||||
677,455 | ||||||||
|
| |||||||
Commercial Services & Supplies—2.6% |
| |||||||
Brink’s Co. | 3,532 | 286,728 | ||||||
Herman Miller, Inc. | 20,130 | 899,811 | ||||||
MSA Safety, Inc. | 5,455 | 574,902 | ||||||
Tetra Tech, Inc. | 14,540 | 1,142,117 | ||||||
|
| |||||||
2,903,558 | ||||||||
|
| |||||||
Communications Equipment—0.6% |
| |||||||
Acacia Communications, Inc. (c) | 6,607 | 311,586 | ||||||
EchoStar Corp., Class A (c) | 2,390 | 105,925 | ||||||
InterDigital, Inc. | 1,045 | 67,298 | ||||||
NetScout Systems, Inc. (c) | 2,740 | 69,569 | ||||||
Viavi Solutions, Inc. (c) | 5,505 | 73,161 | ||||||
|
| |||||||
627,539 | ||||||||
|
| |||||||
Construction & Engineering—0.7% |
| |||||||
EMCOR Group, Inc. | 6,600 | 581,460 | ||||||
NV5 Global, Inc. (c) | 1,448 | 117,867 | ||||||
Sterling Construction Co., Inc. (c) | 4,590 | 61,598 | ||||||
|
| |||||||
760,925 | ||||||||
|
| |||||||
Construction Materials—0.1% |
| |||||||
U.S. Concrete, Inc. (c) | 1,148 | 57,044 | ||||||
|
|
Shares | Value | |||||||
Containers & Packaging—0.1% |
| |||||||
Silgan Holdings, Inc. | 3,740 | $ | 114,444 | |||||
|
| |||||||
Diversified Consumer Services—1.4% |
| |||||||
Bright Horizons Family Solutions, Inc. (c) | 3,055 | 460,908 | ||||||
Carriage Services, Inc. | 6,218 | 118,204 | ||||||
Chegg, Inc. (c) | 8,204 | 316,592 | ||||||
Graham Holdings Co., Class B | 200 | 138,006 | ||||||
Grand Canyon Education, Inc. (c) | 665 | 77,818 | ||||||
HyreCar, Inc. | 6,068 | 25,486 | ||||||
OneSpaWorld Holdings Ltd. (c) | 7,105 | 110,128 | ||||||
Strategic Education, Inc. | 1,787 | 318,086 | ||||||
|
| |||||||
1,565,228 | ||||||||
|
| |||||||
Diversified Financial Services—0.3% |
| |||||||
Compass Diversified Holdings | 15,310 | 292,574 | ||||||
|
| |||||||
Diversified Telecommunication Services—0.4% |
| |||||||
Bandwidth, Inc., Class A (c) | 3,018 | 226,410 | ||||||
Pareteum Corp. (c) | 13,378 | 34,917 | ||||||
Vonage Holdings Corp. (c) | 16,758 | 189,868 | ||||||
|
| |||||||
451,195 | ||||||||
|
| |||||||
Electric Utilities—3.1% |
| |||||||
ALLETE, Inc. | 3,080 | 256,287 | ||||||
El Paso Electric Co. | 12,700 | 830,580 | ||||||
Hawaiian Electric Industries, Inc. | 11,975 | 521,511 | ||||||
IDACORP, Inc. | 1,745 | 175,250 | ||||||
Otter Tail Corp. | 1,570 | 82,912 | ||||||
PNM Resources, Inc. | 3,090 | 157,312 | ||||||
Portland General Electric Co. | 26,715 | 1,447,152 | ||||||
|
| |||||||
3,471,004 | ||||||||
|
| |||||||
Electrical Equipment—0.8% |
| |||||||
Atkore International Group, Inc. (c) | 28,300 | 732,121 | ||||||
TPI Composites, Inc. (c) | 7,009 | 173,263 | ||||||
|
| |||||||
905,384 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—3.6% |
| |||||||
Fabrinet (c) | 12,690 | 630,312 | ||||||
Methode Electronics, Inc. | 23,700 | 677,109 | ||||||
Napco Security Technologies, Inc. (c) | 11,329 | 336,245 | ||||||
Novanta, Inc. (c) | 8,900 | 839,270 | ||||||
Sanmina Corp. (c) | 22,680 | 686,750 | ||||||
SYNNEX Corp. | 7,755 | 763,092 | ||||||
|
| |||||||
3,932,778 | ||||||||
|
| |||||||
Energy Equipment & Services—0.3% |
| |||||||
DMC Global, Inc. | 4,362 | 276,333 | ||||||
USA Compression Partners L.P. | 4,130 | 73,390 | ||||||
|
| |||||||
349,723 | ||||||||
|
| |||||||
Entertainment—1.3% |
| |||||||
Gaia, Inc. Class A (c) | 3,807 | 28,857 | ||||||
Liberty Media Corp-Liberty Braves, Class A (c) | 5,125 | 142,475 | ||||||
Liberty Media Corp-Liberty Braves, Class C (c) | 5,035 | 140,829 | ||||||
Madison Square Garden Co., Class A (c) | 585 | 163,765 | ||||||
Reading International, Inc., Class A (c) | 8,280 | 107,474 | ||||||
Rosetta Stone, Inc. (c) | 19,707 | 450,896 | ||||||
World Wrestling Entertainment, Inc., Class A | 2,326 | 167,961 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 85 |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
Zynga, Inc., Class A (c) | 43,535 | $ | 266,870 | |||||
|
| |||||||
1,469,127 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)—3.9% |
| |||||||
CareTrust REIT, Inc. | 33,730 | 802,099 | ||||||
Chatham Lodging Trust | 25,820 | 487,223 | ||||||
CoreCivic, Inc. | 36,080 | 749,021 | ||||||
Equity Commonwealth | 12,750 | 414,630 | ||||||
Industrial Logistics Properties Trust | 34,600 | 720,372 | ||||||
Outfront Media, Inc. | 30,905 | 797,040 | ||||||
Ryman Hospitality Properties, Inc. | 4,005 | 324,766 | ||||||
Winthrop Realty Trust (a)(b)(c) | 12,960 | 2,074 | ||||||
|
| |||||||
4,297,225 | ||||||||
|
| |||||||
Food & Staples Retailing—0.5% |
| |||||||
Casey’s General Stores, Inc. | 740 | 115,432 | ||||||
Performance Food Group Co. (c) | 8,137 | 325,724 | ||||||
PriceSmart, Inc. | 1,165 | 59,555 | ||||||
Weis Markets, Inc. | 1,865 | 67,905 | ||||||
|
| |||||||
568,616 | ||||||||
|
| |||||||
Food Products—2.5% |
| |||||||
Cal-Maine Foods, Inc. | 1,775 | 74,053 | ||||||
Conagra Brands, Inc. | 2,967 | 78,685 | ||||||
Flowers Foods, Inc. | 8,945 | 208,150 | ||||||
Freshpet, Inc. (c) | 7,665 | 348,834 | ||||||
J&J Snack Foods Corp. | 2,030 | 326,729 | ||||||
John B Sanfilippo & Son, Inc. | 1,748 | 139,298 | ||||||
Lancaster Colony Corp. | 995 | 147,857 | ||||||
Sanderson Farms, Inc. | 5,100 | 696,456 | ||||||
Simply Good Foods Co. (c) | 19,761 | 475,845 | ||||||
Tootsie Roll Industries, Inc. | 6,300 | 232,659 | ||||||
|
| |||||||
2,728,566 | ||||||||
|
| |||||||
Gas Utilities—1.0% |
| |||||||
Northwest Natural Holding Co. | 1,015 | 70,543 | ||||||
ONE Gas, Inc. | 835 | 75,400 | ||||||
Southwest Gas Holdings, Inc. | 8,800 | 788,656 | ||||||
Suburban Propane Partners L.P. | 5,510 | 133,838 | ||||||
|
| |||||||
1,068,437 | ||||||||
|
| |||||||
Healthcare Equipment & Supplies—5.7% |
| |||||||
Antares Pharma, Inc. (c) | 12,924 | 42,520 | ||||||
Axogen, Inc. (c) | 2,648 | 52,430 | ||||||
BioLife Solutions, Inc. (c) | 3,317 | 56,223 | ||||||
Cerus Corp. (c) | 8,774 | 49,310 | ||||||
CONMED Corp. | 1,005 | 85,998 | ||||||
CryoLife, Inc. (c) | 2,778 | 83,146 | ||||||
CryoPort, Inc. (c) | 18,064 | 330,933 | ||||||
CytoSorbents Corp. (c) | 4,933 | 32,607 | ||||||
Globus Medical, Inc., Class A (c) | 7,865 | 332,690 | ||||||
Haemonetics Corp. (c) | 6,902 | 830,587 | ||||||
Hill-Rom Holdings, Inc. | 4,105 | 429,465 | ||||||
Masimo Corp. (c) | 9,565 | 1,423,463 | ||||||
Merit Medical Systems, Inc. (c) | 7,976 | 475,051 | ||||||
Mesa Laboratories, Inc. | 312 | 76,234 | ||||||
Novocure Ltd. (c) | 5,179 | 327,468 | ||||||
OrthoPediatrics Corp. (c) | 2,051 | 79,989 | ||||||
RTI Surgical Holdings, Inc. (c) | 74,820 | 317,985 | ||||||
Sientra, Inc. (c) | 2,890 | 17,802 | ||||||
STAAR Surgical Co. (c) | 5,369 | 157,741 | ||||||
Surmodics, Inc. (c) | 1,475 | 63,676 | ||||||
Tactile Systems Technology, Inc. (c) | 1,733 | 98,642 | ||||||
Tandem Diabetes Care, Inc. (c) | 5,102 | 329,181 |
Shares | Value | |||||||
Utah Medical Products, Inc. | 2,595 | $ | 248,342 | |||||
ViewRay, Inc. (c) | 29,546 | 260,300 | ||||||
West Pharmaceutical Services, Inc. | 775 | 96,991 | ||||||
|
| |||||||
6,298,774 | ||||||||
|
| |||||||
Healthcare Providers & Services—3.9% |
| |||||||
Addus HomeCare Corp. (c) | 5,998 | 449,550 | ||||||
Amedisys, Inc. (c) | 4,345 | 527,527 | ||||||
BioTelemetry, Inc. (c) | 1,579 | 76,029 | ||||||
Catasys, Inc. (c) | 3,047 | 58,563 | ||||||
Chemed Corp. | 770 | 277,847 | ||||||
Encompass Health Corp. | 2,685 | 170,122 | ||||||
HealthEquity, Inc. (c) | 3,909 | 255,649 | ||||||
Joint Corp. (c) | 3,590 | 65,338 | ||||||
LHC Group, Inc. (c) | 3,871 | 462,894 | ||||||
Premier, Inc., Class A (c) | 2,985 | 116,743 | ||||||
Providence Service Corp. (c) | 1,185 | 67,948 | ||||||
R1 RCM, Inc. (c) | 132,107 | 1,661,906 | ||||||
RadNet, Inc. (c) | 4,156 | 57,311 | ||||||
U.S. Physical Therapy, Inc. | 565 | 69,252 | ||||||
|
| |||||||
4,316,679 | ||||||||
|
| |||||||
Healthcare Technology—1.2% |
| |||||||
Omnicell, Inc. (c) | 5,178 | 445,464 | ||||||
Tabula Rasa HealthCare, Inc. (c) | 6,424 | 320,750 | ||||||
Teladoc Health, Inc. (c) | 7,410 | 492,098 | ||||||
Vocera Communications, Inc. (c) | 2,901 | 92,600 | ||||||
|
| |||||||
1,350,912 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure—2.5% |
| |||||||
Carrols Restaurant Group, Inc. (c) | 5,186 | 46,830 | ||||||
Cedar Fair L.P. | 1,585 | 75,589 | ||||||
Century Casinos, Inc. (c) | 5,726 | 55,542 | ||||||
Choice Hotels International, Inc. | 1,690 | 147,047 | ||||||
Churchill Downs, Inc. | 4,275 | 491,924 | ||||||
Dine Brands Global, Inc. | 3,200 | 305,504 | ||||||
Eldorado Resorts, Inc. (c) | 9,947 | 458,258 | ||||||
Hyatt Hotels Corp., Class A | 7,890 | 600,666 | ||||||
International Speedway Corp., Class A | 2,160 | 96,962 | ||||||
Jack in the Box, Inc. | 1,100 | 89,529 | ||||||
Lindblad Expeditions Holdings, Inc. (c) | 13,105 | 235,235 | ||||||
PlayAGS, Inc. (c) | 9,900 | 192,555 | ||||||
|
| |||||||
2,795,641 | ||||||||
|
| |||||||
Household Durables—1.2% |
| |||||||
Lennar Corp., Class B | 12,965 | 499,282 | ||||||
LGI Homes, Inc. (c) | 919 | 65,644 | ||||||
Taylor Morrison Home Corp., Class A (c) | 36,300 | 760,848 | ||||||
|
| |||||||
1,325,774 | ||||||||
|
| |||||||
Household Products—0.3% |
| |||||||
Central Garden & Pet Co. (c) | 2,745 | 73,978 | ||||||
Central Garden & Pet Co., Class A (c) | 2,790 | 68,746 | ||||||
WD-40 Co. | 1,380 | 219,475 | ||||||
|
| |||||||
362,199 | ||||||||
|
| |||||||
Independent Power Producers & Energy Traders—0.4% |
| |||||||
Ormat Technologies, Inc. | 3,415 | 216,477 | ||||||
TerraForm Power, Inc., Class A | 17,175 | 245,602 | ||||||
|
| |||||||
462,079 | ||||||||
|
|
Shares | Value | |||||||
Insurance—3.5% |
| |||||||
American Equity Investment Life Holding Co. | 22,890 | $ | 621,692 | |||||
American National Insurance Co. | 1,300 | 151,411 | ||||||
AMERISAFE, Inc. | 3,165 | 201,832 | ||||||
Argo Group International Holdings Ltd. | 11,907 | 881,713 | ||||||
Donegal Group, Inc., Class A | 6,885 | 105,134 | ||||||
eHealth, Inc. (c) | 5,505 | 473,981 | ||||||
Enstar Group Ltd. (c) | 565 | 98,468 | ||||||
Investors Title Co. | 445 | 74,315 | ||||||
Kemper Corp. | 5,220 | 450,434 | ||||||
NI Holdings, Inc. (c) | 5,465 | 96,239 | ||||||
ProAssurance Corp. | 3,055 | 110,316 | ||||||
RLI Corp. | 2,840 | 243,416 | ||||||
Safety Insurance Group, Inc. | 1,090 | 103,692 | ||||||
State Auto Financial Corp. | 6,590 | 230,650 | ||||||
|
| |||||||
3,843,293 | ||||||||
|
| |||||||
Interactive Media & Services—0.4% |
| |||||||
QuinStreet, Inc. (c) | 29,897 | 473,867 | ||||||
|
| |||||||
Internet & Direct Marketing Retail—0.1% |
| |||||||
Liberty Expedia Holdings, Inc., Class A (c) | 2,160 | 103,226 | ||||||
|
| |||||||
IT Services—2.9% |
| |||||||
Brightcove, Inc. (c) | 6,236 | 64,418 | ||||||
Carbonite, Inc. (c) | 2,276 | 59,267 | ||||||
CSG Systems International, Inc. | 2,305 | 112,553 | ||||||
Hackett Group, Inc. | 3,214 | 53,963 | ||||||
LiveRamp Holdings, Inc. (c) | 8,156 | 395,403 | ||||||
ManTech International Corp., Class A | 16,155 | 1,063,807 | ||||||
MAXIMUS, Inc. | 12,235 | 887,527 | ||||||
Science Applications International Corp. | 7,135 | 617,605 | ||||||
|
| |||||||
3,254,543 | ||||||||
|
| |||||||
Leisure Equipment & Products—2.0% |
| |||||||
Clarus Corp. | 29,960 | 432,622 | ||||||
Malibu Boats, Inc., Class A (c) | 18,554 | 720,823 | ||||||
MasterCraft Boat Holdings, Inc. (c) | 32,406 | 634,833 | ||||||
YETI Holdings, Inc. (c) | 14,309 | 414,246 | ||||||
|
| |||||||
2,202,524 | ||||||||
|
| |||||||
Life Sciences Tools & Services—4.0% |
| |||||||
Charles River Laboratories International, Inc. (c) | 8,390 | 1,190,541 | ||||||
Codexis, Inc. (c) | 2,622 | 48,323 | ||||||
Fluidigm Corp. (c) | 23,430 | 288,658 | ||||||
Medpace Holdings, Inc. (c) | 10,145 | 663,686 | ||||||
NanoString Technologies, Inc. (c) | 9,261 | 281,071 | ||||||
NeoGenomics, Inc. (c) | 24,929 | 546,942 | ||||||
PRA Health Sciences, Inc. (c) | 9,645 | 956,302 | ||||||
Quanterix Corp. (c) | 13,372 | 451,840 | ||||||
|
| |||||||
4,427,363 | ||||||||
|
| |||||||
Machinery—2.0% |
| |||||||
Chart Industries, Inc. (c) | 5,558 | 427,299 | ||||||
Columbus McKinnon Corp. | 6,377 | 267,643 | ||||||
Kadant, Inc. | 834 | 75,735 | ||||||
Kornit Digital Ltd. (c) | 17,660 | 559,115 | ||||||
Park-Ohio Holdings Corp. | 8,340 | 271,801 | ||||||
SPX Corp. (c) | 19,700 | 650,494 | ||||||
|
| |||||||
2,252,087 | ||||||||
| �� | |||||||
Media—2.0% |
| |||||||
Cable One, Inc. | 135 | 158,084 | ||||||
Cardlytics, Inc. (c) | 2,561 | 66,535 | ||||||
Fluent, Inc. (c) | 9,439 | 50,782 | ||||||
Gray Television, Inc. (c) | 19,650 | 322,063 |
86 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
Liberty Broadband Corp., Class A (c) | 1,915 | $ | 196,938 | |||||
Loral Space & Communications, Inc. (c) | 1,990 | 68,675 | ||||||
New York Times Co., Class A | 2,375 | 77,472 | ||||||
News Corp., Class B | 11,635 | 162,425 | ||||||
Nexstar Media Group, Inc., Class A | 7,723 | 780,023 | ||||||
Scholastic Corp. | 2,815 | 93,571 | ||||||
TechTarget, Inc. (c) | 13,096 | 278,290 | ||||||
|
| |||||||
2,254,858 | ||||||||
|
| |||||||
Metals & Mining—0.1% |
| |||||||
Novagold Resources, Inc. (c) | 11,830 | 69,915 | ||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs)—3.3% |
| |||||||
Apollo Commercial Real Estate Finance, Inc. | 21,350 | 392,627 | ||||||
ARMOUR Residential REIT, Inc. | 5,390 | 100,470 | ||||||
Blackstone Mortgage Trust, Inc., Class A | 13,480 | 479,618 | ||||||
Capstead Mortgage Corp. | 57,000 | 475,950 | ||||||
Chimera Investment Corp. | 6,815 | 128,599 | ||||||
Ellington Financial, Inc. (c) | 7,490 | 134,595 | ||||||
Exantas Capital Corp. | 20,680 | 233,891 | ||||||
Granite Point Mortgage Trust, Inc. | 18,445 | 353,960 | ||||||
Invesco Mortgage Capital, Inc. | 4,170 | 67,220 | ||||||
MFA Financial, Inc. | 75,220 | 540,080 | ||||||
Ready Capital Corp. | 14,020 | 208,898 | ||||||
TPG RE Finance Trust, Inc. | 25,860 | 498,839 | ||||||
|
| |||||||
3,614,747 | ||||||||
|
| |||||||
Multi-Line Retail—0.2% |
| |||||||
Ollie’s Bargain Outlet Holdings, Inc. (c) | 2,054 | 178,924 | ||||||
|
| |||||||
Multi-Utilities—1.1% |
| |||||||
Black Hills Corp. | 7,030 | 549,535 | ||||||
NorthWestern Corp. | 5,365 | 387,085 | ||||||
Unitil Corp. | 4,035 | 241,656 | ||||||
|
| |||||||
1,178,276 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels—1.8% |
| |||||||
Alliance Resource Partners L.P. | 37,725 | 640,571 | ||||||
Black Stone Minerals L.P. | 7,555 | 117,103 | ||||||
Dorchester Minerals L.P. | 3,840 | 70,310 | ||||||
Enviva Partners L.P. | 3,355 | 105,414 | ||||||
Evolution Petroleum Corp. | 6,110 | 43,687 | ||||||
Par Pacific Holdings, Inc. (c) | 4,550 | 93,366 | ||||||
PBF Logistics L.P. | 6,450 | 136,353 | ||||||
Penn Virginia Corp. (c) | 925 | 28,379 | ||||||
Plains GP Holdings L.P., Class A (c) | 18,450 | 460,697 | ||||||
Ship Finance International Ltd. | 9,440 | 118,094 | ||||||
Sunoco L.P. | 4,040 | 126,371 | ||||||
TC Pipelines L.P. | 2,220 | 83,516 | ||||||
|
| |||||||
2,023,861 | ||||||||
|
| |||||||
Paper & Forest Products—0.4% |
| |||||||
Mercer International, Inc. | 25,235 | 390,385 | ||||||
|
| |||||||
Personal Products—0.3% |
| |||||||
Inter Parfums, Inc. | 1,185 | 78,791 | ||||||
Medifast, Inc. | 1,539 | 197,454 | ||||||
USANA Health Sciences, Inc. (c) | 885 | 70,295 | ||||||
|
| |||||||
346,540 | ||||||||
|
|
Shares | Value | |||||||
Pharmaceuticals—1.0% |
| |||||||
Amphastar Pharmaceuticals, Inc. (c) | 2,508 | $ | 52,944 | |||||
ANI Pharmaceuticals, Inc. (c) | 934 | 76,775 | ||||||
Axsome Therapeutics, Inc. (c) | 1,032 | 26,574 | ||||||
Catalent, Inc. (c) | 10,415 | 564,597 | ||||||
Cymabay Therapeutics, Inc. (c) | 2,580 | 18,473 | ||||||
Horizon Therapeutics PLC (c) | 14,525 | 349,471 | ||||||
Omeros Corp. (c) | 1,414 | 22,186 | ||||||
|
| |||||||
1,111,020 | ||||||||
|
| |||||||
Professional Services—2.6% |
| |||||||
ASGN, Inc. (c) | 11,635 | 705,081 | ||||||
CRA International, Inc. | 895 | 34,305 | ||||||
FTI Consulting, Inc. (c) | 7,820 | 655,629 | ||||||
Heidrick & Struggles International, Inc. | 22,550 | 675,823 | ||||||
Insperity, Inc. | 3,175 | 387,795 | ||||||
Kforce, Inc. | 2,019 | 70,847 | ||||||
Upwork, Inc. (c) | 17,773 | 285,790 | ||||||
|
| |||||||
2,815,270 | ||||||||
|
| |||||||
Real Estate Management & Development—0.9% |
| |||||||
HFF, Inc., Class A | 19,035 | 865,712 | ||||||
St Joe Co. (c) | 4,845 | 83,721 | ||||||
|
| |||||||
949,433 | ||||||||
|
| |||||||
Road & Rail—0.3% |
| |||||||
Universal Logistics Holdings, Inc. | 15,235 | 342,330 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—1.3% |
| |||||||
Ambarella, Inc. (c) | 7,478 | 330,004 | ||||||
Axcelis Technologies, Inc. (c) | 2,166 | 32,598 | ||||||
AXT, Inc. (c) | 7,288 | 28,860 | ||||||
FormFactor, Inc. (c) | 3,867 | 60,596 | ||||||
Ichor Holdings Ltd. (c) | 2,231 | 52,741 | ||||||
Inphi Corp. (c) | 5,197 | 260,370 | ||||||
MKS Instruments, Inc. | 4,103 | 319,583 | ||||||
Semtech Corp. (c) | 6,656 | 319,821 | ||||||
|
| |||||||
1,404,573 | ||||||||
|
| |||||||
Software—6.8% |
| |||||||
ACI Worldwide, Inc. (c) | 16,200 | 556,308 | ||||||
Alteryx, Inc., Class A (c) | 2,118 | 231,116 | ||||||
Aspen Technology, Inc. (c) | 4,640 | 576,659 | ||||||
Blackline, Inc. (c) | 6,017 | 321,970 | ||||||
Digital Turbine, Inc. (c) | 61,236 | 306,180 | ||||||
Everbridge, Inc. (c) | 4,834 | 432,256 | ||||||
Five9, Inc. (c) | 6,655 | 341,335 | ||||||
Instructure, Inc. (c) | 1,737 | 73,822 | ||||||
LivePerson, Inc. (c) | 15,016 | 421,049 | ||||||
MobileIron, Inc. (c) | 8,838 | 54,796 | ||||||
Model N, Inc. (c) | 36,196 | 705,822 | ||||||
Pluralsight, Inc., Class A (c) | 9,748 | 295,559 | ||||||
PROS Holdings, Inc. (c) | 1,668 | 105,518 | ||||||
Rapid7, Inc. (c) | 5,640 | 326,217 | ||||||
RealPage, Inc. (c) | 3,440 | 202,444 | ||||||
Sapiens International Corp. NV | 1,453 | 24,149 | ||||||
SPS Commerce, Inc. (c) | 8,225 | 840,677 | ||||||
Upland Software, Inc. (c) | 2,373 | 108,043 | ||||||
Verint Systems, Inc. (c) | 20,649 | 1,110,503 | ||||||
Yext, Inc. (c) | 9,278 | 186,395 | ||||||
Zix Corp. (c) | 32,319 | 293,780 | ||||||
|
| |||||||
7,514,598 | ||||||||
|
| |||||||
Specialty Retail—0.9% |
| |||||||
Boot Barn Holdings, Inc. (c) | 10,235 | 364,775 | ||||||
Cato Corp., Class A | 13,290 | 163,733 | ||||||
Murphy USA, Inc. (c) | 855 | 71,846 | ||||||
Williams-Sonoma, Inc. | 4,400 | 286,000 |
Shares | Value | |||||||
Winmark Corp. | 440 | $ | 76,186 | |||||
|
| |||||||
962,540 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—0.1% |
| |||||||
Pure Storage, Inc., Class A (c) | 10,382 | 158,533 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods—1.2% |
| |||||||
Columbia Sportswear Co. | 3,565 | 357,070 | ||||||
Crocs, Inc. (c) | 26,090 | 515,278 | ||||||
Deckers Outdoor Corp. (c) | 2,705 | 475,999 | ||||||
|
| |||||||
1,348,347 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance—5.0% |
| |||||||
America First Multifamily Investors L.P. | 21,665 | 154,255 | ||||||
Capitol Federal Financial, Inc. | 30,070 | 414,064 | ||||||
ESSA Bancorp, Inc. | 4,015 | 61,229 | ||||||
Essent Group Ltd. (c) | 20,023 | 940,881 | ||||||
First Defiance Financial Corp. | 2,210 | 63,140 | ||||||
Flagstar Bancorp, Inc. | 2,795 | 92,626 | ||||||
Kearny Financial Corp. | 17,130 | 227,658 | ||||||
LendingTree, Inc. (c) | 781 | 328,043 | ||||||
Meridian Bancorp, Inc. | 8,976 | 160,581 | ||||||
MGIC Investment Corp. (c) | 65,930 | 866,320 | ||||||
Northwest Bancshares, Inc. | 5,430 | 95,622 | ||||||
OceanFirst Financial Corp. | 2,860 | 71,071 | ||||||
Oritani Financial Corp. | 16,635 | 295,105 | ||||||
PCSB Financial Corp. | 7,800 | 157,950 | ||||||
Radian Group, Inc. | 43,485 | 993,632 | ||||||
Territorial Bancorp, Inc. | 6,915 | 213,673 | ||||||
Waterstone Financial, Inc. | 20,415 | 348,280 | ||||||
|
| |||||||
5,484,130 | ||||||||
|
| |||||||
Tobacco—0.4% |
| |||||||
Turning Point Brands, Inc. | 6,785 | 332,329 | ||||||
Universal Corp. | 2,400 | 145,848 | ||||||
|
| |||||||
478,177 | ||||||||
|
| |||||||
Trading Companies & Distributors—0.2% |
| |||||||
Rush Enterprises, Inc., Class B | 6,915 | 255,233 | ||||||
|
| |||||||
Water Utilities—0.8% |
| |||||||
American States Water Co. | 7,530 | 566,557 | ||||||
SJW Group | 5,960 | 362,189 | ||||||
|
| |||||||
928,746 | ||||||||
|
| |||||||
Wireless Telecommunication Services—0.1% |
| |||||||
Boingo Wireless, Inc. (c) | 4,296 | 77,199 | ||||||
|
| |||||||
Total Common Stock (cost—$93,007,272) |
| 108,785,684 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—2.1% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $2,279,095; collateralized by U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $2,327,130 including accrued interest |
| |||||||
(cost—$2,279,000) | $2,279 | 2,279,000 | ||||||
|
| |||||||
Total Investments (cost—$95,286,272)—100.4% |
| 111,064,684 | ||||||
|
|
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 87 |
Table of Contents
Schedule of Investments
June 30, 2019
Value | ||||||||
Liabilities in excess of other assets—(0.4)% |
| $ | (416,849 | ) | ||||
|
| |||||||
Net Assets—100.0% | $110,647,835 | |||||||
|
|
Notes to Schedule of Investments:
(a) Fair-Valued—Security with a value of $2,074, representing less than 0.05% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(b) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(c)Non-income producing.
Glossary:
REIT—Real Estate Investment Trust
AllianzGI Technology Fund
Shares | Value | |||||||
Common Stock—91.1% |
| |||||||
Communications Equipment—2.3% |
| |||||||
Arista Networks, Inc. (d) | 79,650 | $20,678,733 | ||||||
Cisco Systems, Inc. | 112,495 | 6,156,851 | ||||||
Juniper Networks, Inc. | 95 | 2,530 | ||||||
Lumentum Holdings, Inc. (d) | 95 | 5,074 | ||||||
Motorola Solutions, Inc. | 95 | 15,839 | ||||||
Nokia Oyj ADR | 95 | 476 | ||||||
Palo Alto Networks, Inc. (d) | 45,280 | 9,226,253 | ||||||
|
| |||||||
36,085,756 | ||||||||
|
| |||||||
Diversified Consumer Services—0.0% |
| |||||||
New Oriental Education & Technology Group, Inc. ADR (d) | 95 | 9,175 | ||||||
|
| |||||||
Diversified Telecommunication Services—0.0% |
| |||||||
AT&T, Inc. | 95 | 3,184 | ||||||
Verizon Communications, Inc. | 95 | 5,427 | ||||||
|
| |||||||
8,611 | ||||||||
|
| |||||||
Electrical Equipment—0.8% |
| |||||||
Bloom Energy Corp., Class A (d) | 1,063,490 | 13,049,022 | ||||||
Nidec Corp. | 100 | 13,734 | ||||||
|
| |||||||
13,062,756 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—0.0% |
| |||||||
CDW Corp. | 95 | 10,545 | ||||||
Cognex Corp. | 100 | 4,798 | ||||||
IPG Photonics Corp. (d) | 95 | 14,654 | ||||||
Murata Manufacturing Co., Ltd. | 300 | 13,506 | ||||||
Samsung Electro-Mechanics Co., Ltd. | 165 | 14,039 | ||||||
Samsung SDI Co., Ltd. | 950 | 194,906 | ||||||
|
| |||||||
252,448 | ||||||||
|
| |||||||
Entertainment—1.1% |
| |||||||
Electronic Arts, Inc. (d) | 36,335 | 3,679,282 | ||||||
Netflix, Inc. (d) | 21,110 | 7,754,125 | ||||||
Nintendo Co., Ltd. | 100 | 36,690 | ||||||
Take-Two Interactive Software, Inc. (d) | 52,600 | 5,971,678 | ||||||
|
| |||||||
17,441,775 | ||||||||
|
| |||||||
Healthcare Technology—0.2% |
| |||||||
Veeva Systems, Inc., Class A (d) | 21,270 | 3,448,080 | ||||||
|
| |||||||
Household Durables—0.0% |
| |||||||
Garmin Ltd. | 95 | 7,581 | ||||||
|
| |||||||
Industrial Conglomerates—1.0% |
| |||||||
Roper Technologies, Inc. | 45,200 | 16,554,952 | ||||||
|
| |||||||
Interactive Media & Services—9.4% |
| |||||||
58.com, Inc. ADR (d) | 95 | 5,906 | ||||||
Alphabet, Inc., Class A (c)(d) | 16,150 | 17,487,220 | ||||||
Alphabet, Inc., Class C (d) | 17,085 | 18,467,347 | ||||||
Baidu, Inc. ADR (d) | 95 | 11,149 | ||||||
Facebook, Inc., Class A (c)(d) | 603,405 | 116,457,165 | ||||||
NAVER Corp. | 475 | 46,945 | ||||||
Tencent Holdings Ltd. | 100 | 4,524 | ||||||
TripAdvisor, Inc. (d) | 95 | 4,398 | ||||||
Twitter, Inc. (d) | 95 | 3,316 |
Shares | Value | |||||||
Weibo Corp. ADR (d) | 20 | $ | 871 | |||||
Yandex NV, Class A (d) | 95 | 3,610 | ||||||
Yelp, Inc. (d) | 95 | 3,247 | ||||||
Zillow Group, Inc., Class A (d) | 95 | 4,347 | ||||||
|
| |||||||
152,500,045 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail—6.4% |
| |||||||
Alibaba Group Holding Ltd. ADR (d) | 100 | 16,945 | ||||||
Amazon.com, Inc. (d) | 54,755 | 103,685,711 | ||||||
Ctrip.com International Ltd. ADR (d) | 95 | 3,506 | ||||||
eBay, Inc. | 95 | 3,752 | ||||||
Expedia Group, Inc. | 95 | 12,638 | ||||||
GrubHub, Inc. (d) | 95 | 7,409 | ||||||
JD.com, Inc. ADR (d) | 95 | 2,878 | ||||||
|
| |||||||
103,732,839 | ||||||||
|
| |||||||
IT Services—22.9% |
| |||||||
Accenture PLC, Class A | 95 | 17,553 | ||||||
Adyen NV (a)(d) | 95 | 73,282 | ||||||
Akamai Technologies, Inc. (d) | 220,535 | 17,673,675 | ||||||
Amadeus IT Group S.A. | 95 | 7,528 | ||||||
Automatic Data Processing, Inc. | 95 | 15,706 | ||||||
DXC Technology Co. | 287,660 | 15,864,449 | ||||||
Fidelity National Information Services, Inc. | 65,050 | 7,980,334 | ||||||
First Data Corp., Class A (d) | 349,440 | 9,459,341 | ||||||
Fiserv, Inc. (d) | 38,840 | 3,540,654 | ||||||
Global Payments, Inc. | 53,840 | 8,621,399 | ||||||
GoDaddy, Inc., Class A (d) | 95 | 6,664 | ||||||
Mastercard, Inc., Class A | 182,745 | 48,341,535 | ||||||
MongoDB, Inc. (d) | 253,825 | 38,604,244 | ||||||
Okta, Inc. (d) | 507,110 | 62,633,156 | ||||||
PayPal Holdings, Inc. (d) | 331,775 | 37,974,967 | ||||||
Perspecta, Inc. | 2,645 | 61,920 | ||||||
Sabre Corp. | 95 | 2,109 | ||||||
Shopify, Inc., Class A (d) | 95 | 28,514 | ||||||
Square, Inc., Class A (c)(d) | 250,070 | 18,137,577 | ||||||
Tata Consultancy Services Ltd. | 2,000 | 64,562 | ||||||
Total System Services, Inc. | 84,005 | 10,775,321 | ||||||
Twilio, Inc., Class A (d) | 398,155 | 54,288,434 | ||||||
Visa, Inc., Class A | 139,585 | 24,224,977 | ||||||
Worldpay, Inc., Class A (d) | 96,030 | 11,768,477 | ||||||
|
| |||||||
370,166,378 | ||||||||
|
| |||||||
Media—0.0% |
| |||||||
Comcast Corp., Class A | 95 | 4,016 | ||||||
|
| |||||||
Professional Services—0.0% |
| |||||||
Verisk Analytics, Inc. | 95 | 13,914 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—10.4% |
| |||||||
Advanced Micro Devices, Inc. (d) | 634,705 | 19,275,991 | ||||||
ams AG (d) | 95 | 3,720 | ||||||
Analog Devices, Inc. | 81,345 | 9,181,410 | ||||||
Applied Materials, Inc. | 100 | 4,491 | ||||||
Broadcom, Inc. | 45,260 | 13,028,544 | ||||||
Cree, Inc. (d) | 564,935 | 31,738,048 | ||||||
Cypress Semiconductor Corp. | 833,965 | 18,547,382 | ||||||
Infineon Technologies AG | 95 | 1,688 | ||||||
Intel Corp. | 100 | 4,787 | ||||||
KLA-Tencor Corp. | 92,875 | 10,977,825 | ||||||
Lam Research Corp. | 30,510 | 5,730,998 | ||||||
Maxim Integrated Products, Inc. | 95 | 5,683 |
88 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Schedule of Investments
June 30, 2019
Shares | Value | |||||||
MediaTek, Inc. | 1,000 | $ | 10,129 | |||||
Microchip Technology, Inc. | 204,357 | 17,717,752 | ||||||
Micron Technology, Inc. (c)(d) | 87,675 | 3,383,378 | ||||||
NVIDIA Corp. | 95 | 15,602 | ||||||
ON Semiconductor Corp. (d) | 960,295 | 19,407,562 | ||||||
QUALCOMM, Inc. | 128,265 | 9,757,119 | ||||||
SK Hynix, Inc. | 100 | 6,015 | ||||||
Skyworks Solutions, Inc. | 100 | 7,727 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 100 | 3,917 | ||||||
Teradyne, Inc. | 95 | 4,551 | ||||||
Texas Instruments, Inc. | 29,745 | 3,413,536 | ||||||
Tokyo Electron Ltd. | 800 | 112,444 | ||||||
Universal Display Corp. | 95 | 17,866 | ||||||
Xilinx, Inc. | 50,895 | 6,001,538 | ||||||
|
| |||||||
168,359,703 | ||||||||
|
| |||||||
Software—33.4% |
| |||||||
Adobe, Inc. (d) | 100 | 29,465 | ||||||
Alteryx, Inc., Class A (d) | 290,505 | 31,699,906 | ||||||
Aspen Technology, Inc. (d) | 6,790 | 843,861 | ||||||
Atlassian Corp. PLC, Class A (d) | 126,500 | 16,551,260 | ||||||
Aveva Group PLC | 322,285 | 16,538,362 | ||||||
Box, Inc., Class A (d) | 95 | 1,673 | ||||||
Cornerstone OnDemand, Inc. (d) | 95 | 5,503 | ||||||
Coupa Software, Inc. (d) | 95 | 12,028 | ||||||
Crowdstrike Holdings, Inc. (d) | 2,685 | 183,359 | ||||||
CyberArk Software Ltd. (d) | 79,435 | 10,154,970 | ||||||
DocuSign, Inc. (d) | 95 | 4,722 | ||||||
Dropbox, Inc., Class A (d) | 95 | 2,380 | ||||||
Elastic NV (d) | 95,924 | 7,161,686 | ||||||
ForeScout Technologies, Inc. (d) | 115,235 | 3,901,857 | ||||||
Fortinet, Inc. (d) | 100 | 7,683 | ||||||
HubSpot, Inc. (d) | 12,300 | 2,097,396 | ||||||
Intuit, Inc. | 95 | 24,826 | ||||||
Microsoft Corp. (c) | 1,021,876 | 136,890,509 | ||||||
Nutanix, Inc., Class A (d) | 392,035 | 10,169,388 | ||||||
Oracle Corp. | 95 | 5,412 | ||||||
Paycom Software, Inc. (d) | 406,624 | 92,189,793 | ||||||
Proofpoint, Inc. (d) | 133,355 | 16,035,939 | ||||||
Rapid7, Inc. (d) | 221,795 | 12,828,623 | ||||||
RealPage, Inc. (d) | 100 | 5,885 | ||||||
Red Hat, Inc. (d) | 95 | 17,837 | ||||||
RingCentral, Inc., Class A (d) | 246,620 | 28,341,570 | ||||||
Salesforce.com, Inc. (d) | 140,516 | 21,320,493 | ||||||
SAP SE ADR | 95 | 12,996 | ||||||
ServiceNow, Inc. (d) | 222,030 | 60,962,777 | ||||||
Sophos Group PLC (a) | 95 | 477 | ||||||
Splunk, Inc. (d) | 95 | 11,946 | ||||||
Tableau Software, Inc., Class A (d) | 100 | 16,602 | ||||||
Temenos AG (d) | 3,300 | 590,878 | ||||||
Tenable Holdings, Inc. (d) | 131,627 | 3,756,635 |
Shares | Value | |||||||
VMware, Inc., Class A | 95 | $ | 15,885 | |||||
Workday, Inc., Class A (d) | 191,820 | 39,434,356 | ||||||
Zendesk, Inc. (d) | 95 | 8,458 | ||||||
Zscaler, Inc. (d) | 365,605 | 28,019,967 | ||||||
Zuora, Inc., Class A (d) | 95 | 1,455 | ||||||
|
| |||||||
539,858,818 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—3.2% |
| |||||||
Apple, Inc. (c) | 73,105 | 14,468,942 | ||||||
Catcher Technology Co., Ltd. | 1,000 | 7,185 | ||||||
Dell Technologies, Inc. Class C (d) | 175 | 8,890 | ||||||
Hewlett Packard Enterprise Co. | 95 | 1,420 | ||||||
HP, Inc. | 95 | 1,975 | ||||||
NetApp, Inc. (c) | 531,485 | 32,792,625 | ||||||
Pure Storage, Inc., Class A (d) | 314,260 | 4,798,750 | ||||||
Samsung Electronics Co., Ltd. | 950 | 38,684 | ||||||
Western Digital Corp. | 95 | 4,517 | ||||||
|
| |||||||
52,122,988 | ||||||||
|
| |||||||
Wireless Telecommunication Services—0.0% |
| |||||||
T-Mobile U.S., Inc. (d) | 95 | 7,043 | ||||||
|
| |||||||
Total Common Stock (cost—$891,697,270) |
| 1,473,636,878 | ||||||
|
| |||||||
Exchange-Traded Funds—0.0% |
| |||||||
iShares FTSE A50 China Index | 1,000 | 1,913 | ||||||
|
| |||||||
Principal Amount (000s) | ||||||||
Repurchase Agreements—9.2% |
| |||||||
State Street Bank and Trust Co., dated 6/28/19, 0.50%, due 7/1/19, proceeds $149,345,222; collateralized by U.S. Treasury Inflation Indexed Notes, 0.25%, due 1/15/25, valued at $4,725,325 including accrued interest and U.S. Treasury Inflation Indexed Bonds, 2.375%, due 1/15/25, valued at $221,268 including accrued interest and U.S. Treasury Notes, 1.875%-2.50%, due 5/15/24-8/31/24, valued at $147,383,474 including accrued interest |
| |||||||
(cost—$149,339,000) | $149,339 | 149,339,000 | ||||||
|
| |||||||
Total Options Purchased —0.2% (cost—$1,613,883) (d)(e)(f) |
| 2,659,800 | ||||||
|
| |||||||
Total Investments, before options written and securities sold short (cost—$1,042,651,677)—100.5% |
| 1,625,637,591 | ||||||
|
| |||||||
Shares | Value | |||||||
Securities sold Short—(0.0)% |
| |||||||
Common Stock—(0.0)% |
| |||||||
IT Services—(0.0)% |
| |||||||
International Business Machines Corp. (proceeds received—$162) | 1 | $ | (138 | ) | ||||
|
| |||||||
Total Options Written—(0.0)% |
| |||||||
(premiums received—$2,868,581) (d)(e)(f) | (437,500 | ) | ||||||
|
| |||||||
Total Investments, net of options written and securities sold short (cost—$1,039,782,934) (b)—100.5% |
| 1,625,199,953 | ||||||
|
| |||||||
Other liabilities in excess of other assets—(0.5)% | (7,943,749 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $1,617,256,204 | |||||||
|
|
Notes to Schedule of Investments:
(a) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $73,759, representing less than 0.05% of net assets.
(b) Securities (net of security sold short) with an aggregate value of $17,781,211, representing 1.1% of net assets, were valued utilizing modeling tools provided by a third-party vendor. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.
(c) All or partial amount segregated for the benefit of the counterparty as collateral for security sold short and options written.
(d)Non-income producing.
(e) Exchange traded-Chicago Board Options Exchange.
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 89 |
Table of Contents
Schedule of Investments
June 30, 2019
(f) Exchange traded option contracts outstanding at June 30, 2019:
Options purchased contracts outstanding at June 30, 2019: | ||||||||||||||||||||||||||||
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Market Value | Cost | Unrealized Appreciation | |||||||||||||||||||||
Call options: |
| |||||||||||||||||||||||||||
Broadcom Ltd. | 260.00 USD | 1/17/20 | 620 | $ | 62,000 | $ | 2,659,800 | $ | 1,613,883 | $ | 1,045,917 | |||||||||||||||||
|
|
Options written contracts outstanding at June 30, 2019: | ||||||||||||||||||||||||||||
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Market Value | Premiums Received | Unrealized Appreciation | |||||||||||||||||||||
Call options: |
| |||||||||||||||||||||||||||
Arista Networks, Inc. | 330.00 USD | 9/20/19 | (608 | ) | $ | (60,800 | ) | $ | (136,800 | ) | $ | (1,484,253 | ) | $ | 1,347,453 | |||||||||||||
Put options: |
| |||||||||||||||||||||||||||
Broadcom Ltd. | 210.00 USD | 1/17/20 | (620 | ) | $ | (62,000 | ) | $ | (300,700 | ) | $ | (1,384,328 | ) | $ | 1,083,628 | |||||||||||||
|
| |||||||||||||||||||||||||||
Total options written contracts |
| $ | (437,500 | ) | $ | (2,868,581 | ) | $ | 2,431,081 | |||||||||||||||||||
|
|
Glossary:
ADR—American Depositary Receipt
FTSE—Financial Times Stock Exchange
90 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
(THIS PAGE INTENTIONALLY LEFT BLANK)
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 91 |
Table of Contents
Statements of Assets and Liabilities
June 30, 2019
AllianzGI Emerging Markets Opportunities | AllianzGI Focused Growth | AllianzGI Global Natural Resources | AllianzGI Global Small-Cap | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value | $ | 376,561,184 | $ | 1,045,300,828 | $ | 12,137,842 | $ | 131,701,732 | ||||||||
Investments in Affiliates, at value | — | — | — | — | ||||||||||||
Cash | 2,125,431 | 542 | 28,961 | 284 | ||||||||||||
Foreign currency, at value | 3,601,595 | — | 960 | 301,018 | ||||||||||||
Dividends and interest receivable (net of foreign withholding taxes) | 1,976,321 | 255,169 | 10,813 | 137,212 | ||||||||||||
Receivable for Fund shares sold | 218,906 | 305,710 | 3,275 | 3,542 | ||||||||||||
Investments in Affiliated Funds —Trustees Deferred Compensation Plan (see Note 4) | 65,339 | 232,365 | 9,035 | 51,476 | ||||||||||||
Tax reclaims receivable | 51,814 | — | 11,553 | 153,127 | ||||||||||||
Receivable for investments sold | — | 6,581,228 | 93,470 | 2,652,299 | ||||||||||||
Prepaid expenses and other assets | — | — | — | — | ||||||||||||
Total Assets | 384,600,590 | 1,052,675,842 | 12,295,909 | 135,000,690 | ||||||||||||
Liabilities: | ||||||||||||||||
Payable for Fund shares redeemed | 3,458,216 | 938,294 | 7,081 | 204,089 | ||||||||||||
Payable for investments purchased | 2,124,560 | 9,416,570 | 38,463 | 701,153 | ||||||||||||
Investment Advisory fees payable | 185,163 | 273,697 | 6,459 | 95,348 | ||||||||||||
Administration fees payable | 73,453 | 275,983 | 3,778 | 42,087 | ||||||||||||
Trustees Deferred Compensation Plan payable (see Note 4) | 65,339 | 232,365 | 9,035 | 51,476 | ||||||||||||
Servicing fees payable | 9,806 | 121,964 | 1,250 | 10,330 | ||||||||||||
Distribution fees payable | 2,110 | 33,180 | 645 | 4,400 | ||||||||||||
Options written, at value | — | — | — | — | ||||||||||||
Accrued expenses and other liabilities | 322,346 | — | — | — | ||||||||||||
Total Liabilities | 6,240,993 | 11,292,053 | 66,711 | 1,108,883 | ||||||||||||
Net Assets | $ | 378,359,597 | $ | 1,041,383,789 | $ | 12,229,198 | $ | 133,891,807 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in-capital | $ | 386,315,847 | $ | 588,209,374 | $ | 22,107,763 | $ | 112,761,138 | ||||||||
Total distributable earnings | (7,956,250 | ) | 453,174,415 | (9,878,565 | ) | 21,130,669 | ||||||||||
Net Assets | $ | 378,359,597 | $ | 1,041,383,789 | $ | 12,229,198 | $ | 133,891,807 | ||||||||
Cost of Investments | $ | 342,306,247 | $ | 647,434,842 | $ | 11,379,430 | $ | 111,374,823 | ||||||||
Cost of Investments in Affiliates | $ | — | $ | — | $ | — | $ | — | ||||||||
Cost of Foreign Currency | $ | 3,589,301 | $ | — | $ | 961 | $ | 298,762 | ||||||||
Premiums Received for Options Written | $ | — | $ | — | $ | — | $ | — |
92 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI Health Sciences | AllianzGI Income & Growth | AllianzGI Mid-Cap | AllianzGI NFJ Dividend Value | AllianzGI NFJ International Value | ||||||||||||||||||
$ | 156,037,624 | $ | 4,510,061,949 | $ | 313,057,281 | $ | 1,356,715,113 | $ | 179,422,595 | |||||||||||||
— | 17,134,504 | — | — | — | ||||||||||||||||||
725 | 124,365 | 63 | 169 | 818 | ||||||||||||||||||
33,207 | — | — | — | 53,011 | ||||||||||||||||||
| 81,601 | 31,760,397 | 77,325 | 2,225,389 | 448,411 | |||||||||||||||||
118,395 | 9,805,880 | 12,303 | 428,102 | 14,284 | ||||||||||||||||||
| 42,486 | 582,835 | 62,568 | 1,449,027 | 296,066 | |||||||||||||||||
155,304 | 4,180 | — | 472,495 | 298,154 | ||||||||||||||||||
5,098,836 | 6,626,973 | 6,988,178 | 48,844,886 | — | ||||||||||||||||||
— | 2,496 | — | — | — | ||||||||||||||||||
161,568,178 | 4,576,103,579 | 320,197,718 | 1,410,135,181 | 180,533,339 | ||||||||||||||||||
39,032 | 4,275,564 | 191,586 | 2,410,456 | 243,633 | ||||||||||||||||||
5,828,361 | 42,884,208 | 7,508,345 | 47,740,210 | — | ||||||||||||||||||
92,969 | 2,179,443 | 110,090 | 388,816 | 74,887 | ||||||||||||||||||
46,169 | 1,207,551 | 90,846 | 376,891 | 60,937 | ||||||||||||||||||
42,486 | 582,835 | 62,568 | 1,449,027 | 296,066 | ||||||||||||||||||
28,264 | 507,634 | 49,249 | 115,108 | 17,407 | ||||||||||||||||||
2,330 | 699,850 | 17,611 | 411,459 | 34,554 | ||||||||||||||||||
— | 760,940 | — | — | — | ||||||||||||||||||
— | — | — | — | 286 | ||||||||||||||||||
6,079,611 | 53,098,025 | 8,030,295 | 52,891,967 | 727,770 | ||||||||||||||||||
$ | 155,488,567 | $ | 4,523,005,554 | $ | 312,167,423 | $ | 1,357,243,214 | $ | 179,805,569 | |||||||||||||
$ | 128,083,679 | $ | 4,978,178,241 | $ | 234,031,163 | $ | 1,143,481,116 | $ | 621,652,311 | |||||||||||||
27,404,888 | (455,172,687 | ) | 78,136,260 | 213,762,098 | (441,846,742 | ) | ||||||||||||||||
$ | 155,488,567 | $ | 4,523,005,554 | $ | 312,167,423 | $ | 1,357,243,214 | $ | 179,805,569 | |||||||||||||
$ | 134,488,078 | $ | 4,949,194,679 | $ | 240,932,500 | $ | 1,180,829,262 | $ | 172,970,521 | |||||||||||||
$ | — | $ | 24,798,435 | $ | — | $ | — | $ | — | |||||||||||||
$ | 33,219 | $ | — | $ | — | $ | — | $ | 52,899 | |||||||||||||
$ | — | $ | 611,487 | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 93 |
Table of Contents
Statements of Assets and Liabilities (cont’d)
June 30, 2019
AllianzGI Emerging Markets Opportunities | AllianzGI Focused Growth | AllianzGI Global Natural Resources | AllianzGI Global Small-Cap | |||||||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 48,388,176 | $ | 577,106,080 | $ | 5,465,752 | $ | 46,947,011 | ||||||||
Class C | 3,675,209 | 48,705,644 | 1,153,689 | 7,353,563 | ||||||||||||
Class R | — | 22,511,374 | — | — | ||||||||||||
Class P | 20,453,782 | 91,265,180 | 600,509 | 11,675,259 | ||||||||||||
Institutional Class | 282,195,352 | 162,173,235 | 5,009,248 | 67,915,974 | ||||||||||||
Class R6 | 23,647,078 | 134,484,752 | — | — | ||||||||||||
Administrative Class | — | 5,137,524 | — | — | ||||||||||||
Shares Issued and Outstanding: | ||||||||||||||||
Class A | 1,788,429 | 10,821,431 | 384,899 | 1,192,591 | ||||||||||||
Class C | 137,065 | 1,414,951 | 86,822 | 222,151 | ||||||||||||
Class R | — | 576,986 | — | — | ||||||||||||
Class P | 773,115 | 2,286,624 | 41,588 | 274,663 | ||||||||||||
Institutional Class | 10,412,212 | 3,317,286 | 343,578 | 1,580,382 | ||||||||||||
Class R6 | 876,968 | 2,746,687 | — | — | ||||||||||||
Administrative Class | — | 113,270 | — | — | ||||||||||||
Net Asset Value and Redemption Price Per Share:* | ||||||||||||||||
Class A | $ | 27.06 | $ | 53.33 | $ | 14.20 | $ | 39.37 | ||||||||
Class C | 26.81 | 34.42 | 13.29 | 33.10 | ||||||||||||
Class R | — | 39.02 | — | — | ||||||||||||
Class P | 26.46 | 39.91 | 14.44 | 42.51 | ||||||||||||
Institutional Class | 27.10 | 48.89 | 14.58 | 42.97 | ||||||||||||
Class R6 | 26.96 | 48.96 | — | — | ||||||||||||
Administrative Class | — | 45.36 | — | — |
* | Net asset value and redemption price per share may not recalculate exactly due to rounding. |
94 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI Health Sciences | AllianzGI Income & Growth | AllianzGI Mid-Cap | AllianzGI NFJ Dividend Value | AllianzGI NFJ International Value | ||||||||||||||||||
$ | 147,068,196 | $ | 1,458,641,292 | $ | 240,016,981 | $ | 453,254,809 | $ | 71,931,467 | |||||||||||||
4,130,622 | 1,234,667,443 | 21,251,354 | 75,395,070 | 13,926,439 | ||||||||||||||||||
— | 4,873,241 | 1,384,455 | 73,609,556 | 6,107,555 | ||||||||||||||||||
— | 1,122,083,129 | 11,617,294 | 378,642,359 | 38,654,561 | ||||||||||||||||||
4,289,749 | 702,740,449 | 36,372,043 | 263,356,795 | 46,472,052 | ||||||||||||||||||
— | — | — | 65,935,301 | 1,277,118 | ||||||||||||||||||
— | — | 1,525,296 | 47,049,324 | 1,436,377 | ||||||||||||||||||
4,557,346 | 132,537,980 | 64,033,206 | 37,438,136 | 3,893,551 | ||||||||||||||||||
167,161 | 122,581,384 | 7,130,233 | 6,118,343 | 767,105 | ||||||||||||||||||
— | 442,818 | 377,813 | 6,080,991 | 329,780 | ||||||||||||||||||
— | 99,358,517 | 2,667,212 | 30,999,297 | 2,080,022 | ||||||||||||||||||
130,958 | 61,606,574 | 8,286,181 | 21,590,378 | 2,498,067 | ||||||||||||||||||
— | — | — | 5,426,183 | 68,685 | ||||||||||||||||||
— | — | 380,765 | 3,789,921 | 77,471 | ||||||||||||||||||
$ | 32.27 | $ | 11.01 | $ | 3.75 | $ | 12.11 | $ | 18.47 | |||||||||||||
24.71 | 10.07 | 2.98 | 12.32 | 18.15 | ||||||||||||||||||
— | 11.01 | 3.66 | 12.10 | 18.52 | ||||||||||||||||||
— | 11.29 | 4.36 | 12.21 | 18.58 | ||||||||||||||||||
32.76 | 11.41 | 4.39 | 12.20 | 18.60 | ||||||||||||||||||
— | — | — | 12.15 | 18.59 | ||||||||||||||||||
— | — | 4.01 | 12.41 | 18.54 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 95 |
Table of Contents
Statements of Assets and Liabilities (cont’d)
June 30, 2019
AllianzGI NFJ Large-Cap Value | AllianzGI NFJ Mid-Cap Value | AllianzGI NFJ Small-Cap Value | AllianzGI Small-Cap | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value | $ | 344,382,417 | $ | 1,326,121,930 | $ | 1,071,334,539 | $ | 111,064,684 | ||||||||
Cash | — | 37,396 | 27,766 | 151,482 | ||||||||||||
Foreign currency, at value | — | — | — | — | ||||||||||||
Dividends and interest receivable (net of foreign withholding taxes) | 528,922 | 2,326,188 | 1,667,313 | 133,788 | ||||||||||||
Receivable for investments sold | 9,305,176 | 3,130,575 | 9,596,281 | 94,422 | ||||||||||||
Receivable for Fund shares sold | 40,771 | 891,875 | 393,988 | 102,742 | ||||||||||||
Tax reclaims receivable | 70,146 | 17,706 | — | — | ||||||||||||
Investments in Affiliated Funds — Trustees Deferred Compensation Plan (see Note 4) | 176,470 | 293,980 | 1,193,325 | 13,355 | ||||||||||||
Prepaid expenses and other assets | — | — | 887 | — | ||||||||||||
Total Assets | 354,503,902 | 1,332,819,650 | 1,084,214,099 | 111,560,473 | ||||||||||||
Liabilities: | ||||||||||||||||
Payable for investments purchased | 7,120,802 | 8,631,799 | 16,201,187 | 760,020 | ||||||||||||
Payable for Fund shares redeemed | 1,294,035 | 10,241,504 | 13,749,473 | 49,253 | ||||||||||||
Payable to custodian for cash overdraft | 124,415 | — | — | — | ||||||||||||
Securities sold short, at value | — | — | — | — | ||||||||||||
Options written, at value | — | — | — | — | ||||||||||||
Investment Advisory fees payable | 118,153 | 546,835 | 406,439 | 49,553 | ||||||||||||
Distribution fees payable | 7,654 | 38,585 | 681,250 | 4,418 | ||||||||||||
Servicing fees payable | 36,723 | 126,899 | 89,052 | 13,904 | ||||||||||||
Administration fees payable | 94,915 | 138,888 | 275,359 | 22,135 | ||||||||||||
Trustees Deferred Compensation Plan payable (see Note 4) | 176,470 | 293,980 | 1,193,325 | 13,355 | ||||||||||||
Accrued expenses and other liabilities | — | — | — | — | ||||||||||||
Total Liabilities | 8,973,167 | 20,018,490 | 32,596,085 | 912,638 | ||||||||||||
Net Assets | $ | 345,530,735 | $ | 1,312,801,160 | $ | 1,051,618,014 | $ | 110,647,835 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in-capital | $ | 334,956,545 | $ | 1,117,290,744 | $ | 933,663,384 | $ | 96,781,988 | ||||||||
Total distributable earnings | 10,574,190 | 195,510,416 | 117,954,630 | 13,865,847 | ||||||||||||
Net Assets | $ | 345,530,735 | $ | 1,312,801,160 | $ | 1,051,618,014 | $ | 110,647,835 | ||||||||
Cost of Investments | $ | 326,345,995 | $ | 1,169,509,168 | $ | 965,648,190 | $ | 95,286,272 | ||||||||
Cost of Foreign Currency | $ | — | $ | — | $ | — | $ | — | ||||||||
Proceeds Received on Securities Sold Short | $ | — | $ | — | $ | — | $ | — | ||||||||
Premiums Received for Options Written | $ | — | $ | — | $ | — | $ | — |
96 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI | ||||||
$ | 1,625,637,591 | |||||
534 | ||||||
4,159,521 | ||||||
| 354,369 |
| ||||
162 | ||||||
972,779 | ||||||
38,239 | ||||||
| 361,362 | |||||
— | ||||||
1,631,524,557 | ||||||
10,867,989 | ||||||
924,640 | ||||||
— | ||||||
138 | ||||||
437,500 | ||||||
1,102,360 | ||||||
30,191 | ||||||
123,604 | ||||||
417,211 | ||||||
361,362 | ||||||
3,358 | ||||||
14,268,353 | ||||||
$ | 1,617,256,204 | |||||
$ | 904,007,467 | |||||
713,248,737 | ||||||
$ | 1,617,256,204 | |||||
$ | 1,042,651,677 | |||||
$ | 4,017,500 | |||||
$ | 162 | |||||
$ | 2,868,581 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 97 |
Table of Contents
Statements of Assets and Liabilities (cont’d)
June 30, 2019
AllianzGI NFJ Large-Cap Value | AllianzGI NFJ Mid-Cap Value | AllianzGI NFJ Small-Cap Value | AllianzGI Small-Cap | |||||||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 178,310,805 | $ | 595,707,348 | $ | 439,711,494 | $ | 66,268,671 | ||||||||
Class C | 12,080,321 | 48,176,490 | 3,984,226 | 7,873,449 | ||||||||||||
Class R | 2,089,543 | 20,086,898 | 22,152,785 | — | ||||||||||||
Class P | 19,097,025 | 197,201,241 | 39,425,629 | 9,636,814 | ||||||||||||
Institutional Class | 132,572,030 | 406,172,336 | 288,308,787 | 9,076,673 | ||||||||||||
Class R6 | — | 18,052,105 | 150,199,529 | 17,792,228 | ||||||||||||
Administrative Class | 1,381,011 | 27,404,742 | 107,835,564 | — | ||||||||||||
Shares Issued and Outstanding: | ||||||||||||||||
Class A | 6,628,700 | 19,465,828 | 30,266,190 | 3,398,376 | ||||||||||||
Class C | 443,577 | 1,915,109 | 307,261 | 421,486 | ||||||||||||
Class R | 76,873 | 767,912 | 1,397,299 | — | ||||||||||||
Class P | 703,230 | 7,991,171 | 2,347,826 | 488,224 | ||||||||||||
Institutional Class | 4,951,950 | 12,393,400 | 17,005,697 | 456,030 | ||||||||||||
Class R6 | — | 551,207 | 8,911,453 | 894,127 | ||||||||||||
Administrative Class | 50,614 | 868,025 | 7,446,621 | — | ||||||||||||
Net Asset Value and Redemption Price Per Share:* | ||||||||||||||||
Class A | $ | 26.90 | $ | 30.60 | $ | 14.53 | $ | 19.50 | ||||||||
Class C | 27.23 | 25.16 | 12.97 | 18.68 | ||||||||||||
Class R | 27.18 | 26.16 | 15.85 | — | ||||||||||||
Class P | 27.16 | 24.68 | 16.79 | 19.74 | ||||||||||||
Institutional Class | 26.77 | 32.77 | 16.95 | 19.90 | ||||||||||||
Class R6 | — | 32.75 | 16.85 | 19.90 | ||||||||||||
Administrative Class | 27.29 | 31.57 | 14.48 | — |
* | Net asset value and redemption price per share may not recalculate exactly due to rounding. |
98 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI | ||||||
$ | 601,111,542 | |||||
48,842,320 | ||||||
— | ||||||
155,552,757 | ||||||
800,061,333 | ||||||
— | ||||||
11,688,252 | ||||||
9,404,449 | ||||||
1,080,184 | ||||||
— | ||||||
2,145,803 | ||||||
10,797,477 | ||||||
— | ||||||
170,205 | ||||||
$ | 63.92 | |||||
45.22 | ||||||
— | ||||||
72.49 | ||||||
74.10 | ||||||
— | ||||||
68.67 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 99 |
Table of Contents
Year ended June 30, 2019
AllianzGI Emerging Markets Opportunities | AllianzGI Focused Growth | AllianzGI Global Natural Resources | AllianzGI Global Small-Cap | |||||||||||||
Investment Income: | ||||||||||||||||
Dividends, net of foreign withholding taxes* | $ | 10,604,905 | $ | 8,743,849 | $ | 507,764 | $ | 2,023,376 | ||||||||
Interest | 26,575 | 49,137 | 727 | 21,119 | ||||||||||||
Miscellaneous | 15 | 7,366 | 90 | 8 | ||||||||||||
Total Investment Income | 10,631,495 | 8,800,352 | 508,581 | 2,044,503 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory | 2,988,041 | 4,670,220 | 108,197 | 1,448,455 | ||||||||||||
Administration | 1,453,346 | 3,787,750 | 63,460 | 640,433 | ||||||||||||
Distribution — Class C | 37,549 | 769,784 | 11,552 | 90,026 | ||||||||||||
Distribution — Class R | — | 56,518 | — | — | ||||||||||||
Servicing — Class A | 141,647 | 1,304,173 | 15,956 | 127,822 | ||||||||||||
Servicing — Class C | 12,516 | 256,595 | 3,851 | 30,009 | ||||||||||||
Servicing — Class R | — | 56,518 | — | — | ||||||||||||
Distribution and/or servicing — Administrative Class | — | 11,804 | — | — | ||||||||||||
Trustees | 45,702 | 133,042 | 2,550 | 21,460 | ||||||||||||
Line of credit commitment | 9,070 | 26,125 | 631 | 4,316 | ||||||||||||
Excise tax | 3,886 | — | — | — | ||||||||||||
Legal | 237 | 744 | 15 | 124 | ||||||||||||
Interest expense | — | — | — | — | ||||||||||||
Securities sold short | — | — | 70 | — | ||||||||||||
Miscellaneous | 6,827 | 9,175 | 1,367 | 3,728 | ||||||||||||
Total Expenses | 4,698,821 | 11,082,448 | 207,649 | 2,366,373 | ||||||||||||
Less: Investment Advisory/Administration waived | (1,230,370 | ) | (1,142,160 | ) | — | — | ||||||||||
Net Expenses | 3,468,451 | 9,940,288 | 207,649 | 2,366,373 | ||||||||||||
Net Investment Income (Loss) | 7,163,044 | (1,139,936 | ) | 300,932 | (321,870 | ) | ||||||||||
Realized and Change in Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | (33,743,717 | ) | 129,030,700 | (615,914 | ) | 3,581,736 | ||||||||||
Options written | — | — | 1,475 | — | ||||||||||||
Forward foreign currency contracts | — | — | 53 | — | ||||||||||||
Foreign currency transactions | (596,374 | ) | — | (5,944 | ) | (66,794 | ) | |||||||||
Payments from Affiliates (See Note 11) | — | — | — | — | ||||||||||||
Net change in unrealized appreciation/depreciation of: | ||||||||||||||||
Investments | 15,537,362 | (63,725,778 | ) | (1,778,464 | ) | (15,629,895 | ) | |||||||||
Investments in Affiliates | — | — | — | — | ||||||||||||
Options written | — | — | — | — | ||||||||||||
Foreign currency transactions | 66,588 | — | (258 | ) | 8,273 | |||||||||||
Net realized and change in unrealized gain (loss) | (18,736,141 | ) | 65,304,922 | (2,399,052 | ) | (12,106,680 | ) | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | $ | (11,573,097 | ) | $ | 64,164,986 | $ | (2,098,120 | ) | $ | (12,428,550 | ) | |||||
* Foreign withholding taxes | $ | 1,227,896 | $ | — | $ | 19,455 | $ | 134,082 | |
100 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI Health Sciences | AllianzGI Income & Growth | AllianzGI Mid-Cap | AllianzGI NFJ Dividend Value | AllianzGI NFJ International Value | ||||||||||||||||||
$ | 2,320,195 | $ | 32,730,440 | $ | 1,430,206 | $ | 49,210,207 | $ | 6,684,103 | |||||||||||||
16,008 | 94,968,984 | 4,483 | 54,200 | 6,674 | ||||||||||||||||||
7 | 176 | 24,602 | 80 | 11 | ||||||||||||||||||
2,336,210 | 127,699,600 | 1,459,291 | 49,264,487 | 6,690,788 | ||||||||||||||||||
1,226,963 | 26,639,275 | 1,384,507 | 7,443,978 | 1,298,436 | ||||||||||||||||||
610,517 | 14,643,835 | 1,144,290 | 5,936,752 | 1,028,695 | ||||||||||||||||||
40,250 | 8,691,178 | 416,712 | 984,421 | 158,712 | ||||||||||||||||||
— | 10,764 | 3,443 | 206,842 | 18,290 | ||||||||||||||||||
362,597 | 3,341,634 | 483,100 | 1,238,829 | 194,936 | ||||||||||||||||||
13,417 | 2,897,059 | 138,904 | 328,140 | 52,904 | ||||||||||||||||||
— | 10,764 | 3,443 | 206,842 | 18,290 | ||||||||||||||||||
— | — | 3,580 | 160,864 | 7,327 | ||||||||||||||||||
20,024 | 510,440 | 38,136 | 217,798 | 29,743 | ||||||||||||||||||
4,142 | 101,204 | 7,483 | 43,023 | 5,801 | ||||||||||||||||||
— | — | — | — | — | ||||||||||||||||||
113 | 2,766 | 207 | 1,264 | 165 | ||||||||||||||||||
— | — | — | 50,771 | 3,974 | ||||||||||||||||||
— | — | — | — | — | ||||||||||||||||||
1,275 | 46,385 | 4,083 | 30,597 | 18,570 | ||||||||||||||||||
2,279,298 | 56,895,304 | 3,627,888 | 16,850,121 | 2,835,843 | ||||||||||||||||||
— | (374,587 | ) | — | (1,733,319 | ) | (162,304 | ) | |||||||||||||||
2,279,298 | 56,520,717 | 3,627,888 | 15,116,802 | 2,673,539 | ||||||||||||||||||
56,912 | 71,178,883 | (2,168,597 | ) | 34,147,685 | 4,017,249 | |||||||||||||||||
18,945,101 | 236,520,662 | 7,637,849 | 130,028,359 | 6,520,290 | ||||||||||||||||||
— | 3,813,150 | — | — | — | ||||||||||||||||||
— | — | — | — | — | ||||||||||||||||||
(8,815 | ) | — | (112 | ) | 10 | (122,714 | ) | |||||||||||||||
— | 2,600 | — | — | — | ||||||||||||||||||
(380,172 | ) | (91,091,929 | ) | 31,311,937 | (113,532,002 | ) | (12,729,685 | ) | ||||||||||||||
— | (7,663,931 | ) | — | — | — | |||||||||||||||||
— | (825,515 | ) | — | — | — | |||||||||||||||||
7,542 | — | — | 413 | 27,990 | ||||||||||||||||||
18,563,656 | 140,755,037 | 38,949,674 | 16,496,780 | (6,304,119 | ) | |||||||||||||||||
$ | 18,620,568 | $ | 211,933,920 | $ | 36,781,077 | $ | 50,644,465 | $ | (2,286,870 | ) | ||||||||||||
$ | 75,997 | $ | 5,418 | $ | 7,005 | $ | 1,001,837 | $ | 576,113 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 101 |
Table of Contents
Statements of Operations (cont’d)
Year ended June 30, 2019
AllianzGI NFJ Large-Cap Value | AllianzGI NFJ Mid-Cap Value | AllianzGI NFJ Small-Cap Value | AllianzGI Small-Cap | |||||||||||||
Investment Income: | ||||||||||||||||
Interest | $ | 16,962 | $ | 80,779 | $ | 87,431 | $ | 10,003 | ||||||||
Dividends, net of foreign withholding taxes* | 9,348,866 | 31,164,366 | 44,143,690 | 1,477,204 | ||||||||||||
Miscellaneous | 15 | 56 | 80 | 13,847 | ||||||||||||
Total Investment Income | 9,365,843 | 31,245,201 | 44,231,201 | 1,501,054 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory | 1,578,888 | 7,015,388 | 9,391,268 | 589,304 | ||||||||||||
Administration | 1,272,350 | 4,625,059 | 5,112,958 | 374,592 | ||||||||||||
Distribution — Class C | 201,091 | 646,928 | 272,469 | 118,413 | ||||||||||||
Distribution — Class R | 7,408 | 45,493 | 71,626 | — | ||||||||||||
Servicing — Class A | 426,727 | 1,438,083 | 1,397,091 | 152,063 | ||||||||||||
Servicing — Class C | 67,030 | 215,643 | 90,823 | 39,471 | ||||||||||||
Servicing — Class R | 7,408 | 45,493 | 71,626 | — | ||||||||||||
Distribution and/or servicing — Administrative Class | 3,192 | 62,092 | 372,545 | — | ||||||||||||
Trustees | 45,259 | 160,681 | 215,231 | 12,443 | ||||||||||||
Line of credit commitment | 9,050 | 31,767 | 41,577 | 2,610 | ||||||||||||
Legal | 249 | 887 | 1,251 | 68 | ||||||||||||
Dividends on securities sold short | — | — | — | — | ||||||||||||
Interest expense | — | — | 30,721 | — | ||||||||||||
Securities sold short | — | — | — | — | ||||||||||||
Miscellaneous | 2,628 | 15,249 | 56,671 | 1,516 | ||||||||||||
Total Expenses | 3,621,280 | 14,302,763 | 17,125,857 | 1,290,480 | ||||||||||||
Less: Investment Advisory/Administration waived | — | (2,806,155 | ) | (1,209,633 | ) | (89,229 | ) | |||||||||
Net Expenses | 3,621,280 | 11,496,608 | 15,916,224 | 1,201,251 | ||||||||||||
Net Investment Income (Loss) | 5,744,563 | 19,748,593 | 28,314,977 | 299,803 | ||||||||||||
Realized and Change in Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Net realized loss on investments | (5,989,507 | ) | 34,856,131 | 52,263,505 | (971,773 | ) | ||||||||||
Securities sold short | — | — | — | — | ||||||||||||
Options written | — | — | — | — | ||||||||||||
Foreign currency transactions | — | 6,695 | (102,085 | ) | — | |||||||||||
Net change in unrealized appreciation/depreciation of: | ||||||||||||||||
Investments | 17,171,778 | (9,945,989 | ) | (252,684,546 | ) | (85,006 | ) | |||||||||
Securities sold short | — | — | — | — | ||||||||||||
Options written | — | — | — | — | ||||||||||||
Foreign currency transactions | 54 | (1,125 | ) | 824 | — | |||||||||||
Net realized and change in unrealized gain (loss) | 11,182,325 | 24,915,712 | (200,522,302 | ) | (1,056,779 | ) | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | $ | 16,926,888 | $ | 44,664,305 | $ | (172,207,325 | ) | $ | (756,976 | ) | ||||||
* Foreign withholding taxes | $ | 155,682 | $ | 172,292 | $ | 278,752 | $ | 658 |
102 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI Technology | ||||||
$ | 589,668 | |||||
6,821,713 | ||||||
4,444 | ||||||
7,415,825 | ||||||
14,382,882 | ||||||
5,420,389 | ||||||
560,860 | ||||||
— | ||||||
1,422,237 | ||||||
186,953 | ||||||
— | ||||||
41,838 | ||||||
205,837 | ||||||
39,740 | ||||||
1,127 | ||||||
6,445 | ||||||
9,113 | ||||||
63,535 | ||||||
19,088 | ||||||
22,360,044 | ||||||
(850,348 | ) | |||||
21,509,696 | ||||||
(14,093,871 | ) | |||||
183,015,595 | ||||||
17,459 | ||||||
(2,123,063 | ) | |||||
(125,937 | ) | |||||
20,897,236 | ||||||
(1,908 | ) | |||||
(5,861,193 | ) | |||||
(90,682 | ) | |||||
195,727,507 | ||||||
$ | 181,633,636 | |||||
$ | 37,700 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 103 |
Table of Contents
Statements of Changes in Net Assets
AllianzGI Emerging Markets Opportunities | AllianzGI Focused Growth | |||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||||||
Investment Operations: | ||||||||||||||||||||
Net investment income (loss) | $ | 7,163,044 | $ | 5,119,377 | $ | (1,139,936 | ) | $ | (765,369 | ) | ||||||||||
Net realized gain (loss) | (34,340,091 | ) | (8,920,246 | ) | 129,030,700 | 51,103,752 | ||||||||||||||
Net change in unrealized appreciation/depreciation | 15,603,950 | 13,156,224 | (63,725,778 | ) | 161,891,564 | |||||||||||||||
Net increase (decrease) in net assets resulting from investment operations | (11,573,097 | ) | 9,355,355 | 64,164,986 | 212,229,947 | |||||||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||||||
Net investment income: | ||||||||||||||||||||
Class A | — | (1,285,169 | ) | — | (23,468 | ) | ||||||||||||||
Class C | — | (25,141 | ) | — | (879 | ) | ||||||||||||||
Class R | — | — | — | (6 | ) | |||||||||||||||
Class P | — | (448,520 | ) | — | (113,936 | ) | ||||||||||||||
Institutional Class | — | (2,113,250 | ) | — | (203,158 | ) | ||||||||||||||
Class R6 | — | (14,883 | ) | — | (51,061 | ) | ||||||||||||||
Administrative Class | — | — | — | (10 | ) | |||||||||||||||
Net realized capital gains: | ||||||||||||||||||||
Class A | — | — | — | (5,392,582 | ) | |||||||||||||||
Class C | — | — | — | (4,432,093 | ) | |||||||||||||||
Class R | — | — | — | (398,509 | ) | |||||||||||||||
Class P | — | — | — | (1,561,919 | ) | |||||||||||||||
Institutional Class | — | — | — | (3,156,079 | ) | |||||||||||||||
Class R6 | — | — | — | (586,284 | ) | |||||||||||||||
Administrative Class | — | — | — | (71,082 | ) | |||||||||||||||
Total distributions paid:* | ||||||||||||||||||||
Class A | (969,272 | ) | — | (59,884,650 | ) | — | ||||||||||||||
Class C | (15,097 | ) | — | (8,093,814 | ) | — | ||||||||||||||
Class R | — | — | (3,051,304 | ) | — | |||||||||||||||
Class P | (507,886 | ) | — | (14,260,002 | ) | — | ||||||||||||||
Institutional Class | (6,130,461 | ) | — | (18,778,168 | ) | — | ||||||||||||||
Class R6 | (591,467 | ) | — | (13,248,091 | ) | — | ||||||||||||||
Administrative Class | — | — | (568,572 | ) | — | |||||||||||||||
Total dividends and distributions to shareholders | (8,214,183 | ) | (3,886,963 | ) | (117,884,601 | ) | (15,991,066 | ) | ||||||||||||
Fund Share Transactions: | ||||||||||||||||||||
Net proceeds from the sale of shares | 169,185,889 | 251,387,461 | 332,235,487 | 216,700,595 | ||||||||||||||||
Issued in reinvestment of dividends and distributions | 7,717,648 | 3,503,546 | 105,500,697 | 14,454,671 | ||||||||||||||||
Cost of shares redeemed | (146,848,611 | ) | (150,572,709 | ) | (426,260,678 | ) | (271,934,775 | ) | ||||||||||||
Net increase (decrease) from Fund share transactions | 30,054,926 | 104,318,298 | 11,475,506 | (40,779,509 | ) | |||||||||||||||
Total increase (decrease) in net assets | 10,267,646 | 109,786,690 | (42,244,109 | ) | 155,459,372 | |||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of year | 368,091,951 | 258,305,261 | 1,083,627,898 | 928,168,526 | ||||||||||||||||
End of year** | $ | 378,359,597 | $ | 368,091,951 | $ | 1,041,383,789 | $ | 1,083,627,898 |
— | May reflect actual amounts rounding to less than $1. |
* | Distributions from net investment income and net realized capital gains are combined for the year ended June 30, 2019. See Note 1 in the Notes to Financial Statements for more information regarding new accounting pronouncements. The dividends and distributions to shareholders for the year ended June 30, 2018 have not been reclassified to conform to the current year presentation. |
** | Net Assets — End of year includes undistributed (dividends in excess of) net investment income of $4,528,214 for AllianzGI Emerging Markets Opportunities, $(623,887) for AllianzGI Focused Growth, $203,172 for AllianzGI Global Natural Resources, $(671,237) AllianzGI GlobalSmall-Cap and $799,028 for AllianzGI Health Sciences as of June 30, 2018. |
104 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI Global Natural Resources | AllianzGI GlobalSmall-Cap | AllianzGI Health Sciences | ||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||
$ | 300,932 | $ | 229,563 | $ | (321,870 | ) | $ | (786,438 | ) | $ | 56,912 | $ | (146,044 | ) | ||||||||||||
(620,330 | ) | 1,099,614 | 3,514,942 | 36,877,430 | 18,936,286 | 12,896,013 | ||||||||||||||||||||
(1,778,722 | ) | 2,399,673 | (15,621,622 | ) | (3,737,620 | ) | (372,630 | ) | (4,771,108 | ) | ||||||||||||||||
(2,098,120 | ) | 3,728,850 | (12,428,550 | ) | 32,353,372 | 18,620,568 | 7,978,861 | |||||||||||||||||||
— | (22,600 | ) | — | (104,607 | ) | — | — | |||||||||||||||||||
— | (2 | ) | — | (4 | ) | — | — | |||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
— | (1 | ) | — | (53,154 | ) | — | — | |||||||||||||||||||
— | (33,505 | ) | — | (363,320 | ) | — | — | |||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
— | — | — | (4,831,503 | ) | — | — | ||||||||||||||||||||
— | — | — | (1,825,070 | ) | — | — | ||||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
— | — | — | (1,455,425 | ) | — | — | ||||||||||||||||||||
— | — | — | (7,466,205 | ) | — | — | ||||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
(106,938 | ) | — | (9,059,158 | ) | — | (19,287,433 | ) | — | ||||||||||||||||||
(13,875 | ) | — | (2,028,346 | ) | — | (661,505 | ) | — | ||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
(42,273 | ) | — | (2,305,369 | ) | — | — | — | |||||||||||||||||||
(116,198 | ) | — | (13,171,798 | ) | — | (324,420 | ) | — | ||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||||
(279,284 | ) | (56,108 | ) | (26,564,671 | ) | (16,099,288 | ) | (20,273,358 | ) | — | ||||||||||||||||
3,404,031 | 6,932,416 | 22,603,210 | 18,628,082 | 12,144,594 | 4,201,145 | |||||||||||||||||||||
256,399 | 49,377 | 24,879,822 | 14,938,931 | 19,582,484 | — | |||||||||||||||||||||
(9,715,627 | ) | (16,062,072 | ) | (68,042,255 | ) | (70,931,193 | ) | (26,779,664 | ) | (24,792,002 | ) | |||||||||||||||
(6,055,197 | ) | (9,080,279 | ) | (20,559,223 | ) | (37,364,180 | ) | 4,947,414 | (20,590,857 | ) | ||||||||||||||||
(8,432,601 | ) | (5,407,537 | ) | (59,552,444 | ) | (21,110,096 | ) | 3,294,624 | (12,611,996 | ) | ||||||||||||||||
(8,432,601) | (5,407,537) | (59,552,444) | (21,110,096) | 3,294,624 | (12,611,996) | |||||||||||||||||||||
20,661,799 | 26,069,336 | 193,444,251 | 214,554,347 | 152,193,943 | 164,805,939 | |||||||||||||||||||||
$ | 12,229,198 | $ | 20,661,799 | $ | 133,891,807 | $ | 193,444,251 | $ | 155,488,567 | $ | 152,193,943 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 105 |
Table of Contents
Statements of Changes in Net Assets (cont’d)
AllianzGI Income & Growth | AllianzGIMid-Cap | |||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||||||
Investment Operations: | ||||||||||||||||||||
Net investment income (loss) | $ | 71,178,883 | $ | 63,804,793 | $ | (2,168,597 | ) | $ | (2,449,712 | ) | ||||||||||
Net realized gain (loss) | 240,336,412 | 242,826,372 | 7,637,737 | 51,205,374 | ||||||||||||||||
Net change in unrealized appreciation/depreciation | (99,581,375 | ) | (993,051 | ) | 31,311,937 | (9,218,208 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from investment operations | 211,933,920 | 305,638,114 | 36,781,077 | 39,537,454 | ||||||||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||||||
Net investment income: | ||||||||||||||||||||
Class A | — | (27,990,677 | ) | — | — | |||||||||||||||
Class C | — | (20,598,689 | ) | — | — | |||||||||||||||
Class R | — | (59,020 | ) | — | — | |||||||||||||||
Class P | — | (19,970,577 | ) | — | — | |||||||||||||||
Institutional Class | — | (10,121,944 | ) | — | — | |||||||||||||||
Class R6 | — | — | — | — | ||||||||||||||||
Administrative Class | — | — | — | — | ||||||||||||||||
Net realized capital gains: | ||||||||||||||||||||
Class A | — | (69,579,945 | ) | — | (10,987,891 | ) | ||||||||||||||
Class C | — | (69,473,288 | ) | — | (16,017,034 | ) | ||||||||||||||
Class R | — | (168,277 | ) | — | (266,285 | ) | ||||||||||||||
Class P | — | (45,366,902 | ) | — | (879,671 | ) | ||||||||||||||
Institutional Class | — | (22,148,657 | ) | — | (2,321,396 | ) | ||||||||||||||
Class R6 | — | — | — | — | ||||||||||||||||
Administrative Class | — | — | — | (121,353 | ) | |||||||||||||||
Return of Capital: | ||||||||||||||||||||
Class A | — | — | — | — | ||||||||||||||||
Class C | — | — | — | — | ||||||||||||||||
Class R | — | — | — | — | ||||||||||||||||
Class P | — | — | — | — | ||||||||||||||||
Institutional Class | — | — | — | — | ||||||||||||||||
Class R6 | — | — | — | — | ||||||||||||||||
Administrative Class | — | — | — | — | ||||||||||||||||
Total distributions paid:* | ||||||||||||||||||||
Class A | (110,411,831 | ) | — | (27,816,569 | ) | — | ||||||||||||||
Class C | (96,161,658 | ) | — | (3,319,825 | ) | — | ||||||||||||||
Class R | (343,496 | ) | — | (183,135 | ) | — | ||||||||||||||
Class P | (84,862,532 | ) | — | (1,150,131 | ) | — | ||||||||||||||
Institutional Class | (47,989,045 | ) | — | (3,438,770 | ) | — | ||||||||||||||
Class R6 | — | — | — | — | ||||||||||||||||
Administrative Class | — | — | (163,523 | ) | — | |||||||||||||||
Total dividends and distributions to shareholders | (339,768,562 | ) | (285,477,976 | ) | (36,071,953 | ) | (30,593,630 | ) | ||||||||||||
Fund Share Transactions: | ||||||||||||||||||||
Net proceeds from the sale of shares | 1,709,498,560 | 1,196,339,109 | 147,501,131 | 27,220,178 | ||||||||||||||||
Issued in reinvestment of dividends and distributions | 303,320,720 | 246,915,825 | 32,092,605 | 26,897,865 | ||||||||||||||||
Cost of shares redeemed | (1,090,296,297 | ) | (952,452,588 | ) | (173,708,354 | ) | (51,312,655 | ) | ||||||||||||
Net increase (decrease) from Fund share transactions | 922,522,983 | 490,802,346 | 5,885,382 | 2,805,388 | ||||||||||||||||
Total increase (decrease) in net assets | 794,688,341 | 510,962,484 | 6,594,506 | 11,749,212 | ||||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of year | 3,728,317,213 | 3,217,354,729 | 305,572,917 | 293,823,705 | ||||||||||||||||
End of year** | $ | 4,523,005,554 | $ | 3,728,317,213 | $ | 312,167,423 | $ | 305,572,917 |
— | May reflect actual amounts rounding to less than $1. |
* | Distributions from net investment income and net realized capital gains are combined for the year ended June 30, 2019. See Note 1 in the Notes to Financial Statements for more information regarding new accounting pronouncements. The dividends and distributions to shareholders for the year ended June 30, 2018 have not been reclassified to conform to the current year presentation. |
** | Net Assets — End of year includes undistributed (dividends in excess of) net investment income of $(21,395,422) for AllianzGI Income & Growth, $(1,717,007) for AllianzGIMid-Cap, $1,989,444 for AllianzGI NFJ Dividend Value, $(522,383) for AllianzGI NFJ International Value and $(121,757) for AllianzGI NFJLarge-Cap Value as of June 30, 2018. |
106 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGI NFJ Dividend Value | AllianzGI NFJ International Value | AllianzGI NFJLarge-Cap Value | ||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||
$ | 34,147,685 | $ | 42,245,052 | $ | 4,017,249 | $ | 6,644,356 | $ | 5,744,563 | $ | 5,763,663 | |||||||||||||||
130,028,369 | 367,187,371 | 6,397,576 | 35,616,621 | (5,989,507 | ) | 89,131,221 | ||||||||||||||||||||
(113,531,589 | ) | (147,665,772 | ) | (12,701,695 | ) | (18,041,126 | ) | 17,171,832 | (61,826,574 | ) | ||||||||||||||||
50,644,465 | 261,766,651 | (2,286,870 | ) | 24,219,851 | 16,926,888 | 33,068,310 | ||||||||||||||||||||
— | (9,168,967 | ) | — | (1,729,618 | ) | — | (2,421,068 | ) | ||||||||||||||||||
— | (2,386,455 | ) | — | (468,524 | ) | — | (556,867 | ) | ||||||||||||||||||
— | (1,520,389 | ) | — | (126,870 | ) | — | (85,092 | ) | ||||||||||||||||||
— | (11,863,238 | ) | — | (2,064,885 | ) | — | (357,030 | ) | ||||||||||||||||||
— | (11,118,898 | ) | — | (1,206,487 | ) | — | (2,414,451 | ) | ||||||||||||||||||
— | (1,926,654 | ) | — | (44,765 | ) | — | — | |||||||||||||||||||
— | (2,481,551 | ) | — | (92,560 | ) | — | (22,813 | ) | ||||||||||||||||||
— | (116,513,958 | ) | — | — | — | — | ||||||||||||||||||||
— | (55,513,493 | ) | — | — | — | — | ||||||||||||||||||||
— | (22,585,984 | ) | — | — | — | — | ||||||||||||||||||||
— | (132,640,140 | ) | — | — | — | — | ||||||||||||||||||||
— | (114,548,968 | ) | — | — | — | — | ||||||||||||||||||||
— | (18,541,699 | ) | — | — | — | — | ||||||||||||||||||||
— | (20,927,043 | ) | — | — | — | — | ||||||||||||||||||||
— | — | — | (46,282 | ) | — | — | ||||||||||||||||||||
— | — | — | (19,274 | ) | — | — | ||||||||||||||||||||
— | — | — | (4,762 | ) | — | — | ||||||||||||||||||||
— | — | — | (46,555 | ) | — | — | ||||||||||||||||||||
— | — | — | (28,713 | ) | — | — | ||||||||||||||||||||
— | — | — | (933 | ) | — | — | ||||||||||||||||||||
— | — | — | (2,475 | ) | — | — | ||||||||||||||||||||
(103,972,637 | ) | — | (1,240,282 | ) | — | (2,878,118 | ) | — | ||||||||||||||||||
(19,705,892 | ) | — | (150,145 | ) | — | (156,046 | ) | — | ||||||||||||||||||
(15,736,853 | ) | — | (92,441 | ) | — | (37,054 | ) | — | ||||||||||||||||||
(93,724,314 | ) | — | (886,735 | ) | — | (361,691 | ) | — | ||||||||||||||||||
(71,655,918 | ) | — | (914,475 | ) | — | (2,637,372 | ) | — | ||||||||||||||||||
(15,698,988 | ) | — | (28,658 | ) | — | — | — | |||||||||||||||||||
(13,203,454 | ) | — | (40,736 | ) | — | (22,170 | ) | — | ||||||||||||||||||
(333,698,056 | ) | (521,737,437 | ) | (3,353,472 | ) | (5,882,703 | ) | (6,092,451 | ) | (5,857,321 | ) | |||||||||||||||
301,776,596 | 278,975,203 | 37,499,896 | 56,218,043 | 74,280,028 | 37,353,233 | |||||||||||||||||||||
286,170,219 | 445,389,136 | 2,985,084 | 5,200,274 | 5,653,505 | 5,362,953 | |||||||||||||||||||||
(912,899,785 | ) | (1,316,418,856 | ) | (141,030,657 | ) | (243,497,297 | ) | (107,300,262 | ) | (70,138,960 | ) | |||||||||||||||
(324,952,970 | ) | (592,054,517 | ) | (100,545,677 | ) | (182,078,980 | ) | (27,366,729 | ) | (27,422,774 | ) | |||||||||||||||
(608,006,561 | ) | (852,025,303 | ) | (106,186,019 | ) | (163,741,832 | ) | (16,532,292 | ) | (211,785 | ) | |||||||||||||||
1,965,249,775 | 2,817,275,078 | 285,991,588 | 449,733,420 | 362,063,027 | 362,274,812 | |||||||||||||||||||||
$ | 1,357,243,214 | $ | 1,965,249,775 | $ | 179,805,569 | $ | 285,991,588 | $ | 345,530,735 | $ | 362,063,027 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 107 |
Table of Contents
Statements of Changes in Net Assets (cont’d)
AllianzGI NFJMid-Cap Value | AllianzGI NFJSmall-Cap Value | |||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||
Increase in Net Assets from: | ||||||||||||||||||||
Investment Operations: | ||||||||||||||||||||
Net investment income (loss) | $ | 19,748,593 | $ | 11,884,978 | $ | 28,314,977 | $ | 38,441,521 | ||||||||||||
Net realized gain (loss) | 34,862,826 | 11,068,507 | 52,161,420 | 344,066,391 | ||||||||||||||||
Net change in unrealized appreciation/depreciation | (9,947,114 | ) | 4,697,184 | (252,683,722 | ) | (185,882,457 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from investment operations | 44,664,305 | 27,650,669 | (172,207,325 | ) | 196,625,455 | |||||||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||||||
Net investment income: | ||||||||||||||||||||
Class A | — | (4,171,641 | ) | — | (3,377,555 | ) | ||||||||||||||
Class C | — | (318,297 | ) | — | (53 | ) | ||||||||||||||
Class R | — | (77,400 | ) | — | (63,699 | ) | ||||||||||||||
Class P | — | (1,511,170 | ) | — | (521,236 | ) | ||||||||||||||
Institutional Class | — | (1,586,074 | ) | — | (8,284,457 | ) | ||||||||||||||
Class R6 | — | (2,590 | ) | — | (3,628,782 | ) | ||||||||||||||
Administrative Class | — | (103,493 | ) | — | (1,623,000 | ) | ||||||||||||||
Net realized capital gains: | ||||||||||||||||||||
Class A | — | (44,702,946 | ) | — | (115,908,457 | ) | ||||||||||||||
Class C | — | (17,643,815 | ) | — | (22,666,813 | ) | ||||||||||||||
Class R | — | (819,284 | ) | — | (7,153,419 | ) | ||||||||||||||
Class P | — | (10,998,117 | ) | — | (10,801,192 | ) | ||||||||||||||
Institutional Class | — | (11,199,186 | ) | — | (158,591,956 | ) | ||||||||||||||
Class R6 | — | (16,847 | ) | — | (63,789,144 | ) | ||||||||||||||
Administrative Class | — | (849,232 | ) | — | (48,474,051 | ) | ||||||||||||||
Total distributions paid:* | ||||||||||||||||||||
Class A | (8,958,098 | ) | — | (125,664,406 | ) | — | ||||||||||||||
Class C | (259,371 | ) | — | (3,447,097 | ) | — | ||||||||||||||
Class R | (286,719 | ) | — | (6,171,694 | ) | — | ||||||||||||||
Class P | (3,913,377 | ) | — | (11,101,354 | ) | — | ||||||||||||||
Institutional Class | (6,182,427 | ) | — | (94,888,377 | ) | — | ||||||||||||||
Class R6 | (220,071 | ) | — | (46,791,068 | ) | — | ||||||||||||||
Administrative Class | (393,619 | ) | — | (34,340,757 | ) | — | ||||||||||||||
Total dividends and distributions to shareholders | (20,213,682 | ) | (94,000,092 | ) | (322,404,753 | ) | (444,883,814 | ) | ||||||||||||
Fund Share Transactions: | ||||||||||||||||||||
Net proceeds from the sale of shares | 552,773,876 | 792,678,134 | 283,770,753 | 490,123,036 | ||||||||||||||||
Issued in reinvestment of dividends and distributions | 18,064,016 | 84,180,541 | 294,059,205 | 414,202,018 | ||||||||||||||||
Cost of shares redeemed | (551,921,766 | ) | (306,899,043 | ) | (1,291,552,009 | ) | (1,487,596,822 | ) | ||||||||||||
Net increase (decrease) from Fund share transactions | 18,916,126 | 569,959,632 | (713,722,051 | ) | (583,271,768 | ) | ||||||||||||||
Total increase in net assets | 43,366,749 | 503,610,209 | (1,208,334,129 | ) | (831,530,127 | ) | ||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of year | 1,269,434,411 | 765,824,202 | 2,259,952,143 | 3,091,482,270 | ||||||||||||||||
End of year** | $ | 1,312,801,160 | $ | 1,269,434,411 | $ | 1,051,618,014 | $ | 2,259,952,143 |
— | May reflect actual amounts rounding to less than $1. |
* | Distributions from net investment income and net realized capital gains are combined for the year ended June 30, 2019. See Note 1 in the Notes to Financial Statements for more information regarding new accounting pronouncements. The dividends and distributions to shareholders for the year ended June 30, 2018 have not been reclassified to conform to the current year presentation. |
** | Net Assets — End of year includes undistributed (dividends in excess of) net investment income of $106,049 for AllianzGI NFJMid-Cap Value, $444,830 for AllianzGI NFJSmall-Cap Value, $(240,398) for AllianzGISmall-Cap and $(7,056,692) for AllianzGI Technology as of June 30, 2018. |
108 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
AllianzGISmall-Cap | AllianzGI Technology | |||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||
$ | 299,803 | $ | (296,987 | ) | $ | (14,093,871 | ) | $ | (12,249,945 | ) | ||||||||
(971,773 | ) | 11,815,368 | 180,784,054 | 323,500,019 | ||||||||||||||
(85,006 | ) | 3,812,594 | 14,943,453 | 166,330,893 | ||||||||||||||
(756,976 | ) | 15,330,975 | 181,633,636 | 477,580,967 | ||||||||||||||
— | — | — | — | |||||||||||||||
— | — | — | — | |||||||||||||||
— | — | — | — | |||||||||||||||
— | — | — | — | |||||||||||||||
— | — | — | — | |||||||||||||||
— | — | — | — | |||||||||||||||
— | — | — | — | |||||||||||||||
— | (5,340,498 | ) | — | (76,542,243 | ) | |||||||||||||
— | (4,343,421 | ) | — | (23,797,863 | ) | |||||||||||||
— | — | — | — | |||||||||||||||
— | (550,506 | ) | — | (9,980,800 | ) | |||||||||||||
— | (520,890 | ) | — | (114,417,733 | ) | |||||||||||||
— | — | — | — | |||||||||||||||
— | — | — | (2,594,308 | ) | ||||||||||||||
(5,374,154 | ) | — | (103,779,572 | ) | — | |||||||||||||
(708,974 | ) | — | (11,594,326 | ) | — | |||||||||||||
— | — | — | — | |||||||||||||||
(673,909 | ) | — | (21,155,444 | ) | — | |||||||||||||
(553,729 | ) | — | (126,878,404 | ) | — | |||||||||||||
(43,874 | ) | — | — | — | ||||||||||||||
— | — | (3,019,512 | ) | — | ||||||||||||||
(7,354,640 | ) | (10,755,315 | ) | (266,427,258 | ) | (227,332,947 | ) | |||||||||||
64,704,067 | 17,254,774 | 528,506,555 | 420,037,569 | |||||||||||||||
6,805,302 | 9,698,353 | 252,764,407 | 216,039,340 | |||||||||||||||
(47,676,925 | ) | (15,374,400 | ) | (661,953,777 | ) | (679,635,733 | ) | |||||||||||
23,832,444 | 11,578,727 | 119,317,185 | (43,558,824 | ) | ||||||||||||||
15,720,828 | 16,154,387 | 34,523,563 | 206,689,196 | |||||||||||||||
94,927,007 | 78,772,620 | 1,582,732,641 | 1,376,043,445 | |||||||||||||||
$ | 110,647,835 | $ | 94,927,007 | $ | 1,617,256,204 | $ | 1,582,732,641 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 109 |
Table of Contents
For a Share Outstanding for the Period ended:^
Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Net Asset Value, End of Period | |||||||||||||||||||||||
AllianzGI Emerging Markets Opportunities: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 28.53 | $ | 0.56 | $ | (1.55 | ) | $ | (0.99 | ) | $ | (0.48 | ) | $ | 27.06 | |||||||||||||
6/30/2018 | 26.59 | 0.41 | 1.85 | 2.26 | (0.32 | ) | 28.53 | |||||||||||||||||||||
6/30/2017 | 22.60 | 0.41 | 3.98 | 4.39 | (0.40 | ) | 26.59 | |||||||||||||||||||||
6/30/2016 | 25.90 | 0.34 | (3.39 | ) | (3.05 | ) | (0.25 | ) | 22.60 | |||||||||||||||||||
6/30/2015 | 27.00 | 0.35 | (1.10 | ) | (0.75 | ) | (0.35 | ) | 25.90 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 28.05 | $ | 0.31 | $ | (1.45 | ) | $ | (1.14 | ) | $ | (0.10 | ) | $ | 26.81 | |||||||||||||
6/30/2018 | 26.13 | 0.16 | 1.84 | 2.00 | (0.08 | ) | 28.05 | |||||||||||||||||||||
6/30/2017 | 22.09 | 0.19 | 3.96 | 4.15 | (0.11 | ) | 26.13 | |||||||||||||||||||||
6/30/2016 | 25.21 | 0.22 | (3.34 | ) | (3.12 | ) | — | 22.09 | ||||||||||||||||||||
6/30/2015 | 26.25 | 0.14 | (1.07 | ) | (0.93 | ) | (0.11 | ) | 25.21 | |||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 28.02 | $ | 0.55 | $ | (1.47 | ) | $ | (0.92 | ) | $ | (0.64 | ) | $ | 26.46 | |||||||||||||
6/30/2018 | 26.17 | 0.46 | 1.84 | 2.30 | (0.45 | ) | 28.02 | |||||||||||||||||||||
6/30/2017 | 22.23 | 0.44 | 3.94 | 4.38 | (0.44 | ) | 26.17 | |||||||||||||||||||||
6/30/2016 | 25.44 | 0.46 | (3.40 | ) | (2.94 | ) | (0.27 | ) | 22.23 | |||||||||||||||||||
6/30/2015 | 26.63 | 0.42 | (1.11 | ) | (0.69 | ) | (0.50 | ) | 25.44 | |||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 28.72 | $ | 0.54 | $ | (1.47 | ) | $ | (0.93 | ) | $ | (0.69 | ) | $ | 27.10 | |||||||||||||
6/30/2018 | 26.83 | 0.53 | 1.85 | 2.38 | (0.49 | ) | 28.72 | |||||||||||||||||||||
6/30/2017 | 22.74 | 0.49 | 4.03 | 4.52 | (0.43 | ) | 26.83 | |||||||||||||||||||||
6/30/2016 | 25.95 | 0.44 | (3.42 | ) | (2.98 | ) | (0.23 | ) | 22.74 | |||||||||||||||||||
6/30/2015 | 27.11 | 0.43 | (1.11 | ) | (0.68 | ) | (0.48 | ) | 25.95 | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
6/30/2019 | $ | 28.57 | $ | 0.57 | $ | (1.48 | ) | $ | (0.91 | ) | $ | (0.70 | ) | $ | 26.96 | |||||||||||||
6/30/2018 | 26.69 | 0.62 | 1.76 | 2.38 | (0.50 | ) | 28.57 | |||||||||||||||||||||
6/30/2017 | 22.69 | 0.60 | 3.90 | 4.50 | (0.50 | ) | 26.69 | |||||||||||||||||||||
12/14/2015* - 6/30/2016 | 21.21 | 0.31 | 1.47 | 1.78 | (0.30 | ) | 22.69 |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
* | Commencement of operations. |
(a) | Calculated on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the period and a sale of a share on the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. Total return for a period of less than one year is not annualized. |
(c) | Annualized, unless otherwise noted. |
110 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Return (b) | Net Assets, End of Period (000s) | Ratio of Fee Waiver/ | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net to Average | Portfolio Turnover Rate | |||||||||||||||||||||
(3.29 | )% | $ | 48,388 | 1.26 | % | 1.61 | % | 2.08 | % | 101 | % | |||||||||||||||
8.44 | 108,279 | 1.26 | 1.61 | 1.36 | 88 | |||||||||||||||||||||
19.76 | 154,357 | 1.42 | 1.62 | 1.69 | 155 | |||||||||||||||||||||
(11.73 | ) | 143,677 | 1.48 | 1.62 | 1.59 | 85 | ||||||||||||||||||||
(2.76 | ) | 28,690 | 1.67 | 1.67 | 1.30 | 99 | ||||||||||||||||||||
(4.05 | )% | $ | 3,675 | 2.01 | % | 2.36 | % | 1.15 | % | 101 | % | |||||||||||||||
7.63 | 8,113 | 2.01 | 2.36 | 0.55 | 88 | |||||||||||||||||||||
18.91 | 8,982 | 2.17 | 2.37 | 0.80 | 155 | |||||||||||||||||||||
(12.38 | ) | 11,862 | 2.27 | 2.37 | 1.02 | 85 | ||||||||||||||||||||
(3.53 | ) | 15,069 | 2.42 | 2.42 | 0.53 | 99 | ||||||||||||||||||||
(3.05 | )% | $ | 20,454 | 1.01 | % | 1.36 | % | 2.08 | % | 101 | % | |||||||||||||||
8.71 | 29,887 | 1.01 | 1.36 | 1.55 | 88 | |||||||||||||||||||||
20.11 | 21,586 | 1.17 | 1.37 | 1.86 | 155 | |||||||||||||||||||||
(11.51 | ) | 20,262 | 1.26 | 1.37 | 2.11 | 85 | ||||||||||||||||||||
(2.53 | ) | 12,229 | 1.42 | 1.42 | 1.63 | 99 | ||||||||||||||||||||
(2.97 | )% | $ | 282,196 | 0.91 | % | 1.26 | % | 2.03 | % | 101 | % | |||||||||||||||
8.79 | 197,536 | 0.91 | 1.26 | 1.74 | 88 | |||||||||||||||||||||
20.26 | 72,688 | 1.07 | 1.27 | 2.02 | 155 | |||||||||||||||||||||
(11.41 | ) | 64,785 | 1.17 | 1.27 | 2.00 | 85 | ||||||||||||||||||||
(2.45 | ) | 62,339 | 1.32 | 1.32 | 1.60 | 99 | ||||||||||||||||||||
(2.93 | )% | $ | 23,647 | 0.86 | % | 1.21 | % | 2.13 | % | 101 | % | |||||||||||||||
8.85 | 24,277 | 0.86 | 1.21 | 2.03 | 88 | |||||||||||||||||||||
20.27 | 692 | 1.02 | 1.22 | 2.46 | 155 | |||||||||||||||||||||
8.46 | 21 | 1.07 | (c) | 1.22 | (c) | 2.63 | (c) | 85 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 111 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Period ended:^
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI Focused Growth: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 56.83 | $ | (0.08 | ) | $ | 2.48 | $ | 2.40 | $ | — | $ | (5.90 | ) | ||||||||||||||
6/30/2018 | 46.62 | — | 10.92 | 10.92 | — | (0.71 | ) | |||||||||||||||||||||
6/30/2017 | 40.72 | 0.06 | 6.85 | 6.91 | — | (1.01 | ) | |||||||||||||||||||||
6/30/2016 | 42.73 | 0.08 | 0.62 | 0.70 | — | (2.71 | ) | |||||||||||||||||||||
6/30/2015 | 41.93 | (0.03 | ) | 4.57 | 4.54 | (0.17 | ) | (3.57 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 39.41 | $ | (0.36 | ) | $ | 1.27 | $ | 0.91 | $ | — | $ | (5.90 | ) | ||||||||||||||
6/30/2018 | 32.76 | (0.29 | ) | 7.65 | 7.36 | — | (0.71 | ) | ||||||||||||||||||||
6/30/2017 | 29.12 | (0.19 | ) | 4.84 | 4.65 | — | (1.01 | ) | ||||||||||||||||||||
6/30/2016 | 31.53 | (0.17 | ) | 0.47 | 0.30 | — | (2.71 | ) | ||||||||||||||||||||
6/30/2015 | 31.96 | (0.25 | ) | 3.40 | 3.15 | (0.01 | ) | (3.57 | ) | |||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 43.54 | $ | (0.16 | ) | $ | 1.54 | $ | 1.38 | $ | — | $ | (5.90 | ) | ||||||||||||||
6/30/2018 | 35.95 | (0.11 | ) | 8.41 | 8.30 | — | (0.71 | ) | ||||||||||||||||||||
6/30/2017 | 31.71 | (0.04 | ) | 5.29 | 5.25 | — | (1.01 | ) | ||||||||||||||||||||
6/30/2016 | 33.93 | (0.02 | ) | 0.51 | 0.49 | — | (2.71 | ) | ||||||||||||||||||||
6/30/2015 | 34.08 | (0.11 | ) | 3.66 | 3.55 | (0.13 | ) | (3.57 | ) | |||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 44.18 | $ | 0.03 | $ | 1.60 | $ | 1.63 | $ | — | $ | (5.90 | ) | |||||||||||||||
6/30/2018 | 36.33 | 0.09 | 8.52 | 8.61 | (0.05 | ) | (0.71 | ) | ||||||||||||||||||||
6/30/2017 | 31.88 | 0.14 | 5.32 | 5.46 | — | (1.01 | ) | |||||||||||||||||||||
6/30/2016 | 33.94 | 0.15 | 0.50 | 0.65 | — | (2.71 | ) | |||||||||||||||||||||
6/30/2015 | 34.09 | 0.06 | 3.66 | 3.72 | (0.30 | ) | (3.57 | ) | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 52.51 | $ | 0.09 | $ | 2.19 | $ | 2.28 | $ | — | $ | (5.90 | ) | |||||||||||||||
6/30/2018 | 43.02 | 0.16 | 10.08 | 10.24 | (0.04 | ) | (0.71 | ) | ||||||||||||||||||||
6/30/2017 | 37.53 | 0.20 | 6.30 | 6.50 | — | (1.01 | ) | |||||||||||||||||||||
6/30/2016 | 39.45 | 0.21 | 0.58 | 0.79 | — | (2.71 | ) | |||||||||||||||||||||
6/30/2015 | 39.01 | 0.11 | 4.23 | 4.34 | (0.33 | ) | (3.57 | ) | ||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
6/30/2019 | $ | 52.56 | $ | 0.11 | $ | 2.19 | $ | 2.30 | $ | — | $ | (5.90 | ) | |||||||||||||||
6/30/2018 | 43.04 | 0.19 | 10.10 | 10.29 | (0.06 | ) | (0.71 | ) | ||||||||||||||||||||
6/30/2017 | 37.53 | 0.21 | 6.31 | 6.52 | — | (1.01 | ) | |||||||||||||||||||||
12/14/2015* - 6/30/2016 | 37.51 | 0.12 | (0.10 | ) | 0.02 | — | — | |||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 49.33 | $ | (0.04 | ) | $ | 1.97 | $ | 1.93 | $ | — | $ | (5.90 | ) | ||||||||||||||
6/30/2018 | 40.51 | 0.03 | 9.50 | 9.53 | — | (0.71 | ) | |||||||||||||||||||||
6/30/2017 | 35.48 | 0.09 | 5.95 | 6.04 | — | (1.01 | ) | |||||||||||||||||||||
6/30/2016 | 37.53 | 0.11 | 0.55 | 0.66 | — | (2.71 | ) | |||||||||||||||||||||
6/30/2015 | 37.31 | 0.01 | 4.02 | 4.03 | (0.24 | ) | (3.57 | ) |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
* | Commencement of operations. |
(a) | Calculated on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the period and a sale of a share on the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. Total return for a period of less than one year is not annualized. |
(c) | Annualized, unless otherwise noted. |
112 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (b) | Net Assets, End of Period (000s) | Ratio of Fee Waiver/ | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (5.90 | ) | $ | 53.33 | 6.79 | % | $ | 577,106 | 1.00 | % | 1.12 | % | (0.15 | )% | 50 | % | ||||||||||||||||||
(0.71 | ) | 56.83 | 23.53 | 421,188 | 0.99 | 1.11 | — | 40 | ||||||||||||||||||||||||||
(1.01 | ) | 46.62 | 17.29 | 373,359 | 1.05 | 1.11 | 0.15 | 46 | ||||||||||||||||||||||||||
(2.71 | ) | 40.72 | 1.54 | 357,077 | 1.11 | 1.11 | 0.20 | 55 | ||||||||||||||||||||||||||
(3.74 | ) | 42.73 | 11.57 | 297,572 | 1.11 | 1.11 | (0.06 | ) | 58 | |||||||||||||||||||||||||
$ | (5.90 | ) | $ | 34.42 | 5.93 | % | $ | 48,706 | 1.77 | % | 1.87 | % | (0.93 | )% | 50 | % | ||||||||||||||||||
(0.71 | ) | 39.41 | 22.59 | 233,854 | 1.76 | 1.86 | (0.77 | ) | 40 | |||||||||||||||||||||||||
(1.01 | ) | 32.76 | 16.40 | 217,685 | 1.81 | 1.86 | (0.62 | ) | 46 | |||||||||||||||||||||||||
(2.71 | ) | 29.12 | 0.79 | 230,432 | 1.86 | 1.86 | (0.56 | ) | 55 | |||||||||||||||||||||||||
(3.58 | ) | 31.53 | 10.76 | 227,519 | 1.86 | 1.86 | (0.81 | ) | 58 | |||||||||||||||||||||||||
$ | (5.90 | ) | $ | 39.02 | 6.50 | % | $ | 22,511 | 1.27 | % | 1.37 | % | (0.41 | )% | 50 | % | ||||||||||||||||||
(0.71 | ) | 43.54 | 23.21 | 23,781 | 1.26 | 1.36 | (0.27 | ) | 40 | |||||||||||||||||||||||||
(1.01 | ) | 35.95 | 16.96 | 20,635 | 1.31 | 1.36 | (0.11 | ) | 46 | |||||||||||||||||||||||||
(2.71 | ) | 31.71 | 1.31 | 17,877 | 1.36 | 1.36 | (0.05 | ) | 55 | |||||||||||||||||||||||||
(3.70 | ) | 33.93 | 11.32 | 14,751 | 1.36 | 1.36 | (0.31 | ) | 58 | |||||||||||||||||||||||||
$ | (5.90 | ) | $ | 39.91 | 7.01 | % | $ | 91,265 | 0.77 | % | 0.87 | % | 0.09 | % | 50 | % | ||||||||||||||||||
(0.76 | ) | 44.18 | 23.84 | 109,456 | 0.76 | 0.86 | 0.23 | 40 | ||||||||||||||||||||||||||
(1.01 | ) | 36.33 | 17.54 | 80,667 | 0.81 | 0.86 | 0.41 | 46 | ||||||||||||||||||||||||||
(2.71 | ) | 31.88 | 1.81 | 35,025 | 0.86 | 0.86 | 0.46 | 55 | ||||||||||||||||||||||||||
(3.87 | ) | 33.94 | 11.88 | 16,050 | 0.86 | 0.86 | 0.19 | 58 | ||||||||||||||||||||||||||
$ | (5.90 | ) | $ | 48.89 | 7.15 | % | $ | 162,173 | 0.67 | % | 0.77 | % | 0.18 | % | 50 | % | ||||||||||||||||||
(0.75 | ) | 52.51 | 23.93 | 177,278 | 0.66 | 0.76 | 0.33 | 40 | ||||||||||||||||||||||||||
(1.01 | ) | 43.02 | 17.67 | 195,161 | 0.71 | 0.76 | 0.50 | 46 | ||||||||||||||||||||||||||
(2.71 | ) | 37.53 | 1.92 | 155,976 | 0.76 | 0.76 | 0.55 | 55 | ||||||||||||||||||||||||||
(3.90 | ) | 39.45 | 11.99 | 122,979 | 0.76 | 0.76 | 0.29 | 58 | ||||||||||||||||||||||||||
$ | (5.90 | ) | $ | 48.96 | 7.18 | % | $ | 134,485 | 0.62 | % | 0.72 | % | 0.23 | % | 50 | % | ||||||||||||||||||
(0.77 | ) | 52.56 | 24.03 | 114,054 | 0.61 | 0.71 | 0.38 | 40 | ||||||||||||||||||||||||||
(1.01 | ) | 43.04 | 17.72 | 36,374 | 0.66 | 0.71 | 0.53 | 46 | ||||||||||||||||||||||||||
— | 37.53 | 0.05 | 11,564 | 0.71 | (c) | 0.71 | (c) | 0.60 | (c) | 55 | ||||||||||||||||||||||||
$ | (5.90 | ) | $ | 45.36 | 6.88 | % | $ | 5,138 | 0.92 | % | 1.02 | % | (0.08 | )% | 50 | % | ||||||||||||||||||
(0.71 | ) | 49.33 | 23.63 | 4,017 | 0.91 | 1.01 | 0.07 | 40 | ||||||||||||||||||||||||||
(1.01 | ) | 40.51 | 17.39 | 4,288 | 0.96 | 1.01 | 0.25 | 46 | ||||||||||||||||||||||||||
(2.71 | ) | 35.48 | 1.65 | 7,900 | 1.01 | 1.01 | 0.29 | 55 | ||||||||||||||||||||||||||
(3.81 | ) | 37.53 | 11.67 | 6,439 | 1.01 | 1.01 | 0.04 | 58 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 113 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (Loss) (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Net Asset Value, End of Year | |||||||||||||||||||||||
AllianzGI Global Natural Resources: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 15.95 | $ | 0.27 | $ | (1.78 | ) | $ | (1.51 | ) | $ | (0.24 | ) | $ | 14.20 | |||||||||||||
6/30/2018 | 13.77 | 0.13 | 2.08 | 2.21 | (0.03 | ) | 15.95 | |||||||||||||||||||||
6/30/2017 | 14.67 | 0.01 | (0.78 | ) | (0.77 | ) | (0.13 | ) | 13.77 | |||||||||||||||||||
6/30/2016 | 16.66 | 0.05 | (1.97 | ) | (1.92 | ) | (0.07 | ) | 14.67 | |||||||||||||||||||
6/30/2015 | 20.71 | 0.06 | (4.11 | ) | (4.05 | ) | — | 16.66 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 14.90 | $ | 0.15 | $ | (1.64 | ) | $ | (1.49 | ) | $ | (0.12 | ) | $ | 13.29 | |||||||||||||
6/30/2018 | 12.93 | 0.02 | 1.95 | 1.97 | — | 14.90 | ||||||||||||||||||||||
6/30/2017 | 13.77 | (0.10 | ) | (0.74 | ) | (0.84 | ) | — | 12.93 | |||||||||||||||||||
6/30/2016 | 15.67 | (0.06 | ) | (1.84 | ) | (1.90 | ) | — | 13.77 | |||||||||||||||||||
6/30/2015 | 19.63 | (0.07 | ) | (3.89 | ) | (3.96 | ) | — | 15.67 | |||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 16.25 | $ | 0.29 | $ | (1.79 | ) | $ | (1.50 | ) | $ | (0.31 | ) | $ | 14.44 | |||||||||||||
6/30/2018 | 13.96 | 0.18 | 2.11 | 2.29 | — | 16.25 | ||||||||||||||||||||||
6/30/2017 | 14.86 | 0.03 | (0.78 | ) | (0.75 | ) | (0.15 | ) | 13.96 | |||||||||||||||||||
6/30/2016 | 16.87 | 0.09 | (1.99 | ) | (1.90 | ) | (0.11 | ) | 14.86 | |||||||||||||||||||
6/30/2015 | 20.98 | 0.13 | (4.20 | ) | (4.07 | ) | (0.04 | ) | 16.87 | |||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 16.39 | $ | 0.33 | $ | (1.84 | ) | $ | (1.51 | ) | $ | (0.30 | ) | $ | 14.58 | |||||||||||||
6/30/2018 | 14.12 | 0.19 | 2.14 | 2.33 | (0.06 | ) | 16.39 | |||||||||||||||||||||
6/30/2017 | 14.99 | 0.07 | (0.81 | ) | (0.74 | ) | (0.13 | ) | 14.12 | |||||||||||||||||||
6/30/2016 | 17.00 | 0.09 | (1.99 | ) | (1.90 | ) | (0.11 | ) | 14.99 | |||||||||||||||||||
6/30/2015 | 21.10 | 0.12 | (4.19 | ) | (4.07 | ) | (0.03 | ) | 17.00 |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
114 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||
(9.24 | )% | $ | 5,466 | 1.43 | %(c) | 1.91 | %(c) | 76 | % | |||||||||||||
16.05 | 7,812 | 1.43 | (c) | 0.84 | (c) | 113 | ||||||||||||||||
(5.37 | ) | 11,135 | 1.42 | (c) | 0.08 | (c) | 108 | |||||||||||||||
(11.44 | ) | 14,175 | 1.42 | (c) | 0.34 | (c) | 177 | |||||||||||||||
(19.56 | ) | 11,395 | 1.41 | 0.32 | 107 | |||||||||||||||||
(9.90 | )% | $ | 1,154 | 2.18 | %(c) | 1.10 | %(c) | 76 | % | |||||||||||||
15.24 | 2,102 | 2.18 | (c) | 0.13 | (c) | 113 | ||||||||||||||||
(6.07 | ) | 2,896 | 2.17 | (c) | (0.70 | )(c) | 108 | |||||||||||||||
(12.13 | ) | 4,200 | 2.17 | (c) | (0.43 | )(c) | 177 | |||||||||||||||
(20.17 | ) | 4,579 | 2.16 | (0.42 | ) | 107 | ||||||||||||||||
(8.94 | )% | $ | 600 | 1.18 | %(c) | 1.93 | %(c) | 76 | % | |||||||||||||
16.40 | 2,435 | 1.18 | (c) | 1.20 | (c) | 113 | ||||||||||||||||
(5.18 | ) | 1,970 | 1.17 | (c) | 0.19 | (c) | 108 | |||||||||||||||
(11.20 | ) | 8,025 | 1.17 | (c) | 0.61 | (c) | 177 | |||||||||||||||
(19.38 | ) | 8,128 | 1.16 | 0.73 | 107 | |||||||||||||||||
(8.92 | )% | $ | 5,009 | 1.08 | %(c) | 2.21 | %(c) | 76 | % | |||||||||||||
16.48 | 8,313 | 1.08 | (c) | 1.24 | (c) | 113 | ||||||||||||||||
(5.07 | ) | 10,068 | 1.07 | (c) | 0.43 | (c) | 108 | |||||||||||||||
(11.12 | ) | 17,671 | 1.07 | (c) | 0.64 | (c) | 177 | |||||||||||||||
(19.28 | ) | 30,751 | 1.06 | 0.67 | 107 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 115 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (Loss) (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI GlobalSmall-Cap: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 51.40 | $ | (0.14 | ) | $ | (3.88 | ) | $ | (4.02 | ) | $ | — | $ | (8.01 | ) | ||||||||||||
6/30/2018 | 47.75 | (0.26 | ) | 8.28 | 8.02 | (0.10 | ) | (4.27 | ) | |||||||||||||||||||
6/30/2017 | 41.18 | (0.14 | ) | 6.71 | 6.57 | — | — | |||||||||||||||||||||
6/30/2016 | 45.05 | (0.13 | ) | (3.74 | ) | (3.87 | ) | — | — | |||||||||||||||||||
6/30/2015 | 43.12 | (0.19 | ) | 2.12 | 1.93 | — | — | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 45.13 | $ | (0.45 | ) | $ | (3.57 | ) | $ | (4.02 | ) | $ | — | $ | (8.01 | ) | ||||||||||||
6/30/2018 | 42.62 | (0.57 | ) | 7.35 | 6.78 | — | (4.27 | ) | ||||||||||||||||||||
6/30/2017 | 37.03 | (0.42 | ) | 6.01 | 5.59 | — | — | |||||||||||||||||||||
6/30/2016 | 40.81 | (0.41 | ) | (3.37 | ) | (3.78 | ) | — | — | |||||||||||||||||||
6/30/2015 | 39.36 | (0.46 | ) | 1.91 | 1.45 | — | — | |||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 54.57 | $ | (0.06 | ) | $ | (3.99 | ) | $ | (4.05 | ) | $ | — | $ | (8.01 | ) | ||||||||||||
6/30/2018 | 50.40 | (0.15 | ) | 8.75 | 8.60 | (0.16 | ) | (4.27 | ) | |||||||||||||||||||
6/30/2017 | 43.36 | 0.02 | 7.02 | 7.04 | — | — | ||||||||||||||||||||||
6/30/2016 | 47.30 | (0.05 | ) | (3.89 | ) | (3.94 | ) | — | — | |||||||||||||||||||
6/30/2015 | 45.17 | (0.06 | ) | 2.19 | 2.13 | — | — | |||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 55.01 | $ | 0.01 | $ | (4.04 | ) | $ | (4.03 | ) | $ | — | $ | (8.01 | ) | |||||||||||||
6/30/2018 | 50.77 | (0.09 | ) | 8.81 | 8.72 | (0.21 | ) | (4.27 | ) | |||||||||||||||||||
6/30/2017 | 43.63 | 0.02 | 7.12 | 7.14 | — | — | ||||||||||||||||||||||
6/30/2016 | 47.55 | 0.02 | (3.94 | ) | (3.92 | ) | — | — | ||||||||||||||||||||
6/30/2015 | 45.37 | (0.05 | ) | 2.23 | 2.18 | — | — |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
(c) | Payments from Affiliates increased the end of period net asset value and total return by less than $0.01 and 0.01%, respectively. |
116 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Year | Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||||
$ | (8.01 | ) | $ | 39.37 | (4.64 | )% | $ | 46,947 | 1.62 | % | (0.34 | )% | 85 | % | ||||||||||||||||
(4.37 | ) | 51.40(c | ) | 17.08 | (c) | 56,929 | 1.62 | (0.51 | ) | 77 | ||||||||||||||||||||
— | 47.75(c | ) | 15.96 | (c) | 56,686 | 1.61 | (0.32 | ) | 80 | |||||||||||||||||||||
— | 41.18 | (8.59 | ) | 68,625 | 1.61 | (0.31 | ) | 87 | ||||||||||||||||||||||
— | 45.05 | 4.48 | 57,590 | 1.61 | (0.45 | ) | 64 | |||||||||||||||||||||||
$ | (8.01 | ) | $ | 33.10 | (5.37 | )% | $ | 7,354 | 2.37 | % | (1.18 | )% | 85 | % | ||||||||||||||||
(4.27 | ) | 45.13(c | ) | 16.21 | (c) | 19,630 | 2.37 | (1.25 | ) | 77 | ||||||||||||||||||||
— | 42.62(c | ) | 15.10 | (c) | 19,729 | 2.36 | (1.06 | ) | 80 | |||||||||||||||||||||
— | 37.03 | (9.26 | ) | 23,055 | 2.36 | (1.09 | ) | 87 | ||||||||||||||||||||||
— | 40.81 | 3.69 | 25,959 | 2.36 | (1.19 | ) | 64 | |||||||||||||||||||||||
$ | (8.01 | ) | $ | 42.51 | (4.40 | )% | $ | 11,675 | 1.37 | % | (0.13 | )% | 85 | % | ||||||||||||||||
(4.43 | ) | 54.57(c | ) | 17.36 | (c) | 18,262 | 1.37 | (0.27 | ) | 77 | ||||||||||||||||||||
— | 50.40(c | ) | 16.24 | (c) | 23,214 | 1.36 | 0.03 | 80 | ||||||||||||||||||||||
— | 43.36 | (8.33 | ) | 20,921 | 1.36 | (0.11 | ) | 87 | ||||||||||||||||||||||
— | 47.30 | 4.72 | 26,662 | 1.36 | (0.14 | ) | 64 | |||||||||||||||||||||||
$ | (8.01 | ) | $ | 42.97 | (4.32 | )% | $ | 67,916 | 1.27 | % | 0.01 | % | 85 | % | ||||||||||||||||
(4.48 | ) | 55.01(c | ) | 17.48 | (c) | 98,623 | 1.27 | (0.17 | ) | 77 | ||||||||||||||||||||
— | 50.77(c | ) | 16.36 | (c) | 114,925 | 1.26 | 0.05 | 80 | ||||||||||||||||||||||
— | 43.63 | (8.25 | ) | 122,294 | 1.26 | 0.06 | 87 | |||||||||||||||||||||||
— | 47.55 | 4.80 | 80,319 | 1.26 | (0.12 | ) | 64 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 117 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Period ended:^
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI Health Sciences: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 33.27 | $ | 0.02 | $ | 3.57 | $ | 3.59 | $ | (0.31 | ) | $ | (4.28 | ) | ||||||||||||||
6/30/2018 | 31.61 | (0.02 | ) | 1.68 | 1.66 | — | — | |||||||||||||||||||||
6/30/2017 | 27.77 | (0.01 | ) | 3.85 | 3.84 | — | — | |||||||||||||||||||||
6/30/2016 | 38.48 | (0.02 | ) | (3.87 | ) | (3.89 | ) | — | (6.82 | ) | ||||||||||||||||||
6/30/2015 | 33.91 | (0.26 | ) | 9.79 | 9.53 | — | (4.96 | ) | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 26.43 | $ | (0.19 | ) | $ | 2.75 | $ | 2.56 | $ | — | $ | (4.28 | ) | ||||||||||||||
6/30/2018 | 25.30 | (0.21 | ) | 1.34 | 1.13 | — | — | |||||||||||||||||||||
6/30/2017 | 22.40 | (0.18 | ) | 3.08 | 2.90 | — | — | |||||||||||||||||||||
6/30/2016 | 32.67 | (0.28 | ) | (3.17 | ) | (3.45 | ) | — | (6.82 | ) | ||||||||||||||||||
6/30/2015 | 29.66 | (0.45 | ) | 8.42 | 7.97 | — | (4.96 | ) | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 33.69 | $ | 0.13 | $ | 3.63 | $ | 3.76 | $ | (0.41 | ) | $ | (4.28 | ) | ||||||||||||||
6/30/2018 | 31.90 | 0.10 | 1.69 | 1.79 | — | — | ||||||||||||||||||||||
6/30/2017 | 27.93 | 0.09 | 3.88 | 3.97 | — | — | ||||||||||||||||||||||
6/30/2016 | 38.53 | 0.04 | (3.82 | ) | (3.78 | ) | — | (6.82 | ) | |||||||||||||||||||
12/22/2014* - 6/30/2015 | 33.09 | (0.04 | ) | 5.48 | 5.44 | — | — |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
* | Commencement of operations. |
(a) | Calculated on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the period and a sale of a share on the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. Total return for a period of less than one year is not annualized. |
(c) | Annualized, unless otherwise noted. |
118 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (b) | Net Assets, End of Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||||
$ | (4.59 | ) | $ | 32.27 | 13.14 | % | $ | 147,068 | 1.47 | % | 0.06 | % | 102 | % | ||||||||||||||||
— | 33.27 | 5.25 | 141,122 | 1.47 | (0.05 | ) | 55 | |||||||||||||||||||||||
— | 31.61 | 13.83 | 150,756 | 1.46 | (0.04 | ) | 82 | |||||||||||||||||||||||
(6.82 | ) | 27.77 | (10.82 | ) | 167,724 | 1.47 | (0.07 | ) | 113 | |||||||||||||||||||||
(4.96 | ) | 38.48 | 30.53 | 45,093 | 1.46 | (0.72 | ) | 76 | ||||||||||||||||||||||
$ | (4.28 | ) | $ | 24.71 | 12.34 | % | $ | 4,131 | 2.22 | % | (0.75 | )% | 102 | % | ||||||||||||||||
— | 26.43 | 4.47 | 8,218 | 2.22 | (0.81 | ) | 55 | |||||||||||||||||||||||
— | 25.30 | 12.95 | 10,358 | 2.21 | (0.79 | ) | 82 | |||||||||||||||||||||||
(6.82 | ) | 22.40 | (11.48 | ) | 13,446 | 2.22 | (1.07 | ) | 113 | |||||||||||||||||||||
(4.96 | ) | 32.67 | 29.57 | 20,902 | 2.21 | (1.46 | ) | 76 | ||||||||||||||||||||||
$ | (4.69 | ) | $ | 32.76 | 13.54 | % | $ | 4,290 | 1.12 | % | 0.39 | % | 102 | % | ||||||||||||||||
— | 33.69 | 5.61 | 2,854 | 1.12 | 0.29 | 55 | ||||||||||||||||||||||||
— | 31.90 | 14.21 | 3,692 | 1.11 | 0.31 | 82 | ||||||||||||||||||||||||
(6.82 | ) | 27.93 | (10.49 | ) | 1,977 | 1.12 | 0.14 | 113 | ||||||||||||||||||||||
— | 38.53 | 16.44 | 1,240 | 1.10 | (c) | (0.21 | )(c) | 76 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 119 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI Income & Growth: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 11.34 | $ | 0.20 | $ | 0.38 | $ | 0.58 | $ | (0.25 | ) | $ | (0.66 | ) | ||||||||||||||
6/30/2018 | 11.24 | 0.23 | 0.82 | 1.05 | (0.28 | ) | (0.67 | ) | ||||||||||||||||||||
6/30/2017 | 10.80 | 0.27 | 1.17 | 1.44 | (0.32 | ) | (0.68 | ) | ||||||||||||||||||||
6/30/2016 | 12.12 | 0.28 | (0.55 | ) | (0.27 | ) | (0.37 | ) | (0.68 | ) | ||||||||||||||||||
6/30/2015 | 12.95 | 0.27 | (0.05 | ) | 0.22 | (0.26 | ) | (0.79 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 10.46 | $ | 0.11 | $ | 0.34 | $ | 0.45 | $ | (0.18 | ) | $ | (0.66 | ) | ||||||||||||||
6/30/2018 | 10.44 | 0.13 | 0.76 | 0.89 | (0.20 | ) | (0.67 | ) | ||||||||||||||||||||
6/30/2017 | 10.10 | 0.18 | 1.09 | 1.27 | (0.25 | ) | (0.68 | ) | ||||||||||||||||||||
6/30/2016 | 11.46 | 0.19 | (0.53 | ) | (0.34 | ) | (0.34 | ) | (0.68 | ) | ||||||||||||||||||
6/30/2015 | 12.38 | 0.17 | (0.06 | ) | 0.11 | (0.24 | ) | (0.79 | ) | |||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 11.34 | $ | 0.17 | $ | 0.38 | $ | 0.55 | $ | (0.22 | ) | $ | (0.66 | ) | ||||||||||||||
6/30/2018 | 11.24 | 0.20 | 0.82 | 1.02 | (0.25 | ) | (0.67 | ) | ||||||||||||||||||||
6/30/2017 | 10.80 | 0.25 | 1.16 | 1.41 | (0.29 | ) | (0.68 | ) | ||||||||||||||||||||
6/30/2016 | 12.14 | 0.26 | (0.56 | ) | (0.30 | ) | (0.36 | ) | (0.68 | ) | ||||||||||||||||||
6/30/2015 | 13.00 | 0.24 | (0.05 | ) | 0.19 | (0.26 | ) | (0.79 | ) | |||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 11.61 | $ | 0.23 | $ | 0.38 | $ | 0.61 | $ | (0.27 | ) | $ | (0.66 | ) | ||||||||||||||
6/30/2018 | 11.48 | 0.26 | 0.84 | 1.10 | (0.30 | ) | (0.67 | ) | ||||||||||||||||||||
6/30/2017 | 11.01 | 0.31 | 1.19 | 1.50 | (0.35 | ) | (0.68 | ) | ||||||||||||||||||||
6/30/2016 | 12.32 | 0.32 | (0.57 | ) | (0.25 | ) | (0.38 | ) | (0.68 | ) | ||||||||||||||||||
6/30/2015 | 13.12 | 0.31 | (0.05 | ) | 0.26 | (0.27 | ) | (0.79 | ) | |||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 11.72 | $ | 0.25 | $ | 0.38 | $ | 0.63 | $ | (0.28 | ) | $ | (0.66 | ) | ||||||||||||||
6/30/2018 | 11.58 | 0.28 | 0.84 | 1.12 | (0.31 | ) | (0.67 | ) | ||||||||||||||||||||
6/30/2017 | 11.09 | 0.32 | 1.21 | 1.53 | (0.36 | ) | (0.68 | ) | ||||||||||||||||||||
6/30/2016 | 12.40 | 0.33 | (0.57 | ) | (0.24 | ) | (0.39 | ) | (0.68 | ) | ||||||||||||||||||
6/30/2015 | 13.19 | 0.32 | (0.05 | ) | 0.27 | (0.27 | ) | (0.79 | ) |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
(c) | Payments from Affiliates increased the end of year net asset value and total return by less than $0.01 and 0.01%, respectively. |
120 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Year | Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Assets with Fee Waiver/ | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net to Average | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (0.91 | ) | $ | 11.01 | (c) | 5.45 | (c)% | $ | 1,458,642 | 1.28 | % | 1.29 | % | 1.84 | % | 66 | % | |||||||||||||||||
(0.95 | ) | 11.34 | 9.58 | 1,250,639 | 1.28 | 1.29 | 1.99 | 102 | ||||||||||||||||||||||||||
(1.00 | ) | 11.24 | 13.88 | 1,091,888 | 1.29 | 1.29 | 2.45 | 159 | ||||||||||||||||||||||||||
(1.05 | ) | 10.80 | (2.02 | ) | 1,009,542 | 1.34 | 1.34 | 2.56 | 94 | |||||||||||||||||||||||||
(1.05 | ) | 12.12 | 1.80 | 897,530 | 1.32 | 1.32 | 2.16 | 84 | ||||||||||||||||||||||||||
$ | (0.84 | ) | $ | 10.07 | (c) | 4.60 | (c)% | $ | 1,234,667 | 2.03 | % | 2.04 | % | 1.09 | % | 66 | % | |||||||||||||||||
(0.87 | ) | 10.46 | 8.78 | 1,116,788 | 2.03 | 2.04 | 1.24 | 102 | ||||||||||||||||||||||||||
(0.93 | ) | 10.44 | 13.08 | 1,090,887 | 2.04 | 2.04 | 1.70 | 159 | ||||||||||||||||||||||||||
(1.02 | ) | 10.10 | (2.79 | ) | 1,159,303 | 2.09 | 2.09 | 1.81 | 94 | |||||||||||||||||||||||||
(1.03 | ) | 11.46 | 0.95 | 1,195,391 | 2.07 | 2.07 | 1.41 | 84 | ||||||||||||||||||||||||||
$ | (0.88 | ) | $ | 11.01 | (c) | 5.19 | (c)% | $ | 4,873 | 1.53 | % | 1.54 | % | 1.60 | % | 66 | % | |||||||||||||||||
(0.92 | ) | 11.34 | 9.32 | 3,150 | 1.53 | 1.54 | 1.73 | 102 | ||||||||||||||||||||||||||
(0.97 | ) | 11.24 | 13.59 | 1,781 | 1.54 | 1.54 | 2.20 | 159 | ||||||||||||||||||||||||||
(1.04 | ) | 10.80 | (2.31 | ) | 2,261 | 1.59 | 1.59 | 2.30 | 94 | |||||||||||||||||||||||||
(1.05 | ) | 12.14 | 1.49 | 2,543 | 1.57 | 1.57 | 1.89 | 84 | ||||||||||||||||||||||||||
$ | (0.93 | ) | $ | 11.29 | (c) | 5.64 | (c)% | $ | 1,122,083 | 1.03 | % | 1.04 | % | 2.09 | % | 66 | % | |||||||||||||||||
(0.97 | ) | 11.61 | 9.90 | 897,716 | 1.03 | 1.04 | 2.24 | 102 | ||||||||||||||||||||||||||
(1.03 | ) | 11.48 | 14.14 | 690,147 | 1.04 | 1.04 | 2.69 | 159 | ||||||||||||||||||||||||||
(1.06 | ) | 11.01 | (1.81 | ) | 560,425 | 1.09 | 1.09 | 2.81 | 94 | |||||||||||||||||||||||||
(1.06 | ) | 12.32 | 2.07 | 676,865 | 1.07 | 1.07 | 2.42 | 84 | ||||||||||||||||||||||||||
$ | (0.94 | ) | $ | 11.41 | (c) | 5.78 | (c)% | $ | 702,741 | 0.93 | % | 0.94 | % | 2.19 | % | 66 | % | |||||||||||||||||
(0.98 | ) | 11.72 | 10.00 | 460,024 | 0.93 | 0.94 | 2.34 | 102 | ||||||||||||||||||||||||||
(1.04 | ) | 11.58 | 14.33 | 342,652 | 0.94 | 0.94 | 2.76 | 159 | ||||||||||||||||||||||||||
(1.07 | ) | 11.09 | (1.76 | ) | 181,890 | 0.99 | 0.99 | 2.91 | 94 | |||||||||||||||||||||||||
(1.06 | ) | 12.40 | 2.17 | 190,675 | 0.97 | 0.97 | 2.51 | 84 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 121 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (Loss) (a) |
Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Distributions from Net Realized Capital Gains | Net Asset Value, End of Year | |||||||||||||||||||||||
AllianzGIMid-Cap: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 3.88 | $ | (0.02 | ) | $ | 0.37 | $ | 0.35 | $ | (0.48 | ) | $ | 3.75 | ||||||||||||||
6/30/2018 | 3.74 | (0.02 | ) | 0.54 | 0.52 | (0.38 | ) | 3.88 | ||||||||||||||||||||
6/30/2017 | 3.40 | (0.01 | ) | 0.62 | 0.61 | (0.27 | ) | 3.74 | ||||||||||||||||||||
6/30/2016 | 3.65 | (0.01 | ) | (0.03 | ) | (0.04 | ) | (0.21 | ) | 3.40 | ||||||||||||||||||
6/30/2015 | 3.92 | (0.01 | ) | 0.28 | 0.27 | (0.54 | ) | 3.65 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 3.23 | $ | (0.04 | ) | $ | 0.27 | $ | 0.23 | $ | (0.48 | ) | $ | 2.98 | ||||||||||||||
6/30/2018 | 3.19 | (0.04 | ) | 0.46 | 0.42 | (0.38 | ) | 3.23 | ||||||||||||||||||||
6/30/2017 | 2.96 | (0.04 | ) | 0.54 | 0.50 | (0.27 | ) | 3.19 | ||||||||||||||||||||
6/30/2016 | 3.22 | (0.03 | ) | (0.02 | ) | (0.05 | ) | (0.21 | ) | 2.96 | ||||||||||||||||||
6/30/2015 | 3.55 | (0.04 | ) | 0.25 | 0.21 | (0.54 | ) | 3.22 | ||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 3.82 | $ | (0.03 | ) | $ | 0.35 | $ | 0.32 | $ | (0.48 | ) | $ | 3.66 | ||||||||||||||
6/30/2018 | 3.69 | (0.03 | ) | 0.54 | 0.51 | (0.38 | ) | 3.82 | ||||||||||||||||||||
6/30/2017 | 3.37 | (0.02 | ) | 0.61 | 0.59 | (0.27 | ) | 3.69 | ||||||||||||||||||||
6/30/2016 | 3.62 | (0.02 | ) | (0.02 | ) | (0.04 | ) | (0.21 | ) | 3.37 | ||||||||||||||||||
6/30/2015 | 3.91 | (0.02 | ) | 0.27 | 0.25 | (0.54 | ) | 3.62 | ||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 4.41 | $ | (0.02 | ) | $ | 0.45 | $ | 0.43 | $ | (0.48 | ) | $ | 4.36 | ||||||||||||||
6/30/2018 | 4.19 | (0.01 | ) | 0.61 | 0.60 | (0.38 | ) | 4.41 | ||||||||||||||||||||
6/30/2017 | 3.77 | (0.01 | ) | 0.70 | 0.69 | (0.27 | ) | 4.19 | ||||||||||||||||||||
6/30/2016 | 4.01 | — | (0.03 | ) | (0.03 | ) | (0.21 | ) | 3.77 | |||||||||||||||||||
6/30/2015 | 4.24 | — | 0.31 | 0.31 | (0.54 | ) | 4.01 | |||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 4.43 | $ | (0.01 | ) | $ | 0.45 | $ | 0.44 | $ | (0.48 | ) | $ | 4.39 | ||||||||||||||
6/30/2018 | 4.21 | (0.01 | ) | 0.61 | 0.60 | (0.38 | ) | 4.43 | ||||||||||||||||||||
6/30/2017 | 3.78 | — | 0.70 | 0.70 | (0.27 | ) | 4.21 | |||||||||||||||||||||
6/30/2016 | 4.02 | — | (0.03 | ) | (0.03 | ) | (0.21 | ) | 3.78 | |||||||||||||||||||
6/30/2015 | 4.25 | — | 0.31 | 0.31 | (0.54 | ) | 4.02 | |||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 4.11 | $ | (0.02 | ) | $ | 0.40 | $ | 0.38 | $ | (0.48 | ) | $ | 4.01 | ||||||||||||||
6/30/2018 | 3.94 | (0.02 | ) | 0.57 | 0.55 | (0.38 | ) | 4.11 | ||||||||||||||||||||
6/30/2017 | 3.56 | (0.01 | ) | 0.66 | 0.65 | (0.27 | ) | 3.94 | ||||||||||||||||||||
6/30/2016 | 3.80 | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.21 | ) | 3.56 | ||||||||||||||||||
6/30/2015 | 4.06 | (0.01 | ) | 0.29 | 0.28 | (0.54 | ) | 3.80 |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
122 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||
13.58 | % | $ | 240,017 | 1.14 | % | (0.66 | )% | 60 | % | |||||||||||||
14.14 | 116,673 | 1.13 | (0.48 | ) | 79 | |||||||||||||||||
18.89 | 112,947 | 1.13 | (0.40 | ) | 77 | |||||||||||||||||
(1.05 | ) | 86,224 | 1.13 | (0.26 | ) | 73 | ||||||||||||||||
7.91 | 98,253 | 1.13 | (0.38 | ) | 79 | |||||||||||||||||
12.56 | % | $ | 21,251 | 1.89 | % | (1.34 | )% | 60 | % | |||||||||||||
13.40 | 142,931 | 1.88 | (1.23 | ) | 79 | |||||||||||||||||
17.95 | 142,565 | 1.88 | (1.15 | ) | 77 | |||||||||||||||||
(1.51 | ) | 162,104 | 1.88 | (1.01 | ) | 73 | ||||||||||||||||
6.98 | 183,765 | 1.88 | (1.13 | ) | 79 | |||||||||||||||||
12.97 | % | $ | 1,384 | 1.39 | % | (0.89 | )% | 60 | % | |||||||||||||
14.03 | 1,463 | 1.38 | (0.72 | ) | 79 | |||||||||||||||||
18.45 | 2,345 | 1.38 | (0.65 | ) | 77 | |||||||||||||||||
(1.05 | ) | 2,195 | 1.38 | (0.51 | ) | 73 | ||||||||||||||||
7.38 | 2,867 | 1.38 | (0.63 | ) | 79 | |||||||||||||||||
13.79 | % | $ | 11,617 | 0.89 | % | (0.39 | )% | 60 | % | |||||||||||||
14.56 | 11,189 | 0.88 | (0.23 | ) | 79 | |||||||||||||||||
19.18 | 8,604 | 0.88 | (0.15 | ) | 77 | |||||||||||||||||
(0.69 | ) | 2,009 | 0.88 | (0.01 | ) | 73 | ||||||||||||||||
8.31 | 2,010 | 0.88 | (0.12 | ) | 79 | |||||||||||||||||
�� | 13.97 | % | $ | 36,373 | 0.79 | % | (0.29 | )% | 60 | % | ||||||||||||
14.47 | 31,876 | 0.78 | (0.13 | ) | 79 | |||||||||||||||||
19.39 | 26,788 | 0.78 | (0.05 | ) | 77 | |||||||||||||||||
(0.69 | ) | 29,092 | 0.78 | 0.11 | 73 | |||||||||||||||||
8.29 | 24,130 | 0.78 | (0.04 | ) | 79 | |||||||||||||||||
13.61 | % | $ | 1,525 | 1.04 | % | (0.54 | )% | 60 | % | |||||||||||||
14.19 | 1,441 | 1.03 | (0.40 | ) | 79 | |||||||||||||||||
19.19 | 575 | 1.03 | (0.30 | ) | 77 | |||||||||||||||||
(0.73 | ) | 488 | 1.03 | (0.16 | ) | 73 | ||||||||||||||||
7.88 | 532 | 1.03 | (0.28 | ) | 79 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 123 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (a) |
Net Realized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI NFJ Dividend Value: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 14.76 | $ | 0.26 | $ | (0.05 | ) | $ | 0.21 | $ | (0.26 | ) | $ | (2.60 | ) | |||||||||||||
6/30/2018 | 17.20 | 0.27 | 1.45 | 1.72 | (0.28 | ) | (3.88 | ) | ||||||||||||||||||||
6/30/2017 | 15.74 | 0.34 | 2.08 | 2.42 | (0.37 | ) | (0.59 | ) | ||||||||||||||||||||
6/30/2016 | 16.68 | 0.37 | (0.92 | ) | (0.55 | ) | (0.39 | ) | — | |||||||||||||||||||
6/30/2015 | 17.12 | 0.33 | (0.44 | ) | (0.11 | ) | (0.33 | ) | — | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 14.92 | $ | 0.17 | $ | (0.05 | ) | $ | 0.12 | $ | (0.12 | ) | $ | (2.60 | ) | |||||||||||||
6/30/2018 | 17.34 | 0.15 | 1.46 | 1.61 | (0.15 | ) | (3.88 | ) | ||||||||||||||||||||
6/30/2017 | 15.86 | 0.21 | 2.10 | 2.31 | (0.24 | ) | (0.59 | ) | ||||||||||||||||||||
6/30/2016 | 16.83 | 0.25 | (0.93 | ) | (0.68 | ) | (0.29 | ) | — | |||||||||||||||||||
6/30/2015 | 17.27 | 0.20 | (0.43 | ) | (0.23 | ) | (0.21 | ) | — | |||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 14.71 | $ | 0.23 | $ | (0.05 | ) | $ | 0.18 | $ | (0.19 | ) | $ | (2.60 | ) | |||||||||||||
6/30/2018 | 17.15 | 0.23 | 1.45 | 1.68 | (0.24 | ) | (3.88 | ) | ||||||||||||||||||||
6/30/2017 | 15.70 | 0.29 | 2.08 | 2.37 | (0.33 | ) | (0.59 | ) | ||||||||||||||||||||
6/30/2016 | 16.65 | 0.33 | (0.92 | ) | (0.59 | ) | (0.36 | ) | — | |||||||||||||||||||
6/30/2015 | 17.09 | 0.28 | (0.43 | ) | (0.15 | ) | (0.29 | ) | — | |||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 14.87 | $ | 0.30 | $ | (0.05 | ) | $ | 0.25 | $ | (0.31 | ) | $ | (2.60 | ) | |||||||||||||
6/30/2018 | 17.30 | 0.32 | 1.45 | 1.77 | (0.32 | ) | (3.88 | ) | ||||||||||||||||||||
6/30/2017 | 15.83 | 0.38 | 2.09 | 2.47 | (0.41 | ) | (0.59 | ) | ||||||||||||||||||||
6/30/2016 | 16.77 | 0.41 | (0.93 | ) | (0.52 | ) | (0.42 | ) | — | |||||||||||||||||||
6/30/2015 | 17.21 | 0.37 | (0.43 | ) | (0.06 | ) | (0.38 | ) | — | |||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 14.87 | $ | 0.31 | $ | (0.05 | ) | $ | 0.26 | $ | (0.33 | ) | $ | (2.60 | ) | |||||||||||||
6/30/2018 | 17.30 | 0.34 | 1.45 | 1.79 | (0.34 | ) | (3.88 | ) | ||||||||||||||||||||
6/30/2017 | 15.82 | 0.41 | 2.08 | 2.49 | (0.42 | ) | (0.59 | ) | ||||||||||||||||||||
6/30/2016 | 16.76 | 0.42 | (0.93 | ) | (0.51 | ) | (0.43 | ) | — | |||||||||||||||||||
6/30/2015 | 17.20 | 0.39 | (0.43 | ) | (0.04 | ) | (0.40 | ) | — | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
6/30/2019 | $ | 14.83 | $ | 0.31 | $ | (0.04 | ) | $ | 0.27 | $ | (0.35 | ) | $ | (2.60 | ) | |||||||||||||
6/30/2018 | 17.27 | 0.34 | 1.45 | 1.79 | (0.35 | ) | (3.88 | ) | ||||||||||||||||||||
6/30/2017 | 15.80 | 0.41 | 2.09 | 2.50 | (0.44 | ) | (0.59 | ) | ||||||||||||||||||||
6/30/2016 | 16.74 | 0.42 | (0.92 | ) | (0.50 | ) | (0.44 | ) | — | |||||||||||||||||||
6/30/2015 | 17.19 | 0.39 | (0.42 | ) | (0.03 | ) | (0.42 | ) | — | |||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 15.04 | $ | 0.28 | $ | (0.05 | ) | $ | 0.23 | $ | (0.26 | ) | $ | (2.60 | ) | |||||||||||||
6/30/2018 | 17.41 | 0.32 | 1.43 | 1.75 | (0.24 | ) | (3.88 | ) | ||||||||||||||||||||
6/30/2017 | 15.92 | 0.36 | 2.11 | 2.47 | (0.39 | ) | (0.59 | ) | ||||||||||||||||||||
6/30/2016 | 16.87 | 0.39 | (0.94 | ) | (0.55 | ) | (0.40 | ) | — | |||||||||||||||||||
6/30/2015 | 17.31 | 0.35 | (0.44 | ) | (0.09 | ) | (0.35 | ) | — |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
124 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Year | Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Fee Waiver/ Reimbursement | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net Investment Income to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (2.86 | ) | $ | 12.11 | 4.39 | % | $ | 453,255 | 1.01 | % | 1.11 | % | 1.97 | % | 52 | % | ||||||||||||||||||
(4.16 | ) | 14.76 | 9.55 | 480,068 | 0.95 | 1.10 | 1.66 | 47 | ||||||||||||||||||||||||||
(0.96 | ) | 17.20 | 15.55 | 599,510 | 0.99 | 1.09 | 2.02 | 41 | ||||||||||||||||||||||||||
(0.39 | ) | 15.74 | (3.25 | ) | 814,993 | 1.07 | 1.07 | 2.34 | 42 | |||||||||||||||||||||||||
(0.33 | ) | 16.68 | (0.65 | ) | 1,363,171 | 1.05 | 1.05 | 1.92 | 44 | |||||||||||||||||||||||||
$ | (2.72 | ) | $ | 12.32 | 3.56 | % | $ | 75,395 | 1.76 | % | 1.86 | % | 1.23 | % | 52 | % | ||||||||||||||||||
(4.03 | ) | 14.92 | 8.77 | 231,933 | 1.70 | 1.85 | 0.91 | 47 | ||||||||||||||||||||||||||
(0.83 | ) | 17.34 | 14.67 | 274,212 | 1.74 | 1.84 | 1.28 | 41 | ||||||||||||||||||||||||||
(0.29 | ) | 15.86 | (3.97 | ) | 347,825 | 1.82 | 1.82 | 1.59 | 42 | |||||||||||||||||||||||||
(0.21 | ) | 16.83 | (1.38 | ) | 440,554 | 1.80 | 1.80 | 1.18 | 44 | |||||||||||||||||||||||||
$ | (2.79 | ) | $ | 12.10 | 4.07 | % | $ | 73,610 | 1.26 | % | 1.36 | % | 1.72 | % | 52 | % | ||||||||||||||||||
(4.12 | ) | 14.71 | 9.30 | 94,437 | 1.20 | 1.35 | 1.41 | 47 | ||||||||||||||||||||||||||
(0.92 | ) | 17.15 | 15.24 | 130,630 | 1.24 | 1.34 | 1.77 | 41 | ||||||||||||||||||||||||||
(0.36 | ) | 15.70 | (3.50 | ) | 157,199 | 1.32 | 1.32 | 2.09 | 42 | |||||||||||||||||||||||||
(0.29 | ) | 16.65 | (0.89 | ) | 226,101 | 1.30 | 1.30 | 1.68 | 44 | |||||||||||||||||||||||||
$ | (2.91 | ) | $ | 12.21 | 4.62 | % | $ | 378,642 | 0.76 | % | 0.86 | % | 2.22 | % | 52 | % | ||||||||||||||||||
(4.20 | ) | 14.87 | 9.83 | 551,096 | 0.70 | 0.85 | 1.91 | 47 | ||||||||||||||||||||||||||
(1.00 | ) | 17.30 | 15.79 | 639,847 | 0.74 | 0.84 | 2.27 | 41 | ||||||||||||||||||||||||||
(0.42 | ) | 15.83 | (3.03 | ) | 1,057,863 | 0.82 | 0.82 | 2.60 | 42 | |||||||||||||||||||||||||
(0.38 | ) | 16.77 | (0.38 | ) | 1,543,701 | 0.80 | 0.80 | 2.18 | 44 | |||||||||||||||||||||||||
$ | (2.93 | ) | $ | 12.20 | 4.75 | % | $ | 263,357 | 0.66 | % | 0.76 | % | 2.32 | % | 52 | % | ||||||||||||||||||
(4.22 | ) | 14.87 | 9.94 | 438,422 | 0.60 | 0.75 | 2.03 | 47 | ||||||||||||||||||||||||||
(1.01 | ) | 17.30 | 15.96 | 731,788 | 0.64 | 0.74 | 2.44 | 41 | ||||||||||||||||||||||||||
(0.43 | ) | 15.82 | (2.95 | ) | 2,233,140 | 0.72 | 0.72 | 2.69 | 42 | |||||||||||||||||||||||||
(0.40 | ) | 16.76 | (0.29 | ) | 3,402,951 | 0.70 | 0.70 | 2.27 | 44 | |||||||||||||||||||||||||
$ | (2.95 | ) | $ | 12.15 | 4.82 | % | $ | 65,935 | 0.61 | % | 0.71 | % | 2.38 | % | 52 | % | ||||||||||||||||||
(4.23 | ) | 14.83 | 9.96 | 85,285 | 0.55 | 0.70 | 2.06 | 47 | ||||||||||||||||||||||||||
(1.03 | ) | 17.27 | 16.01 | 95,755 | 0.59 | 0.69 | 2.44 | 41 | ||||||||||||||||||||||||||
(0.44 | ) | 15.80 | (2.90 | ) | 128,994 | 0.67 | 0.67 | 2.72 | 42 | |||||||||||||||||||||||||
(0.42 | ) | 16.74 | (0.22 | ) | 119,483 | 0.65 | 0.65 | 2.30 | 44 | |||||||||||||||||||||||||
$ | (2.86 | ) | $ | 12.41 | 4.42 | % | $ | 47,049 | 0.91 | % | 1.01 | % | 2.07 | % | 52 | % | ||||||||||||||||||
(4.12 | ) | 15.04 | 9.67 | 84,009 | 0.85 | 1.00 | 1.87 | 47 | ||||||||||||||||||||||||||
(0.98 | ) | 17.41 | 15.68 | 345,533 | 0.89 | 0.99 | 2.11 | 41 | ||||||||||||||||||||||||||
(0.40 | ) | 15.92 | (3.19 | ) | 387,993 | 0.97 | 0.97 | 2.44 | 42 | |||||||||||||||||||||||||
(0.35 | ) | 16.87 | (0.55 | ) | 628,008 | 0.95 | 0.95 | 2.03 | 44 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 125 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Return of Capital | |||||||||||||||||||||||
AllianzGI NFJ International Value: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 18.52 | $ | 0.33 | $ | (0.08 | ) | $ | 0.25 | $ | (0.30 | ) | $ | — | ||||||||||||||
6/30/2018 | 18.13 | 0.34 | 0.38 | 0.72 | (0.32 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2017 | 16.32 | 0.34 | 1.92 | 2.26 | (0.45 | ) | — | |||||||||||||||||||||
6/30/2016 | 21.61 | 0.37 | (5.15 | ) | (4.78 | ) | (0.51 | ) | — | |||||||||||||||||||
6/30/2015 | 24.17 | 0.41 | (2.40 | ) | (1.99 | ) | (0.57 | ) | — | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 18.20 | $ | 0.17 | $ | (0.04 | ) | $ | 0.13 | $ | (0.18 | ) | $ | — | ||||||||||||||
6/30/2018 | 17.86 | 0.19 | 0.37 | 0.56 | (0.21 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2017 | 16.09 | 0.23 | 1.86 | 2.09 | (0.32 | ) | — | |||||||||||||||||||||
6/30/2016 | 21.37 | 0.24 | (5.08 | ) | (4.84 | ) | (0.44 | ) | — | |||||||||||||||||||
6/30/2015 | 23.91 | 0.24 | (2.37 | ) | (2.13 | ) | (0.41 | ) | — | |||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 18.56 | $ | 0.29 | $ | (0.07 | ) | $ | 0.22 | $ | (0.26 | ) | $ | — | ||||||||||||||
6/30/2018 | 18.15 | 0.31 | 0.35 | 0.66 | (0.24 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2017 | 16.35 | 0.33 | 1.88 | 2.21 | (0.41 | ) | — | |||||||||||||||||||||
6/30/2016 | 21.66 | 0.35 | (5.17 | ) | (4.82 | ) | (0.49 | ) | — | |||||||||||||||||||
6/30/2015 | 24.23 | 0.37 | (2.41 | ) | (2.04 | ) | (0.53 | ) | — | |||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 18.61 | $ | 0.35 | $ | (0.04 | ) | $ | 0.31 | $ | (0.34 | ) | $ | — | ||||||||||||||
6/30/2018 | 18.21 | 0.36 | 0.41 | 0.77 | (0.36 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2017 | 16.40 | 0.40 | 1.90 | 2.30 | (0.49 | ) | — | |||||||||||||||||||||
6/30/2016 | 21.70 | 0.43 | (5.18 | ) | (4.75 | ) | (0.55 | ) | — | |||||||||||||||||||
6/30/2015 | 24.28 | 0.48 | (2.41 | ) | (1.93 | ) | (0.65 | ) | — | |||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 18.64 | $ | 0.41 | $ | (0.08 | ) | $ | 0.33 | $ | (0.37 | ) | $ | — | ||||||||||||||
6/30/2018 | 18.24 | 0.42 | 0.36 | 0.78 | (0.37 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2017 | 16.42 | 0.37 | 1.95 | 2.32 | (0.50 | ) | — | |||||||||||||||||||||
6/30/2016 | 21.71 | 0.40 | (5.13 | ) | (4.73 | ) | (0.56 | ) | — | |||||||||||||||||||
6/30/2015 | 24.29 | 0.50 | (2.42 | ) | (1.92 | ) | (0.66 | ) | — | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
6/30/2019 | $ | 18.63 | $ | 0.37 | $ | (0.04 | ) | $ | 0.33 | $ | (0.37 | ) | $ | — | ||||||||||||||
6/30/2018 | 18.19 | 0.29 | 0.50 | 0.79 | (0.34 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2017 | 16.38 | 0.40 | 1.93 | 2.33 | (0.52 | ) | — | |||||||||||||||||||||
6/30/2016 | 21.68 | 0.48 | (5.20 | ) | (4.72 | ) | (0.58 | ) | — | |||||||||||||||||||
6/30/2015 | 24.28 | 0.55 | (2.46 | ) | (1.91 | ) | (0.69 | ) | — | |||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 18.56 | $ | 0.29 | $ | 0.01 | $ | 0.30 | $ | (0.32 | ) | $ | — | |||||||||||||||
6/30/2018 | 18.19 | 0.38 | 0.35 | 0.73 | (0.35 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2017 | 16.37 | 0.36 | 1.92 | 2.28 | (0.46 | ) | — | |||||||||||||||||||||
6/30/2016 | 21.68 | 0.42 | (5.20 | ) | (4.78 | ) | (0.53 | ) | — | |||||||||||||||||||
6/30/2015 | 24.25 | 0.45 | (2.41 | ) | (1.96 | ) | (0.61 | ) | — |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
126 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Year | Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Assets with Fee Waiver/ Reimbursement | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net Investment Income to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (0.30 | ) | $ | 18.47 | 1.44 | % | $ | 71,931 | 1.30 | % | 1.38 | % | 1.84 | % | 49 | % | ||||||||||||||||||
(0.33 | ) | 18.52 | 3.95 | 88,385 | 1.29 | 1.37 | 1.76 | 63 | ||||||||||||||||||||||||||
(0.45 | ) | 18.13 | 13.99 | 127,642 | 1.30 | 1.35 | 2.01 | 63 | ||||||||||||||||||||||||||
(0.51 | ) | 16.32 | (22.28 | ) | 258,429 | 1.29 | 1.32 | 2.04 | 50 | |||||||||||||||||||||||||
(0.57 | ) | 21.61 | (8.30 | ) | 466,262 | 1.27 | 1.30 | 1.83 | 54 | |||||||||||||||||||||||||
$ | (0.18 | ) | $ | 18.15 | 0.76 | % | $ | 13,926 | 2.05 | % | 2.13 | % | 0.98 | % | 49 | % | ||||||||||||||||||
(0.22 | ) | 18.20 | 3.11 | 36,184 | 2.04 | 2.12 | 0.99 | 63 | ||||||||||||||||||||||||||
(0.32 | ) | 17.86 | 13.10 | 54,546 | 2.05 | 2.10 | 1.37 | 63 | ||||||||||||||||||||||||||
(0.44 | ) | 16.09 | (22.81 | ) | 83,722 | 2.04 | 2.07 | 1.33 | 50 | |||||||||||||||||||||||||
(0.41 | ) | 21.37 | (8.99 | ) | 154,476 | 2.02 | 2.05 | 1.09 | 54 | |||||||||||||||||||||||||
$ | (0.26 | ) | $ | 18.52 | 1.23 | % | $ | 6,108 | 1.55 | % | 1.63 | % | 1.58 | % | 49 | % | ||||||||||||||||||
(0.25 | ) | 18.56 | 3.64 | 9,190 | 1.54 | 1.62 | 1.58 | 63 | ||||||||||||||||||||||||||
(0.41 | ) | 18.15 | 13.68 | 11,300 | 1.55 | 1.60 | 1.91 | 63 | ||||||||||||||||||||||||||
(0.49 | ) | 16.35 | (22.43 | ) | 13,915 | 1.54 | 1.57 | 1.89 | 50 | |||||||||||||||||||||||||
(0.53 | ) | 21.66 | (8.52 | ) | 22,511 | 1.52 | 1.55 | 1.63 | 54 | |||||||||||||||||||||||||
$ | (0.34 | ) | $ | 18.58 | 1.76 | % | $ | 38,655 | 1.05 | % | 1.13 | % | 1.93 | % | 49 | % | ||||||||||||||||||
(0.37 | ) | 18.61 | 4.17 | 89,644 | 1.04 | 1.12 | 1.87 | 63 | ||||||||||||||||||||||||||
(0.49 | ) | 18.21 | 14.20 | 148,540 | 1.05 | 1.10 | 2.34 | 63 | ||||||||||||||||||||||||||
(0.55 | ) | 16.40 | (22.07 | ) | 350,745 | 1.04 | 1.07 | 2.34 | 50 | |||||||||||||||||||||||||
(0.65 | ) | 21.70 | (8.04 | ) | 659,204 | 1.02 | 1.05 | 2.15 | 54 | |||||||||||||||||||||||||
$ | (0.37 | ) | $ | 18.60 | 1.84 | % | $ | 46,473 | 0.95 | % | 1.03 | % | 2.24 | % | 49 | % | ||||||||||||||||||
(0.38 | ) | 18.64 | 4.27 | 55,924 | 0.94 | 1.02 | 2.14 | 63 | ||||||||||||||||||||||||||
(0.50 | ) | 18.24 | 14.33 | 74,272 | 0.95 | 1.00 | 2.18 | 63 | ||||||||||||||||||||||||||
(0.56 | ) | 16.42 | (21.97 | ) | 309,622 | 0.94 | 0.97 | 2.17 | 50 | |||||||||||||||||||||||||
(0.66 | ) | 21.71 | (7.98 | ) | 1,095,977 | 0.92 | 0.95 | 2.21 | 54 | |||||||||||||||||||||||||
$ | (0.37 | ) | $ | 18.59 | 1.88 | % | $ | 1,277 | 0.90 | % | 0.98 | % | 2.07 | % | 49 | % | ||||||||||||||||||
(0.35 | ) | 18.63 | 4.31 | 1,836 | 0.89 | 0.97 | 1.48 | 63 | ||||||||||||||||||||||||||
(0.52 | ) | 18.19 | 14.42 | 28,460 | 0.90 | 0.95 | 2.33 | 63 | ||||||||||||||||||||||||||
(0.58 | ) | 16.38 | (21.97 | ) | 55,751 | 0.89 | 0.92 | 2.64 | 50 | |||||||||||||||||||||||||
(0.69 | ) | 21.68 | (7.94 | ) | 66,164 | 0.87 | 0.90 | 2.51 | 54 | |||||||||||||||||||||||||
$ | (0.32 | ) | $ | 18.54 | 1.68 | % | $ | 1,436 | 1.20 | % | 1.28 | % | 1.60 | % | 49 | % | ||||||||||||||||||
(0.36 | ) | 18.56 | 4.01 | 4,829 | 1.19 | 1.27 | 1.96 | 63 | ||||||||||||||||||||||||||
(0.46 | ) | 18.19 | 14.09 | 4,973 | 1.20 | 1.25 | 2.08 | 63 | ||||||||||||||||||||||||||
(0.53 | ) | 16.37 | (22.22 | ) | 14,487 | 1.19 | 1.22 | 2.31 | 50 | |||||||||||||||||||||||||
(0.61 | ) | 21.68 | (8.18 | ) | 19,020 | 1.17 | 1.20 | 2.00 | 54 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 127 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI NFJLarge-Cap Value: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 26.14 | $ | 0.41 | $ | 0.79 | $ | 1.20 | $ | (0.39 | ) | $ | (0.05 | ) | ||||||||||||||
6/30/2018 | 24.31 | 0.41 | 1.83 | 2.24 | (0.41 | ) | — | |||||||||||||||||||||
6/30/2017 | 20.34 | 0.36 | 3.97 | (c) | 4.33 | (0.36 | ) | — | ||||||||||||||||||||
6/30/2016 | 21.44 | 0.37 | (1.09 | ) | (0.72 | ) | (0.38 | ) | — | |||||||||||||||||||
6/30/2015 | 21.13 | 0.35 | 0.30 | 0.65 | (0.34 | ) | — | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 26.44 | $ | 0.19 | $ | 0.81 | $ | 1.00 | $ | (0.16 | ) | $ | (0.05 | ) | ||||||||||||||
6/30/2018 | 24.57 | 0.22 | 1.86 | 2.08 | (0.21 | ) | — | |||||||||||||||||||||
6/30/2017 | 20.50 | 0.19 | 4.01 | (c) | 4.20 | (0.13 | ) | — | ||||||||||||||||||||
6/30/2016 | 21.57 | 0.22 | (1.09 | ) | (0.87 | ) | (0.20 | ) | — | |||||||||||||||||||
6/30/2015 | 21.22 | 0.19 | 0.30 | 0.49 | (0.14 | ) | — | |||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 26.41 | $ | 0.34 | $ | 0.80 | $ | 1.14 | $ | (0.32 | ) | $ | (0.05 | ) | ||||||||||||||
6/30/2018 | 24.55 | 0.35 | 1.85 | 2.20 | (0.34 | ) | — | |||||||||||||||||||||
6/30/2017 | 20.51 | 0.30 | 4.02 | (c) | 4.32 | (0.28 | ) | — | ||||||||||||||||||||
6/30/2016 | 21.60 | 0.32 | (1.09 | ) | (0.77 | ) | (0.32 | ) | — | |||||||||||||||||||
6/30/2015 | 21.26 | 0.30 | 0.30 | 0.60 | (0.26 | ) | — | |||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 26.38 | $ | 0.48 | $ | 0.81 | $ | 1.29 | $ | (0.46 | ) | $ | (0.05 | ) | ||||||||||||||
6/30/2018 | 24.53 | 0.47 | 1.86 | 2.33 | (0.48 | ) | �� | — | ||||||||||||||||||||
6/30/2017 | 20.56 | 0.42 | 4.01 | (c) | 4.43 | (0.46 | ) | — | ||||||||||||||||||||
6/30/2016 | 21.68 | 0.42 | (1.09 | ) | (0.67 | ) | (0.45 | ) | — | |||||||||||||||||||
6/30/2015 | 21.42 | 0.41 | 0.31 | 0.72 | (0.46 | ) | — | |||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 26.02 | $ | 0.50 | $ | 0.79 | $ | 1.29 | $ | (0.49 | ) | $ | (0.05 | ) | ||||||||||||||
6/30/2018 | 24.20 | 0.49 | 1.84 | 2.33 | (0.51 | ) | — | |||||||||||||||||||||
6/30/2017 | 20.27 | 0.43 | 3.97 | (c) | 4.40 | (0.47 | ) | — | ||||||||||||||||||||
6/30/2016 | 21.39 | 0.44 | (1.09 | ) | (0.65 | ) | (0.47 | ) | — | |||||||||||||||||||
6/30/2015 | 21.13 | 0.42 | 0.31 | 0.73 | (0.47 | ) | — | |||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 26.51 | $ | 0.45 | $ | 0.80 | $ | 1.25 | $ | (0.42 | ) | $ | (0.05 | ) | ||||||||||||||
6/30/2018 | 24.64 | 0.43 | 1.88 | 2.31 | (0.44 | ) | — | |||||||||||||||||||||
6/30/2017 | 20.61 | 0.38 | 4.04 | (c) | 4.42 | (0.39 | ) | — | ||||||||||||||||||||
6/30/2016 | 21.73 | 0.39 | (1.10 | ) | (0.71 | ) | (0.41 | ) | — | |||||||||||||||||||
6/30/2015 | 21.26 | 0.39 | 0.29 | 0.68 | (0.21 | ) | — |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
(c) | Payments from securities litigation increased net realized and change in unrealized gain (loss) and net asset value per share by approximately $0.65 for Class A; $0.68 for Class C; $0.71 for Class R; $0.75 for Class P; $0.57 for Institutional Class and $0.65 for Administrative Class. The increase in total return per class was approximately 3.24% for Class A; 3.33% for Class C; 3.50% for Class R; 3.72% for Class P; 2.87% for Institutional Class and 3.21% for Administrative Class. |
128 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Year | Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Assets with Fee Waiver/ Reimbursement | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net Investment Income to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (0.44 | ) | $ | 26.90 | 4.67 | % | $ | 178,311 | 1.12 | % | 1.12 | % | 1.57 | % | 68 | % | ||||||||||||||||||
(0.41 | ) | 26.14 | 9.27 | 145,338 | 1.06 | 1.11 | 1.56 | 110 | ||||||||||||||||||||||||||
(0.36 | ) | 24.31 | (c) | 21.42 | (c) | 151,306 | 1.02 | 1.12 | 1.60 | 67 | ||||||||||||||||||||||||
(0.38 | ) | 20.34 | (3.30 | ) | 150,436 | 1.11 | 1.11 | 1.82 | 51 | |||||||||||||||||||||||||
(0.34 | ) | 21.44 | 3.06 | 145,039 | 1.11 | 1.11 | 1.63 | 26 | ||||||||||||||||||||||||||
$ | (0.21 | ) | $ | 27.23 | 3.82 | % | $ | 12,080 | 1.87 | % | 1.87 | % | 0.70 | % | 68 | % | ||||||||||||||||||
(0.21 | ) | 26.44 | 8.49 | 62,232 | 1.81 | 1.86 | 0.82 | 110 | ||||||||||||||||||||||||||
(0.13 | ) | 24.57 | (c) | 20.52 | (c) | 70,159 | 1.77 | 1.87 | 0.86 | 67 | ||||||||||||||||||||||||
(0.20 | ) | 20.50 | (4.04 | ) | 79,758 | 1.86 | 1.86 | 1.06 | 51 | |||||||||||||||||||||||||
(0.14 | ) | 21.57 | 2.28 | 94,367 | 1.86 | 1.86 | 0.88 | 26 | ||||||||||||||||||||||||||
$ | (0.37 | ) | $ | 27.18 | 4.37 | % | $ | 2,090 | 1.37 | % | 1.37 | % | 1.24 | % | 68 | % | ||||||||||||||||||
(0.34 | ) | 26.41 | 9.00 | 5,200 | 1.31 | 1.36 | 1.35 | 110 | ||||||||||||||||||||||||||
(0.28 | ) | 24.55 | (c) | 21.14 | (c) | 6,997 | 1.27 | 1.37 | 1.35 | 67 | ||||||||||||||||||||||||
(0.32 | ) | 20.51 | (3.53 | ) | 7,200 | 1.36 | 1.36 | 1.56 | 51 | |||||||||||||||||||||||||
(0.26 | ) | 21.60 | 2.80 | 8,641 | 1.36 | 1.36 | 1.39 | 26 | ||||||||||||||||||||||||||
$ | (0.51 | ) | $ | 27.16 | 4.95 | % | $ | 19,097 | 0.87 | % | 0.87 | % | 1.80 | % | 68 | % | ||||||||||||||||||
(0.48 | ) | 26.38 | 9.54 | 20,242 | 0.81 | 0.86 | 1.80 | 110 | ||||||||||||||||||||||||||
(0.46 | ) | 24.53 | (c) | 21.71 | (c) | 18,164 | 0.77 | 0.87 | 1.85 | 67 | ||||||||||||||||||||||||
(0.45 | ) | 20.56 | (3.06 | ) | 14,197 | 0.86 | 0.86 | 2.06 | 51 | |||||||||||||||||||||||||
(0.46 | ) | 21.68 | 3.35 | 17,699 | 0.86 | 0.86 | 1.88 | 26 | ||||||||||||||||||||||||||
$ | (0.54 | ) | $ | 26.77 | 5.02 | % | $ | 132,572 | 0.77 | % | 0.77 | % | 1.91 | % | 68 | % | ||||||||||||||||||
(0.51 | ) | 26.02 | 9.66 | 127,728 | 0.71 | 0.76 | 1.89 | 110 | ||||||||||||||||||||||||||
(0.47 | ) | 24.20 | (c) | 21.88 | (c) | 114,377 | 0.67 | 0.77 | 1.95 | 67 | ||||||||||||||||||||||||
(0.47 | ) | 20.27 | (2.99 | ) | 150,909 | 0.76 | 0.76 | 2.18 | 51 | |||||||||||||||||||||||||
(0.47 | ) | 21.39 | 3.44 | 312,294 | 0.76 | 0.76 | 1.97 | 26 | ||||||||||||||||||||||||||
$ | (0.47 | ) | $ | 27.29 | 4.77 | % | $ | 1,381 | 1.02 | % | 1.02 | % | 1.66 | % | 68 | % | ||||||||||||||||||
(0.44 | ) | 26.51 | 9.40 | 1,323 | 0.96 | 1.01 | 1.64 | 110 | ||||||||||||||||||||||||||
(0.39 | ) | 24.64 | (c) | 21.58 | (c) | 1,272 | 0.92 | 1.02 | 1.71 | 67 | ||||||||||||||||||||||||
(0.41 | ) | 20.61 | (3.23 | ) | 1,345 | 1.01 | 1.01 | 1.91 | 51 | |||||||||||||||||||||||||
(0.21 | ) | 21.73 | 3.20 | 1,655 | 1.01 | 1.01 | 1.79 | 26 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 129 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Period ended:^
Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI NFJMid-Cap Value: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 30.06 | $ | 0.44 | $ | 0.54 | $ | 0.98 | $ | (0.31 | ) | $ | (0.13 | ) | ||||||||||||||
6/30/2018 | 31.41 | 0.39 | 1.27 | 1.66 | (0.26 | ) | (2.75 | ) | ||||||||||||||||||||
6/30/2017 | 24.37 | 0.36 | 7.03 | (d) | 7.39 | (0.33 | ) | (0.02 | ) | |||||||||||||||||||
6/30/2016 | 25.82 | 0.45 | (0.87 | ) | (0.42 | ) | (0.32 | ) | (0.71 | ) | ||||||||||||||||||
6/30/2015 | 25.52 | 0.31 | 0.36 | 0.67 | (0.37 | ) | — | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 24.62 | $ | 0.13 | $ | 0.54 | $ | 0.67 | $ | — | $ | (0.13 | ) | |||||||||||||||
6/30/2018 | 26.22 | 0.12 | 1.08 | 1.20 | (0.05 | ) | (2.75 | ) | ||||||||||||||||||||
6/30/2017 | 20.43 | 0.13 | 5.87 | (d) | 6.00 | (0.19 | ) | (0.02 | ) | |||||||||||||||||||
6/30/2016 | 21.83 | 0.23 | (0.73 | ) | (0.50 | ) | (0.19 | ) | (0.71 | ) | ||||||||||||||||||
6/30/2015 | 21.66 | 0.10 | 0.30 | 0.40 | (0.23 | ) | — | |||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 25.79 | $ | 0.31 | $ | 0.46 | $ | 0.77 | $ | (0.27 | ) | $ | (0.13 | ) | ||||||||||||||
6/30/2018 | 27.40 | 0.24 | 1.17 | 1.41 | (0.27 | ) | (2.75 | ) | ||||||||||||||||||||
6/30/2017 | 21.26 | 0.26 | 6.13 | (d) | 6.39 | (0.23 | ) | (0.02 | ) | |||||||||||||||||||
6/30/2016 | 22.68 | 0.34 | (0.76 | ) | (0.42 | ) | (0.29 | ) | (0.71 | ) | ||||||||||||||||||
6/30/2015 | 22.48 | 0.22 | 0.32 | 0.54 | (0.34 | ) | — | |||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 24.35 | $ | 0.41 | $ | 0.43 | $ | 0.84 | $ | (0.38 | ) | $ | (0.13 | ) | ||||||||||||||
6/30/2018 | 26.01 | 0.37 | 1.10 | 1.47 | (0.38 | ) | (2.75 | ) | ||||||||||||||||||||
6/30/2017 | 20.27 | 0.32 | 5.87 | (d) | 6.19 | (0.43 | ) | (0.02 | ) | |||||||||||||||||||
6/30/2016 | 21.70 | 0.43 | (0.74 | ) | (0.31 | ) | (0.41 | ) | (0.71 | ) | ||||||||||||||||||
6/30/2015 | 21.57 | 0.33 | 0.29 | 0.62 | (0.49 | ) | — | |||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 32.15 | $ | 0.58 | $ | 0.57 | $ | 1.15 | $ | (0.40 | ) | $ | (0.13 | ) | ||||||||||||||
6/30/2018 | 33.41 | 0.51 | 1.38 | 1.89 | (0.40 | ) | (2.75 | ) | ||||||||||||||||||||
6/30/2017 | 25.88 | 0.48 | 7.47 | (d) | 7.95 | (0.40 | ) | (0.02 | ) | |||||||||||||||||||
6/30/2016 | 27.33 | 0.56 | (0.90 | ) | (0.34 | ) | (0.40 | ) | (0.71 | ) | ||||||||||||||||||
6/30/2015 | 26.99 | 0.43 | 0.37 | 0.80 | (0.46 | ) | — | |||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
6/30/2019 | $ | 32.13 | $ | 0.63 | $ | 0.53 | $ | 1.16 | $ | (0.41 | ) | $ | (0.13 | ) | ||||||||||||||
12/18/2017* - 6/30/2018 | 36.74 | 0.18 | (1.61 | ) | (1.43 | ) | (0.43 | ) | (2.75 | ) | ||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 31.00 | $ | 0.48 | $ | 0.56 | $ | 1.04 | $ | (0.34 | ) | $ | (0.13 | ) | ||||||||||||||
6/30/2018 | 32.35 | 0.42 | 1.32 | 1.74 | (0.34 | ) | (2.75 | ) | ||||||||||||||||||||
6/30/2017 | 25.08 | 0.40 | 7.24 | (d) | 7.64 | (0.35 | ) | (0.02 | ) | |||||||||||||||||||
6/30/2016 | 26.54 | 0.49 | (0.89 | ) | (0.40 | ) | (0.35 | ) | (0.71 | ) | ||||||||||||||||||
6/30/2015 | 26.23 | 0.35 | 0.37 | 0.72 | (0.41 | ) | — |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
* | Commencement of operations. |
(a) | Calculated on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the period and a sale of a share on the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. Total return for a period of less than one year is not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Payments from securities litigation increased net realized and change in unrealized gain (loss) and net asset value per share by approximately $1.41 for Class A; $1.23 for Class C; $1.13 for Class R; $1.93 for Class P; $1.19 for Institutional Class and $1.63 for Administrative Class. The increase in total return per class was approximately 5.86% for Class A; 6.08% for Class C; 5.37% for Class R; 9.70% for Class P; 4.66% for Institutional Class and 6.58% for Administrative Class. |
(e) | Annualized, unless otherwise noted. |
130 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (b) | Net Assets, End of Period (000s) | Ratio of Expenses to Average Net Assets with Fee Waiver/ Reimbursement | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net Investment Income to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (0.44 | ) | $ | 30.60 | 3.46 | % | $ | 595,707 | 0.99 | % | 1.21 | % | 1.48 | % | 81 | % | ||||||||||||||||||
(3.01 | ) | 30.06 | 4.88 | 518,293 | 1.04 | (c) | 1.21 | (c) | 1.22 | (c) | 31 | |||||||||||||||||||||||
(0.35 | ) | 31.41 | (d) | 30.53 | (d) | 480,691 | 1.21 | (c) | 1.21 | (c) | 1.30 | (c) | 45 | |||||||||||||||||||||
(1.03 | ) | 24.37 | (1.46 | ) | 363,166 | 1.23 | (c) | 1.23 | (c) | 1.88 | (c) | 50 | ||||||||||||||||||||||
(0.37 | ) | 25.82 | 2.66 | 408,706 | 1.26 | (c) | 1.26 | (c) | 1.23 | (c) | 48 | |||||||||||||||||||||||
$ | (0.13 | ) | $ | 25.16 | 2.73 | % | $ | 48,176 | 1.74 | % | 1.96 | % | 0.54 | % | 81 | % | ||||||||||||||||||
(2.80 | ) | 24.62 | 4.10 | 182,192 | 1.79 | (c) | 1.96 | (c) | 0.46 | (c) | 31 | |||||||||||||||||||||||
(0.21 | ) | 26.22 | (d) | 29.52 | (d) | 168,922 | 1.96 | (c) | 1.96 | (c) | 0.59 | (c) | 45 | |||||||||||||||||||||
(0.90 | ) | 20.43 | (2.16 | ) | 173,304 | 1.98 | (c) | 1.98 | (c) | 1.13 | (c) | 50 | ||||||||||||||||||||||
(0.23 | ) | 21.83 | 1.88 | 198,432 | 2.01 | (c) | 2.01 | (c) | 0.48 | (c) | 48 | |||||||||||||||||||||||
$ | (0.40 | ) | $ | 26.16 | 3.21 | % | $ | 20,087 | 1.24 | % | 1.46 | % | 1.22 | % | 81 | % | ||||||||||||||||||
(3.02 | ) | 25.79 | 4.65 | 15,644 | 1.27 | (c) | 1.46 | (c) | 0.90 | (c) | 31 | |||||||||||||||||||||||
(0.25 | ) | 27.40 | (d) | 30.19 | (d) | 5,591 | 1.46 | (c) | 1.46 | (c) | 1.09 | (c) | 45 | |||||||||||||||||||||
(1.00 | ) | 21.26 | (1.70 | ) | 6,969 | 1.48 | (c) | 1.48 | (c) | 1.58 | (c) | 50 | ||||||||||||||||||||||
(0.34 | ) | 22.68 | 2.43 | 11,665 | 1.51 | (c) | 1.51 | (c) | 0.96 | (c) | 48 | |||||||||||||||||||||||
$ | (0.51 | ) | $ | 24.68 | 3.75 | % | $ | 197,201 | 0.74 | % | 0.96 | % | 1.70 | % | 81 | % | ||||||||||||||||||
(3.13 | ) | 24.35 | 5.17 | 200,081 | 0.77 | (c) | 0.96 | (c) | 1.46 | (c) | 31 | |||||||||||||||||||||||
(0.45 | ) | 26.01 | (d) | 30.82 | (d) | 52,167 | 0.96 | (c) | 0.96 | (c) | 1.39 | (c) | 45 | |||||||||||||||||||||
(1.12 | ) | 20.27 | (1.19 | ) | 17,268 | 0.98 | (c) | 0.98 | (c) | 2.14 | (c) | 50 | ||||||||||||||||||||||
(0.49 | ) | 21.70 | 2.93 | 15,307 | 1.01 | (c) | 1.01 | (c) | 1.55 | (c) | 48 | |||||||||||||||||||||||
$ | (0.53 | ) | $ | 32.77 | 3.83 | % | $ | 406,173 | 0.64 | % | 0.86 | % | 1.82 | % | 81 | % | ||||||||||||||||||
(3.15 | ) | 32.15 | 5.26 | 332,110 | 0.66 | (c) | 0.86 | (c) | 1.53 | (c) | 31 | |||||||||||||||||||||||
(0.42 | ) | 33.41 | (d) | 30.95 | (d) | 53,333 | 0.86 | (c) | 0.86 | (c) | 1.66 | (c) | 45 | |||||||||||||||||||||
(1.11 | ) | 25.88 | (1.08 | ) | 55,877 | 0.88 | (c) | 0.88 | (c) | 2.16 | (c) | 50 | ||||||||||||||||||||||
(0.46 | ) | 27.33 | 3.01 | 92,289 | 0.91 | (c) | 0.91 | (c) | 1.60 | (c) | 48 | |||||||||||||||||||||||
$ | (0.54 | ) | $ | 32.75 | 3.89 | % | $ | 18,052 | 0.59 | % | 0.81 | % | 2.03 | % | 81 | % | ||||||||||||||||||
(3.18 | ) | 32.13 | (4.25 | ) | 2,167 | 0.59 | (c)(e) | 0.81 | (c)(e) | 1.04 | (c)(e) | 31 | ||||||||||||||||||||||
$ | (0.47 | ) | $ | 31.57 | 3.60 | % | $ | 27,405 | 0.89 | % | 1.11 | % | 1.58 | % | 81 | % | ||||||||||||||||||
(3.09 | ) | 31.00 | 4.98 | 18,947 | 0.92 | (c) | 1.11 | (c) | 1.32 | (c) | 31 | |||||||||||||||||||||||
(0.37 | ) | 32.35 | (d) | 30.66 | (d) | 5,120 | 1.11 | (c) | 1.11 | (c) | 1.40 | (c) | 45 | |||||||||||||||||||||
(1.06 | ) | 25.08 | (1.36 | ) | 3,792 | 1.13 | (c) | 1.13 | (c) | 1.98 | (c) | 50 | ||||||||||||||||||||||
(0.41 | ) | 26.54 | 2.77 | 4,698 | 1.16 | (c) | 1.16 | (c) | 1.33 | (c) | 48 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 131 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGI NFJSmall-Cap Value: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 21.71 | $ | 0.29 | $ | (2.73 | ) | $ | (2.44 | ) | $ | (0.62 | ) | $ | (4.12 | ) | ||||||||||||
6/30/2018 | 24.36 | 0.29 | 1.44 | 1.73 | (0.12 | ) | (4.26 | ) | ||||||||||||||||||||
6/30/2017 | 20.82 | 0.30 | 4.12 | 4.42 | (0.32 | ) | (0.56 | ) | ||||||||||||||||||||
6/30/2016 | 25.91 | 0.41 | (1.92 | ) | (1.51 | ) | (0.35 | ) | (3.23 | ) | ||||||||||||||||||
6/30/2015 | 35.24 | 0.41 | (1.95 | ) | (1.54 | ) | (0.67 | ) | (7.12 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 19.30 | $ | 0.16 | $ | (2.41 | ) | $ | (2.25 | ) | $ | — | $ | (4.08 | )* | |||||||||||||
6/30/2018 | 22.14 | 0.11 | 1.31 | 1.42 | — | (4.26 | ) | |||||||||||||||||||||
6/30/2017 | 19.02 | 0.12 | 3.75 | 3.87 | (0.19 | ) | (0.56 | ) | ||||||||||||||||||||
6/30/2016 | 23.99 | 0.23 | (1.78 | ) | (1.55 | ) | (0.19 | ) | (3.23 | ) | ||||||||||||||||||
6/30/2015 | 33.27 | 0.17 | (1.85 | ) | (1.68 | ) | (0.48 | ) | (7.12 | ) | ||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
6/30/2019 | $ | 23.10 | $ | 0.26 | $ | (2.85 | ) | $ | (2.59 | ) | $ | (0.54 | ) | $ | (4.12 | ) | ||||||||||||
6/30/2018 | 25.64 | 0.25 | 1.51 | 1.76 | (0.04 | ) | (4.26 | ) | ||||||||||||||||||||
6/30/2017 | 21.87 | 0.25 | 4.34 | 4.59 | (0.26 | ) | (0.56 | ) | ||||||||||||||||||||
6/30/2016 | 26.99 | 0.37 | (1.99 | ) | (1.62 | ) | (0.27 | ) | (3.23 | ) | ||||||||||||||||||
6/30/2015 | 36.37 | 0.34 | (2.02 | ) | (1.68 | ) | (0.58 | ) | (7.12 | ) | ||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 24.18 | $ | 0.38 | $ | (2.97 | ) | $ | (2.59 | ) | $ | (0.68 | ) | $ | (4.12 | ) | ||||||||||||
6/30/2018 | 26.69 | 0.39 | 1.56 | 1.95 | (0.20 | ) | (4.26 | ) | ||||||||||||||||||||
6/30/2017 | 22.74 | 0.36 | 4.54 | 4.90 | (0.39 | ) | (0.56 | ) | ||||||||||||||||||||
6/30/2016 | 27.92 | 0.51 | (2.06 | ) | (1.55 | ) | (0.40 | ) | (3.23 | ) | ||||||||||||||||||
6/30/2015 | 37.36 | 0.51 | (2.07 | ) | (1.56 | ) | (0.76 | ) | (7.12 | ) | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 24.34 | $ | 0.41 | $ | (3.00 | ) | $ | (2.59 | ) | $ | (0.68 | ) | $ | (4.12 | ) | ||||||||||||
6/30/2018 | 26.82 | 0.42 | 1.58 | 2.00 | (0.22 | ) | (4.26 | ) | ||||||||||||||||||||
6/30/2017 | 22.84 | 0.42 | 4.53 | 4.95 | (0.41 | ) | (0.56 | ) | ||||||||||||||||||||
6/30/2016 | 28.05 | 0.55 | (2.08 | ) | (1.53 | ) | (0.45 | ) | (3.23 | ) | ||||||||||||||||||
6/30/2015 | 37.46 | 0.56 | (2.07 | ) | (1.51 | ) | (0.78 | ) | (7.12 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
6/30/2019 | $ | 24.25 | $ | 0.41 | $ | (2.99 | ) | $ | (2.58 | ) | $ | (0.70 | ) | $ | (4.12 | ) | ||||||||||||
6/30/2018 | 26.75 | 0.44 | 1.56 | 2.00 | (0.24 | ) | (4.26 | ) | ||||||||||||||||||||
6/30/2017 | 22.79 | 0.41 | 4.55 | 4.96 | (0.44 | ) | (0.56 | ) | ||||||||||||||||||||
6/30/2016 | 28.02 | 0.56 | (2.08 | ) | (1.52 | ) | (0.48 | ) | (3.23 | ) | ||||||||||||||||||
6/30/2015 | 37.47 | 0.40 | (1.90 | ) | (1.50 | ) | (0.83 | ) | (7.12 | ) | ||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 21.65 | $ | 0.30 | $ | (2.73 | ) | $ | (2.43 | ) | $ | (0.62 | ) | $ | (4.12 | ) | ||||||||||||
6/30/2018 | 24.30 | 0.32 | 1.43 | 1.75 | (0.14 | ) | (4.26 | ) | ||||||||||||||||||||
6/30/2017 | 20.78 | 0.33 | 4.11 | 4.44 | (0.36 | ) | (0.56 | ) | ||||||||||||||||||||
6/30/2016 | 25.87 | 0.45 | (1.92 | ) | (1.47 | ) | (0.39 | ) | (3.23 | ) | ||||||||||||||||||
6/30/2015 | 35.19 | 0.46 | (1.96 | ) | (1.50 | ) | (0.70 | ) | (7.12 | ) |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
* | The character of a portion of the distribution was redesignated from net investment income to net realized capital gain for the year ended June 30, 2019. The per share amount for Class C differs from other classes, as at the time the distribution was made, Class C had minimal distributable net investment income, therefore no redesignation for Class C was made. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Payments from Affiliates increased the end of period net asset value and total return by less than $0.01 and 0.01%, respectively. |
132 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Year | Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Assets with Fee Waiver/ Reimbursement | Ratio of Expenses to Average Net Assets without Fee Waiver/ Reimbursement | Ratio of Net Investment Income to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (4.74 | ) | $ | 14.53 | (7.70 | )% | $ | 439,710 | 1.18 | % | 1.26 | % | 1.65 | % | 47 | % | ||||||||||||||||||
(4.38 | ) | 21.71 | 7.04 | 718,104 | 1.20 | 1.25 | 1.27 | 24 | ||||||||||||||||||||||||||
(0.88 | ) | 24.36 | 21.38 | 788,438 | 1.20 | (c) | 1.24 | (c) | 1.31 | (c) | 30 | |||||||||||||||||||||||
(3.58 | ) | 20.82 | (5.31 | ) | 1,037,525 | 1.22 | (c) | 1.23 | (c) | 1.88 | (c) | 48 | ||||||||||||||||||||||
(7.79 | ) | 25.91 | (d) | (3.77 | )(d) | 1,592,000 | 1.18 | 1.21 | 1.39 | 42 | ||||||||||||||||||||||||
$ | (4.08 | ) | $ | 12.97 | (8.35 | )% | $ | 3,984 | 1.93 | % | 2.01 | % | 0.88 | % | 47 | % | ||||||||||||||||||
(4.26 | ) | 19.30 | 6.26 | 106,052 | 1.95 | 2.00 | 0.54 | 24 | ||||||||||||||||||||||||||
(0.75 | ) | 22.14 | 20.45 | 135,225 | 1.95 | (c) | 1.99 | (c) | 0.56 | (c) | 30 | |||||||||||||||||||||||
(3.42 | ) | 19.02 | (5.99 | ) | 175,139 | 1.97 | (c) | 1.98 | (c) | 1.14 | (c) | 48 | ||||||||||||||||||||||
(7.60 | ) | 23.99 | (d) | (4.52 | )(d) | 259,629 | 1.93 | 1.96 | 0.63 | 42 | ||||||||||||||||||||||||
$ | (4.66 | ) | $ | 15.85 | (7.97 | )% | $ | 22,153 | 1.43 | % | 1.51 | % | 1.41 | % | 47 | % | ||||||||||||||||||
(4.30 | ) | 23.10 | 6.77 | 37,655 | 1.45 | 1.50 | 1.02 | 24 | ||||||||||||||||||||||||||
(0.82 | ) | 25.64 | 21.09 | 51,759 | 1.45 | (c) | 1.49 | (c) | 1.04 | (c) | 30 | |||||||||||||||||||||||
(3.50 | ) | 21.87 | (5.52 | ) | 64,707 | 1.47 | (c) | 1.48 | (c) | 1.62 | (c) | 48 | ||||||||||||||||||||||
(7.70 | ) | 26.99 | (d) | (4.06 | )(d) | 97,345 | 1.43 | 1.46 | 1.13 | 42 | ||||||||||||||||||||||||
$ | (4.80 | ) | $ | 16.79 | (7.49 | )% | $ | 39,426 | 0.93 | % | 1.01 | % | 1.91 | % | 47 | % | ||||||||||||||||||
(4.46 | ) | 24.18 | 7.27 | 65,466 | 0.95 | 1.00 | 1.54 | 24 | ||||||||||||||||||||||||||
(0.95 | ) | 26.69 | 21.66 | 72,679 | 0.95 | (c) | 0.99 | (c) | 1.42 | (c) | 30 | |||||||||||||||||||||||
(3.63 | ) | 22.74 | (5.01 | ) | 58,556 | 0.97 | (c) | 0.98 | (c) | 2.13 | (c) | 48 | ||||||||||||||||||||||
(7.88 | ) | 27.92 | (d) | (3.58 | )(d) | 106,077 | 0.93 | 0.96 | 1.63 | 42 | ||||||||||||||||||||||||
$ | (4.80 | ) | $ | 16.95 | (7.42 | )% | $ | 288,309 | 0.83 | % | 0.91 | % | 1.98 | % | 47 | % | ||||||||||||||||||
(4.48 | ) | 24.34 | 7.43 | 778,547 | 0.85 | 0.90 | 1.61 | 24 | ||||||||||||||||||||||||||
(0.97 | ) | 26.82 | 21.82 | 1,213,861 | 0.83 | (c) | 0.89 | (c) | 1.68 | (c) | 30 | |||||||||||||||||||||||
(3.68 | ) | 22.84 | (4.93 | ) | 1,800,472 | 0.82 | (c) | 0.88 | (c) | 2.28 | (c) | 48 | ||||||||||||||||||||||
(7.90 | ) | 28.05 | (d) | (3.40 | )(d) | 2,866,196 | 0.78 | 0.86 | 1.78 | 42 | ||||||||||||||||||||||||
$ | (4.82 | ) | $ | 16.85 | (7.37 | )% | $ | 150,200 | 0.78 | % | 0.86 | % | 2.04 | % | 47 | % | ||||||||||||||||||
(4.50 | ) | 24.25 | 7.44 | 347,379 | 0.80 | 0.85 | 1.70 | 24 | ||||||||||||||||||||||||||
(1.00 | ) | 26.75 | 21.90 | 464,279 | 0.79 | (c) | 0.84 | (c) | 1.60 | (c) | 30 | |||||||||||||||||||||||
(3.71 | ) | 22.79 | (4.86 | ) | 371,453 | 0.77 | (c) | 0.83 | (c) | 2.39 | (c) | 48 | ||||||||||||||||||||||
(7.95 | ) | 28.02 | (d) | (3.37 | )(d) | 235,613 | 0.73 | 0.81 | 1.36 | 42 | ||||||||||||||||||||||||
$ | (4.74 | ) | $ | 14.48 | (7.64 | )% | $ | 107,836 | 1.08 | % | 1.16 | % | 1.74 | % | 47 | % | ||||||||||||||||||
(4.40 | ) | 21.65 | 7.14 | 206,749 | 1.10 | 1.15 | 1.38 | 24 | ||||||||||||||||||||||||||
(0.92 | ) | 24.30 | 21.52 | 365,241 | 1.09 | (c) | 1.14 | (c) | 1.43 | (c) | 30 | |||||||||||||||||||||||
(3.62 | ) | 20.78 | (5.11 | ) | 494,621 | 1.07 | (c) | 1.13 | (c) | 2.03 | (c) | 48 | ||||||||||||||||||||||
(7.82 | ) | 25.87 | (d) | (3.62 | )(d) | 811,305 | 1.03 | 1.11 | 1.54 | 42 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 133 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Period ended:^
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations |
Dividends from Net | Distributions from Net Realized Capital Gains | |||||||||||||||||||||||
AllianzGISmall-Cap: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 21.61 | $ | 0.07 | $ | (0.53 | ) | $ | (0.46 | ) | $ | (0.02 | ) | $ | (1.63 | ) | ||||||||||||
6/30/2018 | 20.51 | (0.02 | ) | 3.92 | 3.90 | — | (2.80 | ) | ||||||||||||||||||||
6/30/2017 | 16.71 | 0.03 | 3.79 | 3.82 | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2016 | 18.41 | 0.03 | (1.14 | ) | (1.11 | ) | (0.09 | ) | (0.50 | ) | ||||||||||||||||||
6/30/2015 | 18.28 | 0.09 | 0.93 | 1.02 | (0.05 | ) | (0.84 | ) | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 20.92 | $ | (0.07 | ) | $ | (0.54 | ) | $ | (0.61 | ) | $ | — | $ | (1.63 | ) | ||||||||||||
6/30/2018 | 20.07 | (0.17 | ) | 3.82 | 3.65 | — | (2.80 | ) | ||||||||||||||||||||
6/30/2017 | 16.48 | (0.11 | ) | 3.71 | 3.60 | — | (0.01 | ) | ||||||||||||||||||||
6/30/2016 | 18.20 | (0.10 | ) | (1.12 | ) | (1.22 | ) | — | (0.50 | ) | ||||||||||||||||||
6/30/2015 | 18.16 | (0.05 | ) | 0.93 | 0.88 | — | (0.84 | ) | ||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 21.81 | $ | 0.12 | $ | (0.53 | ) | $ | (0.41 | ) | $ | (0.03 | ) | $ | (1.63 | ) | ||||||||||||
6/30/2018 | 20.63 | 0.03 | 3.95 | 3.98 | — | (2.80 | ) | |||||||||||||||||||||
6/30/2017 | 16.77 | 0.07 | 3.81 | 3.88 | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2016 | 18.49 | 0.07 | (1.15 | ) | (1.08 | ) | (0.14 | ) | (0.50 | ) | ||||||||||||||||||
6/30/2015 | 18.33 | 0.13 | 0.95 | 1.08 | (0.08 | ) | (0.84 | ) | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 21.96 | $ | 0.14 | $ | (0.53 | ) | $ | (0.39 | ) | $ | (0.04 | ) | $ | (1.63 | ) | ||||||||||||
6/30/2018 | 20.73 | 0.05 | 3.98 | 4.03 | — | (2.80 | ) | |||||||||||||||||||||
6/30/2017 | 16.84 | 0.10 | 3.81 | 3.91 | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||
6/30/2016 | 18.49 | 0.08 | (1.13 | ) | (1.05 | ) | (0.10 | ) | (0.50 | ) | ||||||||||||||||||
6/30/2015 | 18.34 | 0.15 | 0.94 | 1.09 | (0.10 | ) | (0.84 | ) | ||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
8/22/2018* - 6/30/2019 | $ | 23.16 | $ | 0.13 | $ | (1.71 | ) | $ | (1.58 | ) | $ | (0.05 | ) | $ | (1.63 | ) |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
* | Commencement of operations. |
(a) | Calculated on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the period and a sale of a share on the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. Total return for a period of less than one year is not annualized. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | Payments from Affiliates increased the end of period net asset value and total return by less than $0.01 and 0.01%, respectively. |
(e) | Annualized, unless otherwise noted. |
134 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (b) | Net Assets, End of Period (000s) | Ratio of Expenses to Assets with Fee Waiver/ Reimbursement | Ratio of Expenses to Assets without Reimbursement | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||
$ | (1.65 | ) | $ | 19.50 | (0.62 | )% | $ | 66,269 | 1.18 | % | 1.27 | % | 0.35 | % | 78 | % | ||||||||||||||||||
(2.80 | ) | 21.61 | 19.96 | 44,860 | 1.31 | (c) | 1.31 | (c) | (0.07 | )(c) | 126 | |||||||||||||||||||||||
(0.02 | ) | 20.51 | (d) | 22.82 | (d) | 39,509 | 1.31 | 1.31 | 0.15 | 152 | ||||||||||||||||||||||||
(0.59 | ) | 16.71 | (6.02 | ) | 32,660 | 1.27 | 1.31 | 0.17 | 139 | |||||||||||||||||||||||||
(0.89 | ) | 18.41 | 6.01 | 38,579 | 1.24 | 1.30 | 0.47 | 148 | ||||||||||||||||||||||||||
$ | (1.63 | ) | $ | 18.68 | (1.39 | )% | $ | 7,873 | 1.93 | % | 2.02 | % | (0.36 | )% | 78 | % | ||||||||||||||||||
(2.80 | ) | 20.92 | 19.10 | 35,080 | 2.06 | (c) | 2.06 | (c) | (0.82 | )(c) | 126 | |||||||||||||||||||||||
(0.01 | ) | 20.07 | (d) | 21.82 | (d) | 32,802 | 2.06 | 2.06 | (0.60 | ) | 152 | |||||||||||||||||||||||
(0.50 | ) | 16.48 | (6.72 | ) | 36,607 | 2.02 | 2.06 | (0.58 | ) | 139 | ||||||||||||||||||||||||
(0.84 | ) | 18.20 | 5.27 | 44,067 | 1.99 | 2.05 | (0.29 | ) | 148 | |||||||||||||||||||||||||
$ | (1.66 | ) | $ | 19.74 | (0.36 | )% | $ | 9,637 | 0.93 | % | 1.02 | % | 0.61 | % | 78 | % | ||||||||||||||||||
(2.80 | ) | 21.81 | 20.25 | 6,883 | 1.06 | (c) | 1.06 | (c) | 0.12 | (c) | 126 | |||||||||||||||||||||||
(0.02 | ) | 20.63 | (d) | 23.12 | (d) | 3,425 | 1.06 | 1.06 | 0.39 | 152 | ||||||||||||||||||||||||
(0.64 | ) | 16.77 | (5.82 | ) | 3,246 | 1.02 | 1.06 | 0.43 | 139 | |||||||||||||||||||||||||
(0.92 | ) | 18.49 | 6.36 | 2,143 | 0.99 | 1.05 | 0.73 | 148 | ||||||||||||||||||||||||||
$ | (1.67 | ) | $ | 19.90 | (0.29 | )% | $ | 9,077 | 0.83 | % | 0.92 | % | 0.70 | % | 78 | % | ||||||||||||||||||
(2.80 | ) | 21.96 | 20.40 | 8,104 | 0.96 | (c) | 0.96 | (c) | 0.21 | (c) | 126 | |||||||||||||||||||||||
(0.02 | ) | 20.73 | (d) | 23.22 | (d) | 3,037 | 0.96 | 0.96 | 0.52 | 152 | ||||||||||||||||||||||||
(0.60 | ) | 16.84 | (5.69 | ) | 2,738 | 0.92 | 0.96 | 0.46 | 139 | |||||||||||||||||||||||||
(0.94 | ) | 18.49 | 6.41 | 6,656 | 0.93 | 0.95 | 0.86 | 148 | ||||||||||||||||||||||||||
$ | (1.68 | ) | $ | 19.90 | (5.42 | )% | $ | 17,792 | 0.77 | %(e) | 0.87 | %(e) | 0.76 | %(e) | 78 | % |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 135 |
Table of Contents
Financial Highlights (cont’d)
For a Share Outstanding for the Year ended:^
Net Asset Value, Beginning of Year | Net Investment Income (Loss) (a) |
Net Realized and Change in Unrealized Gain (Loss) | Total from Investment Operations | Distributions from Net Realized Capital Gains | Net Asset Value, End of Year | |||||||||||||||||||||||
AllianzGI Technology: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
6/30/2019 | $ | 71.60 | $ | (0.68 | ) | $ | 5.90 | $ | 5.22 | $ | (12.90 | ) | $ | 63.92 | ||||||||||||||
6/30/2018 | 60.82 | (0.64 | ) | 22.58 | 21.94 | (11.16 | ) | 71.60 | ||||||||||||||||||||
6/30/2017 | 48.03 | (0.17 | )(d) | 15.75 | 15.58 | (2.79 | ) | 60.82 | (d) | |||||||||||||||||||
6/30/2016 | 58.15 | (0.38 | ) | (1.07 | ) | (1.45 | ) | (8.67 | ) | 48.03 | ||||||||||||||||||
6/30/2015 | 63.49 | (0.54 | ) | 6.49 | 5.95 | (11.29 | ) | 58.15 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2019 | $ | 55.32 | $ | (0.92 | ) | $ | 3.72 | $ | 2.80 | $ | (12.90 | ) | $ | 45.22 | ||||||||||||||
6/30/2018 | 49.43 | (0.91 | ) | 17.96 | 17.05 | (11.16 | ) | 55.32 | ||||||||||||||||||||
6/30/2017 | 39.80 | (0.46 | )(d) | 12.88 | 12.42 | (2.79 | ) | 49.43 | (d) | |||||||||||||||||||
6/30/2016 | 49.98 | (0.66 | ) | (0.85 | ) | (1.51 | ) | (8.67 | ) | 39.80 | ||||||||||||||||||
6/30/2015 | 56.46 | (0.87 | ) | 5.68 | 4.81 | (11.29 | ) | 49.98 | ||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
6/30/2019 | $ | 79.05 | $ | (0.58 | ) | $ | 6.92 | $ | 6.34 | $ | (12.90 | ) | $ | 72.49 | ||||||||||||||
6/30/2018 | 66.03 | (0.53 | ) | 24.71 | 24.18 | (11.16 | ) | 79.05 | ||||||||||||||||||||
6/30/2017 | 51.80 | — | (d) | 17.02 | 17.02 | (2.79 | ) | 66.03 | (d) | |||||||||||||||||||
6/30/2016 | 61.90 | (0.27 | ) | (1.16 | ) | (1.43 | ) | (8.67 | ) | 51.80 | ||||||||||||||||||
6/30/2015 | 66.74 | (0.42 | ) | 6.87 | 6.45 | (11.29 | ) | 61.90 | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 80.40 | $ | (0.52 | ) | $ | 7.12 | $ | 6.60 | $ | (12.90 | ) | $ | 74.10 | ||||||||||||||
6/30/2018 | 66.94 | (0.45 | ) | 25.07 | 24.62 | (11.16 | ) | 80.40 | ||||||||||||||||||||
6/30/2017 | 52.43 | 0.06 | (d) | 17.24 | 17.30 | (2.79 | ) | 66.94 | (d) | |||||||||||||||||||
6/30/2016 | 62.49 | (0.24 | ) | (1.15 | ) | (1.39 | ) | (8.67 | ) | 52.43 | ||||||||||||||||||
6/30/2015 | 67.21 | (0.36 | ) | 6.93 | 6.57 | (11.29 | ) | 62.49 | ||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
6/30/2019 | $ | 75.76 | $ | (0.67 | ) | $ | 6.48 | $ | 5.81 | $ | (12.90 | ) | $ | 68.67 | ||||||||||||||
6/30/2018 | 63.76 | (0.61 | ) | 23.77 | 23.16 | (11.16 | ) | 75.76 | ||||||||||||||||||||
6/30/2017 | 50.18 | (0.23 | )(d) | 16.60 | 16.37 | (2.79 | ) | 63.76 | (d) | |||||||||||||||||||
6/30/2016 | 60.32 | (0.36 | ) | (1.11 | ) | (1.47 | ) | (8.67 | ) | 50.18 | ||||||||||||||||||
6/30/2015 | 65.40 | (0.50 | ) | 6.71 | 6.21 | (11.29 | ) | 60.32 |
^ | A “—” may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Calculated on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the year and a sale of a share on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return does not reflect sales charges and includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. |
(c) | Does not include expenses of the investment companies in which the Fund invests. |
(d) | An out of period adjustment of $3,694,541, which is included in miscellaneous income, related to income earned in previous years, decreased net investment loss per share and increased net asset value per share by approximately $0.15 for Class A; $0.13 for Class C; $0.20 for Class P; $0.20 for Institutional Class and $0.04 for Administrative Class. The increase in total return and decrease in ratio of net investment loss to average net assets relating to this income for each share class was approximately 0.33% and 0.28% for Class A; 0.35% and 0.29% for Class C; 0.40% and 0.33% for Class P; 0.40% and 0.32% for Institutional Class; 0.09% and 0.08% for Administrative Class, respectively. |
136 | Annual Report | | June 30, 2019 | | See accompanying Notes to Financial Statements |
Table of Contents
Total Return (b) | Net Assets, End of Year (000s) | Ratio of Expenses to Average Net Assets with Fee Waiver/ Reimbursement | Ratio of Reimbursement | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||
12.40 | % | $ | 601,112 | 1.51 | %(c) | 1.56 | %(c) | (1.05 | )%(c) | 109 | % | |||||||||||||||
38.89 | 530,127 | 1.42 | (c) | 1.57 | (c) | (0.95 | )(c) | 104 | ||||||||||||||||||
33.69 | (d) | 452,039 | 1.51 | (c) | 1.61 | (c) | (0.31 | )(c)(d) | 128 | |||||||||||||||||
(3.24 | ) | 417,305 | 1.66 | (c) | 1.66 | (c) | (0.74 | )(c) | 171 | |||||||||||||||||
10.33 | 340,765 | 1.61 | 1.61 | (0.90 | ) | 165 | ||||||||||||||||||||
11.57 | % | $ | 48,842 | 2.23 | %(c) | 2.31 | %(c) | (1.78 | )%(c) | 109 | % | |||||||||||||||
37.86 | 138,589 | 2.17 | (c) | 2.32 | (c) | (1.70 | )(c) | 104 | ||||||||||||||||||
32.69 | (d) | 113,411 | 2.26 | (c) | 2.36 | (c) | (1.05 | )(c)(d) | 128 | |||||||||||||||||
(3.95 | ) | 112,423 | 2.41 | (c) | 2.41 | (c) | (1.53 | )(c) | 171 | |||||||||||||||||
9.51 | 130,395 | 2.36 | 2.36 | (1.65 | ) | 165 | ||||||||||||||||||||
12.68 | % | $ | 155,553 | 1.27 | %(c) | 1.31 | %(c) | (0.80 | )%(c) | 109 | % | |||||||||||||||
39.24 | 100,560 | 1.17 | (c) | 1.32 | (c) | (0.71 | )(c) | 104 | ||||||||||||||||||
34.03 | (d) | 59,369 | 1.26 | (c) | 1.35 | (c) | (0.01 | )(c)(d) | 128 | |||||||||||||||||
(2.99 | ) | 44,881 | 1.41 | (c) | 1.41 | (c) | (0.50 | )(c) | 171 | |||||||||||||||||
10.62 | 53,710 | 1.36 | 1.36 | (0.66 | ) | 165 | ||||||||||||||||||||
12.81 | % | $ | 800,061 | 1.16 | %(c) | 1.21 | %(c) | (0.69 | )%(c) | 109 | % | |||||||||||||||
39.37 | 789,922 | 1.07 | (c) | 1.22 | (c) | (0.59 | )(c) | 104 | ||||||||||||||||||
34.16 | (d) | 736,162 | 1.16 | (c) | 1.25 | (c) | 0.09 | (c)(d) | 128 | |||||||||||||||||
(2.89 | ) | 518,761 | 1.31 | (c) | 1.31 | (c) | (0.43 | )(c) | 171 | |||||||||||||||||
10.71 | 617,315 | 1.26 | 1.26 | (0.55 | ) | 165 | ||||||||||||||||||||
12.52 | % | $ | 11,688 | 1.40 | %(c) | 1.46 | %(c) | (0.95 | )%(c) | 109 | % | |||||||||||||||
39.02 | 23,535 | 1.32 | (c) | 1.47 | (c) | (0.85 | )(c) | 104 | ||||||||||||||||||
33.83 | (d) | 15,062 | 1.44 | (c) | 1.52 | (c) | (0.41 | )(c)(d) | 128 | |||||||||||||||||
(3.15 | ) | 62,913 | 1.56 | (c) | 1.56 | (c) | (0.68 | )(c) | 171 | |||||||||||||||||
10.44 | 72,947 | 1.51 | 1.51 | (0.80 | ) | 165 |
See accompanying Notes to Financial Statements | | June 30, 2019 | | Annual Report | 137 |
Table of Contents
June 30, 2019
1. | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES |
Allianz Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company organized as a Massachusetts business trust and accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. As of June 30, 2019, the Trust consisted of fourteen separate investment funds (each a “Fund” and collectively the “Funds”). Allianz Global Investors U.S. LLC (“AllianzGI U.S.” or the “Investment Adviser”) serves as the Funds’ investment adviser. The Investment Adviser is an indirect wholly-owned subsidiary of Allianz Asset Management of America L.P. (“AAM”). AAM is an indirect, wholly-owned subsidiary of Allianz SE, a publicly traded European insurance and financial services company. Currently, the Trust may offer up to seven classes of shares to new and existing investors: A, C, R, P, Institutional, R6 and Administrative. Class C shares of a Fund will automatically convert to Class A shares of the same Fund following theten-year anniversary of purchase. Such conversions are subject to certain limitations.
During the year ended June 30, 2019, the following Fund sold and issued shares of beneficial interest to Allianz of America, Inc. (“AZOA”), an indirect wholly-owned subsidiary of Allianz SE:
AllianzGI Small Cap | ||||||||||||
Class | Date | Shares | Amount | |||||||||
R6 | 8/22/18 | 432 | $ | 10,000 |
The investment objective of AllianzGI Emerging Markets Opportunities is to seek maximum long-term capital appreciation. The investment objective of AllianzGI Focused Growth, AllianzGI Global Natural Resources, AllianzGI GlobalSmall-Cap, AllianzGI Health Sciences, AllianzGIMid-Cap, AllianzGISmall-Cap and AllianzGI Technology is to seek long-term capital appreciation. The investment objective of AllianzGI NFJ Dividend Value, AllianzGI NFJ International Value, AllianzGI NFJLarge-Cap Value, AllianzGI NFJMid-Cap Value and AllianzGI NFJSmall-Cap Value is to seek long-term growth of capital and income. The investment objective of AllianzGI Income & Growth is to seek total return comprised of current income, current gains and capital appreciation. There can be no assurance that the Funds will meet their stated objectives.
The preparation of the Funds’ financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the Funds’ management to make estimates and assumptions that affect the reported amounts and disclosures in each Fund’s financial statements. Actual results could differ from those estimates.
Like many other companies, the Trust’s organizational documents provide that its officers (“Officers”) and the Board of Trustees (the “Board” or the “Trustees”) are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal
course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust’s maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
The following is a summary of significant accounting policies consistently followed by the Funds:
(a) Valuation of Investments. Portfolio securities and other financial instruments for which market quotations are readily available are valued at market value. Market values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, or based on quotes or other market information obtained from quotation reporting systems, established market makers or pricing services. Investments in mutual funds are valued at the net asset value (“NAV”) as reported on each business day, and, under normal circumstances, ETFs are valued at their current market trading price. The Funds’ investments are valued daily using prices supplied by an independent pricing service or broker/dealer quotations, or by using the last sale or settlement price on the exchange that is the primary market for such securities, or the mean between the last bid and ask quotations. The market value for NASDAQ Global Market and NASDAQ Capital Market securities may also be calculated using the NASDAQ Official Closing Price instead of the last reported sales price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.
The Board has adopted procedures for valuing portfolio securities and other financial derivative instruments in circumstances where market quotes are not readily available (including in cases where available market quotations are deemed to be unreliable), and has delegated primary responsibility for applying the valuation methods to the Investment Adviser. The Trust’s Valuation Committee was established by the Board to oversee the implementation of the Funds’ valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Investment Adviser monitors the continued appropriateness of methods applied and identifies circumstances and events that may require fair valuation. The Investment Adviser determines if adjustments should be made in light of market changes, events affecting the issuer or other factors. If the Investment Adviser determines that a valuation method may no longer be appropriate, another valuation method previously approved by the Valuation Committee may be selected, or the Trust’s Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Trust’s Valuation Committee.
Short-term debt investments having a remaining maturity of 60 days or less are valued at amortized cost unless the Board or its Valuation Committee determines that particular circumstances dictate otherwise.
138 | June 30, 2019 | | Annual Report |
Table of Contents
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of each share class of a Fund may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange (“NYSE”) is closed and the NAV of a Fund’s shares may change on days when an investor is not able to purchase or redeem or exchanges shares.
The prices used by the Funds to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material to the Funds’ financial statements. The NAV of each share class of a Fund is normally determined as of the close of regular trading (normally, 4:00 p.m., Eastern Time) on the NYSE on each day the NYSE is open for business. In unusual circumstances, the Board or the Valuation Committee may in good faith determine the NAV as of 4:00 p.m., Eastern Time, notwithstanding an earlier, unscheduled close or halt of trading on the NYSE.
The prices of certain portfolio securities or financial instruments may be determined at a time prior to the close of regular trading on the NYSE. In considering whether fair value pricing is required and in determining fair values, the Funds may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time the NAV of each share class of a Fund is calculated. With respect to certain foreign securities, the Funds may fair-value securities using modeling tools provided by third-party vendors, where appropriate. The Funds have retained a statistical research service to assist in determining the fair value of foreign securities. This service utilizes statistics and programs based on historical performance of markets and other economic data to assist in making fair value estimates. Fair value estimates used by the Funds for foreign securities may differ from the value realized from the sale of those securities and the difference could be material to the financial statements. Fair value pricing may require subjective determinations about the value of a security or other assets, and fair values used to determine the NAV of each share class of a Fund may differ from quoted or published prices, or from prices that are used by others, for the same investments. Also, the use of fair value pricing may not always result in adjustments to the prices of securities or other assets held by a Fund.
(b) Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:
∎ | Level 1—quoted prices in active markets for identical investments that the Funds have the ability to access |
∎ | Level 2—valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs |
∎ | Level 3—valuations based on significant unobservable inputs (including the Investment Adviser’s or the Trust’s Valuation Committee’s own assumptions and securities whose price was determined by using a single broker’s quote) |
The valuation techniques used by the Funds to measure fair value during the year ended June 30, 2019 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.
An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Funds generally use to evaluate how to classify each major category of assets and liabilities within Level 2 and Level 3, in accordance with U.S. GAAP.
An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Funds generally use a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Funds’ valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Funds’ valuation procedures are designed to value a security at the price the Funds may reasonably expect to receive upon the security’s sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Funds would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available.
Equity Securities (Common and Preferred Stock and Warrants)—Equity securities traded in inactive markets and certain foreign equity securities are valued using inputs which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or evaluated price quotes received from independent pricing services that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable, the values of equity securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Annual Report | | June 30, 2019 | 139 |
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Notes to Financial Statements (cont’d)
June 30, 2019
Corporate Bonds & Notes—Corporate bonds & notes are generally comprised of two main categories: investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Convertible Bonds & Notes—Convertible bonds & notes are valued by independent pricing services based on various inputs and techniques, which include broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into
consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of convertible bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Option Contracts—Option contracts tradedover-the-counter (“OTC”) and FLexible EXchange (“FLEX”) options are valued by independent pricing services based on pricing models that incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements forin-the-money,at-the-money, andout-of-the-money contracts based on a given strike price. To the extent that these inputs are observable, the values of OTC and FLEX option contracts are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Forward Foreign Currency Contracts—Forward foreign currency contracts are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, actual trading information and foreign currency exchange rates gathered from leading market makers and foreign currency exchange trading centers throughout the world. To the extent that these inputs are observable, the values of forward foreign currency contracts are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
A summary of the inputs used at June 30, 2019 in valuing each Fund’s assets and liabilities is listed below (refer to the Schedules of Investments and Notes to Schedules of Investments for more detailed information on Investments in Securities and Other Financial Instruments):
AllianzGI Emerging Markets Opportunities: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Brazil | $ | 16,449,798 | — | — | $ | 16,449,798 | ||||||||||
China | 20,059,970 | $ | 108,833,565 | — | 128,893,535 | |||||||||||
India | 13,277,084 | 27,616,605 | — | 40,893,689 | ||||||||||||
Mexico | 10,879,228 | — | — | 10,879,228 | ||||||||||||
Russian Federation | 22,946,912 | — | $ | 3,377,025 | 26,323,937 | |||||||||||
South Africa | 3,658,174 | 14,902,830 | — | 18,561,004 | ||||||||||||
Thailand | — | — | 7,596,712 | 7,596,712 | ||||||||||||
United States | 3,958,092 | — | — | 3,958,092 | ||||||||||||
All Other | — | 95,579,325 | — | 95,579,325 | ||||||||||||
Preferred Stock: | ||||||||||||||||
Brazil | 12,856,021 | — | — | 12,856,021 | ||||||||||||
Russian Federation | — | — | 5,739,783 | 5,739,783 | ||||||||||||
Exchange-Traded Funds | 2,832,060 | — | — | 2,832,060 | ||||||||||||
Repurchase Agreements | — | 5,998,000 | — | 5,998,000 | ||||||||||||
Totals | $ | 106,917,339 | $ | 252,930,325 | $ | 16,713,520 | $ | 376,561,184 | ||||||||
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AllianzGI Focused Growth: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock | $ | 1,005,671,828 | — | — | $ | 1,005,671,828 | ||||||||||
Repurchase Agreements | — | $ | 39,629,000 | — | 39,629,000 | |||||||||||
Totals | $ | 1,005,671,828 | $ | 39,629,000 | — | $ | 1,045,300,828 | |||||||||
AllianzGI Global Natural Resources: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Australia | — | $ | 636,680 | — | $ | 636,680 | ||||||||||
Denmark | — | 78,403 | — | 78,403 | ||||||||||||
France | — | 593,968 | — | 593,968 | ||||||||||||
Germany | — | 289,431 | — | 289,431 | ||||||||||||
Japan | — | 112,274 | — | 112,274 | ||||||||||||
Spain | — | 87,343 | — | 87,343 | ||||||||||||
United Kingdom | — | 1,657,816 | — | 1,657,816 | ||||||||||||
All Other | $ | 8,274,863 | — | — | 8,274,863 | |||||||||||
Exchange-Traded Funds | 407,064 | — | — | 407,064 | ||||||||||||
Totals | $ | 8,681,927 | $ | 3,455,915 | — | $ | 12,137,842 | |||||||||
AllianzGI GlobalSmall-Cap: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Australia | — | $ | 3,012,610 | $ | 46,051 | $ | 3,058,661 | |||||||||
Austria | $ | 1,516,490 | 759,529 | — | 2,276,019 | |||||||||||
Denmark | — | 2,723,823 | — | 2,723,823 | ||||||||||||
Finland | — | 473,370 | — | 473,370 | ||||||||||||
France | — | 3,144,482 | — | 3,144,482 | ||||||||||||
Germany | 1,610,763 | 2,511,985 | — | 4,122,748 | ||||||||||||
Hong Kong | — | 191,521 | — | 191,521 | ||||||||||||
Indonesia | — | 322,552 | — | 322,552 | ||||||||||||
Italy | — | 1,306,692 | — | 1,306,692 | ||||||||||||
Japan | — | 12,759,281 | — | 12,759,281 | ||||||||||||
Netherlands | — | 1,484,900 | — | 1,484,900 | ||||||||||||
Norway | — | 1,345,679 | — | 1,345,679 | ||||||||||||
Singapore | 343,016 | 533,477 | — | 876,493 | ||||||||||||
Sweden | — | 912,375 | — | 912,375 | ||||||||||||
Switzerland | 897,803 | 2,134,442 | — | 3,032,245 | ||||||||||||
Taiwan | — | 180,205 | — | 180,205 | ||||||||||||
Thailand | — | — | 257,201 | 257,201 | ||||||||||||
United Kingdom | — | 8,180,673 | — | 8,180,673 | ||||||||||||
All Other | 80,042,401 | — | — | 80,042,401 | ||||||||||||
Preferred Stock | — | 674,411 | — | 674,411 | ||||||||||||
Repurchase Agreements | — | 4,336,000 | — | 4,336,000 | ||||||||||||
Totals | $ | 84,410,473 | $ | 46,988,007 | $ | 303,252 | $ | 131,701,732 | ||||||||
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Notes to Financial Statements (cont’d)
June 30, 2019
AllianzGI Health Sciences: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Pharmaceuticals | $ | 59,753,193 | $ | 3,339,966 | — | $ | 63,093,159 | |||||||||
All Other | 89,140,484 | — | — | 89,140,484 | ||||||||||||
Warrants | — | — | $ | 184,981 | 184,981 | |||||||||||
Repurchase Agreements | — | 3,619,000 | — | 3,619,000 | ||||||||||||
Totals | $ | 148,893,677 | $ | 6,958,966 | $ | 184,981 | $ | 156,037,624 | ||||||||
AllianzGI Income & Growth: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Advertising | — | — | $ | 266,445 | $ | 266,445 | ||||||||||
Aerospace & Defense | $ | 47,991,014 | — | 272,411 | 48,263,425 | |||||||||||
Apparel & Textiles | — | — | 44,930 | 44,930 | ||||||||||||
Banks | 50,274,480 | — | 7 | 50,274,487 | ||||||||||||
Commercial Services | — | — | 576,798 | 576,798 | ||||||||||||
Media | 18,505,956 | — | 1,018,843 | 19,524,799 | ||||||||||||
Oil, Gas & Consumable Fuels | 38,945,143 | — | 18 | 38,945,161 | ||||||||||||
All Other | 1,332,375,500 | — | — | 1,332,375,500 | ||||||||||||
Corporate Bonds & Notes: |
| |||||||||||||||
Commercial Services | — | $ | 74,186,187 | 476,780 | 74,662,967 | |||||||||||
Diversified Financial Services | — | 57,596,565 | 3,683,024 | 61,279,589 | ||||||||||||
Media | — | 120,188,096 | 8 | 120,188,104 | ||||||||||||
All Other | — | 1,145,070,918 | — | 1,145,070,918 | ||||||||||||
Convertible Bonds & Notes: |
| |||||||||||||||
Banks | — | 1,004,375 | 17,201,932 | 18,206,307 | ||||||||||||
All Other | — | 1,188,646,189 | — | 1,188,646,189 | ||||||||||||
Convertible Preferred Stock: |
| |||||||||||||||
Computers | — | 10,777,966 | — | 10,777,966 | ||||||||||||
Diversified Financial Services | — | 3,527,607 | — | 3,527,607 | ||||||||||||
Electronics | — | 15,758,632 | — | 15,758,632 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | — | 15,268,065 | — | 15,268,065 | ||||||||||||
Hand/Machine Tools | — | 12,980,294 | — | 12,980,294 | ||||||||||||
Healthcare-Products | 21,832,009 | 20,758,694 | — | 42,590,703 | ||||||||||||
All Other | 97,550,230 | — | — | 97,550,230 | ||||||||||||
Preferred Stock | — | — | 18,217,438 | 18,217,438 | ||||||||||||
Equity-Linked Security | 192,096 | — | — | 192,096 | ||||||||||||
Warrants | — | — | 69,803 | 69,803 | ||||||||||||
Repurchase Agreements | — | 211,938,000 | — | 211,938,000 | ||||||||||||
1,607,666,428 | 2,877,701,588 | 41,828,437 | 4,527,196,453 | |||||||||||||
Investments in Securities – Liabilities |
| |||||||||||||||
Options Written: |
| |||||||||||||||
Market Price | (760,940 | ) | — | — | (760,940 | ) | ||||||||||
Totals | $ | 1,606,905,488 | $ | 2,877,701,588 | $ | 41,828,437 | $ | 4,526,435,513 |
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AllianzGIMid-Cap: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock | $ | 310,499,281 | — | — | $ | 310,499,281 | ||||||||||
Repurchase Agreements | — | $ | 2,558,000 | — | 2,558,000 | |||||||||||
Totals | $ | 310,499,281 | $ | 2,558,000 | — | $ | 313,057,281 | |||||||||
AllianzGI NFJ Dividend Value: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock | $ | 1,335,155,113 | — | — | $ | 1,335,155,113 | ||||||||||
Repurchase Agreements | — | $ | 21,560,000 | — | 21,560,000 | |||||||||||
Totals | $ | 1,335,155,113 | $ | 21,560,000 | — | $ | 1,356,715,113 | |||||||||
AllianzGI NFJ International Value: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Canada | $ | 22,494,930 | — | — | $ | 22,494,930 | ||||||||||
India | 1,221,581 | — | — | 1,221,581 | ||||||||||||
Mexico | 1,832,830 | — | — | 1,832,830 | ||||||||||||
Peru | 1,785,857 | — | — | 1,785,857 | ||||||||||||
Russian Federation | 1,677,879 | — | — | 1,677,879 | ||||||||||||
Taiwan | 1,632,841 | — | — | 1,632,841 | ||||||||||||
United Kingdom | 11,025,239 | $ | 18,595,271 | — | 29,620,510 | |||||||||||
United States | 3,354,377 | — | — | 3,354,377 | ||||||||||||
All Other | — | 114,577,790 | — | 114,577,790 | ||||||||||||
Repurchase Agreements | — | 1,224,000 | — | 1,224,000 | ||||||||||||
Totals | $ | 45,025,534 | $ | 134,397,061 | — | $ | 179,422,595 | |||||||||
AllianzGI NFJLarge-Cap Value: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock | $ | 344,382,417 | — | — | $ | 344,382,417 | ||||||||||
AllianzGI NFJMid-Cap Value: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock | $ | 1,305,212,930 | — | — | $ | 1,305,212,930 | ||||||||||
Repurchase Agreements | — | $ | 20,909,000 | — | 20,909,000 | |||||||||||
Totals | $ | 1,305,212,930 | $ | 20,909,000 | — | $ | 1,326,121,930 | |||||||||
Annual Report | | June 30, 2019 | 143 |
Table of Contents
Notes to Financial Statements (cont’d)
June 30, 2019
AllianzGI NFJSmall-Cap Value: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Chemicals | $ | 29,045,395 | — | $ | 56 | $ | 29,045,451 | |||||||||
All Other | 1,029,152,088 | — | — | 1,029,152,088 | ||||||||||||
Repurchase Agreements | — | $ | 13,137,000 | — | 13,137,000 | |||||||||||
Totals | $ | 1,058,197,483 | $ | 13,137,000 | $ | 56 | $ | 1,071,334,539 | ||||||||
AllianzGISmall-Cap: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Equity Real Estate Investment Trusts (REITs) | $ | 4,295,151 | — | $ | 2,074 | $ | 4,297,225 | |||||||||
All Other | 104,488,459 | — | — | 104,488,459 | ||||||||||||
Repurchase Agreements | — | $ | 2,279,000 | — | 2,279,000 | |||||||||||
Totals | $ | 108,783,610 | $ | 2,279,000 | $ | 2,074 | $ | 111,064,684 | ||||||||
AllianzGI Technology: | ||||||||||||||||
Investments in Securities – Assets | Level 1– Quoted Prices | Level 2– Other Significant Observable Inputs | Level 3– Significant Unobservable Inputs | Value at 6/30/19 | ||||||||||||
Common Stock: | ||||||||||||||||
Electrical Equipment | $ | 13,049,022 | $ | 13,734 | — | $ | 13,062,756 | |||||||||
Electronic Equipment, Instruments & Components | 29,997 | 222,451 | — | 252,448 | ||||||||||||
Entertainment | 17,405,085 | 36,690 | — | 17,441,775 | ||||||||||||
Interactive Media & Services | 152,448,576 | 51,469 | — | 152,500,045 | ||||||||||||
IT Services | 370,021,006 | 145,372 | — | 370,166,378 | ||||||||||||
Semiconductors & Semiconductor Equipment | 168,225,707 | 133,996 | — | 168,359,703 | ||||||||||||
Software | 522,729,101 | 17,129,717 | — | 539,858,818 | ||||||||||||
Technology Hardware, Storage & Peripherals | 52,077,119 | 45,869 | — | 52,122,988 | ||||||||||||
All Other | 159,871,967 | — | — | 159,871,967 | ||||||||||||
Exchange-Traded Funds | — | 1,913 | — | 1,913 | ||||||||||||
Repurchase Agreements | — | 149,339,000 | — | 149,339,000 | ||||||||||||
Options Purchased: | ||||||||||||||||
Market Price | 2,659,800 | — | — | 2,659,800 | ||||||||||||
1,458,517,380 | 167,120,211 | — | 1,625,637,591 | |||||||||||||
Investments in Securities – Liabilities | ||||||||||||||||
Options Written: | ||||||||||||||||
Market Price | (437,500 | ) | — | — | (437,500 | ) | ||||||||||
Securities Sold Short, at value | (138 | ) | — | — | (138 | ) | ||||||||||
(437,638 | ) | — | — | (437,638 | ) | |||||||||||
Totals | $ | 1,458,079,742 | $ | 167,120,211 | — | $ | 1,625,199,953 |
A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the year ended June 30, 2019, was as follows:
AllianzGI Emerging Markets Opportunities: | ||||||||||||||||||||||||||||||||||||
Investments in Securities – Assets | Beginning Balance 6/30/18 | Purchases | Sales | Accrued Discount (Premiums) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/ Depreciation | Transfers into Level 3 | Transfers out of Level 3 | Ending Balance 6/30/19 | |||||||||||||||||||||||||||
Common Stock: | ||||||||||||||||||||||||||||||||||||
Russian Federation | $ | 1,733,513 | $ | 3,990,748 | $ | (1,407,327 | ) | — | $ | (247,646 | ) | $ | (692,263 | ) | — | — | $ | 3,377,025 | ||||||||||||||||||
Thailand | 13,378,021 | 5,870,191 | (11,598,487 | ) | — | 288,939 | (341,952 | ) | — | — | 7,596,712 | |||||||||||||||||||||||||
Preferred Stock | 2,322,012 | 2,108,431 | — | — | — | 1,309,340 | — | — | 5,739,783 | |||||||||||||||||||||||||||
Totals | $ | 17,433,546 | $ | 11,969,370 | $ | (13,005,814 | ) | — | $ | 41,293 | $ | 275,125 | — | — | $ | 16,713,520 |
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AllianzGI GlobalSmall-Cap: | ||||||||||||||||||||||||||||||||||||
Investments in Securities – Assets | Beginning Balance 6/30/18 | Purchases | Sales | Accrued Discount (Premiums) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/ Depreciation | Transfers into Level 3 | Transfers out of Level 3 | Ending Balance 6/30/19 | |||||||||||||||||||||||||||
Common Stock: | ||||||||||||||||||||||||||||||||||||
Australia | — | $ | 44,355 | — | — | — | $ | 1,696 | — | — | $ | 46,051 | ||||||||||||||||||||||||
Thailand | — | 233,964 | — | — | — | 23,237 | — | — | 257,201 | |||||||||||||||||||||||||||
Totals | — | $ | 278,319 | — | — | — | $ | 24,933 | — | — | $ | 303,252 | ||||||||||||||||||||||||
AllianzGI Health Sciences: | ||||||||||||||||||||||||||||||||||||
Investments in Securities – Assets | Beginning Balance 6/30/18 | Purchases | Sales | Accrued Discount (Premiums) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/ Depreciation | Transfers into Level 3 | Transfers out of Level 3 | Ending Balance 6/30/19 | |||||||||||||||||||||||||||
Warrants | $ | 75,826 | — | — | — | — | $ | 109,155 | — | — | $ | 184,981 | ||||||||||||||||||||||||
AllianzGI Income & Growth: | ||||||||||||||||||||||||||||||||||||
Investments in Securities – Assets | Beginning Balance 6/30/18 | Purchases | Sales | Accrued Discount (Premiums) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/ Depreciation | Transfers into Level 3* | Transfers out of Level 3 | Ending Balance 6/30/19 | |||||||||||||||||||||||||||
Common Stock: | ||||||||||||||||||||||||||||||||||||
Advertising | $ | 1,385,428 | — | $ | (1,422,155 | )†† | — | — | $ | 303,172 | — | — | $ | 266,445 | ||||||||||||||||||||||
Aerospace & Defense | 354,775 | — | — | — | — | (82,364 | ) | — | — | 272,411 | ||||||||||||||||||||||||||
Apparel & Textiles | 60,947 | — | — | — | — | (16,017 | ) | — | — | 44,930 | ||||||||||||||||||||||||||
Banks | — | — | †† | — | — | — | 7 | — | — | 7 | ||||||||||||||||||||||||||
Commercial Services | — | $ | 1,960,164 | †† | — | — | — | (1,383,366 | ) | — | — | 576,798 | ||||||||||||||||||||||||
Media | 1,442,959 | — | — | — | — | (424,116 | ) | — | — | 1,018,843 | ||||||||||||||||||||||||||
Oil, Gas & Consumable Fuels | 322,716 | — | (218,790 | )† | — | — | (103,789 | ) | — | $ | (119 | )** | 18 | |||||||||||||||||||||||
Semiconductors | 10,552 | — | (25 | )† | — | $ | 25 | (10,552 | ) | — | — | — | ||||||||||||||||||||||||
Corporate Bonds & Notes: | ||||||||||||||||||||||||||||||||||||
Advertising | 993,836 | 81,097 | (1,699,424 | )†† | — | — | 624,491 | — | — | — | ||||||||||||||||||||||||||
Commercial Services | — | — | — | — | — | — | $ | 476,780 | — | 476,780 | ||||||||||||||||||||||||||
Diversified Financial Services | — | — | — | — | — | — | 3,683,024 | — | 3,683,024 | |||||||||||||||||||||||||||
Media | 153 | — | — | — | — | (145 | ) | — | — | 8 | ||||||||||||||||||||||||||
Convertible Bonds & Notes: | ||||||||||||||||||||||||||||||||||||
Banks | 17,540,357 | — | — | — | — | 665,950 | — | (1,004,375 | )*** | 17,201,932 | ||||||||||||||||||||||||||
Energy-Alternate Sources | 571,500 | — | — | — | — | — | — | (571,500 | )*** | — | ||||||||||||||||||||||||||
Preferred Stock | 18,217,438 | — | — | — | — | — | — | — | 18,217,438 | |||||||||||||||||||||||||||
Equity-Linked Securities: | ||||||||||||||||||||||||||||||||||||
Coal | 117,974 | — | — | — | — | 74,122 | — | (192,096 | )** | — | ||||||||||||||||||||||||||
Oil, Gas & Consumable Fuels | 141 | — | — | @ | — | (601,986 | ) | 601,845 | — | — | — | |||||||||||||||||||||||||
Warrants: | ||||||||||||||||||||||||||||||||||||
Advertising | — | 1,422,155 | †† | — | — | — | (1,352,356 | ) | — | — | 69,799 | |||||||||||||||||||||||||
Commercial Services | 76 | — | — | @ | — | (237,932 | ) | 237,856 | — | — | — | |||||||||||||||||||||||||
Media | 4 | — | — | — | — | — | — | — | 4 | |||||||||||||||||||||||||||
Totals | $ | 41,018,856 | $ | 3,463,416 | $ | (3,340,394 | ) | — | $ | (839,893 | ) | $ | (865,262 | ) | $ | 4,159,804 | $ | (1,768,090 | ) | $ | 41,828,437 |
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June 30, 2019
The table for AllianzGI Income & Growth includes Level 3 investments that are valued by brokers and independent pricing services. The inputs for these investments are not readily available or cannot be reasonably estimated and are generally those inputs described in Note 1(b).
AllianzGI NFJSmall-Cap Value: | ||||||||||||||||||||||||||||||||||||
Investments in Securities – Assets | Beginning Balance 6/30/18 | Purchases | Sales | Accrued Discount (Premiums) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/ Depreciation | Transfers into Level 3 | Transfers out of Level 3 | Ending Balance 6/30/19 | |||||||||||||||||||||||||||
Common Stock: | ||||||||||||||||||||||||||||||||||||
Chemicals | $ | 56 | — | — | — | — | — | — | — | $ | 56 | |||||||||||||||||||||||||
AllianzGISmall-Cap: | ||||||||||||||||||||||||||||||||||||
Investments in Securities – Assets | Beginning Balance 6/30/18 | Purchases | Sales | Accrued Discount (Premiums) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/ Depreciation | Transfers into Level 3 | Transfers out of Level 3 | Ending Balance 6/30/19 | |||||||||||||||||||||||||||
Common Stock: | ||||||||||||||||||||||||||||||||||||
Equity Real Estate Investment Trusts (REITs) | $ | 7,258 | — | $ | (5,184 | )††† | — | — | — | — | — | $ | 2,074 |
The tables above may include Level 3 investments that are valued by brokers and independent pricing services.
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at June 30, 2019:
AllianzGI Health Sciences: | ||||||||||||
Investments in Securities – Assets | Ending Balance at 6/30/19 | Valuation Technique Used | Unobservable Inputs | Input Values | ||||||||
Warrants: | ||||||||||||
Pharmaceuticals | $ | 184,981 | Black Scholes Model | Implied Price | $ | 5.538 | ||||||
Expected Volatility | 43.74 | % | ||||||||||
AllianzGI Income & Growth: | ||||||||||||
Investments in Securities – Assets | Ending Balance at 6/30/19 | Valuation Technique Used | Unobservable Inputs | Input Values (Ranges) | ||||||||
Common Stock: | ||||||||||||
$ | 266,445 | Market and Company Comparables | EV Multiples | 6.46x (4.93x-8.33x) | ||||||||
M&A Transaction Multiples | 1.31x (0.67x-2.42x) | |||||||||||
Illiquidity Discount | 20% | |||||||||||
$ | 272,411 | Market and Company Comparables | EV Multiples | 0.59x (0.39x-0.82x) | ||||||||
M&A Transaction Multiples | 0.87x (0.32x-2.12x) | |||||||||||
Illiquidity Discount | 40% | |||||||||||
$ | 44,930 | Market and Company Comparables | EV Multiples | 0.64x (0.19x-1.17x) | ||||||||
10.68x (3.86x-22.96x) | ||||||||||||
0.88x (0.22x-1.78x) | ||||||||||||
Illiquidity Discount | 20% | |||||||||||
$ | 1,018,823 | Market and Company Comparables | EV Multiples | 1.08x (0.22x-2.85x) | ||||||||
4.94x (3.08x-19.98x) | ||||||||||||
M&A Transaction Multiples | 8.52x (6.65x-10.11x) | |||||||||||
Illiquidity Discount | 10% | |||||||||||
Corporate Bonds & Notes: | ||||||||||||
Diversified Financial Services | $ | 3,683,024 | Market and Company Comparables | Implied Price | $ | 36.11 | ||||||
Preferred Stock : | $ | 18,217,358 | Market and Company Comparables | EV Multiples | 0.71x (0.23x-1.32x) | |||||||
Illiquidity Discount | 25% | |||||||||||
Warrants: | ||||||||||||
Advertising | $ | 69,799 | Market and Company Comparables | EV Multiples | 6.53x (1.23x-25.52x) | |||||||
6.39x (1.26x-19.85x) | ||||||||||||
Black-Sholes Model | Expected Volatility | 24.94% | ||||||||||
Implied Price | $ | 55.36 |
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AllianzGISmall-Cap: | ||||||||||||
Investments in Securities – Assets | Ending Balance at 6/30/19 | Valuation Technique Used | Unobservable Inputs | Input Values | ||||||||
Common Stock | $ | 2,074 | Net Asset Approach | Estimated Movement of Proceeds | 7.18% | |||||||
Market and Company Comparables | Benchmark Index Movement | (2.61)% |
The tables above do not include Level 3 investments that are valued by brokers or independent pricing services.
* | Transferred out of Level 2 and into Level 3 because current evaluated mean price was not available at June 30, 2019. |
** | Transferred out of Level 3 and into Level 1 because an exchange-traded closing price was available at June 30, 2019. |
*** | Transferred out of Level 3 and into Level 2 because an evaluated mean price was used at June 30, 2019, which was not available on June 30, 2018. |
† | Reduction due to cash distribution from corporate action. |
†† | Issued or removed via corporate action. |
††† | Reduced due to Return of Capital payments. |
@ | Removed from accounting records as worthless. |
The net change in unrealized appreciation/depreciation of Level 3 investments which the following Funds held at June 30, 2019 was:
AllianzGI Emerging Markets Opportunities | $ | 971,623 | ||
AllianzGI GlobalSmall-Cap | 24,933 | |||
AllianzGI Health Sciences | 109,155 | |||
AllianzGI Income & Growth | (2,916,759 | ) |
Net realized gain (loss) and net change in unrealized appreciation/depreciation are reflected on the Statements of Operations.
(c) Investment Transactions and Investment Income. Investment transactions are accounted for on the trade date. Securities purchased and sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains and losses on investments are determined on an identified cost basis. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as a component of net change in unrealized appreciation (depreciation) of investments on the Statements of Operations. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statements of Operations. Interest income adjusted for the accretion of discounts and amortization of premiums is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized, respectively, to interest income. Conversion premium is not amortized. Dividend income is recorded on theex-dividend date, except for certain dividends from foreign securities where theex-dividend date may have passed, and then are recorded as soon after theex-dividend date as the Funds, using reasonable diligence, become aware of such dividends. Dividend and interest income on the Statements of Operations are shown net of any foreign taxes withheld on income from foreign securities. Payments received from real estate investment trust securities may be comprised of dividends, realized gains and return of capital. The payment may initially be recorded as dividend income and may subsequently be reclassified as realized gains and/or return of capital upon receipt of information from the issuer. Payments considered return of capital reduce the cost basis of the respective security. Distributions, if any, in excess of the cost basis of a security are recognized as capital gains. Dividends from underlying funds are recorded as dividend income, while capital gain
distributions are recorded as net capital gain distributions received from underlying funds on the Statements of Operations. Consent fees relating to corporate actions are recorded as miscellaneous income upon receipt. Expenses are recorded on an accrual basis and such expenses exclude those of the underlying funds. Expenses of the underlying funds are reflected in the net asset values of those funds.
(d) Federal Income Taxes. The Funds intend to distribute all of their taxable income and to comply with the other requirements of Subchapter M of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required. The Funds may be subject to excise tax based on distributions to shareholders.
Accounting for uncertainty in income taxes establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. In accordance with provisions set forth under U.S. GAAP, the Investment Adviser has reviewed the Funds’ tax positions for all open tax years. As of June 30, 2019, the Funds have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken. The Funds’ U.S. federal income tax returns for the prior three years, as applicable, remain subject to examination by the Internal Revenue Service.
(e) Dividends and Distributions to Shareholders. Dividends from net investment income, if any, of each Fund (except AllianzGI Income & Growth, AllianzGI NFJ Dividend Value, AllianzGI NFJ International Value and AllianzGI NFJLarge-Cap Value), are declared and distributed to shareholders annually. Dividends from net investment income and/or distributions from short-term capital gains for AllianzGI Income & Growth, if any, are declared and distributed monthly. Dividends from net investment income, if any, for AllianzGI NFJ Dividend Value, AllianzGI NFJ International Value and AllianzGI NFJLarge-Cap Value are declared and distributed quarterly. Net realized capital gains, if any, earned by each Fund, will be distributed annually. The Funds record dividends and distributions to their respective shareholders on theex-dividend date. The amount of dividends from net investment income and distributions from net realized capital
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Notes to Financial Statements (cont’d)
June 30, 2019
gains is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These“book-tax” differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their U.S. federal income tax treatment. Temporary differences do not require reclassification. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for U.S. federal income tax purposes, they are reported as dividends and/or distributions to shareholders from return of capital.
(f) Multi-Class Operations. Each class offered by the Funds has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income,non-class specific expenses, and realized and unrealized capital gains and losses of each Fund are allocated daily to each class of shares based on the relative net assets of each class. Class specific expenses, where applicable, include administration and distribution and servicing fees.
(g) Foreign Currency Translation. The Funds’ accounting records are maintained in U.S. dollars as follows: (1) the foreign currency market values of investments and other assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rate at the end of the period; and (2) purchases and sales, income and expenses are translated at the prevailing exchange rate on the respective dates of such transactions. The resulting net foreign currency gain (loss) is included in the Funds’ Statements of Operations.
The Funds do not generally isolate that portion of the results of operations arising as a result of changes in foreign currency exchange rates from the fluctuations arising from changes in the market prices of securities. Accordingly, such foreign currency gain (loss) is included in net realized and unrealized gain (loss) on investments. However, the Funds do isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations pursuant to U.S. federal income tax regulations; such amount is categorized as foreign currency gain (loss) for both financial reporting and income tax reporting purposes.
(h) Repurchase Agreements. The Funds are parties to Master Repurchase Agreements (“Master Repo Agreements”) with select counterparties. The Master Repo Agreements include provisions for initiation of repurchase transactions, income payments, events of default, and maintenance of collateral.
The Funds enter into transactions, under the Master Repo Agreements, with their custodian bank or securities brokerage firms whereby they purchase securities under agreements (i.e., repurchase agreements) to resell such securities at an agreed upon price and date. The Funds, through their custodian, take possession of securities collateralizing the repurchase agreement. Such agreements are carried at the contract amount in the financial statements, which is considered to represent fair value. The collateral that is pledged (i.e.
the securities received by the Funds), which consists primarily of U.S. government obligations and asset-backed securities, is held by the custodian bank for the benefit of the Funds until the maturity of the repurchase agreement. Provisions of the repurchase agreements and the procedures adopted by the Funds require that the market value of the collateral, including accrued interest thereon, be sufficient in the event of default by the counterparty. If the counterparty defaults under the Master Repo Agreements and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. The gross values are included in the Funds’ Schedules of Investments. As of June 30, 2019, the value of the related collateral exceeded the value of the repurchase agreements for each Fund.
(i) Securities Sold Short. Certain Funds engage in short sales for investment and risk management purposes. Short sales are transactions in which a Fund sells a security or other instrument (such as an option, forward, future or other derivative contract) it does not own. When a Fund engages in a short sale, it must borrow the security sold short and deliver it to the counterparty. The Funds will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Until a short position is closed out, the net proceeds of the short sale will be retained by the lending broker to the extent necessary to meet margin requirements, together with any additional assets the broker requires as collateral. This collateral earns interest and the interest is used to pay each lender a fee for borrowed securities, to compensate the broker for its services, and to provide a rebate to the borrower (the Fund) for posting the collateral. The net proceeds from these transactions are shown as miscellaneous income or miscellaneous expense on the Statements of Operations. A Fund is also required to designate, on its books or the books of its custodian, liquid assets (less any additional collateral held by the broker) to cover the short sale obligation, marked to market daily. Short sales expose the Funds to the risk that they will be required to cover the short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the applicable Fund. A short sale is “against the box” if a Fund holds in its portfolio or has the right to acquire the security sold short at no additional cost. The Funds will be subject to additional risks to the extent that they engage in short sales that are not “against the box.” A Fund’s loss on a short sale could theoretically be unlimited in cases where the Fund is unable, for whatever reason, to close out its short position.
(j) Warrants. The Funds may receive warrants. Warrants are securities that are usually issued together with a debt security or preferred stock and that give the holder the right to buy a proportionate amount of common stock at a specified price. Warrants may be freely transferable and are often traded on major exchanges. Warrants normally have a life that is measured in years and entitle the holder to buy common stock of a company at a price that is usually higher than the market price at the time the warrant is issued. Warrants may entail greater risks than certain other types of
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investments. Generally, warrants do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life of the warrant, the warrant will expire worthless. Warrants may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities. Similarly, the percentage increase or decrease in the value of an equity security warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may relate to the purchase of equity or debt securities. Debt obligations with warrants attached to purchase equity securities have many characteristics of convertible securities and their prices may, to some degree, reflect the performance of the underlying stock. Debt obligations also may be issued with warrants attached to purchase additional debt securities at the same coupon rate. A decline in interest rates would permit a Fund to sell such warrants at a profit. If interest rates rise, these warrants would generally expire with no value.
(k) Rights. The Funds may receive rights. A right is a privilege granted to existing shareholders of a corporation to subscribe for shares of a new issue of common stock before it is issued. Rights normally have a short life, usually two to four weeks, are freely transferable and entitle the holder to buy the new common stock at a lower price than the public offering price. Rights may entail greater risks than certain other types of investments. Generally, rights do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life of the right, the right will expire worthless. Rights may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities.
(l) Exchange-Traded Funds. Certain Funds may invest in exchange-traded-funds (“ETFs”), which typically are index-based investment companies that hold substantially all of their assets in securities representing their specific index, but may also be actively-managed investment companies. Shares of ETFs trade throughout the day on an exchange and represent an investment in a portfolio of securities and other assets. As a shareholder of another investment company, the Funds would bear their pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Funds bear directly in connection with their own operations.
(m) Convertible Securities. Certain Funds may invest a portion of their assets in convertible securities. Although convertible securities
derive part of their value from that of the securities into which they are convertible, they are not considered derivative financial instruments. However, certain of the Funds’ investments in convertible securities include features which render them sensitive to price changes in their underlying securities. The value of structured/synthetic convertible securities can be affected by interest rate changes and credit risks of the issuer. Such securities may be structured in ways that limit their potential for capital appreciation and the entire value of the security may be at risk of loss depending on the performance of the underlying equity security. Consequently, the Funds are exposed to greater downside risk than traditional convertible securities, but typically still less than that of the underlying stock.
(n) PaymentIn-Kind Securities. The Funds may invest in paymentin-kind securities, which are debt or preferred stock securities that require or permit payment of interest in the form of additional securities. Paymentin-kind securities allow the issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater risk than securities that pay interest currently or in cash.
(o) Loan Interest Expense. Loan interest expense relates to the amounts borrowed under the credit facility (See Note 12). Loan interest expense is recorded as it is incurred.
(p) Contingent Value Rights. A Fund may invest in contingent value rights (“CVRs”). A CVR gives the holder the right to receive an amount (which may be a fixed amount or determined by a formula) in the event that a specified corporate action, business milestone, or other trigger occurs (or does not occur) which is often subject to an expiration date. CVRs often are awarded to shareholders in the context of a corporate acquisition or major restructuring. For example, shareholders of an acquired company may receive a CVR that enables them to receive additional shares of the acquiring company in the event that the acquiring company’s share price falls below a certain level by a specified date. Risks associated with the use of CVRs are generally similar to risks associated with the use of options, such as the risk that the required trigger does not (or does) occur prior to a CVR’s expiration, causing the CVR to expire with no value. CVRs also present illiquidity risk, as they may not be registered securities or may otherwise benon-transferable or difficult to transfer, as well as counterparty risk and credit risk. Further, because CVRs are valued based on the likelihood of the occurrence of a trigger, valuation often requires modeling and judgment, which increases the risk of mispricing or improper valuation.
(q) Restricted Securities. The Funds are permitted to invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult.
(r) New Accounting Pronouncements. In March 2017, the FASB issued Accounting Standards Update No. (“ASU”)2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20): Premium Amortization on Purchased Callable Debt
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June 30, 2019
Securities.” ASU2017-08 shortens the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date rather than the contractual maturity date. The Funds have adopted and applied ASU2017-08 on a modified retrospective basis through a cumulative-effect adjustment as of July 1, 2018. The adoption of ASU2017-08 had no impact on beginning net assets, the current period results from operations, or any prior period information presented in the financial statements.
In August 2018, the FASB issued ASU2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the disclosure requirements for fair value measurement”. ASU2018-13 removes the disclosure requirements for the amounts of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management has reviewed ASU2018-13 and resolved to adopt immediately certain aspects of the ASU related to the removal of certain fair measurement disclosures.
On October 17, 2018, the SEC adopted changes to RegulationS-X to simplify the reporting of information by registered investment companies in financial statements. The amendments require presentation of the total, rather than the components, of distributable earnings on the Statements of Assets and Liabilities and also require presentation of the total, rather than the components, of distributions to shareholders, except for tax return of capital distributions, if any, on the Statements of Changes in Net Assets. The amendments also removed the requirement for parenthetical disclosure of undistributed net investment income on the Statements of Changes in Net Assets. These RegulationS-X amendments are reflected in the Funds’ financial statements for the year ended June 30, 2019. The distributions to shareholders in the June 30, 2018 Statements of Changes in Net Assets presented herein have not been reclassified to conform to the current year presentation.
2. | PRINCIPAL RISKS |
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to, among other things, changes in the market (market risk) or failure of the other party to a transaction to perform (counterparty risk). The Funds are also exposed to other risks such as, but not limited to, interest rate, foreign currency, credit and leverage risks.
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 Fund 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. Duration is used primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. Interest rate changes can be sudden and unpredictable, and Funds may lose money as a result of movements in interest rates. 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 increase in interest rates or an issuer’s deterioration or default. The Funds may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended. The values of equity and othernon-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 the Funds hold 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 NAV of the Funds’ shares.
The Funds are exposed to credit risk, which is the risk of losing money if the issuer or guarantor of a fixed income security is unable or unwilling, or is perceived (whether by market participants, rating 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 credit ratings.
To the extent the Funds directly invest in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, they will be 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 in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including economic growth, inflation, changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or the imposition of currency controls or other political developments in the United States or abroad. As a result, the Funds’ investments in foreign currency-denominated securities may reduce the returns of the Funds. The local emerging market currencies in which the Funds may be invested may experience substantially greater volatility against the U.S. dollar than the major convertible currencies in developed countries.
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The Funds are subject to elements of risk not typically associated with investments in the U.S., due to concentrated investments in foreign issuers located in a specific country or region. Such concentrations will subject the Funds to additional risks resulting from future political or economic conditions in such country or region and the possible imposition of adverse governmental laws or currency exchange restrictions affecting such country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies.
The market values of securities may decline due to general market conditions (market risk) which 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. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity-related investments generally have greater market price volatility than fixed income securities, although under certain market conditions fixed income securities may have comparable or greater price volatility. Credit ratings downgrades may also negatively affect securities held by the Funds. Even when markets perform well, there is no assurance that the investments held by the Funds will increase in value along with the broader market. In addition, market risk includes the risk that geopolitical events will disrupt the economy on a national or global level.
Certain of the Funds invest in ETFs. Shareholders will indirectly bear fees and expenses associated with the ETFs in which a Fund invests, in addition to a Fund’s direct fees and expenses. The cost of investing in a Fund, therefore, may be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. In addition, a Fund’s net asset value will be subject to fluctuations in the market values of the ETFs in which it invests. A Fund is also subject to the risks associated with the securities or other investments in which the ETFs invest, and the ability of a Fund to meet its investment objective will directly depend on the ability of the ETFs to meet their investment objectives. An index based ETF’s performance may not match that of the index it seeks to track.
The Funds are exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss to the Funds could exceed the value of the financial assets recorded in the Funds’ financial statements. Financial assets, which potentially expose the Funds to counterparty risk, consist principally of cash due from counterparties and investments. The Investment Adviser seeks to minimize the Funds’ counterparty risk by performing reviews of each counterparty and by minimizing concentration of counterparty risk by undertaking transactions with multiple customers and counterparties on recognized and reputable exchanges. Delivery of securities sold is only made once the Funds have received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
The Funds are exposed to risks associated with leverage. Leverage may cause the value of the Funds’ shares to be more volatile than if the Funds did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Funds’ portfolio securities. The Funds may engage in transactions or purchase instruments that give rise to forms of leverage. In addition, to the extent the Funds employ leverage, dividend and interest costs on such leverage may not be recovered by any appreciation of the securities purchased with the leverage proceeds and could exceed the Funds’ investment returns, resulting in greater losses.
The Funds may hold defaulted securities that may involve special considerations including bankruptcy proceedings, other regulatory and legal restrictions affecting the Funds’ ability to trade, and the availability of prices from independent pricing services or dealer quotations. Defaulted securities are often illiquid and may not be actively traded. Sale of securities in bankrupt companies at an acceptable price may be difficult and differences compared to the value of the securities used by the Funds could be material. A Fund may incur additional expenses to the extent it is required to seek recovery upon a portfolio security’s default in the payment of principal or interest. In any bankruptcy proceeding relating to a defaulted investment, a Fund may lose its entire investment or may be required to accept cash or securities with a value substantially less than its original investment.
Short sales may be used by certain Funds. When a Fund engages in a short sale on a security, it must borrow the security sold short and deliver it to the counterparty. The Fund will ordinarily have to pay a fee or premium to borrow particular securities and be obligated to repay the lender of the security any dividends or interest that accrue on the security during the period of the loan. The amount of any gain from a short sale will be decreased, and the amount of any loss increased, by the amount of the premium, dividends, interest or expenses a Fund pays in connection with the short sale. Short sales expose a Fund to the risk that it will be required to cover its short position at a time when the securities have appreciated in value, thus resulting in a loss to the Fund.
Investments in senior loans and repurchase agreements also involve special risks. Although typically secured, senior loans may not be backed by sufficient collateral to satisfy their issuers’ obligations in the event of bankruptcy or similar scenarios. Senior loans may also be illiquid. Similarly, repurchase agreements may result in losses if the collateral associated with such positions is insufficient in the event of a counterparty default or similar scenario. Repurchase agreement positions may also be illiquid.
The considerations and factors surrounding the settlement of certain purchases and sales made on a delayed-delivery basis are governed by Master Securities Forward Transaction Agreements (“Master Forward Agreements”) between the Funds and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.
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The counterparty risk associated with certain contracts may be reduced by master netting arrangements to the extent that if an event of default occurs, all amounts with the counterparty are terminated and settled on a net basis. The Funds’ overall exposure to counterparty risk with respect to transactions subject to master netting arrangements can change substantially within a short period, as it is affected by each transaction subject to the arrangement.
The Funds may invest in other investment companies, including investment companies advised by the Investment Adviser or its affiliates. Investing in other investment companies involves certain additional expenses and tax results that would not be present in a direct investment in such other investment companies. Each Fund’s NAV will fluctuate in response to changes in the NAVs of the other investment companies in which it invests. The extent to which the investment performance and risks associated with each Fund correlate to those of a particular investment company will depend upon the extent to which each Fund’s assets are allocated from time to time for investment in such investment company, which will vary. To the extent that a Fund invests a significant portion of its assets in another investment company, it will be particularly sensitive to the risks associated with that investment company.
3. | FINANCIAL DERIVATIVE INSTRUMENTS |
Disclosure about derivatives and hedging activities requires qualitative disclosure regarding objectives and strategies for using derivatives, quantitative disclosure about fair value amounts of gains and losses on derivatives, and disclosure about credit-risk-related contingent features in derivative agreements. The disclosure requirements distinguish between derivatives which are accounted for as “hedges”, and those that do not qualify for such accounting. Although the Funds at times use derivatives for hedging purposes, the Funds reflect derivatives at fair value and recognize changes in fair value through the Funds’ Statements of Operations, and such derivatives do not qualify for hedge accounting treatment.
Option Transactions. The Funds purchase put and call options on securities and indices for hedging purposes, risk management purposes or otherwise as part of their investment strategies. The risks associated with purchasing an option include the risk that the Funds pay a premium whether or not the option is exercised. Additionally, the Funds bear the risk of loss of premiums and changes in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.
The Funds may write (sell) put and call options on securities and indices to earn premiums, for hedging purposes, risk management purposes or otherwise as part of their investment strategies. When an option is written, the premium received is recorded as an asset with an equal liability that is subsequently marked to market to reflect the
market value of the option written. These liabilities, if any, are reflected as options written in the Funds’ Statements of Assets and Liabilities. Premiums received from writing options which expire unexercised are recorded on the expiration date as a realized gain. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option written is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a put option written is exercised, the premium reduces the cost basis of the security. In writing an option, the Funds bear the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of a written option could result in the Funds purchasing a security at a price different from its current market value.
There are several risks associated with option transactions on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objective. The Funds’ ability to use options successfully will depend on the Investment Adviser’s ability to predict pertinent market movements, which cannot be assured. As the writer of a covered call option, a Fund foregoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline.
Forward Foreign Currency Contracts. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. The Funds enter into forward foreign currency contracts for the purpose of hedging against foreign currency risk arising from the investment or anticipated investment in securities denominated in foreign currencies. The Funds also enter into these contracts for purposes of increasing exposure to a foreign currency or shifting exposure to foreign currency fluctuations from one country to another. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. All commitments are marked to market daily at the applicable exchange rates and any resulting unrealized appreciation or depreciation is recorded. Realized gains or losses are recorded at the time the forward contract matures or by delivery of the currency. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In addition, these contracts may involve market risk in excess of the unrealized appreciation (depreciation) reflected in the Funds’ Statements of Assets and Liabilities.
The following is a summary of the Funds’ derivatives categorized by risk exposure.
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The effect of derivatives on the Statements of Assets and Liabilities at June 30, 2019:
AllianzGI Income & Growth: | ||||
Location | Market Price | |||
Liability derivatives: | ||||
Options written, at value | $ | (760,940 | ) |
AllianzGI Technology: | ||||
Location | Market Price | |||
Asset derivatives: | ||||
Investments, at value (options purchased) | $ | 2,659,800 | ||
Liability derivatives: | ||||
Options written, at value | $ | (437,500 | ) |
The effect of derivatives on the Statements of Operations for the year ended June 30, 2019:
AllianzGI Global Natural Resources: | ||||||||||||
Location | Market Price | Foreign Exchange Contracts | Total | |||||||||
Net realized gain on: | ||||||||||||
Options written | $ | 1,475 | — | $ | 1,475 | |||||||
Forward foreign currency contracts | — | $ | 53 | 53 | ||||||||
Total net realized gain | $ | 1,475 | $ | 53 | $ | 1,528 | ||||||
AllianzGI Income & Growth: | ||||
Location | Market Price | |||
Net realized gain on: | ||||
Options written | $ | 3,813,150 | ||
Net change in unrealized appreciation/depreciation of: | ||||
Options written | $ | (825,515 | ) | |
AllianzGI Technology: | ||||
Location | Market Price | |||
Net realized loss on: | ||||
Investments (options purchased) | $ | (4,526,862 | ) | |
Options written | (2,123,063 | ) | ||
Total net realized loss | $ | (6,649,925 | ) | |
Net change in unrealized appreciation/depreciation of: | ||||
Investments (options purchased) | $ | (16,877,980 | ) | |
Options written | (5,861,193 | ) | ||
Total net change in unrealized | $ | (22,739,173 | ) |
The average volume (based on the open positions at eachmonth-end) of derivative activity during the year ended June 30, 2019:
Options Purchased | Options Written | Forward Foreign Currency Contracts(2) | ||||||||||||||
Contracts (1) | Contracts (1) | Purchased | Sold | |||||||||||||
AllianzGI Global Natural Resources | — | (16 | ) | — | — | † | ||||||||||
AllianzGI Income & Growth | — | (19,254 | ) | — | — | |||||||||||
AllianzGI Technology | 6,346 | (10,272 | ) | — | — |
† | Fund had derivative activity during the period but it did not have open positions at anymonth-end in the period. |
(1) | Number of contracts |
(2) | U.S. $ value on origination date |
4. | INVESTMENT ADVISER/ADMINISTRATOR/DISTRIBUTOR FEES/EXPENSES & DEFERRED COMPENSATION |
Investment Advisory Fee. AllianzGI U.S. serves as the investment adviser to the Funds, pursuant to an investment advisory contract. AllianzGI U.S. receives a monthly fee (the “Investment Advisory Fee”) from each Fund at an annual rate based on the average daily net assets of each Fund.
Administration Fee. AllianzGI U.S. provides administrative services to the Funds and also bears the cost of most third-party administrative services required by the Funds, and in return it receives from each share class of each Fund a monthly administration fee based on each share class’ average daily net assets (the “Administration Fee”).
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June 30, 2019
The Investment Advisory Fee and Administration Fee for all classes are charged at an annual rate as indicated in the following table:
All Classes | Class A, C, and R | Class P | Institutional Class | Class R6 | Administrative Class | |||||||||||||||||||||||||||||||||||||||||||
Investment Advisory Fee | Effective Advisory Fee | Administ- ration Fee | Effective Administ- ration Fee | Administ- ration Fee | Effective Administ- ration Fee | Administ- ration Fee | Effective Administ- ration Fee | Administ- ration Fee | Effective Administ- ration Fee | Administ- ration Fee | Effective Administ- ration Fee | |||||||||||||||||||||||||||||||||||||
AllianzGI Emerging Markets Opportunities(1) | 0.85 | % | 0.65 | %(4) | 0.50 | % | 0.34 | %(5) | 0.50 | % | 0.34 | %(5) | 0.40 | % | 0.24 | %(5) | 0.35 | % | 0.19 | %(5) | N/A | N/A | ||||||||||||||||||||||||||
AllianzGI Focused Growth(3) | 0.45 | 0.35 | (6) | 0.40 | † | (7) | 0.40 | 0.40 | 0.30 | 0.30 | 0.25 | 0.25 | 0.30 | % | 0.30 | % | ||||||||||||||||||||||||||||||||
AllianzGI Global Natural Resources(2) | 0.70 | 0.70 | 0.45 | 0.45 | 0.45 | 0.45 | 0.35 | 0.35 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
AllianzGI GlobalSmall-Cap(2) | 0.90 | �� | 0.90 | 0.45 | 0.45 | 0.45 | 0.45 | 0.35 | 0.35 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||
AllianzGI Health Sciences(3) | 0.80 | 0.80 | 0.40 | 0.40 | N/A | N/A | 0.30 | 0.30 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
AllianzGI Income & Growth(3) | 0.65 | 0.64 | (9) | 0.40 | 0.37 | 0.40 | 0.37 | 0.30 | 0.27 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||
AllianzGIMid-Cap(3) | 0.47 | 0.47 | 0.40 | 0.40 | 0.40 | 0.40 | 0.30 | 0.30 | N/A | N/A | 0.30 | 0.30 | ||||||||||||||||||||||||||||||||||||
AllianzGI NFJ Dividend Value(3) | 0.45 | 0.35 | (10) | 0.40 | 0.39 | 0.40 | 0.39 | 0.30 | 0.29 | 0.25 | 0.24 | 0.30 | 0.29 | |||||||||||||||||||||||||||||||||||
AllianzGI NFJ International Value(1) | 0.60 | 0.55 | (11) | 0.50 | 0.47 | (12) | 0.50 | 0.47 | (12) | 0.40 | 0.37 | (12) | 0.35 | 0.32 | (12) | 0.40 | 0.37 | (12) | ||||||||||||||||||||||||||||||
AllianzGI NFJLarge-Cap Value(3) | 0.45 | 0.45 | 0.40 | 0.40 | 0.40 | 0.40 | 0.30 | 0.30 | N/A | N/A | 0.30 | 0.30 | ||||||||||||||||||||||||||||||||||||
AllianzGI NFJMid-Cap Value(3) | 0.55 | 0.55 | 0.40 | 0.17 | (13) | 0.40 | 0.17 | (13) | 0.30 | 0.07 | (13) | 0.25 | 0.02 | (13) | 0.30 | 0.07 | (13) | |||||||||||||||||||||||||||||||
AllianzGI NFJSmall-Cap Value(3) | 0.60 | 0.54 | (14) | 0.40 | 0.37 | (15) | 0.40 | 0.37 | (15) | 0.30 | 0.27 | (15) | 0.25 | 0.22 | (15) | 0.30 | 0.27 | (15) | ||||||||||||||||||||||||||||||
AllianzGISmall-Cap(3) | 0.60 | 0.60 | (16) | 0.40 | 0.31 | (16) | 0.40 | 0.31 | (16) | 0.30 | 0.21 | (16) | 0.25 | 0.15 | (16) | N/A | N/A | |||||||||||||||||||||||||||||||
AllianzGI Technology(3) | 0.90 | 0.85 | (8) | 0.40 | 0.39 | 0.40 | 0.39 | 0.30 | 0.29 | N/A | N/A | 0.30 | 0.29 |
(1) | The total Administration Fee rate for each class of shares shall be reduced according to the following schedule, each based on such Fund’s aggregate average daily net assets: by 0.025% per annum on assets in excess of $250 million, by an additional 0.025% per annum on assets in excess of $500 million, by an additional 0.025% per annum on assets in excess of $1 billion, by an additional 0.025% per annum on assets in excess of $2.5 billion, by an additional 0.025% per annum on assets in excess of $5 billion and by an additional 0.025% per annum on assets in excess of $7.5 billion. To the extent that any such reduction in the fee rate applies, the dollar amount of the fee reduction with respect to each share class is calculated and applied on a pro rata basis by reference to the percentage of the Fund’s average daily net assets attributable to that class. |
(2) | The total Administration Fee rate for each class of shares shall be reduced according to the following schedule, each based on such Fund’s aggregate average daily net assets: by 0.025% per annum on assets in excess of $500 million, by an additional 0.025% per annum on assets in excess of $1 billion, by an additional 0.025% per annum on assets in excess of $2.5 billion, by an additional 0.025% per annum on assets in excess of $5 billion and by an additional 0.025% per annum on assets in excess of $7.5 billion. To the extent that any such reduction in the fee rate applies, the dollar amount of the fee reduction with respect to each share class is calculated and applied on a pro rata basis by reference to the percentage of the Fund’s average daily net assets attributable to that class. |
(3) | The total Administration Fee rate for each class of shares shall be reduced according to the following schedule, each based on such Fund’s aggregate average daily net assets: by 0.025% per annum on assets in excess of $1 billion, by an additional 0.025% per annum on assets in excess of $2.5 billion, by an additional 0.025% per annum on assets in excess of $5 billion and by an additional 0.025% per annum on assets in excess of $7.5 billion. To the extent that any such reduction in the fee rate applies, the dollar amount of the fee reduction with respect to each share class is calculated and applied on a pro rata basis by reference to the percentage of the Fund’s average daily net assets attributable to that class. |
(4) | The Adviser has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of its Investment Advisory Fee currently in place, which reduces the 0.85% contractual fee rate by 0.20% to 0.65%. An identical waiver arrangement has been in effect since before the beginning of the Fund’s most recent fiscal year. |
(5) | The Administrator has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of its Administration Fees, which reduces the contractual fee rate by 0.15%. This waiver has been in effect since before the beginning of the Fund’s most recent fiscal year. |
(6) | The Adviser has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of its Investment Advisory Fee currently in place, which reduces the 0.45% contractual fee rate by 0.10% to 0.35%. |
(7) | The Administrator has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of its Administration Fees for Class A and Class T shares currently in place, which reduces the contractual fee rate by 0.02%. |
(8) | The Adviser has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of the Investment Advisory Fee, which reduces the 0.90% contractual fee rate by 0.01% on net assets in excess of $2 billion, by an additional 0.015% on net assets in excess of $3 billion and by an additional 0.025% on net assets in excess of $5 billion, each based on the Fund’s average daily net assets. An identical waiver arrangement has been in effect since before the beginning of the Fund’s most recent fiscal year. The Adviser had contractually agreed to observe, through October 31, 2018, an irrevocable waiver of a portion of its Investment Advisory Fee currently in place, which reduced the 0.90% contractual fee rate by 0.15% to 0.75%. |
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(9) | The Adviser has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of the Investment Advisory Fee, which reduces the 0.65% contractual fee rate by 0.01% on net assets in excess of $2 billion, by an additional 0.015% on net assets in excess of $3 billion and by an additional 0.025% on net assets in excess of $5 billion, each based on the Fund’s average daily net assets. An identical waiver arrangement has been in effect since before the beginning of the Fund’s most recent fiscal year. |
(10) | The Adviser had contractually agreed to observe, through October 31, 2018, an irrevocable waiver of a portion of its Investment Advisory Fee, which reduced the 0.45% contractual fee rate by 0.15% to 0.30%. Effective November 1, 2018 through October 31, 2019, the Adviser has contractually agreed to observe an irrevocable waiver of a portion of it’s Investment Advisory fee, which reduces the 0.45% contractual fee rate by 0.075% to 0.375%, and by an additional 0.025% on net assets in excess of $7.5 billion, and by an additional 0.025% on net assets in excess of $10 billion, each based on the Fund’s average daily net assets. |
(11) | The Adviser has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of the Investment Advisory Fee, which reduces the 0.60% contractual fee rate by 0.05% to 0.55%, and an additional 0.01% on net assets in excess of $4 billion, by an additional 0.015% on net assets in excess of $5 billion and by an additional 0.025% on net assets in excess of $7.5 billion, each based on the Fund’s average daily net assets. An identical waiver arrangement has been in effect since before the beginning of the Fund’s most recent fiscal year. |
(12) | The Administrator has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of its Administration Fees, which reduces the contractual fee rate by 0.025%. This waiver has been in effect since before the beginning of the Fund’s most recent fiscal year. |
(13) | The Administrator has contractually agreed to observe through September 30, 2019, an irrevocable waiver of a portion of its Administration Fees for all classes, which reduces the contractual fee rate by 0.22%. An identical waiver arrangement has been in effect since before the beginning of the Fund’s most recent fiscal year. |
(14) | Effective November 1, 2018, the Adviser has contractually agreed to observe, through October 31, 2019, an irrevocable waiver of a portion of the Investment Advisory Fee, which reduces the 0.60% contractual fee rate by 0.10% to 0.50%, and then by an additional 0.025% on net assets in excess of $3 billion, by an additional 0.025% on net assets in excess of $4 billion and by an additional 0.025% on net assets in excess of $5 billion, each based on the Fund’s average daily net assets. From November 1, 2017 through October 31, 2018, the previously mentioned breakpoint was in place without the 0.10% irrevocable waiver of a portion of the Investment Advisory Fee. |
(15) | The Administrator had contractually agreed to observe, through October 31, 2018, an irrevocable waiver of a portion of its Administration Fees which reduced the contractual fee rate by 0.05%. |
(16) | Effective August 1, 2018, the Investment Advisory Fee was reduced by 0.05% from 0.65% to 0.60%. The Administrator has contractually agreed to observe, through August 31, 2020, an irrevocable waiver of a portion of its Administration Fees for all classes, which reduces the contractual fee rate by 0.10%. |
† | The effective Administration Fee rate for Class A is 0.38%; for Class C and Class R is 0.40%, respectively. |
Distribution and Servicing Fees. Allianz Global Investors Distributors LLC (the “Distributor”), an affiliate of AllianzGI U.S., serves as the distributor of the Trust’s shares. The Funds are permitted to reimburse the Distributor on a quarterly basis, out of the Administrative Class assets of each Fund offering Administrative Class shares, in an amount up to 0.25% on an annual basis of the average daily net assets of that class, for payments made to financial intermediaries that provide services in connection with the distribution of shares or administration of plans or programs that use Fund shares as their funding medium. Unreimbursed costs may be carried forward for reimbursement for up to twelve months beyond the date in which they are incurred, subject always to the limit that not more than 0.25% of the average daily net assets attributable to the Administrative Class may be expensed.
Pursuant to the Distribution and Servicing Plans adopted by the A, C and R classes, the Distributor receives (i) in connection with the distribution of C and R class shares of the Trust, certain distribution fees from the Trust, and (ii) in connection with personal services rendered to A, C and R class shareholders of the Trust and the maintenance of shareholder accounts, certain servicing fees from the Trust.
The Funds paid the Distributor distribution and/or servicing fees at an effective rate as set forth below (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Allowable Rate | ||||||||
Distribution Fee | Servicing Fee | |||||||
Class A | ||||||||
All Funds | — | 0.25 | % | |||||
Class C | ||||||||
All Funds | 0.75 | % | 0.25 | |||||
Class R | ||||||||
All Funds | 0.25 | 0.25 |
The Distributor also receives the proceeds of the initial sales charges paid by the shareholders upon the purchase of Class A shares and contingent deferred sales charges (“CDSC”) paid by the shareholders upon certain redemptions of Class A and C shares. For the year ended June 30, 2019, the Distributor received $1,935,759, representing commissions (sales charges) and CDSC from the Funds.
Expenses. The Trust is responsible for the following expenses: (i) salaries and other compensation of any of the Trust’s executive officers and employees who are not officers, directors, stockholders or employees of the Investment Adviser or its subsidiaries or affiliates; (ii) taxes and governmental fees; (iii) brokerage fees and commissions and other portfolio transaction expenses; (iv) the costs of borrowing money, including interest expense and bank overdraft charges; (v) fees and expenses of the Trustees who are not “interested persons” of the Investment Adviser or the Trust, and any counsel or other experts retained exclusively for their benefit; (vi) extraordinary expenses, including costs of litigation and indemnification expenses; (vii) organization expenses, if any and (viii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class shares and may include certain other expenses as permitted by the Trust’s Amended and Restated Multi-Class Plan adopted pursuant to Rule18f-3 under the Investment Company Act of 1940 and subject to review and approval by the Trustees. The Funds may invest in other investment companies, including investment companies advised orsub-advised by the Investment Adviser or its affiliates. Investing in other investment companies involves certain additional expenses and tax results that would not be present in a direct investment in such other investment companies. The ratio of expenses to average net assets per share class, as disclosed in the Financial Highlights, may differ from the estimated annual fund operating expenses per share class as disclosed in the Prospectus for the reasons set forth above.
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Notes to Financial Statements (cont’d)
June 30, 2019
Deferred Compensation. The Trustees do not currently receive any pension or retirement benefits from the Trust. In calendar year 2018 and certain prior periods, the Trust maintained a deferred compensation plan pursuant to which each Independent Trustee had the opportunity to elect not to receive all or a portion of his or her fees from the Trust on a current basis, but instead to receive in a subsequent period chosen by the Trustee an amount equal to the value of such compensation if such compensation had been invested in one or more series of Allianz Funds Multi-Strategy Trust or the Trust selected by the Trustees from and after the normal payment dates for such compensation. The deferred compensation program was closed to new deferrals effective January 1, 2019, and all Trustee fees earned with respect to service in calendar year 2019 and beyond have been or will be paid in cash, on a current basis, unless the Board of Trustees of the Allianz-Sponsored Funds reopens the program to new deferrals. Allianz Funds Multi-Strategy Trust and the Trust still have obligations with respect to Trustee fees deferred in 2018 and in prior periods, and will continue to have such obligations until all deferred Trustee fees are paid out pursuant to the terms of the deferred compensation plan.
5. | INVESTMENTS IN SECURITIES |
For the year ended June 30, 2019, purchases and sales of investments, other than short-term securities were:
Purchases | Sales | |||||||
AllianzGI Emerging Markets Opportunities | $ | 386,081,260 | $ | 350,420,218 | ||||
AllianzGI Focused Growth | 519,734,377 | 657,392,743 | ||||||
AllianzGI Global Natural Resources | 11,626,640 | 17,470,780 | ||||||
AllianzGI GlobalSmall-Cap | 131,623,185 | 178,015,184 | ||||||
AllianzGI Health Sciences | 153,409,479 | 169,418,721 | ||||||
AllianzGI Income & Growth | 3,152,698,411 | 2,604,609,596 | ||||||
AllianzGIMid-Cap | 177,810,966 | 211,689,455 | ||||||
AllianzGI NFJ Dividend Value | 854,156,172 | 1,517,712,277 | ||||||
AllianzGI NFJ International Value | 106,549,413 | 205,893,351 | ||||||
AllianzGI NFJLarge-Cap Value | 235,920,832 | 257,413,439 | ||||||
AllianzGI NFJMid-Cap Value | 1,060,324,237 | 1,026,437,357 | ||||||
AllianzGI NFJSmall-Cap Value | 733,253,260 | 1,725,064,954 | ||||||
AllianzGISmall-Cap | 91,328,542 | 74,969,098 | ||||||
AllianzGI Technology* | 1,610,653,193 | 1,754,591,856 |
* | Securities sold short of $1,237,366; covers on securities sold short of $1,267,514. |
6. | INCOME TAX INFORMATION |
The tax character of dividends and distributions paid by the Funds was:
Period or Year ended June 30, 2019 | Period or Year ended June 30, 2018 | |||||||||||||||||||||||||||
Ordinary Income(1) | 15% Long-term Capital Gain | 25% Long-term Capital Gain | Ordinary Income(1) | 15% Long-term Capital Gain | 25% Long-term Capital Gain | Return of Capital | ||||||||||||||||||||||
AllianzGI Emerging Markets Opportunities | $ | 8,214,183 | — | — | $ | 3,886,963 | — | — | — | |||||||||||||||||||
AllianzGI Focused Growth | — | $ | 117,884,601 | — | 392,499 | $ | 15,598,567 | — | — | |||||||||||||||||||
AllianzGI Global Natural Resources | 279,284 | — | — | 56,108 | — | — | — | |||||||||||||||||||||
AllianzGI GlobalSmall-Cap | 3,913,582 | 22,639,586 | $ | 11,503 | 4,235,167 | 11,864,121 | — | — | ||||||||||||||||||||
AllianzGI Health Sciences | 2,479,547 | 17,793,811 | — | — | — | — | — | |||||||||||||||||||||
AllianzGI Income & Growth | 334,655,872 | 5,082,690 | 30,000 | 285,477,976 | — | — | — | |||||||||||||||||||||
AllianzGIMid-Cap | 6,580,701 | 29,491,252 | — | 9,591,486 | 21,002,144 | — | — | |||||||||||||||||||||
AllianzGI NFJ Dividend Value | 53,260,507 | 280,436,188 | 1,361 | 40,466,152 | 481,271,285 | — | — | |||||||||||||||||||||
AllianzGI NFJ International Value | 3,353,472 | — | — | 5,733,709 | — | — | $ | 148,994 | ||||||||||||||||||||
AllianzGI NFJLarge-Cap Value | 5,431,742 | 660,709 | — | 5,857,321 | — | — | — | |||||||||||||||||||||
AllianzGI NFJMid-Cap Value | 14,423,689 | 5,789,993 | — | 35,710,900 | 58,203,575 | $ | 85,617 | — | ||||||||||||||||||||
AllianzGI NFJSmall-Cap Value | 52,935,930 | 269,347,930 | 120,893 | 51,068,905 | 393,814,909 | — | — | |||||||||||||||||||||
AllianzGISmall-Cap | 2,958,426 | 4,395,852 | 362 | 2,809,776 | 7,945,539 | — | — | |||||||||||||||||||||
AllianzGI Technology | 42,412,898 | 224,014,360 | — | 65,005,991 | 162,326,956 | — | — |
(1) | Includes short-term capital gains, if any. |
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At June 30, 2019, the components of distributable earnings were:
Undistributed Ordinary Income | Undistributed 15% Long-term Capital Gain | Undistributed 25% Long-term Capital Gain | Capital Loss Carryforwards(2) | Late Year Ordinary Loss(3) | ||||||||||||||||||||||||
Post-October Capital Loss(4) | ||||||||||||||||||||||||||||
Short-Term | Long-Term | |||||||||||||||||||||||||||
AllianzGI Emerging Markets Opportunities | $ | 6,872,475 | — | — | $ | 19,342,348 | — | $ | 24,547,612 | $ | 72,938 | |||||||||||||||||
AllianzGI Focused Growth | — | $ | 94,821,337 | — | — | $ | 555,099 | 38,640,246 | — | |||||||||||||||||||
AllianzGI Global Natural Resources | 231,698 | — | — | 9,890,473 | 3,735 | 870,633 | (342,309 | ) | ||||||||||||||||||||
AllianzGI GlobalSmall-Cap | — | 7,489,273 | — | — | — | 5,500,425 | — | |||||||||||||||||||||
AllianzGI Health Sciences | 1,556,069 | 4,930,900 | — | — | — | — | — | |||||||||||||||||||||
AllianzGI Income & Growth | 6,963,707 | 450,696 | — | — | — | — | — | |||||||||||||||||||||
AllianzGIMid-Cap | — | 14,995,540 | — | — | 983,679 | 7,068,913 | — | |||||||||||||||||||||
AllianzGI NFJ Dividend Value | — | 75,088,600 | — | — | — | 28,405,320 | — | |||||||||||||||||||||
AllianzGI NFJ International Value | 572,958 | — | — | 447,194,042 | — | — | — | |||||||||||||||||||||
AllianzGI NFJLarge-Cap Value | 189,350 | — | — | — | — | 9,274,093 | (2,528,293 | ) | ||||||||||||||||||||
AllianzGI NFJMid-Cap Value | 6,519,374 | 38,488,272 | — | — | — | 3,581,573 | — | |||||||||||||||||||||
AllianzGI NFJSmall-Cap Value | — | 23,232,265 | — | — | — | 66,745,177 | (45,055,765 | ) | ||||||||||||||||||||
AllianzGISmall-Cap | — | — | — | — | — | 3,624,785 | (1,849,971 | ) | ||||||||||||||||||||
AllianzGI Technology | — | 166,804,424 | — | — | 7,055,732 | 21,352,310 | — |
(2) | Capital loss carryforwards available as a reduction, to the extent provided in the regulations, of any future net realized gains. To the extent that these losses are used to offset future realized capital gains, such gains will not be disbursed. |
(3) | Certain ordinary losses realized during the period November 1, 2018 through June 30, 2019, and/or other ordinary losses realized during the period January 1, 2019 through June 30, 2019, which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
(4) | Capital losses realized during the period November 1, 2018 through June 30, 2019 which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. Post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term capital losses.
At June 30, 2019, capital loss carryforward amounts were:
Short-Term | Long-Term | |||||||
AllianzGI Emerging Markets Opportunities | $ | 19,342,348 | — | |||||
AllianzGI Global Natural Resources | 6,793,822 | $ | 3,096,651 | |||||
AllianzGI NFJ International Value | 260,398,219 | 186,795,823 |
For the year ended June 30, 2019, the Funds utilized the following amounts of capital loss carryforwards:
Short-Term losses utilized | Long-Term losses utilized | |||||||
AllianzGI Global Natural Resources | — | $ | 107,601 | |||||
AllianzGI NFJ International Value | — | 9,387,790 |
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Notes to Financial Statements (cont’d)
June 30, 2019
For the year ended June 30, 2019, permanent“book-tax” adjustments were:
Undistributed (Dividends in Excess of) Net Investment Income | Accumulated Net Realized Gain (Loss) | Paid-in-Capital | Appreciation/ Depreciation | |||||||||||||
AllianzGI Emerging Markets Opportunities(b)(f)(k) | $ | (589,902 | ) | $ | 593,788 | $ | (3,886 | ) | — | |||||||
AllianzGI Focused Growth(d) | 976,360 | — | (976,360 | ) | — | |||||||||||
AllianzGI Global Natural Resources(f) | (5,891 | ) | 5,891 | — | — | |||||||||||
AllianzGI GlobalSmall-Cap(b)(c)(d)(f)(g) | 258,743 | (178,944 | ) | (76,197 | ) | $ | (3,602 | ) | ||||||||
AllianzGI Health Sciences(b)(f) | 474,031 | (474,031 | ) | — | — | |||||||||||
AllianzGI Income & Growth(g)(i)(j) | 5,890,509 | (5,890,509 | ) | — | — | |||||||||||
AllianzGIMid-Cap(d)(f) | 2,839,356 | 58,408 | (2,897,764 | ) | — | |||||||||||
AllianzGI NFJ Dividend Value(a)(c)(f)(g) | (1,775,082 | ) | 1,775,082 | — | — | |||||||||||
AllianzGI NFJ International Value(b)(f) | (23,166 | ) | 23,166 | — | — | |||||||||||
AllianzGI NFJLarge-Cap Value(a)(c)(g) | (42,908 | ) | 42,908 | — | — | |||||||||||
AllianzGI NFJMid-Cap Value(c)(e)(f)(g)(h) | (1,385,719 | ) | 1,616,266 | 41,836 | (272,383 | ) | ||||||||||
AllianzGI NFJSmall-Cap Value(e)(f)(g)(h)(m) | 8,406,935 | (39,235,988 | ) | 24,669,298 | 6,159,755 | |||||||||||
AllianzGISmall-Cap(a)(b)(d)(g)(h)(l) | (1,277 | ) | 214,352 | (191,918 | ) | (21,157 | ) | |||||||||
AllianzGI Technology(d)(f) | 13,733,080 | 125,943 | (13,859,023 | ) | — |
These permanent“book-tax” differences were primarily attributable to:
(a) | Reclassification of distributions. |
(b) | Reclassification of gains from securities classified as Passive Foreign Investment Companies (“PFICs”) for tax purposes. |
(c) | Reclassification from sales of securities with return of capital. |
(d) | Net operating losses. |
(e) | Non-deductible costs due to sales of partnerships. |
(f) | Reclassification of gains and losses from foreign currency transactions. |
(g) | Reclassifications related to investments in Real Estate Investment Trusts (REITs). |
(h) | Reclassifications related to investments in partnerships. |
(i) | Section 305 sales adjustment. |
(j) | Reclassification of contingent debt. |
(k) | Non-deductible excise tax. |
(l) | Taxable overdistributions. |
(m) | Redemptions treated as distributions. |
Net investment income, net realized gains or losses and net assets were not affected by these adjustments.
At June 30, 2019, the aggregate cost basis and the net unrealized appreciation (depreciation) of investments in securities and other financialinstruments for federal income tax purposes were:
Federal Tax Cost Basis(5) | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
AllianzGI Emerging Markets Opportunities | $ | 346,994,655 | $ | 38,413,338 | $ | 8,846,809 | $ | 29,566,529 | ||||||||
AllianzGI Focused Growth | 647,520,041 | 407,511,977 | 9,731,190 | 397,780,787 | ||||||||||||
AllianzGI Global Natural Resources | 11,815,648 | 700,320 | 378,126 | 322,194 | ||||||||||||
AllianzGI GlobalSmall-Cap | 112,507,967 | 23,154,749 | 3,960,984 | 19,193,765 | ||||||||||||
AllianzGI Health Sciences | 135,079,542 | 25,459,460 | 4,501,378 | 20,958,082 | ||||||||||||
AllianzGI Income & Growth | 4,988,367,464 | 100,147,730 | 562,079,681 | (461,931,951 | ) | |||||||||||
AllianzGIMid-Cap | 241,801,401 | 73,888,096 | 2,632,216 | 71,255,880 | ||||||||||||
AllianzGI NFJ Dividend Value | 1,188,187,678 | 201,475,608 | 32,948,173 | 168,527,435 | ||||||||||||
AllianzGI NFJ International Value | 174,352,595 | 15,080,614 | 10,010,614 | 5,070,000 | ||||||||||||
AllianzGI NFJLarge-Cap Value | 327,075,360 | 27,085,827 | 9,778,770 | 17,307,057 | ||||||||||||
AllianzGI NFJMid-Cap Value | 1,168,449,594 | 182,816,714 | 25,144,378 | 157,672,336 | ||||||||||||
AllianzGI NFJSmall-Cap Value | 941,030,347 | 182,343,932 | 52,039,740 | 130,304,192 | ||||||||||||
AllianzGISmall-Cap | 95,311,457 | 18,842,110 | 3,088,883 | 15,753,227 | ||||||||||||
AllianzGI Technology | 1,050,112,819 | 583,918,739 | 8,831,605 | 575,087,134 |
(5) | Differences, if any, between book and tax cost basis are primarily attributable to wash sale loss deferrals, PFICmark-to-market, differing treatment of bond premium amortization, basis adjustments from investments in partnerships,mark-to-market adjustments on section 1256 spot contracts, and Section 305 adjustments. |
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Notes to Financial Statements (cont’d)
June 30, 2019
7. | SHARES OF BENEFICIAL INTEREST |
The Trust may issue an unlimited number of shares of beneficial interest with $0.0001 par value. Changes in shares of beneficial interest were as follows:
AllianzGI Emerging Markets Opportunities | AllianzGI Focused Growth | |||||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||||||||||||||
Class A | 268,619 | $ | 7,217,505 | 697,928 | $ | 20,810,440 | 3,957,145 | $ | 230,547,285 | 845,049 | $ | 45,026,886 | ||||||||||||||||||||||||
Class C | 16,147 | 410,475 | 33,859 | 1,000,458 | 237,512 | 7,807,792 | 199,107 | 7,318,588 | ||||||||||||||||||||||||||||
Class R | — | — | — | — | 130,920 | 5,187,343 | 133,299 | 5,479,120 | ||||||||||||||||||||||||||||
Class P | 352,083 | 9,091,300 | 563,064 | 16,657,768 | 684,624 | 27,975,772 | 839,524 | 34,751,624 | ||||||||||||||||||||||||||||
Institutional Class | 5,354,528 | 145,969,084 | 5,829,537 | 183,882,754 | 589,652 | 28,467,542 | 897,756 | 43,898,753 | ||||||||||||||||||||||||||||
Class R6 | 244,198 | 6,497,525 | 920,330 | 29,036,041 | 648,134 | 30,278,729 | 1,562,011 | 79,373,546 | ||||||||||||||||||||||||||||
Administrative Class | — | — | — | — | 38,603 | 1,971,024 | 17,863 | 852,078 | ||||||||||||||||||||||||||||
Issued in reinvestment of dividends and distributions: |
| |||||||||||||||||||||||||||||||||||
Class A | 37,329 | 916,062 | 41,566 | 1,241,997 | 1,264,993 | 54,065,784 | 86,993 | 4,626,289 | ||||||||||||||||||||||||||||
Class C | 592 | 14,456 | 786 | 23,182 | 266,353 | 7,377,992 | 116,094 | 4,297,789 | ||||||||||||||||||||||||||||
Class R | — | — | — | — | 83,352 | 2,609,751 | 8,375 | 341,603 | ||||||||||||||||||||||||||||
Class P | 20,942 | 501,782 | 13,849 | 405,788 | 354,870 | 11,338,112 | 32,582 | 1,344,967 | ||||||||||||||||||||||||||||
Institutional Class | 232,119 | 5,693,881 | 60,550 | 1,817,696 | 416,583 | 16,292,546 | 63,927 | 3,135,604 | ||||||||||||||||||||||||||||
Class R6 | 24,240 | 591,467 | 498 | 14,883 | 338,307 | 13,248,091 | 12,985 | 637,345 | ||||||||||||||||||||||||||||
Administrative Class | — | — | — | — | 15,646 | 568,421 | 1,540 | 71,074 | ||||||||||||||||||||||||||||
Cost of shares redeemed: |
| |||||||||||||||||||||||||||||||||||
Class A | (2,312,650 | ) | (64,223,641 | ) | (2,748,849 | ) | (80,949,799 | ) | (1,811,609 | ) | (94,018,724 | ) | (1,530,183 | ) | (81,276,063 | ) | ||||||||||||||||||||
Class C | (168,881 | ) | (4,468,000 | ) | (89,122 | ) | (2,659,097 | ) | (5,022,966 | ) | (204,819,789 | ) | (1,026,181 | ) | (38,161,076 | ) | ||||||||||||||||||||
Class R | — | — | — | — | (183,497 | ) | (7,438,619 | ) | (169,477 | ) | (6,978,684 | ) | ||||||||||||||||||||||||
Class P | (666,508 | ) | (17,465,149 | ) | (335,061 | ) | (10,020,087 | ) | (1,230,579 | ) | (47,289,017 | ) | (614,723 | ) | (25,121,226 | ) | ||||||||||||||||||||
Institutional Class | (2,051,506 | ) | (54,282,563 | ) | (1,722,594 | ) | (53,937,449 | ) | (1,064,847 | ) | (51,812,375 | ) | (2,122,703 | ) | (105,917,209 | ) | ||||||||||||||||||||
Class R6 | (241,071 | ) | (6,409,258 | ) | (97,151 | ) | (3,006,277 | ) | (409,798 | ) | (19,780,076 | ) | (250,018 | ) | (12,412,457 | ) | ||||||||||||||||||||
Administrative Class | — | — | — | — | (22,413 | ) | (1,102,078 | ) | (43,814 | ) | (2,068,060 | ) | ||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 1,110,181 | $ | 30,054,926 | 3,169,190 | $ | 104,318,298 | (719,015 | ) | $ | 11,475,506 | (939,994 | ) | $ | (40,779,509 | ) |
– | May reflect actual amounts rounding to less than $1 or less than 1 share. |
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AllianzGI Global Natural Resources | AllianzGI GlobalSmall-Cap | AllianzGI Health Sciences | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
75,279 | $ | 1,112,678 | 105,939 | $ | 1,575,623 | 182,657 | $ | 8,479,807 | 83,184 | $ | 4,244,889 | 246,715 | $ | 8,399,331 | 86,357 | $ | 2,801,477 | |||||||||||||||||||||||||||||||||
25,966 | 389,023 | 9,008 | 125,928 | 13,645 | 500,947 | 33,805 | 1,531,603 | 28,328 | 702,965 | 10,459 | 271,090 | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
26,683 | 381,175 | 110,809 | 1,737,713 | 91,215 | 3,811,875 | 72,253 | 3,943,050 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
102,865 | 1,521,155 | 226,220 | 3,493,152 | 205,859 | 9,810,581 | 162,556 | 8,908,540 | 95,913 | 3,042,298 | 34,004 | 1,128,578 | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
6,938 | 85,340 | 1,014 | 15,872 | 254,078 | 8,310,892 | 90,251 | 4,491,798 | 674,933 | 18,634,889 | — | — | |||||||||||||||||||||||||||||||||||||||
1,122 | 12,975 | — | 2 | 69,797 | 1,927,792 | 40,033 | 1,756,267 | 29,367 | 623,175 | — | — | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
3,357 | 41,893 | — | — | 41,648 | 1,469,340 | 17,947 | 947,048 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
9,214 | 116,191 | 2,086 | 33,503 | 369,475 | 13,171,798 | 145,643 | 7,743,818 | 11,595 | 324,420 | — | — | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
(187,050 | ) | (2,646,485 | ) | (425,769 | ) | (6,543,832 | ) | (351,706 | ) | (13,990,314 | ) | (252,928 | ) | (12,931,724 | ) | (605,927 | ) | (19,209,271 | ) | (614,264 | ) | (19,853,094 | ) | |||||||||||||||||||||||||||
(81,341 | ) | (1,115,775 | ) | (91,805 | ) | (1,284,764 | ) | (296,247 | ) | (11,728,861 | ) | (101,780 | ) | (4,592,282 | ) | (201,451 | ) | (5,567,805 | ) | (108,952 | ) | (2,809,024 | ) | |||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
(138,349 | ) | (1,878,798 | ) | (101,951 | ) | (1,533,966 | ) | (192,848 | ) | (7,992,579 | ) | (216,159 | ) | (11,519,088 | ) | — | — | — | — | |||||||||||||||||||||||||||||||
(275,795 | ) | (4,074,569 | ) | (434,005 | ) | (6,699,510 | ) | (787,779 | ) | (34,330,501 | ) | (779,135 | ) | (41,888,099 | ) | (61,267 | ) | (2,002,588 | ) | (65,031 | ) | (2,129,884 | ) | |||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| (431,111 | ) | $ | (6,055,197 | ) | (598,454 | ) | $ | (9,080,279 | ) | (400,206 | ) | $ | (20,559,223 | ) | (704,330 | ) | $ | (37,364,180 | ) | 218,206 | $ | 4,947,414 | (657,427 | ) | $ | (20,590,857 | ) |
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Notes to Financial Statements (cont’d)
June 30, 2019
AllianzGI Income & Growth | AllianzGIMid-Cap | |||||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||||||||||||||
Class A | 41,382,233 | $ | 454,899,809 | 33,772,645 | $ | 386,348,881 | 34,421,548 | $ | 134,256,480 | 2,593,888 | $ | 10,045,894 | ||||||||||||||||||||||||
Class C | 34,217,239 | 346,930,172 | 20,620,016 | 218,600,150 | 650,165 | 1,783,093 | 424,664 | 1,380,308 | ||||||||||||||||||||||||||||
Class R | 224,610 | 2,466,861 | 171,240 | 1,953,034 | 121,412 | 433,020 | 297,665 | 1,127,022 | ||||||||||||||||||||||||||||
Class P | 47,385,649 | 533,269,666 | 32,638,485 | 382,338,888 | 905,697 | 3,633,083 | 1,473,845 | 6,481,066 | ||||||||||||||||||||||||||||
Institutional Class | 32,549,042 | 371,932,052 | 17,530,636 | 207,098,156 | 1,762,730 | 7,253,419 | 1,646,838 | 7,270,598 | ||||||||||||||||||||||||||||
Class R6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Administrative Class | — | — | — | — | 37,587 | 142,036 | 212,388 | 915,290 | ||||||||||||||||||||||||||||
Issued in reinvestment of dividends and distributions: |
| |||||||||||||||||||||||||||||||||||
Class A | 9,562,038 | 104,635,655 | 7,604,961 | 86,778,417 | 8,735,577 | 24,085,907 | 2,104,396 | 7,912,529 | ||||||||||||||||||||||||||||
Class C | 8,650,069 | 87,008,778 | 7,548,126 | 79,690,897 | 1,440,361 | 3,162,218 | 5,010,740 | 15,733,723 | ||||||||||||||||||||||||||||
Class R | 31,419 | 343,496 | 19,912 | 227,297 | 63,092 | 170,148 | 62,655 | 232,450 | ||||||||||||||||||||||||||||
Class P | 5,654,704 | 63,437,381 | 4,117,228 | 48,042,746 | 335,351 | 1,072,570 | 135,406 | 576,829 | ||||||||||||||||||||||||||||
Institutional Class | 4,232,229 | 47,895,410 | 2,734,032 | 32,176,468 | 1,068,157 | 3,438,239 | 541,021 | 2,320,981 | ||||||||||||||||||||||||||||
Class R6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Administrative Class | — | — | — | — | 55,660 | 163,523 | 30,491 | 121,353 | ||||||||||||||||||||||||||||
Cost of shares redeemed: |
| |||||||||||||||||||||||||||||||||||
Class A | (28,677,604 | ) | (313,221,154 | ) | (28,283,166 | ) | (323,787,507 | ) | (9,160,991 | ) | (31,143,673 | ) | (4,835,052 | ) | (18,793,034 | ) | ||||||||||||||||||||
Class C | (27,028,004 | ) | (271,243,863 | ) | (25,916,477 | ) | (274,222,576 | ) | (39,239,512 | ) | (130,038,680 | ) | (5,840,802 | ) | (19,118,611 | ) | ||||||||||||||||||||
Class R | (90,982 | ) | (987,313 | ) | (71,876 | ) | (823,566 | ) | (189,750 | ) | (653,794 | ) | (612,039 | ) | (2,324,109 | ) | ||||||||||||||||||||
Class P | (30,988,364 | ) | (344,028,854 | ) | (19,558,217 | ) | (228,922,268 | ) | (1,112,672 | ) | (4,488,191 | ) | (1,123,777 | ) | (4,948,975 | ) | ||||||||||||||||||||
Institutional Class | (14,427,667 | ) | (160,815,113 | ) | (10,605,368 | ) | (124,696,671 | ) | (1,733,318 | ) | (7,146,904 | ) | (1,361,639 | ) | (5,972,622 | ) | ||||||||||||||||||||
Class R6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Administrative Class | — | — | — | — | (63,233 | ) | (237,112 | ) | (38,280 | ) | (155,304 | ) | ||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 82,676,611 | $ | 922,522,983 | 42,322,177 | $ | 490,802,346 | (1,902,139 | ) | $ | 5,885,382 | 722,408 | �� | $ | 2,805,388 |
– | May reflect actual amounts rounding to less than $1 or less than 1 share. |
162 | June 30, 2019 | | Annual Report |
Table of Contents
AllianzGI NFJ Dividend Value | AllianzGI NFJ International Value | AllianzGI NFJLarge-Cap Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
11,313,357 | $ | 160,679,320 | 2,887,835 | $ | 46,170,379 | 1,209,396 | $ | 21,910,051 | 672,137 | $ | 13,052,413 | 2,041,454 | $ | 56,350,922 | 268,456 | $ | 7,057,856 | |||||||||||||||||||||||||||||||||
631,855 | 7,621,144 | 577,836 | 9,243,294 | 28,057 | 479,855 | 75,609 | 1,451,967 | 84,599 | 2,188,878 | 48,157 | 1,289,667 | |||||||||||||||||||||||||||||||||||||||
527,472 | 6,693,820 | 448,571 | 7,236,995 | 72,665 | 1,308,299 | 97,061 | 1,891,755 | 11,595 | 314,013 | 35,122 | 928,774 | |||||||||||||||||||||||||||||||||||||||
5,601,788 | 67,818,148 | 6,160,359 | 98,362,137 | 217,867 | 3,906,233 | 1,287,288 | 24,898,377 | 126,157 | 3,352,016 | 261,209 | 6,970,343 | |||||||||||||||||||||||||||||||||||||||
3,180,003 | 43,151,601 | 4,691,958 | 77,966,645 | 493,776 | 8,984,985 | 595,344 | 11,716,809 | 449,862 | 11,791,096 | 798,491 | 20,880,744 | |||||||||||||||||||||||||||||||||||||||
816,704 | 10,596,590 | 1,166,043 | 19,609,108 | 29,903 | 547,843 | 120,088 | 2,389,745 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
389,033 | 5,215,973 | 1,182,779 | 20,386,645 | 20,222 | 362,630 | 41,662 | 816,977 | 10,773 | 283,103 | 8,554 | 225,849 | |||||||||||||||||||||||||||||||||||||||
8,603,057 | 91,771,627 | 7,104,995 | 108,288,914 | 65,410 | 1,163,992 | 86,907 | 1,641,914 | 100,269 | 2,601,467 | 82,594 | 2,130,259 | |||||||||||||||||||||||||||||||||||||||
1,550,267 | 16,835,328 | 3,417,871 | 52,594,833 | 7,567 | 132,250 | 23,940 | 442,642 | 5,291 | 143,588 | 20,592 | 531,053 | |||||||||||||||||||||||||||||||||||||||
1,449,485 | 15,468,682 | 1,557,309 | 23,651,696 | 5,192 | 92,441 | 6,959 | 131,632 | 1,366 | 36,380 | 3,227 | 83,705 | |||||||||||||||||||||||||||||||||||||||
6,500,134 | 70,165,546 | 6,885,804 | 105,788,156 | 34,618 | 620,705 | 84,932 | 1,613,308 | 12,869 | 339,075 | 11,565 | 301,863 | |||||||||||||||||||||||||||||||||||||||
5,850,039 | 63,026,975 | 7,232,947 | 111,189,140 | 50,379 | 906,302 | 64,628 | 1,230,045 | 96,666 | 2,510,825 | 89,013 | 2,293,260 | |||||||||||||||||||||||||||||||||||||||
1,462,567 | 15,698,988 | 1,335,037 | 20,468,353 | 1,609 | 28,658 | 2,394 | 45,698 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
1,206,182 | 13,203,073 | 1,499,167 | 23,408,044 | 2,333 | 40,736 | 5,021 | 95,035 | 838 | 22,170 | 872 | 22,813 | |||||||||||||||||||||||||||||||||||||||
(15,011,198 | ) | (186,349,526 | ) | (12,322,123 | ) | (203,194,915 | ) | (2,154,736 | ) | (37,906,923 | ) | (3,025,449 | ) | (58,604,394 | ) | (1,072,771 | ) | (28,418,904 | ) | (1,016,387 | ) | (26,608,387 | ) | |||||||||||||||||||||||||||
(11,613,283 | ) | (169,595,677 | ) | (4,259,604 | ) | (70,024,894 | ) | (1,256,420 | ) | (22,357,425 | ) | (1,166,265 | ) | (22,270,887 | ) | (2,000,144 | ) | (56,114,974 | ) | (569,979 | ) | (15,070,758 | ) | |||||||||||||||||||||||||||
(2,317,010 | ) | (30,660,555 | ) | (3,201,945 | ) | (53,568,123 | ) | (243,205 | ) | (4,386,885 | ) | (231,634 | ) | (4,471,696 | ) | (132,987 | ) | (3,709,071 | ) | (126,484 | ) | (3,452,445 | ) | |||||||||||||||||||||||||||
(18,158,983 | ) | (228,744,792 | ) | (12,968,268 | ) | (210,551,432 | ) | (2,989,399 | ) | (52,767,678 | ) | (4,712,928 | ) | (92,817,017 | ) | (202,995 | ) | (5,481,385 | ) | (246,102 | ) | (6,540,742 | ) | |||||||||||||||||||||||||||
(16,927,973 | ) | (220,910,069 | ) | (24,742,226 | ) | (425,352,619 | ) | (1,045,715 | ) | (18,990,289 | ) | (1,732,226 | ) | (34,002,855 | ) | (503,342 | ) | (13,275,287 | ) | (705,510 | ) | (18,159,402 | ) | |||||||||||||||||||||||||||
(2,602,536 | ) | (33,374,156 | ) | (2,296,447 | ) | (39,348,087 | ) | (61,401 | ) | (1,100,132 | ) | (1,588,350 | ) | (30,157,473 | ) | — | — | — | — | |||||||||||||||||||||||||||||||
(3,392,334 | ) | (43,265,010 | ) | (16,944,762 | ) | (314,378,786 | ) | (205,207 | ) | (3,521,325 | ) | (59,964 | ) | (1,172,975 | ) | (10,918 | ) | (300,641 | ) | (11,127 | ) | (307,226 | ) | |||||||||||||||||||||||||||
|
|
| (20,941,374 | ) | $ | (324,952,970 | ) | (30,586,864 | ) | $ | (592,054,517 | ) | (5,717,089 | ) | $ | (100,545,677 | ) | (9,352,846 | ) | $ | (182,078,980 | ) | (981,418 | ) | $ | (27,366,729 | ) | (1,047,737 | ) | $ | (27,422,774 | ) |
Annual Report | | June 30, 2019 | 163 |
Table of Contents
Notes to Financial Statements (cont’d)
June 30, 2019
AllianzGI NFJMid-Cap Value | AllianzGI NFJSmall-Cap Value | |||||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||||||||||||||
Class A | 6,698,495 | $ | 204,685,318 | 5,474,465 | $ | 173,724,735 | 7,098,648 | $ | 130,945,310 | 8,002,039 | $ | 170,545,062 | ||||||||||||||||||||||||
Class C | 630,222 | 15,246,842 | 1,212,825 | 31,570,305 | 84,780 | 1,077,299 | 153,952 | 3,165,825 | ||||||||||||||||||||||||||||
Class R | 358,914 | 9,057,683 | 514,498 | 14,005,436 | 205,692 | 3,727,798 | 185,326 | 4,554,851 | ||||||||||||||||||||||||||||
Class P | 4,293,177 | 101,871,414 | 7,595,411 | 195,683,218 | 717,227 | 13,249,790 | 959,748 | 24,310,328 | ||||||||||||||||||||||||||||
Institutional Class | 5,936,147 | 186,319,815 | 10,697,534 | 358,873,216 | 3,242,577 | 62,341,662 | 4,334,370 | 110,523,206 | ||||||||||||||||||||||||||||
Class R6 | 560,276 | 17,538,456 | 72,675 | # | 2,393,103 | # | 3,019,919 | 57,555,186 | 5,901,430 | 150,915,358 | ||||||||||||||||||||||||||
Administrative Class | 594,563 | 18,054,348 | 503,048 | 16,428,121 | 911,459 | 14,873,708 | 1,142,638 | 26,108,406 | ||||||||||||||||||||||||||||
Issued in reinvestment of dividends and distributions: |
| |||||||||||||||||||||||||||||||||||
Class A | 296,346 | 7,931,688 | 1,354,254 | 42,523,329 | 9,034,371 | 112,929,635 | 4,827,870 | 105,247,566 | ||||||||||||||||||||||||||||
Class C | 9,718 | 240,700 | 681,614 | 17,599,274 | 258,108 | 2,893,396 | 1,101,049 | 21,415,391 | ||||||||||||||||||||||||||||
Class R | 12,096 | 279,668 | 30,983 | 835,615 | 445,976 | 6,092,035 | 306,683 | 7,121,185 | ||||||||||||||||||||||||||||
Class P | 151,593 | 3,261,952 | 416,454 | 10,577,921 | 584,374 | 8,432,510 | 348,613 | 8,453,860 | ||||||||||||||||||||||||||||
Institutional Class | 202,468 | 5,761,385 | 348,217 | 11,672,240 | 6,135,775 | 89,336,886 | 6,448,975 | 157,290,488 | ||||||||||||||||||||||||||||
Class R6 | 7,723 | 220,071 | 581 | # | 19,437 | # | 2,768,426 | 40,059,127 | 2,686,009 | 65,270,025 | ||||||||||||||||||||||||||
Administrative Class | 13,345 | 368,552 | 29,432 | 952,725 | 2,756,274 | 34,315,616 | 2,273,516 | 49,403,503 | ||||||||||||||||||||||||||||
Cost of shares redeemed: |
| |||||||||||||||||||||||||||||||||||
Class A | (4,772,658 | ) | (139,781,481 | ) | (4,891,003 | ) | (152,623,468 | ) | (18,946,945 | ) | (333,203,625 | ) | (12,111,632 | ) | (280,714,536 | ) | ||||||||||||||||||||
Class C | (6,123,795 | ) | (154,795,781 | ) | (937,401 | ) | (24,452,518 | ) | (5,531,901 | ) | (99,879,070 | ) | (1,865,524 | ) | (38,724,388 | ) | ||||||||||||||||||||
Class R | (209,787 | ) | (5,294,056 | ) | (142,851 | ) | (3,871,309 | ) | (884,803 | ) | (16,636,078 | ) | (880,383 | ) | (21,666,359 | ) | ||||||||||||||||||||
Class P | (4,670,512 | ) | (110,205,538 | ) | (1,800,360 | ) | (46,108,843 | ) | (1,661,186 | ) | (30,717,023 | ) | (1,324,234 | ) | (33,475,597 | ) | ||||||||||||||||||||
Institutional Class | (4,076,024 | ) | (128,754,450 | ) | (2,311,349 | ) | (77,076,555 | ) | (24,363,929 | ) | (484,952,787 | ) | (24,043,187 | ) | (617,520,460 | ) | ||||||||||||||||||||
Class R6 | (84,239 | ) | (2,605,186 | ) | (5,809 | )# | (187,935 | )# | (11,202,983 | ) | (227,278,706 | ) | (11,619,999 | ) | (290,169,735 | ) | ||||||||||||||||||||
Administrative Class | (350,996 | ) | (10,485,274 | ) | (79,644 | ) | (2,578,415 | ) | (5,772,549 | ) | (98,884,720 | ) | (8,895,129 | ) | (205,325,747 | ) | ||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | (522,928 | ) | $ | 18,916,126 | 18,763,574 | $ | 569,959,632 | (31,100,690 | ) | $ | (713,722,051 | ) | (22,067,870 | ) | $ | (583,271,768 | ) |
– | May reflect actual amounts rounding to less than $1 or less than 1 share. |
# | For the period December 18, 2017 (commencement of share class) through June 30, 2018. “Shares sold” includes shares sold to Allianz Fund Investments, Inc. |
## | For the period August 22, 2018 (commencement of share class) through June 30, 2019. “Shares sold” includes shares sold to AZOA. |
164 | June 30, 2019 | | Annual Report |
Table of Contents
AllianzGI Small-Cap | AllianzGI Technology | |||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2018 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
1,600,232 | $ | 34,264,966 | 273,818 | $ | 5,934,103 | 2,550,443 | $ | 179,133,866 | 1,478,124 | $ | 101,162,454 | |||||||||||||||||||||||
92,047 | 1,720,365 | 78,065 | 1,577,299 | 257,142 | 12,544,036 | 193,418 | 10,375,838 | |||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
254,122 | 5,248,183 | 207,122 | 4,396,841 | 1,128,423 | 84,211,489 | 515,793 | 39,908,557 | |||||||||||||||||||||||||||
288,688 | 5,869,487 | 251,379 | 5,346,531 | 3,351,624 | 247,227,588 | 3,418,373 | 262,754,728 | |||||||||||||||||||||||||||
891,912 | ## | 17,601,066 | ## | — | — | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | 75,889 | 5,389,576 | 79,796 | 5,835,992 | |||||||||||||||||||||||||||
298,477 | 4,867,765 | 222,628 | 4,506,000 | 1,934,896 | 96,280,422 | 1,130,136 | 70,158,803 | |||||||||||||||||||||||||||
44,482 | 695,030 | 217,696 | 4,282,069 | 300,556 | 10,621,661 | 474,556 | 22,849,887 | |||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
39,051 | 644,904 | 19,088 | 389,394 | 332,385 | 18,733,242 | 128,482 | 8,794,567 | |||||||||||||||||||||||||||
33,246 | 553,729 | 25,372 | 520,890 | 2,155,428 | 124,109,570 | 1,604,511 | 111,641,922 | |||||||||||||||||||||||||||
2,227 | ## | 43,874 | ## | — | — | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | 56,513 | 3,019,512 | 39,515 | 2,594,161 | |||||||||||||||||||||||||||
(576,351 | ) | (11,497,437 | ) | (346,997 | ) | (7,387,795 | ) | (2,484,799 | ) | (161,222,406 | ) | (2,636,487 | ) | (181,082,964 | ) | |||||||||||||||||||
(1,391,922 | ) | (28,904,196 | ) | (253,016 | ) | (5,202,287 | ) | (1,982,776 | ) | (111,120,158 | ) | (457,029 | ) | (24,550,804 | ) | |||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
(120,551 | ) | (2,401,996 | ) | (76,666 | ) | (1,643,999 | ) | (587,099 | ) | (41,087,752 | ) | (271,258 | ) | (20,102,726 | ) | |||||||||||||||||||
(234,956 | ) | (4,873,058 | ) | (54,207 | ) | (1,140,319 | ) | (4,534,231 | ) | (329,752,909 | ) | (6,195,191 | ) | (450,675,239 | ) | |||||||||||||||||||
(12 | )## | (238 | )## | — | — | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | (272,847 | ) | (18,770,552 | ) | (44,893 | ) | (3,224,000 | ) | |||||||||||||||||||||||
1,220,692 | $ | 23,832,444 | 564,282 | $ | 11,578,727 | 2,281,547 | $ | 119,317,185 | (542,154 | ) | $ | (43,558,824 | ) |
Annual Report | | June 30, 2019 | 165 |
Table of Contents
Notes to Financial Statements (cont’d)
June 30, 2019
8. | SIGNIFICANT ACCOUNT HOLDERS |
From time to time, a Fund may have a concentration of shareholders, which may include the Investment Adviser or affiliates of the Investment Adviser, holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact to a Fund.
At June 30, 2019, the significant account-holders, owners of 5% or greater of each respective Fund’s outstanding shares were as follows:
Unaffiliated | ||||||||
Number of Account Holders | Approximate Ownership | |||||||
AllianzGI Emerging Markets Opportunities | 3 | 78 | % | |||||
AllianzGI Focused Growth | 6 | 55 | % | |||||
AllianzGI Global Natural Resources | 5 | 64 | % | |||||
AllianzGI GlobalSmall-Cap | 6 | 71 | % | |||||
AllianzGI Health Sciences | 3 | 58 | % | |||||
AllianzGI Income & Growth | 9 | 84 | % | |||||
AllianzGIMid-Cap | 7 | 62 | % | |||||
AllianzGI NFJ Dividend Value | 8 | 69 | % | |||||
AllianzGI NFJ International Value | 8 | 68 | % | |||||
AllianzGI NFJLarge-Cap Value | 10 | 73 | % | |||||
AllianzGI NFJMid-Cap Value | 8 | 61 | % | |||||
AllianzGI NFJSmall-Cap Value | 4 | 50 | % | |||||
AllianzGISmall-Cap | 6 | 59 | % | |||||
AllianzGI Technology | 3 | 44 | % |
9. | AFFILIATED TRANSACTIONS |
An affiliate includes any company in which a Fund held 5% or more of a company’s outstanding voting securities at any point during the reporting period. The table below represents transactions in and earnings from these affiliated issuers during the year ended June 30, 2019:
AllianzGI Income & Growth: | ||||||||||||||||||||||||||||||||||||
Market Value 6/30/2018 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation)* | Market Value 6/30/2019 | Dividend Income | Shares as of 6/30/2019 | Net Realized Gain (Loss) | Net Capital Gain Distributions Received | ||||||||||||||||||||||||||||
CCF Holdings LLC, Class B | — | — | — | $ | 4 | $ | 4 | — | 42,857 | — | — | |||||||||||||||||||||||||
LiveStyle, Inc. † | $ | 20 | — | — | — | 20 | — | 202,319 | — | — | ||||||||||||||||||||||||||
LiveStyle, Inc., Ser. B† | 17,134,400 | — | — | — | 17,134,400 | — | 171,344 | — | — | |||||||||||||||||||||||||||
LiveStyle, Inc., Ser. B† | 80 | — | — | — | 80 | — | 8,000 | — | — | |||||||||||||||||||||||||||
Totals | $ | 17,134,500 | — | — | $ | 4 | $ | 17,134,504 | — | 424,520 | — | — |
† | Not affiliated at June 30, 2018. |
* | Does not tie to Net change in unrealized appreciation/depreciation on the Statements of Operations as a result of previously unaffiliated securities moving to affiliated. |
10. | FUND EVENTS |
(a) New Share Class
Effective August 22, 2018, AllianzGISmall-Cap began offering Class R6 shares.
(b) Class Conversion
As of September 30, 2018 (the “Class C Conversion Date”), all Class C shares of a Fund that were purchased ten years or more prior to the Class C Conversion Date automatically converted to Class A shares of the same Fund. After the Class C Conversion Date, all Class C shares of a Fund held in accounts directly with the Trust’s transfer agent will automatically convert to Class A shares of the same Fund on or about the first business day of the month following theten-year anniversary of purchase. After the Class C Conversion Date, all Class C shares of a Fund held through a financial intermediary (subject to the exceptions noted below) will automatically convert to Class A shares of the same Fund following theten-year anniversary of purchase.
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Although the timing of this conversion may differ from the timing stated above, it is expected to occur during the month following theten-year anniversary of purchase. Such conversions will be effected on the basis of the relative net asset values of the Class C and Class A shares involved in the conversion. When Class C shares convert, any other Class C shares that were acquired by the shareholder by the reinvestment of dividends or distributions will also convert to Class A shares on a pro rata basis. The Board’s approval of the conversion feature in the Trust’s Multi-Class plan is subject to the limitation that if, after the Class C Conversion Date, the Class A shareholders of a Fund approve any material increase in expenses allocated to that class (including12b-1 Fees) without the approval of the then-existing Class C shareholders, Class C shares will cease automatically converting into Class A shares.
Class C shares held through a financial intermediary in an omnibus account will be converted into Class A shares only if the intermediary can document that the shareholder has met the required holding period. It is the financial intermediary’s (and not the Funds’) responsibility to keep records and to ensure that the shareholder is credited with the proper holding period. Not all financial intermediaries are able to track purchases to credit individual shareholder’s holding periods. In particular, the Trust understands that group retirement plans held through third party intermediaries that hold Class C shares in an omnibus account in certain instances do not track participant level share lot aging. Please consult with your financial intermediary about your eligibility to exercise this conversion privilege.
11. | PAYMENTS FROM AFFILIATES |
During the year ended June 30, 2018, AllianzGI U.S. reimbursed AllianzGI GlobalSmall-Cap $78,097 for realized losses resulting from a trading error.
During the year ended June 30, 2019, AllianzGI U.S. reimbursed AllianzGI Income & Growth $2,600 for realized losses resulting from a trading error.
12. | BORROWINGS |
The Trust entered into a credit agreement (the “State Street Agreement”), among the Trust, AllianzGI Institutional Multi-Series Trust, Allianz Funds Multi-Strategy Trust and Premier Multi-Series VIT, as borrowers (collectively, the “AllianzGI Borrowers” and each series thereof, an “AllianzGI Borrower Fund”), and State Street Bank and Trust Company, as agent and lender, for a committed line of credit. The State Street Agreement permits the AllianzGI Borrowers to borrow up to $200 million in aggregate, subject to (i) a requirement that each AllianzGI Borrower Fund’s asset coverage with respect to senior securities representing indebtedness be 300% or higher, and (ii) certain other limitations and conditions. Each AllianzGI Borrower Fund must pay interest on any amounts borrowed under the facility at a rate per annum equal to 1.25% plus the higher of the then-current federal funds overnight rate or theone-month LIBOR rate, subject to upward adjustment when any past due payments are outstanding. The State Street Agreement was extended by an additional364-day
period by an amendment effective October 25, 2018 with an expiration date of October 24, 2019 (the “Amendment”). The Amendment changed a 0.25% usage fee on undrawn amounts, which had previously applied, to an annualized rate of 0.20%, to be allocated pro rata among the AllianzGI Borrower Funds on the basis of net assets. Amounts borrowed may be repaid and reborrowed on a revolving basis during the term of the facility.
The following Funds utilized the line of credit during the period ended June 30, 2019. The average balance outstanding is for the number of days that the Funds had an outstanding balance.
Average Amount Borrowed During the Period | Average Interest Rate | Number of Days Outstanding During the Period | Outstanding Borrowings at June 30, 2019 | |||||||||||||
AllianzGI NFJ Dividend Value | $ | 32,413,333 | 3.76 | % | 15 | 0 | ||||||||||
AllianzGI NFJ International Value | $ | 3,167,500 | 3.76 | % | 12 | 0 | ||||||||||
AllianzGI NFJ Small-Cap Value | $ | 16,394,444 | 3.76 | % | 18 | 0 |
Pursuant to an exemptive order issued by the SEC (the “Order”), the Funds are authorized to enter into a master interfund lending agreement (the “Interfund Program”) with each other and certain funds advised by the Investment Adviser (each a “Participating Fund”). The Interfund Program allows each Participating Fund, whose policies permit it to do so, to lend money directly to and borrow money directly from other Funds for temporary purposes. During the year ended June 30, 2019, the Funds did not participate as a borrower or lender in the Interfund Program.
13. | RELATED PARTY TRANSACTIONS |
The Investment Adviser and the Distributor are related parties. Fees payable to and amounts due from these parties are disclosed in Note 4 and the accrued related party fee and receivable amounts are disclosed on the Statements of Assets and Liabilities.
Certain Funds are permitted to purchase or sell securities from or to certain related affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers comply with Rule17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price.
During the year ended June 30, 2019, AllianzGI Income & Growth engaged in purchases of securities pursuant to Rule17a-7 of the 1940 Act in the amount of $5,608,356.
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Notes to Financial Statements (cont’d)
June 30, 2019
14. | SUBSEQUENT EVENTS |
In preparing these financial statements, the Funds’ management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
On July 18, 2019, AllianzGI Income & Growth declaredper-share net investment income dividends and short-term capital gain distributions to shareholders, payable July 18, 2019 to shareholders of record on July 17, 2019 as follows:
Share Class | Dividend Rate | Short-Term Capital Gains | ||||||
Class A | $ | 0.02424 | $ | 0.04576 | ||||
Class C | $ | 0.01828 | $ | 0.04576 | ||||
Class R | $ | 0.02179 | $ | 0.04576 | ||||
Class P | $ | 0.02649 | $ | 0.04576 | ||||
Institutional Class | $ | 0.02743 | $ | 0.04576 |
On August 22, 2019, AllianzGI Income & Growth declaredper-share net investment income dividends and short-term capital gain distributions to shareholders, payable August 22, 2019 to shareholders of record on August 21, 2019 as follows:
Share Class | Dividend Rate | Short-Term Capital Gains | ||||||
Class A | $ | 0.02579 | $ | 0.04421 | ||||
Class C | $ | 0.01993 | $ | 0.04421 | ||||
Class R | $ | 0.02345 | $ | 0.04421 | ||||
Class P | $ | 0.02796 | $ | 0.04421 | ||||
Institutional Class | $ | 0.02890 | $ | 0.04421 |
There were no other subsequent events identified that require recognition or disclosure.
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Report of Independent Registered Public Accounting Firm
TotheBoard of Trustees of Allianz Funds and Shareholders of AllianzGI Emerging Markets Opportunities Fund, AllianzGI Focused Growth Fund, AllianzGI Global Natural Resources Fund, AllianzGI GlobalSmall-Cap Fund, AllianzGI Health Sciences Fund, AllianzGI Income & Growth Fund, AllianzGIMid-Cap Fund, AllianzGI NFJ Dividend Value Fund, AllianzGI NFJ International Value Fund, AllianzGI NFJLarge-Cap Value Fund, AllianzGI NFJMid-Cap Value Fund, AllianzGI NFJSmall-Cap Value Fund, AllianzGISmall-Cap Fund and AllianzGI Technology Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, ofAllianzGI Emerging Markets Opportunities Fund, AllianzGI Focused Growth Fund, AllianzGI Global Natural Resources Fund, AllianzGI GlobalSmall-Cap Fund, AllianzGI Health Sciences Fund, AllianzGI Income & Growth Fund, AllianzGIMid-Cap Fund, AllianzGI NFJ Dividend Value Fund, AllianzGI NFJ International Value Fund, AllianzGI NFJLarge-Cap Value Fund, AllianzGI NFJMid-Cap Value Fund, AllianzGI NFJSmall-Cap Value Fund, AllianzGISmall-Cap Fund and AllianzGI Technology Fund(constituting Allianz Funds, hereafter collectively referred to as the “Funds”) as of June 30, 2019, the related statements of operations for the year ended June 30, 2019, the statements of changes in net assets for each of the two years in the period endedJune 30, 2019, including the related notes,and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2019 the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended June 30, 2019 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2019 by correspondence with the custodians, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
PricewaterhouseCoopers LLP
New York, New York
August 22, 2019
We have served as the auditor of one or more investment companies in the Allianz Global Investors U.S. group of investment companies since at least 1995. We have not determined the specific year we began serving as auditor.
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Changes to the Board of Trustees
Effective January 1, 2019, Alan Rappaport was appointed Chairman of the Board of Trustees of the Trust.
Effective January 1, 2019, Sarah E. Cogan became a Trustee of the Trust.
Effective March 21, 2019, A. Douglas Eu resigned as a Trustee of the Trust and Thomas J. Fuccillo became a Trustee of the Trust. Mr. Fuccillo is an “interested person” of the Trust, as defined in Section 2(a)(19) of the 1940 Act, due to his position with the Investment Manager and its affiliates.
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Federal Income Tax Information
As required by the Internal Revenue Code, shareholders must be notified regarding certain tax attributes of distributions made by each fund.
During the year ended June 30, 2019, the following Funds distributed long-term capital gains in the amounts indicated (or the maximum amount allowable):
15% Long-Term Capital Gain | 25% Long-Term Capital Gain | |||||||
AllianzGI Focused Growth | $ | 117,884,601 | — | |||||
AllianzGI GlobalSmall-Cap | 22,639,586 | $ | 11,503 | |||||
AllianzGI Health Sciences | 17,793,811 | — | ||||||
AllianzGI Income & Growth | 5,082,690 | 30,000 | ||||||
AllianzGIMid-Cap | 29,491,252 | — | ||||||
AllianzGI NFJ Dividend Value | 280,436,188 | 1,361 | ||||||
AllianzGI NFJLarge-Cap Value | 660,709 | — | ||||||
AllianzGI NFJMid-Cap Value | 5,789,993 | |||||||
AllianzGI NFJSmall-Cap Value | 293,185,397 | 120,893 | ||||||
AllianzGISmall-Cap | 4,395,852 | 362 | ||||||
AllianzGI Technology | 224,014,360 | — |
Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the following percentages of ordinary dividends paid during the fiscal year ended June 30, 2019, are designated as “qualified dividend income”:
AllianzGI Emerging Markets Opportunities | 86 | % | ||
AllianzGI Focused Growth | 0 | % | ||
AllianzGI Global Natural Resources | 100 | % | ||
AllianzGI GlobalSmall-Cap | 26 | % | ||
AllianzGI Health Sciences | 95 | % | ||
AllianzGI Income & Growth | 11 | % |
AllianzGIMid-Cap | 14 | % | ||
AllianzGI NFJ Dividend Value | 100 | % | ||
AllianzGI NFJ International Value | 100 | % | ||
AllianzGI NFJLarge-Cap Value | 100 | % | ||
AllianzGI NFJMid-Cap Value | 100 | % | ||
AllianzGI NFJSmall-Cap Value | 77 | % | ||
AllianzGISmall-Cap | 12 | % | ||
AllianzGI Technology | 10 | % |
Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Funds’ ordinary income dividends paid during the fiscal year ended June 30, 2019, that qualify for the corporate dividend received deduction is set forth below:
AllianzGI Emerging Markets Opportunities | 1 | % | ||
AllianzGI Focused Growth | 0 | % | ||
AllianzGI Global Natural Resources | 86 | % | ||
AllianzGI GlobalSmall-Cap | 6 | % | ||
AllianzGI Health Sciences | 82 | % | ||
AllianzGI Income & Growth | 10 | % | ||
AllianzGIMid-Cap | 14 | % | ||
AllianzGI NFJ Dividend Value | 100 | % | ||
AllianzGI NFJ International Value | 2 | % | ||
AllianzGI NFJLarge-Cap Value | 100 | % | ||
AllianzGI NFJMid-Cap Value | 100 | % | ||
AllianzGI NFJSmall-Cap Value | 72 | % | ||
AllianzGISmall-Cap | 12 | % | ||
AllianzGI Technology | 8 | % |
Foreign Tax Credit. The following Funds had elected to pass through the credit for tax paid in foreign countries. The foreign income and foreign tax per share outstanding on June 30, 2019 are as follows:
Gross Foreign Dividends | Gross Foreign Dividends Per Share | Foreign��Tax | Foreign Tax Per Share | |||||||||||||
AllianzGI Emerging Markets Opportunities | $ | 11,787,946 | $ | 0.895493 | $ | 1,227,896 | $ | 0.093279 | ||||||||
AllianzGI NFJ International Value | 7,148,081 | 0.596577 | 576,113 | 0.048082 |
Since the Funds’ tax year is not the calendar year, another notification will be sent with respect to calendar year 2019. In January 2020, shareholders will be advised on IRS Form1099-DIV as to the federal tax status of the dividends and distributions received during calendar year 2019. The amount that will be reported will be the amount to use on the shareholder’s 2019 federal income tax return and may differ from the amount which must be reported in connection with the Funds’ tax year ended June 30, 2019. Shareholders are advised to consult their tax advisers as to the federal, state and local tax status of the dividend income received from the Funds.
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Matters Relating to the Trustees’ Consideration of the Investment Advisory Agreement
The Investment Company Act of 1940, as amended, requires that both the full Board of Trustees (the “Board” or the “Trustees”) and a majority of the Trustees who are not interested persons of the Trust (the “Independent Trustees”), voting separately, annually approve the continuation of the Trust’s Amended and Restated Investment Advisory Agreement (the “Agreement”) on behalf of each Fund (as defined below) with Allianz Global Investors U.S. LLC (the “Investment Adviser”). Throughout the process, the Independent Trustees received separate legal advice from independent legal counsel that is experienced in Investment Company Act of 1940 matters and that is independent of the Investment Adviser (“Independent Counsel”), and with whom they met separately from the Investment Adviser during the contract review meetings.
The Independent Trustees met in executive session on June 19, 2019 to consider whether to approve the continuation of the Agreement for an additional year. The Contracts Committee of the Board of Trustees, which is comprised of all of the Independent Trustees, held a conference call on June 5, 2019 and metin-person June 19, 2019 (the “contract review meetings”) with Independent Counsel to discuss the materials provided by the Investment Adviser in response to the Independent Trustees’ written request for information regarding the annual renewal. Representatives from fund management attended portions of those meetings to, among other topics, review the comparative fee and expense information and comparative performance information prepared and provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party, for each Fund using its respective Broadridge peer groups for performance and expense comparisons.
The Independent Trustees noted that they had most recently approved a continuation of the Agreement through December 31, 2019, and that the proposed continuation of the Agreement would extend the term to June 30, 2020. The Independent Trustees noted that this change in timing was intended to align the term of the Agreement with the terms of the advisory, distribution, administration, and other agreements of other Allianz investment companies.
At their meeting held on June 19, 2019, the Board and the Independent Trustees unanimously approved the continuation of the Agreement through June 30, 2020 with respect to AllianzGI Emerging Markets Opportunities Fund, AllianzGI Focused Growth Fund, AllianzGI Global Natural Resources Fund, AllianzGIGlobal-Small-Cap Fund, AllianzGI Health Sciences Fund, AllianzGI Income & Growth Fund, AllianzGIMid-Cap Fund, AllianzGISmall-Cap Fund, AllianzGI Technology Fund, AllianzGI NFJ Dividend Value Fund, AllianzGI NFJ International Value Fund, AllianzGI NFJLarge-Cap Fund, AllianzGI NFJMid-Cap Value Fund, AllianzGI NFJSmall-Cap Value Fund (each, a “Fund” and together, the “Funds”). The material factors and conclusions that formed the basis of these approvals for the Funds are discussed below.
In connection with their deliberations regarding the approval of the Agreement, the Independent Trustees considered such information
and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. As described below, the Independent Trustees considered the nature, quality and extent of the various investment management, administrative, and other services to be performed by the Investment Adviser under the Agreement.
In evaluating the Agreement with respect to each Fund, the Board, including the Independent Trustees, reviewed extensive materials provided by the Investment Adviser in response to questions submitted by the Independent Trustees and Independent Counsel, and met with senior representatives of the Investment Adviser regarding its personnel, operations, and financial condition as they relate to the Funds. The Board also considered the broad range of information relevant to the annual contract review that is provided to the Board (including its various standing committees) at meetings throughout the year, including reports on investment performance, portfolio risk, and other portfolio information for each Fund, including the use of derivatives if used as part of the Fund’s strategy, as well as periodic reports on, among other matters, pricing and valuation; quality and cost of portfolio trade execution; compliance; and shareholder and other services provided by the Investment Adviser and its affiliates. To assist with their review, the Independent Trustees reviewed fact cards for each Fund including, among other information, performance comparisons between the Funds and their Broadridge Performance Universe (as defined below), total return investment performance, investment objective, total net assets, annual fund operating expenses for each share class, portfolio managers, total expense ratio and management fee comparisons between each Fund and its Broadridge Expense Group (as defined below), and trends in the Investment Adviser’s profitability from its advisory relationship with each Fund. They also considered summaries assigning a quadrant placement to each Fund for an institutional and retail share class based on an average of certain measures of performance (including in relation to risk) and fees/expenses versus peer group medians. The Independent Trustees also considered the risk profiles of the Funds.
The Independent Trustees’ conclusions as to the approval of the Agreement were based on a comprehensive consideration of all information provided to the Independent Trustees and were not the result of any single factor. Individual Independent Trustees may have evaluated the information presented differently from one another, attributing different weights to various factors. The Independent Trustees recognized that the fee arrangements for the Funds are the result of review and discussion in the prior years between the Independent Trustees and the Investment Adviser, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Independent Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years. The Independent Trustees evaluated information available to them on aFund-by-Fund basis, and their determinations were made separately in respect of
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each Fund. However, they also took into account the common interests of all series of the Trust in their review.
Performance Information
With respect to investment performance, the Independent Trustees considered information regarding each Fund’s short-, intermediate-, and long-term performance, as applicable, net of the Fund’s fees and expenses, both on an absolute basis and relative to an appropriate benchmark index that does not deduct the fees or expenses of investing, and compared to the performance of the Broadridge Performance Universe (as defined below). The Independent Trustees considered information provided by Broadridge for the Funds regarding the investment performance of a group of funds with investment classifications and/or objectives comparable to those of the Funds identified by Broadridge (the “Broadridge Performance Universe”), the performance of applicable benchmark indices, and the total return investment performance (based on net assets) of the Funds for various time periods. The Independent Trustees also reviewed performance in relation to certain measures of the degree of investment risk undertaken by the portfolio managers.
For Funds that underperformed, the Board considered the magnitude of that underperformance relative to the Broadridge Performance Universe and/or the benchmark (e.g., the amount by which a Fund underperformed, including, for example, whether the Fund slightly underperformed or significantly underperformed). In the case of those Funds that the Independent Trustees identified as having underperformed their benchmark indices and/or Broadridge Performance Universes to an extent, or over a period of time, that the Independent Trustees felt warranted additional inquiry, the Independent Trustees discussed with the Investment Adviser each such Fund’s performance, potential reasons for the underperformance, and, if necessary, steps that the Investment Adviser had taken, or intended to take, to improve performance. The Independent Trustees also met with the portfolio managers of certain Funds during the 12 months prior to voting on the contract renewal to discuss the Funds’ performance. The Independent Trustees considered the Investment Adviser’s responsiveness with respect to the Funds that experienced lagging performance. In this regard, with respect to the NFJ group of Funds, they noted recent changes in leadership and recent additions to the portfolio management and research personnel. The Independent Trustees noted that performance, especially short-term performance is only one of the factors that they deem relevant to their consideration of the Agreements and that, after considering all relevant factors, it may be appropriate to approve the continuation of the Agreements notwithstanding a Fund’s underperformance.
Nature, Extent, and Quality of Services
As part of their review, the Independent Trustees received and considered descriptions of various functions performed by the
Investment Adviser for the Funds, such as portfolio management, compliance monitoring, portfolio trading practices and oversight of third party service providers. They also considered information regarding the overall organization and business functions of the Investment Adviser, including, without limitation, information regarding senior management, portfolio managers and other personnel providing or proposed to provide investment management, administrative and other services, and corporate ownership and business operations unrelated to the Funds. The Independent Trustees examined the ability of the Investment Adviser to provide high-quality investment management and other services to the Funds. Among other information, the Independent Trustees considered the investment philosophy and research and decision-making processes of the Investment Adviser, as well as the Investment Adviser’s broker selection process and trading operations; the experience of key advisory personnel of the Investment Adviser and its affiliates, as applicable, responsible for portfolio management of the Funds; the ability of the Investment Adviser to attract and retain capable personnel; employee compensation; and the operational infrastructure, including technology and systems, of the Investment Adviser.
In addition, the Independent Trustees noted the extensive range of services that the Investment Adviser provides to the Funds beyond the investment management services. In this regard, the Independent Trustees reviewed the extent and quality of the Investment Adviser’s services with respect to regulatory compliance and ability to comply with the investment policies of the Funds; the compliance programs and risk controls of the Investment Adviser; the specific contractual obligations of the Investment Adviser pursuant to the Agreement; the nature, extent and quality of certain administrative services the Investment Adviser is responsible for providing to the Funds; the Investment Adviser’s risk management function; and conditions that might affect the ability of the Investment Adviser to provide high quality services to the Funds in the future under the Agreement, including, but not limited to, the organization’s financial condition and operational stability. The Independent Trustees also considered that the Investment Adviser assumes significant ongoing risks with respect to all Funds, including entrepreneurial and business risks the Investment Adviser has undertaken in serving as investment adviser and sponsor of the Funds, for which it is entitled to reasonable compensation. Specifically, its responsibilities include continual management of investment, operational, enterprise, legal, regulatory, and compliance risks as they relate to the Funds. The Independent Trustees also noted the Investment Adviser’s activities under its contractual obligation to oversee the Funds’ various outside service providers, including its negotiation of certain service providers’ fees and its evaluation of service providers’ infrastructure, cybersecurity programs, compliance programs, and business continuity programs, among other matters. It also considered the Investment Adviser’s ongoing development of its own infrastructure and information technology to support the Funds through, among other things, cybersecurity, business continuity planning, and risk management.
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Matters Relating to the Trustees’ Consideration of the Investment Advisory Agreement (cont’d)
The Independent Trustees considered, among other matters, that the Investment Adviser provides or procures through third-party service providers most administrative services that are required by the Funds under a separate Amended and Restated Administration Agreement (the “Administration Agreement”). These services include accounting, bookkeeping, tax, legal, audit, custody, transfer agency,sub-transfer agency, valuation and compliance services, preparation of prospectuses, shareholder reports and other regulatory filings, oversight and coordination of activities of third-party service providers and various shareholder services. The Independent Trustees took into account the “unitary” administrative fee structure applicable to the Funds, under which certain third-party services that are ordinarily the financial responsibility of a mutual fund (e.g., audit, custody, accounting, legal, transfer agency,sub-transfer agency and printing services) are, in the case of the Funds, paid for by the Investment Adviser out of its administrative fee. They also took into account that the Investment Adviser provides the Funds with office space, administrative services and personnel to serve as Fund officers, and that the Investment Adviser and its affiliates pay all of the compensation of the Funds’ interested Trustees and officers (in their capacities as employees of the Investment Adviser or such affiliates). Based on the foregoing, the Independent Trustees concluded that the Investment Adviser’s investment processes, research capabilities and philosophy were well-suited to each Fund given its investment objective and policies, that the Investment Adviser would be able to continue to meet any reasonably foreseeable obligations under the Agreement, and that the Investment Adviser would otherwise be able to provide services to the Funds of sufficient extent and quality.
Fee and Expense Information and Comparisons
In assessing the reasonableness of the Funds’ fees and expenses under the Agreement, the Independent Trustees considered, among other information, each Fund’s advisory fee and the Fund’s total expense ratio as a percentage of average daily net assets and information regarding the advisory fees and other expenses of comparable funds identified by Broadridge (the “Broadridge Expense Group”). Where a Fund’s advisory fees or total expense ratios were higher than the Broadridge Expense Group median, the Independent Trustees considered whether specific portfolio management, administration, or oversight needs contributed to the Fund’s advisory fees or total expense ratios. The Independent Trustees also noted certain advisory or administrative fee breakpoints, waivers or reductions for certain Funds that had been proposed by the Investment Adviser for continuation, or modification. With respect to certain Funds that underperformed for theone- and three-year periods relative to the median of the Broadridge Performance Universe, the Independent Trustees considered and discussed with the Investment Adviser whether any additional fee waivers were appropriate. The Independent Trustees also considered, among other items: (i) that the Funds pay a unitary administrative fee fornon-advisory services, which differentiates the Funds from many in
the industry, (ii) current Fund asset levels as compared to prior years, and (iii) the Funds’ “active share,” i.e., the percentage of stock holdings in a Fund that differ from its benchmark index and discussed with the Investment Adviser the reasons some Funds may have lower active share than others.
To the extent applicable, the Independent Trustees considered information regarding the investment performance and fees for other funds and/or separately managed accounts, including institutional accounts, managed by the Investment Adviser or its affiliates with similar investment objective(s) and policies to those of the Funds, if any (“similar accounts”). Specifically, the Independent Trustees reviewed information showing the contractual advisory fees charged by the Investment Adviser to the similar accounts. In comparing these fees, the Independent Trustees considered information provided by the Investment Adviser as to the generally broader and more extensive services provided to the Funds in comparison to institutional or separate accounts; the higher demands placed on the Investment Adviser’s investment personnel and trading infrastructure as a result of the daily cashin-flows andout-flows of the Funds; the greater entrepreneurial risk in managing retail mutual funds; and the impact on the Investment Adviser and expenses associated with the more extensive regulatory regime to which the Funds are subject in comparison to institutional or separate accounts.
The Independent Trustees also considered and evaluated the unitary administrative fees paid by each Fund under the Administration Agreement, including in light of the total expenses of the Funds and the total expenses of competitor funds as reflected in the Broadridge materials. The Independent Trustees noted that, in connection with the contract review process in prior years, they had negotiated with the Investment Adviser to observe administrative fee breakpoints for each Fund and share class under the Administration Agreement, and to apply breakpoints based on the entire net assets of each Fund (rather than on net assets attributable to particular share classes).
The Trustees also considered, among other information, the Investment Adviser’s business model of providing advisory and administrative services as part of a comprehensive program wherein the services cannot readily be separated and the Investment Adviser’s indication that it would not be willing to outsource its provision of administrative services while continuing to provide advisory services. They also took into account disclosure in the Funds’ prospectuses regarding administrative fees. In considering each Fund’s advisory fee, the Independent Trustees also reviewed information regarding each Fund’s “active share” in relation to its benchmark index and discussed with the Investment Adviser the reasons some Funds have lower active share than others.
Economies of Scale and“Fall-Out” Benefits
The Independent Trustees considered the extent to which the Investment Adviser may realize economies of scale or other efficiencies in managing and supporting the Funds. The Independent
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Trustees took into account that, asopen-end investment companies, the Funds intend to raise additional assets, so that, as the assets of the Funds grow over time, certain economies of scale and other efficiencies may be realized through spreading certain fixed costs across a larger asset base or across a variety of products and services, while also taking into account the breakpoints and fee waiver arrangements observed by the Investment Adviser for applicable Funds. The Independent Trustees considered it appropriate to consider breakpoints in the Funds’ administrative fee as a means of sharing any economies of scale or efficiencies concerning administration services with Fund shareholders. The Independent Trustees also took into account that the Investment Adviser agreed to advisory and/or administrative fee waivers and/or breakpoints for certain Funds.
Additionally, the Independent Trustees consideredso-called“fall-out benefits” to the Investment Adviser and its affiliates, such as reputational value derived from serving as Investment Adviser to the Funds. They also considered that the unitary administrative fee generally results in increased profitability benefits as the asset base of the Funds increases and such benefits generally inure to the Investment Adviser, and that the Investment Adviser’s profitability likewise generally declines under the unitary administrative fee structure when Fund assets decline. The Independent Trustees considered that the unitary administrative fee also insulates shareholders from increased expense ratios arising from declines in net assets.
Profitability
The Independent Trustees considered the overall estimated profitability to the Investment Adviser with respect to combined advisory and administrative fees, as well as profitability separately as to each of the advisory fees and administrative fees, each on aFund-by-Fund basis for the twelve months ended December 31, 2018. They also reviewed the Investment Adviser’s aggregate profitability with respect to the Fund complex and the Investment Adviser’s overall profitability with respect to all products globally. As part of its considerations, the Board considered the cost allocation methodology that the Investment Adviser used in developing its estimated profitability figures. In this connection, the Independent Trustees considered that for certain Funds profitability had increased as a result of expense reduction efforts, although the Funds’ assets had declined over the last year. The Independent Trustees recognized that it is difficult to make comparisons of profitability from mutual fund advisory and administration contracts because comparative information is not generally available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions about allocations and the adviser’s capital structure and cost of capital. The Independent Trustees concluded that the Investment Adviser’s estimatedpre-tax profitability for advisory services was not excessive or unreasonable, although it was sizeable for certain Funds, and that
estimatedpre-tax profitability for advisory and administrative services combined, including when calculated on a net revenue basis regarding the administrative fee, was sizeable for certain Funds, but generally not unreasonable under the circumstances. The Independent Trustees recognized that the Investment Adviser and its affiliates should be entitled to earn a reasonable level of profits for services they provide to each Fund and, based on their review, determined that the estimated profitability to the Investment Adviser with respect to its relationship with each Fund did not, in any case, appear to be excessive.
Fund-by-Fund Analysis
With regard to the investment performance of each Fund and the fees charged to each Fund, the Independent Trustees considered the following information. The comparative performance, fee, and expense information was prepared and provided by Broadridge and was not independently verified by the Independent Trustees.
With respect to all Funds, the Independent Trustees reviewed, among other information, comparative information showing performance for Class A and Institutional Class shares of the Funds against their respective Broadridge Performance Universes for theone-year, three-year, five-year andten-year periods (to the extent each such Fund had been in existence), each ended March 31, 2019. Institutional Class performance relative to the median for each Fund’s Broadridge Performance Universe is described below, and for those Funds with performance that ranked below median for their respective Broadridge Performance Universes, the specific quintile rankings for Institutional Class shares are also noted below with respect to the relevant periods of underperformance. With respect to performance quintile rankings for a Fund compared to its Broadridge Performance Universe, the first quintile represents the highest (best) performance and the fifth quintile represents the lowest performance.
The Independent Trustees reviewed, among other information, information provided by Broadridge comparing each Fund’s advisory fee, and ratios of total expenses to net assets (“Total Expense Ratios”) for two share classes (Class A and Institutional Class) to the Funds’ respective Broadridge Expense Groups for the most recently reported fiscal year. Class A shares of the applicable Broadridge-selected group of comparable funds are referred to below as the “retail expense group,” and Institutional Class are referred to as the “institutional expense group.” The Independent Trustees noted that the Broadridge data takes into account any fee reductions or expense limitations that were in effect during a Fund’s last fiscal year. For those Funds whose fees or expenses were higher than the Broadridge Expense Group median, the specific quintile rankings are also noted below with respect to the relevant above-median fee or expense categories (unless quintile rankings were not provided to the Independent Trustees by Broadridge, in which case fund rankings are provided). For the purposes of Broadridge Expense Group quintile rankings, higher fees and expenses result in a lower quintile ranking, with the first quintile corresponding to low fees and expenses the fifth quintile corresponding to high fees and expenses.
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Matters Relating to the Trustees’ Consideration of the Investment Advisory Agreement (cont’d)
∎ | AllianzGI Emerging Markets Opportunities Fund:As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone- and three-year periods (in the fourth and third quintiles, respectively) and above median for the five- andten-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees and total expense ratios were each below the median for both the retail and institutional expense groups (on a net basis). |
∎ | AllianzGI Focused Growth Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone-, three-, and five-year periods (in the fifth, fourth and third quintiles, respectively) and above median for theten-year period. As compared to its Broadridge Expense Group, the Fund’s advisory fees and total expense ratios were each below the median for both the retail and institutional expense groups (on a net basis). |
∎ | AllianzGI Global Natural Resources Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for the three-year period (in the fourth quintile) and above median for theone-, five-, andten-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees were below median for the retail and institutional expense groups, and total expense ratios were above the median for both the retail and institutional expense groups (in the fourth and third quintiles, respectively) (on a net basis in each case). |
∎ | AllianzGI GlobalSmall-Cap Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone-, three-, and five-year periods (in the fourth quintile for theone- and three-year periods and in the third quintile for the five-year period) and above median forten-year period. As compared to its Broadridge Expense Group, the Fund’s advisory fees were at median for the retail expense group and below median for the institutional expense group, and total expense ratios were above the median for the retail expense group (ranked 4/5) and at median for the institutional expense group (on a net basis in each case). |
∎ | AllianzGI Health Sciences Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for the three-year period (in the fourth quintile) and above the median for theone-year period. The Fund’s Institutional Class shares have less than five years of history; its Class A shares’ performance was below median for the three- andten-year periods (each in the fourth quintile) and above the median for theone- and five-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees were below the median for the retail and institutional expense groups, and total expense ratios were above the median for both the retail and institutional expense groups (each in the fourth quintile) (on a net basis in each case). |
∎ | AllianzGI Income & Growth Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was above median for theone-, three-, five-, andten-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees were below median for both the retail and the institutional expense groups, and total expense ratios were above the median for both the retail and institutional expense groups (each in the fifth quintile) (on a net basis in each case). |
∎ | AllianzGIMid-Cap Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone- and three- year periods (in the fourth and third quintiles, respectively) and above median for the five- andten-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees and total expense ratios were each below the median for both the retail and institutional expense groups (on a net basis). |
∎ | AllianzGI NFJ Dividend Value Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone-, three-, five-, andten-year periods (in the fifth quintile for theone-year period and in the fourth quintile for the three-, five-, andten-year periods). As compared to its Broadridge Expense Group, the Fund’s advisory fees and total expense ratios were each below the median for both the retail and institutional expense groups (on a net basis). |
∎ | AllianzGI NFJ International Value Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for the three-, five-, andten-year periods (in the fourth quintile for the three- andten-year periods and in the fifth quintile for the five-year period), and was above median for theone-year period. As compared to its Broadridge Expense Group, the Fund’s advisory fees were below median for both the retail and institutional expense groups, and total expense ratios were above the median for both the retail and institutional expense groups (in the fourth and third quintiles, respectively) (on a net basis in each case). |
∎ | AllianzGI NFJLarge-Cap Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone-year period (in the fourth quintile) and above median for the three-, five-, andten-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees were below median for both the retail and institutional expense groups, and total expense ratios were above the median for both the retail and institutional expense groups (each in the fourth quintile) (on a net basis in each case). |
∎ | AllianzGI NFJMid-Cap Value Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone-year period (in the fifth quintile) and above median for the three-, five-, andten-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees and total expense ratios were each below the median for both the retail and institutional expense groups (on a net basis). |
∎ | AllianzGI NFJSmall-Cap Value Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was below median for theone-, three-, five-, andten-year periods (in the fifth quintile for theone- andten-year periods and in the fourth quintile for the three- and five-year periods). As compared to its Broadridge Expense Group, the Fund’s advisory fees were below median for both the retail and institutional expense groups, and total expense ratios were at median for the retail expense group and below median for the institutional expense group (on a net basis in each case). |
∎ | AllianzGISmall-Cap Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was above median |
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for theone-, three-, and five-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees and total expense ratios were each below the median for both the retail and institutional expense groups (on a net basis). |
∎ | AllianzGI Technology Fund: As compared to its Broadridge Performance Universe, the Fund’s performance was above median for theone-, three-, five, andten-year periods. As compared to its Broadridge Expense Group, the Fund’s advisory fees were above the median for both the retail (ranked 9/14) and institutional (ranked 8/13) expense groups, and total expense ratios were above the median for both the retail and institutional expense groups (each in the fifth quintile) (on a net basis in each case). |
Conclusions
After reviewing these and other factors described herein, the Independent Trustees concluded, with respect to each Fund, within the context of their overall conclusions regarding the Agreement and in their business judgment, that they were satisfied with the Investment Adviser’s responses andon-going efforts relating to the investment performance of the Funds, including efforts to improve performance for underperforming Funds. The Independent Trustees also concluded that the fees payable under the Agreement represent reasonable compensation in light of the nature, extent and quality of services provided by the Investment Adviser and should be continued, taking into account the Investment Adviser’s agreement to observe waivers and/or breakpoints for certain Funds. Based on their evaluation of factors that they deemed to be material, including, but not limited to, those factors described above, the Independent Trustees unanimously concluded that the continuation of the Agreement with respect to the Funds was in the interests of the applicable Funds and their shareholders, and determined to recommend that the continuance of the Agreement be approved by the full Board.
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Please read this Policy carefully. It gives you important information about how Allianz Global Investors U.S. and its U.S. affiliates (“AllianzGI US,” “we” or “us”) handlenon-public personal information (“Personal Information”) that we may receive about you. It applies to all of the past, present and future clients and shareholders of AllianzGI US and the funds and accounts it manages, advises, administers or distributes, and will continue to apply when you are no longer a client or shareholder. As used throughout this Policy, “AllianzGI US” means Allianz Global Investors U.S. LLC, Allianz Global Investors Distributors LLC, and the family of registered and unregistered funds managed by one or more of these firms. AllianzGI US is part of a global investment management group, and the privacy policies of other Allianz Global Investors entities outside of the United States may have provisions in their policies that differ from this Privacy Policy. Please refer to the website of the specificnon-US Allianz Global Investors entity for its policy on privacy.
We Care about Your Privacy
We consider your privacy to be a fundamental aspect of our relationship with you, and we strive to maintain the confidentiality, integrity and security of your Personal Information. To ensure your privacy, we have developed policies that are designed to protect your Personal Information while allowing your needs to be served.
Information We May Collect
In the course of providing you with products and services, we may obtain Personal Information about you, which may come from sources such as account application and other forms, from other written, electronic, or verbal communications, from account transactions, from a brokerage or financial advisory firm, financial advisor or consultant, and/or from information you provide on our website.
You are not required to supply any of the Personal Information that we may request. However, failure to do so may result in us being unable to open and maintain your account, or to provide services to you.
How Your Information Is Shared
We do not disclose your Personal Information to anyone for marketing purposes. We disclose your Personal Information only to those service providers, affiliated andnon-affiliated, who need the information for everyday business purposes, such as to respond to your inquiries, to perform services, and/or to service and maintain your account. This applies to all of the categories of Personal Information we collect about you. The affiliated andnon-affiliated service providers who receive your Personal Information also may use it to process your transactions, provide you with materials (including preparing and mailing prospectuses and shareholder reports and gathering shareholder proxies), and provide you with account statements and other materials relating to your account. These service providers provide services at our direction, and under their agreements with us, are required to keep your Personal Information confidential and to use it only for providing the contractually required services. Our service providers may not use your Personal Information to market products and services to you except in conformance with applicable laws and regulations. We also may provide your Personal Information to your respective brokerage or financial advisory firm, custodian, and/or to your financial advisor or consultant.
In addition, we reserve the right to disclose or report Personal Information tonon-affiliated third parties, in limited circumstances, where we believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities or pursuant to other legal process, or to protect our rights or property, including to enforce our Privacy Policy or other agreements with you. Personal Information collected by us may also be transferred as part of a corporate sale, restructuring, bankruptcy, or other transfer of assets.
Security of Your Information
We maintain your Personal Information for as long as necessary for legitimate business purposes or otherwise as required by law. In maintaining this information, we have implemented appropriate procedures that are designed to restrict access to your Personal Information only to those who need to know that information in order to provide products and/or services to you. In addition, we have implemented physical, electronic and procedural safeguards to help protect your Personal Information.
Privacy and the Internet
The Personal Information that you provide through our website, as applicable, is handled in the same way as the Personal Information that you provide by any other means, as described above. This section of the Policy gives you additional information about the way in which Personal Information that is obtained online is handled.
∎ | Online Enrollment, Account Access and Transactions: When you visit our website, you can visit pages that are open to the general public, or, where available, log into protected pages to enroll online, access information about your account, or conduct certain transactions. Access to these |
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secure pages is permitted only after you have created a User ID and Password. The User ID and Password must be supplied each time you want to access your account information online. This information serves to verify your identity. When you enter Personal Information into our website to enroll or access your account online, you will log into secure pages. By using our website, you consent to this Privacy Policy and to the use of your Personal Information in accordance with the practices described in this Policy. If you provide Personal Information to effect transactions, a record of the transactions you have performed while on the site is retained by us. For additional terms and conditions governing your use of our website, please refer to the Investor Mutual Fund Access – Disclaimer which is incorporated herein by reference and is available on our website. |
∎ | Cookies and Similar Technologies:Cookies are small text files stored in your computer’s hard drive when you visit certain web pages. Clear GIFs (also known as Web Beacons) are typically transparent very small graphic images (usually 1 pixel x 1 pixel) that are placed on a website that may be included on our services provided via our website and typically work in conjunction with cookies to identify our users and user behavior. We may use cookies and automatically collected information to: (i) personalize our website and the services provided via our website, such as remembering your information so that you will not have tore-enter it during your use of, or the next time you use, our website and the services provided via our website; (ii) provide customized advertisements, content, and information; (iii) monitor and analyze the effectiveness of our website and the services provided via our website and third-party marketing activities; (iv) monitor aggregate site usage metrics such as total number of visitors and pages viewed; and (v) track your entries, submissions, and status in any promotions or other activities offered through our website and the services provided via our website. Tracking technology also helps us manage and improve the usability of our website, (i) detecting whether there has been any contact between your computer and us in the past and (ii) to identify the most popular sections of our website. Because an industry-standardDo-Not-Track protocol is not yet established, our website will continue to operate as described in this Privacy Policy and will not be affected by anyDo-Not-Track signals from any browser. |
∎ | Use of Social Media Plugins Our website uses the following Social Media Plugins (“Plugins”): |
∎ | Facebook Share Button operated by Facebook Inc., 1601 S. California Ave, Palo Alto, CA 94304, USA |
∎ | Tweet Button operated by Twitter Inc., 795 Folsom St., Suite 600, San Francisco, CA 94107, USA |
∎ | LinkedIn Share Button operated by LinkedIn Corporation, 2029 Stierlin Court, Mountain View, CA 94043, USA |
All Plugins are marked with the brand of the respective operators Facebook, Twitter and LinkedIn (“Operators”). When you visit our website that contains a social plugin, your browser establishes a direct connection to the servers of the Operator. The Operator directly transfers the plugin content to your browser which embeds the latter into our website, enabling the Operator to receive information about you having accessed the respective page of our website. Thus, AllianzGI US has no influence on the data gathered by the plugin and we inform you according to our state of knowledge: The embedded plugins provide the Operator with the information that you have accessed the corresponding page of our website. If you do not wish to have such data transferred to the Operators, you need to log out of your respective account before visiting our website. Please see the Operators’ data privacy statements in order to get further information about purpose and scope of the data collection and the processing and use:
∎ | Facebook:https://de-de.facebook.com/about/privacy |
∎ | Twitter: https://twitter.com/privacy |
∎ | Linked In: https://www.linkedin.com/legal/privacy-policy |
Changes to Our Privacy Policy
We may modify this Privacy Policy fromtime-to-time to reflect changes in related practices and procedures, or applicable laws and regulations. If we make changes, we will notify you on our website and the revised Policy will become effective immediately upon posting to our website. We also will provide account owners with a copy of our Privacy Policy, annually if required. We encourage you to visit our website periodically to remain up to date on our Privacy Policy. You acknowledge that by using our website after we have posted changes to this Privacy Policy, you are agreeing to the terms of the Privacy Policy as modified.
Obtaining Additional Information
If you have any questions about this Privacy Policy or our privacy related practices in the United States, you may contact us via our dedicated email at PrivacyUS@allianzgi.com.
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Allianz Funds—Board of Trustees
The chart below identifies the Trustees and Officers of the Trust. The “interested” Trustees defined by the 1940 Act, are indicated below. Unless otherwise indicated, the correspondence address of all persons below is: 1633 Broadway, New York, New York 10019. The Funds’ Statement of Additional Information contains additional information about the Trustees. The Statement of Additional Information is available without charge, upon request, by calling1-800-988-8380 (retail classes: A, C and R) or1-800-498-5413 (Class P, Class R6, Institutional and Administrative classes).
Name, Year of Birth and Position Held with Trust | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee | ||||
Interested Trustees | ||||||||
Erick R. Holt† 1952 | 12/2017 to present | Board Member, Global Chief Risk Officer, General Counsel and Chief Compliance Officer (2006 – 2018) of Allianz Asset Management GmbH. | 63 | None | ||||
Thomas J. Fuccillo† 1968 | 3/2019 to present | Managing Director and Head of US Funds of Allianz Global Investors U.S. Holdings LLC; Managing Director of Allianz Global Investors Distributors LLC; Trustee, President and Chief Executive Officer of 63 funds in the Fund Complex; and President and Chief Executive Officer of The Korea Fund, Inc. and The Taiwan Fund, Inc. Formerly, Associate General Counsel, Head of US Funds and Retail Legal (2004 – 2019); Chief Legal Officer and Secretary of Allianz Global Investors Distributors LLC (2013 – 2019); Vice President, Secretary and Chief Legal Officer of numerous funds in the Fund Complex; and Secretary and Chief Legal Officer of The Korea Fund, Inc. | 63 | None | ||||
Independent Trustees | ||||||||
Alan Rappaport 1953 Chairman of the Board of Trustees | 12/2014 to present | Advisory Director (formerly, Vice Chairman), Roundtable Investment Partners (since 2009); Adjunct Professor, New York University Stern School of Business (since 2011); Lecturer, Stanford University Graduate School of Business (since 2013); and Director, Victory Capital Holdings, Inc., an asset management firm (since 2013). Formerly, Trustee, American Museum of Natural History (2005-2015); Trustee and Member of Board of Overseers, NYU Langone Medical Center (2007-2015). | 63 | None. | ||||
Davey S. Scoon 1946 | 1/2006 to present | Adjunct Professor, University of Wisconsin-Madison (since 2011). | 63 | Director, Albireo Pharma, Inc. (since 2016); and Director, AMAG Pharmaceuticals, Inc. (since 2006). Formerly, Director, Biodel Inc. (2013-2016); Director, Orthofix International N.V. (2011-2015); and Chairman, Tufts Health Plan (1997-2014). | ||||
Deborah A DeCotis 1952 | 6/2014 to present | Advisory Director, Morgan Stanley & Co., Inc. (since 1996); Member, Circle Financial Group (since 2009); Member, Council on Foreign Relations (since 2013); Trustee, Smith College (since 2017); and Director, Watford Re (Since 2017). Formerly,Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005-2015); Trustee, Stanford University (2010-2015); and Principal, LaLoop LLC, a retail accessories company (1999-2014). | 91* | None. | ||||
F. Ford Drummond 1962 | 1/2006 to present | Owner/Operator, Drummond Ranch; and Director, Oklahoma Water Resources Board. Formerly, Director, The Cleveland Bank; and General Counsel,BMI-Health Plans (benefits administration). | 63 | Director, Bancfirst Corporation |
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Allianz Funds—Board of Trustees (cont’d)
Name, Year of Birth and Position Held with Trust | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee | ||||
Bradford K. Gallagher 1944 | 12/2014 to present | Retired. Founder, Spyglass Investments LLC, a private investment vehicle (since 2001). Formerly, Chairman and Trustee, The Common Fund (2005-2014); Partner, New Technology Ventures Capital Management LLC, a venture capital fund (2011-2013) | 91* | None. | ||||
James A. Jacobson 1945 | 12/2014 to present | Retired. Trustee (since 2002) and Chairman of Investment Committee (since 2007), Ronald McDonald House of New York; and Trustee, New Jersey City University (since 2014). | 91* | Formerly, Trustee Alpine Mutual Funds Complex (consisting of 18 funds) (2009-2016). | ||||
Hans W. Kertess 1939 | 12/2014 to present | President, H. Kertess & Co., a financial advisory company; and Senior Adviser (formerly Managing Director), Royal Bank of Canada Capital Markets (since 2004). | 91* | None. | ||||
James S. MacLeod 1947 | 12/2014 to present | Executive Chairman of the Board, CoastalSouth Bancshares, Inc.; Chairman, CoastalStates Bank; Vice Chairman of the Board and Member of Executive Committee, University of Tampa; Trustee, MUSC Foundation and Director, Mortgage Bankers Association of America. Formerly, Executive Vice President, Mortgage Guaranty Insurance Corporation; and Chief Executive Officer, Homeowners Mortgage. | 63 | Non-Executive Chairman & Director, Sykes Enterprises, Inc. | ||||
William B. Ogden, IV 1945 | 12/2014 to present | Retired. Formerly, Asset Management Industry Consultant; and Managing Director, Investment Banking Division of Citigroup Global Markets Inc. | 91* | None. |
* | Inclusive of 28 funds managed by Pacific Investment Management Company, LLC (“PIMCO”). |
† | Each of Mr. Holt and Mr. Fuccillo is an“Interested Person”of the Trust, as defined in Section 2(a)(19) of the 1940 Act, due to her or his affiliation with the Manager and its affiliates. |
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Allianz Funds—Officers
Name, Address and Year of Birth and Position Held with Trust | Term of Office* and Length of Time Served | Principal Occupation(s) During Past 5 Years | ||
Thomas J. Fuccillo 1968 President and Chief Executive Officer | 4/2016 to present | Managing Director, and Head of US Funds of Allianz Global Investors U.S. Holdings LLC; Managing Director of Allianz Global Investors Distributors LLC; Trustee, President and Chief Executive Officer of 63 funds in the Fund Complex and President and Chief Executive Officer of The Korea Fund, Inc. Formerly, Associate General Counsel, Head of US Funds and Retail Legal; Chief Legal Officer and Secretary of Allianz Global Investors Distributors LLC; Vice President, Secretary and Chief Legal Officer of numerous funds in the Fund Complex (2004-2016); and Secretary and Chief Legal Officer of The Korea Fund, Inc. and The Taiwan Fund, Inc. | ||
Scott Whisten 1971 Treasurer, Principal Financial and Accounting Officer | 4/2018 to present | Director of Allianz Global Investors U.S. LLC; and Treasurer, Principal Financial and Accounting Officer of 63 funds in the Fund Complex. Formerly, Assistant Treasurer of numerous funds in the Fund Complex (2007-2018). | ||
Angela Borreggine 1964 Chief Legal Officer and Secretary | 4/2016 to present | Director and Senior Counsel of Allianz Global Investors U.S. Holdings LLC; Secretary and Chief Legal Officer of 63 funds in the Fund Complex ; and Secretary and Chief Legal Officer of The Korea Fund, Inc. Formerly, Assistant Secretary of numerous funds in the Fund Complex (2015-2016). | ||
Thomas L. Harter, CFA 1975 Chief Compliance Officer 600 West Broadway San Diego, CA 92101 | 4/2013 to present | Director of Allianz Global Investors U.S. Holdings LLC; Director, Deputy Chief Compliance Officer of Allianz Global Investors U.S. LLC; and Chief Compliance Officer of 63 funds in the Fund Complex and of The Korea Fund, Inc. | ||
Richard J. Cochran 1961 Assistant Treasurer | 5/2008 to present | Vice President of Allianz Global Investors U.S. LLC and Assistant Treasurer of 63 funds in the Fund Complex and of The Korea Fund, Inc. | ||
Orhan Dzemaili 1974 Assistant Treasurer | 1/2011 to present | Director of Allianz Global Investors U.S. LLC; Treasurer, Principal Financial and Accounting Officer of The Korea Fund, Inc.; and Assistant Treasurer of 63 funds in the Fund Complex. Formerly, Assistant Treasurer of The Korea Fund, Inc. (2016-2018). | ||
Debra Rubano 1975 Assistant Secretary | 12/2015 to present | Director and Senior Counsel of Allianz Global Investors U.S. Holdings LLC; and Assistant Secretary of 63 funds in the Fund Complex. | ||
Craig Ruckman 1977 Assistant Secretary | 12/2017 to present | Director and Senior Counsel of Allianz Global Investors U.S. Holdings LLC; Chief Legal Officer of Allianz Global Investors Distributors LLC; and Assistant Secretary of 63 funds in the Fund Complex. Formerly, Associate of K/L Gates LLP(2012-2016). |
* | The officers of the Trust are elected annually by the Board of Trustees. |
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Allianz Funds
Trustees
Alan Rappaport
Chairman of the Board of Trustees
Sarah E. Cogan
Deborah A. DeCotis
F. Ford Drummond
Thomas J. Fuccillo
Bradford K. Gallagher
Erick R. Holt
James A. Jacobson
Hans W. Kertess
James S. MacLeod
William B. Ogden, IV
Davey S. Scoon
Officers
Thomas J. Fuccillo
President and Chief Executive Officer
Scott Whisten
Treasurer, Principal Financial & Accounting Officer
Angela Borreggine
Chief Legal Officer & Secretary
Thomas L. Harter
Chief Compliance Officer
Richard J. Cochran
Assistant Treasurer
Orhan Dzemaili
Assistant Treasurer
Debra Rubano
Assistant Secretary
Craig A. Ruckman
Assistant Secretary
Investment Adviser
Allianz Global Investors U.S. LLC
1633 Broadway
New York, NY 10019
Distributor
Allianz Global Investors Distributors LLC
1633 Broadway
New York, NY 10019
Custodian & Accounting Agent
State Street Bank and Trust Co.
801 Pennsylvania Avenue
Kansas City, MO 64105
Shareholder Servicing and Transfer Agents
State Street Bank and Trust Company, which has delegated its obligations
as transfer agent to: DST Asset Manager Soloutions, Inc.
P.O. Box 219723
Kansas City, MO 64121-9723
(Class P, Institutional Class, Class R6 and Administrative Class shares)
P.O. Box 219968
Kansas City, MO 64121-9968
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
300 Madison Ave
New York, NY 10017
Legal Counsel
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, MA 02199
This report, including the financial information herein, is transmitted to the shareholders of the Trust for their information. It is not a prospectus, circular or representation intended for use in the purchase of shares of each Fund or any securities mentioned in this report.
For Account Information
Contact your financial adviser, or if you receive account statements directly from Allianz Global Investors Distributors LLC, you can also call (800)988-8380 for Class A, C and R shares or (800)498-5413 for Class P, Institutional, R6 and Administrative shares. Telephone representatives are available Monday-Friday 8:30 am to 6:00 pm Eastern Time. Or visit our website, us.allianzgi.com.
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About Allianz Global Investors
Allianz Global Investors is a leading active asset manager with over 730 investment professionals in 24 offices worldwide and managing $601 billion in assets for individuals, families and institutions.*
Active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.
Active is: Allianz Global Investors
* Data as of March 31, 2019.
Investors should consider the investment objectives, risks, charges and expenses of the above mentioned Funds carefully before investing. This and other information is contained in the Funds’ prospectus, which may be obtained by contacting your financial advisor, by visiting us.allianzgi.com or by calling 1-800-988-8380 (retail classes: A, C and R) or 1-800-498-5413 (Class P, Class R6, Institutional and Administrative classes). Please read the prospectus carefully before you invest or send money.
Allianz Global Investors U.S. LLC serves as the investment manager for the Allianz Funds and the Allianz Multi-Strategy Funds. Allianz Funds and the Allianz Multi-Strategy Funds are distributed by Allianz Global Investors Distributors LLC.© 2019. For information about any product, contact your financial advisor.
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AZ1005AR_063019 |
865067
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ITEM 2. | CODE OF ETHICS. |
(a) | As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies — Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s President and Chief Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling1-800-926-4456. The code of ethics are included as an Exhibit 99.CODE ETH hereto. |
(b) | During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above. |
(c) | During the period covered by this report, there were not any waivers or implicit waivers to a provision of the code of ethics adopted in 2(a) above. |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Board of Trustees has determined that James A. Jacobson and Davey S. Scoon, both of whom serve on the Trust’s Audit Oversight Committee, qualify as “audit committee financial experts” and are “independent” for purposes of this Item.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
a) | Audit fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $631,552 in 2018 and $565,959 in 2019. |
b) | Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the principal accountants that are reasonably related to the performance of the audit registrant’s financial statements and are not reported under paragraph (e) of this Item were $0 in 2018 and $0 in 2019. |
c) | Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax service and tax planning (“Tax Services”) were $208,185 in 2018 and $202,830 in 2019. These services include review or preparation of U.S. federal, state, local, certain foreign tax returns, excise tax returns and the calculation of excise tax distributions. |
d) | All Other Fees. The aggregate fees billed in the Reporting Periods for professional services, if any, billed for other products and services rendered by the principal account to the Trust were $0 in 2018 and $0 in 2019. |
e) | 1. Audit CommitteePre-Approval Policies and Procedures. The Registrant’s Audit Oversight Committee has established policies and procedures forpre-approval of all audit and permissiblenon-audit services by the Auditor for the Registrant, as well as the Auditor’s engagements related directly to the operations and financial reporting of the Registrant. The Registrant’s policy is stated below. |
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ALLIANZ FUNDS (The “Trust”)
AUDIT OVERSIGHT COMMITTEE POLICY
FOR
PRE-APPROVAL OF SERVICES PROVIDED BY THE INDEPENDENT ACCOUNTANTS
The Trust’s Audit Oversight Committee (“Committee”) is charged with the oversight of the Trust’s financial reporting policies and practices and their internal controls. As part of this responsibility, the Committee mustpre-approve any independent accounting firm’s engagement to render audit and/or permissiblenon-audit services to the Trust as well as to the Trust’s investment adviser(1) or any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Trust (“Applicable Service Providers”), if the engagement relates directly to operations and financial reporting of the Trust. In evaluating a proposed engagement by the independent accountants, the Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:
a review of the nature of the professional services expected to be provided, the fees to be charged in connection with the services expected to be provided a review of the safeguards put into place by the accounting firm to safeguard independence, and periodic meetings with the accounting firm.
POLICY FORPRE-APPROVAL OF AUDIT ANDNON-AUDIT SERVICES TO BE PROVIDED TO THE TRUST
On an annual basis, the Committee of the Trust will review and if the Committee so determines,pre-approve the scope of the audits of the Trust and proposed audit fees, and permittednon-audit (including audit under related) services that are proposed to be performed by the Trust’s independent accountants for the Trust and its Applicable Service Providers (to the extent the services to be provided to the Applicable Service Providers relate directly to the operations and financial reporting of the Trust). The Committee may alsopre-approve services at any otherin-person or telephonic Committee meeting. At least annually, the Committee will receive a report of all audit andnon-audit services that were rendered in the previous calendar year by the independent accountants for the Trust and its Applicable Service Providers pursuant to this Policy.
In addition to the Committee’spre-approval of services pursuant to this Policy, the engagement of the independent accounting firm for any permittednon-audit service provided to the Trust with also require the separate writtenpre-approval of the President, Treasurer or Assistant Treasurer of the Trust, who may only grant such approval if he or she believes that the accounting firm’s engagement will not adversely affect the firm’s independence. Allnon-audit services performed by the independent accounting firm will be disclosed, as required, in filings with the Securities and Exchange Commission.
AUDIT SERVICES
The categories of audit services and related fees to be reviewed andpre-approved annually by the Committee are:
Annual Trust financial statement audits
Seed audits (related to new product filings, as required)
SEC and regulatory filings and consents
Semiannual financial statement reviews
(1) For purposes of this requirement, the term “adviser” does not includesub-advisers that are not affiliated with a Trust’s investment adviser, are overseen by that investment adviser, and whose role is primarily portfolio management.
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AUDIT-RELATED SERVICES
The following categories of audit-related services are considered to be consistent with the role of the Trust’s independent accountants and services falling under one of these categories will bepre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firm’s independence:
Accounting consultations
Fund merger support services
Agreed upon procedure reports
Other Attestation reports
Comfort letters
Other internal control reports
Individual audit-related services that fall within one of these categories and are not presented to the Committee as part of the annualpre-approval process described above, may bepre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $500,000. Anypre-approval by a Committee member shall be reported to the full Committee at its next regularly scheduled meeting.
TAX SERVICES
The following categories of tax services are considered to be consistent with the role of the Trust’s independent accountants and services falling under one of these categories will bepre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firm’s independence:
Tax compliance services related to the filing or amendment of the following:
Federal, state and local income tax compliance; and, sales and use tax compliance
Timely RIC qualification reviews
Tax distribution analysis and planning
Tax authority examination services
Tax appeals support services
Accounting methods studies
Fund merger support services
Other tax consulting services and related projects
Individual tax services that fall within one of these categories and are not presented to the Committee as part of the annualpre-approval process described above, may bepre-approved, if deemed consistent with the accounting firm’s independence, by the Committee at any regular or special meeting. Such services may also bepre-approved by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for the particular service for whichpre-approval is sought does not exceed $500,000. Anypre-approval by a Committee Member shall be reported to the full Committee at its next regularly scheduled meeting.
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OTHER SERVICES
Services that are proposed to be provided to the Trust which are not audit, audit-related or tax services may bepre-approved, if deemed consistent with the accounting firm’s independence, by the Committee at any regular or special meeting. Such services may also bepre-approved by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for the particular service for whichpre-approval is sought does not exceed the limit assigned within the Policy. Anypre-approval by a Committee member shall be reported to the full Committee at its next regularly scheduled meeting.
PROHIBITED SERVICES
The Trust’s independent accountants will not render services in the following categories ofnon-audit services:
Bookkeeping or other services related to the accounting records or financial statements of the Trust
Financial information systems design and implementation
Appraisal or valuation services, fairness opinions, orcontribution-in-kind reports
Actuarial services
Internal audit outsourcing services
Management functions or human resources
Broker or dealer, investment adviser or investment banking services
Legal services and expert services unrelated to the audit
Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.
PRE-APPROVAL OFNON-AUDIT SERVICES PROVIDED TO OTHER ENTITIES WITHIN THE FUND COMPLEX
Rule2-01(c)(7) of RegulationS-X provides that an accountant is not independent of the Trust unless the Trust’s Committee approves any permittednon-audit services to be provided to the Trust’s Applicable Service Providers, provided, in each case, that the engagement relates directly to the operations and financial reporting of the Trust.
Services to be provided to Applicable Service Providers that are required to bepre-approved, may bepre-approved, if deemed consistent with the accounting firm’s independence, by the Committee at a regular or special meeting or by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $500,000. If a service is approved by a Committee member, the full Committee is notified of suchpre-approval at its next regularly scheduled meeting.
Although the Committee will not be required topre-approve all services provided to Applicable Service Providers and their affiliates, the Committee will receive an annual report from the Trust’s independent accounting firm showing the aggregate fees for all services provided to Applicable Service Providers and their affiliates.
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DE MINIMUS EXCEPTION TO REQUIREMENT OFPRE-APPROVAL OFNON-AUDIT SERVICES
With respect to the provision of permittednon-audit services to the Trust or Accounting Affiliates, thepre-approval requirement is waived if:
(1) | The aggregate fees and costs of allnon-audit services that, but for the limited exception provided by this section, would requirepre-approval by the Committee constitutes no more than five percent of the total fees and costs paid by the Trust and Applicable Service Providers to the independent accountant during the fiscal year during which suchnon-audit services are provided; |
(2) | At the time of the engagement for such services, the Trust did not recognize that the services were“non-audit services” that required preapproval; and |
(3) | Each such service is brought promptly to the attention of the Committee and approved prior to the completion of the audit by the Committee, Committee Chair or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated. |
e) | 2. No services were approved pursuant to the procedures contained in paragraph (C) (7) (i) (C) ofRule 2-01 ofRegistration S-X. |
f) | Not applicable. |
g) | Non-audit fees. The aggregatenon-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to the Adviser, for the 2018 Reporting Period was $3,462,050 and the 2019 Reporting Period was $1,479,044. |
h) | Auditor Independence. The Registrant’s Audit Oversight Committee has considered whether the provision ofnon-audit services that were rendered to the Adviser which were notpre-approved is compatible with maintaining the Auditor’s independence. |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
(a) | Disclosure not required foropen-end management investment companies. |
(b) | Not applicable. |
ITEM 6. | INVESTMENTS. |
(a) | Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
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ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Disclosure not required foropen-end management investment companies.
ITEM 8. | PORTFOLIO MANAGERS OFCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Disclosure not required foropen-end management investment companies.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BYCLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Disclosure not required foropen-end management investment companies.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees since the Trust’s last provided disclosure in response to this item.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | The registrant’s President and Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Act (17 CFR270.30a-3(c))), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. |
(b) | There were no changes in internal control over financial reporting (as defined in Rule30a-3(d) under the Act(17 CFR 270.30a-3(d))) that occurred during the most recent semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Disclosure not required foropen-end management investment companies.
ITEM 13. | EXHIBITS. |
(a)(1) Exhibit 99.CODE ETH – Code of Ethics
(a)(2) Exhibit 99.302CERT – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(a)(3) Not applicable
(a)(4) Not applicable
(b) Exhibit 99.906CERT – Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Allianz Funds | ||
By: | /s/ Thomas J. Fuccillo | |
Thomas J. Fuccillo President & Chief Executive Officer | ||
Date: August 27, 2019 | ||
By: | /s/ Scott Whisten | |
Scott Whisten | ||
Treasurer, Principal Financial & Accounting Officer | ||
Date: August 27, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Thomas J. Fuccillo | |
Thomas J. Fuccillo President & Chief Executive Officer | ||
Date: August 27, 2019 | ||
By: | /s/ Scott Whisten | |
Scott Whisten | ||
Treasurer, Principal Financial & Accounting Officer | ||
Date: August 27, 2019 |