Our Firm
AllianzGI US, a Delaware limited liability company, is a registered investment adviser with principal offices in New York, New York, Boston, Massachusetts, Dallas, Texas, Miami, Florida, Westport, Connecticut, San Diego, California and San Francisco, California. AllianzGI US is a direct, wholly owned subsidiary of Allianz Global Investors U.S. Holdings LLC, which in turn is owned indirectly by Allianz SE, a diversified global financial institution. AllianzGI US (formerly known as Allianz Global Investors Capital LLC) began furnishing discretionary and non-discretionary investment management services on May 1, 2010 following the combination of two registered investment advisory affiliates, Nicholas-Applegate Capital Management LLC and Oppenheimer Capital LLC. On April 1, 2013, AllianzGI US merged with RCM Capital Management LLC (“RCM”) and RCM’s wholly-owned subsidiary, Caywood-Scholl Capital Management LLC. Effective October 1, 2016, Allianz Global Investors Fund Management LLC merged with and into AllianzGI US. Effective December 2016, AllianzGI US succeeded to the business of Rogge Global Partners Inc. Effective as of January 1, 2017, AllianzGI US acquired certain assets of Sound Harbor Partners LLC. Effective July 1, 2017, AllianzGI US’s wholly owned subsidiary NFJ Investment Group LLC merged with and into AllianzGI US. AllianzGI US’s oldest predecessor entity began operating in 1969.
Our Services
AllianzGI US provides discretionary and non- discretionary investment management services to clients throughout the world. AllianzGI US manages client portfolios (either directly or through model delivery and wrap fee programs) applying various processes across a variety of investment strategies, including but not limited to domestic equity, global equity, international equity, fixed income, income and growth, high yield bond, balanced strategies, multi- asset allocation, risk overlay, convertibles, private credit, distressed debt, collateralized loans, privately placed debt, private equity, and infrastructure debt and equity. AllianzGI US also acts as a sub-adviser to wrap fee programs, investment companies and other pooled investment vehicles, as well as to affiliated investment advisors. AllianzGI US may also provide consulting and research services in connection with asset allocation and portfolio structure or risk analytics.

From time to time, AllianzGI US may engage in other business activities, including licensing of intellectual property.
Tailoring Services to Client Needs
AllianzGI US employs a broad range of portfolio management tools in seeking to control risk, hedge exposures and seek returns consistent with its clients' guidelines and restrictions. AllianzGI US will seek to accommodate any client restrictions it considers reasonable, such as 1) a restriction on the purchase of a particular security or types of securities, or 2) a restriction on the purchase of a group of securities that are classified by the client to be in a particular industry (for example, tobacco), as long as AllianzGI US has agreed with the client on the industry classification. Other proposed restrictions are analyzed on a case-by- case basis.

AllianzGI US generally has the responsibility to monitor investment restrictions in clients’ guidelines. Clients should be aware that their restrictions can limit AllianzGI US’s ability to act and as a result, their performance may differ from and may be less successful than that of other accounts that are not subject to similar restrictions. AllianzGI US shall not be bound by any amendment to a client’s investment restrictions unless and until the client and AllianzGI US have agreed in writing to such amendment.

AllianzGI US may take up to ten business days (or longer depending on the complexity of the product mandate) from the time an account is approved to fully invest an account funded in cash. Similarly, AllianzGI US may take up to ten business days (or longer depending on the complexity of the product mandate) from the time AllianzGI US has received instructions to terminate an account to fully liquidate the account. If a client intends to fund its account by transferring in-kind securities, AllianzGI US will need to receive from the client, prior to the effective date of its management duties, a list of such securities to allow AllianzGI US to determine which securities to retain and which to replace. The client will be responsible for all related trading costs and tax liabilities that result from sales of contributed securities. To assist existing or new clients who seek to liquidate portfolios not under AllianzGI US’s management, AllianzGI US may liquidate the portfolio for such clients as an accommodation or for a negotiated fee.
Separate Accounts
For separate account clients, AllianzGI US provides investment management services for the assets placed under its supervision. Investment advice is furnished on either a discretionary basis, where the client authorizes AllianzGI US to make all investment decisions for the account, or on a non-discretionary basis, where AllianzGI US makes recommendations to the client but all investment decisions are made by the client and may or may not be implemented by the client.
Private Funds
AllianzGI US provides advisory or sub-advisory services to private investment funds (“Private Funds”) that are exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) and the Investment Company Act of 1940, as amended (the “Investment Company Act”). AllianzGI US or its affiliates may act as managing member or general partner of certain Private Funds. Private Funds may be established by AllianzGI US, its affiliates, or third parties. AllianzGI US, its affiliates and/or their personnel may have an ownership or management interest in a Private Fund. A minimum investment size may be applicable for participation in a Private Fund. Additional information concerning these funds, including advisory fees, is included in the relevant funds’ offering documents.
Registered Investment Companies
AllianzGI US provides investment management and administrative services to the following open- and closed-end registered investment companies: Allianz Funds, Allianz Funds Multi-Strategy Trust, Premier Multi-Series VIT, AllianzGI Institutional Multi-Series Trust, and a family of closed-end funds (collectively the “AllianzGI Funds”). (See Item 10 for a list of these funds and for additional information.)

AllianzGI US may select affiliated and non-affiliated investment managers (the “Sub-Advisers”) to provide portfolio management services to one or more of the AllianzGI Funds.

AllianzGI US provides administrative services to the AllianzGI Funds which may include: (1) matters relating to the operation of the AllianzGI Funds, including any necessary coordination among the Sub- Advisers, the custodian(s), the transfer agent, the dividend disbursing agent, the recordkeeping agent, the accountants, attorneys and other parties who are performing services or operational functions to the AllianzGI Funds, (2) compliance testing and oversight functions that are necessary to ensure compliance with the AllianzGI Funds’ investment policies, strategies, restrictions and guidelines, the federal securities laws, and other applicable laws, (3) maintenance of the books and records of the Funds in accordance with applicable federal and state laws, or supervising the maintenance of such books and records by third parties, and (4) preparation and/or supervision of the preparation of tax filings, regulatory filings, and semi- annual reports to Fund shareholders.
Managed Account/Wrap-Fee Programs
AllianzGI US also offers discretionary and non- discretionary investment advisory services through wrap fee programs (“Wrap Programs”) that are generally sponsored by banks, broker-dealers, Direct Clients (as defined below) or other investment advisers (each a “Sponsor”). Generally, in a Wrap Program, the client enters into an agreement with the Sponsor, who furnishes a variety of services for a single “wrap” fee.

The relevant agreements between or among the client, the Sponsor and AllianzGI US will generally outline the services that will be performed by the Sponsor, AllianzGI US, and others in the Wrap Programs and a limited number of clients who do not participate in a Wrap Program (“Direct Clients”). Typically, the Wrap Program Sponsor is responsible for determining whether a specific AllianzGI US strategy is suitable or advisable for an investor. For discretionary Wrap Programs, AllianzGI US is responsible for implementing securities transactions for each investor that are appropriate for the selected investment strategy (and, if relevant, in accordance with reasonable investment restrictions imposed by an investor and accepted by AllianzGI US). For non- discretionary Wrap Programs, AllianzGI US will provide a model portfolio and any subsequent changes to the Sponsor to be analyzed and implemented at the Sponsor’s discretion. Clients and prospective clients in Wrap Programs should carefully review the terms of the Wrap Program disclosure documents to understand the services, minimum account size, and expenses, and other terms and conditions of such Wrap Program.

Wrap Program client accounts are typically subject to minimum investment levels which vary by strategy. Accounts with fewer assets than the minimum investment levels indicated by the Sponsor may be accepted at AllianzGI US’s discretion. However, the performance of client accounts maintained below the standard minimum investment may vary widely from larger accounts. Client accounts with assets that fall below the minimum indicated by the Sponsor may be terminated by AllianzGI US.

Where AllianzGI US provides investment advisory services under non-discretionary model-based Wrap Programs, the model-based program Sponsor or overlay manager is responsible for investment decisions and performing many other services and functions typically handled by AllianzGI US in a traditional discretionary managed account program. Depending on the particular facts and circumstances, AllianzGI US may or may not have an advisory relationship with underlying model- based program clients. To the extent that this Form ADV Part 2A is delivered to Wrap Program clients with whom AllianzGI US has no direct advisory relationship, or under circumstances where it is not legally required to be delivered, it is provided for informational purposes only. Further, because a model-based program Sponsor or overlay manager generally exercises investment discretion and, in many cases, brokerage discretion, delivers performance reporting and other information relating to AllianzGI US’s services for which it exercises investment and/or brokerage discretion is generally provided for informational purposes only, and may not be representative of model-based Wrap Program client results or experience. AllianzGI US is not responsible for overseeing the provision of services by a model-based program Sponsor and cannot assure the quality of the Sponsor’s services.
Investment Model Delivery or Asset Allocation to
Unaffiliated Third Parties
AllianzGI US may also act as a non-discretionary sub- adviser by providing an investment model or asset allocations to unaffiliated third parties (“Model Receiver”), which may manage accounts participating in, or sponsor, programs or may be provided directly to clients.

In this case, AllianzGI US would typically enter into an investment sub-advisory agreement with the Model Receiver. The Model Receiver would normally have entered into an investment management or sub- advisory agreement with the unaffiliated third party.

Pursuant to the investment sub-advisory agreement entered into by AllianzGI US and the Model Receiver, AllianzGI US would provide investment recommendations or asset allocations to the Model Receiver for one or more of its investment strategies. The Model Receiver has the ultimate decision-making authority and discretionary responsibility for determining which securities are to be purchased and sold for the clients participating in the Programs or which asset allocations are made for a client.

AllianzGI US cannot guarantee or assure you that your investment objectives will be achieved. AllianzGI US does not guarantee the future performance of any client's account or any specific level of performance, the success of any investment decision or strategy, or the success of AllianzGI US’s overall management of any account. The investment recommendations AllianzGI US provides are subject to various market, currency, economic, political and business risks, and the risk that investment decisions will not always be profitable. Many of these risks are discussed in Item 8 below, which you should review carefully before deciding to engage AllianzGI US’s services.
Assets Under Management
As of December 31, 2019, AllianzGI US managed $140.9 billion (USD) in client assets, including $134.1 billion on a discretionary basis and $6.8 billion on a non-discretionary basis. please register to get more info

Separate Accounts
AllianzGI US furnishes investment advice to certain clients in separately managed accounts pursuant to a written investment advisory agreement with each client (the “Agreement”). In general, AllianzGI US bases its fees on its standard fee schedule that is in effect at the time the Agreement is entered into, and therefore a client’s fee schedule may be different from the standard fee schedule for new separate accounts. Advisory fees may also be negotiated with clients and therefore may vary from the standard fee schedule. Generally, either party may terminate an Agreement upon 30 day’s prior written notice. Upon termination, clients pay the pro-rata portion of fees through the termination date. In the event a client has paid quarterly fees in advance and terminates prior to the end of such quarter, AllianzGI US will refund the client the portion of fees paid that corresponds to the period from the date of termination to the end of such quarter.

AllianzGI US generally calculates its fixed advisory fees as a percentage of assets under management. AllianzGI US also may enter into a performance fee arrangement with a client pursuant to individualized negotiations, in accordance with all applicable laws and regulatory requirements. Other investment advisers may charge higher or lower fees than those charged by AllianzGI US for comparable services.

Performance based fee arrangements may create an incentive for an adviser to recommend investments which may be riskier or more speculative than those which would be recommended under a different fee arrangement. AllianzGI US generally charges advisory fees quarterly in arrears based on the average ending market value of a client account as of the last business day of each month in the calendar quarter. AllianzGI US may also charge advisory fees quarterly in advance based on the market value at the beginning of the quarter or based on the average daily value, and advisory fees may be charged more or less frequently than quarterly. For fixed fee arrangements, AllianzGI US will charge advisory fees in an account that is opened on a date other than the first date of a calendar quarter on a pro-rata basis from the date of inception of the account to the last day of the quarter. Unless otherwise agreed to with a client, AllianzGI US will adjust account values for purposes of calculating fees for each contribution and withdrawal of $100,000 or more during a billing period only if the net total of all such contributions and withdrawals exceed 5% of the account’s value at the end of the prior billing period.

AllianzGI US has preferred minimum account sizes, which are established based on the characteristics of the account and/or investment strategy. Preferred minimum account sizes vary, and are listed, by character or strategy, herein. In its sole discretion, AllianzGI US may accept accounts with asset values lower than the indicated preferred minimum. In such cases, the fees charged for investment advisory services may be higher than those fees indicated herein. AllianzGI US may terminate client accounts with asset values that fall below the minimum indicated. It is AllianzGI US’s general policy to charge fees to clients in accordance with the fee schedule in effect at the time the client first entered into an investment management or investment advisory relationship with AllianzGI US. However, in certain circumstances, fees may be subject to negotiation, and fees may be modified for particular clients. The reasons for such modifications may include, without limitation, the type of product provided, the complexity and level of service provided, the number of different accounts and the total assets under management for that client and related clients, the particular type of client, constraints imposed by substantial potential capital gains, required attendance at client meetings, other services provided by AllianzGI US, other administrative services provided, or other circumstances or factors that AllianzGI US deems relevant. A different fee schedule may apply if an account receives services that are more limited than full discretionary investment management, or if an account has specialized investment objectives, guidelines and restrictions. Certain accounts of persons affiliated with AllianzGI US may be managed without fees or at reduced fee rates.

When AllianzGI US and/or certain of its affiliates manage multiple accounts for a particular client, or for a related group of clients, fee calculation may be based on the total assets under management or a relationship fee discount or rebate may be available. Assets invested in investment companies generally are not considered for these purposes, although AllianzGI US may elect to consider such assets in fee calculations in special circumstances. AllianzGI US may also perform certain non-advisory services as an accommodation to certain clients.

To the extent that a client’s assets are invested in account overseen or held by the client’s trustee or custodian, the client should be aware that the trustee or custodian may also charge management or transactional fees with respect to such assets.

You may choose to be billed directly for fees, or you may authorize your custodian to pay AllianzGI US directly from your account. If you direct your custodian to pay AllianzGI US from your account, your custodian should send a quarterly statement directly to you, which should disclose transactions made in the account and AllianzGI US’s fees. AllianzGI US will generally receive paper or electronic copies of the custodian’s statements. AllianzGI US urges you to carefully review these statements, where applicable, and compare the official custodial records to any account statements AllianzGI US may send to you.

Separate Accounts Fees (Excluding Wrap Fee Programs) Standard separate account fees are as of the date of this brochure and can be found in Appendix 1.
Commingled Funds
Mutual Funds, Funds of Funds and Closed-End Funds In addition to the separate account services described above, AllianzGI US provides advisory or sub- advisory services to registered investment companies (“Funds”) managed by AllianzGI US, its affiliates or unaffiliated advisers. Additional information concerning a Funds’ investment management fees, and other expenses, is contained in the prospectus and statement of additional information of such Funds. Investors are advised to review prospectus and statement of information prior to investing in a Fund.

AllianzGI US’s compensation for acting as an adviser or sub-adviser to Funds is typically calculated as a percentage of a Fund’s average net assets and may vary depending on a number of factors including the investment strategy employed, the type of Fund, and the amount of assets under management. The market value of a Fund’s portfolio for purposes of calculating fees will generally be based on the Fund custodian’s valuation. An investment in a Fund will typically be reduced by the management fees and fund expenses.

AllianzGI US may also receive fees for providing or procuring administrative services to certain of the Funds. These administrative fees generally are based on a percentage of the average daily net assets of the respective Funds and are negotiated with the relevant Fund Board.

Private Funds AllianzGI US also provides advisory or sub-advisory services to Private Funds and it or its affiliates may act as managing member or general partner of certain Private Funds. Private Funds may be established by AllianzGI US, its affiliates, or third parties. AllianzGI US, its affiliates and/or their personnel may have an ownership or management interest in a Private Fund. A minimum account size may be applicable for participation in a Private Fund. Additional information concerning these Private Funds, including advisory fees, is typically included in the relevant Private Fund’s offering documents.

Certain Private Funds may include performance-based carried interest, incentive allocations, and other fees. The amount of, and the timing, manner and calculation of, the management fees and performance based fees for Private Funds are established by AllianzGI US, as modified by negotiations with investors in the Private Funds, and are set forth in the respective Private Fund’s offering documents received by each investor prior to investment in a given Private Fund. AllianzGI US or its affiliates may receive additional compensation in connection with management and other services performed (e.g., monitoring and other fees) for portfolio companies of the Private Funds. This practice may present a conflict of interest and may give the firm’s supervised persons and AllianzGI US an incentive to recommend investments based on the compensation received rather than the Private Funds’ needs. The management fees for the Private Funds may be offset by a portion of certain fees earned by AllianzGI US and their affiliates and by certain expenses incurred by the Private Funds as provided in the offering documents. AllianzGI US may reduce the management fee payable by any investor (including any affiliated investor). The Private Funds’ management fees are calculated and deducted by the fund administrator. Advisory fees for Private Funds are assessed by the Private Funds’ administrator. The Private Funds may enter into agreements with certain investors which in some cases may result in lower management fees and performance-based fees than disclosed in AllianzGI US’s standard fee schedule.

Managed Account and Wrap Fee Programs AllianzGI US also receives fees for providing discretionary advisory services to Wrap Program Sponsors. AllianzGI US does not maintain a standard fee schedule for discretionary advisory services to Wrap Programs. The advisory fees are typically negotiated with, and paid by, the Sponsor pursuant to an agreement between the parties. The advisory fees may vary by Sponsor and strategy but are generally between .25% and .75% of total assets under management in the respective Wrap Program or Direct Client account. Generally, fees are payable quarterly in advance. Direct Clients pay AllianzGI US a fee in accordance with their Agreements with AllianzGI US. Wrap-fee clients typically receive a brochure detailing the wrap-fee program from the Wrap Program Sponsor prior to their selection of AllianzGI US as investment manager. Fees and features of each program offered by the various Wrap Program Sponsors vary and therefore, wrap-fee clients should consult the Wrap Program Sponsor’s brochure for the specific fees and features applicable to their program.

In most cases, because the Sponsor does not charge an additional commission for brokerage transactions, it will usually be more cost effective to the client for AllianzGI US to execute transactions through the Sponsor instead of through other broker-dealers. However, if AllianzGI US determines that the Sponsor may not be in the position to provide best execution, AllianzGI US may select another broker-dealer to effect transactions which may cause the client to incur additional overall costs. Additional information on AllianzGI US’s brokerage practices is set forth below under Item 12 Brokerage Practices.

Investment Model Delivery/Asset Allocation to Third Parties AllianzGI US provides investment models to unaffiliated broker-dealers or investment advisers and in return may receive a portion of the advisory fee received by these unaffiliated parties from their clients. The advisory fees may vary by strategy and are negotiable but generally between 0.0% and .40% of total assets under management. Fees may be payable in arrears or in advance, typically on a quarterly basis.

Compensation from the Sale of Securities AllianzGI US’s supervised persons and related registered sales personnel typically market AllianzGI US investment capabilities to various prospects and intermediaries either directly through separate accounts and Wrap Programs or indirectly through Funds advised or sub-advised by AllianzGI US.

Certain of AllianzGI US’s supervised persons and related registered sales personnel also may be associated with an affiliated broker-dealer, and in that capacity may engage in marketing or selling activities with respect to shares or interests in Funds and Private Funds advised or sub-advised by AllianzGI US. (See Item 10 for more information about other financial industry activities and affiliations.) The Funds and Private Funds may pay an investment management or administrative fee to AllianzGI US in addition to one or more broker-dealers receiving sales commissions or distribution fees payable by AllianzGI US or an affiliate or the Funds or Private Funds or their respective investors, including 12b-1 fees, loads or contingent deferred sales charges.

Certain AllianzGI US supervised persons and related registered sales personnel may be compensated by AllianzGI US for successful marketing or selling activities with respect to shares or interests in Funds and Private Funds advised or sub-advised by AllianzGI US. Certain AllianzGI US supervised persons and related registered sales personnel do not receive transaction-based compensation.

Clients may purchase certain of the investment products recommended by AllianzGI US directly or through banks, broker-dealers and other investment advisers that are not affiliated with AllianzGI US. Doing so may result in fee and execution charges that are lower (or higher) than those charged by AllianzGI US or its affiliates.

Client Service and Sales AllianzGI US may be compensated directly with respect to services that it provides to one or more of its affiliated advisers. In other cases, affiliated advisers may fund the shared costs of AllianzGI US, including the compensation paid to sales and client service personnel.

Other Fees and Expenses In addition to the advisory fees described above, clients (and investors in Funds and Private Funds) will be subject to other fees and expenses in connection with AllianzGI US’s advisory services. Investors in Funds and Private Funds should carefully review the prospectus, offering documents or other disclosure documents for a description of fees and expenses. Transaction Charges Clients, except those who participate in a Wrap Fee Program where the Sponsor executes securities transactions, will directly or indirectly pay brokerage commissions, mark-ups, mark-downs, other commission equivalents and/or transaction costs related to transactions effected for their accounts to executing broker-dealers. As described in Item 12 Brokerage Practices, AllianzGI US will effect these transactions subject to its obligation to seek best overall execution. The different types of execution charges include:
• Commissions: the amount charged by a broker for purchasing or selling securities or other investments as an agent for the client and is disclosed on client’s trade confirmations or otherwise.


• Commission equivalents: an amount charged by a dealer for purchasing or selling securities or other investments in certain riskless principal transactions. Riskless principal transactions includes but is not limited to the purchase of equity linked notes, the commitment of capital, or transactions in which a dealer, after having received an order to buy from a client, purchases the security from another person to offset a contemporaneous sale to the client or, after having received an order to sell from a client, sells the security to another person to offset a contemporaneous purchase from the client.


• Markups: the price charged to a client, less the prevailing market price and is included in the price of the security.


• Mark-downs: the prevailing market price, less the amount a dealer pays to purchase the security from the client and is included in the price of the security.


• Spreads: the difference between the current purchase or bid price (that is, the price someone is willing to pay) and the current or offer price (that is the price at which someone is willing to sell) and is included in the price of the security. The difference or spread narrows or widens in response to the supply and demand levels of the security.

Custody Fees Funds and Private Funds will bear expenses associated with custody of the respective funds’ assets. For separate account clients, subadvisory clients and Wrap Program clients, AllianzGI US does not select account custodians on behalf of clients or serve as the custodian of client account assets. The custodian appointed by the client may charge custody and other fees that are in addition to the advisory fees payable to AllianzGI US.

Other Fees On behalf of its separate account clients, Wrap Program clients, and Fund clients, AllianzGI US may invest or recommend investment in Funds, exchange- traded funds (“ETFs”), and other pooled investment vehicles. This may include the investment in funds managed by Pacific Investment Management Company LLC (“PIMCO”). When AllianzGI US invests client assets in these investment vehicles, unless otherwise agreed and where permitted by applicable law, the client may bear its proportionate share of fees and expenses as an investor in the investment vehicle in addition to AllianzGI US’s investment advisory or sub-advisory fees. The investment vehicle's prospectus, offering documents or other disclosure documents contain a description of its fees and expenses.

In addition, AllianzGI US may invest client assets or recommend that clients invest in shares or other interests in certain funds to which AllianzGI US or its related persons provide investment advice or other services, and from which AllianzGI US and its affiliates (including PIMCO) receive advisory, administrative and/or distribution fees. To the extent that AllianzGI US invests client assets in an affiliated fund (including PIMCO Funds), AllianzGI US may, depending on the arrangement with a separate account client or Wrap Program Sponsor, and any legal requirements, waive investment advisory fees on the assets invested in such investment company, credit the account for the fees paid by the Fund to AllianzGI US's related persons, avoid or limit the payment of duplicative fees to AllianzGI US and its related persons through other means, or charge fees both at the investment company level and separate account level. To the extent that fees and expenses incurred by any Fund purchased for the client’s account are in addition to certain of the expenses covered by the managed account/wrap account fee, AllianzGI US and its affiliates may receive additional economic benefit when a client account is invested in such fund, and a conflict of interest may exist.

In certain instances in which AllianzGI US receives a minimum account fee because of a minimum account size and AllianzGI US invests client assets in an affiliated fund (including PIMCO Funds), AllianzGI US may credit the account for the fees paid by the Fund to AllianzGI US's related persons in order to avoid the payment of a duplicative fee to AllianzGI US or its related persons. This may result in a client directly paying less than another client with a similar minimum account fee that is not invested in an affiliated fund.

Private Fund Expenses Expenses are charged to Private Funds in accordance with the organizational, offering and/or governing documents, side letters or other agreements of such Private Funds or their portfolio companies (collectively, the “Governing Documents”). Such expenses may include, without limitation, organizational expenses, offering expenses, marketing expenses, audit and accounting expenses, taxes, administration expenses, custody expenses, legal expenses, valuation expenses, regulatory expenses, filing fees, insurance expenses, compliance expenses, investment and portfolio management expenses, research and due diligence expenses, consulting expenses, operating partner expenses, senior adviser expenses, travel and meeting expenses, broken deal expenses (including a proposed co-investor’s portion thereof) and liquidation expenses. In addition, expenses attributed to Private Fund portfolio companies may include, without limitation, directors’ fees, transaction fees, break-up fees, legal fees, advisory fees, investment banking fees, arrangement fees, consulting fees, monitoring fees and accelerated monitoring fees or other similar compensation.

The foregoing lists are not exhaustive and notwithstanding the foregoing, AllianzGI US’s arrangements may vary among Private Funds and, accordingly, the expenses allocated to one Private Fund may differ from another Private Fund. While certain expenses are paid directly by Private Funds or their portfolio companies, AllianzGI US may pay expenses directly and seek reimbursement from the Private Fund or portfolio company in accordance with the Governing Documents.

In the event expenses are attributable to (i) multiple Private Funds and/or portfolio companies or (ii) AllianzGI US and/or its affiliates and one or more Private Funds and/or portfolio companies, AllianzGI US will allocate such expenses in accordance with any contractual requirements set forth in the applicable Governing Documents. To the extent not addressed in such Governing Documents, AllianzGI will in its sole discretion determine the expense allocation, in each case in good faith and using its best judgment.

It is AllianzGI US’s policy to seek to allocate expenses in a manner which most equitably matches the benefits received by each allocable party. Generally, expenses attributable to more than one Private Fund are allocated pro rata based on assets under management. However, in certain circumstances the allocation methodology may be a “facts and circumstances” judgment made by AllianzGI US, taking into account such factors that it determines in its discretion to be relevant.

AllianzGI may allow third-party co-investors to participate in particular investments alongside one or more Private Funds (see Item 12). Where co-investors have participated in an investment, expenses related to such investments will be allocated to such co-investors and Private Funds and/or portfolio companies in accordance with the applicable Governing Documents and AllianzGI US’s expense policy. please register to get more info

SIDE-BY-SIDE MANAGEMENT
Performance-Based Fees In addition, or as an alternative to the standard fee arrangements described above, AllianzGI US may enter into performance fee arrangements with qualified clients pursuant to individualized negotiations. Performance-based fee arrangements may create an incentive for AllianzGI US to recommend investments which may be riskier or more speculative than those which would be recommended under a different fee arrangement.

Side-by-Side Management AllianzGI US may manage accounts with fixed management fees (“fixed fee accounts”) alongside other accounts with performance-based fees (“performance fee accounts”). There are potential conflicts of interest that arise due to the side-by-side management of fixed fee accounts with performance fee accounts as there may be an incentive to favor the performance fee accounts over the fixed fee accounts in the allocation of investment opportunities. AllianzGI US has implemented side-by-side policies and procedures designed to address this conflict to ensure that all clients are treated fairly and equitably. please register to get more info

AllianzGI US provides portfolio management services to a variety of clients including:


• individuals
• high net worth individuals
• corporations
• corporate pension and profit-sharing plans
• public pension and profit-sharing plans
• retirement plans
• Taft-Hartley plans
• charitable institutions, religious organizations, foundations, endowments
• investment companies, private investment funds and other commingled vehicles
• trusts
• variable annuity plans, variable insurance trusts
• insurance companies
• supranational organizations
• governmental entities
• investment advisers
• Wrap Fee Programs

Investors in Private Funds are generally required to be “accredited investors” as defined under Regulation D of the Securities Act and may be required to be “qualified purchasers” as defined under the Investment Company Act. Investors in certain Private Funds may be charged performance-based compensation if such investors are “qualified clients” as defined in Rule 205-3 under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). In addition, the Private Funds may require all investors to make representations concerning their eligibility, tax status, corporate and regulatory structure, sophistication as investors, and their ability to bear the risk of loss of their entire investment in the Private Fund. Certain Wrap Fee Program investors, shareholders in investment companies and investors in other pooled products (including investors in Private Funds) will not be deemed advisory clients of AllianzGI US. please register to get more info

INVESTMENT STRATEGIES AND RISK OF
LOSS
The following are broad descriptions of the methods of analysis and investment strategies employed by AllianzGI US. It should be noted that investing in securities involves risk of loss that clients should be prepared to bear.
METHODS OF ANALYSIS
Equities
Centralized Equity Research Platform AllianzGI US maintains a research staff that monitors a broad universe of stocks for comparative purposes (the “Research Department”). It makes use of contacts at various levels and who perform various functions within companies, and, where appropriate, with a company’s competitors, end-users, and suppliers. The Research Department’s analysts follow companies across a diverse mix of industries, geographies and sectors to determine whether they are good candidates for investment and communicate recommendations to relevant portfolio management teams. AllianzGI US may also receive proprietary research from and provide proprietary research (including Grassroots® Research Reports described below) to, certain investment management affiliates. (See response to Item 10 below.)

AllianzGI US places substantial emphasis on its Research Department’s own fundamental research. However, AllianzGI US also uses outside research in two ways. First, the opinions of a broad group of industry and company specialists are considered to supplement the analysis of AllianzGI US’s research staff. As described in Item 12, this research information may be provided by or through brokers who execute portfolio transactions for AllianzGI US’s clients. Second, “street” opinions, analyses and estimates on stocks, groups and economic data are monitored to further contribute to the available mix of information.

In addition to its fundamental traditional research activities, AllianzGI US uses research produced by Grassroots® Research, a division within the Allianz Global Investors group of companies. Grassroots® Research augments AllianzGI US’s own traditional research methods by seeking to verify (or disprove) market information pertaining to various companies or industries and by identifying and analyzing marketplace trends. AllianzGI US believes that Grassroots® Research provides a valuable complement to its traditional research methodology.

AllianzGI US maintains staff in its Grassroots® Research unit. Grassroots® Research also engages freelance journalists and field force personnel located throughout the world who collect data and other information by conducting interviews of various sources, including consumers, suppliers, service providers, as well as compiling information from trade sources, polls, and government agencies. The journalists prepare research reports that the Grassroots® employees then edit and finalize. The freelance journalist and field force personnel typically work as independent contractors and are compensated by broker-dealers who provide research services to AllianzGI US in exchange for commissions generated by AllianzGI US’s clients. (See response to Item 12 below.)

AllianzGI US also may, from time to time, utilize the research services of experts and medical professionals who are knowledgeable about medical specialties likely to be affected by medical, technological and economic developments in medicine, health care, and related areas. These experts and medical professionals may serve as independent contractors and may be compensated by broker-dealers who provide research services to AllianzGI US in exchange for commissions generated by AllianzGI US clients. (See response to Item 12 below.)

AllianzGI US may also employ quantitative analysts who contribute to the overall investment efforts of the firm. Such analysts’ main focus is to provide risk and performance analyses of portfolios to assist in future investment decisions.

Fundamental Growth Equity Strategies AllianzGI US’s primary equity strategies emphasize a team approach to asset management. Portfolio management teams take advantage of the global resources of the Allianz Global Investors group of companies to select securities. The objective is to develop for each client a diversified, yet concentrated portfolio of high-quality growth companies selling at reasonable prices.

New purchase ideas are primarily generated by AllianzGI US’s fundamental research department, Grassroots®, and the portfolio management teams (domestic and international). As discussed above, external research is also used to further inform AllianzGI US’s investment professionals. Before purchasing their securities, all companies are evaluated for their growth and quality characteristics. All stocks are evaluated on their valuation characteristics. AllianzGI US seeks to invest in companies that offer long-term sustainable growth in earnings, revenues, or cash flow, have strong management and financial statements, and offer good relative and absolute risk-adjusted return characteristics. AllianzGI US may also, from time to time, invest in cyclical and semi-cyclical companies.

AllianzGI US may sell a company’s stock if it believes that a company’s growth or quality has been impaired, or when it believes that the risk-adjusted return characteristics are no longer attractive. A company may also be sold when a price or valuation target is reached or when better alternatives are identified.

Portfolio management teams construct their investment portfolios in accordance with specific client investment objectives, guidelines and restrictions. Portfolio managers’ stock selection and industry outlooks are informed by significant input from the research analyst teams. The resulting portfolios aim to be diversified, yet concentrated, and are typically composed of issuers that AllianzGI US believes are high quality growth companies offering above average risk-adjusted return prospects.

For those clients who choose to be fully invested at all times, cash positions generally will average between 2% to 5% or less, except when additional cash is necessary for transaction settlement, while reinvestment decisions are being made. For other clients, whose investment objectives, guidelines, and restrictions permit higher cash levels, AllianzGI US may, from time to time, increase the cash levels in the account to the extent that market conditions warrant. Cash levels also may be increased in anticipation of expected client withdrawals. The percentage of each type of investment in a particular account is likely to vary, based on a number of factors, including, but not limited to, market conditions, relative investment opportunities, and each client’s particular investment objectives, guidelines, and restrictions.

In some instances, quantitative methods may be utilized in the fundamental-based strategies. Quantitative methods may include proprietary modeling for options overlay strategies.

US Small Cap Strategies The US Small Cap Growth investment team undertakes their own research to confirm if a new idea meets their investment criteria of positive change, sustainability and timeliness, or if an existing holding no longer meets those criteria.

To identify companies with signs of positive fundamental change and sustainability that are also mispriced by the market, the investment team relies on the extensive resources of Allianz Global Investors’ global research platform to narrow the investable universe. Investment team members also use their industry contacts to uncover new information as it develops and have the experience and expertise to understand how it will affect the companies the investment team follows.

Approximately 50% of research used by the strategy is internal and 50% comes from external sources. This mix helps investment team members to look at each investment idea from multiple perspectives and confirm a stock’s investment thesis.

The US Small Cap Growth team regularly discusses company, supplier, customer and competitive information with their many management contacts. This interaction provides an invaluable source of information on the key differences between competing companies. The investment team meets with company management at their office, in a company's office or at industry conferences.

The investment team seeks multiple perspectives, both positive and negative, on every company under consideration. This allows the investment team to cross-verify and challenge its thesis on each company that is followed. The investment team does not use external contacts for their recommendations or price targets, merely for factual information.

Technology integrates and strengthens the entire research and portfolio management process. The investment team uses a proprietary research notes database, designed to document research notes and share fundamental information. The firm's internally developed systems interface with multiple real-time company, industry and market-level fundamental and technical data, as well as analyst reports and news feeds. These include Bloomberg, Compustat, FactSet, First Call, I/B/E/S Express, Reuters, WONDA and Worldscope.

In addition, the open floor architecture in the San Diego office, in which all investment professionals share one common space, promotes easy exchange of information and insights regarding investment candidates and portfolio holdings. This allows for a continuous exchange of information and ideas among the US Small Cap Growth team.

Systematic Strategies The Systematic Investment team believes ongoing research is critical to deliver superior investment results in the future. As such, all investment members of the team contribute to the Systematic team strategies via alpha insight, risk model and portfolio construction research, which encompasses the majority of their day. The goal of research is to add new factors, improve existing factors, or occasionally remove factors which have been arbitraged by the market. The team’s investment professionals communicate informally on a daily basis given their open office architecture which promotes a collaborative, collegial work environment. There is more formal interaction among investment professionals on the team through their weekly research meetings, whereby alpha, risk and portfolio construction research is critically evaluated. The integrated approach to portfolio management and research provides important insight into key drivers of investment performance and ideas for future research initiatives. Once an idea is generated, the research process continues into the factor design stage, whereby the team collects data, validates the information and builds a mathematical formula to harness the opportunity. The team then conducts factor testing on two levels. The first is to see how the factor performs on a stand-alone basis, including its ability to generate returns, how fast the factor predictive power decays, and how performance correlates from one month to another. The second is through a multi-simulation where we measure how well the factor performs in combination with other factors in the model, including the difference in total returns, as well as across industries, sectors, countries and market capitalization. We also consider how the risk profile changes, and how the factor performs in various market environments. A factor is implemented should it improve results and offer low correlations to existing factors in the model. The alpha model, risk model and portfolio construction research process takes approximately six to nine months for each factor from the idea generation stage to the implementation stage in the model. There is only about a 10% success rate of a factor making it through the entire process, as the hurdle to add a new factor gets higher as the model is evolved over time. Value Strategies The Value Equity US team applies a combination of quantitative and fundamental elements to their research process. Quantitative screens identifying low P/E, dividend-paying stocks are applied to reduce the investment universe in advance of traditional, fundamental research. The team’s bottom-up research is very similar to credit analysis and is designed to determine whether investment candidates are truly good value or simply undervalued for a good reason. The team’s research focuses on balance sheets and cash flow statements, looking for areas of concern or poor quality, as well as company presentations, earnings calls, sell-side and third-party analysis, and financial statement footnotes, which the market can overlook. The team may also examine company business models and determine the level and sustainability of any competitive advantages a candidate may hold with regard to their relationships with competitors, customers, suppliers and substitute products.

Best Styles Strategies The Best Styles systematic equity research focuses on the analysis of quantitative factors in investment style research and structural sources of outperformance. Our continuous research and development work ensures that we stay at the forefront of investment style risk management and generating outperformance. The investment team’s style research draws upon more than 150 different stock selection criteria, grouped into five different groups: Value, Momentum, Earnings Change, Growth and Quality. An investment style is defined by a combination of bottom-up stock selection factors. To calculate an investment style such as Value, several bottom-up factors, such as price-to-book, price-to-earnings, price- to-cash flow and dividend yield, are combined in an equal-weighted score. All stocks in the universe are then ranked according to this investment style score. The ranking is done on a region-by-region and sector- by-sector basis. The stocks that are ranked in the top 20% are then classified as Value, and similarly so for the other investment styles. The investment style profile of individual stocks can change significantly over time. In addition to defining the investment styles and to determining a diversified mix of these investment styles, we also conduct ongoing analysis of additional risk factors within investment styles.

Fixed Income

Income and Growth Strategies The Income and Growth Strategies investment team follows a disciplined, fundamental bottom-up research process. Ideas are generated from a variety of traditional and quantitative sources that make-up the team’s research platform. All members of the investment team are responsible for bringing new ideas to the group. All members of the investment team serve as generalists when identifying new opportunities.

During the idea generation phase, the investment team screens the entire investment universe for issuers demonstrating an ability to improve their fundamental characteristics. The companies/issues selected for the portfolio exceed minimum credit statistics and exhibit the highest visibility of future expected operating performance.

After identifying a potential investment idea, the fundamental strength of the company is assessed. Fundamental research focuses on identifying companies' innovation, growth in market share, improving operating margins, and new product launches that may result in positive earnings estimate revisions. Companies with revenue growth and margin expansion create positive cash flow and healthy balance sheets. To determine whether the investment team's findings are sustainable, the investment team conducts a detailed analysis of the operating statistics of candidates. This analysis gives the investment team confidence that these companies have a financial foundation conducive to growth. They analyze issuers' balance sheets, cash flow statements and income statements, as well as the security's terms and covenant protections. The investment team utilizes their proprietary Upgrade Alert Model to conduct the analysis. Macro factors are assessed at the individual issuer level.

US Short Duration Strategies The US Short Duration High Income investment team undertakes in-depth analysis on every credit in the strategy’s short duration, high yield universe to identify those companies which offer the most compelling risk-return trade-off. Roughly 85% of the investment team’s research effort is conducted internally with 15% coming from external sources.

The investment team uses a proprietary tool to assist in credit research, the Credit Scoring System model. This model tallies approximately 48 different credit metrics within three qualitative and three quantitative categories. This model allows the investment team to easily identify a company’s strengths and weaknesses and reveal potential risk factors. Given its depth, this is a valuable tool when evaluating overall credit quality.

The sources of external research are company reports, credit service reports and research reports on industries and individual companies from Wall Street brokers. Subscriptions to prominent credit research providers are also utilized.

The investment team may also communicate with company management through conference calls, direct contact, and industry conferences. The investment team places a high value on communication and prefers those companies whose management teams are accessible.

US Core Fixed Income Strategies The investment team narrows the investment universe to focus on issuers that offer the highest level of impact and to ensure research resources are allocated accordingly. Considerations in this process include overall level of liquidity, and ability to source securities. Impact issuers are determined by certain factors, including percent of benchmark, pricing opportunities, and a subjective assessment of our ability to add value. This level of coverage also gives consideration to maintaining capacity when market conditions warrant resources be allocated to new opportunities. The investment team utilizes proprietary financial modeling, stress testing, quantitative models, and assessments of collateral, bond structures, indentures, and liquidity to produce proprietary internal credit assessments and risk vs reward analysis of issuers. Portfolio managers utilize these inputs to select securities that produce strong risk-adjusted returns.

Global Fixed Income Strategies Research plays a pivotal role in the investment process and most of the investment team’s research is conducted internally. The team uses a proprietary financial and economic database alongside external data sources. International organizations such as the OECD, IMF and World Bank are good sources of primary data; central banks and national statistics agencies are also generally reliable sources. Consensus Economics is a good source of economic growth / inflation expectations data. In many cases the data is accessed electronically through Thomson Reuters Datastream and Bloomberg. The team also uses specialist Asset Backed Security research through Global Credit Research Partners Ltd, an external consultancy.

To support their research effort, credit analysts have access to rating agencies and also to third party data providers. At the heart of the process is the formulation of independent credit evaluations and investment recommendations by our credit analysts; however, these kinds of external data sources fulfill an important supporting role in giving them the fullest possible information base to work from.

Advanced Fixed Income Strategies Research for the Advanced Fixed Income strategy is based on advanced proprietary quantitative models. These models allow the investment team to understand the complex relationships between numerous economic variables and to reduce the complexity of these relationships to make them more palatable and concrete for the portfolio manager. Research covers:

Global Sovereign Bonds – Using a Debt Sustainability Model and RE-Rating Model, the investment team assesses the improvement or deterioration over time in the debt-to-GDP position for each country as well as their perceived willingness to repay their debts.

Global Covered and Securitized Bonds – Research covers the legal framework, macroeconomic environment, standalone issuer strength and covered pool quality for covered and securitized bond issuers globally.

Global Corporate Bonds – The research process includes dissecting the investment universe into segments based on duration buckets and rating classes and comparing the expected returns and volatilities of different segments of bonds; individual fundamental analysis based upon issuer financial strength, issuer business model strength, event risk and country risk; and a Rich/Cheap analysis focused on ranking the most bonds within particular risk clusters to determine the most attractive investment opportunities.
Multi Asset
Target Date Strategies The Asset Allocation portfolio structuring process is based on underlying account investment objectives, and translating those objectives into specific measurable expected risk-return profiles. The general portfolio strategy utilizes (1) a portfolio of defensive assets intended to help to preserve principal, provide current income and hedge inflation (“Defensive Assets”); (2) a portfolio of return-generating assets that emphasize after-inflation capital growth (“Return- Generating Assets”); (3) strategy-specific objectives that define the percent to invest in Defensive and Return-Generating Assets, respectively; and (4) risk- budgeted and risk-managed portfolios that are measured by total portfolio volatility, portfolio income, and portfolio tracking error. Defensive Assets typically belong to the fixed-income asset class. Return-Generating Assets typically belong to the fixed-income, equity, real estate, commodity and alternative asset classes. The resulting strategy is a combination of Defensive and Return-Generating Assets that matches the expected risk-return profile.

Dynamic Multi-Asset Plus Strategies Dynamic Multi Asset Plus strategies seek to provide a lower risk alternative to static balanced and multi asset portfolios in combination with enhanced expected returns over a market cycle. Our solution benefits from several unique components such as an active approach to asset allocation which combines trends and fundamental assessments and offers risk mitigation in times of market stress. Optional modules like the addition of further asset classes to capture thematic trends or selection strategies for equities and bonds complete our fully integrated solution.

Alternatives

Structured Products Strategies For its Structured Products strategies, AllianzGI US analyzes the statistical behavior of one or more indices to develop proprietary expected probabilities of the magnitude of future index movements. From this analysis, AllianzGI US constructs option spreads using puts and calls on the indices in order to optimize the strike and time-to expiration of each option position, as well as the probability-adjusted size of the profit zones.

US Private Credit Strategies Credit Solutions Strategies The investment team generally looks to identify compelling fundamental value in companies that are believed to be operationally sound and have a sustainable competitive edge. The team generally focuses on identifying value in companies with some of the following attributes:


• Competitive Advantage
• Compelling Valuation
• Growth Expectations
• Market Leaders
• Strong Management
• Sound Governance
• Equity Upside

Loan Funds Strategies The Loan Funds strategy is to invest principally in senior secured corporate loans. The team actively monitors the loan portfolio and focuses on early identification of investment risk. The team generally evaluates each investment based on the issuing company’s overall credit risk and asset coverage measures such as cash flow coverage ratios, corporate asset values, the investment’s seniority in the investment’s capital structure, the expected volatility of corporate cash flows and asset values, and the issue’s particular credit covenants.

Infrastructure Debt and Infrastructure Equity Strategies The investment teams perform a thorough due diligence review of each transaction that includes financial, technical, insurance, and legal analysis. The team seeks to have an understanding of the underlying asset and potential risks in order to structure the transaction accordingly with appropriate risk management. The team may use specialized advisors in this due diligence process. For example, technical advisors that assess technical complexity may be utilized and may have oversight during construction periods.

US Private Placement Strategy The AllianzGI Private Placement investment strategy seeks to invest in the private debt issued by high quality companies and other entities. AllianzGI offers institutional investors managed accounts customized to each client’s needs. Private placement bonds provide an investor with enhanced portfolio diversification, covenant protection, and potential spread premium to bonds available in the public markets. In addition, a broader range of longer maturities is available in the private debt markets, which may fit a client’s needs for longer-lived, income-producing investments. The Allianz Global Investors private placement team draws upon a shared wealth and breadth of investment experience across several fixed income asset classes and market cycles: the average investment experience of the team is 20 years.

INVESTMENT PROCESSES The following describes the investment process for each of AllianzGI US’s investment strategies:
Equities

Investment Process – US Large Cap Growth Strategies (US Large Cap Select, US Large Cap Core and US Focused Growth) The investment process for domestic large-cap equity accounts is coordinated through the Large Cap Portfolio Management Team (the “Large Cap PMT"). Through rigorous fundamental analysis of company and industry dynamics, the Large Cap PMT seeks to identify high quality companies with superior growth rates. A four-step process is undertaken in the management of mid-cap portfolios: (1) idea generation based on bottom-up internal and external resources and a top-down overview, (2) stock selection based on analysis of growth, quality and valuation factors, (3) portfolio construction building diversified portfolios with built-in risk controls, and (4) monitoring and review that aims to improve the overall investment process.. The Large Cap PMT meets daily and has frequent interactions with AllianzGI US’s research analysts, Grassroots® analysts, and the equity traders.

The Large Cap PMT makes investment decisions through a disciplined voting procedure. Votes are recorded and securities are re-voted at frequent intervals. While the portfolio manager for each account retains the ultimate authority over individual buy and sell decisions for that account, buy and sell decisions by individual portfolio managers that differ from the Large Cap PMT’s conclusions are discussed at the Large Cap PMT portfolio construction meeting. Dispersion is also controlled using quantitative methods.

Investment Process – US Mid Cap Growth Strategy The investment process for mid-cap products is managed on a team basis by the portfolio managers. Through rigorous fundamental analysis of company and industry dynamics, the team seeks to identify high quality companies with superior growth rates. A four- step process is undertaken in the management of mid- cap portfolios: (1) idea generation based on bottom-up internal and external resources, quantitative screens and a top-down overview, (2) stock selection based on analysis of growth, quality and valuation factors, (3) portfolio construction building diversified portfolios with high active share and built-in risk controls, and (4) monitoring and review that aims to improve the overall investment process. The Mid Cap Portfolio Management Team meets daily and, as a group, interacts frequently with research analysts, Grassroots® analysts and the equity traders. The mid cap investment process utilizes a bottom-up approach to investing. Individual stock holdings, and to a certain extent, industry weightings will differ among mid- capitalization accounts. Variances are reviewed regularly for appropriateness.

Investment Process – US Small Cap Growth Strategies (US Micro Cap, US Ultra Micro Cap, US Small Cap Growth, Small Cap Blend, and US Small-Mid Cap Growth) The US Small Cap Growth team follows a bottom-up process for its strategies which focuses on identifying small cap growth companies that exhibit strong signals of positive fundamental change, sustainable growth characteristics and timely market recognition. Members of the US Small Cap Growth team use their industry contacts to uncover new information as it develops, and have the experience and expertise to understand how it will affect the companies the team follows.

Investment Process – Disciplined Equity Strategies (Disciplined US Core) The Disciplined Equities Group manages the Disciplined US Core Equity product using an investment management process that combines quantitative screening with fundamental company research (including Grassroots® Research). It is a four-step bottom-up stock selection investment process which includes: (1) initial idea generation using a screening strategy, (2) valuation and stock selection using in-depth company research, (3) portfolio construction and risk control that builds a diversified portfolio that generates performance mainly from bottom-up stock selection, and (4) monitoring and review that aims to improve the overall investment process.

The Disciplined Equity team believes in investing in under-valued companies undergoing positive change. The team believes investor sentiment fluctuates more widely than underlying fundamentals and that low expectation/valuation provides more downside risk protection and more upside potential. The team believes this results in mispriced opportunities. The team seeks to identify these opportunities through their disciplined investment process, which is built upon stock screening and fundamental research.

Investment Process – Private Client Group (Targeted Growth (Tax Managed), Targeted Core Growth (Tax Managed), Balanced) The Private Client Group employs a team approach to investment management. The Private Client Group interacts daily with the Large Cap PMT, research analysts, and Grassroots® Research, and regularly with the Mid Cap PMT. The equity investment approach is to seek to identify companies with above average earnings growth prospects that can be held for a considerable period of time in order to defer payment of capital gains taxes. Tax consequences can be critical to an investor’s overall return and, as appropriate, investment performance is evaluated on both a before-tax and after-tax basis.

Investment Process – Sector/Thematic Strategies Technology The Technology team seeks long-term capital appreciation by investing in both domestic and international companies that use technology in an innovative way to gain a competitive edge. The Technology team selects stocks by identifying major growth trends within technology; especially discontinuities offering order-of-magnitude improvements. The team seeks companies possessing superior management, strong balance sheets, differentiated products or services, substantial unit growth, strong commitments to research and development, and a steady stream of new products or services. The team considers country and sector/industry selection, as well as capitalization range decisions, to be primarily the result of identifying superior securities, although benchmark allocations are monitored to ensure maintenance of an appropriately diversified portfolio.

Global Agricultural Trends The Global Agricultural Trends investment team believes global population growth and rising incomes, particularly in Emerging Markets, has led to changes in how much, what, and how the world eats. The team seeks investment opportunities along the entire food supply chain, from companies that offer solutions to increase output per acre, to companies that process and distribute food to end consumers. The strategy invests globally, focusing on companies that stand to benefit from:

(1) Increasing and changing agricultural raw materials production (upstream) (2) Rising food demand and changing preferences, including food processing & distribution (downstream).

The team targets companies that possess superior management, strong balance sheets, differentiated products or services, substantial unit growth, strong commitments to research and development, and a steady stream of new products or services, and that meet rigorous growth, quality, and valuation criteria. Global Water The Global Water team seeks to invest in companies that fall within the broadly defined and rapidly growing eco-sector of clean water. Water related activities are those that influence the quality, availability or demand of water including: water production; water conditioning; sewage treatment; engineering services. Stocks are selected on a fundamental bottom-up basis with no ethical or sustainability screening applied. The Global Water strategy philosophy recognizes that the environment has a significant and increasing impact on businesses and financial markets. Working in a team-oriented meritocracy, our investment professionals focus on constructing portfolios offering attractive risk-adjusted returns. Global Sustainability Global Sustainability is a Sustainable & Responsible Investment (SRI) strategy which considers Environmental, Social and Governance (ESG) criteria within the investment process in order to generate competitive financial returns and a positive and measurable impact on society. The portfolio managers use bottom-up fundamental analysis to invest in companies with superior financial and ESG performance. As part of AllianzGI’s Global Equity Team, portfolios consist of c.50 high-conviction, globally diversified stocks. The strategy takes a ‘Best in Class’ approach to SRI, seeking to own companies which outperform sector peers on ESG criteria. ESG performance is assessed using AllianzGI’s proprietary SRI Ratings model.

Green Bond The green bond strategy philosophy is to mobilize capital to finance the energy and climate transition. To do so, the Green Bond team seeks to invest in Green Bonds defined as interest-bearing securities that are issued in order to finance projects that the portfolio managers believe are intended and/or likely to have a positive impact on the environment. The strategy expects to finance “green” projects including, but not limited to, those related to renewable energy (including wind, solar, geothermal and biofuel), sustainable land use and waste management, energy efficiency, greenhouse gas emissions reductions and clean water, with an active and fundamental investment style. Global Natural Resources The Global Natural Resources strategy combines top- down views of commodities and regional economies with bottom-up analysis of natural resource-related companies within four sectors: energy, agriculture, materials and industrials. All positions are supported by what the portfolio manager believes are the most promising investment themes within the global natural resources-related universe.

Health Sciences The Health Sciences strategy seeks to profit from global trends in health-care related sectors. The strategy pursues a more concentrated approach to investing in traditional health care companies, and focuses on companies that are delivering innovative and profitable drug treatments and low-cost health care solutions.

Biotechnology The Global Biotechnology strategy seeks to invest in high-quality healthcare companies that are delivering innovative and profitable drug treatments and value to the health care system. We believe these factors drive solid long term earnings growth and reasonable over- valuations for global biotechnology-related stocks in general.

Global Artificial Intelligence The Global Artificial Intelligence strategy seeks to invest in companies across a broad range of industries and technologies positioned to benefit from the evolution and disruptive power of artificial intelligence. The strategy considers artificial intelligence to mean the use of systems or other technologies that are able to either perform tasks that normally involve human intelligence, such as visual perception, speech recognition, and decision-making, or leverage data-driven insights to deliver new solutions. The portfolio managers believe that innovative companies in any sector that are able to leverage artificial intelligence to transform their businesses will be well positioned to gain market share, outperform industry peers and create superior shareholder value over time. In addition, the portfolio managers believe that artificial intelligence can be used to disrupt industries through (i) the deployment of new artificial intelligence infrastructure and secondary technologies as building blocks to enable new capabilities, (ii) the development of new artificial intelligence software applications to make smarter insights and decisions, (iii) the adoption of artificial intelligence in key business processes to enhance operations and/or develop new products and services that drive a competitive advantage and (iv) other key trends and developments.

Investment Process – Asia Strategies

China Equity The China Equity team aims to provide investors with long term capital appreciation through investment in the shares of companies listed in China and companies located elsewhere which have significant interest in China. The team’s philosophy and process aims to add value in three key areas, namely stock selection, portfolio construction, and implementation. Research coverage is shared between the country specialists and the regional sector analysts. Country specialists tend to cover those companies that relate to local factors more than any regional (or global) factor. Sector specialists cover the larger capitalized names that could be recommended for regional or global portfolios. The team’s goal is to build integrated portfolios on a bottom-up basis, comprising the best companies in the region. Working in a team-oriented meritocracy, our investment professionals focus on constructing portfolios offering attractive risk-adjusted returns.

China A-Share Equity The China A-Share Equity strategy invests in stocks of companies incorporated in China and listed as A- shares on the stock exchanges of Shanghai or Shenzhen. The Strategy may also invest in companies that are incorporated in China or generate a predominant portion of their profits (maximum 20%) there.

Korean Equity The investment objective of the strategy is to seek long-term capital appreciation through investment in securities, primarily equity securities, of Korean companies. The investment team may invest in a broad spectrum of Korean industries, including, as conditions warrant from time to time, automobiles, cement, chemicals, construction, electrical equipment, electronics, finance, food and beverage, international trading, machinery, shipbuilding, steel and textiles. In selecting industries and companies for investment, the team considers overall growth prospects, competitive position in export markets, technology, research and development, productivity, labor costs, raw material costs and sources, profit margins, return on investment, capital resources, government regulation, management and other factors. Investment Process – Europe Strategies Europe Equity Growth Select The Equity Europe Growth approach is to invest in an integrated portfolio, comprising the attractive growth stocks in Europe selected on a bottom-up basis. The focus of this product is on structural growth not yet reflected in the company’s stock price. The team seeks to identify stocks with structurally above average earnings and cash flow growth which the market has not yet fully anticipated. These companies are characterized by secular growth drivers, technological leadership and a superior business model.

International Growth The International Growth approach is to invest in a portfolio of high-conviction positions that they believe present fully or partially undiscovered opportunities for structural growth. The team employs a disciplined process that primarily focuses on three fundamental business characteristics: growth, quality, and valuation. The team aims to identify companies that are able to deliver structure above-average earnings and cash-flow growth characteristics that the market has not yet fully factored into valuations. The investment process is based on bottom-up, fundamental company research.

Investment Process – Systematic Strategies (US Systematic Small Cap Growth, US Systematic Small Cap, Global Small Cap Opportunities, Emerging Markets Systematic, Emerging Markets Consumer, Emerging Markets Small Cap and US Micro Cap Opportunities) The Systematic team seeks to invest in equities benefitting from change not yet fully reflected in the market. At its core, the team believes investor behavioral biases contribute to market inefficiencies. The quantitative process begins with a proprietary alpha model which blends behavioral and intrinsic/valuation factors. This multi-factor approach is integrated with a highly responsive and adaptive risk model to form the basis of portfolio construction. Additionally, all investment recommendations are thoroughly vetted on a stock-by-stock basis to confirm the investment thesis before a purchase or sale. Investment Process – Best Styles Strategies (Global Developed, Global All Country, US, Europe, Global Managed Volatility, International, All Country International, and Emerging Markets) The investment team seeks long-term capital appreciation by creating a diversified portfolio of global equities. The portfolio managers begin with an investment universe of approximately 9,000 equity securities and then assess individual securities using a disciplined investment process that integrates top- down investment style research and proprietary fundamental bottom-up company specific research with a quantitative risk-management process. The portfolio managers combine a range of investment style orientations, such as Value, Earnings Change, Price Momentum, Growth, and Quality (each described below), in seeking positive relative returns versus the benchmark index and in managing the overall portfolio’s sensitivity to broader market movements (or “beta”). The final portfolio is constructed through a portfolio optimization process that seeks to maximize exposure to equity securities with attractive investment style characteristics, subject to region, sector, capitalization, security and other constraints. The Value investment style orientation selects equity securities that the portfolio managers believe have attractive valuations based on metrics including dividend yield and price-to-earnings, price- to-cash flow and price-to-book ratios, as compared to other equity securities in the investable universe. The Earnings Change investment style orientation is designed to capture shorter-term, trend-following investment opportunities and generally selects equity securities with positive earnings revisions, announcements or surprises. The Price Momentum investment orientation is also trend-following and generally selects equity securities with positive price momentum and relative strength within the investable universe. The Growth investment style orientation generally selects equity securities with expected and historical earnings and dividend growth. The Quality investment style orientation generally emphasizes equity securities with strong profitability and historical earnings stability, and considers additional factors, such as whether a company has improving margins, positive net income, positive operating capital, decreasing long-term debt and high-quality earnings, among others.

Investment Process – Value Strategies

All-Cap Value This strategy seeks long-term growth of capital and income. The portfolio managers use a value investing style focusing on companies with low valuations across a broad range of industry groups. This strategy normally invests a significant portion of its assets in common stocks that the portfolio managers expect will generate income (for example, by paying dividends). This strategy will normally have some exposure to small, medium and large capitalization companies, although the portfolio manager reserves the flexibility to vary this strategy’s relative weightings to each capitalization range based on a number of factors.

Dividend Value This strategy seeks long-term growth of capital and income. The portfolio managers use a value investing style focusing on companies with low valuations across a broad range of industry groups. This strategy normally invests a significant portion of its assets in common stocks that the portfolio managers expect will generate income (for example, by paying dividends). This strategy will also invest a significant portion of its assets in common stocks of companies with market capitalizations greater than $2 billion (USD). Investable universe includes ADRs.

International Value This strategy seeks long-term growth of capital and income. The portfolio managers use a value investing style focusing on companies with low valuations across a broad range of industry groups. This strategy seeks to achieve its investment objective by investing in non-US companies (up to 50% of which may constitute emerging markets securities), a significant portion of which the portfolio managers expect will generate income (for example, by paying dividends). Investable universe includes ADRs and foreign ordinaries with an associated ADR.

Large-Cap Value This strategy seeks long-term growth of capital and income. This strategy seeks to achieve its investment objective by normally investing in a universe of the 400 largest publicly traded companies (in terms of market capitalization) in the United States. The portfolio managers use a value investing style focusing on companies with low valuations across a broad range of industry groups. This strategy normally invests a significant portion of its assets in common stocks that the portfolio managers expect will generate income (for example, by paying dividends).

Mid-Cap Value This strategy seeks long-term growth of capital and income. This strategy primarily invests in common stocks of companies with medium market capitalizations. This strategy currently defines the medium market capitalization companies as those companies in the bottom 800 of the 1,000 largest North American companies (in terms of market capitalization) that are publicly traded on US securities markets. Investable universe includes ADRs. The portfolio managers use a value investing style focusing on companies with low valuations across a broad range of industry groups. This strategy normally invests a significant portion of its assets in common stocks that the portfolio managers expect will generate income (for example, by paying dividends). Mid Cap Value 100 This strategy seeks long-term growth of capital and income. This strategy primarily invests in common stocks and other equity securities of companies with small to medium market capitalizations (between at least $3 billion and up to the largest company held in the Russell Midcap Index). The portfolio managers use a value investing style focusing on companies with low valuations across a broad range of industry groups. This strategy normally invests a significant portion of its assets in common stocks that the portfolio managers expect will generate income (for example, by paying dividends). This strategy may invest up to 25% of its assets in non-US securities, without limit in ADRs.

Small-Cap Value This strategy seeks long-term growth of capital and income. This strategy invests primarily in common stocks of companies with market capitalizations between approximately $100 million and $4.0 billion (USD). The portfolio managers use a value investing style focusing on companies with low valuations across a broad range of industries. This strategy normally invests a significant portion of its assets in common stocks that the portfolio managers expect will generate income (for example, by paying dividends). Accounts invested in the Small Cap Value strategy normally hold approximately 100 stocks. The team also manages a similar Small Cap Broad strategy. The Small Cap Value investable universe includes ADRs, whereas the Small Cap Broad investable universe includes ADRs and foreign ordinaries. AllianzGI US also manages a Small Cap Concentrated strategy, which follows a process similar to the Small Cap Broad strategy. The holding sizes are targeted at 3% equally-weighted. The Small-Cap Concentrated strategy is currently offered only to managed account/wrap-fee program accounts managed by AllianzGI US.

Emerging Markets Value This strategy seeks long-term capital appreciation. This strategy primarily invests in equity securities of companies that are domiciled in or tied economically to countries with emerging securities markets – that is, countries with securities markets which are, in the opinion of the portfolio managers, less sophisticated than more developed markets in terms of participation by investors, analyst coverage, liquidity and regulation. This may be achieved by investing in ADRs and other depositary receipts, in addition to direct investments in the securities of non-US issuers. This strategy may also invest in derivative instruments such as participatory notes.

Investment Process – Wrap Fee Programs AllianzGI US offers the All Cap Value, Dividend Value, Large Cap Value, Mid Cap Value, Small Cap Value, Global Sustainability, Focused Growth, International Growth, and Dynamic Multi Asset Plus strategies to its Wrap Program clients. See descriptions of each of these strategies earlier in this section.

AllianzGI US also offers the following Wrap Fee Programs:

Long Term Themes The strategy seeks to attain long term capital growth by investing in global equity securities within a diversified portfolio with a focus on active theme and active stock selection. The portfolio managers invest across 5-7 long term themes through baskets of stocks with a high degree of exposure to the underlying theme. The thematic allocation is dynamic and changes according to the expected alpha potential. Exposure to the selected themes is delivered through allocation to baskets of stocks with high sensitivity to the identified themes and the upside potential based on the fundamental analysis. The strategy targets three layers of alpha through theme identification, ongoing review of the exposure to themes, and active stock selection based on fundamental analysis and degree of participation in the theme. The portfolio managers utilize the large internal analyst platform of research experts.

Rising Disruptors This strategy seeks long-term capital appreciation by investing in US small and mid-cap companies with disruptive business models or technologies which are creating new markets or upending existing ones via innovation. The strategy pursues a more concentrated approach, seeking to invest in innovative and disruptive companies across various sectors including technology, healthcare, financials, industrials, consumer discretionary, etc. Stocks are selected on a fundamental bottom-up basis by identifying companies benefitting from major disruptive trends. These companies are characterized by secular growth drivers, technological leadership and superior business models. Sector and industry exposures will be primarily a result of identifying superior securities benefitting from disruptive innovation.

Tax Advantage Preferreds The investment team narrows the investment universe of preferred securities to focus on issuers that the team believes offers the highest level of impact and to ensure research resources are allocated accordingly. Considerations in this process include overall level of liquidity, and ability to source securities. Impact issuers are determined by certain factors, including percent of benchmark, pricing opportunities, and a subjective assessment of our ability to add value. This level of coverage also gives consideration to maintaining capacity when market conditions warrant resources be allocated to new opportunities. The investment team utilizes proprietary financial modeling, stress testing, quantitative models, and assessments of bond structures, indentures, and liquidity to produce proprietary internal credit assessments and risk vs reward analysis of issuers. Portfolio managers utilize these inputs to select the preferred securities designed to produce strong risk-adjusted returns. International Sustainability International Sustainability is a Sustainable & Responsible Investment (SRI) strategy which considers Environmental, Social and Governance (ESG) criteria within the investment process in order to generate competitive financial returns and a positive and measurable impact on society. The portfolio managers use bottom-up fundamental analysis to invest in companies with superior financial and ESG performance. As part of AllianzGI’s Global Equity Team, portfolios consist of c.40 high-conviction, diversified stocks outside of the US. The strategy takes a ‘Best in Class’ approach to SRI, seeking to own companies which outperform sector peers on ESG criteria. ESG performance is assessed using AllianzGI’s proprietary SRI Ratings model.

US Sustainability AllianzGI US Sustainability is a Sustainable & Responsible Investment (SRI) strategy which considers Environmental, Social and Governance (ESG) criteria within the investment process in order to generate competitive financial returns and a positive and measurable impact on society. The portfolio managers use bottom-up fundamental analysis to invest in companies with superior financial and ESG performance. As part of AllianzGI’s Global Equity Team, portfolios consist of c.35 high-conviction, diversified stocks within the US. The strategy takes a ‘Best in Class’ approach to SRI, seeking to own companies which outperform sector peers on ESG criteria. ESG performance is assessed using AllianzGI’s proprietary SRI Ratings model.

AllianzGI US also contracts with its investment advisory affiliates to provide sub-advisory services in connection with the management of AllianzGI US Wrap Fee Programs (collectively “Sub-Advisers”). The Sub-Advisers investment model recommendations are based on their individual investment processes, which are described briefly below. The models are used in stand-alone equity, balanced and multi- disciplinary strategy styles. The multi-disciplinary strategies may combine separate affiliated and non- affiliated sub-advisers equity strategies and/or a fixed income strategy into one portfolio with an allocation among the strategies based on established target asset allocation parameters. For additional information relating to each affiliated or non-affiliated Sub- Adviser, please refer to their respective Form ADVs posted at www.adviserinfo.sec.gov.

The following are strategies provided by PIMCO for Wrap Program clients:

PIMCO – Total Return The Total Return Strategy seeks to maximize total return with index-like volatility.

PIMCO Investment Process PIMCO utilizes a top-down bottom-up investment approach. The top-down investment process begins with PIMCO’s annual secular forum where it develops a 3- to 5-year outlook for the global economy and interest rates. Quarterly meetings are then held to discuss how the outlook applies to upcoming 3- to 12- month periods and to forecast specific influencing factors, including interest rate volatility, yield curve movements and credit trends. Taken together, these sessions set basic portfolio parameters, including duration, yield-curve positioning, sector weightings and credit quality. PIMCO’s bottom-up process, which includes credit analysis, quantitative research and individual issue selection, is then combined with the top-down approach to add value.

Approximately 60% of the client’s assets are generally invested in a combination of individual U.S. Treasury, U.S. agency, municipal, corporate and mortgage securities. The remaining assets will be invested in a combination of the Allianz Global Investors Managed Accounts Trust (a registered investment company, the “Trust”), FISH: Series C and FISH: Series M shares. FISH: Series C invests in a wide variety of U.S. and foreign fixed income securities, including corporate and mortgage-backed securities, high yield securities, and derivative instruments. FISH: Series M invests in a portfolio of fixed income securities comprised of mortgage and other asset backed securities and derivative instruments. Assets invested in one of the FISH Portfolios will be managed in accordance with the FISH Portfolio’s prospectus, and client restrictions will not apply to such assets. Clients should read the prospectus for the FISH portfolios for more complete information regarding the principal investments and risks of investing in the portfolios.

The Total Return strategy is managed pursuant to an investment model. A portion of the model may be composed of buckets of securities with common characteristics. Therefore, individual client accounts invested in the same product may hold different securities with substantially similar characteristics.

Fixed Income

Investment Process – Income & Growth Strategies

The Income and Growth Strategies investment team follows a disciplined, bottom-up research process, which facilitates the early identification of issuers that demonstrate the ability to improve their fundamental characteristics. The companies/issues selected for the portfolio exceed minimum underlying metrics and exhibit the highest visibility of future expected operating performance. Convertibles The US Convertibles strategy aims to capture the upside potential of equities with potentially less volatility than a pure stock investment. The strategy builds the portfolio one security at a time by finding companies of any size capitalizing on change, actively managing the strategy to provide an alternative risk- reward profile to traditional stock and bond portfolios. US High Yield and CLO The strategies are designed to provide consistent income, diversification benefits and total return potential. The strategy seeks to deliver outperformance over time by 1) providing upside participation in rising markets and downside protection in falling markets and 2) by identifying and minimizing credit risk, avoiding defaults and targeting upgrade candidates. Income & Growth The Income and Growth strategy is a core holding that invests primarily in a portfolio of one-third high- quality large-cap stocks, one-third high-yield bonds and one-third convertible bonds. This “three-sleeve” approach allows the strategy to offer an attractive risk/return profile. The strategy aims to provide a steady income stream with increased potential upside and less downside risk. The strategy also supplements its income stream with a covered call strategy. As a result, the strategy aims to capture multiple sources of income while participating in the upside potential of equities, with potentially less volatility than a pure stock investment. US Short Duration High Income The US Short Duration High Income strategy employs a conservative approach to managing high yield bonds and bank loans. By investing in high quality, high yield securities with shorter durations, the investment team is able to control credit risk and minimize downside volatility.

Investment Process – Global Fixed Income

Global fixed income portfolio managers consistently utilize a well-defined investment process to construct client portfolios. The monthly (every 4-6 weeks) Asset Allocation Group is responsible for all major asset allocation decisions. It is a forum where the investment team discusses four key areas in order to determine the allocation of portfolio assets among four alpha streams: Developed Markets, Investment Grade Credit, High Yield Debt and Emerging Markets. The four key inputs to the Asset Allocation decision are: Global Growth, Inflation, Interest Rates and Event Risk. A twice-weekly Investment Committee is responsible for decisions on a more frequent basis and discusses positioning reviews, thesis testing and dynamic risk management. Continuous interaction between the investment teams ensures consistent and successful implementation of philosophy and process across portfolios. The Global Sovereign and Global Credit team bring insights and specialist fixed income knowledge and meets, at least, twice-weekly.

Global Aggregate The Global Aggregate strategy combines all four core strategies: global government, investment grade credit, global high yield and emerging markets. It provides a broad exposure to the global bond market and is indexed versus a variety of readily available or customized aggregate indices.

Global Government The Global government strategy aims to deliver positive risk adjusted returns by investing in sovereign debt fixed income and currencies (globally).

Global Investment Grade Credit The strategy seeks relative value opportunities across global sectors and issuers whilst avoiding its associated downside risks.

Global Investment Grade Corporate < please register to get more info