Schedule of Investments
AllianzGI Equity & Convertible Income Fund
April 30, 2020 (unaudited)
Shares | Value^ | ||||
COMMON STOCK - 64.0% | |||||
Aerospace & Defense - 0.4% | |||||
20,000 | Boeing Co. | $ 2,820,400 | |||
Banks - 0.7% | |||||
50,200 | JPMorgan Chase & Co. | 4,807,152 | |||
Beverages - 0.9% | |||||
45,800 | PepsiCo, Inc. (g) | 6,058,882 | |||
Biotechnology - 3.2% | |||||
59,400 | AbbVie, Inc. | 4,882,680 | |||
9,700 | Biogen, Inc. (g)(i) | 2,879,251 | |||
70,600 | Gilead Sciences, Inc. | 5,930,400 | |||
27,200 | Vertex Pharmaceuticals, Inc. (i) | 6,832,640 | |||
20,524,971 | |||||
Capital Markets - 1.5% | |||||
79,700 | Charles Schwab Corp. | 3,006,284 | |||
23,600 | S&P Global, Inc. (g) | 6,911,968 | |||
9,918,252 | |||||
Chemicals - 0.3% | |||||
46,400 | Chemours Co. | 544,272 | |||
14,533 | Dow, Inc. (i) | 533,216 | |||
14,533 | DuPont de Nemours, Inc. | 683,341 | |||
1,760,829 | |||||
Communications Equipment - 1.0% | |||||
149,600 | Cisco Systems, Inc. | 6,340,048 | |||
Entertainment - 1.5% | |||||
22,800 | Netflix, Inc. (g)(i) | 9,572,580 | |||
Equity Real Estate Investment Trusts (REITs) - 1.0% | |||||
13,300 | American Tower Corp. | 3,165,400 | |||
22,400 | Crown Castle International Corp. (g) | 3,571,232 | |||
6,736,632 | |||||
Food & Staples Retailing - 1.9% | |||||
21,400 | Costco Wholesale Corp. (g) | 6,484,200 | |||
182,400 | Kroger Co. | 5,765,664 | |||
12,249,864 | |||||
Healthcare Equipment & Supplies - 2.2% | |||||
17,600 | Align Technology, Inc. (i) | 3,781,360 | |||
133,000 | Boston Scientific Corp. (i) | 4,984,840 | |||
10,100 | Intuitive Surgical, Inc. (i) | 5,159,888 | |||
13,926,088 | |||||
Healthcare Providers & Services - 2.1% | |||||
24,400 | McKesson Corp. | 3,446,500 | |||
34,900 | UnitedHealth Group, Inc. (g) | 10,207,203 | |||
13,653,703 | |||||
Hotels, Restaurants & Leisure - 1.9% | |||||
30,300 | McDonald’s Corp. | 5,683,068 | |||
58,900 | Starbucks Corp. | 4,519,397 | |||
22,000 | Wynn Resorts Ltd. | 1,881,660 | |||
12,084,125 | |||||
Household Durables - 0.6% | |||||
78,300 | DR Horton, Inc. (g) | 3,697,326 | |||
Industrial Conglomerates - 1.3% | |||||
17,800 | 3M Co. | 2,704,176 | |||
37,800 | Honeywell International, Inc. | 5,363,820 | |||
8,067,996 |
Insurance - 0.4% | |||||
30,900 | Progressive Corp. | 2,388,570 | |||
Interactive Media & Services - 4.4% | |||||
11,850 | Alphabet, Inc., Class A (i) | 15,958,395 | |||
61,700 | Facebook, Inc., Class A (g)(i) | 12,630,607 | |||
28,589,002 | |||||
Internet & Direct Marketing Retail - 3.2% | |||||
16,400 | Alibaba Group Holding Ltd., ADR (g)(i) | 3,323,788 | |||
6,975 | Amazon.com, Inc. (i) | 17,256,150 | |||
20,579,938 | |||||
IT Services - 6.0% | |||||
62,500 | Fiserv, Inc. (g)(i) | 6,441,250 | |||
15,700 | International Business Machines Corp. | 1,971,292 | |||
35,250 | Mastercard, Inc., Class A | 9,692,692 | |||
55,900 | PayPal Holdings, Inc. (i) | 6,875,700 | |||
74,500 | Visa, Inc., Class A (g) | 13,314,640 | |||
38,295,574 | |||||
Life Sciences Tools & Services - 1.2% | |||||
23,850 | Thermo Fisher Scientific, Inc. (g) | 7,982,118 | |||
Machinery - 1.0% | |||||
36,100 | Caterpillar, Inc. | 4,201,318 | |||
17,300 | Deere & Co. (g) | 2,509,538 | |||
6,710,856 | |||||
Media - 0.5% | |||||
77,600 | Comcast Corp., Class A | 2,920,088 | |||
Multi-Line Retail - 1.4% | |||||
32,700 | Dollar General Corp. (g) | 5,732,310 | |||
29,500 | Target Corp. | 3,237,330 | |||
8,969,640 | |||||
Oil, Gas & Consumable Fuels - 0.5% | |||||
49,700 | Valero Energy Corp. | 3,148,495 | |||
Pharmaceuticals - 2.4% | |||||
112,200 | Bristol-Myers Squibb Co. | 6,822,882 | |||
37,700 | Merck & Co., Inc. | 2,991,118 | |||
56,317 | Teva Pharmaceutical Industries Ltd., ADR (i) | 604,845 | |||
36,800 | Zoetis, Inc. | 4,758,608 | |||
15,177,453 | |||||
Road & Rail - 0.6% | |||||
25,700 | Union Pacific Corp. (g) | 4,106,603 | |||
Semiconductors & Semiconductor Equipment - 7.0% | |||||
119,700 | Advanced Micro Devices, Inc. (g)(i) | 6,271,083 | |||
17,900 | Broadcom, Inc. | 4,861,998 | |||
26,900 | Lam Research Corp. (g) | 6,867,032 | |||
183,500 | Marvell Technology Group Ltd. (g) | 4,906,790 | |||
139,000 | Micron Technology, Inc. (i) | 6,656,710 | |||
31,900 | NVIDIA Corp. (g) | 9,323,732 | |||
53,400 | QUALCOMM, Inc. (g) | 4,200,978 | |||
16,500 | Texas Instruments, Inc. | 1,915,155 | |||
45,003,478 | |||||
Software - 9.4% | |||||
25,975 | Adobe, Inc. (g)(i) | 9,185,799 | |||
16,000 | Atlassian Corp. PLC, Class A (i) | 2,487,840 | |||
44,600 | Crowdstrike Holdings, Inc., Class A (i) | 3,017,636 | |||
19,800 | Intuit, Inc. | 5,342,238 | |||
102,775 | Microsoft Corp. | 18,418,308 | |||
55,521 | Salesforce.com, Inc. (g)(i) | 8,991,626 | |||
23,900 | ServiceNow, Inc. (i) | 8,401,806 | |||
31,000 | Workday, Inc., Class A (i) | 4,770,900 | |||
60,616,153 |
Specialty Retail - 1.3% | ||||||
36,700 | Home Depot, Inc. | 8,067,761 | ||||
Technology Hardware, Storage & Peripherals - 3.1% | ||||||
58,600 | Apple, Inc. (g) | 17,216,680 | ||||
56,900 | NetApp, Inc. | 2,490,513 | ||||
19,707,193 | ||||||
Textiles, Apparel & Luxury Goods - 1.1% | ||||||
77,900 | NIKE, Inc., Class B | 6,791,322 | ||||
Total Common Stock (cost-$420,955,894) | 411,273,092 | |||||
Principal Amount (000s) | ||||||
CONVERTIBLE BONDS & NOTES - 27.0% | ||||||
Airlines - 0.2% | ||||||
$1,105 | Southwest Airlines Co., 1.25%, 5/1/25 | 1,225,072 | ||||
Auto Components - 0.3% | ||||||
1,935 | Meritor, Inc., 3.25%, 10/15/37 | 1,862,437 | ||||
Auto Manufacturers - 1.0% | ||||||
2,815 | Tesla, Inc., 1.25%, 3/1/21 | 6,220,838 | ||||
Banks - 0.2% | ||||||
1,100 | JPMorgan Chase Bank N.A., 0.125%, 1/1/23 (a)(b) | 1,180,995 | ||||
Beverages - 0.0% | ||||||
90 | Luckin Coffee, Inc., 0.75%, 1/15/25 (a)(b) | 30,150 | ||||
Biotechnology - 2.3% | ||||||
BioMarin Pharmaceutical, Inc., | ||||||
265 | 0.599%, 8/1/24 | 284,841 | ||||
890 | 1.50%, 10/15/20 | 963,480 | ||||
Exact Sciences Corp., | ||||||
2,690 | 0.375%, 3/15/27 | 2,624,406 | ||||
650 | 0.375%, 3/1/28 | 595,235 | ||||
1,110 | Halozyme Therapeutics, Inc., 1.25%, 12/1/24 (a)(b) | 1,276,098 | ||||
1,015 | Illumina, Inc., 0.50%, 6/15/21 | 1,365,546 | ||||
1,080 | Insmed, Inc., 1.75%, 1/15/25 | 1,019,250 | ||||
1,565 | Intercept Pharmaceuticals, Inc., 3.25%, 7/1/23 | 1,390,390 | ||||
2,280 | Ligand Pharmaceuticals, Inc., 0.75%, 5/15/23 | 2,008,591 | ||||
PTC Therapeutics, Inc., | ||||||
935 | 1.50%, 9/15/26 (a)(b) | 1,131,279 | ||||
1,655 | 3.00%, 8/15/22 | 1,910,773 | ||||
14,569,889 | ||||||
Commercial Services - 0.7% | ||||||
2,220 | Chegg, Inc., 0.125%, 3/15/25 | 2,340,207 | ||||
1,865 | Square, Inc., 0.50%, 5/15/23 | 2,100,456 | ||||
4,440,663 | ||||||
Computers - 1.4% | ||||||
2,215 | CyberArk Software Ltd., zero coupon, 11/15/24 (a)(b) | 2,067,667 | ||||
Lumentum Holdings, Inc., | ||||||
200 | 0.25%, 3/15/24 | 291,101 | ||||
2,225 | 0.50%, 12/15/26 (a)(b) | 2,360,414 | ||||
1,520 | Pure Storage, Inc., 0.125%, 4/15/23 | 1,403,112 | ||||
670 | Rapid7, Inc., 1.25%, 8/1/23 | 838,338 | ||||
2,305 | Western Digital Corp., 1.50%, 2/1/24 | 2,127,519 | ||||
9,088,151 | ||||||
Electronics - 0.6% | ||||||
1,010 | Fortive Corp., 0.875%, 2/15/22 | 975,133 | ||||
1,070 | OSI Systems, Inc., 1.25%, 9/1/22 | 1,030,587 | ||||
1,130 | SMART Global Holdings, Inc., 2.25%, 2/15/26 (a)(b) | 998,638 | ||||
910 | Vishay Intertechnology, Inc., 2.25%, 6/15/25 | 840,918 | ||||
3,845,276 | ||||||
Energy-Alternate Sources - 0.1% | ||||||
1,155 | SunPower Corp., 4.00%, 1/15/23 | 936,994 |
Engineering & Construction - 0.4% | |||||
1,010 | KBR, Inc., 2.50%, 11/1/23 | 1,071,231 | |||
1,430 | Tutor Perini Corp., 2.875%, 6/15/21 | 1,179,750 | |||
2,250,981 | |||||
Entertainment - 0.3% | |||||
Live Nation Entertainment, Inc., | |||||
485 | 2.00%, 2/15/25 (a)(b) | 382,722 | |||
1,455 | 2.50%, 3/15/23 | 1,393,309 | |||
1,776,031 | |||||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||||
2,000 | Two Harbors Investment Corp., 6.25%, 1/15/22 | 1,991,250 | |||
Healthcare-Products - 1.1% | |||||
1,010 | CONMED Corp., 2.625%, 2/1/24 | 1,072,494 | |||
2,860 | Insulet Corp., 0.375%, 9/1/26 (a)(b) | 3,222,862 | |||
1,360 | NuVasive, Inc., 2.25%, 3/15/21 | 1,580,320 | |||
1,120 | Repligen Corp., 0.375%, 7/15/24 | 1,336,356 | |||
7,212,032 | |||||
Healthcare-Services - 0.3% | |||||
515 | Invitae Corp., 2.00%, 9/1/24 (a)(b) | 475,317 | |||
530 | Teladoc Health, Inc., 1.375%, 5/15/25 | 1,639,320 | |||
2,114,637 | |||||
Internet - 3.7% | |||||
1,660 | Boingo Wireless, Inc., 1.00%, 10/1/23 | 1,472,023 | |||
2,335 | Etsy, Inc., 0.125%, 10/1/26 (a)(b) | 2,377,559 | |||
1,030 | FireEye, Inc., 0.875%, 6/1/24 | 903,207 | |||
2,190 | IAC Financeco 2, Inc., 0.875%, 6/15/26 (a)(b) | 2,248,856 | |||
2,525 | Okta, Inc., 0.125%, 9/1/25 (a)(b) | 2,678,508 | |||
595 | Palo Alto Networks, Inc., 0.75%, 7/1/23 | 611,065 | |||
2,315 | Proofpoint, Inc., 0.25%, 8/15/24 (a)(b) | 2,408,692 | |||
2,800 | Snap, Inc., 0.75%, 8/1/26 (a)(b) | 2,907,071 | |||
2,170 | Twitter, Inc., 0.25%, 6/15/24 | 2,028,486 | |||
Wayfair, Inc., | |||||
1,260 | 1.00%, 8/15/26 (a)(b) | 1,285,214 | |||
965 | 1.125%, 11/1/24 | 1,188,759 | |||
985 | Zendesk, Inc., 0.25%, 3/15/23 | 1,334,755 | |||
Zillow Group, Inc., | |||||
615 | 1.50%, 7/1/23 | 576,194 | |||
1,605 | 2.00%, 12/1/21 | 1,776,534 | |||
23,796,923 | |||||
Investment Companies - 0.3% | |||||
2,450 | Prospect Capital Corp., 6.375%, 3/1/25 | 2,235,963 | |||
Iron/Steel - 0.1% | |||||
530 | Cleveland-Cliffs, Inc., 1.50%, 1/15/25 | 389,511 | |||
Media - 1.6% | |||||
DISH Network Corp., | |||||
1,385 | 2.375%, 3/15/24 | 1,169,662 | |||
3,780 | 3.375%, 8/15/26 | 3,073,518 | |||
805 | Liberty Interactive LLC, 1.75%, 9/30/46 (a)(b) | 1,185,842 | |||
Liberty Media Corp., | |||||
1,205 | 1.00%, 1/30/23 | 1,281,922 | |||
1,105 | 1.375%, 10/15/23 | 1,157,505 | |||
2,305 | 2.75%, 12/1/49 (a)(b) | 2,159,689 | |||
190 | World Wrestling Entertainment, Inc., 3.375%, 12/15/23 | 359,773 | |||
10,387,911 | |||||
Oil, Gas & Consumable Fuels - 0.3% | |||||
2,435 | Chesapeake Energy Corp., 5.50%, 9/15/26 | 133,925 | |||
1,400 | Ensco Jersey Finance Ltd., 3.00%, 1/31/24 | 262,995 | |||
885 | EQT Corp., 1.75%, 5/1/26 (a)(b) | 994,297 | |||
1,170 | Nabors Industries, Inc., 0.75%, 1/15/24 | 140,402 | |||
200 | Oil States International, Inc., 1.50%, 2/15/23 | 76,668 | |||
1,405 | Transocean, Inc., 0.50%, 1/30/23 | 302,075 | |||
1,910,362 |
Pharmaceuticals - 1.4% | |||||
1,785 | DexCom, Inc., 0.75%, 12/1/23 | 3,764,424 | |||
880 | Flexion Therapeutics, Inc., 3.375%, 5/1/24 | 659,682 | |||
1,705 | Horizon Pharma Investment Ltd., 2.50%, 3/15/22 | 2,247,403 | |||
1,040 | Jazz Investments I Ltd., 1.875%, 8/15/21 | 1,015,899 | |||
655 | Sarepta Therapeutics, Inc., 1.50%, 11/15/24 | 1,156,730 | |||
475 | Supernus Pharmaceuticals, Inc., 0.625%, 4/1/23 | 407,906 | |||
9,252,044 | |||||
Pipelines - 0.4% | |||||
4,200 | Cheniere Energy, Inc., 4.25%, 3/15/45 | 2,254,198 | |||
Retail - 0.3% | |||||
440 | Burlington Stores, Inc., 2.25%, 4/15/25 (a)(b) | 468,466 | |||
370 | Guess?, Inc., 2.00%, 4/15/24 (a)(b) | 238,419 | |||
1,525 | RH, zero coupon, 6/15/23 | 1,489,734 | |||
2,196,619 | |||||
Semiconductors - 2.2% | |||||
90 | Advanced Micro Devices, Inc., 2.125%, 9/1/26 | 589,931 | |||
1,290 | Cree, Inc., 0.875%, 9/1/23 | 1,306,931 | |||
Inphi Corp., | |||||
390 | 0.75%, 9/1/21 | 684,206 | |||
1,665 | 0.75%, 4/15/25 (a)(b) | 1,760,538 | |||
4,645 | Microchip Technology, Inc., 1.625%, 2/15/27 | 5,816,376 | |||
150 | Micron Technology, Inc., 3.125%, 5/1/32, Ser. D | 721,286 | |||
2,060 | ON Semiconductor Corp., 1.625%, 10/15/23 | 2,250,046 | |||
870 | Veeco Instruments, Inc., 2.70%, 1/15/23 | 725,609 | |||
13,854,923 | |||||
Software - 6.8% | |||||
Akamai Technologies, Inc., | |||||
2,860 | 0.125%, 5/1/25 | 3,408,311 | |||
450 | 0.375%, 9/1/27 (a)(b) | 470,667 | |||
2,425 | Alteryx, Inc., 0.50%, 8/1/24 (a)(b) | 2,318,234 | |||
1,270 | Atlassian, Inc., 0.625%, 5/1/23 | 2,468,447 | |||
820 | Avaya Holdings Corp., 2.25%, 6/15/23 | 659,075 | |||
1,620 | Coupa Software, Inc., 0.125%, 6/15/25 (a)(b) | 2,068,001 | |||
1,580 | DocuSign, Inc., 0.50%, 9/15/23 | 2,469,698 | |||
965 | Envestnet, Inc., 1.75%, 6/1/23 | 1,077,181 | |||
925 | Everbridge, Inc., 0.125%, 12/15/24 (a)(b) | 1,095,057 | |||
Evolent Health, Inc., | |||||
1,250 | 1.50%, 10/15/25 | 775,750 | |||
1,055 | 2.00%, 12/1/21 | 917,191 | |||
510 | Five9, Inc., 0.125%, 5/1/23 | 1,166,013 | |||
2,280 | j2 Global, Inc., 1.75%, 11/1/26 (a)(b) | 2,144,513 | |||
1,800 | LivePerson, Inc., 0.75%, 3/1/24 (a)(b) | 1,680,438 | |||
2,260 | MongoDB, Inc., 0.25%, 1/15/26 (a)(b) | 2,371,145 | |||
1,230 | New Relic, Inc., 0.50%, 5/1/23 | 1,113,888 | |||
1,595 | Nutanix, Inc., zero coupon, 1/15/23 | 1,374,590 | |||
850 | Pegasystems, Inc., 0.75%, 3/1/25 (a)(b) | 826,021 | |||
1,260 | Pluralsight, Inc., 0.375%, 3/1/24 | 1,066,590 | |||
2,010 | RingCentral, Inc., zero coupon, 3/1/25 (a)(b) | 1,948,651 | |||
875 | ServiceNow, Inc., zero coupon, 6/1/22 | 2,298,098 | |||
785 | Slack Technologies, Inc., 0.50%, 4/15/25 (a)(b) | 873,568 | |||
Splunk, Inc., | |||||
2,185 | 0.50%, 9/15/23 | 2,518,206 | |||
945 | 1.125%, 9/15/25 | 1,108,213 | |||
795 | Twilio, Inc., 0.25%, 6/1/23 | 1,322,917 | |||
1,770 | Workday, Inc., 0.25%, 10/1/22 | 2,174,064 | |||
1,660 | Zynga, Inc., 0.25%, 6/1/24 (a)(b) | 1,851,937 | |||
43,566,464 | |||||
Telecommunications - 0.4% | |||||
1,745 | Viavi Solutions, Inc., 1.00%, 3/1/24 | 1,964,215 | |||
765 | Vonage Holdings Corp., 1.75%, 6/1/24 (a)(b) | 689,607 | |||
2,653,822 | |||||
Transportation - 0.3% | |||||
1,380 | Atlas Air Worldwide Holdings, Inc., 2.25%, 6/1/22 | 1,289,438 | |||
1,125 | Greenbrier Cos., Inc., 2.875%, 2/1/24 | 906,711 | |||
2,196,149 | |||||
Total Convertible Bonds & Notes (cost-$178,323,815) | 173,440,285 |
Shares | ||||||
CONVERTIBLE PREFERRED STOCK - 5.7% | ||||||
Banks - 1.6% | ||||||
3,400 | Bank of America Corp., 7.25% Ser. L (e) | 4,700,160 | ||||
4,165 | Wells Fargo & Co., 7.50% Ser. L (e) | 5,826,169 | ||||
10,526,329 | ||||||
Chemicals - 0.2% | ||||||
32,330 | International Flavors & Fragrances, Inc., 6.00%, 9/15/21 | 1,537,291 | ||||
Diversified Financial Services - 0.2% | ||||||
36,700 | AMG Capital Trust II, 5.15%, 10/15/37 | 1,328,329 | ||||
Electric Utilities - 0.7% | ||||||
45,625 | NextEra Energy, Inc., 5.279%, 3/1/23 | 1,970,544 | ||||
14,605 | Sempra Energy, 6.00%, 1/15/21 Ser. A | 1,494,237 | ||||
23,000 | Southern Co., 6.75%, 8/1/22 | 1,088,820 | ||||
4,553,601 | ||||||
Electronics - 0.2% | ||||||
1,250 | Fortive Corp., 5.00%, 7/1/21 Ser. A | 1,037,225 | ||||
Environmental Services - 0.2% | ||||||
25,210 | GFL Environmental Inc., 6.00%, 3/15/23 | 1,235,542 | ||||
Equity Real Estate Investment Trusts (REITs) - 0.6% | ||||||
2,615 | Crown Castle International Corp., 6.875%, 8/1/20 Ser. A | 3,642,695 | ||||
Hand/Machine Tools - 0.3% | ||||||
Stanley Black & Decker, Inc., | ||||||
1,505 | 5.25%, 11/15/22 | 119,662 | ||||
23,100 | 5.375%, 5/15/20 | 1,849,155 | ||||
1,968,817 | ||||||
Healthcare-Products - 0.8% | ||||||
29,530 | Avantor, Inc., 6.25%, 5/15/22 Ser. A | 1,700,337 | ||||
2,975 | Danaher Corp., 4.75%, 4/15/22 Ser. A | 3,537,632 | ||||
5,237,969 | ||||||
Insurance - 0.1% | ||||||
9,250 | Assurant, Inc., 6.50%, 3/15/21 Ser. D | 990,675 | ||||
Oil, Gas & Consumable Fuels - 0.0% | ||||||
25,000 | ATP Oil & Gas Corp., 8.00% (cost-$3,160,750; purchased 4/21/10) (a)(b)(d)(e)(f)(h) | 2 | ||||
8,860 | Nabors Industries Ltd., 6.00%, 5/1/21 Ser. A | 30,036 | ||||
30,038 | ||||||
Pharmaceuticals - 0.2% | ||||||
22,420 | Elanco Animal Health, Inc., 5.00%, 2/1/23 | 1,031,320 | ||||
Semiconductors - 0.6% | ||||||
3,765 | Broadcom, Inc., 8.00%, 9/30/22 Ser. A | 3,830,662 | ||||
Total Convertible Preferred Stock (cost-$40,303,576) | 36,950,493 | |||||
Principal Amount (000s) | ||||||
CORPORATE BONDS & NOTES - 0.0% | ||||||
Oil, Gas & Consumable Fuels - 0.0% | ||||||
$ | 2,509 | Cobalt International Energy, Inc., 7.75%, 12/1/23 (c) (cost-$1,134,313) | 77,553 | |||
Repurchase Agreements - 3.4% | ||||||
21,772 | State Street Bank and Trust Co., dated 4/30/20, 0.00%, due 5/1/20, proceeds $21,772,000; collateralized by U.S. Treasury Notes, 1.625%, due 8/31/22, valued at $22,208,543 including accrued interest (cost-$21,772,000) | 21,772,000 |
Total Investments, before options written(cost-$662,489,598)-100.1% | 643,513,423 | ||
Total Options Written -(0.1)% (premiums received-$617,790) (i)(j)(k) | (656,856 | ) | |
Total Investments, net of options written (cost-$661,871,808) (l)-100.0% | 642,856,567 | ||
Other assets less other liabilities-0.0% | 133,402 | ||
Net Assets-100.0% | $ 642,989,969 |
Notes to Schedule of Investments:
^ Portfolio securities and other financial instruments for which market quotations are readily available are valued at market value. Market values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, based on quotes or other market information obtained from quotation reporting systems, established market makers or independent pricing services. Investments in mutual funds are valued at the net asset value (“NAV”) as reported on each business day, and under normal circumstances. Exchange-traded funds (“ETFs”) are valued at their current market trading price. AllianzGI Equity & Convertible Income Fund’s (the “Fund”) investments are valued daily using prices supplied by an independent pricing service or broker/dealer quotations, or by using the last sale or settlement price on the exchange that is the primary market for such securities, or the mean between the last bid and ask quotations. The market value for NASDAQ Global Market and NASDAQ Capital Market securities may also be calculated using the NASDAQ Official Closing Price instead of the last reported sales price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.
The Board of Trustees of the Fund (the “Board”) has adopted procedures for valuing portfolio securities and other financial instruments in circumstances where market quotes are not readily available (including in cases where available market quotations are deemed to be unreliable), and has delegated primary responsibility for applying the valuation methods to the investment manager, Allianz Global Investors U.S. LLC (the “Investment Manager”). The Fund’s Valuation Committee was established by the Board to oversee the implementation of the Fund’s valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Investment Manager monitors the continued appropriateness of methods applied and identifies circumstances and events that may require fair valuation. The Investment Manager determines if adjustments should be made in light of market changes, events affecting the issuer or other factors. If the Investment Manager determines that a valuation method may no longer be appropriate, another valuation method previously approved by the Fund’s Valuation Committee may be selected or the Fund’s Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review and ratify the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Fund’s Valuation Committee.
Short-term debt investments having a remaining maturity of 60 days or less are valued at amortized cost unless the Board or its Valuation Committee determines that particular circumstances dictate otherwise.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Fund may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange (“NYSE”) is closed.
The prices used by the Fund to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material. The Fund’s NAV is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern Time) on the NYSE on each day the NYSE is open for business. In unusual circumstances, the Board or the Valuation Committee may in good faith determine the NAV as of 4:00 p.m., Eastern Time, notwithstanding an earlier, unscheduled close or halt of trading on the NYSE.
The prices of certain portfolio securities or financial instruments may be determined at a time prior to the close of regular trading on the NYSE. In considering whether fair value pricing is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time the NAV of the Fund is calculated. With respect to certain foreign securities, the Fund may fair value securities using modeling tools provided by third-party vendors, where appropriate. The Fund has retained a statistical research service to assist in determining the fair value of foreign securities. This service utilizes statistics and programs based on historical performance of markets and other economic data to assist in making fair value estimates. Fair value estimates used by the Fund for foreign securities may differ from the value realized from the sale of those securities and the difference could be material. Fair value pricing may require subjective determinations about the value of a security or other assets, and fair values used to determine the NAV of the Fund may differ from quoted or published prices, or from prices that are used by others, for the same investments. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities or other assets held by the Fund.
(a) | Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $52,177,134, representing 8.1% of net assets. |
(b) | 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $52,177,134, representing 8.1% of net assets. |
(c) | In default. |
(d) | Fair-Valued—Security with a value of $2, representing less than 0.05% of net assets. |
(e) | Perpetual maturity. The date shown, if any, is the next call date. |
(f) | Level 3 security. |
(g) | All or partial amount segregated for the benefit of the counterparty as collateral for options written. |
(h) | Restricted. The cost of such security is $3,160,750. The value is $2, representing less than 0.05% of net assets. |
(i) | Non-income producing. |
(j) | Exchange traded-Chicago Board Options Exchange. |
(k) | Exchange traded option contracts outstanding at April 30, 2020: |
Options written contracts outstanding at April 30, 2020: | |||||||||||||||
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Market Value | Premiums Received | Unrealized Appreciation (Depreciation) | ||||||||
Call options: | |||||||||||||||
Adobe, Inc. | 390.00 USD | 5/15/20 | (105 | ) | $(10,500 | ) | $(7,088 | ) | $(17,848 | ) | $10,760 | ||||
Advanced Micro Devices, Inc. | 70.00 USD | 5/15/20 | (590 | ) | (59,000 | ) | (2,950 | ) | (59,566 | ) | 56,616 | ||||
Alibaba Group Holding Ltd. | 240.00 USD | 5/15/20 | (85 | ) | (8,500 | ) | (2,125 | ) | (4,888 | ) | 2,763 | ||||
Apple, Inc. | 310.00 USD | 5/15/20 | (130 | ) | (13,000 | ) | (41,600 | ) | (16,693 | ) | (24,907 | ) | |||
Biogen, Inc. | 420.00 USD | 5/15/20 | (30 | ) | (3,000 | ) | (1,275 | ) | (6,809 | ) | 5,534 | ||||
Costco Wholesale Corp. | 340.00 USD | 5/15/20 | (60 | ) | (6,000 | ) | (1,170 | ) | (10,169 | ) | 8,999 | ||||
Crown Castle International Corp. | 180.00 USD | 5/15/20 | (93 | ) | (9,300 | ) | (465 | ) | (5,948 | ) | 5,483 | ||||
Deere & Co. | 170.00 USD | 5/15/20 | (87 | ) | (8,700 | ) | (348 | ) | (9,596 | ) | 9,248 | ||||
Dollar General Corp. | 175.00 USD | 5/15/20 | (130 | ) | (13,000 | ) | (51,350 | ) | (16,453 | ) | (34,897 | ) | |||
DR Horton, Inc. | 55.00 USD | 6/19/20 | (155 | ) | (15,500 | ) | (9,272 | ) | (9,272 | ) | — | ||||
Facebook, Inc. | 205.00 USD | 6/19/20 | (305 | ) | (30,500 | ) | (279,075 | ) | (111,515 | ) | (167,560 | ) | |||
Fiserv, Inc. | 115.00 USD | 5/15/20 | (135 | ) | (13,500 | ) | (6,412 | ) | (13,089 | ) | 6,677 | ||||
Lam Research Corp. | 320.00 USD | 5/15/20 | (60 | ) | (6,000 | ) | (2,010 | ) | (7,480 | ) | 5,470 | ||||
Marvell Technology Group Ltd. | 28.00 USD | 5/15/20 | (600 | ) | (60,000 | ) | (24,900 | ) | (16,530 | ) | (8,370 | ) | |||
Netflix, Inc. | 550.00 USD | 5/15/20 | (135 | ) | (13,500 | ) | (6,277 | ) | (123,829 | ) | 117,552 | ||||
NVIDIA Corp. | 340.00 USD | 5/15/20 | (190 | ) | (19,000 | ) | (10,830 | ) | (67,094 | ) | 56,264 | ||||
PayPal Holdings, Inc. | 120.00 USD | 5/15/20 | (275 | ) | (27,500 | ) | (170,500 | ) | (12,958 | ) | (157,542 | ) | |||
PepsiCo, Inc. | 141.00 USD | 5/15/20 | (270 | ) | (27,000 | ) | (8,775 | ) | (27,421 | ) | 18,646 | ||||
QUALCOMM, Inc. | 95.00 USD | 5/15/20 | (35 | ) | (3,500 | ) | (87 | ) | (822 | ) | 735 | ||||
S&P Global, Inc. | 320.00 USD | 5/15/20 | (60 | ) | (6,000 | ) | (3,889 | ) | (12,777 | ) | 8,888 | ||||
Salesforce.com, Inc. | 185.00 USD | 5/15/20 | (135 | ) | (13,500 | ) | (1,755 | ) | (4,347 | ) | 2,592 | ||||
Thermo Fisher Scientific, Inc. | 360.00 USD | 5/15/20 | (74 | ) | (7,400 | ) | (4,995 | ) | (22,123 | ) | 17,128 | ||||
Union Pacific Corp. | 170.00 USD | 5/15/20 | (115 | ) | (11,500 | ) | (13,628 | ) | (10,827 | ) | (2,801 | ) | |||
UnitedHealth Group, Inc. | 330.00 USD | 5/15/20 | (170 | ) | (17,000 | ) | (1,955 | ) | (24,159 | ) | 22,204 | ||||
Visa, Inc. | 205.00 USD | 5/15/20 | (150 | ) | (15,000 | ) | (4,125 | ) | (5,577 | ) | 1,452 | ||||
Total options written contracts | $(656,856 | ) | $(617,790 | ) | $(39,066 | ) |
(l) | At April 30, 2020, the cost basis of portfolio securities for federal income tax purposes was $661,881,143. Gross unrealized appreciation was $51,854,955; gross unrealized depreciation was $70,879,531; and net unrealized depreciation was $19,024,576. The difference between book and tax cost was attributable to wash sale loss deferrals. |
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:
· | Level 1 – quoted prices in active markets for identical investments that the Fund has the ability to access |
· | Level 2 – valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs |
· | Level 3 – valuations based on significant unobservable inputs (including the Investment Manager's or Valuation Committee's own assumptions and securities whose price was determined by using a single broker's quote) |
The valuation techniques used by the Fund to measure fair value during the three months ended April 30, 2020 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.
An investment asset's or liability's level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each majorcategory of assets and liabilities within Level 2 and Level 3, in accordance with accounting principles generally acceptable in the United States of America.
An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund’s valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund’s valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security’s sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available.
Equity Securities (Common and Preferred Stock and Warrants) — Equity securities traded in inactive markets are valued using inputs which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or evaluated price quotes received from independent pricing services that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable, the values of equity securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Convertible Bonds & Notes — Convertible bonds & notes are valued by independent pricing services based on various inputs and techniques, which include broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of convertible bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Corporate Bonds & Notes — Corporate bonds & notes are generally comprised of two main categories: investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Option Contracts — Option contracts traded over-the-counter (“OTC”) and FLexible EXchange (“FLEX”) options are valued by independent pricing services based on pricing models that incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts based on a given strike price. To the extent that these inputs are observable, the values of OTC and FLEX option contracts are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
A summary of the inputs used at April 30, 2020 in valuing the Fund's assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):
Level 1 - Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Value at 4/30/20 | ||||||
Investments in Securities - Assets | |||||||||
Common Stock | $411,273,092 | — | — | $411,273,092 | |||||
Convertible Bonds & Notes | — | $173,440,285 | — | 173,440,285 | |||||
Convertible Preferred Stock: | |||||||||
Diversified Financial Services | — | 1,328,329 | — | 1,328,329 | |||||
Oil, Gas & Consumable Fuels | 30,036 | — | $2 | 30,038 | |||||
All Other | 35,592,126 | — | — | 35,592,126 | |||||
Corporate Bonds & Notes | — | 77,553 | — | 77,553 | |||||
Repurchase Agreements | — | 21,772,000 | — | 21,772,000 | |||||
446,895,254 | 196,618,167 | 2 | 643,513,423 | ||||||
Investments in Securities - Liabilities | |||||||||
Options Written: | |||||||||
Market Price | (656,856 | ) | — | — | (656,856 | ) | |||
Totals | $446,238,398 | $196,618,167 | $2 | $642,856,567 | |||||
A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the three months ended April 30, 2020, was as follows:
Beginning Balance 1/31/20 | Purchases | Sales | Accrued Discount (Premiums) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/ Depreciation | Transfers into Level 3 | Transfers out of Level 3 | Ending Balance 4/30/20 | ||||||||||||||||||||||||||||
Investments in Securities - Assets | ||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock: | ||||||||||||||||||||||||||||||||||||
Oil, Gas & Consumable Fuels | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2 |
The table above may include Level 3 investments that are valued by brokers or independent pricing services.
There was no change in unrealized appreciation/depreciation of Level 3 investments held at April 30, 2020.
Glossary: |
ADR - American Depositary Receipt |
REIT - Real Estate Investment Trust |