Vermögensmanagement Balance

VermögensManagement Balance

Fonds commun de placement (FCP) RCSK: K845

Audited Annual Report 31 December 2020 Allianz Global Investors GmbH VermögensManagement Balance

General Information

The Fund is authorised as a “Fonds Commun de Placement” whose prospectus and management regulations fall within the scope of Part I of the Luxembourg Law of 17 December 2010 on Undertakings for Collective Investment, as amended (UCITS as defined in Directive 2014/91/EU of 23 July 2014). The Fund was established on 18 October 2007.

The information that is included in this report refers to the period under review from 1 January 2020 to 31 December 2020. This should not be taken as an indication of the future development of the Fund.

This report does not constitute an offer or an invitation to purchase units of the Fund. Subscriptions are only valid if made on the basis of the current prospectus, the Key Investor Information and the management regulations, supplemented by the latest available audited annual report. If the latest annual report was published more than eight months ago, then the semi-annual report must also be made available.

The prospectus, the management regulations, the Key Investor Information, as well as the respective annual and semi-annual reports, can be obtained without charge from the Management Company, the Depositary or from any Paying and Information Agent.

Allianz Global Investors GmbH

Bockenheimer Landstraße 42-44 D-60323 Frankfurt/Main Internet: https://de.allianzgi.com Email: [email protected]

Allianz Global Investors GmbH acts through its Luxembourg branch in order to carry out its function as Central Administration Agent:

6A, route de Trèves L-2633 Senningerberg Internet: https://lu.allianzgi.com Email: [email protected] VermögensManagement Balance

Important Notice to our Unitholders

COVID-19

The COVID-19 pandemic caused considerable volatility and uncertainty on the international capital markets. As a result of this situation, it is only possible to make extremely limited general forecasts about capital market trends and future effects. At the current time, as the annual report is being prepared, it is therefore not possible to definitively assess the direct impact of the COVID-19 pandemic on the Fund. This page is left blank intentionally. VermögensManagement Balance

Contents

Investment Policy and Fund Assets ...... 2

Financial Statements...... 4 Investment Portfolio

Statement of Operations

Statement of Net Assets

Statement of Changes in Net Assets

Performance of the Fund

Notes to the Financial Statements...... 11

Auditor Report ...... 15

Further unaudited information...... 18

Note for Investors in the Federal Republic of Germany (unaudited). . .. 24

Annex according to Regulation (EU) 2015/2365 with regards to Securities Financing Transactions and Total Return Swaps (unaudited)...... 25

Directory...... 29 VermögensManagement Balance

Investment Policy and Fund Assets

The Fund invests in various asset classes, especially equities On the one hand, the segment of international securities with and bonds. The equity component must always be between good credit ratings was covered by bond allocation. On the 0% and 60%, while the bond component must be between 0% other hand, specialised funds were held in corporate securities and 85%. Investments in money market securities and and emerging market bonds. Significant positions were also alternative assets are also possible. The weighting of individual held in alternative investments with independent risk/return asset classes may vary and will be adjusted depending on the profiles, such as commodities, convertible bonds and Fund management’s assessment of the capital markets. In the catastrophe bonds. The effective exposures to individual equity medium to long term, the Fund structure has a balanced or bond market sectors were managed using derivatives. The orientation. The investment objective is to generate a liquidity position was at a slightly higher level as at the combination of returns and long-term capital growth. reporting date.

In the year under review, measures to contain the coronavirus With this investment policy, the Fund achieved a moderate in spring 2020 initially prompted prices to collapse on the increase in value. equity markets. Liquidity subsequently flowed back to the stock exchanges, driven by the central banks; prices rebounded as a The exact performance in the period under review is reported result, to varying degrees across the regions. On balance, the in the table “Performance of the Fund” at the end of the US and emerging markets in particular remained positive, financial statements. while prices in Europe were still below their base levels. Yields on high-quality bonds remained at very low levels, or declined Please refer to the Key Investor Information Document and again in some regions, which was reflected in the price gains of Prospectus for additional information on the Fund. securities in circulation. The reason for this was that, despite the emerging economic optimism on the financial markets, central banks indicated that they intended to continue with low or zero interest rates for an extended period. On the commodities markets, rising prices, such as for precious metals, were partly offset by opposite or sideways trends in other segments. From the perspective of euro investors, returns on investments in dollars were significantly reduced by depreciation losses.

In this environment, an average of around 50% of the Fund’s assets were invested in equity products. Target funds covering the established stock markets in the US and Europe were primarily held. Additional positions continued to be held in emerging Asian markets in particular, as well as in special sectors.

2 VermögensManagement Balance

Breakdown of Net Assets in %

75 71.75 60 45 30 17.32 15 3.22 2.09 5.62 0

Fund units Luxembourg Fund units Ireland Fund units Germany Investment units other Cash reserves, other assets countries

The Fund in figures 31/12/2020 31/12/2019 31/12/2018 Fund assets in millions of EUR 8,547.5 8,742.6 7,893.8 Units in circulation - Class A (EUR) (distributing) WKN: A0M 16S/ISIN: LU0321021155 62,748,543 65,269,103 66,087,174 Net asset value per unit in EUR - Class A (EUR) (distributing) WKN: A0M 16S/ISIN: LU0321021155 136.22 133.95 119.44

3 VermögensManagement Balance

Financial Statements

Investment Portfolio as at 31/12/2020 ISIN Securities Shares/ Holdings Price Market Value % of Currency (in 1,000)/ 31/12/2020 in EUR net Contracts assets Fund units 8,066,934,935.87 94.38 (Laufende Kosten (inkl, Verwaltungsvergütung) bzw,Verwaltungsvergütung oder Pauschalvergütung des Zielfonds in % p,a,) Germany 274,758,551.14 3.22 DE0009797480 Allianz Euro Rentenfonds -P- EUR - (0,390%) STK 141,714.117 EUR 1,301.360 184,421,083.30 2.16 DE000A0NEKQ8 Aramea Rendite Plus EUR - (1,310%) STK 276,104.000 EUR 177.960 49,135,467.84 0.58 DE000A2DTL86 Aramea Rendite Plus Nachhaltig -I- EUR - (1,030%) STK 420,000.000 EUR 98.100 41,202,000.00 0.48 France 102,702,600.00 1.20 FR0013233707 Edmond de Rothschild SICAV - Financial Bonds -NC- EUR - (0,700%) STK 800,000.000 EUR 114.860 91,888,000.00 1.07 FR0012749968 Lutetia Patrimoine -F- EUR - (1,510%) STK 115,000.000 EUR 94.040 10,814,600.00 0.13 Ireland 1,480,368,109.46 17.32 IE00B8H6X308 Federated Hermes Investment Funds plc - Federated Hermes Asia ex-Japan Equity Fund -F- USD - (0,830%) STK 0.001 USD 3.836 0.00 0.00 IE00B6TLWG59 GAM Star Fund PLC - Cat Bond -Inst- EUR - (1,080%) STK 5,123,076.150 EUR 13.832 70,864,438.54 0.83 IE00B50JD354 GAM Star Fund PLC - GAM Star Credit Opportunities (EUR) -Inst- EUR - (1,130%) STK 5,300,000.000 EUR 16.068 85,159,870.00 1.00 IE00BKS7L097 Invesco Markets PLC - Invesco S&P 500 ESG UCITS ETF EUR - (0,090%) STK 2,000,000.000 USD 47.075 76,741,288.38 0.90 IE00B3YCGJ38 Invesco Markets PLC - Invesco S&P 500 UCITS ETF USD - (0,050%) STK 716,000.000 USD 695.680 406,004,925.37 4.75 IE00BHBFD143 Legg Mason Global Funds PLC - Legg Mason Western Asset Macro Opportunities Bond Fund -A- (1,730%) STK 729,054.000 EUR 133.790 97,540,134.66 1.14 IE00B6VHBN16 PIMCO Global Investors Series PLC - Capital Securities Fund -Inst- (0,790%) STK 11,700,000.000 EUR 15.050 176,085,000.00 2.06 IE0004931386 PIMCO Global Investors Series PLC - Euro Bond Fund -Inst- EUR - (0,460%) STK 3,293,446.000 EUR 27.070 89,153,583.22 1.04 IE00BD065K35 Veritas Funds PLC - Veritas Asian Fund -D- USD - (0,790%) STK 300,000.000 USD 744.480 182,046,898.79 2.13 IE00BFMNPS42 Xtrackers (IE) PLC - Xtrackers ESG MSCI USA UCITS ETF -1C- USD - (0,150%) STK 9,650,000.000 USD 37.730 296,771,970.50 3.47 Luxembourg 6,133,019,149.74 71.75 LU0706717518 Allianz Global Investors Fund - Allianz Advanced Fixed Income Euro -W- EUR - (0,260%) STK 544,861.966 EUR 1,097.480 597,975,110.45 7.00 LU1560904093 Allianz Global Investors Fund - Allianz Advanced Fixed Income Euro -W9- EUR - (0,260%) STK 2,000.000 EUR 103,825.910 207,651,820.00 2.43 LU0856992960 Allianz Global Investors Fund - Allianz Advanced Fixed Income Short Duration -W- EUR - (0,210%) STK 259,677.734 EUR 924.360 240,035,710.20 2.81 LU2025541991 Allianz Global Investors Fund - Allianz Best Styles Europe Equity SRI -WT9- EUR - (0,500%) STK 1,635.000 EUR 102,209.690 167,112,843.15 1.95 LU2034156484 Allianz Global Investors Fund - Allianz Best Styles Global Equity SRI -WT9- EUR - (0,500%) STK 1,800.000 EUR 111,042.100 199,875,780.00 2.34 LU0788520384 Allianz Global Investors Fund - Allianz Best Styles US Equity -WT- USD - (0,500%) STK 210,000.290 USD 2,879.580 492,898,849.89 5.77 LU1997245250 Allianz Global Investors Fund - Allianz China A Shares -IT- USD - (1,280%) STK 65,315.725 USD 1,871.270 99,623,769.15 1.17 LU0706716544 Allianz Global Investors Fund - Allianz Convertible Bond -IT- EUR - (0,790%) STK 67,000.000 EUR 1,509.440 101,132,480.00 1.18 LU2025540837 Allianz Global Investors Fund - Allianz Dynamic Commodities -W9- USD - (0,580%) STK 592.000 USD 105,846.300 51,074,738.27 0.60 LU1110566418 Allianz Global Investors Fund - Allianz Enhanced Short Term Euro -W- EUR - (0,180%) STK 125,000.000 EUR 965.130 120,641,250.00 1.41 LU0256881987 Allianz Global Investors Fund - Allianz Europe Equity Growth -W- EUR - (0,650%) STK 93,837.082 EUR 3,634.760 341,075,272.17 3.99 LU0840619489 Allianz Global Investors Fund - Allianz German Equity -W- EUR - (0,650%) STK 33,002.867 EUR 2,073.130 68,419,233.66 0.80 LU1629892602 Allianz Global Investors Fund - Allianz Global Equity Growth -WT9- EUR - (0,650%) STK 2,700.000 EUR 170,098.130 459,264,951.00 5.37 LU0604768290 Allianz Global Investors Fund - Allianz Global Metals and Mining -IT- EUR - (0,950%) STK 90,000.000 EUR 601.500 54,135,000.00 0.63 LU1766616152 Allianz Global Investors Fund - Allianz Global Sustainability -WT- EUR - (0,650%) STK 25,000.000 EUR 1,422.730 35,568,250.00 0.42

The accompanying notes form an integral part of these financial statements.

4 VermögensManagement Balance

Investment Portfolio as at 31/12/2020 ISIN Securities Shares/ Holdings Price Market Value % of Currency (in 1,000)/ 31/12/2020 in EUR net Contracts assets LU1584111725 Allianz Global Investors Fund - Allianz Multi Asset Long / Short -W9 (H2-EUR) - (0,790%) STK 380.000 EUR 93,362.120 35,477,605.60 0.41 LU1584112020 Allianz Global Investors Fund - Allianz Multi Asset Opportunities -W9 (H2-EUR) - (0,510%) STK 905.000 EUR 96,315.280 87,165,328.40 1.02 LU1794552932 Allianz Global Investors Fund - Allianz Multi Asset Risk Premia -WT9 (H2-EUR) - (0,790%) STK 400.000 EUR 89,468.790 35,787,516.00 0.42 LU1586358795 Allianz Global Investors Fund - Allianz Volatility Strategy Fund -I- EUR - (0,690%) STK 124,416.002 EUR 968.550 120,503,118.74 1.41 LU1883315480 Amundi Funds SICAV- Amundi Funds European Equity Value -I2- EUR - (0,810%) STK 12,000.000 EUR 1,918.900 23,026,800.00 0.27 LU1861136247 Amundi Index Solutions - Amundi Index MSCI USA SRI UCITS ETF DR EUR - (0,180%) STK 4,000,000.000 EUR 67.741 270,964,000.00 3.17 LU1681049018 Amundi Index Solutions SICAV - Amundi S&P 500 UCITS ETF USD - (0,150%) STK 1,430,000.000 USD 69.567 81,086,177.17 0.95 LU1376384878 BlackRock Strategic Funds - Global Event Driven Fund -A2RF- (1,870%) STK 1,100,000.000 EUR 113.980 125,378,000.00 1.47 LU0549545142 BlueBay Funds - BlueBay Investment Grade Euro Aggregate Bond Fund -I- EUR - (0,570%) STK 1,700,000.000 EUR 192.710 327,607,000.00 3.83 LU2022170018 CS Investment Funds 2 - Credit Suisse (Lux) Edutainment Equity Fund -B- USD - (1,900%) STK 250,000.000 USD 147.250 30,005,721.49 0.35 LU1047850778 DNB Fund SICAV - Technology -A- EUR - (0,800%) STK 180,000.000 EUR 358.324 64,498,392.00 0.75 LU1892829315 Fidelity Funds SICAV - Sustainable Water & Waste Fund -A- USD - (1,950%) STK 12,000,000.000 USD 13.220 129,306,829.41 1.51 LU0735966888 Global Evolution Funds SICAV - Global Evolution Frontier Markets -R- USD - (2,050%) STK 400,000.000 USD 140.310 45,746,447.89 0.53 LU1569900605 Helium Fund SICAV - Helium Performance -E- EUR - (1,340%) STK 79,000.000 EUR 1,064.494 84,095,026.00 0.98 LU0912262358 Helium Fund SICAV - Helium Performance -S-EUR- EUR - (1,140%) STK 26,897.000 EUR 1,310.726 35,254,597.22 0.41 LU0611395327 Investec Global Strategy Fund - Emerging Markets Corporate Debt Fund -I- USD - (0,960%) STK 4,250,000.000 USD 35.150 121,765,153.67 1.42 LU1306385201 LFIS Vision UCITS SICAV - Premia -EB- EUR - (1,080%) STK 57,000.000 EUR 1,038.470 59,192,790.00 0.69 LU1162198839 LFIS Vision UCITS SICAV - Premia -IS- EUR - (1,330%) STK 34,000.000 EUR 1,070.760 36,405,840.00 0.43 LU1480984845 Lombard Odier Funds - Asia Value Bond -N Acc- USD - (0,680%) STK 800,000.000 USD 171.057 111,542,170.74 1.30 LU0289523259 Melchior Selected Trust - European Opportunities Fund -I1- EUR - (1,070%) STK 156,000.000 EUR 300.788 46,922,974.80 0.55 LU1358059555 Melchior Selected Trust - Velox Fund -I1- (1,980%) STK 350,000.000 EUR 109.110 38,188,570.00 0.45 LU1842711506 Morgan Stanley Investment Funds - Global Sustain Fund -J- USD - (0,650%) STK 100,000.000 USD 37.840 3,084,323.26 0.04 LU0915365364 Nordea 1 SICAV - Flexible Fixed Income Fund -BP- EUR - (1,070%) STK 300,000.000 EUR 110.370 33,111,000.00 0.39 LU0503631805 Pictet - Global Environmental Opportunities -P- EUR - (2,020%) STK 300,000.000 EUR 282.920 84,876,000.00 0.99 LU0951570927 Schroder GAIA SICAV - Cat Bond -IF- (1,330%) STK 186,500.000 EUR 1,322.340 246,616,410.00 2.89 LU0326949186 Schroder International Selection Fund - Asian Total Return -C- USD - (1,300%) STK 425,000.000 USD 398.927 138,194,477.25 1.62 LU0133717503 Schroder International Selection Fund - Euro Corporate Bond -A1- EUR - (1,490%) STK 4,120,000.000 EUR 22.818 94,011,396.00 1.10 LU0396332305 UBS (Lux) Bond SICAV - Convert Global (EUR) -I-A3- EUR - (0,510%) STK 168,000.000 EUR 228.000 38,304,000.00 0.45 LU0490618542 Xtrackers - S&P 500 Swap UCITS ETF -1C- USD - (0,150%) STK 6,072,659.000 USD 70.390 348,416,426.16 4.08 United Kingdom 76,086,525.53 0.89 GB0000796242 Baring Europe Select Trust -GBP Income- GBP - (1,550%) STK 1,416,379.510 GBP 48.540 76,086,525.53 0.89 Total fund units 8,066,934,935.87 94.38 Deposits at financial institutions 491,676,470.90 5.75 Sight deposits 491,676,470.90 5.75 State Street Bank International GmbH. Luxembourg Branch EUR 286,351,988.31 3.35 Deposits used for collateralisation of derivatives EUR 205,324,482.59 2.40 Total deposits at financial institutions 491,676,470.90 5.75

The accompanying notes form an integral part of these financial statements.

5 VermögensManagement Balance

Investment Portfolio as at 31/12/2020 Securities Shares/ Holdings Price Unrealised % of Currency (in 1,000)/ 31/12/2020 gain/loss net Contracts in EUR assets Derivatives Holdings marked with a minus are short positions. Listed derivatives -17,477,919.96 -0.21 Financial futures transactions -17,477,919.96 -0.21 Long bond futures -7,357,154.91 -0.09 2-Year US Treasury Bond (CBT) Futures 03/21 Ktr 1,500 USD 110.477 248,401.74 0.00 Euro BTP Futures 03/21 Ktr 91 EUR 151.800 40,950.00 0.00 Euro OAT Futures 03/21 Ktr 1,103 EUR 167.610 -203,910.00 0.00 Ultra Long US Treasury Bond (CBT) Futures 03/21 Ktr 2,150 USD 212.281 -7,442,596.65 -0.09 Purchased index futures 13,214,944.16 0.16 MSCI Emerging Markets Index Futures 03/21 Ktr 1,700 USD 1,272.400 1,219,383.62 0.02 NIKKEI 225 (SGX) Index Futures 03/21 Ktr 1,500 JPY 27,440.000 12,110,967.74 0.14 S&P/TSX 60 Index Futures 03/21 Ktr 407 CAD 1,036.600 -115,407.20 0.00 Short bond futures 2,591,220.00 0.03 10-Year German Government Bond (Bund) Futures 03/21 Ktr -1,467 EUR 177.350 704,160.00 0.01 2-Year German Government Bond (Schatz) Futures 03/21 Ktr -6,520 EUR 112.265 857,560.00 0.01 30-Year German Government Bond (Buxl) Futures 03/21 Ktr -620 EUR 224.360 161,200.00 0.00 5-Year German Government Bond (Bobl) Futures 03/21 Ktr -2,604 EUR 135.100 868,300.00 0.01 Sold index futures -25,926,929.21 -0.31 EURO STOXX 50 Futures 03/21 Ktr -7,868 EUR 3,565.000 -5,062,420.00 -0.06 FTSE 100 Index Futures 03/21 Ktr -1,185 GBP 6,569.500 -868,822.77 -0.01 Hang Seng China Enterprises Index Futures 01/21 Ktr -1,400 HKD 10,704.000 -1,652,218.07 -0.02 S&P 500 E-mini Index Futures 03/21 Ktr -5,578 USD 3,719.900 -14,940,917.53 -0.18 SPI 200 Index Futures 03/21 Ktr -525 AUD 6,617.000 -24,550.61 0.00 Swiss Market Index Futures 03/21 Ktr -317 CHF 10,610.000 -1,036,988.62 -0.01 Topix Index Futures 03/21 Ktr -543 JPY 1,804.500 -2,341,011.61 -0.03 OTC-dealt derivatives 5,868,874.29 0.07 Forward exchange deals 18,312,590.47 0.21 Sold AUD / Bought EUR - 10 Mar 2021 AUD -57,900,000.00 -290,299.61 0.00 Sold CAD / Bought EUR - 10 Mar 2021 CAD -55,700,000.00 513,776.63 0.01 Sold CHF / Bought EUR - 10 Mar 2021 CHF -43,300,000.00 373,293.95 0.00 Sold EUR / Bought CAD - 10 Mar 2021 EUR -112,882,542.81 -1,583,669.72 -0.02 Sold EUR / Bought JPY - 10 Mar 2021 EUR -79,051,758.35 -154,051.97 0.00 Sold GBP / Bought EUR - 10 Mar 2021 GBP -123,000,000.00 -921,281.54 -0.01 Sold JPY / Bought EUR - 10 Mar 2021 JPY -10,470,000,000.00 158,413.64 0.00 Sold USD / Bought EUR - 10 Mar 2021 USD -1,868,000,000.00 19,729,786.09 0.23 Sold USD / Bought JPY - 10 Mar 2021 USD -52,717,955.68 486,623.00 0.00 Swap transactions -12,443,716.18 -0.14 Credit default swaps -1,941,499.89 -0.02 Protection buyer -4,456,446.80 -0.05 Markit iTraxx Europe S32 - 1.00% 20 Dec 2024 EUR 43,000,000.00 -1,278,841.87 -0.02 Markit iTraxx Europe S32 - 1.00% 20 Dec 2024 EUR 13,000,000.00 -172.71 0.00 Markit iTraxx Europe S32 - 1.00% 20 Dec 2024 EUR 51,000,000.00 -292,793.92 0.00 Markit iTraxx Europe S32 - 1.00% 20 Dec 2024 EUR 26,000,000.00 -534,096.88 -0.01 Markit iTraxx Europe S32 - 1.00% 20 Dec 2024 EUR 51,000,000.00 -1,968,970.59 -0.02 Markit iTraxx Europe S32 - 1.00% 20 Dec 2024 EUR 10,000,000.00 -381,570.83 0.00 Protection seller 2,514,946.91 0.03 Markit iTraxx Europe Crossover - 5.00% 20 Dec 2025 EUR 80,000,000.00 1,589,699.07 0.02 Markit iTraxx Europe S33 - 1.00% 20 Jun 2025 EUR 160,000,000.00 925,247.84 0.01 Total Return Swaps -10,502,216.29 -0.12 Total Return Swap on Equity Basket - Fund receives Equity notional amount - pays 10.50% - 15.01.2021 USD 40,000,007.09 -518,943.01 -0.01 Total Return Swap on Index - Fund receives Bloomberg Ex Agriculture Index - pays 0.07% - 10.06.2021 USD 250,000,000.00 1,350,431.02 0.02 Total Return Swap on Index - Fund receives Bloomberg Ex Agriculture Index - pays 0.07% - 10.06.2021 USD 100,000,000.00 -1,684,812.91 -0.02 Total Return Swap on Index - Fund receives Goldman Sachs Equal Weight STR Index - pays 0.00% - 01.02.2021 USD 800,000,000.00 -25,110,792.24 -0.29

The accompanying notes form an integral part of these financial statements.

6 VermögensManagement Balance

Investment Portfolio as at 31/12/2020 Securities Shares/ Holdings Price Unrealised % of Currency (in 1,000)/ 31/12/2020 gain/loss net Contracts in EUR assets Total Return Swap on Index - Fund receives Goldman Sachs GSFXCA02 - pays 0.00% - 21.01.2021 USD 110,000,000.00 -357,459.78 0.00 Total Return Swap on Index - Fund receives Goldman Sachs GSFXCA02 - pays 1.00% - 21.01.2021 USD 429,144.56 -666,671.21 -0.01 Total Return Swap on Index - Fund receives Goldman Sachs Overweight & Equal Weight Commodity Index - pays 0.02% - 01.02.2021 USD 1,000,000,000.00 19,527,089.00 0.23 Total Return Swap on Index - Fund receives J.P. Morgan PMO UW ExAL Div Index - pays 0.00% - 01.02.2021 USD 770,000,000.00 -83,384,752.97 -0.98 Total Return Swap on Index - Fund receives J.P. Morgan PMO UW ExAL Div Index - pays 0.03% - 01.02.2021 USD 1,100,000,000.00 81,737,406.24 0.96 Total Return Swap on Index - Fund receives Morgan Stanley MSBXPM0 Index - pays 0.00% - 01.02.2021 USD 378,000,000.00 -45,381,050.07 -0.53 Total Return Swap on Index - Fund receives Morgan Stanley MSCY DISCO XAL Index - pays 0.03% - 01.02.2021 USD 518,000,000.00 43,987,339.64 0.51 Total derivatives -11,609,045.67 -0.14 Other assets/liabilities EUR 527,232.18 0.01 Fund assets EUR 8,547,529,593.28 100.00 Net asset value per unit - Class A (EUR) (distributing) EUR 136.22 Units in circulation - Class A (EUR) (distributing) SHS 62,748,543

Details of the changes in the composition of the securities portfolio in the year under review can be requested free of charge at the Luxembourg branch of Allianz Global Investors GmbH.

The accompanying notes form an integral part of these financial statements.

7 VermögensManagement Balance

Statement of Operations For the period from 01/01/2020 to 31/12/2020 EUR Interest on - swap transactions 6,067,365.51 Interest on the liquidity portfolio - Positive deposit rates 516,954.41 - Negative deposit rates -1,707,161.13 Income from - investment units 18,589,042.55 Other revenue1 8,115,511.37 Total income 31,581,712.71 Interest paid on - swap transactions -7,695,294.47 - bank liabilities -8,342.16 Taxe d’Abonnement -1,001,530.04 All-in fee -141,062,825.93 Other expenses1) -624.68 Total expenses -149,768,617.28 Net income/loss -118,186,904.57 Realised gain/loss on - options transactions -17,538,413.70 - securities transactions 333,899,470.03 - financial futures transactions -157,090,877.35 - forward foreign exchange transactions 94,295,493.96 - foreign exchange -19,828,777.22 - swap transactions 77,778,395.74 Net realised gain/loss 193,328,386.89 Changes in unrealised appreciation/depreciation on - securities transactions -20,036,869.97 - financial futures transactions -13,090,720.18 - forward foreign exchange transactions 10,036,850.94 - foreign exchange -3,754,506.86 - swap transactions -35,830,914.92 Result of operations 130,652,225.90 1) Other income essentially comprises premiums for investment funds held.

The accompanying notes form an integral part of these financial statements.

8 VermögensManagement Balance

Statement of Net Assets as at 31/12/2020 EUR Fund units (Cost Price EUR 6,803,568,863.23) 8,066,934,935.87 Bank deposits 491,676,470.90 Upfront-payments paid on swap transactions 12,222,383.82 Interest receivable on - swap transactions 155,555.55 Receivable on - Sale of fund shares 254,162.05 Other receivables 4,347,860.00 Unrealised gain on - financial futures transactions 16,210,923.10 - swap transactions 149,117,212.81 - forward foreign exchange transactions 21,261,893.31 Total assets 8,762,181,397.41 Upfront-payments received on swap transactions -1,214,144.59 Interest liabilities on swap transactions -69,827.85 Payable on - Redemption of fund units -2,277,059.16 Other payables -12,891,697.64 Unrealised loss on - financial futures transactions -33,688,843.06 - swap transactions -161,560,928.99 - forward foreign exchange transactions -2,949,302.84 Total liabilities and equity -214,651,804.13 Fund assets 8,547,529,593.28

The accompanying notes form an integral part of these financial statements.

9 VermögensManagement Balance

Statement of Changes in Net Assets for the period from 01/01/2020 to 31/12/2020 EUR Net assets at the beginning of the reporting period 8,742,632,381.50 Subscriptions 511,669,366.77 Redemptions -833,188,540.98 8,421,113,207.29 Distribution -4,235,839.91 Result of operations 130,652,225.90 Net assets at the end of the reporting period 8,547,529,593.28

Statement of Changes in Shares 2020 2.019

Number of units in issue at the beginning of the reporting period 65,269,103 66,087,174 - issued 3,903,531 6,381,766 - redeemed -6,424,091 -7,199,837 Number of units in issue at the end of the reporting 62,748,543 65,269,103 period

Performance of the Fund Class A (EUR) (distributing) %1) 1 year (31/12/2019-31/12/2020) 1.75 2 years (31/12/2018-31/12/2020) 14.51 3 years (31/12/2017-31/12/2020) 7.05 5 years (31/12/2015-31/12/2020) 11.12 10 years (31/12/2010-31/12/2020) 36.40 Since launch2) (27/11/2007-31/12/2020) 40.70 1) The calculation is based on the net asset value per unit (excluding sales charge), assuming distributions, if any, were reinvested. The performance is calculated according to the method recommended by the German BVI (Bundesverband Investment und Asset Management e.V.). 2) Class A (EUR) (distributing): Launch date: 27 November 2007. Initial NAV per unit: EUR 100.00.

Historical performance is not an indicator of current or future performance. Performance data ignores the commission and expenses incurred in issuing and redeeming the units.

The accompanying notes form an integral part of these financial statements.

10 VermögensManagement Balance

Notes to the Financial Statements

Accounting Policies Units in UCITS and UCI are valued at the latest redemption price determined and obtainable. Basis of Accounting Cash and time deposits are valued at their nominal value plus The financial statements are prepared in accordance with the accrued interest. Luxembourg regulations relating to Undertakings for Collective Investment. Assets not denominated in the currency specified for the Fund (“base currency of the Fund”) are converted into the base The base currency of the VermögensManagement Balance is currency of the Fund at the most current middle-market rate of the Euro (EUR). exchange.

Valuation of Assets Security Prices

Assets that are officially listed on a stock exchange are valued The calculation of the Net Asset Value will be in accordance at the latest available price paid. with the provisions of the Prospectus based on the last known security prices on the Valuation Date. Assets that are not officially listed on a stock exchange, but are traded on a regulated market or on other organised markets, The Financial Statements of the Annual Report have been are also valued at the latest available price paid, provided prepared on the basis of the securities’ prices of the most that, at the time of valuation, the Custodian considers that recently calculated and published Net Asset Value of the price to be the best possible price at which the assets can be reporting period. sold. Foreign Currencies Assets whose trade prices are not fair market prices, as well as all other assets, are valued at the probable realisation value, Assets and liabilities in foreign currencies have been converted determined prudently and in good faith. At its discretion, the at the exchange rates stated below: Management Company may authorise other valuation Australian Dollar (AUD) 1 EUR = AUD 1.603829 methods if, in its consideration, such other methods better Pound Sterling (GBP) 1 EUR = GBP 0.903590 represent the fair value of the assets. Hong Kong Dollar (HKD) 1 EUR = HKD 9.511456 Japanese Yen (JPY) 1 EUR = JPY 126.653793 Canadian Dollar (CAD) 1 EUR = CAD 1.570613 Financial futures transactions relating to currencies, securities, Swiss Franc (CHF) 1 EUR = CHF 1.085210 financial indices, interest rates and other permissible financial Singapore Dollar (SGD) 1 EUR = SGD 1.626005 instruments and options thereon and corresponding warrants US Dollar (USD) 1 EUR = USD 1.226849 are, if they are listed on a stock exchange, valued at the most recent price of the stock exchange in question. If there is no Taxation stock exchange listing, in particular with regard to all OTC transactions, valuation is made at the probable realisation The Fund is subject to a “Taxe d’Abonnement” in the Grand value to be determined prudently and in good faith. Duchy of Luxembourg, calculated and payable on the total net assets of the Fund at the end of each quarter unless the Interest-rate swaps are valued at their market value by assets are invested in Luxembourg funds which are themselves reference to the applicable yield curve. subject to a “Taxe d’Abonnement”. The income of the Fund is not taxable in Luxembourg. Swaps tied to indices and to financial instruments are valued at their market value, which is determined by reference to the Distribution and accumulation of income on units are currently index or the financial instrument concerned. not subject to withholding tax in Luxembourg.

11 VermögensManagement Balance

All-in-Fee • Costs of registering the units for public distribution and/or maintaining such registration; All costs to be borne by the Fund are paid from the Fund’s assets: • Costs of issuing unit certificates and, where applicable, coupons and coupon renewals; The Fund pays the Management Company a fee (“all-in fee”) from the assets of the Fund, unless this fee is charged directly • Fees levied by the Paying and Information Agent; to the unitholders within the framework of a specific unit class. • Costs of assessing the Fund by nationally and The fees of the investment managers appointed by the internationally recognised rating agencies; Management Company are paid by the Management Company out of its all-in fee and, if applicable, out of its • Costs related to the use of index names, in particular performance fee. licence fees;

The all-in fee is paid monthly in arrears and calculated pro • Costs and expenses incurred by the Fund and third rata based on the average daily net asset value of the relevant parties authorised by the Management Company of the unit class, unless this fee is charged directly to the unitholders Fund in connection with the acquisition, use and within the framework of a specific unit class. maintenance of internal or external IT systems used by the fund managers and investment advisers; In return for payment of the all-in fee, the Management Company grants the Fund exemption from the following list of • Costs associated with acquiring and maintaining a status fees and charges: entitling the Management Company to invest directly in assets in a country or to act directly as a contracting • Management and central administration agent fee; partner on markets in a country;

• Distribution fees; • Costs and expenses associated with monitoring investment limits and restrictions incurred by the Fund, • Custodian fee; the custodian and any third parties acting on their behalf;

• Registrar and Transfer Agent fee; • Costs for calculating the risk and performance figures and for calculating a performance fee for the • Costs of preparing (including translation) and distributing Management Company by third parties appointed to do the complete sales prospectus, key investor information, so; articles of incorporation, annual, semi-annual and, if applicable, interim reports and any other reports and • Costs associated with obtaining information about communications to unitholders; general shareholders’ meetings of companies or about other meetings of the owners of assets, and costs related • Costs of publishing the sales prospectus, key investor to direct participation or participation through authorised information, articles of incorporation, annual, semi- third parties in such meetings; annual and, if applicable, interim reports and any other reports and communications to unitholders, tax • Postage, telephone, fax and telex costs. information, issue and redemption prices, as well as official notices to unitholders;

• Costs charged by the external auditor for auditing the Fund;

12 VermögensManagement Balance

Fee Structure

All-in-Fee Taxe d’Abonnement in % p.a. in % p.a. VermögensManagement Balance - Class A (EUR) (distributing) 1.86 0.05

Transaction costs

Transaction costs take into account all the costs that were reported or charged separately in the period from 1 January 2020 to 31 December 2020 for the account of the Fund and which are directly related to the purchase or sale of certain assets.

For fixed-interest investments, forward foreign exchange contracts and other derivative contracts, the transaction costs are included in the purchase and sale price of the investment. These transaction costs cannot be identified separately but are included in the performance of the Fund.

Transaction costs of EUR 621,704.82 were incurred in the period under review.

13 VermögensManagement Balance

Ongoing Charges If a Fund invests more than 20% of its assets in other UCITS or UCI that publish Ongoing Charges, the Ongoing Charges of The Ongoing Charges are costs incurred by the Fund (or the these other UCITS or UCI are taken into consideration when respective Unit Classes) during the preceding financial year calculating Ongoing Charges for the Fund (“synthetic Ongoing (excluding transaction costs) and are expressed as a ratio of Charges”); however, if these UCITS or UCI do not publish their the average volume of the Fund (or of the average volume of own Ongoing Charges, then it is not possible to take the the respective Unit Classes) (“Ongoing Charges”). In addition Ongoing Charges of the other UCITS or UCI into consideration to the All-in-Fee as well as the Taxe d’Abonnement, all other when calculating Ongoing Charges. If a Fund does not invest costs are considered except for the incurred transaction costs more than 20% of its assets in other UCITS or UCI, any costs and any performance-related fees. Costs incurred will not be that may be incurred at the level of these UCITS or UCI are not subject to cost compensation. taken into consideration.

Ongoing charges in % synthetic VermögensManagement Balance - Class A (EUR) (distributing) 2.25

14 VermögensManagement Balance

Audit report

To the Unitholders of VermögensManagement Balance

Our opinion

In our opinion, the accompanying financial statements give a true and fair view of the financial position of VermögensManagement Balance (the “Fund”) as at 31 December 2020, and of the results of its operations and changes in its net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements.

What we have audited

The Fund’s financial statements comprise:

• the statement of net assets as at 31 December 2020; • the investment portfolio as at 31 December 2020; • the statement of operations for the year then ended; • the statement of changes in net assets for the year then ended; and • the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier” (CSSF). Our responsibilities under the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the “Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the financial statements” section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of the Fund in accordance with the International Code of Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards Board for Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements. We have fulfilled our other ethical responsibilities under those ethical requirements.

Other information

The Board of Directors of the Management Company is responsible for the other information. The other information comprises the information stated in the annual report but does not include t he financial statements and our audit report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T : +352 494848 1, F : +352 494848 2900, www.pwc.lu

Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S . Luxembourg B 65 477 - TVA LU254825 18 15 VermögensManagement Balance

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors of the Management Company for the financial statements

The Board of Directors of the Management Company is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors of the Management Company is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Management Company either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the financial statements

The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to iss ue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the Management Company;

Only the German version of the present annual report has been reviewed by the Auditor. Consequently, the audit report refers to the German version, other versions result from a conscientious translation made under the responsibility of the Board of Directors of the Management Company. In case of differences between the German version and the translation, the German version shall 16 prevail. VermögensManagement Balance

• conclude on the appropriateness of the Board of Directors of the Management Company’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund to cease to continue as a going concern;

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

PricewaterhouseCoopers, Société coopérative Luxembourg, 22 April 2021 Represented by @esig

@esig Alain Maechling

Further unaudited information

Determining the market risk and leverage effect instruments. The VaR approach represents a statistical method for calculating the potential loss arising from value changes in As part of the risk-management procedure the market risk of the whole Fund. The VaR calculation is generally based on the the Fund is measured and limited either using the commitment “Delta Normal” method (confidence level of 99%, an assumed or Value-at-Risk (VaR) approach (relative or absolute VaR). holding period of 10 days, data history of 260 days), otherwise When determining the market risk of the Fund, the the alternative calculation method is shown in the following commitment approach takes into account the additional risk table. that is generated through the use of derivative financial

At the end of the reporting period, the following approach applied to the Fund for calculating the market risk: Name of the Fund Approach absolute VaR limit

VermögensManagement Balance absolute VaR1) 12.00 1) The VaR approach was changed as at 31/12/2020

The minimum, maximum and average risk budget utilisation VaR approach, it is reported in relation to the absolute VaR (RBU) of the Fund in the period under review can be seen in limit indicated in the table above. The table also shows the the following table. For funds using the relative value-at-risk average leverage effect of the Fund in the period under (VaR) approach, the utilisation is reported in relation to the review. The average leverage effect is calculated as the limit stipulated by the regulatory authorities (i.e. 2 times the average sum of notionals of derivatives. VaR of the defined benchmark). For funds using the absolute

Average leverage Minimum Maximum Average effect in % RBU in % RBU in % RBU in % VermögensManagement Balance 137.11 17.59 59.13 36.13

18 VermögensManagement Balance

Further unaudited information

Disclosures relating to employee remuneration (all figures in EUR) of Allianz Global Investors GmbH for the financial year from 01/01/2020 to 31/12/2020

The following table shows that total amount of remuneration management, risk takers, employees in controlling positions actually paid to the employees of Allianz Global Investors and employees whose total remuneration puts them in the GmbH in the past financial year divided into fixed and variable same remuneration category as members of management components. It is also broken down by members of and risk takers.

Number of employees 1,675 thereof Employees thereof Board thereof Other Risk thereof Employees thereof Risk Taker with Comparable Member Taker with Control Function Compensation Fixed remuneration 164,233,442 7,695,609 1,758,427 1,435,262 449,851 4,052,069 Variable 103,587,135 17,405,428 3,452,759 5,203,209 206,037 8,543,423 remuneration Total remuneration 267,820,577 25,101,037 5,211,186 6,638,471 655,888 12,595,492

Setting the remuneration and experience required in a particular role, and an annual variable remuneration. AllianzGI is subject to the supervisory requirements applicable to investment management companies with regard to The total amount of the variable remuneration payable structuring the remuneration system. Company management throughout the Company depends on the performance of the is usually responsible for decision-making about determination business and on the Company’s risk position and will therefore of employee remuneration. Decisions about the remuneration vary every year. In this respect, the allocation of specific of the management itself are taken by the shareholder. amounts to particular employees will depend on the performance of the employee and their departments during The company has set up a remuneration committee to the period under review. perform the duties required by law. This committee consists of two members of the company’s Supervisory Board, each of Variable remuneration includes an annual bonus paid in cash whom is appointed by the Supervisory Board, where one following the end of the financial year. In the case of member should be an employee representative. employees whose variable remuneration exceeds a certain threshold, a substantial portion of the annual variable Working in close cooperation with the Risk Management and remuneration is deferred for a period of three years. Legal & Compliance departments as well as with external advisers and in conjunction with the management, the Human The deferred portions increase in line with the level of the Resources department has developed the company’s variable remuneration. Half of the deferred amount is linked to remuneration policy under the requirements of the UCITS and the performance of the company, and the other half is AIFM Directives. This remuneration policy applies to the invested in the funds managed by AllianzGI. The amounts company domiciled in Germany and to its branches. ultimately distributed depend on the company’s business performance or the performance of shares in certain Remuneration structure investment funds over several years.

The primary components of monetary remuneration are the In addition, the deferred remuneration elements may be basic salary, which typically reflects the scope, responsibilities withheld under the terms of the plan.

19 VermögensManagement Balance

Performance evaluation whose activities have a significant effect on the risk profiles of the company and the investment funds managed by it. The level of pay awarded to employees is linked to both quantitative and qualitative performance indicators. Risk avoidance

For Investment managers, whose decisions make a real AllianzGI has comprehensive risk reporting in place, which difference in achieving our clients’ investment goals, covers both current and future risks of our business activities. quantitative indicators are geared towards sustainable Risks which exceed the organisation’s risk appetite are investment performance. For portfolio managers in particular, presented to our Global Remuneration Committee, which will the quantitative element is aligned with the Benchmark of the decide, if necessary, on the adjustments to the total client portfolios they manage or with the client’s expected remuneration pool. return, measured over a period of one year and three years. Individual variable compensation may also be reduced or For client-facing employees, goals also include client withheld in full if employees violate our compliance policies or satisfaction, which is measured independently. take excessive risks on behalf of the company.

The remuneration of employees in controlling functions is not Annual review and material changes to the remuneration directly linked to the business performance of individual system departments monitored by the controlling function. The Remuneration Committee did not find any irregularities Risk takers during the annual review of the remuneration system, including a review of the existing remuneration structures as The following groups of employees were qualified as risk well as implementation of the regulatory requirements and carriers: Members of management, risk takers and employees compliance with them. In the course of this centralised and in controlling positions (as identified in current organisational independent review, it was also found that the remuneration charts and job profiles and as assessed in terms of the policy had been implemented in accordance with the influence on the risk profile) as well as all employees whose remuneration regulations stipulated by the Supervisory Board. total remuneration puts them in the same remuneration Furthermore, no material changes were made to the category as members of management and risk takers and remuneration policy in the past financial year.

20 VermögensManagement Balance

Further unaudited information

Techniques for efficient portfolio management

Sections 35 (a)-(c), 40 (a)-(c) and 48 (a), (b) of the European Securities and Markets Authority’s (ESMA’s) guideline (ESMA/2014/937) on exchange-traded funds (ETFs) and other UCITS issues require disclosures in the funds’ annual report on the exposure obtained through efficient portfolio management techniques (securities lending, repos/reverse repos) and/or derivatives, disclosure of the identity of the counterparties to these transactions, statements as to the type and amount of collateral received in this regard and statements as to the issuer’s identity in connection with the OTC derivatives and collateral in the form of securities issued by a Member State.

The following table shows the minimum, maximum and average exposure in the period under review, broken down by technique. The exposure figures for the fund’s minimum or maximum exposure are shown in relation to the fund’s assets on the respective day with the minimum or maximum exposure for the period under review. The average exposure is derived from the simple average of the fund’s daily exposure in relation to the fund’s assets on the respective day. The exposure (counterparty) resulting from techniques for efficient portfolio management or derivatives was considered separately for exchange-traded derivatives, OTC derivatives (including total return swaps), repurchase agreements (repos/reverse repos) and securities lending.

Minimum Maximum Average exposure in % exposure in % exposure in % VermögensManagement Balance exchange-traded derivatives1) 0.00 5.14 0.44 OTC derivatives 0.00 1.79 0.44 Repurchase agreements (repos/ - - - reverse-repos) 2) Securities lending3) - - - 1) During the period under review, the fund had positions in exchange-traded derivatives; however, initial and variation margins were on deposit at all times and therefore the positions had no open exposure. 2) During the period under review, the fund did not enter into any repurchase agreements. 3) During the period under review, the fund did not enter into any agreements in the form of securities loans.

The following table shows the minimum, maximum and average amount of collateral received to reduce the fund’s counterparty risk. The fund’s minimum and maximum collateral is shown as a percentage of the fund assets on the respective day of the period under review. The average amount of collateral is calculated as the simple average of the daily amount of collateral as a percentage of fund assets each day.

Collateral Collateral Collateral (minimum in %) (maximum in %) (average in %) VermögensManagement Balance4) 0.00 0.00 0.00 4) During the period under review, no collateral was deposited.

The following table shows the collateral received to reduce the Company’s counterparty risk. The Company’s collateral is shown as notional as per 31 December 2020.

Nature of collateral Notional Currency VermögensManagement Balance Cash 29,040,000.00 EUR US TREASURY N/B 243,000.00 USD 2.125000% 30 SEP 21 US TREASURY N/B 105,000.00 USD 2.250000% 30 APR 21 US TREASURY N/B 149,000.00 USD 1.500000% 15 FEB 30 US TREASURY N/B 362,000.00 USD 1.500000% 31 OCT 21

21 VermögensManagement Balance

As part of efficient portfolio management and/or derivatives, the fund entered into transactions with the following counterparties during the period under review:

Bank of America Corp, Barclays Plc, BNP Paribas SA, Citigroup Inc, Commerzbank AG, Deutsche Bank AG, Goldman Sachs Group Inc, HSBC Holdings Plc, JPMorgan Chase & Co, Morgan Stanley, Societe Generale SA, Standard Chartered Plc, State Street Corp

There was no issuer whose collateral received exceeded 20% of the fund’s net asset value at the reporting date.

At the reporting date the fund was not completely collateralised by securities issued or guaranteed by a Member State.

The following table shows expenses and revenues according to section 35 (d) of the guideline 2014/937 for the period under review from techniques for efficient portfolio management, including direct and indirect operational costs and fees incurred.

Revenue Expenses VermögensManagement Balance 0.00 0.00

22 VermögensManagement Balance

Further unaudited information

Distribution Policy

Please refer to the distribution tab under each Subfund section disclosed in the Allianz Global Investors Regulatory website: https://regulatory.allianzgi.com/en-gb/b2c/luxemburg-en/funds/mutual-funds

23 VermögensManagement Balance

Note for Investors in the Federal Republic of Germany (unaudited)

All payments to unitholders (proceeds from redemptions, any The Prospectus, the Management Regulations for the Fund, distributions and other payments) can be made through the the current annual and semi-annual reports, the key investor German Paying Agent listed in the “Directory”. Redemption information as well as the issue and redemption prices may be orders may be submitted through the German Paying Agent. obtained as hard copy without charge at the Information Agent listed in the “Directory” and without charge on the With respect to the distribution in the Federal Republic of website https://de.allianzgi.com. For selected unit classes (e.g. Germany, the issue and redemption prices are published on unit classes exclusively for institutional investors or unit classes the internet on the website https://de.allianzgi.com. Any whose bases of taxation are not published in the Federal notices to the investors are published on the webpage Republic of Germany) publication can be performed on one of https://de.allianzgi.com. For selected unit classes (e.g. unit the websites https://regulatory.allianzgi.com or classes exclusively for institutional investors or unit classes https://lu.allianzgi.com. whose bases of taxation are not published in the Federal Republic of Germany) publication can be performed on one of The custodian agreement is available for inspection without the websites https://regulatory.allianzgi.com or charge at the offices of the Information Agent. https://lu.allianzgi.com. Neither the Management Company, the Depositary, the Under Section 298 (2) of the German Capital Investment Code Registrar and Transfer Agent, the Distributor nor the Paying (KAGB), investors in the Federal Republic of Germany are also and Information Agents are liable for errors or omissions in the informed in the following cases by means of permanent data published prices. carrier as defined in Section 167 KAGB:

– Suspension of redemption of units in the Fund, – Notice of termination of Fund management or liquidation of the Fund by the Management Company, – Amendments to the Management Regulations that are not compatible with the existing investment principles, that affect key investor rights or involve fees and reimbursement of charges that can be withdrawn from the Fund, including the background to the amendments and the rights of the investors, – In the event of a merger of the Fund with another fund, the merger information required under Art. 43 of Directive 2009/65/EC, – In the event of conversion of the Fund into a feeder fund or the changes to a master fund in the form of information that must be prepared pursuant to Article 64 of Directive 2009/65/ EC.

24 VermögensManagement Balance

Annex according to Regulation (EU) 2015/2365 with regards to Securities Financing Transactions and Total Return Swaps (unaudited)

in EUR in % of the Assets involved in each type of Securities Financing Transactions and funds entire Total Return Swaps assets Assets involved in Total Return Swaps -10,502,216.29 -0.12 Assets involved in Securities Lending - - Assets involved in Repurchase Agreements - -

Gross volume outstanding transactions in EUR Country where Top 10 counterparties of each types of Securities Financing the Transactions and Total Return Swaps counterparty is established for Total Return Swaps Societe Generale SA 1,350,431.02 FR Citigroup Global Markets Europe AG -518,943.01 DE Morgan Stanley Europe SE -1,393,710.43 DE JPMorgan Chase & Co -1,647,346.73 US BofA Securities Europe SA -1,684,812.91 FR Goldman Sachs Bank Europe SE -6,607,834.23 DE for Securities Lending - - for Repurchase Agreements / Reverse Repurchase Agreements - -

Settlement and clearing information Total Return Swaps: bilateral Securities Lending: trilateral Repurchase Agreements / Reverse Repurchase Agreements: bilateral

Maturity tenor of Securities Financing Transactions and Total Return Gross volume outstanding transactions in EUR Swaps broken down in maturity buckets for Total Return Swaps - less than one day - - one day to one week (= 7 days) - - one week to one month (= 30 days) -1,543,074.00 - one to three months -8,624,760.40 - three months to one year (= 365 days) -334,381.89 - above 1 year - - open maturity - for Securities Lending - open maturity - for Repurchase Agreements / Reverse Repurchase Agreements - open maturity -

Type of collateral received Market Value in EUR for Total Return Swaps - Cash - - Shares - - Debt - for Securities Lending

25 VermögensManagement Balance

- Cash - - Shares - - Debt - for Repurchase Agreements / Reverse Repurchase Agreements - Cash - - Shares - - Debt -

Quality of collateral received Market Value in EUR for Total Return Swaps - AAA (Aaa) - - AA+ (Aa1) - - AA (Aa2) - - AA- (Aa3) - - A+ (A1) - - A (A2) - - A- (A3) - - BBB+ (Baa1) - - BBB (Baa2) - - BBB- (Baa3) - for Securities Lending - AAA (Aaa) - - AA+ (Aa1) - - AA (Aa2) - - AA- (Aa3) - - A+ (A1) - - A (A2) - - A- (A3) - - BBB+ (Baa1) - - BBB (Baa2) - - BBB- (Baa3) - for Repurchase Agreements / Reverse Repurchase Agreements - AAA (Aaa) - - AA+ (Aa1) - - AA (Aa2) - - AA- (Aa3) - - A+ (A1) - - A (A2) - - A- (A3) - - BBB+ (Baa1) - - BBB (Baa2) - - BBB- (Baa3) -

26 VermögensManagement Balance

Currency of collateral received Market Value in EUR for Total Return Swaps - EUR - - USD - - GBP - - JPY - for Securities Lending - EUR - - USD - - GBP - - JPY - for Repurchase Agreements / Reverse Repurchase Agreements - EUR - - USD - - GBP - - JPY -

Maturity tenor of collateral received broken down in maturity buckets Market Value in EUR for Total Return Swaps - less than one day - - one day to one week (= 7 days) - - one week to one month (= 30 days) - - one to three months - - three months to one year (= 365 days) - - above 1 year - - open maturity - for Securities Lending - open maturity - for Repurchase Agreements / Reverse Repurchase Agreements - open maturity -

Return/Costs in EUR in % of overall Data on return and cost returns for Total Return Swaps - Returns for collective investment undertaking 1,007,965,434.65 100 - Costs for collective investment undertaking -940,387,958.88 100 - Returns for manager of the collective investment undertaking 0 0 - Costs for manager of the collective investment undertaking - - Returns for third parties (e.g. agent lender) 0 0 - Costs for third parties - for Securities Lending - Returns for collective investment undertaking 0 0 - Costs for collective investment undertaking - - Returns for manager of the collective investment undertaking 0 0

27 VermögensManagement Balance

- Costs for manager of the collective investment undertaking - - Returns for third parties (e.g. agent lender) 0 0 - Costs for third parties - for Repurchase Agreements / Reverse Repurchase Agreements - Returns for collective investment undertaking 100 - Costs for collective investment undertaking - - Returns for manager of the collective investment undertaking 0 0 - Costs for manager of the collective investment undertaking - - Returns for third parties (e.g. agent lender) 0 0 - Costs for third parties -

Income for the fund from reinvestment of cash collateral, based on all securities financing transactions and total return swaps n.a.

Amount of securities and commodities on loan as proportion of total lendable assets defined as excluding cash and cash equivalents 0

Ten largest collateral issuers Market Value in EUR for Total Return Swaps - for Securities Lending - for Repurchase Agreements / Reverse Repurchase Agreements -

Reinvested collateral as a % of the collateral received, based on all securities financing transactions and total return swaps n.a.

Safekeeping of collateral received by the collective investment Number of custodians / 1 undertaking as part of Securities Financing Transactions and Total account managers Return Swaps in EUR

Safekeeping of collateral granted by the collective investment Proportion of granted collateral in % undertaking as part of Securities Financing Transactions and Total Return Swaps Safekeeping chosen by collateral receiver 100

28 VermögensManagement Balance