Allianz Global Investors U.S. LLC
1. COVER PAGE
Allianz Global Investors U.S. LLC 1633 Broadway New York, NY 10019 us.allianzgi.com
Form ADV Part 2A Brochure September 10, 2018
This brochure provides information about the qualifications and business practices of Allianz Global Investors U.S. LLC (“AllianzGI US”). If you have any questions about the contents of this brochure, please contact us at (800) 656- 6226 and/or [email protected]. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission (the “SEC”) or by any state securities authority. Additional information about AllianzGI US is also available via the SEC’s website www.adviserinfo.sec.gov. AllianzGI US is a registered investment adviser. Registration of an investment adviser does not imply any level of skill or training.
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ITEM 2. SUMMARY OF MATERIAL CHANGES
Since the last update of this brochure on April 24, 2018 there were no material changes. However, please find below a summary of changes:
Under Item 4, office location was added.
Under Item 5, standard fee schedules were added.
Under Item 8, product and risk information was updated.
Under Item 10, affiliate information was updated.
Under Item 15, custody information was updated.
Under Item 17, voting client securities was updated.
Pursuant to SEC Rules, we will ensure that you receive a summary of any materials changes to this and subsequent Brochures within 120 days of the close of our business’ fiscal year. We may provide other ongoing disclosure information about material changes as necessary.
We will provide you with a new Brochure as necessary based on changes or new information, at any time, without charge.
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ITEM 3. TABLE OF CONTENTS
ITEM 1. Cover Page ...... 1 ITEM 2. Summary of Material Changes ...... 2 ITEM 3. Table of Contents ...... 3 ITEM 4. Advisory Business...... 4 ITEM 5. Fees and Compensation ...... 6 ITEM 6. Performance-Based Fees and Side-By-Side Management ...... 15 ITEM 7. Types of Clients ...... 15 ITEM 8. Methods of Analysis, Investment Strategies and Risk of Loss ...... 15 ITEM 9. Disciplinary Information ...... 52 ITEM 10. Other Financial Industry Activities and Affiliations ...... 52 ITEM 11. Code of Ethics, Participation or Interest in Client Transactions and Personal Trading ...... 57 ITEM 12. Brokerage Practices ...... 61 ITEM 13. Review of Accounts ...... 70 ITEM 14. Client Referrals and Other Compensation ...... 70 ITEM 15. Custody ...... 71 ITEM 16. Investment Discretion ...... 71 ITEM 17. Voting Client Securities ...... 71 ITEM 18. Financial Information ...... 74 ITEM 19. Privacy Policy ...... 74
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ITEM 4. ADVISORY BUSINESS From time to time, AllianzGI US may engage in Our Firm other business activities, including licensing of AllianzGI US, a Delaware limited liability company, intellectual property. is a registered investment adviser with principal offices in New York, New York, Boston, Tailoring Services to Client Needs Massachusetts, Dallas, Texas San Diego, California AllianzGI US employs a broad range of portfolio and San Francisco, California. AllianzGI US is a management tools in seeking to control risk, direct, wholly-owned subsidiary of Allianz Global hedge exposures and seek returns consistent with Investors U.S. Holdings LLC, which in turn is its clients' guidelines and restrictions. AllianzGI US owned indirectly by Allianz SE, a diversified global will seek to accommodate any client restrictions it financial institution. AllianzGI US (formerly considers reasonable, such as 1) a restriction on known as Allianz Global Investors Capital LLC) the purchase of a particular security or types of began furnishing discretionary and non- securities, or 2) a restriction on the purchase of a discretionary investment management services on group of securities that are classified by the client May 1, 2010 following the combination of two to be in a particular industry (for example, registered investment advisory affiliates, Nicholas- tobacco), as long as AllianzGI US has agreed with Applegate Capital Management LLC and the client on the industry classification. Other Oppenheimer Capital LLC. On April 1, 2013, proposed restrictions are analyzed on a case-by- AllianzGI US merged with RCM Capital case basis. Management LLC (“RCM”) and RCM’s wholly- owned subsidiary, Caywood-Scholl Capital AllianzGI US generally has the responsibility to Management LLC. Effective October 1, 2016, monitor investment restriction in clients’ Allianz Global Investors Fund Management LLC guidelines. Clients should be aware that their merged with and into AllianzGI US. Effective restrictions can limit AllianzGI US’s ability to act December 2016, AllianzGI US succeeded to the and as a result, their performance may differ from business of Rogge Global Partners Inc. Effective as and may be less successful than that of other of January 1, 2017, AllianzGI US acquired the accounts that are not subject to similar assets of Sound Harbor Partners LLC. Effective July restrictions. AllianzGI US shall not be bound by 1, 2017, AllianzGI US’s wholly owned subsidiary any amendment to a client’s investment NFJ Investment Group LLC merged with and into restrictions unless and until the client and AllianzGI US. The oldest predecessor entity began AllianzGI US have agreed in writing to such operating in 1969. The day-to-day portfolio amendment. management and investment operations of AllianzGI US conducted by its officers, employees AllianzGI US may take up to ten business days (or and other associated persons are overseen by the longer depending on the complexity of the product Executive Committee of its sole and managing mandate) from the time an account is approved to member, Allianz Global Investors U.S. Holdings fully invest an account funded in cash. Similarly LLC. AllianzGI US may take up to ten business days (or longer depending on the complexity of the product Our Services mandate) from the time AllianzGI US has received AllianzGI US provides discretionary and non- instructions to terminate an account to fully discretionary investment management services liquidate the account. If a client intends to fund its throughout the world. AllianzGI US manages account by transferring in-kind securities, client portfolios (either directly or through model AllianzGI US will need to receive from the client, delivery and wrap fee programs) applying various prior to the effective date of its management processes across a variety of investment strategies, duties, a list of such securities to allow AllianzGI including but not limited to domestic equity, US to determine which securities to retain and global equity, international equity, fixed income, which to replace. The client will be responsible for income and growth, high yield bond, balanced all related trading costs and tax liabilities that strategies, multi-asset allocation, risk overlay, result from sales of contributed securities. To convertibles, private credit, distressed debt, assist existing or new clients who seek to liquidate collateralized loans, privately placed debt and portfolios not under AllianzGI US’s management, infrastructure debt and equity. AllianzGI US also AllianzGI US may liquidate the portfolio for such acts as a sub-adviser to wrap fee programs, clients as an accommodation or for a negotiated investment companies and other pooled fee. investment vehicles. AllianzGI US may also provide consulting and research services in connection Separate Accounts with asset allocation and portfolio structure or risk For separate account clients, AllianzGI US provides analytics. investment management services for the assets
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placed under its supervision. Investment advice is or supervising the maintenance of such books and furnished on either a discretionary basis, where records by third parties, and (4) preparation the client authorizes AllianzGI US to make all and/or supervision of the preparation of tax investment decisions for the account, or on a non- filings, regulatory filings, and semi-annual reports discretionary basis, where AllianzGI US makes to Fund shareholders. recommendations to the client but all investment decisions are made by the client and may or may Managed Account/Wrap-Fee Programs not be implemented by the client. AllianzGI US also offers discretionary and non- discretionary investment advisory services Private Funds through wrap fee programs (“Wrap Programs”) AllianzGI US provides advisory or sub-advisory that are generally sponsored by banks, broker- services to private investment funds (“Private dealers, Direct Clients (as defined below) or other Funds”) that are exempt from registration under investment advisers (each a “Sponsor”). the Securities Act of 1933, as amended (the Generally, in a Wrap Program, the client enters “Securities Act”) and the Investment Company Act into an agreement with the Sponsor, who of 1940, as amended (the “Investment Company furnishes a variety of services for a single “wrap” Act”). AllianzGI US or its affiliates may act as fee. managing member or general partner of certain Private Funds. Private Funds may be established The relevant agreements between or among the by AllianzGI US, its affiliates, or third parties. client, the Sponsor and AllianzGI US will generally AllianzGI US, its affiliates and/or their personnel outline the services that will be performed by the may have an ownership or management interest Sponsor, AllianzGI US, and others in the Wrap in a Private Fund. A minimum investment size Programs and a limited number of clients who do may be applicable for participation in a Private not participate in a Wrap Program (“Direct Fund. Additional information concerning these Clients”). Typically, the Wrap Program Sponsor is funds, including advisory fees, is included in the responsible for determining whether a specific relevant fund’s offering documents. AllianzGI US strategy is suitable or advisable for a particular investor. For discretionary Wrap Programs, AllianzGI US is responsible for Registered Investment Companies implementing securities transactions for each AllianzGI US provides investment management investor that are appropriate for the selected and administrative services to the following open- investment strategy (and, if relevant, in and closed-end registered investment companies: accordance with reasonable investment Allianz Funds, Allianz Funds Multi-Strategy Trust, restrictions imposed by an investor and accepted Premier Multi-Series VIT, AllianzGI Institutional by AllianzGI US). For non-discretionary Wrap Multi-Series Trust, and a family of closed-end Programs, AllianzGI US will provide a model funds (collectively the “AllianzGI Funds”). (See portfolio and any subsequent changes to the Item 10 for a list of these funds and for additional Sponsor to be analyzed and implemented at the information.) Sponsor’s discretion. Clients and prospective clients in Wrap Programs should carefully review AllianzGI US selects affiliated and non-affiliated the terms of the Wrap Program disclosure investment managers (the “Sub-Advisers”) to documents to understand the services, minimum provide portfolio management services to one or account size, and expenses, and other terms and more of the Funds. conditions of such Wrap Program.
AllianzGI US provides administrative services to Wrap Program client accounts are typically subject the Funds which may include: (1) matters relating to minimum investment levels which vary by to the operation of the Funds, including any strategy. Accounts with fewer assets than the necessary coordination among the Sub-Advisers, minimum investment levels indicated by the the custodian(s), the transfer agent, the dividend Sponsor may be accepted at AllianzGI US’s disbursing agent, the recordkeeping agent, the discretion. However, the performance of client accountants, attorneys and other parties who are accounts maintained below the standard performing services or operational functions to minimum investment may vary widely from larger the Funds, (2) compliance testing and oversight accounts. Client accounts with assets that fall functions that are necessary to ensure compliance below the minimum indicated by the Sponsor may with the Funds’ investment policies, strategies, be terminated by AllianzGI US. restrictions and guidelines, the federal securities laws, and other applicable laws, (3) maintenance Where AllianzGI US provides investment advisory of the books and records of the Funds in services under non-discretionary model-based accordance with applicable federal and state laws, Wrap Programs, the model-based program
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Sponsor or overlay manager is responsible for level of performance, the success of any investment decisions and performing many other investment decision or strategy, or the success of services and functions typically handled by AllianzGI US’s overall management of any account. AllianzGI US in a traditional discretionary The investment decisions AllianzGI US makes for managed account program. Depending on the client accounts are subject to various market, particular facts and circumstances, AllianzGI US currency, economic, political and business risks, may or may not have an advisory relationship with and the risk that investment decisions will not model- based program clients. To the extent that always be profitable. Many of these risks are this Form ADV Part 2A is delivered to Wrap discussed in Item 8 below, which you should Program clients with whom AllianzGI US has no review carefully before deciding to engage direct advisory relationship, or under AllianzGI US’s services. circumstances where it is not legally required to be delivered, it is provided for informational purposes Assets Under Management only. Further, because a model-based program As of December 31, 2017, AllianzGI US managed Sponsor or overlay manager generally exercises $119.2 billion (USD) in client assets, including investment discretion and, in many cases, $110.9 billion on a discretionary basis and $8.3 brokerage discretion, delivers performance billion on a non-discretionary basis. reporting and other information relating to AllianzGI US’s services for which it exercises investment and/or brokerage discretion is ITEM 5. FEES AND COMPENSATION generally provided for informational purposes only, and may not be representative of model- Separate Accounts based Wrap Program client results or experience. AllianzGI US furnishes investment advice pursuant AllianzGI US is not responsible for overseeing the to a written investment advisory agreement with provision of services by a model-based program each client (the “Agreement”). In addition, the Sponsor and cannot assure the quality of the organizational documents of a fund advised by Sponsor’s services. AllianzGI US will describe the fee charged to investors in such fund. In general, AllianzGI US Investment Model Delivery or Asset Allocation to bases its fees on its standard fee schedule that is in Unaffiliated Third Parties effect at the time the Agreement is entered into, AllianzGI US may also act as a non-discretionary and therefore a client’s fee schedule may be sub-adviser by providing an investment model or different from the standard fee schedule for new asset allocations to unaffiliated third parties separate accounts. Advisory fees may also be (“Model Receiver”), which may manage accounts negotiated with clients and therefore may vary participating in, or sponsor, programs or may be from the standard fee schedule. Generally, either provided directly to clients. party may terminate an Agreement upon 30 day’s prior written notice. Upon termination, clients In this case, AllianzGI US would typically enter into pay the pro-rata portion of fees through the an investment sub-advisory agreement with the termination date. In the event a client has paid Model Receiver. The Model Receiver would quarterly fees in advance and terminates prior to normally have entered into an investment the end of such quarter, AllianzGI US will refund management or sub-advisory agreement with the the client the portion of fees paid that corresponds unaffiliated third party. to the period from the date of termination to the end of such quarter. Pursuant to the investment sub-advisory agreement entered into by AllianzGI US and the AllianzGI US generally calculates its fixed advisory Model Receiver, AllianzGI US would provide fees as a percentage of assets under management. investment recommendations or asset allocations AllianzGI US also may enter into a performance fee to the Model Receiver for one or more of its arrangement with a client pursuant to investment strategies. The Model Receiver has the individualized negotiations, in accordance with all ultimate decision making authority and applicable laws and regulatory requirements. discretionary responsibility for determining which Other investment advisers may charge higher or securities are to be purchased and sold for the lower fees than those charged by AllianzGI US for clients participating in the Programs or which comparable services. asset allocations are made for a client. Performance based fee arrangements may create AllianzGI US cannot guarantee or assure you that an incentive for an adviser to recommend your investment objectives will be achieved. investments which may be riskier or more AllianzGI US does not guarantee the future speculative than those which would be performance of any client's account or any specific recommended under a different fee arrangement.
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AllianzGI US generally charges advisory fees When AllianzGI US and/or certain of its affiliates quarterly in arrears based on the average ending manage multiple accounts for a particular client, market value as of the last business day of each or for a related group of clients, fee calculation month in the calendar quarter. AllianzGI US may may be based on the total assets under also charge advisory fees quarterly in advance management or a relationship fee discount or based on the market value at the beginning of the rebate may be available. Assets invested in quarter, or more or less frequently than quarterly. investment companies generally are not For fixed fee arrangements, AllianzGI US will considered for these purposes, although AllianzGI charge advisory fees in an account that is opened US may elect to consider of such assets in fee on a date other than the first date of a calendar calculations in special circumstances. AllianzGI US quarter on a pro-rata basis from the date of may perform the non-advisory services as an inception of the account to the last day of the accommodation to certain clients. quarter. Unless otherwise agreed to with a client, AllianzGI US will adjust account values for To the extent that a client’s assets are invested in a purposes of calculating fees for each contribution cash investment fund of the client’s trustee or and withdrawal of $100,000 or more during a custodian, the client should be aware that the billing period only if the net total of all such trustee or custodian may also charge management contributions and withdrawals exceed 5% of the or transactional fees with respect to such assets. account’s value at the end of the prior billing period. You may choose to be billed directly for fees, or you may authorize your custodian to pay AllianzGI US AllianzGI US has preferred minimum account directly from your account. If you direct your sizes, based on the character of the account. custodian to pay AllianzGI US from your account, Preferred minimum account sizes vary, and are your custodian should send a quarterly statement listed, by strategy or character, herein. In its sole directly to you, showing transactions in the discretion, AllianzGI US may accept accounts with account, including AllianzGI US’s fees. AllianzGI amounts of assets lower than the indicated US will receive paper or electronic copies of the preferred minimum. In such cases, the fees custodian’s statements. AllianzGI US urges you to charged for investment advisory services may be carefully review these statements, where higher than those fees indicated herein. AllianzGI applicable, and compare the official custodial US may terminate client accounts with assets that records to any account statements AllianzGI US fall below the minimum indicated. may send to you.
It is AllianzGI US’s general policy to charge fees to Separate Accounts Fees (Excluding Wrap Fee clients in accordance with the fee schedule in Programs) effect at the time the client first entered into an Standard separate account fees are as follows as of investment management or investment advisory the date of this brochure: relationship with AllianzGI US. However, in certain circumstances, fees may be subject to negotiation, Unless otherwise indicated, fees and account and fees may be modified for particular clients. minimums are shown in U.S. Dollars. The reasons for such modifications may include, without limitation, the type of product provided, U.S. Large Cap Equity (US Large Cap Select, US the complexity and level of service provided, the Large Cap Core and US Focused Growth,) number of different accounts and the total assets 0.600% on the first $25 Million under management for that client and related 0.500% on the next $50 Million clients, the particular type of client, constraints 0.450% on the next $100 Million imposed by substantial potential capital gains, 0.400% on the balance of assets required attendance at client meetings, other Minimum Separate Account: $25 Million services provided by AllianzGI US, other administrative services provided, or other Disciplined US Core circumstances or factors that AllianzGI US deems 0.500% on the first $20 Million relevant. A different fee schedule may apply if an 0.400% on the next $50 Million account receives services that are more limited 0.350% on the next $100 Million than full discretionary investment management, 0.300% on the balance of assets or if an account has specialized investment Minimum Separate Account: $25 Million objectives, guidelines and restrictions. Certain accounts of persons affiliated with AllianzGI US Mid Cap Growth may be managed without fees or at reduced fees. 0.700% on the first $25 Million 0.600% on the next $50 Million 0.550% on the next $100 Million
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0.500% on the balance of assets 0.750% on the balance of assets Minimum Separate Account: $25 Million Minimum Separate Account: $50 Million
Global/International Small Cap Equity Asia ex Japan Small Cap Equity 0.950% on the first $25 Million 1.000% on the first $50 Million 0.900% on the next $50 Million 0.950% on the next $50 Million 0.850% on the next $100 Million 0.900% on the balance of assets 0.700% on the next $250 Million + Performance Fee 20% of outperformance vs. Negotiable thereafter benchmark Minimum Separate Account: $50 Million Minimum Separate Account: $50 Million Technology
0.750% on the first $170 Million Total Return Pacific 0.700% on the balance of assets Minimum Separate Account: $25 Million 0.800% on the first $50 Million 0.700% on the next $50 Million Sector Mandates (Global Agricultural Trends, 0.650% on the next $100 Million Global Water, Biotechnology, Health Sciences) 0.600% on the balance of assets 0.900% on the first $50 Million Minimum Separate Account: $50 Million 0.750% on the balance of assets Minimum Separate Account: $25 Million Emerging Asia 0.800% on the first $50 Million Global Natural Resources 0.700% on the next $50 Million 0.650% on the first $50 Million 0.650% on the next $100 Million 0.500% on the balance of assets 0.600% on the balance of assets Minimum Separate Account: $25 Million Minimum Separate Account: $50 Million
Private Client Group accounts (Targeted Growth (Tax Managed), Targeted Core Growth (Tax High Dividend Asia Managed)) 0.700% on the first $50 Million 0.600% on the next $50 Million 1.000% on the first $10 Million 0.550% on the next $100 Million 0.700% on the next $10 Million 0.500% on the balance of assets 0.500% on the next $20 Million Minimum Separate Account: $50 Million 0.350% on the next $20 Million 0.300% on the next $40 Million Asia Pacific ex Japan 0.250% on the balance of assets 0.700% on the first $50 Million Minimum Separate Account: $3 Million 0.600% on the next $50 Million U.S. Balanced 0.550% on the next $100 Million 0.500% on the balance of assets 0.650% on the first $10 Million Minimum Separate Account: $50 Million 0.500% on the next $10 Million
0.450% on the next $20 Million Japan Equity 0.400% on the next $20 Million 0.300% on the next $40 Million 0.650% on the first $50 Million 0.250% on the balance of assets 0.500% on the next $50 Million Minimum Separate Account: $10 Million 0.450% on the next $100 Million 0.5 00% on balance above $200 Million
Minimum Separate Account: $50 Million Single Country Asian Equity (China Equity, Korean
Equity, China A-Shares) Japan Mid-Small Cap Equity 0.800% on the first $50 Million 0.800% on the first $50 Million 0.700% on the next $50 Million 0.750% on the next $50 Million 0.650% on the balance of assets 0.700% on the balance of assets Minimum Separate Account: $50 Million Minimum Separate Account: $50 Million
Best Styles (Global Developed, Global All Country, Asia ex Japan Mid Cap Equity (Little Dragons) Global Managed Volatility, Pacific, Europe, EMU, 0.900% on the first $50 Million Euroland) 0.850% on the next $50 Million 0.400% on the first $150 Million 0.800% on the next $100 Million
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0.300% on the balance of assets Minimum Separate Account: $150 Million Emerging Markets Systematic 0.800% on the first $50 Million Best Styles US 0.750% on the next $100 Million 0.300% on the first $150 Million 0.7000% on the next $100 Million 0.250% on the next $500 Million 0.600% on the balance of assets 0.200% on the balance of assets Minimum Separate Account: $25 Million Minimum Separate Account: $150 Million Emerging Markets Consumer Best Styles Emerging Markets 1.000% on the first $25 Million 0.450% on the first $100 Million 0.800% on the next $25 Million 0.400% on the next $50 Million 0.750% on the balance of assets 0.350% on the balance of assets Minimum Separate Account: $25 Million Minimum Separate Account: $100 Million Emerging Markets Small Cap Global Sustainability 1.000% on the first $25 Million 0.800% on the first $35 Million 0.950% on the next $25 Million 0.550% on the next $50 Million 0.900% on the balance of assets 0.400% on the next $100 Million Minimum Separate Account: $25 Million 0.350% on the balance of assets Minimum Separate Account: $35 Million US Micro Cap Opportunities Europe Equity Growth Select 1.100% on the first $25 Million 0.650% on the first $50 Million 1.000% on the next $25 Million 0.500% on the next $50 Million 0.950% on the balance of assets 0.450% on the next $100 Million Minimum Separate Account: $20 Million 0.400% on the balance of assets Minimum Separate Account: $30 Million Global/ International Small Cap Opportunities 0.900% on the first $50 Million International Growth 0.800% on the next $50 Million 0.750% on the first $25 Million 0.700% on the balance of assets 0.650% on the next $25 Million Minimum Separate Account: $25 Million 0.550% on the next $50 Million 0.500% on the balance of assets US Small Cap Growth Minimum Separate Account: $30 Million 0.800% on the first $25 Million 0.700% on the next $25 Million Dynamic Multi-Asset Plus 0.600% on the balance of assets 0.600% on the first $500 Million Minimum Separate Account: $20 Million 0.550% on the next $500 Million 0.500% on the balance of assets US Convertibles Minimum Separate Account: $250 Million 0.750% on the first $50 Million 0.625% on the next $50 Million Dynamic Multi-Asset Plus Risk Management 0.500% on the balance of assets Overlay Minimum Separate Account: $50 Million
0.250% on the first $500 Million US High Yield 0.240% on the next $500 Million 0.550% on the first $50 Million 0.230% on the next $1 Billion 0.400% on the next $50 Million 0.200% on the balance of assets Negotiable on the balance of assets Minimum Separate Account: $500 Million Minimum Separate Account: $50 Million
Asset Allocation Advisory US Short Duration High Income 0.500% on the first $50 Million 0.225% on the first $500 Million 0.450% on the next $50 Million 0.200% on the next $500 Million Negotiable on the balance of assets 0.175% on the next $1 Billion Minimum Separate Account: $50 Million 0.150% on the balance of assets Minimum Separate Account: $250 Million
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Advanced Fixed Income Global Aggregate Structured Alpha 1000 0.250% on the first $150 Million 30% of quarterly performance over 90-Day T- 0.200% on the next $100 Million Bill 0.150% on the balance of assets Minimum Separate Account Size: $250 Million Minimum Separate Account: $150 Million Structured Alpha U.S. Equity 500 US Micro Cap 30% of quarterly performance over S&P 500 1.000% on the first $25 Million Index 0.950% on the next $25 Million Minimum Separate Account Size: $250 Million 0.900% on the balance of assets Minimum Separate Account: $20 Million Structured Alpha 1000 Plus 30% of quarterly performance over 90-Day T- US Ultra Micro Cap Bill 1.250% on the first $25 Million Minimum Separate Account Size: $250 Million 1.150% on the next $25 Million 1.000% on the balance of assets Structured Alpha U.S. Equity 250 Minimum Separate Account: $15 Million 30% of quarterly performance over S&P 500 Index US Small-Mid Cap Growth Minimum Separate Account Size: $250 Million 0.850% on the first $25 Million 0.750% on the next $25 Million Structured Alpha Global Equity 500/Structured 0.700% on the balance of assets Alpha Global Equity 350 Minimum Separate Account: $20 Million 30% of quarterly performance over MSCI ACWI Investable Market Index US Systematic Small Cap Growth / US Systematic Minimum Separate Account Size: $250 Million Small Cap 0.800% on the first $25 Million Structured Alpha Emerging Markets Equity 350 0.700% on the next $25 Million 30% of quarterly performance over Vanguard 0.650% on the balance of assets FTS Emerging Markets ETF Minimum Separate Account: $20 Million Minimum Separate Account Size: $250 Million
CLO Structured Alpha U.S. Fixed Income 250 0.550% on the first $50 Million 0.400% on the next $50 Million 30% of quarterly performance over Barclays Negotiable on the balance of assets US Aggregate Bond Index Minimum Separate Account: $50 Million Minimum Separate Account Size: $250 Million
Emerging Markets Debt Structured Alpha Large Cap Equity 350 0.450% on the first $50 Million 30% of quarterly performance over S&P 500 0.350% on the next $50 Million Index 0.300% on the balance of assets No Minimum Separate Account Size Minimum Separate Account: $50 Million
Structured Return Emerging Market Local Currency Debt 0.450% on the first $50 Million 0.850% on all assets 0.350% on the next $50 Million Minimum Separate Account Size: $200 Million 0.300% on the balance of assets Minimum Separate Account: $50 Million U.S. Equity Hedged 0.600% on all assets Infrastructure Debt/Equity Minimum Separate Account Size: $50 Million As negotiated based on size of the account Global Aggregate Structured Alpha 500 0.200% on the first $50 Million 30% of quarterly performance over 90-Day T- 0.150% on the balance of assets Bill Minimum Separate Account: $50 Million Minimum Separate Account Size: $250 Million Global Government/Sovereign Bonds
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0.250% on the first $50 Million 0.700% on the next $25 Million 0.150% on the balance of assets 0.600% on the next $50 Million Minimum Separate Account: $50 Million 0.450% on the balance of assets Minimum Separate Account: $25 Million
Global High Yield/Selective Global High Yield Global Dividend Value 0.700% on the first $25 Million 0.450% on the first $50 Million 0.650% on the next $25 Million 0.350% on the next $50 Million 0.550% on the next $50 Million 0.300% on the balance of assets 0.450% on the balance of assets Minimum Separate Account: $50 Million Minimum Separate Account: $25 Million
Global Credit 0.250% on the first $50 Million International Small Cap Value 0.200% on the next $50 Million 0.950% on the first $50 Million 0.150% on the balance of assets 0.850% on the next $50 Million Minimum Separate Account: $50 Million 0.700% on the balance of assets Minimum Separate Account: $25 Million
Short Duration Global Real Estate Emerging Markets Value 0.250% on all assets 0.90% on the first $50,000,000 Minimum Separate Account: $50 Million 0.85% on the next $50,000,000
0.80% on the next $100,000,000 Global Multi Asset Credit 0.70% on the balance of assets 0.350% on the first $50 Million Minimum Separate Account: $25 Million 0.300% on the next $50 Million 0.250% on the balance of assets Minimum Separate Account: $50 Million US Core Fixed Income-LDI Strategy 0.25% on the first $50,000,000 Total Return 0.20% on the next $50,000,000 0.15% on the next $100,000,000 0.300% on the first $100 Million 0.12% on the next $250,000,000 0.250% on the balance of assets Negotiable on the balance of assets Minimum Separate Account: $50 Million Minimum Separate Account: $50 Million
Dividend Value and Large-Cap Value US Core Fixed Income-Core Strategy 0.600% on the first $25 Million 0.20% on the first $150,000,000 0.500% on the next $50 Million 0.14% on the next $100,000,000 0.400% on the next $100 Million 0.12% on the next $250,000,000 0.350% on the balance of assets Negotiable on the balance of assets Minimum Separate Account: $25 Million Minimum Separate Account: $150 Million
Mid-Cap Value, Mid-Cap Value 100, and All-Cap US Core Fixed Income-Core Plus Strategy 0.25% on the first $150,000,000 Value 0.17% on the next $100,000,000 0.85% on the first $25,000,000 0.14% on the next $250,000,000 0.55% on the next $25,000,000 Negotiable on the balance of assets 0.40% on the next $50,000,000 Minimum Separate Account: $150 Million 0.35% on the balance of assets Minimum account size: $25 Million Target Date Strategies AllianzGI US does not maintain a standard fee Small-Cap Value schedule for Target Date Strategies. Actual fees are individually negotiated and may vary depending 0.90 % on the first $25,000,000 on a number of factors, including the size of the 0.85% on the next $25,000,000 portfolios, the portfolio’s asset allocation, 0.75 % on the balance of assets additional services or differing levels of servicing Minimum Separate Account: $25 Million or as otherwise agreed with the client.
International Value 0.750% on the first $25 Million
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Commingled Funds may receive additional compensation in Mutual Funds, Funds of Funds and Closed-End connection with management and other services Funds performed (e.g., monitoring and other fees) for portfolio companies of the Private Funds. This In addition to the separate account services practice may present a conflict of interest and may described above, AllianzGI US provides advisory or give the firm’s supervised persons and AllianzGI sub-advisory services to registered investment US an incentive to recommend investments based companies (“Funds”) managed by AllianzGI US, its on the compensation received rather than the affiliates or unaffiliated advisers. Additional Funds’ needs. The management fees for the Funds information concerning a Funds’ investment may be offset by a portion of certain fees earned by management fees, and other expenses, is AllianzGI US and their affiliates and by certain contained in the prospectus and statement of expenses incurred by the Funds as provided in the additional information. Investors are advised to offering documents. AllianzGI US may reduce the review prospectus and statement of information management fee payable by any investor prior to investing in a Fund. (including any affiliated investor). The Funds’
management fees are calculated and deducted by AllianzGI US’s compensation for acting as an the fund administrator. adviser or sub-adviser to Funds is typically calculated as a percentage of a Fund’s average net Advisory fees for Private Funds are assessed by the assets, and may vary depending on a number of funds’ administrator. The Private Funds may enter factors including the investment strategy into agreements with certain investors which in employed, the type of Fund, and the amount of some cases may result in lower management fees assets under management. The market value of a and incentive allocations than disclosed in Fund’s portfolio for purposes of calculating fees AllianzGI US’s standard fee schedule. AllianzGI will be based on the Fund custodian’s valuation. US’s current standard fee schedule for new An investment in a Fund will typically be reduced investments in Private Funds, if different from by the management fees and fund expenses. separate account fees disclosed above, are as
follows: AllianzGI US may also receive fees for providing or procuring administrative services to certain of the AllianzGI Global Dynamic Allocation LLC Funds. These administrative fees generally are 0.600% on the first $50 Million based on a percentage of the average daily net 0.550% on the next $50 Million assets of the respective Funds and are negotiated 0.500% thereafter with the relevant Fund Board. Minimum Account Size: $10 Million
Private Funds AllianzGI Managed Futures LLC AllianzGI US also provides advisory or sub- Clients can select from the following Variable advisory services to Private Funds and it or its or Fixed Fee schedules: affiliates may act as managing member or general Variable Fee partner of certain Private Funds. Private Funds 0.000% on all assets plus 25% of quarterly may be established by AllianzGI US, its affiliates, or performance over 90-Day T-Bill third parties. AllianzGI US, its affiliates and/or their personnel may have an ownership or Fixed Fee management interest in a Private Fund. A minimum account size may be applicable for 0.700% on all assets participation in a Private Fund. Additional information concerning these funds, including Minimum Account Size: $10 Million advisory fees, is typically included in the relevant fund’s offering documents. AllianzGI Emerging Markets Consumer LLC Certain Private Funds may also include 0.800% on all assets performance based carried interest, incentive fees Minimum Account Size: $3 Million and other fees. The amount of, and the timing, manner and calculation of, the management fees AllianzGI Convertible LLC and carried interest for the these fund are 0.25% on all asset plus 20% of quarterly established by AllianzGI US, as modified by performance over BofA Merrill Lynch All negotiations with investors in the funds, and are Convertibles Index set forth in the respective fund’s offering Minimum Account Size: $100 Million documents received by each investor prior to investment in the fund. AllianzGI US or its affiliates
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AllianzGI International Small-Cap Opportunities incur additional overall costs. Additional LLC information on AllianzGI US’s brokerage practices 0.700% up to $50 Million is set forth below under Item 12 Brokerage 0.65% on next $50 Million Practices. 0.60% above $100 Million Minimum Account Size: $3 Million Investment Model Delivery/Asset Allocation to Third Parties AllianzGI Emerging Markets Small Cap LLC AllianzGI US provides investment models to 0.700% up to $25 Million unaffiliated broker-dealers or investment advisers 0.80% on next $75 Million and in return receives a portion of the advisory fee 0.75% above $100 Million received by these unaffiliated parties from their Minimum Account Size: $3 Million clients. Generally, these entities will pay a portion of the fee they receive from their respective clients AllianzGI China A Shares LLC to AllianzGI US. The advisory fees may vary by 0.65% on all assets strategy, but are generally between .25% and .40% Minimum Account Size: $3 Million of total assets under management. Fees may be payable in arrears or in advance, typically on a US Short Duration High Yield Bond Fund quarterly basis. 0.400% on all assets Minimum Account Size: $100,000 Compensation from the Sale of Securities AllianzGI US’s supervised persons and related registered sales personnel typically market Sound Harbor Credit Solutions Fund II L.P. AllianzGI US investment capabilities to various 1.500% on invested capital prospects and intermediaries either directly
through separate accounts and Wrap Programs Managed Account and Wrap Fee Programs and indirectly through Funds advised or sub- AllianzGI US also receives fees for providing advised by AllianzGI US. discretionary advisory services to Wrap Program Sponsors. AllianzGI US does not maintain a Certain of AllianzGI US’s supervised persons and standard fee schedule for discretionary advisory related registered sales personnel also may be services to Wrap Programs. The advisory fees are associated with an affiliated broker-dealer, and in typically negotiated with, and paid by, the Sponsor that capacity may engage in marketing or selling pursuant to an agreement between the parties. activities with respect to shares or interests in The advisory fees may vary by Sponsor and Funds and Private Funds advised or sub-advised by strategy, but are generally between .25% and .75% AllianzGI US. (See Item 10 for more information of total assets under management in the about other financial industry activities and respective Wrap Program or Direct Client account. affiliations.) The Funds and Private Funds may pay Generally, fees are payable quarterly in an investment management or administrative fee advance. Direct Clients pay AllianzGI US a fee in to AllianzGI US in addition to broker-dealer accordance with their Agreements with AllianzGI receiving sales commissions or distribution fees US. Wrap-fee clients typically receive a brochure from AllianzGI US or an affiliate, including 12b-1 detailing the wrap-fee program from the Wrap fees, loads or contingent deferred sales charges, Program Sponsor prior to their selection of payable to broker dealers by the Funds or Private AllianzGI US as investment manager. Fees and Fund or their investors. features of each program offered by the various Wrap Program Sponsors vary and therefore, wrap- Certain AllianzGI US supervised persons and fee clients should consult the Wrap Program related registered sales personnel may be Sponsor’s brochure for the specific fees and compensated by AllianzGI US for successful features applicable to their program. marketing or selling activities with respect to shares or interests in Funds and Private Funds In most cases, because the Sponsor does not advised or sub-advised by AllianzGI US. Certain charge an additional commission for brokerage AllianzGI US supervised persons and related transactions, it will usually be more cost effective registered sales personnel do not receive to the client for AllianzGI US to execute transaction-based compensation. transactions through the Sponsor instead of through other broker-dealers. However, if Clients may purchase certain of the investment AllianzGI US determines that the Sponsor may not products recommended by AllianzGI US directly or be in the position to provide best execution, through banks, broker-dealers and other AllianzGI US may select another broker-dealer to investment advisers that are not affiliated with effect transactions which may cause the client to AllianzGI US. Doing so may result in fee and
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execution charges that are lower (or higher) than those charged by AllianzGI US or its affiliates. • Mark-downs: the prevailing market price, less the amount a dealer pays to Client Service and Sales purchase the security from the client and AllianzGI US may be compensated directly with is included in the price of the security. respect to services that it provides to one or more of its affiliated advisers. In other cases, affiliated • Spreads: the difference between the advisers may fund the shared costs of AllianzGI US, current purchase or bid price (that is, the including the compensation paid to sales and price someone is willing to pay) and the client service personnel. current or offer price (that is the price at which someone is willing to sell) and is Other Fees and Expenses included in the price of the security. The In addition to the advisory fees described above, difference or spread narrows or widens clients (and investors in Funds and Private Funds) in response to the supply and demand will be subject to other fees and expenses in levels of the security. connection with AllianzGI US’s advisory services. Investors in Funds and Private Funds should Custody and Other Fees carefully review the prospectus, offering For separate account clients and Wrap Program documents or other disclosure documents for a clients, AllianzGI US does not select account description of fees and expenses. custodians on behalf of clients or serve as the custodian of client account assets. The custodian Transaction Charges appointed by the client will charge custody and Clients, except those who participate in a Wrap other fees that are in addition to the advisory fees Program where the Sponsor executes securities payable to AllianzGI US. transactions, will pay brokerage commissions, mark-ups, mark-downs, other commission On behalf of its separate account clients, Wrap equivalents and/or transaction costs related to Program clients, and Fund clients, AllianzGI US transactions effected for their accounts to may invest or recommend investment in Funds, executing broker-dealers. As described in Item 12 exchange-traded funds (“ETFs”), and other pooled Brokerage Practices, AllianzGI US will effect these investment vehicles. This may include the transactions subject to its obligation to seek best investment in funds managed by Pacific overall execution. The different types of execution Investment Management Company LLC (“PIMCO”). charges include: When AllianzGI US invests client assets in these investment vehicles, unless otherwise agreed and • Commissions: the amount charged by a where permitted by applicable law, the client will broker for purchasing or selling bear its proportionate share of fees and expenses securities or other investments as an as an investor in the investment vehicle in agent for the client and is disclosed on addition to AllianzGI US’s investment advisory or client’s trade confirmations or otherwise. sub-advisory fees. The investment vehicle's prospectus, offering documents or other • Commission equivalents: an amount disclosure documents contain a description of its charged by a dealer for purchasing or fees and expenses. selling securities or other investments in certain riskless principal transactions. In addition, AllianzGI US may invest client assets Riskless principal transactions includes or recommend that clients invest in shares or but is not limited to the purchase of other interests in certain funds to which AllianzGI equity linked notes, the commitment of US or its related persons provide investment capital, or transactions in which a dealer, advice or other services, and from which AllianzGI after having received an order to buy US and its affiliates (including PIMCO) receive from a client, purchases the security from advisory, administrative and/or distribution fees. another person to offset a To the extent that AllianzGI US invests client assets contemporaneous sale to the client or, in an affiliated fund (including PIMCO Funds), after having received an order to sell AllianzGI US may, depending on the arrangement from a client, sells the security to another with a separate account client or Wrap Program person to offset a contemporaneous Sponsor, and any legal requirements, waive purchase from the client. investment advisory fees on the assets invested in such investment company, credit the account for • Markups: the price charged to a client, the fees paid by the Fund to AllianzGI US's related less the prevailing market price and is persons, avoid or limit the payment of duplicative included in the price of the security. fees to AllianzGI US and its related persons
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through other means, or charge fees both at the investment company level and separate account • individuals level. To the extent that fees and expenses • high net worth individuals incurred by any Fund purchased for the client’s • corporations account are in addition to certain of the expenses • corporate pension and profit-sharing covered by the managed account/wrap account plans fee, AllianzGI US and its affiliates may receive • public pension and profit-sharing plans additional economic benefit when a client account • retirement plans is invested in such fund, and a conflict of interest • Taft-Hartley plans may exist. • charitable institutions, religious organizations, foundations, endowments In certain instances in which AllianzGI US receives • investment companies, private a minimum account fee because of a minimum investment funds and other commingled account size and AllianzGI US invests client assets vehicles in an affiliated fund (including PIMCO Funds), • trusts AllianzGI US may credit the account for the fees • variable annuity plans, variable paid by the Fund to AllianzGI US's related persons insurance trusts in order to avoid the payment of a duplicative fee • insurance companies to AllianzGI US or its related persons. This may • supranational organizations result in a client directly paying less than another • client with a similar minimum account fee that is governmental entities • not invested in an affiliated fund. investment advisers • Wrap Fee Programs
Investors in Private Funds are generally required ITEM 6. PERFORMANCE-BASED FEES AND SIDE- to be “accredited investors” as defined under BY-SIDE MANAGEMENT Regulation D of the Securities Act and may be
required to be “qualified purchasers” as defined Performance-Based Fees under the Investment Company Act. Investors in In addition, or as an alternative to the standard fee certain Private Funds may be charged arrangements described above, AllianzGI US may performance-based compensation if such enter into performance fee arrangements with investors are “qualified clients” as defined in Rule qualified clients pursuant to individualized 205-3 under the Investment Advisers Act of 1940, negotiations. Performance-based fee as amended (the “Advisers Act”). In addition, the arrangements may create an incentive for an Private Funds may require all investors to make Adviser to recommend investments which may be representations concerning their sophistication as riskier or more speculative than those which investors and their ability to bear the risk of loss of would be recommended under a different fee their entire investment under AllianzGI US’s arrangement. management.
Side-by-Side Management Certain Wrap Fee Program investors, shareholders in investment companies and investors in other AllianzGI US may manage accounts with fixed pooled products (including investors in Private management fees (“fixed fee accounts”) alongside Funds) will not be deemed advisory clients of other accounts with performance-based fees AllianzGI US. (“performance fee accounts”). There are potential conflicts of interest that arise due to the side-by- side management of fixed fee accounts with ITEM 8. METHODS OF ANALYSIS, INVESTMENT performance fee accounts as there may be an STRATEGIES AND RISK OF LOSS incentive to favor the performance fee accounts over the fixed fee accounts in the allocation of The following are broad descriptions of the investment opportunities. AllianzGI US has methods of analysis and investment strategies implemented side-by-side policies and procedures employed by AllianzGI US. It should be noted that designed to address this conflict to ensure that all investing in securities involves risk of loss that clients are treated fairly and equitably. clients should be prepared to bear.
ITEM 7. TYPES OF CLIENTS METHODS OF ANALYSIS
Equities AllianzGI US provides portfolio management services to a variety of clients including: Centralized Equity Research Platform
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AllianzGI US maintains a research staff that generated by AllianzGI US’s clients. (See response monitors a broad universe of stocks for to Item 12 below.) comparative purposes (the “Research Department”). It makes use of contacts at several AllianzGI US also may from time to time utilize the levels within companies, and, where appropriate, research services of doctors representing medical with a company’s competitors, end-users and specialties likely to be affected by medical, suppliers. The Research Department’s analysts technological and economic developments in follow a global universe of companies to medicine, health care and related areas. These determine whether they are good candidates for doctors may serve as independent contractors and investment, and communicate recommendations be compensated by broker-dealers who provide to the appropriate portfolio management research services to AllianzGI US in exchange for team. AllianzGI US may also receive proprietary commissions generated by AllianzGI US clients. research from, and provide proprietary research (See response to Item 12 below.) (including Grassroots® Research Reports described below) to certain investment AllianzGI US may also employ quantitative management affiliates. (See response to Item 10 analysts who contribute to the overall investment below.) efforts of the firm. Such analysts’ main focus is to provide risk and performance analyses of Substantial emphasis is placed on the Research portfolios to assist in future investment decisions. Department’s own fundamental research.
However, AllianzGI US also uses outside research Fundamental Growth Equity Strategies in two ways. First, the opinions of a broad group of AllianzGI US’s primary equity products emphasize industry and company specialists are considered a team approach to asset management. Portfolio to supplement the analysis of AllianzGI US’s management teams take advantage of the global research staff. As described in Item 12, this resources of Allianz Global Investors to select research information may be provided by brokers securities. The objective is to develop for each who execute portfolio transactions for AllianzGI client a diversified, yet concentrated portfolio of US’s clients. Second, “street” opinions, analyses high quality growth companies selling at and estimates on stocks, groups and economic reasonable prices. AllianzGI US may also, from data are monitored. time to time, invest in cyclical and semi-cyclical
companies. In addition to its fundamental traditional research activities, AllianzGI US uses research produced by ® New purchase ideas are primarily generated by Grassroots Research, a division within the Allianz ® AllianzGI US’s fundamental research department, Global Investors group of companies. Grassroots Grassroots®, and the portfolio management teams Research augments AllianzGI US’s own traditional (domestic and international). External research is research methods by seeking to verify (or also used to generate ideas. disprove) market information pertaining to various companies or industries and by identifying Before purchase, all companies are evaluated for and analyzing marketplace trends. AllianzGI US ® their growth and quality characteristics. All stocks believes that Grassroots Research provides a are evaluated on their valuation characteristics. valuable complement to its traditional research AllianzGI US seeks to invest in companies that methodology. offer long-term sustainable growth in earnings,
® revenues, or cash flow, have strong management AllianzGI US maintains staff in its Grassroots and financial statements, and offer good relative Research unit. There are also freelance journalists and absolute risk-adjusted return characteristics. and field force personnel located throughout the world, including Eastern and Western Europe, AllianzGI US may sell a company’s stock if it Asia, Australia, Latin America, as well as the believes that a company’s growth or quality has United States who collect data and other been impaired, or when it believes that the risk- information through interviews conducted with adjusted return characteristics are no longer various sources, including consumers, suppliers, attractive. A company may also be sold when a service providers, trade sources, polls and price or valuation target is reached or when better government agencies. The journalists prepare ® alternatives are identified. research reports that the Grassroots employees then edit and finalize. The freelance journalist and Portfolio management teams construct the field force personnel typically work as portfolios in accordance with specific client independent contractors and are compensated by investment objectives, guidelines and restrictions. broker-dealers who provide research services The portfolio managers make stock selection and to AllianzGI US in exchange for commissions industry decisions with significant input from the
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analyst teams. The resulting portfolios are contacts. This interaction provides an invaluable diversified, yet concentrated, and are composed of source of information on the key differences issuers that AllianzGI US believes are high quality between competing companies. The investment growth companies offering above average risk- team meets with company management at their adjusted return prospects. office, in a company's office or at industry conferences. For those clients who choose to be fully invested at all times, cash positions generally will average The investment team seeks multiple perspectives, between 2% to 5% or less, except when additional both positive and negative, on every company cash is necessary for transaction settlement or under consideration. This allows the investment until reinvestment decisions are made. For other team to cross-verify and challenge its thesis on clients, whose investment objectives, guidelines, each company that is followed. The investment and restrictions permit higher cash levels, team does not use external contacts for their AllianzGI US may, from time to time, increase the recommendations or price targets, merely for cash levels in the account to the extent that factual information. market conditions warrant. Cash levels also may be increased in anticipation of expected client Technology integrates and strengthens the entire withdrawals. The percentage of each type of research and portfolio management process. The investment in a particular account is likely to vary, investment team uses a proprietary research notes based on a number of factors, including, but not database, designed to document research notes limited to, market conditions, relative investment and share fundamental information. The firm's opportunities, and each client’s particular internally developed systems interface with investment objectives, guidelines, and restrictions. multiple real-time company, industry and market- level fundamental and technical data, as well as In some instances quantitative methods may be analyst reports and news feeds. These include utilized in the fundamental-based strategies. Bloomberg, Compustat, FactSet, First Call, I/B/E/S Quantitative methods may include proprietary Express, Reuters, WONDA and Worldscope. modeling for options overlay strategies. In addition, the open floor architecture in the San Diego office, in which all investment professionals US Small Cap Strategies share one common space, promotes easy exchange of information and insights regarding The US Small Cap Growth investment team investment candidates and portfolio holdings. undertakes their own research to confirm if a new This allows for a continuous exchange of idea meets their investment criteria of positive information and ideas among the US Small Cap change, sustainability and timeliness, or if an Growth team. existing holding no longer meets those criteria. Systematic Strategies To identify companies with signs of positive fundamental change and sustainability that are The Systematic Investment team believes ongoing also mis-priced by the market, the investment research is critical to deliver superior investment team relies on the extensive resources of Allianz results in the future. As such, all investment Global Investors’ global research platform to members of the team contribute to the Systematic narrow the investable universe. Investment team team strategies via alpha insight, risk model and members also use their industry contacts to portfolio construction research, which uncover new information as it develops and have encompasses the majority of their day. The goal of the experience and expertise to understand how it research is to add new factors, improve existing will affect the companies the investment team factors, or occasionally remove factors which have follows. been arbitraged by the market. The team’s investment professionals communicate informally Approximately 50% of research used by the on a daily basis given their open office architecture strategy is internal and 50% comes from external which promotes a collaborative, collegial work sources. This mix helps investment team members environment. There is more formal interaction to look at each investment idea from multiple among investment professionals on the team perspectives and confirm a stock’s investment through their weekly research meetings, whereby thesis. alpha, risk and portfolio construction research is critically evaluated. The integrated approach to The US Small Cap Growth team regularly discusses portfolio management and research provides company, supplier, customer and competitive important insight into key drivers of investment information with their many management
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performance and ideas for future research development work ensures that we stay at the initiatives. forefront of investment style risk management and generating outperformance. The investment Once an idea is generated, the research process team’s style research draws upon more than 150 continues into the factor design stage, whereby the different stock selection criteria, grouped into five team collects data, validates the information and different groups: Value, Momentum, Earnings builds a mathematical formula to harness the Change, Growth and Quality. An investment style opportunity. The team then conducts factor testing is defined by a combination of bottom-up stock on two levels. The first is to see how the factor selection factors. To calculate an investment style performs on a stand-alone basis, including its such as Value, several bottom-up factors, such as ability to generate returns, how fast the factor price-to-book, price-to-earnings, price-to-cash predictive power decays, and how performance flow and dividend yield, are combined in an equal- correlates from one month to another. The second weighted score. All stocks in the universe are then is through a multi-simulation where we measure ranked according to this investment style score. how well the factor performs in combination with The ranking is done on a region-by-region and other factors in the model, including the difference sector-by-sector basis. The stocks that are ranked in total returns, as well as across industries, in the top 20% are then classified as Value, and sectors, countries and market capitalization. We similarly so for the other investment styles. The also consider how the risk profile changes, and investment style profile of individual stocks can how the factor performs in various market change significantly over time. In addition to environments. A factor is implemented should it defining the investment styles and to determining improve results and offer low correlations to a diversified mix of these investment styles, we existing factors in the model. The alpha model, also conduct ongoing analysis of additional risk risk model and portfolio construction research factors within investment styles. process takes approximately six to nine months for each factor from the idea generation stage to Fixed Income the implementation stage in the model. There is only about a 10% success rate of a factor making it Income and Growth Strategies through the entire process, as the hurdle to add a The Income and Growth Strategies investment new factor gets higher as the model is evolved over team follows a disciplined, fundamental bottom- time. up research process. Ideas are generated from a variety of traditional and quantitative sources that Value Strategies make-up the team’s research platform. All The Value Equity US team applies a combination of members of the investment team are responsible quantitative and fundamental elements to their for bringing new ideas to the group. All members research process. Quantitative screens identifying of the investment team serve as generalists when low P/E, dividend-paying stocks are applied to identifying new opportunities. reduce the investment universe in advance of traditional, fundamental research. The team’s During the idea generation phase, the investment bottom-up research is very similar to credit team screens the entire investment universe for analysis and is designed to determine whether issuers demonstrating an ability to improve their investment candidates are truly good value or fundamental characteristics. The simply undervalued for a good reason. The team’s companies/issues selected for the portfolio exceed research focuses on balance sheets and cash flow minimum credit statistics and exhibit the highest statements, looking for areas of concern or poor visibility of future expected operating quality, as well as company presentations, performance. earnings calls, sell-side and third-party analysis, and financial statement footnotes, which the After identifying a potential investment idea, the market can overlook. The team may also examine fundamental strength of the company is assessed. company business models and determine the level Fundamental research focuses on identifying and sustainability of any competitive advantages a companies' innovation, growth in market share, candidate may hold with regard to their improving operating margins, and new product relationships with competitors, customers, launches that may result in positive earnings suppliers and substitute products. estimate revisions. Companies with revenue growth and margin expansion create positive cash Best Styles Strategies flow and healthy balance sheets. The Best Styles systematic equity research focuses on the analysis of quantitative factors in To determine whether the investment team's investment style research and structural sources findings are sustainable, the investment team of outperformance. Our continuous research and conducts a detailed analysis of the operating
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statistics of candidates. This analysis gives the quantitative models, and assessments of investment team confidence that these companies collateral, bond structures, indentures, and have a financial foundation conducive to growth. liquidity to produce proprietary internal credit They analyze issuers' balance sheets, cash flow assessments and risk vs reward analysis of issuers. statements and income statements, as well as the Portfolio managers utilize these inputs to select security's terms and covenant protections. The securities that produce strong risk-adjusted investment team utilizes their proprietary returns. Upgrade Alert Model to conduct the analysis. Macro factors are assessed at the individual issuer Global Fixed Income Strategies level. Research plays a pivotal role in the investment process and most of the investment team’s US Short Duration Strategies research is conducted internally. The team uses a The US Short Duration High Income investment proprietary financial and economic database team undertakes in-depth analysis on every credit alongside external data sources. International in the strategy’s short duration, high yield organizations such as the OECD, IMF and World universe to identify those companies which offer Bank are good sources of primary data; central the most compelling risk-return trade-off. Roughly banks and national statistics agencies are also 85% of the investment team’s research effort is generally reliable sources. Consensus Economics conducted internally with 15% coming from is a good source of economic growth / inflation external sources. expectations data. In many cases the data is accessed electronically through Thomson Reuters The investment team uses a proprietary tool to Datastream and Bloomberg. The team also uses assist in credit research, the Credit Scoring System specialist Asset Backed Security research through model. This model tallies approximately 48 Global Credit Research Partners Ltd, an external different credit metrics within three qualitative consultancy. and three quantitative categories. This model allows the investment team to easily identify a To support their research effort, credit analysts company’s strengths and weaknesses and reveal have access to rating agencies and also to third potential risk factors. Given its depth, this is a party data providers. At the heart of the process is valuable tool when evaluating overall credit the formulation of independent credit evaluations quality. and investment recommendations by our credit analysts; however, these kinds of external data The sources of external research are company sources fulfill an important supporting role in reports, credit service reports and research reports giving them the fullest possible information base on industries and individual companies from Wall to work from. Street brokers. Subscriptions to prominent credit research providers are also utilized. Advanced Fixed Income Strategies Research for the Advanced Fixed Income strategy The investment team may also communicate with is based on advanced proprietary quantitative company management through conference calls, models. These models allow the investment team direct contact, and industry conferences. The to understand the complex relationships between investment team places a high value on numerous economic variables and to reduce the communication and prefers those companies complexity of these relationships to make them whose management teams are accessible. more palatable and concrete for the portfolio manager. Research covers: US Core Fixed Income Strategies The investment team narrows the investment Global Sovereign Bonds – Using a Debt universe to focus on issuers that offer the highest Sustainability Model and RE-Rating Model, the level of impact and to ensure research resources investment team assesses the improvement or are allocated accordingly. Considerations in this deterioration over time in the debt-to-GDP process include overall level of liquidity, and position for each country as well as their perceived ability to source securities. Impact issuers are willingness to repay their debts. determined by certain factors, including percent of benchmark, pricing opportunities, and a Global Covered and Securitized Bonds – Research subjective assessment of our ability to add value. covers the legal framework, macroeconomic This level of coverage also gives consideration to environment, standalone issuer strength and maintaining capacity when market conditions covered pool quality for covered and securitized warrant resources be allocated to new bond issuers globally. opportunities. The investment team utilizes proprietary financial modeling, stress testing,
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Global Corporate Bonds – The research process probabilities of the magnitude of future index includes dissecting the investment universe into movements. From this analysis, AllianzGI US segments based on duration buckets and rating constructs option spreads using puts and calls on classes and comparing the expected returns and the indices in order to optimize the strike and volatilities of different segments of bonds; time-to expiration of each option position, as well individual fundamental analysis based upon as the probability-adjusted size of the profit zones. issuer financial strength, issuer business model strength, event risk and country risk; and a US Private Credit Strategies Rich/Cheap analysis focused on ranking the most Credit Solutions Strategies bonds within particular risk clusters to determine The investment team generally look to identify the most attractive investment opportunities. compelling fundamental value in companies that are believed to be operationally sound and have a Multi Asset sustainable competitive edge. The team generally focuses on identifying value in companies with Target Date Strategies some of the following attributes: The Asset Allocation portfolio structuring process is based on underlying account investment • Competitive Advantage objectives, and translating those objectives into • Compelling Valuation specific measurable expected risk-return profiles. • Growth Expectations The general portfolio strategy utilizes (1) a • Market Leaders portfolio of defensive assets intended to help to • Strong Management preserve principal, provide current income and • Sound Governance hedge inflation (“Defensive Assets”); (2) a • Equity Upside portfolio of return-generating assets that emphasize after-inflation capital growth (“Return- Loan Funds Strategies Generating Assets”); (3) strategy-specific In managing the CLO’s collateral and accounts objectives that define the percent to invest in investing in similar types of assets, the team Defensive and Return-Generating Assets, generally use a fundamentals-based credit respectively; and (4) risk-budgeted and risk- analysis framework for underwriting and managed portfolios that are measured by total managing a portfolio of secured loans. The team portfolio volatility, portfolio income, and portfolio actively monitors the loan portfolio and focuses on tracking error. Defensive Assets typically belong to early identification of investment risk. The team the fixed-income asset class. Return-Generating generally evaluates each investment based on the Assets typically belong to the fixed-income, equity, issuing company’s overall credit risk and asset real estate, commodity and alternative asset coverage measures such as cash flow coverage classes. The resulting strategy is a combination of ratios, corporate asset values, the investment’s Defensive and Return-Generating Assets that seniority in the investment’s capital structure, the matches the expected risk-return profile. expected volatility of corporate cash flows and asset values, and the issue’s particular credit Dynamic Multi-Asset Plus Strategies covenants. Dynamic Multi Asset Plus strategies seek to provide a lower risk alternative to static balanced Infrastructure Debt and Infrastructure Equity and multi asset portfolios in combination with Strategies enhanced expected returns over a market cycle. The investment teams perform a thorough due Our solution benefits from several unique diligence review of each transaction that includes components such as an active approach to asset financial, technical, insurance, and legal analysis. allocation which combines trends and The team seeks to have an understanding of the fundamental assessments and offers risk underlying asset and potential risks in order to mitigation in times of market stress. Optional structure the transaction accordingly with modules like the addition of further asset classes appropriate risk management. The team may use to capture thematic trends or selection strategies specialized advisors in this due diligence process. for equities and bonds complete our fully For example technical advisors that assess integrated solution. technical complexity may be utilized and may have oversight during construction periods. Alternatives US Private Placement Strategy Structured Products Strategies The AllianzGI Private Placement investment For its Structured Products strategies, AllianzGI US strategy seeks to invest in the private debt issued analyzes the statistical behavior of one or more by high quality companies and other entities. indices to develop proprietary expected AllianzGI offers institutional investors managed
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accounts customized to each client’s needs. managers. Through rigorous fundamental Private placement bonds provide an investor with analysis of company and industry dynamics, the enhanced portfolio diversification, covenant team seeks to identify high quality companies with protection, and potential spread premium to superior growth rates. A four-step process is bonds available in the public markets. In addition, undertaken in the management of mid-cap a broader range of longer maturities is available in portfolios: (1) idea generation based on bottom-up the private debt markets, which may fit a client’s internal and external resources, quantitative needs for longer-lived, income-producing screens and a top-down overview, (2) stock investments. The Allianz Global Investors private selection based on analysis of growth, quality and placement team draws upon a shared wealth and valuation factors, (3) portfolio construction breadth of investment experience across several building diversified portfolios with high active fixed income asset classes and market cycles: the share and built-in risk controls, and (4) average investment experience of the team is 20 monitoring and review that aims to improve the years. overall investment process. The Mid Cap Portfolio Management Team meets daily and, as a group, INVESTMENT PROCESSES interacts frequently with research analysts, Grassroots® analysts and the equity traders. The The following describes the investment process for mid cap investment process utilizes a bottom-up each of AllianzGI US’s investment strategies: approach to investing. Individual stock holdings, and to a certain extent industry weightings, will Equities differ among mid-capitalization accounts. Variances are reviewed regularly for Investment Process – US Large Cap Growth appropriateness. Strategies (US Large Cap Select, US Large Cap Core and US Focused Growth) Investment Process – US Small Cap Growth The investment process for domestic large-cap Strategies (US Micro Cap, US Ultra Micro Cap, US equity accounts is coordinated through the Large Small Cap Growth, Small Cap Blend, and US Small- Cap Portfolio Management Team (the “Large Cap Mid Cap Growth) PMT"). Through rigorous fundamental analysis of The US Small Cap Growth team follows a bottom- company and industry dynamics, the Large Cap up process for its strategies which focuses on PMT seeks to identify high quality companies with identifying small cap growth companies that superior growth rates. A four-step process is exhibit strong signals of positive fundamental undertaken in the management of mid-cap change, sustainable growth characteristics and portfolios: (1) idea generation based on bottom-up timely market recognition. Members of the US internal and external resources and a top-down Small Cap Growth team use their industry overview, (2) stock selection based on analysis of contacts to uncover new information as it growth, quality and valuation factors, (3) portfolio develops, and have the experience and expertise to construction building diversified portfolios with understand how it will affect the companies the built-in risk controls, and (4) monitoring and team follows. review that aims to improve the overall investment process.. The Large Cap PMT meets Investment Process – Disciplined Equity Strategies daily and has frequent interactions with AllianzGI (Disciplined US Core) US’s research analysts, Grassroots® analysts, and The Disciplined Equities Group manages the the equity traders. Disciplined US Core Equity product using an investment management process that combines The Large Cap PMT makes investment decisions quantitative screening with fundamental through a disciplined voting procedure. Votes are company research (including recorded and securities are re-voted at frequent Grassroots® Research). It is a four-step bottom-up intervals. While the portfolio manager for each stock selection investment process which account retains the ultimate authority over includes: (1) initial idea generation using a individual buy and sell decisions for that account, screening strategy, (2) valuation and stock buy and sell decisions by individual portfolio selection using in-depth company research, (3) managers that differ from the Large Cap PMT’s portfolio construction and risk control that builds conclusions are discussed at the Large Cap PMT a diversified portfolio that generates performance portfolio construction meeting. Dispersion is also mainly from bottom-up stock selection, and (4) controlled using quantitative methods. monitoring and review that aims to improve the overall investment process. Investment Process – US Mid Cap Growth Strategy The investment process for mid-cap products is The Disciplined Equity team believes in investing managed on a team basis by the portfolio in under-valued companies undergoing positive
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change. The team believes investor sentiment globally, focusing on companies that stand to fluctuates more widely than underlying benefit from: fundamentals and that low expectation/valuation provides more downside risk protection and more (1) Increasing and changing agricultural raw upside potential. The team believes this results in materials production (upstream) mispriced opportunities. The team seeks to (2) Rising food demand and changing identify these opportunities through their preferences, including food processing & disciplined investment process, which is built distribution (downstream). upon stock screening and fundamental research. The team targets companies that possess superior Investment Process – Private Client Group management, strong balance sheets, (Targeted Growth (Tax Managed), Targeted Core differentiated products or services, substantial Growth (Tax Managed), Balanced) unit growth, strong commitments to research and The Private Client Group employs a team approach development, and a steady stream of new products to investment management. The Private Client or services, and that meet rigorous growth, quality, Group interacts daily with the Large Cap PMT, and valuation criteria. research analysts, and Grassroots® Research, and regularly with the Mid Cap PMT. The equity Global Water investment approach is to seek to identify The Global Water team seeks to invest in companies with above average earnings growth companies that fall within the broadly defined and prospects that can be held for a considerable rapidly growing eco-sector of clean water. Water period of time in order to defer payment of capital related activities are those that influence the gains taxes. Tax consequences can be critical to an quality, availability or demand of water including: investor’s overall return and, as appropriate, water production; water conditioning; sewage investment performance is evaluated on both a treatment; engineering services. Stocks are before-tax and after-tax basis. selected on a fundamental bottom-up basis with no ethical or sustainability screening applied. The Investment Process – Sector/Thematic Strategies Global Water strategy philosophy recognizes that the environment has a significant and increasing Technology impact on businesses and financial markets. The Technology team seeks long-term capital Working in a team-oriented meritocracy, our appreciation by investing in both domestic and investment professionals focus on constructing international companies that use technology in an portfolios offering attractive risk-adjusted returns. innovative way to gain a competitive edge. The Technology team selects stocks by identifying Global Sustainability major growth trends within technology; especially The Global Sustainability strategy combines discontinuities offering order-of-magnitude fundamental and environmental, social and improvements. The team seeks companies governance (ESG) inputs to create a diversified possessing superior management, strong balance portfolio of global stocks considered to be best-in- sheets, differentiated products or services, class, from both a fundamental and ESG substantial unit growth, strong commitments to perspective. The portfolio is formed by combining research and development, and a steady stream of the inputs of our fundamental research platform new products or services. The team considers and the research of our Global ESG team. Our country and sector/industry selection, as well as Global ESG team identifies environmental, social capitalization range decisions, to be primarily the and governance risks for over 4,000 stocks, result of identifying superior securities, although focusing on sector-specific criteria. By combining benchmark allocations are monitored to ensure these inputs, we create a refined universe of stocks maintenance of an appropriately diversified from which the investment team selects a portfolio portfolio. of global best-in-class stocks, diversified in terms of both sector and regional exposure. Global Agricultural Trends The Global Agricultural Trends investment team Global Natural Resources believes global population growth and rising The Global Natural Resources strategy combines incomes, particularly in Emerging Markets, has led top-down views of commodities and regional to changes in how much, what, and how the world economies with bottom-up analysis of natural eats. The team seeks investment opportunities resource-related companies within four sectors: along the entire food supply chain, from energy, agriculture, materials and industrials. All companies that offer solutions to increase output positions are supported by what the portfolio per acre, to companies that process and distribute manager believes are the most promising food to end consumers. The strategy invests
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investment themes within the global natural increasingly wealthy local populations. resources-related universe. Companies that access these long-lasting trends effectively have the potential to deliver strong Health Sciences earnings growth. Asia’s frontier capital markets The Health Sciences strategy seeks to profit from will also develop over time, and the Strategy will global trends in health-care related sectors. The seek to tap into those increasing opportunities. strategy pursues a more concentrated approach to The Strategy aims to add additional value by investing in traditional health care companies, leveraging our small and mid-cap expertise to and focuses on companies that are delivering build a portfolio of growth stocks in growth innovative and profitable drug treatments and markets. low-cost health care solutions. Total Return Pacific Biotechnology Total Return Pacific is an all-cap equity-driven and The Global Biotechnology strategy seeks to invest multi-asset total return strategy characterized by a in high-quality healthcare companies that are bottom-up and fundamentally driven security delivering innovative and profitable drug selection approach that follows a robust, multi- treatments and value to the health care system. factored initial idea-generation process, and We believe these factors drive solid long term concentrates on high-conviction ideas. The earnings growth and reasonable over-valuations Strategy seeks to provide investors with long-term for global biotechnology-related stocks in general. capital appreciation and income primarily through investment in high-yielding stocks, debt, Investment Process – Asia Strategies and convertible bonds of companies in the Asia Pacific region. The Strategy adopts a dynamic asset Japan Equity and Mid-Small Cap Equity allocation approach with an aim of total return. The Strategies invest primarily in the stocks of companies domiciled in Japan and aim to attain China Equity capital growth over the long term by identifying The China Equity team aims to provide investors undervalued companies relative to their with long term capital appreciation through fundamentals. The process aims to add value in investment in the shares of companies listed in three key areas: namely stock selection, portfolio China and companies located elsewhere which construction, and implementation. have significant interest in China. The team’s philosophy and process aims to add value in three Asia Pacific ex Japan Equity key areas, namely stock selection, portfolio Asia Pacific ex Japan Equity is an all-cap Asia construction, and implementation. Research Pacific ex-Japan strategy of approximately 50 coverage is shared between the country specialists conviction ideas, identified through a bottom-up, and the regional sector analysts. Country fundamentally-driven stock selection process. The specialists tend to cover those companies that Strategy invests in companies in the Asia Pacific relate to local factors more than any regional (or ex-Japan region with growth prospects that may global) factor. Sector specialists cover the larger not have otherwise been recognized by the market. capitalized names that could be recommended for regional or global portfolios. The team’s goal is to High Dividend Asia Equity build integrated portfolios on a bottom-up basis, The High Dividend Asia Equity strategy invests in comprising the best companies in the region. companies across the Asia Pacific region which Working in a team-oriented meritocracy, our already pay high dividends, or where we expect investment professionals focus on constructing the dividend to grow over time. The High Dividend portfolios offering attractive risk-adjusted returns. Asia Equity team has extensive experience managing a wide range of regional and single- China A-Share Equity country equity mandates in the Asia Pacific region. The China A-Share Equity strategy invests in stocks The Strategy aims to deliver strong long-term of companies incorporated in China and listed as returns from a combination of capital growth and A-shares on the stock exchanges of Shanghai or income by investing in companies that Shenzhen. The Strategy may also invest in demonstrate the capability and commitment to companies that are incorporated in China or maintain and grow dividends. generate a predominant portion of their profits (maximum 20%) there. Emerging Asia The Emerging Asia team believes Asia’s Emerging Asia ex-Japan Mid Cap Equity (Little Dragons) and Frontier markets can deliver strong and The investment team aims to achieve long term sustained economic growth over the next decade. capital growth principally through investment in This growth will primarily be driven by young and small to medium sized companies listed in Asian
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stock markets ex-Japan with an emphasis on the investment recommendations are thoroughly smaller and emerging markets of the region. To vetted on a stock-by-stock basis to confirm the achieve this objective the strategy invests in investment thesis before a purchase or sale. companies with growth prospects in the Asia ex- Japan region that may not have been recognized Investment Process – Value Strategies by the market. The strategy seeks to capture mispriced opportunities through stocks with lower All-Cap Value downside risk and more upside potential. This strategy seeks long-term growth of capital and income. The portfolio managers use a value Korean Equity investing style focusing on companies with low The investment objective of the strategy is to seek valuations across a broad range of industry long-term capital appreciation through groups. This strategy normally invests a significant investment in securities, primarily equity portion of its assets in common stocks that the securities, of Korean companies. The investment portfolio managers expect will generate income team may invest in a broad spectrum of Korean (for example, by paying dividends). This strategy industries, including, as conditions warrant from will normally have some exposure to small, time to time, automobiles, cement, chemicals, medium and large capitalization companies, construction, electrical equipment, electronics, although the portfolio manager reserves the finance, food and beverage, international trading, flexibility to vary this strategy’s relative weightings machinery, shipbuilding, steel and textiles. In to each capitalization range based on a number of selecting industries and companies for factors. investment, the team considers overall growth prospects, competitive position in export markets, Dividend Value technology, research and development, productivity, labor costs, raw material costs and This strategy seeks long-term growth of capital sources, profit margins, return on investment, and income. The portfolio managers use a value capital resources, government regulation, investing style focusing on companies with low management and other factors. valuations across a broad range of industry groups. This strategy normally invests a significant Investment Process – Europe Strategies portion of its assets in common stocks that the portfolio managers expect will generate income Europe Equity Growth Select (for example, by paying dividends). This strategy The Equity Europe Growth approach is to invest in will also invest a significant portion of its assets in an integrated portfolio, comprising the attractive common stocks of companies with market growth stocks in Europe selected on a bottom-up capitalizations greater than $2 billion (USD). basis. The focus of this product is on structural Investable universe includes ADRs. growth not yet reflected in the company’s stock price. The team seeks to identify stocks with International Value structurally above average earnings and cash flow This strategy seeks long-term growth of capital growth which the market has not yet fully and income. The portfolio managers use a value anticipated. These companies are characterized by investing style focusing on companies with low secular growth drivers, technological leadership valuations across a broad range of industry and a superior business model. groups. This strategy seeks to achieve its investment objective by investing in non-US Investment Process – Systematic Strategies companies (up to 50% of which may constitute (US Systematic Small Cap Growth, US Systematic emerging markets securities), a significant portion Small Cap, Global Small Cap Opportunities, of which the portfolio managers expect will Emerging Markets Systematic, Emerging Markets generate income (for example, by paying Consumer, Emerging Markets Small Cap and US dividends). Investable universe includes ADRs and Micro Cap Opportunities) foreign ordinaries with an associated ADR. The Systematic team seeks to invest in equities benefitting from change not yet fully reflected in Large-Cap Value the market. At its core, the team believes investor This strategy seeks long-term growth of capital behavioral biases contribute to market and income. This strategy seeks to achieve its inefficiencies. The quantitative process begins investment objective by normally investing in a with a proprietary alpha model which blends universe of the 400 largest publicly traded behavioral and intrinsic/valuation factors. This companies (in terms of market capitalization) in multi-factor approach is integrated with a highly the United States. The portfolio managers use a responsive and adaptive risk model to form the value investing style focusing on companies with basis of portfolio construction. Additionally, all low valuations across a broad range of industry
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groups. This strategy normally invests a significant Small Cap Concentrated strategy, which follows a portion of its assets in common stocks that the process similar to the Small Cap Broad strategy. portfolio managers expect will generate income The holding sizes are targeted at 3% equally- (for example, by paying dividends). weighted. The Small-Cap Concentrated strategy is currently offered only to managed account/wrap- Mid-Cap Value fee program accounts managed by AllianzGI US. This strategy seeks long-term growth of capital and income. This strategy primarily invests in Global Dividend Value common stocks of companies with medium This strategy seeks long-term growth of capital market capitalizations. This strategy currently and income. This strategy seeks to achieve this defines the medium market capitalization objective by normally investing in common stocks companies as those companies in the bottom 800 of US and non-US companies with market of the 1,000 largest North American companies (in capitalizations in excess of $1 billion (USD). The terms of market capitalization) that are publicly portfolio managers use a value investing style traded on US securities markets. Investable focusing on companies with low valuations across universe includes ADRs. The portfolio managers a broad range of industries. This strategy normally use a value investing style focusing on companies invests a significant portion of its assets in with low valuations across a broad range of common stocks that the portfolio managers expect industry groups. This strategy normally invests a will generate income (for example, by paying significant portion of its assets in common stocks dividends). Investable universe includes ADRs and that the portfolio managers expect will generate foreign ordinaries with an associated ADR. income (for example, by paying dividends). International Small Cap Value Mid Cap Value 100 This strategy seeks long-term growth of capital This strategy seeks long-term growth of capital and income. This strategy invests primarily in and income. This strategy primarily invests in common stocks of companies with market common stocks and other equity securities of capitalizations between approximately $500 companies with small to medium market million and $5.0 billion (USD). The portfolio capitalizations (between at least $3 billion and up managers use a value investing style focusing on to the largest company held in the Russell Midcap companies with low valuations across a broad Index). The portfolio managers use a value range of industry groups. This strategy seeks to investing style focusing on companies with low achieve its investment objective by investing in valuations across a broad range of industry stocks of non-US companies (up to 20% of which groups. This strategy normally invests a significant may constitute emerging markets securities), a portion of its assets in common stocks that the significant portion of which the portfolio portfolio managers expect will generate income managers expect will generate income (for (for example, by paying dividends). This strategy example, by paying dividends). Investable may invest up to 25% of its assets in non-US universe includes ADRs and foreign ordinaries. securities, without limit in ADRs. Emerging Markets Value Small-Cap Value This strategy seeks long-term capital appreciation. This strategy seeks long-term growth of capital This strategy primarily invests in equity securities and income. This strategy invests primarily in of companies that are domiciled in or tied common stocks of companies with market economically to countries with emerging capitalizations between approximately $100 securities markets – that is, countries with million and $4.0 billion (USD). The portfolio securities markets which are, in the opinion of the managers use a value investing style focusing on portfolio managers, less sophisticated than more companies with low valuations across a broad developed markets in terms of participation by range of industries. This strategy normally invests investors, analyst coverage, liquidity and a significant portion of its assets in common regulation. This may be achieved by investing in stocks that the portfolio managers expect will ADRs and other depositary receipts, in addition to generate income (for example, by paying direct investments in the securities of non-US dividends). Accounts invested in the Small Cap issuers. This strategy may also invest in derivative Value strategy normally hold approximately 100 instruments such as participatory notes. stocks. The team also manages a similar Small Cap Broad strategy. The Small Cap Value investable Investment Process – Wrap Fee Programs universe includes ADRs, whereas the Small Cap AllianzGI US offers the All Cap Value, Dividend Broad investable universe includes ADRs and Value, Large Cap Value, Mid Cap Value, Small Cap foreign ordinaries. AllianzGI US also manages a Value, Global Sustainability, Focused Growth and
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Dynamic Multi Asset Plus strategies to its Wrap and derivative instruments. FISH: Series M invests Program clients. See descriptions of each of these in a portfolio of fixed income securities comprised strategies earlier in this section. of mortgage and other asset backed securities and derivative instruments. Assets invested in one of AllianzGI US also contracts with its investment the FISH Portfolios will be managed in accordance advisory affiliates and PIMCO to provide sub- with the FISH Portfolio’s prospectus, and client advisory services in connection with the restrictions will not apply to such assets. Clients management of AllianzGI US Wrap Fee Programs should read the prospectus for the FISH portfolios (collectively “Sub-Advisers”). The Sub-Advisers for more complete information regarding the investment model recommendations are based on principal investments and risks of investing in the their individual investment processes, which are portfolios. described briefly below. The models are used in stand-alone equity, balanced and multi- The Total Return strategy is managed pursuant to disciplinary strategy styles. The multi-disciplinary an investment model. A portion of the model may strategies may combine separate affiliated and be composed of buckets of securities with non-affiliated sub-advisers equity strategies common characteristics. Therefore, individual and/or a fixed income strategy into one portfolio client accounts invested in the same product may with an allocation among the strategies based on hold different securities with substantially similar established target asset allocation parameters. For characteristics. additional information relating to each affiliated or non-affiliated Sub-Adviser, please refer to their Investment Process – Best Styles (Global Developed, respective Form ADVs posted Global All Country, US, Pacific, Europe, EMU, at www.adviserinfo.sec.gov. Euroland and Emerging Markets) The investment team seeks long-term capital The following are strategies provided by PIMCO for appreciation by creating a diversified portfolio of Wrap Program clients: global equities. The portfolio managers begin with an investment universe of approximately 9,000 PIMCO – Total Return equity securities and then assess individual The Total Return Strategy seeks to maximize total securities using a disciplined investment process return with index-like volatility. that integrates top-down investment style research and proprietary fundamental bottom-up PIMCO Investment Process company specific research with a quantitative PIMCO utilizes a top-down bottom-up investment risk-management process. The portfolio managers approach. The top-down investment process combine a range of investment style orientations, begins with PIMCO’s annual secular forum where such as Value, Earnings Change, Price Momentum, it develops a 3- to 5-year outlook for the global Growth, and Quality (each described below), in economy and interest rates. Quarterly meetings seeking positive relative returns versus the are then held to discuss how the outlook applies to benchmark index and in managing the overall upcoming 3- to 12-month periods and to forecast portfolio’s sensitivity to broader market specific influencing factors, including interest rate movements (or “beta”). The final portfolio is volatility, yield curve movements and credit constructed through a portfolio optimization trends. Taken together, these sessions set basic process that seeks to maximize exposure to equity portfolio parameters, including duration, yield- securities with attractive investment style curve positioning, sector weightings and credit characteristics, subject to region, sector, quality. PIMCO’s bottom-up process, which capitalization, security and other constraints. The includes credit analysis, quantitative research and Value investment style orientation selects equity individual issue selection, is then combined with securities that the portfolio managers believe have the top-down approach to add value. attractive valuations based on metrics including dividend yield and price-to-earnings, price-to-cash Approximately 60% of the client’s assets are flow and price-to-book ratios, as compared to generally invested in a combination of individual other equity securities in the investable universe. U.S. Treasury, U.S. agency, municipal, corporate The Earnings Change investment style orientation and mortgage securities. The remaining assets is designed to capture shorter-term, trend- will be invested in a combination of the Allianz following investment opportunities and generally Global Investors Managed Accounts Trust (a selects equity securities with positive earnings registered investment company, the “Trust”), FISH: revisions, announcements or surprises. The Price Series C and FISH: Series M shares. FISH: Series C Momentum investment orientation is also trend- invests in a wide variety of U.S. and foreign fixed following and generally selects equity securities income securities, including corporate and with positive price momentum and relative mortgage-backed securities, high yield securities, strength within the investable universe. The
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Growth investment style orientation generally The strategies are designed to provide consistent selects equity securities with expected and income, diversification benefits and total return historical earnings and dividend growth. The potential. The strategy seeks to deliver Quality investment style orientation generally outperformance over time by 1) providing upside emphasizes equity securities with strong participation in rising markets and downside profitability and historical earnings stability, and protection in falling markets and 2) by identifying considers additional factors, such as whether a and minimizing credit risk, avoiding defaults and company has improving margins, positive net targeting upgrade candidates. income, positive operating capital, decreasing long-term debt and high-quality earnings, among Income & Growth others. The Income and Growth strategy is a core holding that invests primarily in a portfolio of one-third Investment Process – Global Fundamental high-quality large-cap stocks, one-third high-yield The investment decisions of the portfolio bonds and one-third convertible bonds. This managers are based on a fundamental “three-sleeve” approach allows the strategy to management approach. The portfolio generally offer an attractive risk/return profile. The strategy consists of a core portion and an opportunistic aims to provide a steady income stream with portion which are managed as part of a single increased potential upside and less downside risk. portfolio or strategy. The portion of assets that The strategy also supplements its income stream comprise the core portion serves as a foundation with a covered call strategy. As a result, the for the overall portfolio, as it seeks to generate strategy aims to capture multiple sources of stable returns over the market cycle. The income while participating in the upside potential opportunistic portion is designed to capture of equities, with potentially less volatility than a shorter term investment opportunities and could pure stock investment. be considered riskier relative to the core portion of the portfolio. Typically, the opportunistic portion US Short Duration High Income will target investments that can provide capital The US Short Duration High Income strategy employs gains over a relatively short time horizon, and is a conservative approach to managing high yield bonds expected to exhibit higher turnover than the core and bank loans. By investing in high quality, high portion. The allocation between the core and yield securities with shorter durations, the investment opportunistic components will vary, reflecting team is able to control credit risk and minimize market circumstances and the manager’s ability downside volatility. to locate suitable investments for the two components. Investment Process – Global Fixed Income
Fixed Income Global fixed income portfolio managers consistently utilize a well-defined investment Investment Process – Income & Growth Strategies process to construct client portfolios. The monthly (every 4-6 weeks) Asset Allocation Group is The Income and Growth Strategies investment responsible for all major asset allocation team follows a disciplined, bottom-up research decisions. It is a forum where the investment team process, which facilitates the early identification of discusses four key areas in order to determine the issuers that demonstrate the ability to improve allocation of portfolio assets among four alpha their fundamental characteristics. The streams: Developed Markets, Investment Grade companies/issues selected for the portfolio exceed Credit, High Yield Debt and Emerging Markets. The minimum underlying metrics and exhibit the four key inputs to the Asset Allocation decision are: highest visibility of future expected operating Global Growth, Inflation, Interest Rates and Event performance. Risk. A twice-weekly Investment Committee is responsible for decisions on a more frequent basis Convertibles and discusses positioning reviews, thesis testing The US Convertibles strategy aims to capture the and dynamic risk management. Continuous upside potential of equities with potentially less interaction between the investment teams ensures volatility than a pure stock investment. The consistent and successful implementation of strategy builds the portfolio one security at a time philosophy and process across portfolios. The by finding companies of any size capitalizing on Global Sovereign and Global Credit team bring change, actively managing the strategy to provide insights and specialist fixed income knowledge an alternative risk-reward profile to traditional and meets, at least, twice-weekly. stock and bond portfolios. Global Aggregate US High Yield and CLO
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The Global Aggregate strategy combines all four credit, global high yield and emerging markets. It core strategies: global government, investment invests in a global bond universe while grade credit, global high yield and emerging maintaining a domestic benchmark, seeking to markets. It provides a broad exposure to the global exploit the global opportunity set and provides bond market and is indexed versus a variety of incremental returns above a domestic benchmark. readily available or customized aggregate indices. LDI Global Government The strategy offers tailored LDI or LDI plus The Global government strategy aims to deliver investments designed to match the client’s positive risk adjusted returns by investing in liability stream and/or offer incremental returns. sovereign debt fixed income and currencies (globally). Cash Plus The strategy combines all four core Global Investment Grade Credit strategies: global government, investment grade The strategy seeks relative value opportunities credit, global high yield and emerging markets. It across global sectors and issuers whilst avoiding aims to deliver returns in excess of a cash its associated downside risks. benchmark on an unlevered basis.
Global Investment Grade Corporate Total Return The strategy is offered on a segregated and The strategy is designed to invest in concentrated commingled basis. Our macro framework provides positions in our four core alpha streams (global the backdrop in which we seek active government, investment grade credit, global high outperformance through sector and security yield and emerging markets). The strategy seeks selection. In addition, we have various tailored our “best ideas” to generate significant total portfolios which seek outperformance through returns on an unlevered and unhedged basis. active security selection in specific sectors on a global basis. Short Duration Real Estate Debt Real estate fixed income securities provide the Enhanced Passive Credit yield enhancement and inflation protection The strategy is designed to track the index in a bull characteristics of real estate coupled with the market and outperform in a bear market by downside protection of fixed income. actively managing issuers. It aims to maintain a low tracking error throughout. Investment Process – US Core Fixed Income
Global Emerging Markets US Core The strategy aims to invest in a universe of The strategy seeks to outperform the Bloomberg sovereign and corporate issuers across the whole Barclays US Aggregate Bond Index producing investable emerging market universe. Investments better risk adjusted returns. Additionally, it seeks are made in both local and hard currency debt as current income, consistent with minimal well as emerging market currencies to ensure fluctuation of principal. The strategy invests in a optimal returns on portfolios. diversified portfolio of high-quality bonds that generates alpha primarily through security Emerging Market Currency selection and sector rotation with an investment The strategy seeks to gain returns by identifying grade focus. It is based on bottom–up fundamental significant misalignments in emerging market credit research rather than an overarching currencies with an initial focus primarily in Asia macroeconomic view. ex-Japan. We invest on a long-only basis in forward currency contracts in emerging market US Core Plus currencies in exchange for a basket of developed The strategy seeks to maximize total return market currencies. through a combination of current income and capital appreciation. It seeks to outperform the Global High Yield Bloomberg Barclays US Aggregate Bond Index The strategy is designed to provide additional producing better risk adjusted returns. The global opportunities, taking advantage of market strategy invests in a diversified portfolio of high inconsistencies across US, European and Asian quality bonds that generates alpha primarily high yield through security selection and sector rotation and with an allocation to high yield securities. The High Alpha portfolio will maintain an investment grade The strategy combines all four core focus. The strategy is based on bottom–up strategies: global government, investment grade
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fundamental credit research rather than an Investment Process – Asset Allocation & Target overarching macroeconomic view. Date Strategies The investment team determines the risk profile Liability Driven Investment (LDI) and target allocation over time between Defensive The strategy is a fixed income management and Return-Generating Assets, through a approach tailored to the profile of an investor’s combination of quantitative analysis and liabilities. Initially, the client’s liability profile will judgment based on experience. For target-date be analyzed and a custom liability benchmark strategies and age-based portfolios, this target (CLB) will be developed to reflect the client’s allocation is time-varying, typically with a high profile. The team’s investment process then leads percentage of Return-Generating Assets in the to the development of an actively managed early years of investing and a low percentage of portfolio with low tracking error to the CLB to help Return-Generating Assets near the target-date. For allow the portfolio attain its objective. Individual target-risk and static-risk strategies, the target securities held in the portfolio are identified by the allocation between Return-Generating and investment team on a bottom-up basis, reflecting Defensive Assets is fixed across time. opportunities located through proprietary research and after taking in to consideration the The investment team identifies and assigns securities valuation and risk profile. The final specific asset classes to the Defensive Asset portfolio of individual securities will typically portfolio and Return-Generating Asset portfolio, exhibit an investment grade quality profile with respectively, depending on the risk profile and liquidity and other guidelines reflective of client target allocation. The asset class composition of guidance. these two portfolios will vary across strategies, depending on the investment objective for the Investment Process – Advanced Fixed Income specific strategy. A benchmark for the strategy will The Advanced Fixed Income process seeks to be selected based on the assigned risk profile, provide the optimal level of risk-adjusted which determines the initial starting weights for performance by extracting the maximum level of the selected asset classes in the two portfolios. value from each unit of risk. The strategy seeks to deliver outperformance by capitalizing on market The investment team formulates views on specific inefficiencies under risk constraints. asset classes, based on analysis of market data, experience and judgment that may result in asset Multi-Asset classes receiving more or less weight in the portfolio compared to the portfolio’s benchmark. Investment Process – Dynamic Multi-Asset Plus The investment team tracks and evaluates the The investment team uses an active approach to alpha capability exhibited by underlying mutual asset allocation which sits at the Dynamic Multi fund and ETF portfolio managers and portfolio Asset Plus strategy’s core. It has three components: management teams. Market Cycle analysis, Economic Cycle and Valuation analysis and active Risk In addition to the stock selection processes Management. In our systematic Market Cycle described above, AllianzGI US’s portfolio analysis, we use a proprietary rule-based, management teams receive macroeconomic input disciplined asset allocation approach to capture from the firm’s Global Policy Council (“GPC”). The medium-term trends across asset classes. By GPC is comprised of senior investment combining both pro-cyclical and anti-cyclical professionals and analysts located around the elements, we aim to invest in the best performing globe at the offices of certain Allianz Advisory asset classes over time, and provide both excess Affiliates (See Item 10 for a description of Allianz returns and downside risk mitigation. In our Advisory Affiliates). The GPC reviews macro- fundamental Economic Cycle and Valuation economic scenarios for all the major regions of the analysis, we consider forward-looking world and presents analyses of the dynamic fundamental assessments, based on both processes that drive stocks, bonds and other quantitative and qualitative input factors, to better markets. Based on these analyses, the GPC identify turning points in markets. This allows us forecasts the short, intermediate and long-term to tactically adjust the portfolio’s asset allocation outlooks for all the major markets and their with the aim of enhancing returns. Our respective submarkets. The GPC develops proprietary Total Return and Tail Risk investment strategies to determine allocations Management provides the final component of our across broad asset classes and global markets and approach, through which we actively manage reflect sector, theme and style priorities. portfolio risk, targeting a significant reduction in downside risk in times of market stress. Alternatives
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Investment Process – Structured Products outperformance. Their investment process seeks Strategies to minimize losses from defaults and generally (Structured Alpha 500, Structured Alpha 1000, targets current income and consistent investment Structured Alpha 1000 Plus, Structured Alpha Global returns. The team generally targets North Equity 350, Structured Alpha Global Equity 500, American companies with proven cash flows and Structured Alpha Emerging Markets 350, Structured substantial asset values, operating in businesses Alpha US Equity 250, Structured Alpha US Equity with high barriers to entry and sustainable 500, Structured Alpha US Fixed Income 250, competitive advantages, syndicated and secondary Structured Alpha Multi Beta Series, Structured loan purchases, secured bank loans and senior Return, Tactical Volatility, US Equity Hedged)Various debt, and funding for leveraged buyouts, equity index option strategies are designed to refinancings, mergers and acquisitions and provide return enhancement, tail-risk protection, growth initiatives. risk reduction and/or volatility smoothing. Based on analysis of historical movements of broad- Infrastructure Debt based US equity indices, as well as rigorous The investment team seeks to source high credit scenario testing, the investment team utilizes quality infrastructure debt transactions for combinations of index put and/or call options in institutional investors by identifying, pursuit of targeted investment objectives. differentiating and managing risk. By originating such placements privately we are able to source Investment Process – US Private Credit Strategies opportunities with attractive illiquidity /complexity spreads and offer improved access to Credit Solutions a diversity of sectors that would otherwise be The investment team seeks to provide financing to closed to public investors. Infrastructure debt is an businesses in return for current income, seniority asset class that we believe should provide stable in the capital structure and the potential for equity returns and cash flows over long-term horizons upside. The investment team principally targets due to the fundamental essentiality of these real non-investment grade debt obligations of U.S. assets, with low relative levels of default. However, middle market companies across various care needs to be taken in selecting the right industries with annual EBITDA between $15 investment as not all transactions labeled as million and $100 million. The investment team “infrastructure” exhibit the same stability of generally seeks to source secured loans, senior or future cash flows. The investment team focus is on subordinated debt and equity and equity-linked assets meeting the following criteria: (1) Essential securities, which may be acquired below their Physical Asset (2) Long-Term Stable Revenue fundamental value. These include long-term Stream (3) Long-Term Debt, and (4) Clear mezzanine, distressed and equity investments Business Purpose. made with the intention of achieving multiples of cost by exerting influence to unlock shareholder Infrastructure Equity value. This approach uses traditional private The strategy seeks to capitalize on the increasing equity disciplines and creditors’ rights, such as demand for development equity capital in the US board seats, observer seats, blocking positions, Energy Infrastructure market. The strategy will contractual rights, covenants and creditors’ seek to do so by targeting investments in special committees. The investment team generally seeks purpose vehicles (SPVs), which are already setup to manage principal risk and achieve equity up by specialized developers holding primarily upside by funding restructurings, reorganizations, development stage renewable energy refinancings and growth initiatives (including infrastructure assets, known as projects in the new leveraged buyout transactions). These greenfield stage (the “Target”). The strategy will investment opportunities are frequently found in seek targets that have one or more of the following industries experiencing fundamental change characteristics: (i) are in the (late) development and/or scarcity of capital. The investment team stage and have a project plan that identifies the generally seeks investments that may offer the critical items to be obtained in order to commence opportunity to exert meaningful influence during construction (e.g., easements, permits and and after a financing event. governmental approvals) with corresponding milestone dates, (ii) have a clear path to site Loan Funds ownership/ rent, (iii) have entered the In managing the CLOs’ collateral and separate transmission queue if relevant, (iv) initiated an account clients investing in similar types of assets, analysis of the potential environmental and social the strategy invest principally in senior secured impact, (v) have ongoing dialogue with local corporate loans. The investment team focuses on municipalities and other neighbors (vi) have good careful investment selection and monitoring, onsite resource data. which the team believe are critical to credit
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US Private Placement will be able to achieve your investment objective. The US Private Placement investment team It is possible to lose money by investing. Past consistently utilizes a robust well-defined performance provides no assurance of future investment process. The US Private Placement success. strategy is a “buy and hold’ strategy in private debt issued by investment grade companies. The Allocation Risk experienced team of investment professionals has The investment performance of allocation access to the primary and secondary private strategies may depend on how assets are allocated placement market opportunities. The team and reallocated among investments or funds in a reviews approximately 150 transaction per year. fund of funds strategy. There is a risk that the Each new investment opportunity must go adviser may make less than optimal or poor asset through the Gateway Process, which ensure allocation decisions in underlying funds or other accomplishment of the following steps: investments. There is no guarantee that AllianzGI US’s allocation techniques will produce the • Conformity with mandates and desired results. It is possible that AllianzGI US will guidelines focus on underlying funds and other investments • Check of prohibited and restricted that perform poorly or underperform other funds investment lists or investments under various market conditions. • Compliance check Bankruptcy Risk A successful Gateway Process triggers a detailed Many events in a bankruptcy are the product of Credit Analysis and Approval Process. The Credit contested matters and adversarial proceedings Analysis usually starts with a roadshow meeting and are beyond the control of the creditors. There with the Company’s management, and includes a can be no assurance that a bankruptcy court in the review and analysis of the offering memorandum, exercise of its broad powers would not approve management’s presentation, financial statements actions that would be contrary to the interests of and other private placement documents. The the clients. The effect of a bankruptcy filing on a investment team performs the credit analysis, company may adversely and permanently affect reviews the covenant package, assigns an internal the company, including the loss of its market credit rating, identifies appropriate public and position, key employees and otherwise becoming private pricing benchmarks and evaluates the incapable of restoring itself as a viable entity. If for attractiveness of the indicative pricing Some of this or any other reason the proceeding is the debt purchased by the US Private Placement converted to a liquidation, the liquidation value of team will have credit ratings provided by NRSROs the company may not equal the liquidation value and some debt will be unrated by a 3rd party. As that was believed to exist at the time of the part of the Credit Approval, the investment team investment. The duration of a bankruptcy prepares an internal document that includes data proceeding is difficult to predict and a creditor’s pertinent to an investment decision and a return on investment can be adversely affected by recommendation. The team then discusses the delays while the plan of reorganization is being recommendation for approval and, if approved, negotiated and confirmed by the bankruptcy court the team will communicate its indication of and until it ultimately becomes effective. interest to the issuer’s agent. Bonds will then be Bankruptcy law permits the classification of allocated by the issuer and agent and priced with “substantially similar” claims in determining the final closing and settlement contingent, among classification of claims in a reorganization. other things, on satisfactory completion of Because the standard for classification is vague, additional due diligence and a final Note Purchase there exists the risk that a client’s influence with Agreement. respect to the class of securities it owns can be lost by increases in the number and amount of claims RISK OF LOSS in that class or by different classification and treatment. In the early stages of the bankruptcy INVESTING IN SECURITIES INVOLVES RISK OF LOSS process it is often difficult to estimate the extent THAT CLIENTS SHOULD BE PREPARED TO BEAR. of, or even to identify, any contingent claims that might be made. Additionally, certain claims that General have priority by law (for example, claims for taxes) The value of your account changes with the value may be quite significant. See also “Fraudulent of its investments. Many factors can affect those Conveyance and Preference Considerations Risk”. values. Your account may be subject to additional risks other than those described below because Call Risk the types of investments in your account can An issuer may redeem a fixed-income security change over time. There is no guarantee that we before maturity (“call”) at a price below its current
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market price. An increase in the likelihood of a call policies toward China by countries that are trading may reduce the security’s price. If a fixed-income partners with China. The greater China region security is called, the adviser may have to reinvest includes mainland China, Hong Kong, Macau and the proceeds in other fixed-income securities with Taiwan, and a Client account’s investments in the lower interest rates, higher credit risks, or other region are particularly susceptible to risks in that less favorable characteristics. region. Events in any one country within the region may impact the other countries in the China-Related Risk region or the Asia region as a whole. As a result, The Chinese economy is generally considered an events in the region will generally have a greater emerging and volatile market. A small number of effect on a Client account to the extent that it companies represent a large portion of the focuses its investments in the greater China region Chinese market as a whole, and prices for than if the Client account were more securities of these companies may be very geographically diversified, which could result in sensitive to adverse political, economic, or greater volatility and losses. Markets in the greater regulatory developments in China and other Asian China region can experience significant volatility countries, and may experience significant losses in due to social, regulatory and political such conditions. The value of Chinese currencies uncertainties. may also vary significantly relative to the U.S. dollar, affecting a client account’s investments, to Commodity Risk the extent the Client account invests in China- Investments in commodity-linked derivative related investments. Historically, China’s central instruments may be subject to greater volatility government has exercised substantial control over than investments in traditional securities. The the Chinese economy through administrative value of commodity-linked derivative instruments regulation, state ownership, the allocation, may be affected by changes in overall market expropriation or nationalization of resources, by movements, commodity index volatility, changes controlling payment of foreign currency- in interest rates, or factors affecting a particular denominated obligations, by setting monetary industry or commodity, such as drought, floods, policy and by providing preferential treatment to weather, livestock disease, embargoes, tariffs and particular industries or companies. The international economic, political and regulatory emergence of domestic economic demand is still developments. at an early stage, making China’s economic health largely dependent upon exports. China’s growing Confidential or Material, Non-Public Information trade surplus with the U.S. has increased the risk Risk of trade disputes, which could potentially have From time to time certain investment adverse effects on China’s management strategy of professionals of AllianzGI US and its affiliates may its currency, as well as on some export-dependent acquire confidential or material, non-public sectors. Despite economic reforms that have information concerning an issuer in which any resulted in less direct central and local clients of AllianzGI US and its affiliates have government control over Chinese businesses, invested or may invest. The possession of such actions of the Chinese central and local information limits the ability of AllianzGI US and government authorities continue to have a its affiliates generally to buy or sell securities of substantial effect on economic conditions in such issuer on behalf of clients, thereby limiting China. These activities, which may include central the investment opportunities available to such planning, partial state ownership of or clients. government actions designed to substantially influence certain Chinese industries, market Notwithstanding the foregoing, certain designated sectors or particular Chinese companies, may investment teams of AllianzGI US operate adversely affect the public and private sector independently from all other investment teams of companies in which a Client account invests. AllianzGI US and its affiliates with respect to their Government actions may also affect the economic investment activities. Such designated investment prospects for, and the market prices and liquidity teams are more likely to receive confidential or of, the securities of Chinese companies and the material, non-public information during the payments of dividends and interest by Chinese normal course of their business. To address the companies. In addition, currency fluctuations, risk of improper flow of sensitive information, monetary policies, competition, social instability AllianzGI US and its affiliates have established or political unrest may adversely affect economic information barriers that are designed to prevent growth in China. The Chinese economy and and detect the improper flow of confidential or Chinese companies may also be adversely affected material, non-public information. Such by regional security threats, as well as adverse information barriers include physical and developments in Chinese trade policies, or in trade technological barriers and trading restrictions.
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otherwise choose which may decrease the AllianzGI US and its affiliates have established an account’s return. overarching information barrier to separate each designated investment team from the rest of the Corporate Debt Securities Risk investment teams outside of such team’s Corporate debt securities are subject to the risk of information barrier. In addition, AllianzGI US and the issuer’s inability to meet principal and interest its affiliates have established information barriers payments on the obligation and may also be among such designated investment teams that act subject to price volatility due to factors such as as a barrier to separate the designated investment interest rate sensitivity, market perception of the teams from each other. creditworthiness of the issuer and general market liquidity. When interest rates rise, the value of As part of the information barriers, designated corporate debt securities can be expected to investment teams are generally prohibited from decline. Debt securities with longer maturities or communicating confidential or material, non- durations tend to be more sensitive to interest rate public information outside of their ring fence movements than those with shorter maturities. without an approved wall crossing. To the extent an investment professional acquires confidential Credit Risk or material, non-public information through an An account could lose money if the issuer or approved wall crossing, the investment guarantor of a fixed income security (including a professional’s investment team becomes security purchased with securities lending cash restricted from making investments with respect collateral) is unable or unwilling, or is perceived to the relevant issuer(s). (whether by market participants, ratings agencies, pricing services or otherwise) as unable or The establishment and maintenance of the unwilling, to make timely principal and/or interest information barriers discussed above means the payments, or to otherwise honor its obligations. investment teams of AllianzGI US and its affiliates Securities are subject to varying degrees of credit will generally not be able to use, act on or risk, which are often reflected in their credit otherwise be aware of confidential information ratings and an account holding a fixed income otherwise known by or in the possession of the security is subject to the risk that the security’s designated investment teams, and collaboration credit rating will be downgraded. Securities issued between the designated investment teams, on the by the U.S. Treasury historically have presented one hand, and personnel of the rest of AllianzGI However, recent events have led to a downgrade in US, on the other hand, may be limited, reducing the long-term U.S. credit rating by at least one potential synergies. major rating agency in 2011 due to the rising public debt burden and perception of greater AllianzGI US expects to establish additional policymaking uncertainty in the U.S. and have information barriers as needed. introduced greater uncertainty about the ability of the U.S. to repay its obligations. A further credit Convertible Securities Risk rating downgrade or a U.S. credit default could Convertible securities are fixed income securities, decrease the value and increase the volatility of an preferred stocks or other securities that normally account’s investments, to the extent that the pay interest or dividends and are convertible into account has exposure to securities issued by the or exercisable for common stock of the issuer (or U.S. Treasury. Credit risk is particularly cash or securities of equivalent value) at either a pronounced for below investment grade securities stated price or a stated rate (the “conversion (also known as “high yield” or “junk” bonds.) See price”). To the extent the market price of the “High Yield Risk.” underlying stock approaches or is greater than the conversion price, the convertible security’s market Counterparty Risk value tends to correlate with the market price of Accounts may be exposed to the credit risk of the underlying stock and will be subject to the counterparties with which, or the brokers- dealers, risks affecting equity securities in general. To the custodians and exchanges through which, it deals extent the market price of the underlying stock in connection with the investment of its assets, declines below the conversion price, the value of whether engaged in exchange-traded or off- the convertible security tends to be influenced by exchange transactions. For example, accounts the yield of the convertible security. Convertible may be subject to the risk that a counterparty to a securities generally offer lower interest or derivatives contract, repurchase agreement, a loan dividend yields than non-convertible fixed income of portfolio securities or an unsettled transaction or other securities of similar quality. An account may be unable or unwilling to honor its may be forced to convert a security before it would obligations to an account.
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Currency Risk shares in a foreign stock and trade on a U.S. Accounts that invest directly in foreign (non-U.S.) national securities exchange, such as the New York currencies, or in securities that trade in, or receive Stock Exchange. The securities underlying an ADR revenues in, foreign currencies, or in derivatives are usually denominated or quoted in currencies that provide exposure to foreign currencies are other than the U.S. Dollar. As a result, changes in subject to the risk that those currencies will foreign currency exchange rates may affect the decline in value relative to the U.S. dollar, or, in the value of a portfolio's investment. Generally, when case of hedging positions, that the U.S. dollar will the U.S. Dollar rises in value against a foreign decline in value relative to the currency being currency, a security denominated in that currency hedged. loses value because the currency is worth fewer U.S. Dollars. In addition, because the underlying Currency rates may fluctuate significantly over securities of ADRs trade on foreign exchanges at short periods of time for a number of reasons, times when the U.S. markets are not open for including changes in interest rates, intervention trading, the value of the securities underlying the (or the failure to intervene) by U.S. or non-U.S. ADRs may change materially at times when the governments, central banks or supranational U.S. markets are not open for trading. entities such as the International Monetary Fund, or by the imposition of currency controls or other Derivatives Risk political developments in the United States or Derivatives are financial contracts whose value abroad. As a result, an account’s exposure to depends on, or is derived from, the value of an foreign currencies, including investments in underlying asset, reference rate or index. We foreign currency denominated securities, may discuss below some of the types of derivatives that reduce the returns of the account. The local client accounts may use. Client accounts may (but emerging market currencies in which an account are not required to) use derivatives as part of a may be invested from time to time may experience strategy designed to reduce exposure to other substantially greater volatility against the U.S. risks, such as risks associated with changes in dollar than the major convertible currencies of interest rates or currency risk. Client accounts developed countries. may also use derivatives for leverage, which increases opportunities for gain but also involves Cyber Security Risk greater risk of loss due to leveraging risk, and to With the increased use of technologies such as the gain exposure to issuers, indices, sectors, Internet and the dependence on computer systems currencies and/or geographic regions. A client to perform necessary business functions, account’s use of derivative instruments involves investment companies and their service providers risks different from, or possibly greater than, the may be prone to operational and information risks associated with investing directly in security risks resulting from cyber-attacks and/or securities and other traditional investments, and other technological malfunctions. In general, the use of certain derivatives may subject an cyberattacks are deliberate, but unintentional account to the potential for unlimited loss. To the events may have similar effects. Cyber-attacks extent an account writes call options on individual include, among others, stealing or corrupting data securities that it does not hold in its portfolio maintained online or digitally, preventing (“naked” call options), it is subject to the risk that legitimate users from accessing information or a liquid market for the underlying security may services on a website, releasing confidential not exist at the time an option is exercised or when information without authorization, and causing the account otherwise seeks to close out an option operational disruption. Successful cyber-attacks position; naked call options have speculative against, or security breakdowns of, a custodian, characteristics and the potential for unlimited transfer agent, or other affiliated or third-party loss. Derivatives also involve the risk of mispricing service provider may adversely affect the Firm or or improper valuation, the risk of ambiguous its affiliates. While AllianzGI US has established documentation, and the risk that changes in the business continuity plans and systems designed to value of the derivative may not correlate perfectly prevent cyber-attacks, there are inherent with the underlying asset, rate or index. In limitations in such plans and systems including addition, an account’s use of derivatives may the possibility that certain risks have not been increase or accelerate the amount of taxes payable identified. by the account holder. By investing in a derivative instrument, an account could lose more than the Depositary Receipt Risk principal amount invested. Also, suitable Certain strategies may invest in securities of non- derivative transactions may not be available in all U.S. companies in the form of ADRs. ADRs are circumstances and there can be no assurance that negotiable certificates issued by a U.S. financial we will engage in these transactions to reduce institution that represent a specified number of exposure to other risks when that would be
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beneficial or that, if used, these strategies will be currencies. An account may purchase and sell successful. Finally, federal legislation has been futures contracts and options thereon with respect recently enacted in the U.S. that provides for new to securities, securities indexes, interest rates and clearing, margin, reporting and registration foreign currencies. Derivatives are subject to a requirements for participants in the derivatives number of risks described elsewhere in this market. Under recently adopted rules and section, such as liquidity risk, market risk, credit regulations, transactions in some types of swaps and counterparty risk and management risk. As a (including interest rate swaps and credit default seller of a credit default swap, an account swaps on North American and European indices) effectively adds economic leverage to its portfolio are required to be centrally cleared. In a cleared because, in addition to its total net assets, the derivatives transaction, a counterparty is a account is subject to investment exposure on the clearing house, rather than a bank or broker. Since notional amount of the swap. See “Leveraging only members of a clearing house can participate Risk.” Additionally, holding a position in a credit directly in the clearing house, accounts will hold default swap could result in losses if the account cleared derivatives through accounts at clearing does not correctly evaluate the creditworthiness of members. In cleared derivatives transactions, the the company on which the credit default swap is payments will be made (including margin based. payments) to and receive payments from a clearing house through their accounts at clearing Other risks in using derivatives include the risk of members. Clearing members guarantee mispricing or improper valuation of derivatives. performance of their clients’ obligations to the Many derivatives, in particular privately clearing house. negotiated derivatives, are complex and illiquid and thus often valued subjectively. Improper Centrally cleared derivative arrangements may be valuations can result in increased cash payment less favorable than bilateral arrangements. For requirements to counterparties or a loss of value example, greater amounts of margin may be to the account. Also, the value of derivatives may required for cleared derivatives transactions than not correlate perfectly, or at all, with the value of for bilateral derivatives transactions may be the assets, reference rates or indexes they are required to provide. Also, in contrast to bilateral designed to closely track. In addition, our use of derivatives transactions, following a period of derivatives may accelerate and/or increase the notice, a clearing member generally can require amount of taxes payable. Derivative instruments termination of existing cleared derivatives are also subject to the risk of ambiguous transactions at any time or increases in margin documentation. requirements above the margin that the clearing member required at the beginning of a There are significant differences between the transaction. Clearing houses also have broad securities and derivatives markets that could rights to increase margin requirements for result in an imperfect correlation between these existing transactions or to terminate transactions markets, causing a given transaction not to at any time. achieve the intended result. A decision as to whether, when and how to use derivatives involves These and other new rules and regulations could, the exercise of skill and judgment, and even a well- among other things, further restrict an account’s conceived transaction may be unsuccessful to ability to engage in, or increase the cost to the some degree because of market behavior or account of, derivatives transactions, for example, unexpected events. In addition, derivatives by making some types of derivatives no longer strategies that are successful under certain market available to an account, increasing margin or conditions may be less successful or unsuccessful capital requirements, or otherwise limiting under other market conditions. liquidity or increasing transaction costs. These regulations are new and evolving, so their Distressed Securities Risk potential impact on accounts and the financial The firm may recommend investments in system are not yet known. “distressed securities”-securities, private claims and obligations of domestic and foreign entities Examples of derivative instruments that we may which are experiencing significant financial or buy, sell or otherwise utilize include, among business difficulties. Investments may include others, option contracts, futures contracts, options loans, commercial paper, loan participations, on futures contracts, forward contracts, warrants trade claims held by trade or other creditors, and swap agreements, including swap agreements stocks, partnership interests and similar financial with respect to securities indexes. An account may instruments, executory contracts and options or purchase and sell (write) call and put options on participations therein not publicly traded. securities, securities indexes and foreign Distressed securities may result in significant
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returns to a client account, but also involve a Emerging market securities may trade in more substantial degree of risk. A client account may limited volume than comparable securities in lose a substantial portion or all of its investment in developed foreign markets. Emerging market a distressed environment or may be required to securities may have different clearance and accept cash or securities with a value less than the settlement procedures, which may be unable to original investment. Among the risks inherent in keep pace with the volume of securities investments in entities experiencing significant transactions or otherwise make it difficult to financial or business difficulties is the fact that it engage in such transactions. frequently may be difficult to obtain information as to the true condition of such issuers. Such Settlement problems may cause an account to investments also may be adversely affected by miss attractive investment opportunities, hold a state and federal laws relating to, among other portion of its assets in cash pending investment, or things, fraudulent conveyances, voidable be delayed in disposing of a portfolio security, all preferences, lender liability and the bankruptcy of which would negatively affect an account’s court’s discretionary power to disallow, performance. In addition, the risks associated with subordinate or disenfranchise particular claims. investing in a narrowly-defined geographic area The market prices of such instruments are also (discussed below under “Non-U.S. Investment subject to abrupt and erratic market movements Risk” and “Focused Investment Risk”) are and above average price volatility, and the spread generally more pronounced with respect to between the bid and asked prices of such investments in emerging market countries. For instruments may be greater than normally example, to the extent an account invests in expected. In trading distressed securities, companies incorporated or doing significant litigation sometimes arises. Such litigation can be business in China, which may be considered an time-consuming and expensive and can frequently emerging market, the risks associated with China- lead to unpredicted delays or losses. related investments may be more pronounced for such accounts. See “China-Related Risk” above. Emerging-Markets Risk Accounts may also be subject to Emerging Markets Investments in non-U.S. securities may experience Risk if they invest in derivatives or other securities more rapid and extreme changes in value than or instruments whose value or returns are related investments exclusively in securities of U.S. issuers to the value or returns of emerging market or securities that trade exclusively in U.S. markets. securities. See “Non-U.S. Investment Risk” in this Item. Non- U.S. investment risk may be particularly high to Investing in some emerging markets through the extent that an account or fund invests in trading structures or protocols that subject them securities of issuers tied economically to countries to risks such as those associated with illiquidity, with developing economies. These securities may custodying assets, different settlement and present market, credit, currency, liquidity, legal, clearance procedures and asserting legal title political, technical and other risks different from, under a developing legal and regulatory regime to or greater than, the risks of investing in developed a greater degree than in developed markets or countries. In addition, the risks associated with even in other emerging markets. investing in a narrowly-defined geographic area are generally more pronounced with respect to Equity Securities Risk investments in emerging market countries. Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an Certain emerging market countries may impose issuer. Equity securities may take the form of restrictions on foreign investment and shares of common stock of a corporation, repatriation of investment income and capital. In membership interests in a limited liability addition, foreign investors may be required to company, limited partnership interests, or other register the proceeds of sales, and future economic forms of ownership interests. Equity securities also or political crises could lead to price controls, include, among other things, preferred stocks, forced mergers, nationalization or the creation of convertible securities and warrants. The value of a government monopolies. The currencies of company’s equity securities may fall as a result of emerging market countries may experience factors directly relating to that company, such as significant declines against the U.S. dollar, and decisions made by its management or lower devaluation may occur subsequent to investments demand for the company’s products or services. in these currencies by an account. See “Currency The value of an equity security may also fall Risk.” Inflation and rapid fluctuations in inflation because of factors affecting not just the company, rates have had, and may continue to have, but also companies in the same industry or in a negative effects on the economies and securities number of different industries, such as increases markets of certain emerging market countries. in production costs. The value of a company’s
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equity securities may also be affected by changes than in the United States, making the securities of in financial markets that are relatively unrelated issuers traded thereon less liquid and more to the company or its industry, such as changes in volatile than similar U.S. securities. Politically, interest rates or currency exchange rates or several Far Eastern countries are still developing adverse circumstances involving the credit and could de-stabilize. In addition, it is possible markets. In addition, because a company’s equity that governments in the region could take action securities rank junior in priority to the interests of adverse to Far Eastern issuers, such as bond holders and other creditors, a company’s nationalizing industries or restricting the flow of equity securities will usually react more strongly money in and out of their countries. than its bonds and other debt to actual or perceived changes in the company’s financial Fixed Income Risk condition or prospects. To the extent a strategy Client accounts that invest in fixed income invests in equity-related instruments it will also be instruments are subject to interest rate risk. subject to these risks. Changes in the market values of fixed income instruments are largely a function of changes in Accounts that invest in equity securities of the current level of interest rates. The value of a companies that their portfolio managers believe client account’s investments in fixed income will experience relatively rapid earnings growth instruments will typically change as the level of (growth securities) or that their portfolio interest rates fluctuate. During periods of managers believe are selling at a price lower than declining interest rates, the values of fixed income their true value (value securities). Growth instruments are generally expected to rise. securities typically trade at higher multiples of Conversely, during periods of rising interest rates, current earnings than other securities. Therefore, the values of fixed income instruments are the value of growth securities may be more generally expected to decline. “Duration” is one sensitive to changes in current or expected measure of the expected life of a fixed income earnings than the value of other securities. instrument that is used to determine the Companies that issue value securities may have sensitivity of a security’s price to changes in experienced adverse business developments or interest rates. Securities with longer durations may be subject to special risks that have caused tend to be more sensitive to changes in interest their securities to be out of favor. If a portfolio rates, usually making them more volatile than manager’s assessment of a company’s prospects is securities with shorter durations. Accordingly, wrong, or if the market does not recognize the client accounts with longer average portfolio value of the company, the price of its securities durations will generally be more sensitive to may decline or may not approach the value that changes in interest rates than client accounts with the portfolio manager anticipates. shorter average portfolio durations. As a general rule, a 1% rise in interest rates means a1% fall in European Concentration Risk value for every year of positive duration. Similarly, When an account holds or obtains exposure to as a general rule, if an account exhibited a European securities or indices of securities, it may negative duration profile and interest rates be affected significantly by economic, regulatory declined by 1%, there would be a 1% fall in value for or political developments affecting European every year of negative duration. Inflation-indexed issuers. All countries in Europe may be securities, including Treasury Inflation Protected significantly affected by fiscal and monetary Securities (TIPs), decline in value when interest controls implemented by the European Economic rates rise. In certain interest rate environments, and Monetary Union. Eastern European markets such as when real interest rates are rising faster are relatively undeveloped and may be particularly than nominal interest rates, inflation-indexed sensitive to economic and political events affecting securities may experience greater losses than those countries. other fixed income instruments with similar durations. A nominal interest rate can be Far Eastern (excluding Japan) Concentration Risk described as the sum of a real interest rate and an An account that holds or obtains exposure to Far expected inflation rate. Also, some portfolios (e.g., Eastern (excluding Japanese) securities or indices portfolios with mortgage-backed and other of securities may be affected significantly by prepayable securities) have changing durations economic, regulatory or political developments and may have increasing durations precisely when affecting Far Eastern issuers. The economies and that is least advantageous (i.e., when interest rates financial markets of some Far Eastern countries are rising). Certain client accounts may invest in have been erratic in recent years, and several securities that are particularly sensitive to countries’ currencies have fluctuated in value fluctuations in prevailing interest rates and have relative to the U.S. dollar. The trading volume on relatively high levels of interest rate risk. These some Far Eastern stock exchanges is much lower include various mortgage-related securities (e.g.,
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the interest-only or “IO” class of a stripped mortgage-backed security) and “zero coupon” • Health Sciences-Related Risk. securities (fixed income instruments, including Accounts that focus their investments in the certain U.S. Government securities, that do not health sciences-related sector will be subject make periodic interest payments and are to risks particular to that sector, including purchased at a discount from their value at rapid obsolescence of products and services, maturity). Client accounts that may invest in the potential and actual performance of a securities issued by U.S. Government agencies or limited number of products and services, government enterprises. Although some of these technological change, patent expirations, securities may be guaranteed as to the payment of risks associated with new regulations and principal or interest by the relevant enterprise or changes to existing regulations, changes in agency. government subsidy and reimbursement levels, risks associated with the Focused Investment Risk governmental approval process, and Focusing an account’s investments in a small chances of lawsuits versus health sciences- number of issuers, industries, foreign currencies related companies due to product or service or regions increases risk. If an account invests a liability issues. significant portion of its assets in a relatively small number of issuers, it may have more risk because • Natural Resources-Related Companies Risk. changes in the value of a single security or the Accounts that make significant investments impact of a single economic, political or regulatory in the natural resources industries will be occurrence may have a greater adverse impact on subject to the risk factors particular to each the account’s value. Some of those issuers also such industry. Natural resources industries may present substantial credit or other risks. In can be significantly affected by events addition, the account may be subject to increased relating to international political and risk to the extent it focuses its investments in economic developments (e.g., regime securities denominated in a particular foreign changes and changes in economic activity currency or in a narrowly-defined geographic area levels), expropriation, or other confiscation, outside the United States. Similarly, if the account population growth and changing focuses its investments in a certain type of issuer, demographics, energy conservation, the it will be particularly vulnerable to events affecting success of exploration projects, global that type of issuer. Also, the account may have commodity prices, adverse international greater risk to the extent it invests a substantial monetary policies, tax and other government portion of its assets in a group of related industries regulations, and natural phenomena around (or “sectors”). The industries comprising any the world, such as drought, floods and other particular sector and investments in a particular adverse weather conditions and livestock foreign currency or in a narrowly-defined disease. Specifically, cyclical industries can geographic area outside the United States may be significantly affected by general economic share common characteristics, are often subject to trends, including employment, economic similar business risks and regulatory burdens, and growth, interest rates, changes in consumer react similarly to economic, market, political or sentiment and spending, global commodity other developments. An account may from time to prices, legislation, government regulation time invest a substantial portion of its assets in and spending, import controls and certain sectors, and during these periods will be worldwide competition and companies subject to a greater extent to the risks associated engaged in such industries can be subject to with these sectors. liability for, among other things, environmental damage, depletion of • Consumer-Related Companies Risk. resources, and mandated expenditures for Client Accounts that invest in the consumer safety and pollution control. Furthermore, and consumer-related sectors, which the natural resources industries and funds include the consumer staples, consumer that focus their investments in such discretionary and healthcare industries, will industries can also be significantly affected be associated with the risks particular to by the level and volatility of commodity those sectors, including demographic and prices, which have historically been among product trends, performance of the overall the most volatile of international prices, economy, competition, marketing often exceeding the volatility of exchange campaigns, environmental factors, rates and interest rates. Finally, investments government regulation, interest rates, in natural resources industries are subject to consumer confidence and disposable the risk that the performance of such household income and consumer spending. industries may not correlate with broader
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equity market returns or with returns on affiliates, on the other hand. The measure of natural resources investments to the extent insolvency for purposes of the foregoing will vary expected by portfolio manager(s). depending on the law of the jurisdiction that is being applied. Generally, however, a borrower • Technology-Related Risk. would be considered insolvent at a particular time Accounts that make significant investments if the sum of its debts was greater than all of its in the technology sectors will be subject to assets at a fair valuation or if the then-present fair risks particularly affecting technology or saleable value of its assets was less than the technology-related companies, such as the amount that would be required to pay its probable risks of short product cycles and rapid liabilities on its then-existing debts as they obsolescence of products and services, became absolute and matured. There can be no competition from new and existing assurance as to what standard a court would apply companies, significant losses and/or limited in order to determine whether a borrower was earnings, security price volatility, limited insolvent after giving effect to the incurrence of the operating histories and management loan or that, regardless of the method of experience, and patent and other intellectual evaluation, a court would not determine that the property considerations. borrower was “insolvent” upon giving effect to such incurrence. In general, if payments on an Fraudulent Conveyance and Preference Risk. investment are avoidable, whether as fraudulent Various federal and state laws enacted for the conveyances or preferences, such payments can be protection of creditors may apply to the purchases recaptured either from the initial recipient (such of clients’ investments, which may constitute the as clients) or from subsequent transferees of such primary assets of certain client accounts, by virtue payments. of the clients’ role as a creditor with respect to the borrowers under such investments. If a court in a High Yield Risk lawsuit brought by an unpaid creditor or Investments in high yield securities and unrated representative of creditors of a borrower, such as a securities of similar credit quality (sometimes trustee in bankruptcy or the borrower as debtor- referred to as “high yield securities” or “junk in-possession, were to find that the borrower did bonds”) may be subject to greater levels of credit not receive fair consideration or reasonably and liquidity risk than investments in such equivalent value for incurring indebtedness securities. These securities are considered evidenced by an investment and the grant of any predominately speculative with respect to the security interest or other lien securing such issuer’s continuing ability to make principal and investment, and, after giving effect to the incurring interest payments. An economic downturn or of such indebtedness, the borrower (i) was period of rising interest rates could adversely insolvent, (ii) was engaged in a business for which affect the market for these securities and reduce the assets remaining in such borrower constituted the ability to sell these securities (liquidity risk). If unreasonably small capital or (iii) intended to the issuer of a security is in default with respect to incur, or believed that it would incur, debts beyond interest or principal payments, a client may lose its ability to pay such debts as they mature, such its entire investment. court could invalidate, in whole or in part, such indebtedness and such security interest or other High Yield Debt Risk lien as fraudulent conveyances, could subordinate For certain clients, a substantial portion of the such indebtedness to existing or future creditors of high yield debt recommended for investment may the borrower or could allow the borrower to be rated below investment-grade by one or more recover amounts previously paid by the borrower nationally recognized statistical rating to the creditor (including to clients) in satisfaction organizations or are unrated but of comparable of such indebtedness or proceeds of such security credit quality to obligations rated below interest or other lien previously applied in investment-grade, and have greater credit and satisfaction of such indebtedness. In addition, in liquidity risk than more highly rated debt the event of the insolvency of an issuer of an obligations. High yield debt is generally unsecured investment, payments made on the clients’ and may be subordinate to other obligations of the investments could be subject to avoidance as a obligor. The lower rating of high yield debt reflects “preference” if made within a certain period of a greater possibility that adverse changes in the time (which may be as long as one year) before financial condition of the obligor or in general insolvency depending on a number of factors, economic conditions (including, for example, a including the amount of equity of the borrower substantial period of rising interest rates or owned by clients and their affiliates and any declining earnings) or both may impair the ability contractual arrangement between the borrower, of the obligor to make payment of principal and on the one hand, and the clients and their interest. Many issuers of high yield debt are highly
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leveraged, and their relatively high debt-to-equity nominal interest rates, the values of fixed income ratios create increased risks that their operations instruments are generally expected to rise. To the might not generate sufficient cash flow to service extent that a client account effectively has short their debt obligations. In addition, many issuers of positions with respect to fixed income high yield debt may be (i) in poor financial instruments, the values of such short positions condition, (ii) experiencing poor operating results, would generally be expected to rise when nominal (iii) having substantial capital needs or negative interest rates rise and to decline when nominal net worth or (iv) facing special competitive or interest rates decline. As nominal interest rates product obsolescence problems, and may include rise, the value of certain fixed income securities is companies involved in bankruptcy or other likely to decrease. A nominal interest rate can be reorganizations or liquidation proceedings. described as the sum of a real interest rate and an Certain of these securities may not be publicly expected inflation rate. Fixed income securities traded, and therefore it may be difficult to obtain with longer durations tend to be more sensitive to information as to the true condition of the issuers. changes in interest rates, usually making them Overall declines in the below investment-grade more volatile than securities with shorter bond and other markets may adversely affect such durations. The values of equity and other non- issuers by inhibiting their ability to refinance their fixed income securities may also decline due to debt at maturity. High yield debt is often less liquid fluctuations in interest rates. than higher rated securities. High yield debt is often issued in connection with leveraged Variable and floating rate securities generally are acquisitions or recapitalizations in which the less sensitive to interest rate changes but may issuers incur a substantially higher amount of decline in value if their interest rates do not rise as indebtedness than the level at which they had much, or as quickly, as interest rates in general. previously operated. High yield debt has Conversely, floating rate securities will not historically experienced greater default rates than generally increase in value if interest rates decline. has been the case for investment-grade securities. Inverse floating rate securities may decrease in The firm also may recommend that certain clients value if interest rates increase. Inverse floating invest in equity securities issued by entities with rate securities may also exhibit greater price unrated or below investment-grade debt. volatility than a fixed rate obligation with similar credit quality. When a client account holds Index Risk variable or floating rate securities, a decrease (or, Investments in derivatives that are linked to the in the case of inverse floating rate securities, an performance of an index, will be subject to the increase) in market interest rates will adversely risks associated with changes in the applicable affect the income received from such securities index. If the applicable index changes, such an and the value of the account. investment could receive lower interest payments (in the case of a debt-related derivative) or IPO Risk experience a reduction in the value of the Client accounts may purchase securities in initial derivative to below what the investor paid. Certain public offerings (“IPOs”). These securities are indexed securities may create leverage to the subject to many of the same risks as investing in extent that they increase or decrease in value at a companies with smaller market capitalizations rate that is a multiple of the changes in the and often to a heightened degree. Securities applicable index. issued in IPOs have no trading history, and information about the companies may be Industry Concentration available for very limited periods. In addition, the Market conditions, interest rates, and economic, prices of securities sold in IPOs may be highly regulatory or financial developments could volatile. At any particular time or from time to significantly affect a single industry or a group of time, an account may not be able to invest in related industries, and the securities of companies securities issued in IPOs, or invest to the extent in that industry or group of industries could react desired, because, for example, only a small portion similarly to these or other developments. See (if any) of the securities being offered in an IPO “Focused Investment Risk” above. may be made available to the account. See Item 12 below for a discussion of our policies concerning Interest Rate Risk IPOs and secondary offerings. In addition, under Interest rate risk is the risk that fixed income certain market conditions, a relatively small securities’ valuations will change in value because number of companies may issue securities in IPOs. of changes in interest rates. During periods of Similarly, as the number of portfolios to which IPO rising nominal interest rates, the values of fixed securities are allocated increases, the number of income instruments are generally expected to securities issued to the account may decrease. The decline. Conversely, during periods of declining investment performance of an account during
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periods when it is unable to invest significantly or The South Korean government from time to time at all in IPOs may be lower than during periods has informally influenced the prices of certain when the account is able to do so. In addition, as products, encouraged companies to invest or to an account increases in size, the impact of IPOs on concentrate in particular industries and induced its performance will generally decrease. mergers between companies in industries experiencing excess capacity. Issuer Risk The value of a security may decline for a number of Lender Liability and Equitable Subordination Risk. reasons that directly relate to the issuer, such as In recent years, a number of judicial decisions in management performance, financial leverage and the United States have upheld the right of reduced demand for the issuer’s goods or services, borrowers to sue lending institutions on the basis as well as the historical and prospective earnings of various evolving legal theories (collectively of the issuer and the values of its assets. termed “lender liability”). Generally, lender liability is founded upon the premise that an Japanese Concentration Risk institutional lender has violated a duty (whether An account that holds or obtains exposure to implied or contractual) of good faith and fair Japanese securities or indices of securities may be dealing owed to the borrower or has assumed a affected significantly by economic, regulatory or degree of control over the borrower resulting in political developments affecting Japanese issuers. creation of a fiduciary duty owed to the borrower The Japanese economy, after achieving high or its other creditors or shareholders. Because of growth in the 1980s, faltered dramatically in the the nature of certain of clients’ investments, 1990s. While Japan’s recent economic clients could be subject to allegations of lender performance has shown improvements with liability. In addition, under common law positive GDP growth, the Japanese government principles that in some cases form the basis for continues to deal with high tax and lender liability claims, if a lending institution (i) unemployment rates, unstable banking and intentionally takes an action that results in the financial service sectors, and low consumer undercapitalization of a borrower to the detriment spending. Should any or all of these problems of other creditors of such borrower, (ii) engages in persist or worsen, an account invested in such other inequitable conduct to the detriment of such securities could be adversely affected. A small other creditors, (iii) engages in fraud with respect number of industries, including the electronic to, or makes misrepresentations to, such other machinery industry, comprise a large portion of creditors or (iv) uses its influence as a stockholder the Japanese market, and therefore weakness in to dominate or control a borrower to the detriment any of these industries could have profound of the other creditors of such borrower, a court negative impact on the entire market. In addition, may elect to subordinate the claim of the offending Japan has few natural resources; its economy is lending institution to the claims of the heavily dependent on foreign trade and so it is disadvantaged creditor or creditors, a remedy vulnerable to trade sanctions or other called “equitable subordination.” Because of the protectionist measures taken by its trading nature of certain of the clients’ investments, partners. clients could be subject to claims from creditors of an obligor that the clients’ investments issued by Korea-Related Risk such obligor that are held by the clients should be Investing in South Korean securities has special equitably subordinated. A significant number of risks, including political, economic and social the clients’ investments may involve investments instability, and the potential for increasing in which a client would not be the lead creditor. It militarization in North Korea. The market is, accordingly, possible that lender liability or capitalization and trading volume of issuers in equitable subordination claims affecting the South Korean securities markets are concentrated clients’ investments could arise without the direct in a small number of issuers, which results in involvement of the clients. potentially fewer investment. South Korea’s financial sector has shown certain signs of Leveraging Risk systemic weakness and illiquidity, which, if Leverage, through either borrowing or the use of exacerbated, could prove to be a material risk for derivatives, will cause the value of an account to be any investments in South Korea. South Korea is more volatile than if the account did not use dependent on foreign sources for its energy needs. leverage. This is because leverage tends to A significant increase in energy prices could have exaggerate the effect of any increase or decrease in an adverse impact on South Korea’s economy. the value of an account’s portfolio securities. Certain strategies may engage in transactions or The South Korean government has historically purchase instruments that give rise to forms of exercised and continues to exercise substantial leverage. Such transactions and instruments may influence over many aspects of the private sector.
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include, among others, the use of reverse interest or fees or releases any material guarantee repurchase agreements and other borrowings, the or security without the consent of the participant investment of collateral from loans of portfolio (at least to the extent the participant would be securities, or the use of when issued, delayed- affected by any such amendment, modification or delivery or forward commitment transactions. The waiver). Selling institutions voting in connection use of derivatives and short sales may also involve with a potential waiver of a restrictive covenant leverage. The use of leverage may cause an may have interests different from those of a client, account to liquidate portfolio positions when it and such selling institutions might not consider would not be advantageous to do so in order to the interests of the client in connection with their satisfy its obligations or to meet segregation votes. In addition, many participation agreements requirements. that provide voting rights to the holder of the participation further provide that if the holder Liquidity Risk does not vote in favor of amendments, Liquidity risk exists when particular investments modifications or waivers, the selling lender may are difficult to purchase or sell, possibly repurchase such participation at par. Holders of preventing the sale of such illiquid securities at an participations are subject to additional risks not advantageous time or price, possibly requiring an applicable to a holder of a direct interest in a loan. account to dispose of other investments at Participations typically result in a contractual unfavorable times or prices in order to satisfy its relationship only with the selling institution, not obligations or possibly delaying redemptions and with the underlying borrower. The holder of the withdrawals. Investment strategies that involve participation has the right to receive payments of securities of companies with smaller market principal, interest and any fees to which it is capitalizations, non-U.S. securities, Rule 144A entitled only from the selling institution selling the securities, derivatives or securities with participation and only upon receipt by such selling substantial market and/or credit risk tend to have institution of such payments from the borrower. In the greatest exposure to liquidity risk. the event of the insolvency of the selling Additionally, the market for certain investments institution, under the laws of the United States and may become illiquid under adverse market or the various States thereof, a holder of a economic conditions independent of any specific participation may be treated as a general creditor adverse changes in the conditions of a particular of the selling institution and may not have any issuer. In such cases, an account, due to exclusive or senior claim with respect to the limitations on investments in illiquid securities selling institution’s interest in, or the collateral and the difficulty in purchasing and selling such with respect to, the loan. Consequently, the holder securities or instruments, may be unable to of a participation will be subject to the credit risk achieve its desired level of exposure to a certain of the selling institution as well as of the borrower. issuer or sector. Participants also generally do not benefit from the collateral (if any) supporting the loans in which Loans Risk they have a participation interest because Loans and Participations. Loans may become non- participations generally do not provide a performing for a variety of reasons and may purchaser with direct rights to enforce compliance require substantial workout negotiations or by the borrower with the terms of the loan restructuring that may entail, among other things, agreement or any rights of set-off against the a substantial reduction in the interest rate and a borrower. The holder of a participation may not substantial write-down of principal. In addition, have the right to vote to waive enforcement of any when a client holds a loan by way of participation, restrictive covenant breached by the underlying it may not have voting rights with respect to any borrower or, if the holder does not vote as waiver of enforcement of any restrictive covenant requested by the selling institution, it may be breached by a borrower. Selling institutions subject to repurchase of the participation at par. commonly reserve the right to administer the Selling institutions voting in connection with a participations sold by them as they see fit (unless potential waiver of a restrictive covenant may have their actions constitute gross negligence or willful interests different from those of the holder of the misconduct) and to amend the documentation participation, and such selling institutions may evidencing the obligations in all respects. not consider the interests of such holder in However, most participation agreements provide connection with their votes. The firm is not that the selling institutions may not vote in favor required, and does not expect, to perform of any amendment, modification or waiver that independent credit analyses of the selling forgives principal, interest or fees, reduces institutions. principal, interest or fees that are payable, postpones any payment of principal (whether a Loans and Assignments. Clients also will purchase scheduled payment or a mandatory prepayment), loans by way of assignments. The purchaser of an
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assignment typically succeeds to all the rights and (with respect to liquidation preferences with obligations of the assignor of the loan and respect to pledged collateral) to other secured becomes a lender under the loan agreement and obligations of the obligors secured by all or a other operative agreements relating to the loan. portion of the collateral securing such secured Assignments are, however, arranged through loan. Second lien loans are typically subject to private negotiations between potential assignees intercreditor arrangements, the provisions of and potential assignors, and the rights and which may prohibit or restrict the ability of the obligations acquired by the purchaser of an holder of a second lien loan to (i) exercise assignment may differ from, and be more limited remedies against the collateral with respect to than, those held by the assignor of the loan. In their second liens; (ii) challenge any exercise of contrast to the rights of a client as an owner of a remedies against the collateral by the first lien participation, the client, as an assignee, generally lenders with respect to their first liens; (iii) will have the right to receive directly from the challenge the enforceability or priority of the first obligor all payments of principal, interest and any liens on the collateral; and (iv) exercise certain fees to which it is entitled. In some assignments, other secured creditor rights, both before and the obligor may have the right to continue to make during a bankruptcy of the borrower. In addition, payments to the assignor with respect to the during a bankruptcy of the obligor, the holder of a assigned portion of the loan. In such a case, the second lien loan may not be required to give assignor would be obligated to receive such advance consent to (a) any use of cash collateral payments as agent for the client and to promptly approved by the first lien creditors; (b) sales of pay over to the client such amounts as are collateral approved by the first lien lenders and the received. As a purchaser of an assignment, the bankruptcy court, so long as the second liens client typically will have the same voting rights as continue to attach to the sale proceeds; and (c) other lenders under the applicable loan agreement debtor-in-possession financings. and will have the right to vote to waive enforcement of breaches of covenants. The client Contingent Liabilities. Clients may from time to also will have the same rights as other lenders to time incur contingent liabilities in connection enforce compliance by the obligor with the terms with an investment that the firm may recommend. of the loan agreement, to set-off claims against the For example, clients may purchase from a lender a obligor and to have recourse to collateral revolving credit facility that has not yet been fully supporting the loan. As a result, the client may not drawn. If the borrower subsequently draws down bear the credit risk of the assignor and the the facility, the clients would be obligated to fund insolvency of an assignor of a loan should have the amounts due. Clients may acquire delayed little effect on the ability of the client to continue draw term loans, where the lender has made a to receive payments of principal, interest or fees commitment to the borrower to lend with a pre- from the obligor. The client will, however, assume defined future draw period and it may also enter the credit risk of the obligor. Non-performing into agreements pursuant to which it agrees to loans may require substantial workout assume responsibility for default risk presented by negotiations or restructuring that may entail, a third-party, and may, on the other hand, enter among other things, a substantial reduction in the into agreements through which third-parties offer interest rate, a substantial write-down of the default protection to the clients. principal and/or a substantial extension of the amortization and/or maturity date of the loan. Any Management Risk such reduction, write-down or extension will likely Each strategy is subject to management risk cause a significant decrease in the interest because it is an actively managed investment collections on the loans and any such write-down portfolio. AllianzGI US will apply investment or extension will likely also cause a significant techniques and risk analyses in making decrease in the principal collections on the loans. investment decisions for the strategies, but there can be no guarantee that these will produce the Covenant-Lite Loans. Covenant-Lite loans typically desired results. The strategies are also subject to do not have maintenance covenants. Ownership of the risk that deficiencies in the internal systems or Covenant-Lite loans may expose clients investing controls of the Adviser or another service provider in similar types of assets to different risks, will cause losses for the strategies or hinder including with respect to liquidity, price volatility operations. For example, trading delays or errors and ability to restructure loans, than is the case (both human and systemic) could prevent a with loans that have the benefit of maintenance strategy from purchasing a security expected to covenants. appreciate in value. Additionally, legislative, regulatory, or tax developments may affect the Second Lien Loans. Second lien loans are secured investment techniques available to AllianzGI US in by a pledge of collateral, but are subordinated connection with managing the strategies and may
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also adversely affect the ability of the strategies to be no assurances that portfolio companies will not achieve their investment objectives. To the extent experience financial difficulties that may result in portfolio managers employ strategies that are not large losses. correlated to broader markets, or that are intended to seek returns under a variety of market Minority Positions Risk conditions (such as managed volatility strategies), As part of its overall investment strategy, clients certain accounts may outperform the general may hold minority positions in one or more securities market during periods of flat or negative portfolio companies, and as such it may not be market performance, and underperform the able to exercise control over such companies. In securities market during periods of strong market such cases, the clients will be significantly reliant performance. on the existing management and board of directors of such companies, which may include Market Risk representatives of other investors with whom the The market price of securities in a client account client is not affiliated and whose interests may may go up or down, sometimes rapidly or conflict with the interests of the client. unpredictably. Substantial investments in common stocks and/or other equity securities may Mortgage –Related and Other Asset-Backed Risk decline in value due to factors affecting securities Accounts that may invest in a variety of mortgage markets generally or particular industries or related and other asset-backed securities, which sectors represented in those markets. The values of are subject to certain additional risks. Generally, securities may decline due to general market rising interest rates tend to extend the duration of conditions that are not specifically related to a fixed-rate mortgage-related securities, making particular company, such as real or perceived them more sensitive to changes in interest rates. adverse economic conditions, changes in the As a result, in a period of rising interest rates, an general outlook for corporate earnings, changes in account that holds mortgage-related securities interest or currency rates, adverse changes to may exhibit additional volatility. This is known as credit markets or adverse investor sentiment extension risk. In addition, adjustable and fixed- generally. They may also decline due to factors rate mortgage-related securities may involve that disproportionately affect a particular special risks relating to unanticipated rates of industry, group of related industries or sector, prepayment on the mortgages underlying the such as labor shortages or increased production securities. This is known as prepayment risk. costs and competitive conditions within an When interest rates decline, borrowers may pay off industry or sector. Equity securities generally have their mortgages sooner than expected. This can greater price volatility than fixed income reduce the returns of an account because the securities. During a general downturn in securities account may have to reinvest that money at the markets, multiple asset classes may decline in lower prevailing interest rates. Accounts’ value simultaneously. investments in other asset-backed securities are subject to risks similar to those associated with Mezzanine Securities Risk. mortgage-related securities, as well as additional Although mezzanine securities are typically senior risks associated with the nature of the assets and to common stock or other equity securities, the the servicing of those assets. The market for preferred equity and debt securities that the mortgage-backed and other asset-backed Advisers may recommend will generally be securities has recently experienced high volatility unsecured and subordinated to substantial and a lack of liquidity. As a result, the value of amounts of senior debt, all or a significant portion many of these securities has significantly declined. of which may be secured. In addition, these There can be no assurance that these markets will securities may not be protected by all of the become more liquid or less volatile, and it is financial covenants, such as limitations upon possible that the value of these securities could additional indebtedness, typically protecting such decline further. senior debt. Holders of mezzanine debt generally are not entitled to receive any payments in Non-U.S. Investment Risk bankruptcy or liquidation until senior creditors Investments in non-U.S. securities may experience are paid in full. Holders of preferred equity are not more rapid and extreme changes in value than entitled to payments until all creditors are paid in investments in securities of U.S. issuers or full. In addition, the remedies available to holders securities that trade exclusively in U.S. markets. of mezzanine debt are normally limited by The securities markets of many non-U.S. countries restrictions benefiting senior creditors. If any are relatively small, with a limited number of portfolio company cannot generate adequate cash companies representing a small number of flow to meet senior debt service, clients may suffer industries. Additionally, issuers of non-U.S. a partial or total loss of capital invested. There can securities are often not subject to the same degree
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of regulation as U.S. issuers. Reporting, accounting restructuring issues. If clients do join a creditors’ and auditing standards of non-U.S. countries committee, the participants of the committee differ, in some cases significantly, from U.S. would be interested in obtaining an outcome that standards. Also, nationalization, expropriation or is in their respective individual best interests and confiscatory taxation, currency blockage, market there can be no assurance of obtaining results disruption, political changes, security suspensions most favorable to the clients in such proceedings. or diplomatic developments could adversely affect By participating on such committees, clients may investments in a non-U.S. country. In the event of be deemed to have duties to other creditors nationalization, expropriation or other represented by the committees, which might confiscation, an account or fund could lose its thereby expose the client to liability to such other entire investment in non-U.S. securities. creditors who disagree with the clients’ actions. Significant investments in a particular currency or geographic area may have more exposure to Provision of Managerial Assistance regional economic risks, including weather Clients may obtain rights to participate emergencies and natural disasters, associated substantially in and to influence substantially the with non-U.S. investments. Adverse developments conduct of the management of the issuers in in certain regions can also adversely affect which it makes investments. Clients may securities of other countries whose economies designate directors (and non-executive chairmen) appear to be unrelated. Investments in non-U.S. to serve on the boards of directors of issuers in securities may be subject to withholding and other which they make investments. The designation of taxes imposed by countries outside the U.S., which directors and other measures contemplated could could reduce the return on an investment. expose the assets of a client to claims by an issuer, its security holders and its creditors. The exercise OFAC, FCPA and Related Considerations of control over a company imposes additional Economic sanction laws in the United States and risks of liability for environmental damage, other jurisdictions may prohibit AllianzGI US, its product defects, failure to supervise management, personnel and any account from transacting with violation of governmental regulations and other or in certain countries and with certain types of liability that the limited liability individuals and companies. In some countries, characteristic of business operations usually there is a greater acceptance than in the United ignored. States of government involvement in commercial activities, and of corruption. AllianzGI US and its Political, United Kingdom and European Union Accounts may be adversely affected because of its Market and Regulatory Related Risks unwillingness to participate in transactions that Portfolios that have significant exposure to certain violate such laws or regulations. Such laws and countries can be expected to be impacted by the regulations may make it difficult in certain political and economic conditions within such circumstances for AllianzGI US and its portfolio countries. There is continuing uncertainty around managers to act successfully on investment the future of the euro and the European Union opportunities. In recent years, the U.S. Department (EU) following the United Kingdom’s vote to exit of Justice and the SEC have devoted greater the EU in June 2016. It is expected that the United resources to enforcement of the U.S. Foreign Kingdom’s exit from the EU will take place within Corrupt Practices Act (the “FCPA”). In addition, two years after the United Kingdom formally the United Kingdom has significantly expanded notifies the European Council of its intention to the reach of its anti-bribery laws. Violations of the withdraw. However, there is a significant degree of FCPA or other applicable anticorruption laws or uncertainty about how negotiations relating to the anti-bribery laws could result in, among other United Kingdom’s exit will be conducted, things, civil and criminal penalties, material fines, including the outcome of negotiations for a new profit disgorgement, injunctions on future relationship between the United Kingdom and EU. conduct, securities litigation and a general loss of While it is not possible to determine the precise investor confidence, any one of which could impact these events may have on a portfolio, adversely affect an account’s ability to achieve its during this period and beyond, the impact on the investment objective and/or conduct its United Kingdom, EU countries, other countries or operations. parties that transact with the United Kingdom and EU and the broader global economy could be Participation on Creditors’ Committees significant and could adversely affect the value Clients may participate on committees formed by and liquidity of a portfolio’s investments. In creditors to negotiate the management of addition, if one or more countries were to exit the financially troubled companies that may or may EU or abandon the use of the euro as a currency, not be in bankruptcy or clients may seek to the value of investments tied to those countries or negotiate directly with the debtors with respect to
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the euro could decline significantly and difficulties in valuing and disposing of real estate, unpredictably. the possibility of declines in the value of real estate, risks related to general and local economic The European Union’s Markets in Financial conditions, the possibility of adverse changes in Instruments Directive (Directive 2014/65/EU) the climate for real estate, environmental liability along with its accompanying regulation, the risks, the risk of increases in property taxes and Markets in Financial Instruments Regulation operating expenses, possible adverse changes in (“MiFIR”) (Regulation 600/2014/EU) (which are zoning laws, the risk of casualty or condemnation collectively known as “MiFID II”) took effect on losses, limitations on rents, the possibility of January 3, 2018. MiFID II is a wide ranging piece of adverse changes in interest rates and in the credit legislation that will affect financial market markets and the possibility of borrowers paying off structure, trading and clearing obligations, mortgages sooner than expected, which may lead product governance and investors protections. to reinvestment of assets at lower prevailing While MiFIR and a majority of the so-called “Level interest rates. To the extent a client account 2” measures are directly applicable across the EU invests in REITs, it will also be subject to the risk as EU regulations, the revised MiFID directive must that a REIT will default on its obligations or go be “transposed” into national law by Member bankrupt. By investing in REITs indirectly through States. The transposition process can open the a client account, a shareholder will bear not only door to the act of so-called “gold-plating”, where his or her proportionate share of the expenses of individual Member States and their national the client account, but also, indirectly, similar competent authorities (“NCAs”) introduce expenses of the REITs. A client account’s requirements over and above those of the investments in REITs could cause the client European text and apply MiFID II provisions to account to recognize income in excess of cash market participants that would not otherwise be received from those securities and, as a result, the caught by MiFID II, including U.S. asset managers. client account may be required to sell portfolio NCAs in certain jurisdictions may propose a securities, including when it is not advantageous number of regulatory measures and/or regulatory to do so, in order to make required distributions. positions that may be unclear in scope and application (absent ESMA guidance) resulting in Short Selling Risk confusion and uncertainty. It is impossible to Short sales may be used by a certain client predict how these regulatory positions or accounts for investment and risk management additional governmental restrictions may be purposes, including when AllianzGI US may imposed on market participants (including anticipate that the market price of securities will AllianzGI US) and/or the effect of such restrictions decline or will underperform relative to other on AllianzGI US’s ability to implement a client’s securities held in a client account, or as part of an investment objective. It is also impossible to overall portfolio strategy to minimize the effects of predict the unintended consequences of MiFID II market volatility (i.e., a “market neutral” strategy). on the operation and performance of AllianzGI US Short sales are transactions in which the client or an account, which may be indirectly impacted account sells a security or other instrument (such by changes in market structure and/or regulatory as an option forward, futures or other derivative interpretation. contract) that it does not own. Short exposure with respect to securities or market segments may also Post-reorganization Securities be achieved through the use of derivatives, such as Post-reorganization securities typically entail a futures on indices or swaps on individual higher degree of risk than investments in securities. When a client accounts engages in a securities that have not undergone a short sale on a security, it must borrow the reorganization or restructuring. Moreover, post- security sold short and deliver it to the reorganization securities can be subject to heavy counterparty. The client account will ordinarily selling or downward pricing pressure after the have to pay a fee or premium to borrow particular completion of a bankruptcy reorganization or securities and be obligated to repay the lender of restructuring. If the evaluation of the anticipated the security any dividends or interest that accrue outcome of an investment situation should prove on the security during the period of the loan. The incorrect, clients could experience a loss. amount of any gain from a short sale will be decreased, and the amount of any loss increased, REIT or Real Estate-Linked Derivatives Risk by the amount of the premium, dividends, interest To the extent that a Client Account invests in real or expenses the client account pays in connection estate investment trusts (REITs) or real estate with the short sale. Short sales expose a client derivatives instruments, it will be subject to the account to the risk that it will be required to cover risks associated with owning real estate and with its short position at a time when the securities the real estate industry generally. These include have appreciated in value, thus resulting in a loss
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to the client account. A client account may, to the smaller market capitalizations are magnified for extent permitted by law, engage in short sales investments in micro-cap and ultra micro-cap where it does not own or have the right to acquire companies. Micro-cap companies may be newly the security (or basket of securities) sold short at formed or in the early stages of development, with no additional cost. A client account’s loss on a limited product lines, markets or financial short sale could theoretically be unlimited in a resources and may depend on a few key case where the client account is unable, for employees. Micro-cap stocks typically involve whatever reason, to close out its short position. greater risks of loss and price fluctuations because The use by a client account of short sales in their earnings and revenues tend to be less combination with long positions in its portfolio in predictable and their share prices tend to be more an attempt to improve performance may not be volatile and their markets less liquid than stocks of successful and may result in greater losses or companies with larger market capitalizations. lower positive returns than if the client account Some U.S. micro-cap companies are followed by held only long positions. It is possible that a client few, if any, securities analysts, and there tends to account’s long equity positions will decline in be less publicly available information about such value at the same time that the value of the companies. Their securities generally have even securities underlying its short positions increase, more limited trading securities. Securities issued thereby increasing potential losses to the client by companies with ultra micro-capitalizations account. If the client account is required to return typically exhibit greater volatility than even micro- a borrowed security at a time when other short cap company shares. Accounts may need more sellers are also required to return the same time to purchase or sell its positions in such security, a “short squeeze” can occur, and the securities. Additionally, it may take a long time client account may be forced to purchase the before an account realizes a gain, if any, on an security at a disadvantageous price. In addition, a investment in a micro-cap or ultra micro-cap client account’s short selling strategies may limit company. its ability to fully benefit from increases in the equity markets. Short selling also involves a form Subordinated Debt or Equity Risk of financial leverage that may exaggerate any Certain investments may consist of equity or losses realized by a client account that utilizes subordinated debt securities issued by a private short sales. See “Leveraging Risk.” Also, there is the investment fund that invests, on a leveraged basis, risk that the counterparty to a short sale may fail in bank loans and/or high-yield bonds directly or to honor its contractual terms, causing a loss to a through total rate of return swaps or other credit client account. To the extent a client account seeks derivatives. These investments will be subject to a to obtain some or all of its short exposure by using number of risks, including risks related to the derivative instruments instead of engaging structured products being leveraged. Use of directly in short sales on individual securities, it leverage is a speculative investment technique and will be subject to many of the foregoing risks, as will generally magnify the opportunities for gain well as to those described under “Derivatives Risk” and risk of loss borne by an investor in the equity above. or subordinated debt securities issued by a structured product. Many such private funds Smaller Company Risk contain covenants designed to protect the The general risks associated with investing in providers of debt financing to such structured equity securities risk and liquidity risks are products. A failure to satisfy those covenants could particularly pronounced for securities of result in the untimely liquidation of the structured companies with smaller market capitalizations. product and a complete loss of the clients’ These companies may have limited product lines, investments therein. In addition, if the particular markets or financial resources or they may depend fund is invested in a security in which a client is on a few key employees. Securities of smaller also invested, this would tend to increase that companies may trade less frequently and in lesser client’s overall exposure to the credit of the issuer volume than more widely held securities, and their of such securities, at least on an absolute, if not on values may fluctuate more sharply than other a relative basis. There are certain tax and market securities. They may also trade in the over-the- uncertainties that present risks relating to counter market or on a regional exchange, or may investing in such funds. otherwise have limited liquidity. Companies with medium-sized market capitalizations also have Sustainable Investing Risk substantial exposure to these risks. Environmental performance criteria rate a company’s management of its environmental Accounts investing in micro-cap and ultra micro- challenges, including its effort to reduce or offset cap companies. The general risks associated with the impacts of its products and operations. Social investing in securities issued by companies with criteria measure how well a company manages its
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impact on the communities where it operates, Investments in Trade Claims and high risk including its treatment of local populations, its receivables may also entail special risks including, handling of human rights issues, its commitment but not limited to, fraud on the part of the assignor to philanthropic activities, its record regarding of the trade claim as well as logistical and labor-management relations, anti-discrimination mechanical issues which may affect the ability of policies and practices, employee safety and the the client or its agent to collect the claim in whole quality and safety record of a company’s products, or in part. its marketing practices and any involvement in regulatory or anti-competitive controversies. Turnover Risk Governance criteria address a company’s investor A change in the securities held in an account or relations and management practices, including fund is known as “portfolio turnover.” Higher company sustainability reporting, board portfolio turnover involves correspondingly accountability and business ethics policies and greater expenses to a client, including brokerage practices. In general, the application of the commissions or dealer mark-ups and other portfolio manager’s ESG criteria to investments transaction costs on the sale of securities and will affect an account’s exposure to certain issuers, reinvestments in other securities. Such sales may industries, sectors, regions, and countries; may also result in realization of taxable capital gains, lead to a smaller universe of investments than including short-term capital gains (which are other funds or accounts that do not incorporate taxed as ordinary income when distributed to ESG analysis; and may negatively impact the individual shareholders), and may adversely relative performance of an account depending on impact a client’s after-tax returns. The trading whether such investments are in or out of favor. In costs and tax effects associated with portfolio addition, an account may sell a security based on turnover may adversely affect performance. ESG-related factors when it might otherwise be disadvantageous to do so. Due to its focus on Undervalued Assets Risk investing in companies that the portfolio manager Client may invest in undervalued assets. The believes exhibit strong ESG records, an account identification of investment opportunities in invests in companies that may share common undervalued assets is a difficult task, and there is characteristics, are often subject to similar no assurance that such opportunities will be business risks and regulatory burdens, and whose successfully recognized or acquired. While securities may react similarly to various events investments in undervalued assets offer the and other factors. To the extent it focuses a opportunity for above-average capital significant portion of its assets in a limited appreciation, these investments involve a high number of issuers, sectors, industries or degree of financial risk and can result in geographic regions, an account is further subject substantial losses. Accounts may be forced to sell, to focused investment risk and is more susceptible at a substantial loss, assets that the firm believes to events or factors affecting companies in that are undervalued. In addition, clients may be particular sector, industry or geographic region. required to hold such assets for a substantial See “Focused Investment Risk.” An account may period of time before realizing their anticipated also have focused investment risk to the extent value. During this period, a portion of account that it invests a substantial portion of its assets in would be committed to assets purchased, thus a particular country or geographic region. possibly preventing the account from investing in Prolonged drought, floods, weather, disease and other opportunities. In addition, an account may other natural disasters, as well as war and political finance such purchases with borrowed funds and instability, may significantly reduce the ability of thus will have to pay interest on such funds during companies in such regions to maintain or expand this waiting period. Finally, margin calls and other their operations or their marketing efforts in events related to indebtedness could force an affected countries or geographic regions. See account to have to sell assets at prices that are less “Non-U.S. Investment Risk” and “Emerging than their fair value. Markets Risk.” Value Investing Risk Trade and Other General Unsecured Claims Certain of the strategies may invest in equity Clients may invest in various classes of securities of companies that the portfolio investments that may include claims of trade managers believe are selling at a price lower than creditors and other general unsecured claim their true value (value securities). Companies that holders of a debtor (“Trade Claims”). The issue value securities may have experienced repayment of trade claims is subject to significant adverse business developments or may be subject uncertainties, including potential set-off by the to special risks that have caused their securities to debtor as well as the other uncertainties described be out of favor. If a portfolio manager’s assessment herein with respect to other distressed securities. of a company’s prospects is wrong, or if the market
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does not recognize the value of the company, the volatile than that of companies in more price of its securities may decline or may not established sectors and industries. Due to its focus approach the value that the portfolio manager on the water-related resource sector, investing in anticipates. companies that may share common characteristics, are often subject to similar Water-Related Risk business risks and regulatory burdens, and whose Companies in the water-related resource sector securities may react similarly to various events may be significantly affected by events relating to and other factors. To the extent it focuses a international political and economic significant portion of its assets in any particular developments, water conservation, the success of industry within the water-related resource sector, exploration projects, commodity prices and tax an account is further subject to focused and other government regulations. There are investment risk and is more susceptible to events substantial differences between the water-related, or factors affecting companies in that particular environmental and other regulatory practices and industry. See “Focused Investment Risk.” Accounts policies in various jurisdictions, and any given may also have focused investment risk to the regulatory agency may make major shifts in policy extent that it invests a substantial portion of its from time to time. Other economic and market assets in a particular country or geographic region. developments that may significantly affect Prolonged drought, floods, weather, disease and companies in the water-related resource sector other natural disasters, as well as war and political include, without limitation, inflation, rising instability, may significantly reduce the ability of interest rates, fluctuations in commodity prices, companies in the water-related resource sector to raw material costs and other operating costs, and maintain or expand their operations or their competition from new entrants into the sector. marketing efforts in affected countries or Companies in the water-related resource sector geographic regions. See “Non-U.S. Investment are susceptible to changes in investment in water Risk” and “Emerging Markets Risk.” To the extent purification technology globally, and a slackening accounts invest in companies that derive in the pace of new infrastructure projects in substantial revenues from activities outside the developing or developed countries may constrain water-related resource sector, those investments such companies’ ability to grow in global markets. may be significantly affected by developments in Other reductions in demand for clean water, such other industries in which such companies are as significant decreases in world population or active. See “Equity Securities Risk” and “Market increased availability of potable water in arid Risk.” regions, may reduce demand for certain products and services provided by companies in the water- Other Risks related resource sector. While the water-related To the extent a client account invests primarily in resource sector includes established and mature Funds, Private Funds or other investment vehicles, companies, portions of the sector are newly the risks associated with the account will be developing and strongly influenced by closely related to the risks associated with the technological changes. The sector can be securities and other investments held by the Fund, significantly affected by the level and volatility of Private Fund or investment vehicle, which will be technological change in industries focusing on the described in the fund’s or vehicle’s prospectus or quality or availability of or demand for potable and offering document. The ability of a client account non-potable water. In particular, technological to achieve its investment objective will depend advances can render an existing product, which upon the ability of the funds or other vehicles to may account for a substantial portion of a achieve their investment objectives. The value of a company’s revenue, obsolete. Product client’s account, when investing in funds or development efforts by companies in the sector vehicles, will fluctuate in response to changes in that are focused on developing newer technologies the net asset values of the funds or vehicles in may not result in viable commercial products, and which it invests. The extent to which the such companies in the sector typically bear high investment performance and risks associated with research and development costs, which can limit a client account correlate to those of a particular their ability to maintain operations during periods fund or vehicle will depend upon the extent to of organizational growth or instability. Many which the account’s assets are allocated from time companies in the sector are in the early stages of to time for investment in a fund or vehicle, which operation and may have limited operating will vary. histories and smaller market capitalizations on average than companies in other sectors. As a The foregoing is only a summary of certain risks of result of these and other factors, the value of investing in the securities and instruments that investments in companies in the water-related AllianzGI US uses. Specialized mandates may have resource sector tends to be considerably more particular risks not described above, and you
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should have a full understanding of the risks and beyond the advisers’ control. Actual events applicable to your account before engaging may differ from those assumed. Some important AllianzGI US’s services. Clients are encouraged to factors which could cause actual results to differ consult their own financial advisors and legal and materially from those in any forward-looking tax professionals both initially and periodically statements include changes in interest rates; thereafter in connection with selecting and domestic and foreign business, market, financial engaging the services of an investment manager or legal conditions; differences in the actual for a particular investment strategy. In addition, allocations of the clients’ investments among asset due to the dynamic nature of investments and groups from those assumed herein; the degree to markets, strategies may be subject to additional which the clients’ investments are hedged and the and different risks over time. effectiveness of such hedges, among others. Accordingly, there can be no assurance that Other Investment-Related Information estimated returns or projections can be realized or that actual returns or results will not be materially
lower than those estimated therein. Tax Information (for tax-paying entities)
Clients should also understand that AllianzGI US Additional Disclosure – Derivatives may sell all or a portion of the securities in a Derivatives are financial contracts whose value client’s account, either initially or during the depends on, or is derived from, the value of an course of the client’s participation in any wrap fee underlying asset, reference rate or index. A variety program. Clients are responsible for all tax of derivatives may be available to an account, liabilities arising from these transactions. In depending on the specific type of account and the addition, if the client is not a resident of the United applicable offering documents and/or investment States, the adverse tax consequences and other guidelines. In implementing certain of its risks involved in investing in U.S. securities will be significant investment strategies, AllianzGI US assumed by the client. Furthermore, the client typically uses derivatives as a substitute for taking acknowledges that ordinary income dividends, a position in the underlying asset and/or as part of including distributions of short-term capital gain, a strategy designed to reduce exposure to other paid by certain Mutual Funds to the client who are risks. AllianzGI US may also use derivatives for shareholders may be subject to a United States leverage, in which case their use would involve withholding tax under existing provisions of the leveraging risk. An account’s use of derivative Internal Revenue Service Code of 1986 applicable instruments involves risks different from, or to non-U.S. individuals and entities, unless a possibly greater than, the risks associated with withholding exemption is provided under investing directly in securities and other applicable treaty law. traditional investments. Derivatives are subject to a number of risks described elsewhere in this Clients should understand that AllianzGI US does section, such as liquidity risk, market risk, credit not, and will not, offer tax advice to clients on any risk and management risk, as well as the risks such issues and clients are strongly encouraged to associated with the underlying asset, reference seek the advice of a qualified tax professional. rate or index. Swaps, forwards, futures, options Clients should also understand that AllianzGI US is and other “synthetic” or derivative instruments not responsible for making any tax credit or that are cleared by a central clearing organization, similar claim or any legal filing (including but not which generally are supported by guarantees of limited to proofs of claim) on a client’s behalf. the clearing organization’s members, daily marking-to-market and settlement and Other Sources of Information segregation and minimum capital requirements AllianzGI US may use other sources of information applicable to intermediaries, are still subject to in its investment process not listed in this Item, different risks, including the creditworthiness of such as services that provide historical data on the central clearing organization and its members. individual securities, companies or industry data Derivatives also involve the risk of mispricing or that is gathered from external sources. improper valuation and the risk that changes in the value of the derivative may not correlate Reliance Upon Projections. perfectly with, or may be more sensitive to market The firm may rely upon projections, forecasts or events than, its underlying asset, rate or index. In estimates developed by them or a portfolio that event, hedging transactions entered into for company concerning the portfolio company’s an account might not accomplish their objective future performance and cash flow. Projections, and could result in losses to an account or forecasts and estimates are forward-looking increased losses incurred on a portfolio asset. An statements and are based upon certain Account investing in a derivative instrument could assumptions. Actual events are difficult to predict lose more than the principal amount invested.
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Derivatives are also subject to the risk that the the U.S. dollar by entering into a forward exchange other party to the transaction will not fulfill its contract or currency option to sell an amount of contractual obligations. Also, suitable derivative each foreign currency approximating the value of transactions may not be available in all some or all of the accounts portfolio securities circumstances and there can be no assurance that denominated in such foreign currency. AllianzGI US will engage in these transactions to Alternatively, if the portfolio manager believes that reduce exposure to other risks or otherwise when the U.S. dollar may suffer a substantial decline doing so would be beneficial for a particular against a foreign currency, the account may enter account. Due to continuing regulatory initiatives into a forward exchange contract or currency both in the United States and abroad, derivatives option to buy that foreign currency for a fixed are also subject to enhanced government and dollar amount. Alternatively, AllianzGI US may regulatory risk. choose to maintain foreign currency cash balances in client accounts marked-to-market daily and, if Certain non-U.S. markets are closed, partially possible, invested overnight to earn interest, to closed or severely limited to direct investments by facilitate foreign security settlements. non-residents. Such partially closed markets may lead to price distortions where "foreign" shares and Additional Disclosure – “Foreign” Securities ADRs trade at prohibitive premiums to the local AllianzGI US accepts investment mandates from underlying shares. In order to achieve the liquidity its clients that either require, to varying degrees, and economic performance of the local shares investment in “foreign” securities or that restrict without subjecting the investor to the such investments. Sometimes different requirements/restrictions associated with geographical terms are used for these purposes purchases of local shares, and when ADRs are not (e.g., “non-U.S. securities”, “European” securities, available or exhibit similar limitations, AllianzGI “emerging markets,” etc.). The globalization and US may invest client accounts in equity linked integration of the world economic system and products, also known as “equity linked notes”, related financial markets have made it “participation notes,” "zero-strike warrants" or increasingly difficult to define issuers "low-exercise warrants." Created by brokers- geographically. Accordingly, and unless otherwise dealers to facilitate trading in non-U.S. markets, specifically agreed to in writing with individual these instruments (derivatives by technical clients, AllianzGI US intends to construe definition) are U.S. dollar denominated, trade geographic terms such as “foreign,” “non-U.S.,” over-the-counter and on recognized exchanges “European” and “emerging markets” in the and may settle Euroclear. The purchase price manner that affords to AllianzGI US the greatest typically represents the underlying equity price flexibility in seeking to achieve the investment translated into U.S. dollars plus an up-front fee. objective(s) of its investment advisory clients. The sale price typically represents the underlying Specifically, in circumstances where the equity price translated into U.S. dollars minus any investment advisory mandate is to invest (a) taxes. Therefore, AllianzGI US believes these exclusively in “foreign securities,” “non-U.S. instruments are functionally equivalent to holding securities” “international securities,” “European the local shares and provide significant cost securities,” “emerging markets” (or similar advantages to purchasing ADRs in those markets. directions) or (b) at least some percentage of the client’s assets in foreign securities, etc., AllianzGI AllianzGI US may, in certain market conditions, US will take the view that a security meets this invest eligible client accounts with international description so long as the issuer of a security is exposure in forward currency contracts or tied economically to the particular country or currency options to protect the accounts against geographic region indicated by words of the currency movements. Forward currency contracts relevant investment mandate (the “Relevant are obligations to purchase or sell a specific Language”). For these purposes the issuer of a quantity of a foreign currency at the current "spot" security is deemed to have such a connection if: price, with delivery and settlement at some specified future date, individually negotiated and (i) the issuer is organized under the laws of privately traded by traders and their customers. the country or a country within the For example, an account may do a "transaction geographic region suggested by the hedge" where it enters into a forward currency Relevant Language or maintains its contract in order to "lock in" the U.S. dollar price of principal place of business in that the security when it buys or sells a foreign- country or region; or denominated security. Or, an account may enter into a "position hedge" if AllianzGI US believes that (ii) the securities are traded principally in a particular foreign currency or group of the country or region suggested by the currencies may suffer a substantial decline against Relevant Language; or
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ITEM 9. DISCIPLINARY INFORMATION (iii) the issuer, during its most recent fiscal year, derived at least 50% of its revenues To the best of AllianzGI US’s knowledge, there are or profits from goods produced or sold, no legal or disciplinary events that are material to investments made, or services performed a client’s or prospective client’s evaluation of or in the country or region suggested by the the integrity of AllianzGI US. Relevant Language or has at least 50% of its assets in that country or region. ITEM 10. OTHER FINANCIAL INDUSTRY In addition, AllianzGI US intends to look through ACTIVITIES AND AFFILIATIONS private and registered investment companies for these purposes and to treat derivative securities AllianzGI US is registered with the Commodity (e.g., equity linked notes) by reference to the Futures Trading Commission (“CFTC”) as a underlying security. Conversely, if the investment commodity pool operator and a commodity advisory mandate limits the percentage of assets trading advisor. In this regard, certain employees that may be invested in “foreign securities,” etc. or of AllianzGI US are registered as associated prohibits such investments altogether, AllianzGI persons with the National Futures Association to US may categorize securities as “foreign,” etc. only the extent necessary or appropriate to perform if the security possesses all of the attributes their responsibilities. described above in clauses (i), (ii) and (iii). AllianzGI US is owned by Allianz Global Investors Mutual Funds U.S. Holdings LLC, a Delaware limited liability AllianzGI US has entered into agreements with the company. Allianz Global Investors U.S. Holdings Sub-Advisers for the AllianzGI Funds pursuant to LLC is a wholly owned subsidiary of Allianz Asset which the Sub-Advisers are required to manage Management of America L.P., a Delaware limited their respective Funds in accordance with the liability company. Allianz Asset Management of Fund’s investment objective, principal America L.P. is indirectly owned by Allianz SE, a investments and strategies, and principal risks as diversified global financial institution that directly set forth in the Fund’s Prospectus and Statement of or indirectly owns other asset management firms Additional Information. How or whether a that compete with AllianzGI US and its managed particular Fund utilizes an investment strategy, funds and accounts, including, Pacific Investment technique or instrument should not be inferred Management Company LLC (“PIMCO”). Through from how or whether other Funds utilize the same this ownership structure and through other investment strategy, technique or instrument. entities owned by AllianzGI US’s direct and Some Funds are subject to capitalization criteria indirect owners, AllianzGI US has various financial and percentage investment limitations. Detailed industry affiliations, some of which are described information regarding each Fund’s investment below. objective, principal investments and strategies, and principal risks can be found in the Fund’s AllianzGI US is part of Allianz Global Investors. Prospectus and Statement of Additional Allianz Global Investors is the marketing name for Information. a global asset management business that operates through affiliated entities throughout the world. The value of an investment in a Fund changes with Those affiliated entities include Allianz Global the values of that Fund’s investments. Many Investors Distributors LLC (“AGID”), an SEC- factors can affect those values. The factors that are registered broker-dealer. most likely to have a material effect on a particular Fund’s portfolio as a whole are called the As a result of AllianzGI US’s investment “principal risks.” The principal risks of each Fund management activities and the investment are set forth in the Prospectus and Statement of management and other business activities of the Additional Information for the Fund. firms’ affiliates and their officers and employees in the financial markets, AllianzGI US may, from time Private Funds to time, be precluded under applicable law from An investment in a Private Fund involves a high buying a particular security for client accounts or degree of risk. There can be no assurance that a selling all or a portion of a security position held in Private Fund’s return objectives will be realized or client accounts. While AllianzGI US believes that that there will be any return of capital. An investor the inability to buy or sell a particular security is may lose part or all of its capital. Please refer to a unlikely to occur, it could have a detrimental effect Private Fund’s offering memorandum for a on client accounts. detailed discussion of risks.
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AGID is a limited-purpose broker-dealer which coordinates its activities with certain other Allianz serves as the distributor and principal underwriter investment management businesses. These to certain funds affiliated with AllianzGI US and businesses include Allianz Global Investors GmbH, funds for which AllianzGI US provides advisory or Allianz Global Investors Japan Co. Ltd., Allianz sub-advisory services. AllianzGI US makes Global Investors Singapore Limited and Allianz payments to AGID pursuant to a service level Global Investors Asia Pacific Limited. (collectively, agreement for sales and administrative services. the “Allianz Advisory Affiliates”). Each of the AGID may also serve as the placement agent for Allianz Advisory Affiliates is directly or indirectly a certain Private Funds managed by AllianzGI US. wholly-owned subsidiary of Allianz SE. Certain Certain of AllianzGI US’s officers, portfolio corporate services such as information managers and other personnel are registered technology, business systems, human resources, representatives of AGID to the extent necessary or legal and finance are provided to AllianzGI US by appropriate to perform their responsibilities. Allianz Asset Management of America L.P.
AllianzGI US is also related, through common AllianzGI US may, from time to time, manage ownership or otherwise, to PIMCO Investments assets for Allianz SE and other direct and indirect LLC, an SEC-registered broker-dealer; and PIMCO, equity holders in Allianz Asset Management of Allianz Investment Management LLC, and Allianz America L.P. AllianzGI US may also provide Capital Partners of America LLC, each an SEC- investment management services to affiliated registered investment adviser. insurance companies, including insurance companies owned or controlled by Allianz SE. AllianzGI US is related, through common These amounts may from time to time be material ownership or otherwise, to a number of non-U.S. to AllianzGI US’s investment advisory business. investment advisers, including (but not limited to) Allianz Global Investors GmbH, Allianz Global Certain clients may have established custodial or Investors Asia Pacific Ltd, Allianz Global Investors sub-custodial arrangements with non-U.S. banks Japan Co. Ltd., risklab GmbH, Allianz Global or other financial institutions that are affiliated or Investors Singapore Ltd, and Allianz Global related to AllianzGI US or its affiliates. However, Investors Taiwan Ltd. AllianzGI US may act as sub- there are no such relationships that would provide adviser to accounts advised by certain of the advisory personnel with possession of or access to related non-U.S. advisers. Clients’ fees are client assets such as would AllianzGI US a allocated between AllianzGI US and the non-U.S. custodian of its client assets. affiliate with reference to relevant U.S. and non- U.S. tax laws and considerations based upon the AllianzGI US may delegate investment types of services provided in the relevant management-related responsibilities (such as jurisdiction. client servicing activities) to its affiliates and may pay a portion of its investment management fee to Allianz and all of its direct and indirect such affiliates. subsidiaries (other than AllianzGI US), including those listed above, are referred to herein as the AllianzGI US is also related to the following “Allianz Affiliates.” The Allianz Affiliates may be entities: registered as investment advisers and/or broker- dealers with the SEC or other foreign regulatory Allianz Funds (“Allianz Funds”) authorities. AllianzGI US may act as investment AllianzGI US is the portfolio manager of certain adviser to one or more Allianz Affiliates on either a series of Allianz Funds, an open-end management discretionary or non-discretionary basis, and may investment company. AllianzGI US serves as serve as a sub-adviser for accounts or clients for investment adviser and administrator to the which one or more Allianz Affiliates serve as Allianz Funds. investment manager or investment adviser. AllianzGI US also may share employees with or Allianz Funds Multi-Strategy Trust (“Allianz provide other services to the Allianz Affiliates. Trust”) Similarly, AllianzGI US may receive services, AllianzGI US is the portfolio manager of certain including but not limited to investment advisory series of the Allianz Funds Multi-Strategy Trust, an services, from certain Allianz Affiliates. For open-end management company. AllianzGI US example, in the areas of legal and compliance, risk serves as investment adviser and administrator to management, human resources, finance, the Allianz Trust. information technology, trade support and sales and marketing, services are provided or received Premier Multi-Series VIT (“Premier Trust”) and employees are shared between AllianzGI US AllianzGI US is the portfolio manager of certain and various Allianz Affiliates. AllianzGI US series of the Premier Trust, an open-end
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management company. AllianzGI US serves as Equity 350 LLC, AllianzGI Structured Alpha U.S. investment adviser and administrator to the Equity 500 LLC, AllianzGI Structured Alpha Global Premier Trust. Equity 500 LLC, AllianzGI Structured Alpha Global Equity 350 LLC, AllianzGI Structured Alpha U.S. AllianzGI Institutional Multi-Series Trust (“Allianz Fixed Income 250 LLC, AllianzGI Structured Alpha Institutional Trust”) 1000 LLC, AllianzGI Structured Alpha 1000 Plus AllianzGI US is the portfolio manager of certain LLC, AllianzGI Structured Alpha Multi-Beta Series series of the Allianz Institutional Trust, an open- LLC I and AllianzGI Structured Alpha Large Cap end management company. AllianzGI US serves as Equity 350 L.P., a Delaware limited investment adviser and administrator to the partnership. These Private Funds are privately Allianz Institutional Trust. offered and are exempt from registration under the Securities Act and the Investment Company AllianzGI Convertible & Income Fund (“NCV”) Act. In addition, AllianzGI Structured Alpha 1000 AllianzGI US is the portfolio manager of NCV, a Plus Ltd. is a Cayman Islands domiciled fund that closed-end management company. AllianzGI US serves as a feeder fund to AllianzGI Structured serves as investment adviser to NCV. Alpha 1000 Plus LLC.
AllianzGI Convertible & Income Fund II (“NCZ”) AllianzGI Managed Futures LLC AllianzGI US is the portfolio manager of NCZ, a AllianzGI US is the investment manager and closed-end management company. AllianzGI US managing member of AllianzGI Managed Futures serves as investment adviser to NCZ. LLC, a Delaware limited liability company. AllianzGI US provides or arranges for the provision of certain financial and AllianzGI Equity & Convertible Income Fund administrative services and oversees fund (“NIE”) accounting for the AllianzGI Managed Futures AllianzGI US is the portfolio manager of NIE, a LLC. The Private Fund is privately offered and is closed-end management company. AllianzGI US exempt from registration under the Securities Act serves as investment adviser to NIE. and the Investment Company Act.
AllianzGI NFJ Dividend, Interest & Premium AllianzGI Global Dynamic Allocation LLC Strategy Fund (“NFJ Fund”) AllianzGI US is the investment manager and AllianzGI US is a portfolio manager of NFJ Fund, a managing member of AllianzGI Global Dynamic closed-end management company. AllianzGI US Allocation LLC, a Delaware limited liability serves as investment adviser to NFJ Fund. company. AllianzGI US provides or arranges for the provision of certain financial and administrative AllianzGI Diversified Income & Convertible Fund services and oversees fund accounting for the (“ACV”) AllianzGI Global Dynamic Allocation LLC. The AllianzGI US is the portfolio manager of ACV, a Private Fund is privately offered and is exempt closed-end management company. AllianzGI US from registration under the Securities Act and the serves as investment adviser to ACV. Investment Company Act.
The above referenced funds for which AllianzGI US US Short Duration High Yield Bond Fund serves as investment adviser shall be collectively AllianzGI US is the investment manager of the US known as the AllianzGI Funds. Information about Short Duration High Yield Bond Fund, a Cayman how to buy, sell (redeem) and exchange shares of Islands domiciled fund. AllianzGI US provides or each fund is set forth in the Prospectus and/or arranges for the provision of certain financial and Statement of Additional Information for each fund. administrative services and oversees fund accounting for the US Short Duration High Yield AllianzGI Structured Alpha Funds Bond Fund. AllianzGI US is the investment manager and managing member of various AllianzGI Structured AllianzGI Emerging Markets Consumer LLC Alpha funds, each a Delaware limited liability AllianzGI US is the investment manager of the company except as otherwise noted below. AllianzGI Emerging Markets Consumer LLC, a AllianzGI US provides or arranges for the provision Delaware limited liability company. AllianzGI US of certain financial and administrative services provides or arranges for the provision of certain and oversees fund accounting for the AllianzGI financial and administrative services and oversees Structured Alpha Funds. The AllianzGI Structured fund accounting for the AllianzGI Emerging Alpha Funds include AllianzGI Structured Alpha Markets Consumer LLC. The Private Fund is 500 LLC, AllianzGI Structured Alpha U.S. Equity 250 privately offered and is exempt from registration LLC, Allianz GI Structured Alpha Emerging Markets
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under the Securities Act and the Investment AllianzGI US in the U.S. In such cases, risklab will Company Act. operate as a Participating AllianzGI Affiliate (as defined below). AllianzGI International Small-Cap Opportunities LLC risklab may act as investment adviser to one or AllianzGI US is the investment manager of the more of AllianzGI US's affiliates, and may provide AllianzGI International Small-Cap Opportunities advice for the benefit of accounts or clients for LLC, a Delaware limited liability company. which AllianzGI US or one of its affiliates serves as AllianzGI US provides or arranges for the provision investment manager or investment adviser. of certain financial and administrative services Further, risklab may recommend to its clients and oversees fund accounting for the AllianzGI securities that are the subject of recommendations International Small-Cap Opportunities LLC. The to, or discretionary trading on behalf of, AllianzGI Private Fund is privately offered and is exempt US’s clients. from registration under the Securities Act and the Investment Company Act. Services to and from Affiliates The Allianz Advisory Affiliates share proprietary AllianzGI Emerging Markets Small Cap LLC research and information developed by each of AllianzGI US is the investment manager of the those entities. AllianzGI US and the Allianz AllianzGI Emerging Markets Small Cap LLC, a Advisory Affiliates may attempt to make a good Delaware limited liability company. AllianzGI US faith allocation of the costs incurred in creating provides or arranges for the provision of certain such research, and to apportion such costs among financial and administrative services and oversees the offices receiving access to such research. fund accounting for the AllianzGI Emerging Alternatively, some or all of the cost of such Markets Small Cap LLC. The Private Fund is research may be borne exclusively by the affiliate privately offered and is exempt from registration creating the research. under the Securities Act and the Investment Company Act. In addition, AllianzGI US acquires investment information and research services from broker- dealers, including information used in reports AllianzGI China A Shares LLC ® AllianzGI US is the investment manager of the prepared by AllianzGI US's Grassroots Research AllianzGI China A Shares LLC, a Delaware limited group. (See response to Item 12 below.) One or liability company. AllianzGI US provides or more of the Allianz Advisory Affiliates also may arranges for the provision of certain financial and acquire similar research information from broker- administrative services and oversees fund dealers. AllianzGI US and the Allianz Advisory accounting for the AllianzGI China A Shares Affiliates expect to share such research, and will LLC. The Private Fund is privately offered and is use any such shared research for the benefit of exempt from registration under the Securities Act their clients. and the Investment Company Act. To the extent permissible under all appropriate laws, including federal securities and banking U.S. Private Credit Solutions Funds laws, AllianzGI US may, from time to time, execute AllianzGI US is the investment manager of SHP brokerage transactions through, or have Capital Solutions Fund L.P. and Sound Harbor investment advisory relationships with, any of the Credit Solutions Fund II L.P., each a Delaware Allianz Affiliates. AllianzGI US will not execute limited partnership. AllianzGI US provides or brokerage transactions through any of the Allianz arranges for the provision of certain financial and Affiliates without the consent of the clients administrative services and oversees fund involved in such transactions. In addition, accounting for the U.S. Private Credit Solutions AllianzGI US and the Allianz Affiliates do not act as funds. These Private Funds are privately offered principal in connection with transactions for and are exempt from registration under the AllianzGI US clients. The Allianz Affiliates also may Securities Act and the Investment Company Act . provide, for a fee, custodial, insurance or other services to certain of AllianzGI US’s clients or risklab GmbH ("risklab") portfolio companies owned by the Private Funds. risklab is an affiliate of AllianzGI US. risklab is not an SEC-registered investment adviser, but is AllianzGI US has also entered into referral registered with Bundesanstalt für agreements with certain of its affiliates, including Finanzdienstleistungsauf-sichtt (www.bafin.de) as Allianz Global Investors Distributors LLC, pursuant a provider of financial services in Germany. to which AllianzGI US has agreed to compensate risklab may provide risk management and such affiliates with respect to client solicitation strategic and dynamic asset allocation solutions to activities on behalf of AllianzGI US in accordance support the investment advisory activities of
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with Rule 206(4)-3 under the Advisers Act . As typically selects Sub-Advisers that are affiliated compensation for introducing new client accounts with AllianzGI US. AllianzGI US may also work to AllianzGI US, such affiliates may receive a with a Sponsor to select non-affiliated sub- portion of the management fee generated by the advisers where the Sponsor seeks to provide the accounts. strategies of multiple sub-advisers as part of a multi-disciplinary strategy that also includes In rendering investment advisory services to its affiliated Sub-Advisers. In such cases, AllianzGI US clients, including U.S. registered investment acts as the non-discretionary overlay manager to companies, AllianzGI US may use the resources of the Sponsor. some of the Allianz Advisory Affiliates (“Participating AllianzGI Affiliates”) to provide Selection of affiliated Sub-Advisers may pose a certain services, including portfolio management, conflict of interest in that AllianzGI US and its proxy voting, research and trading services, to affiliated Sub-Advisers may retain a greater AllianzGI US clients. Under collaboration portion of the wrap fee than if AllianzGI US had agreements, each of the Participating AllianzGI used unaffiliated sub-advisers. AllianzGI US Affiliates and any of their employees who provide manages this conflict through disclosure to clients services to clients of AllianzGI US are considered in this brochure. "associated persons" of AllianzGI US as that term is defined in the Advisers Act. The Participating Investments in Different Parts of an Issuer’s AllianzGI Affiliates have agreed to submit to the Capital Structure jurisdiction of the SEC and to the jurisdiction of the U.S. courts for actions arising under the U.S. Clients may invest in different layers of the capital securities laws in connection with the investment structure of a portfolio company, issuer or advisory services they provide for any AllianzGI US borrower. For example, a client (i) may own debt clients. of a portfolio company, issuer or borrower while another client owns equity in the same portfolio Selection of Other Investment Advisers company, issuer or borrower, (ii) may own debt of a portfolio company, issuer or borrower while Mutual Funds, Closed End Funds and Fund of another client owns a different tranche or other Funds class or issue of debt of the same portfolio AllianzGI US selects the Sub-Advisers for the company, issuer or borrower and/or (iii) may own AllianzGI Funds. AllianzGI US may engage equity of a portfolio company, issuer or borrower affiliated and non-affiliated sub-advisers to while another client owns a different equity manage the day-to-day portfolio management security of the same portfolio company, issuer or activities of the AllianzGI Funds. The selection of borrower. Furthermore, a client may participate in the Sub-advisers is made in conjunction with the debt originated to finance the acquisition by other development of new funds and is overseen by clients of an equity or other interest in a portfolio Allianz Global Investors U.S. Holdings LLC’s company, issuer or borrower. To the extent a Executive Committee. In determining whether to reorganization or other major corporate event authorize a new fund, the Executive Committee occurs with respect to such portfolio company, considers, among other things, the viability of the issuer or borrower, conflicts may exist between investment opportunity presented by the new fund such client and other clients. and the ability of AllianzGI US and the Sub-Adviser to appropriately staff the fund from an investment AllianzGI US will seek to resolve such conflicts of and operational perspective. The Board of Trustees interest in a fair and equitable manner based on of the relevant Fund ultimately must approve the the circumstances of particular situations. As a new fund. result of the various conflicts and related issues described above and the fact that conflicts will not necessarily be resolved in favor of the interests of AllianzGI US has a conflict of interest in selecting particular clients, clients could sustain losses its affiliated advisers as Sub-Advisers because during periods in which other client accounts AllianzGI US and its affiliates retain the fees. achieve profits generally or with respect to AllianzGI US manages this conflict through particular holdings in the same issuer, or could disclosure and, at times, AllianzGI US may waive or achieve lower profits or higher losses than would cap certain of its fees. have been the case had the conflicts described above not existed. Managed Accounts/Wrap Programs AllianzGI US selects the Sub-Advisers to provide model portfolios for Wrap Programs. For discretionary Wrap Programs, AllianzGI US
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ITEM 11. CODE OF ETHICS, PARTICIPATION OR securities transactions for its client accounts INTEREST IN CLIENT TRANSACTIONS AND through an Allianz Affiliate acting as broker or PERSONAL TRADING agent. (See also response to Item 12.)
Code of Ethics AllianzGI US clients may purchase shares of one or AllianzGI US has adopted a Code of Ethics (“Code”) more series of the AllianzGI Funds for which pursuant to Rule 204A-1 under the Advisers Act. AllianzGI US serves as sub-adviser. (See response AllianzGI US’s partners, officers, directors, to Item 10 above.) Each of the funds pays a employees, interns and temporary employees management fee to its administrator and (collectively, “Covered Persons”) are required to investment adviser, AllianzGI US. These fees are follow the Code, which sets out rules regarding paid exclusively by AllianzGI US and not directly by personal securities transactions that are designed the shareholders of the funds. Fees under the to address or mitigate potential conflicts of agreements are payable at annual rates expressed interest and to minimize any potential appearance as a percentage of the average daily net asset value of impropriety. The Code covers personal of each fund. The distributor for the AllianzGI securities transactions of all Covered Persons (as Funds is AGID. defined in the Code) and their immediate family members, which includes most persons sharing As applicable for certain clients for which the same household as the Covered Person and AllianzGI US charges an asset-based management other individuals for whom the Covered Person fee, if AllianzGI US has either recommended the provides significant economic support. purchase or has the discretion to use client assets to purchase shares of one or more mutual funds Although the Code permits Covered Persons to (including the AllianzGI and PIMCO Funds) or trade in securities for their own accounts, Covered other pooled vehicles that charge a separate Persons are subject to preclearance procedures, advisory fee, AllianzGI US will generally reduce the reporting requirements, and other provisions that assets managed or advised by AllianzGI US by the restrict personal trading as Covered Persons may value of the investments in such funds or pooled trade in securities for their own accounts that are vehicles prior to the calculation of the individual recommended to and/or purchased by clients. In investment management fees. Other these circumstances, there is a possibility that the methodologies may be applied as otherwise Covered Person may benefit from market activity agreed with the client. In some circumstances, no within a client account. such reduction or credit is provided, such as in cases where a separate account’s assets are Personal securities transactions by Covered invested in a fund or pooled vehicle that does not Persons are monitored for compliance with the charge an advisory fee (and the only advisory fees Code and any Covered Person who violates the charged to the client are charged at the account Code may be subject to remedial actions, level). It should be noted that the management fee including, but not limited to: a letter of caution, charged by a registered mutual fund (including warning or censure, recertification of the Code, the AllianzGI and PIMCO Funds and funds disgorgement of profits, suspension of trading recommended by AllianzGI US) or an unregistered privileges, termination of officer title, and/or pooled vehicle may exceed the standard fee suspension or termination of employment. normally charged by AllianzGI US to its individual Covered Persons are required to annually certify clients. Potential participants should review compliance with the Code. closely each fund’s prospectus. Specific written authorization designed to comply with the AllianzGI US will provide clients and prospective Employee Retirement Income Security Act clients with a copy of the Code upon request. Prohibited Transaction Exemption 77-4 is required from a separate non-affiliated fiduciary of Participation or Interest in Client Transactions employee benefit plans participating in any series If permitted by a particular client’s investment of AllianzGI or PIMCO Funds. objectives, guidelines, and restrictions, and applicable law and regulations, AllianzGI US may As described above, AllianzGI US also recommends recommend that a client purchase, or use its and offers membership interests to clients in discretion to effect a client purchase of securities certain Private Funds. AllianzGI US typically does offered in either a public or private underwriting not use its investment discretion to place separate where an Allianz Affiliate is acting in the capacity account client assets in affiliated Private Funds. of a manager, underwriter, or placement agent. Clients are required to complete subscription agreements and qualify for such investments. Consistent with its duty to seek best execution, Please refer also to Item 5 Fees and Compensation AllianzGI US may from time to time effect for information pertaining to investment in or
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recommendation to invest in shares or other and investment opportunities, as discussed in interests in certain funds to which AllianzGI US or Item 12 below. its related persons provide investment advice or Potential conflicts of interest may also arise in other services, and from which AllianzGI US and its connection with an employee’s or an employee of affiliates receive advisory, administrative and/or distribution fees. an Allianz Advisory Affiliate’s knowledge and about the timing of transactions, investment
opportunities, broker selection, portfolio holdings AllianzGI US provides investment management and investments. Some such employees who have services to certain investment companies, as access to the size and timing of transactions may described above. AllianzGI US may have authority have information concerning the market impact of to invest some or all of a client’s assets in one or transactions. Such employees may be in a position more of such investment companies, to the extent to use this information to their possible advantage consistent with applicable law. Because the fees received by AllianzGI US from these investment or to the possible detriment of our other client accounts. We manage these potential conflicts companies may, in some cases, be greater than the with employee transactions by requiring that any fees otherwise paid by clients, AllianzGI US may transaction be made in compliance with our Code have an incentive to advise clients to invest in such of Ethics. investment companies. As a result, AllianzGI US may have a conflict of interest with respect to such While some of our accounts, including those that recommendations. pay performance-related fees, may short securities held long by our accounts or obtain similar AllianzGI US provide services to a number of exposures through the use of derivatives, the different clients and accounts. We may give advice particular portfolio managers responsible for the and take action with respect to any client or accounts generally do not manage accounts that accounts that may differ from action taken on would enter into short positions in securities held behalf of other clients or accounts. AllianzGI US is long by other accounts they manage. not obligated to recommend, buy or sell, or to Nevertheless, there may be instances where a refrain from recommending, buying or selling, any client of ours enters into short positions for a security that our employees may buy or sell for security, or obtains exposures to the security, held their own account or for the accounts of any other long by another client, which could impact the client. AllianzGI US manages conflicts with our price of the security. See Item 6 above. employees investing for their accounts by requiring that any transaction be made in AllianzGI US may also have a conflict of interest compliance with our Code of Ethics, as discussed with respect to advisory client’s investment in above. certain third party private investment funds. (See Item 10 above.) Because AllianzGI US manages more than one account, potential conflicts of interest may arise The Allianz Affiliates may provide a variety of related to the amount of time individuals devote to brokerage and other services to a broad range of managing particular accounts. AllianzGI US may clients, including issuers of securities that also have an incentive to favor accounts in the AllianzGI US may recommend for purchase or sale allocation of investment opportunities or by clients. In the course of providing these services, otherwise treat preferentially those accounts that the Allianz Affiliates may come into possession of pay us a performance-related fee, or a higher fee material, non-public information. However, such level or greater fees overall. AllianzGI US has material, non-public information ordinarily will adopted procedures designed to ensure allocation not be disclosed to AllianzGI US or its employees. of portfolio transactions and investment The Allianz Affiliates have installed procedures opportunities across multiple client accounts on a intended to prevent the sharing of confidential fair and equitable basis over time. See Item 6 information concerning issuers by its brokerage, above and Item 12 below. investment management and other operations. Such confidential information, if obtained, will not Conflicts of interest may also arise in connection be used as a factor in making investment decisions with an investment opportunity that may be for the portfolios of AllianzGI US's clients. suitable for multiple accounts we manage, but not in sufficient quantities for all accounts to AllianzGI US believes that the nature and range of participate fully. Similarly, there may be limited clients to whom the Allianz Affiliates render opportunity to sell an investment held by multiple brokerage and other services is such that it would accounts. We manage potential conflicts between be inadvisable to exclude these companies from a client accounts through our procedures for client’s portfolio solely on the basis of their aggregating and allocating portfolio transactions relationship with the Allianz Affiliates.
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Accordingly, except to the extent prohibited by regarding the type and timing of transactions, law, AllianzGI US will not, as a matter of policy, including certain trading prohibitions, and pre- refrain from initiating purchases or sales of any approval and monitoring by the AllianzGI US Code security as to which the Allianz Affiliates provide, of Ethics Office. To the extent AllianzGI US brokerage or other services, or as to which the determines that there is no conflict of interest, Allianz Affiliates possess material, non-public Covered Persons of AllianzGI US from time to time information. As a result, subject to each client’s may engage in outside business activities. investment objectives, guidelines and restrictions, it is likely that client holdings will, from time to AllianzGI US, its Covered Persons and its affiliates time, include the securities of issuers for whom may give advice and take action in the the Allianz Affiliates provide brokerage and other performance of their duties for some clients that services. AllianzGI US also may purchase or sell for may differ from advice given, or the timing or one or more client portfolios the securities of nature of actions taken, for other clients or for companies in which an Allianz Affiliate makes a their seed capital or personal accounts. market, or in which AllianzGI US, the Allianz Affiliates, or any of their employees have positions. Subject to the restrictions described above, AllianzGI US and its Covered Persons may at any To meet applicable regulatory requirements, there time hold, acquire, increase, decrease, dispose of may be periods during which AllianzGI US may not or otherwise deal with positions in investments in be permitted to recommend or effect certain types which a client account may have an interest from of transactions in the securities of companies for time to time. AllianzGI US has no obligation to which an Allianz Affiliate is performing brokerage acquire for a client account a position in any or other services. This may result in AllianzGI US security which it acquires on behalf of another being unable to recommend or effect transactions client, or which a Covered Person acquires for his at a time when it might otherwise be advisable to or her own account. Likewise, client accounts shall do so. not have first refusal, co-investment or other rights in respect of any such investment. All of the transactions described above involve the potential for conflict of interest between AllianzGI Participation or Interest in Personal Trading – US or the Allianz Affiliates and clients of AllianzGI Client Trading US. The Advisers Act of, the Investment Company AllianzGI US permits its Covered Persons to engage Act and ERISA impose certain requirements in personal securities transactions, and to designed to decrease the possible effects of purchase and sell securities that may be held by or conflicts of interest between an investment adviser may be suitable for investment by client accounts. and its clients. In some cases, transactions may be Personal securities transactions may raise permitted subject to fulfillment of certain potential conflicts of interest with the interests of conditions. In other cases, transactions may be AllianzGI US clients. Accordingly, AllianzGI US has prohibited. AllianzGI US seeks to ensure that adopted a Code of Ethics which is designed to potential or actual conflicts of interest are mitigate conflicts of interest and the potential appropriately resolved, taking into consideration appearance of impropriety in a Covered Person’s the overriding best interests of the client. personal actions. The Code of Ethics requires, among other things, advance approval of certain Participation or Interest in Personal Trading – purchases or sales of securities by its Covered Client Recommendations Persons. The Code of Ethics does not require AllianzGI US and its Covered Persons may invest in advance approval for investment in certain highly securities for their personal accounts that are also liquid securities issued by the U.S. Government or recommended to AllianzGI US clients. Potential certain foreign governments, bankers’ conflicts may arise in this situation because acceptances, bank certificates of deposit, AllianzGI US or its Covered Person may have a commercial paper, shares of registered open-end material interest in or relationship with the issuer investment companies, and certain other types of of a security or may use knowledge about pending investment vehicles. or currently considered securities transactions for clients to profit personally. To address these To ensure compliance with the pre-trading potential conflicts, Covered Persons deemed to be authorization requirement, each AllianzGI US “Access Persons” under the Code are required to Covered Person deemed an “Access Person” is report brokerage and trading accounts to AllianzGI required to instruct each broker-dealer with US upon hire, upon a change from Non-Access whom he or she maintains an account to send Person to Access Person, at the time a new account directly to AllianzGI US a duplicate copy of all is opened and annually. In addition, personal transaction confirmations generated by that securities transactions are subject to limitations broker-dealer for that Covered Person’s account.
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These confirmations or other relevant records are subject to the requirements in the Code of Ethics. then cross-checked against the pre-trading Similarly, the Allianz Affiliates may purchase, hold, authorization forms submitted by that Covered or sell securities that are recommended for Person. purchase or sale in AllianzGI US client accounts. The Allianz Affiliates are not subject to the AllianzGI US’s Code of Ethics restricts the purchase AllianzGI US Code of Ethics, and therefore may be and sale by its Covered Persons (and certain purchasing or selling a security at the same time entities in which such Covered Person may have a that AllianzGI US is purchasing or selling that beneficial interest) for their own accounts of security on behalf of one or more clients. AllianzGI securities which have been or are being US and the Allianz Affiliates coordinate the considered for purchase for client accounts. Except preclearance of securities to prevent conflicts of under certain limited circumstances, Covered interest. Persons are not to engage in a transaction in the same security (or a security equivalent) while an The Allianz Affiliates also have adopted procedures order for a client’s account is pending or within a designed to mitigate conflicts of interest and the certain period of time before and after execution of potential appearance of impropriety in employee the transaction in that security (or a security personal trading. The nature and timing of actions equivalent) on behalf of the client. The applicable taken by one or more of AllianzGI US’s Covered time period will vary, depending on the Covered Persons or by one or more of the Allianz Affiliates, Person’s job responsibilities. either for their own accounts or for the accounts of clients, may differ from the nature and timing of AllianzGI US performs investment management actions taken by AllianzGI US for client accounts. and investment advisory services for various Because the Code of Ethics places restrictions on clients, many of whom may have differing when Covered Persons can trade certain securities, investment objectives, guidelines, and restrictions. the price received by AllianzGI US’s clients in a As a result, AllianzGI US may give advice and take securities transaction will most likely be different action in the performance of its duties for a than the price received by AllianzGI US’s Covered particular client that may differ from the advice Persons. given, or the timing or nature of action taken, with respect to other clients. Frequently, a particular Covered Persons of AllianzGI US participate in the security may be bought or sold for only one or a Allianz Asset Management of America L.P. 401(k) small number of clients, or in different amounts Savings Retirement Plan (the “Plan”). The Plan and at different times for more than one but less may invest in certain vehicles for which AllianzGI than all clients. In some cases, AllianzGI US may US or its affiliates acts as investment manager. cause one or more accounts to buy or sell a Such investment vehicles also may be security from or to a broker-dealer, and soon recommended to or held by AllianzGI US clients. thereafter may engage in the opposite transaction Furthermore, AllianzGI US’s officers, senior for one or more other accounts from that or managers and other highly compensated another broker-dealer. This practice may result in employees may be eligible to defer receipt of cash certain accounts receiving less favorable prices. compensation and bonuses they may become AllianzGI US has adopted procedures that it entitled to pursuant to certain deferred believes are reasonably designed to obtain the compensation plans, and participation in such most favorable price and execution for the plans, and may elect to have the deferred amounts transactions by each account. invested in securities that may be recommended to or held by AllianzGI US clients. AllianzGI US may, from time to time, buy or sell securities for its own investment account, and Other Conflicts of Interest Matters AllianzGI US’s Covered Persons may do so, either AllianzGI US or one of its related persons may, for individually or as a group (such as through an its own account, buy or sell securities or other investment partnership). Likewise, the Allianz instruments that AllianzGI US has purchased or Affiliates may buy and sell securities for their own sold for its clients. Additionally, AllianzGI US may accounts, may underwrite securities, and may act purchase or sell for clients securities in which it or as a market maker with respect to certain related persons have a financial interest. Please securities. AllianzGI US does not prohibit any of its refer to the description of AllianzGI US’s Code of Covered Persons from purchasing or selling for Ethics above. AllianzGI US’s related persons may their own accounts securities that may be issue recommendations on securities held by recommended to or held by AllianzGI US’s clients, AllianzGI US’s client portfolios that may be and many of AllianzGI US’s Covered Persons do in contrary to the investment activities of AllianzGI fact own, purchase, and sell securities that are US. In the ordinary course of business, AllianzGI recommended to or held by AllianzGI US’ clients, US or related persons may establish “seeded”
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funds for the purpose of developing new broker or dealer that has provided investment investment strategies and products. These information and research services to AllianzGI US. “seeded” funds may be in the form of registered investment companies, private funds such as In the selection of broker or dealers, AllianzGI US limited partnerships or limited liability companies does not adhere to any rigid formulas but weighs a or separate accounts established by AllianzGI US combination of the factors described above based or an affiliate and may initially be funded on the information available at the time of the ("seeded") by AllianzGI US, Employees of AllianzGI trade under the current circumstances. The US or an affiliate of AllianzGI US. These “seeded” overriding objective in the selection of broker- funds may invest in the same securities as client dealers is their ability to secure the best possible accounts. AllianzGI US or a related person may, execution of orders taking into account all of the from time to time, make a proprietary investment foregoing factors. “Best execution” is not in pooled investment vehicles that may also synonymous with the lowest brokerage include client assets managed by AllianzGI US or commission. Consequently, in a particular another unaffiliated entity. AllianzGI US will transaction a client may pay a brokerage receive proportional returns associated with its commission in excess of that which another investment. broker-dealer might have charged for executing the same transaction.
ITEM 12. BROKERAGE PRACTICES Some trades are made on a net basis where the client buys securities directly from a dealer, or Brokerage Discretion sells them directly to a dealer. This is typical for AllianzGI US generally receives full discretionary certain equity securities traded in the over-the- authority to determine the broker to be used and counter market, and for most debt securities. In the commission paid through whom transactions such transactions, there is no direct commission may be executed, with the objective of attaining charged, but the dealer receives a “spread” which the best available price and most favorable is the equivalent of a commission for engaging in execution (“best execution”) for each transaction. the transaction. However, in some instances, a client may wish to retain discretion over broker selection and Non-Discretionary Clients commission rate or may wish to direct AllianzGI From time to time, AllianzGI US accepts accounts US to use a designated broker-dealer. for which it does not have full discretionary authority. For example, AllianzGI US may In selecting a broker or dealer for each specific recommend purchases and sales of securities for transaction, AllianzGI US uses its best judgment to such accounts, subject to the client’s approval, or choose the broker or dealer most capable of AllianzGI US may provide only reporting and providing the services necessary to obtain the best performance measurement services. In such cases, execution of that transaction. In seeking the best a suitable fee arrangement is agreed upon. (See execution of each transaction, AllianzGI US response to Items 4 and 5 above.) If only non- evaluates a wide range of criteria, including any or advisory services are provided, and if the account all of the following: the broker’s commission rate, is related to other accounts, AllianzGI US may the price and size of the order (including the perform the services as an accommodation. broker-dealer’s ability to effect the transaction where a large block is involved), promptness, If AllianzGI US makes a recommendation that is reliability and quality of executions, trading accepted by a non-discretionary client, that client expertise, positioning and distribution may choose to execute the transaction itself, capabilities, back office efficiency, ability to handle without AllianzGI US’s assistance. In that event, difficult trades, knowledge of other buyers and the non-discretionary client may seek to purchase sellers, ability to provide AllianzGI US with market- or sell securities at the same time as discretionary related information, confidentiality, capital clients, to the potential disadvantage of both. strength and financial stability, reputation, prior Alternatively, the client may request AllianzGI US performance and responsiveness in serving to place orders for the purchase or sale of the AllianzGI US and its clients, depth of service securities recommended and AllianzGI US may (including research and coverage) and other either be given the right to determine the factors affecting the overall benefit received by the executing broker-dealer or the client may direct client(s) in the transaction. When circumstances that such transactions be effected through relating to a proposed transaction indicate that a specified broker-dealers. As a result, the timing of particular broker or dealer is in a position to the non-discretionary client’s transaction and obtain the best execution, the order is placed with price received may differ from that of other that broker or dealer. This may or may not be a
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AllianzGI US clients because their transactions are of interest for AllianzGI US, because AllianzGI US typically executed after the transactions for fully can potentially reduce its costs by not having to discretionary accounts. produce or pay for the services using its own resources. AllianzGI US may have an incentive to Trades for non-discretionary model accounts direct client trades to broker-dealers who provide including Wrap Programs may be executed after these services to us. Sometimes, broker-dealers the orders in the same security for discretionary require a specific level of client commissions to accounts have been completed. This may result in provide research or brokerage services that material performance dispersion between AllianzGI US may want, and AllianzGI US may have discretionary accounts and non-discretionary an incentive to execute more trades through them, model accounts. rather than through other broker-dealers that do not provide the services but who would otherwise Private Client Accounts provide comparable execution for a given trade. The services benefit us by allowing us, at no In addition, from time to time, AllianzGI US may additional cost to us, (1) to supplement our own accept private client accounts for which a broker- research, analysis and execution activities, (2) to dealer serves as custodian. In such cases, the client receive the views and information of individuals may agree with the broker-dealer that some or all and research staffs of other securities firms; (3) to transactions for that account must be executed gain access to persons having special expertise on through that broker-dealer. In such certain companies, industries, areas of the circumstances, even though AllianzGI US has economy and market factors; and (4) to gain discretionary authority over the account, AllianzGI access to execution services of third-parties. US’s authority to select the broker-dealer through whom transactions will be executed may be Under a safe harbor from the Securities Exchange limited. As a result, AllianzGI US may not be in a Act of 1934, as amended, an investment adviser position to ensure best execution of transactions may cause clients to pay more than the lowest for that client. available commission rate in order to acquire
certain research and brokerage services with the Soft Dollars Commission Credits generated by its client Subject to the requirement of seeking best account transactions. Any product and service we execution, AllianzGI US may, in circumstances in receive with Commission Credits must fall within which two or more brokers or dealers are in a the safe harbor. In some cases, our affiliates have position to offer comparable price and execution, entered into commission sharing arrangements give preference to a broker or dealer that has whereby they have arrangements with a broker provided brokerage or research services to and the broker has arrangements with another AllianzGI US. In so doing, AllianzGI US may effect party to provide them research, which (as noted securities transactions which cause a client to pay above) is typically shared with us, effectively an amount of commission in excess of the amount allowing us, subject to our best execution of commission another broker would have responsibilities, to obtain research from other charged. In effecting trades through such brokers parties. or dealers, AllianzGI US may generate credits (“Commission Credits”) which may be used by Alternatively, AllianzGI US may use a “step-out” AllianzGI US to pay for brokerage and research trade mechanism. A “step-out” trade occurs when services provided or paid for by such brokers or the executing broker-dealer agrees to “step out” a dealers (“Research Products and Services”). In portion of a bunched execution, and that selecting such broker or dealer, AllianzGI US will “stepped-out” portion is cleared through the make a good faith determination that the amount broker-dealer providing the research and of commission is reasonable in relation to the brokerage services. The client is assessed a value of the brokerage services and research and commission only by the broker-dealer who clears investment information received, viewed in terms the transaction. The executing broker-dealer of either the specific transaction or AllianzGI US’s receives compensation in the form of commission overall responsibility to the accounts for which it from the portion of the bunched execution that exercises investment discretion. AllianzGI US was not “stepped-out” to other brokers. “Step-out” regularly evaluates all commissions paid in order trades will be executed so as to conform to the to ensure that the commission represents rules of the applicable exchange on which the reasonable compensation for the brokerage and trade occurs. research services provided by such brokers. AllianzGI US uses research and brokerage services Receiving research and brokerage services in that it receives from broker-dealers to evaluate exchange for soft dollars creates potential conflicts securities and to formulate investment
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recommendations for both discretionary and non- managers to formulate recommendations for the discretionary clients. Such services are used by purchase or sale of securities. These AllianzGI US as part of its investment process to recommendations, as well as AllianzGI US’s enhance portfolio return and to reduce trading analysis and the research used to formulate costs, and are helpful to AllianzGI US in serving its recommendations, may be made available to the clients. Among other things, AllianzGI US may Allianz Advisory Affiliates and all of AllianzGI US’s receive research reports, oral advice, or data from clients (including foreign clients of AllianzGI US the brokers or dealers regarding particular and the Allianz Advisory Affiliates) and is used by companies, industries, or general market or AllianzGI US in servicing all of its clients, and it is economic conditions. Such services also may recognized that a particular account may be include, among other things, information charged a commission paid to a broker or dealer concerning pertinent federal and state legislative who supplied research or brokerage services not and regulatory developments and other utilized by such account. In addition, non- developments that could affect the value of discretionary clients for whom AllianzGI US does companies in which AllianzGI US has invested or not place brokerage orders ordinarily will benefit may consider investing; attendance at meetings from such investment information, even though with corporate management personnel, industry such information was generated through experts, economists, government personnel, commissions paid by other clients. This may also academicians, and other financial analysts and be true for clients who require AllianzGI US to journalists; consultation with scientific and direct all or a significant portion of their trades to technical experts concerning the viability and one of a small number of broker-dealers. Private market potential of an issuer’s products and clients for whom a broker-dealer acts as custodian services; comparative issuer performance and also will benefit from such research information, evaluation and technical measurement services; even though AllianzGI US may not receive research subscription to publications that provide services in connection with transactions executed investment-related information; accounting and for such private clients through that broker-dealer. tax law interpretations; economic advice; In addition, some groups of accounts that do not quotation equipment and services; execution or generate Commission Credits (i.e., fixed income) research measurement services; and software to may obtain certain brokerage and research assist AllianzGI US initiate and execute orders; services acquired with Commission Credits market-related and survey data concerning the generated by a different group of accounts (e.g., products and services of an issuer and its equity and balanced). However, AllianzGI US competitors or concerning a particular industry believes that each account will be benefited overall that are used in reports prepared by AllianzGI US’s by such practice because each is receiving the Grassroots® Research group to enhance AllianzGI benefit of research services and recommendations US’s ability to analyze an issuer’s financial not otherwise available to it. condition and prospects; information from doctors concerning medical, technological and economic AllianzGI US has not made and will not make developments in medicine, health care, and commitments to place orders with any particular related areas; and other services provided by broker or dealer or group of brokers or dealers, recognized experts on investment matters of other than pursuant to client direction. Annually, particular interest to AllianzGI US. In addition, AllianzGI US projects the amount of commission services may include the use of or be delivered by dollars it expects to generate in the course of a computer systems whose hardware and/or year, and pursuant to an internal allocation software components may be provided to procedure that entails the vote of all portfolio AllianzGI US as part of the services. managers and analysts as to the quality of research and investment information received In any case in which information and other from various brokers or dealers, establishes a services can be used for both brokerage or budget of commission dollars to be directed to research and non-research or non-brokerage brokers providing the most useful investment purposes, AllianzGI US makes an appropriate good information. No absolute dollar amounts are faith allocation of those uses and pays directly for required to be met, and in no case will an order be that portion of the services to be used for non- placed if the broker or dealer is not able to provide research or non-brokerage purposes. This best execution of a particular transaction. allocation can create a potential conflict of However, AllianzGI US does endeavor to direct interest. sufficient orders to such brokers or dealers to ensure the continued receipt of research services The brokerage and research services that AllianzGI that AllianzGI US believes are useful. A substantial US receives from brokers or dealers are used by portion of brokerage commissions are paid to AllianzGI US’s research analysts and portfolio
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brokers and dealers who supply research and Services, AllianzGI US will be receiving a benefit by brokerage services to AllianzGI US. reason of the direction of commissions. Any such benefit may offset or reduce certain expenses for AllianzGI US provides “Commission Credit” which AllianzGI US would otherwise be reports to clients upon request which typically responsible for payment. AllianzGI US believes, only include commissions which were designated however, that the acquisition of Research Products as a Commission Credit for payment of third party and Services provides its clients with benefits by brokerage and research services. Such reports supplementing the research and brokerage generally do not include commissions paid to a services otherwise available to AllianzGI US and its broker-dealer in connection with proprietary or clients. The investment research that is provided bundled research. to AllianzGI US by broker-dealers in connection with securities transactions is in addition to and Soft Dollars - Clients Who Prohibit Soft Dollars not in lieu of the services required to be performed by AllianzGI US itself, and the investment It is important to note that the commission rates management fee payable by its clients is not paid by client accounts which prohibit the reduced as a result of the receipt of such generation of Commission Credits (“Execution supplemental information. AllianzGI US believes Only Accounts”) are not reduced below the rates that such information is only supplemental to paid by client accounts which generate AllianzGI US’s own research efforts, because the Commission Credits. Typically, Execution Only information must still be analyzed, weighed and Accounts are included in “bunched” trades reviewed by AllianzGI US. effected on behalf of all client accounts buying the same security on the same day. Accordingly, Where AllianzGI US receives a Research Product or notwithstanding the fact that Commission Credits Service that may also have a non-research use, a are not generated from the trades effected for potential conflict of interest may arise, since such Execution Only Accounts, clients prohibiting Research Product or Service may directly benefit Commission Credits will be paying the same AllianzGI US even though it arises in connection commission rate paid by other clients included in with the Commission Credits of AllianzGI US’s the bunched trade which, as explained above, may clients. In such situations, AllianzGI US will, on an be a higher commission rate than another broker- annual basis, make a reasonable allocation of the dealer would have charged. cost of any such mixed-use Research Product or Service according to its use. The portion of the In addition, any client directed prohibition against Research Product or Service that provides generating Commission Credits from transactions assistance to AllianzGI US in the investment effected for such client’s account will apply to decision-making process will be paid for with third party Research Products and Services only. Commission Credits while the portion that Research Products and Services that are provides administrative or other non-research proprietary to a broker-dealer and bundled with assistance will be paid for by AllianzGI US. other brokerage services (“Bundled Services”) are usually obtained by effecting transactions directly The research received for a particular client’s through the particular broker-dealer providing the brokerage commissions may be used for the Bundled Services and not as a result of paying a benefit of all clients whether or not such clients’ specified fee (or effecting a minimum volume of commissions are used to obtain research services. trades) as is typical in third party soft dollar For example, clients which (i) do not permit their arrangements. Therefore, in the case of Bundled brokerage commissions to be used to generate Services, there is no practical way to prevent the Commission Credits, (ii) are non-discretionary Execution Only Accounts in a bunched trade from clients of AllianzGI US for which AllianzGI US does generating Commission Credits which help not have authority to effect transactions or (iii) AllianzGI US gain access to Bundled Services have instructed AllianzGI US to direct all or a without removing such Execution Only Accounts portion of their brokerage transactions to a from the applicable bunched trades. As noted designated broker-dealer may benefit from under “Trade Allocation and Aggregation” below, Research Products and Services even though such AllianzGI US will normally seek to bunch trades clients’ commissions were not used to obtain since it believes that bunched trades generally Research Products and Services. Research benefit its clients as a whole over time. Products and Services may also be used by AllianzGI US for the benefit of all or a segment of Soft Dollars Conflicts of Interest its advisory clients and not specifically for the To the extent that AllianzGI US uses Commission benefit of the client account or accounts whose Credits (including Commission Sharing transactions generated the allocated commissions Arrangements) to obtain Research Products and
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that were used for payment of such products or purchase brokerage and research services to be services. used by AllianzGI US for the benefit of such clients.
Commission Sharing Arrangements If AllianzGI US acts as a sub-adviser to non-U.S. AllianzGI US may also request brokers effecting funds or accounts, AllianzGI US may only engage transactions on behalf of its clients to allocate a in soft dollar practices in compliance with an portion of the commission to a pool of approved policy on soft dollars and the laws of the Commission Credits maintained by the executing jurisdiction of the fund, the account and/or the broker or commission management provider from investment manager to such portfolio. Research which the executing broker or commission products or services provided by brokers may be management provider, at AllianzGI US’s direction, used by AllianzGI US for the benefit of clients other pays independent research providers (which may than the client(s) that paid commissions to the or may not be other brokers) for Research Products broker providing such products or services. and Services (“Commission Sharing Arrangements”). Commission Sharing AllianzGI US may be required by contract acting as Arrangements may be used to pay for both a sub-adviser to an EU MiFID investment form to: proprietary and third party Research Products and (i) set a budget for the maximum research costs Services. Commission Sharing Arrangements help that the Portfolio will incur; and (ii) fully account enable an investment manager to select the most for the research AllianzGI US receives in relation to appropriate broker for trade execution regardless the portfolio and the value of any research of whether or not the broker prepares or develops AllianzGI US receives in relation to the portfolio. the Research Products and Services used by the investment manager. Accordingly, instead of In accordance with applicable guidance from the paying a broker for its research by trading with it SEC staff and the firm’s soft dollar policy, AllianzGI directly, the investment manager directs the US may aggregate client orders under the the executing broker or commission management firm’s trade allocation and aggregation policy provider to pay the research provider from the where some clients may pay different amounts for pool of Commission Credits accumulated. research because of requirements under MiFID II. While it is AllianzGI US’s policy not to favor or MiFID II disfavor consistently or consciously any clients or class of clients, there may be certain instances The European Union’s Markets in Financial where some clients of AllianzGI US benefit from Instruments Directive (Directive 2014/65/EU) the research services utilized or purchased along with its accompanying regulation, the through soft dollar credits for the benefit of other Markets in Financial Instruments Regulation clients. (“MiFIR”) (Regulation 600/2014/EU) (which are collectively known as “MiFID II”) took effect on January 3, 2018. MiFID II restricts EU firms Trade Aggregation and Allocation providing portfolio management services from It is AllianzGI US’s policy to inform all of its clients receiving and retaining “inducements” from third that it performs investment advisory and parties. An EU investment firm may only receive investment management services for various “research” (which is considered an inducement) clients and may give advice and take action with if: (i) the “research” is paid for directly out of its respect to one client that differs from advice given own resources; or (ii) if “research” is paid from a or the timing or nature of action taken with separate research payment account (“RPA”) respect to another client. It is, however, AllianzGI controlled by the investment manager and funded US’s policy not to favor or disfavor consistently or by a specific research charge to the client, consciously any clients or class of clients in the provided that the conditions under MiFID II allocation of investment opportunities, with the relating to the operation of such an RPA are met. result that, to the extent practicable, all investment opportunities will be allocated among While AllianzGI US is not directly subject to MiFID clients over a period of time on a fair and equitable II or the “research payment rules” noted above, basis. AllianzGI US may be required to substantively comply with the “research payment rules” to the The general principles on which AllianzGI US’s extent that AllianzGI US provides sub-advisory trade allocation procedures are based are: (a) services to a MiFID-licensed investment firm fairness to advisory clients, both in priority of (including an affiliate of AllianzGI US) or order execution and in the allocation of otherwise commercially by an EU client. As a aggregated orders or trades; (b) timeliness and result, AllianzGI US may be restricted for certain efficiency in the execution of orders; and (c) accounts from utilizing soft dollar credits to accuracy of the investment adviser’s records both
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as to trade orders and maintenance of client Executing Office (“Executing Office”). This account positions. practice helps to minimize the possibility that clients of AllianzGI US and those of Allianz AllianzGI US may restrict, limit or reduce the Advisory Affiliates (with whom research is shared) amount of a portfolio’s investment in a security would compete in the marketplace by executing where holdings in such a security by a portfolio, or transactions in the same security during the same across portfolios in the aggregate, exceed a certain day. ownership threshold or would otherwise result in significant cost to, or administrative burden on Trading centers for some of the Allianz Advisory AllianzGI US. In these situations, AllianzGI US may Affiliates, including AllianzGI US, have been also determine not to engage in an investment for established as follows: an account, even where such investment would be Executing Offices Trading Region beneficial to the account. For example, such limitations exist if a position or transaction could Hong Kong Asia (including Japan) require a filing or a license or other regulatory or Frankfurt Europe (including U.K.) corporate consent, which could, among other things, result in additional cost and disclosure New York North and South America obligations for, or impose regulatory restrictions San Francisco North and South America on, AllianzGI US or on other account, or may result in regulatory or other restrictions, including those San Diego North and South America under the recast European Union’s Markets in Dallas North and South America Financial Instruments Directive (Directive When AllianzGI US or an Allianz Advisory Affiliate 2014/65/EU) along with its accompanying executes an order for a security that trades in a regulation, the Markets in Financial Instruments Trading Region noted above, the order is routed to Regulation (“MiFIR”) (Regulation 600/2014/EU), the applicable Executing Office. The Executing which are collectively known as “MiFID II.” Office generally will aggregate that order for execution along with any other order(s) it may When AllianzGI US allocates investment have received for the same security from another opportunities, it takes into account the factors Allianz Advisory Affiliate or any other AllianzGI US noted above, as applicable, and as a result, some or affiliate on behalf of which an Allianz Advisory all of the eligible accounts may not receive a pro Affiliate provides trading services. rata allocation, or any allocation. One of AllianzGI US’s objectives in aggregating In many cases, portfolio transactions may be trades for clients of AllianzGI US with each other executed in an aggregated transaction as part of and with clients of the Allianz Advisory Affiliates is concurrent authorizations to purchase or sell the to attempt to ensure that all clients are treated in a same security for numerous accounts served by fair and equitable manner over time. To help AllianzGI US, some of which accounts may have achieve this objective, AllianzGI US has adopted similar investment objectives. In addition, written procedures for the aggregation of orders of AllianzGI US will aggregate trades for certain advisory clients (the “Aggregation Procedures”). proprietary accounts with trades for AllianzGI US The Aggregation Procedures are designed to clients, and AllianzGI US may coordinate the comply with all applicable legal and regulatory execution of transactions for its clients with requirements. The Aggregation Procedures execution for transactions for the clients of the provide the procedures under which orders for one Allianz Advisory Affiliates, as more fully described client account may be aggregated with other client below. accounts, including accounts that may be partially or entirely proprietary. In general, the Aggregation AllianzGI US believes that aggregation of Procedures require all aggregated orders to be transactions may enable it, on average and over allocated to client accounts prior to the execution time, to obtain enhanced execution and lower of such order. In certain circumstances, and if brokerage commissions (although there is no approved in advance by AllianzGI US’s compliance certainty that such objectives will be achieved). officer or his or her designee, certain deviations Coordination of transactions among the clients of from the original allocation instructions may AllianzGI US and the Allianz Advisory Affiliates occur after a trade has been executed. Although may have similar results. AllianzGI US uses its best efforts to ensure that all clients are treated fairly and equitably over time, As a result, many of AllianzGI US’s equity there can be no assurance (and the Aggregation transactions are coordinated for its clients on a Procedures do not require) that any particular regional basis with certain Allianz Advisory investment will be proportionally allocated among Affiliates and through an Allianz Advisory Affiliate clients, or that the allocation process will achieve
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the same results for each client. Aggregated orders not obligated to aggregate orders into larger generally will be averaged as to price, with transactions. transaction costs shared pro rata based on each client’s participation in the transaction. In addition to the Aggregation Procedures, AllianzGI US also has adopted procedures No order may be aggregated unless an authorized intended to ensure that the allocation of shares trader has determined that such aggregation is in received in an initial public offering (“IPO”) is the best interest of the participating accounts or done in a manner that is fair and equitable to all clients and is consistent with the duty to seek best clients over time. These procedures establish an execution. AllianzGI US may aggregate brokerage allocation methodology for each product group orders for clients to obtain lower average managed by AllianzGI US (e.g., Large Cap, Mid-Cap, commission costs. When AllianzGI US gives the Technology, etc.) and a target allocation for each brokers instructions to execute orders client within each product group. Shares received representing multiple portfolios, orders that are in IPOs are first allocated to each product group fully executed will be allocated according to the consistent with AllianzGI US’s procedures, and current trade order instructions. Aggregated then to each client within that group based on orders that remain only partially filled at the end specific target allocations. In regards to the of the trading day shall generally be allocated pro allocation of shares received via a secondary rata based on the size of the current order, subject offering, shares are normalized to the original to some minimum ticket or minimum trade sizes percentage rather than allocated in a pro rata and adjustments for partially filled orders as format across strategies. described below. In addition, when executing sell Because each client has its own investment orders, AllianzGI US will seek to avoid leaving guidelines, objectives, and restrictions, a small positions in a client account. Therefore, particular security may be bought for one or more AllianzGI US may allocate a greater than pro rata clients at a time when one or more clients are share of a sell order for a security to an account if selling the same security. In such cases, when AllianzGI US intends to sell the account’s entire AllianzGI US believes it is appropriate and in position in such security. accordance with applicable law and regulations, AllianzGI US may effect third party agency cross AllianzGI US’s general policy of allocating partially transactions between two or more accounts. filled orders is pro rata, based on the size of the AllianzGI US believes that such transactions can current order, but adjusted for, among other benefit both accounts by effecting a transfer of things, (a) available cash, (b) round lots, securities from one account to another at a greatly minimum trade size or certain minimum basis reduced cost. points holding as determined by an authorized trader, (c) the size of the account, (d) the necessity In certain circumstances AllianzGI US or its to obtain a certain level of holdings according to affiliates will offer preferential allocations of the specific benchmark of the client, or (e) private investment transactions to other of their compliance with the laws of a foreign jurisdiction, affiliates in accordance with the investment including MiFID II. allocation policy for such transactions.
In certain circumstances private investment In accordance with applicable guidance from the transactions that are appropriate for clients SEC staff and the firm’s soft dollar policy, AllianzGI managed by certain AllianzGI US designated US may aggregate client orders under the investment teams may also be appropriate for principles noted above where some clients may clients of other investment teams of AllianzGI US pay different amounts for research because of or its affiliates. In such circumstances, each of the requirements under MiFID II. Each client in such investment teams may make an independent bid an aggregated order shall, however, pay or receive to participate in the opportunity due to, among the same average price for the purchase or sale of other things, the sourcing, structure and the underlying security and pay the same amount syndication of such investment opportunities. In for execution. Notwithstanding the foregoing, the event that independent bids are placed, the there may be circumstances where AllianzGI US amount of the investment opportunity allocable to may be required by MiFID II to execute each team will be determined by the relevant transactions on a “step-out” or “trade away” basis counterparty. to the extent necessary to achieve best execution in compliance with applicable law. Co-Investments Although AllianzGI US generally believes that AllianzGI US or its affiliates may, from time to time aggregation of transactions may be consistent and subject to each applicable client’s respective with its duty to seek best execution, AllianzGI US is governing documents, offer co-investment
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opportunities to one or more investors in a Private the services of others. In all cases, AllianzGI US will Fund and/or other third-party investors who attempt to secure best execution. AllianzGI US or its affiliates believe may provide a strategic or other benefit to the applicable fund or Client Directed Brokerage portfolio company. AllianzGI US and its affiliates are not obligated to arrange co-investment AllianzGI US will also place orders with brokerage firms pursuant to direction received from opportunities, and have sole discretion as to the investment management or investment advisory amount (if any) of a co-investment opportunity clients (“directed brokerage”). Directed brokerage that will be allocated to a particular Private Fund is typically arranged by a client as a method investor, and may allocate co-investment whereby the brokerage commissions serve as opportunities instead to investors in other Private compensation to the broker for goods and services Funds or to third parties. If AllianzGI US or its provided directly to the client in an agreement affiliates determine that an investment opportunity is too large for a Private Fund, they negotiated between the client and the broker. Alternatively, the client may seek to negotiate a may, but will not be obligated to, make proprietary particular commission rate with that broker, or investments therein. AllianzGI US or its affiliates may use the direction of brokerage to accomplish may receive fees and/or allocations from co- unrelated objectives (e.g., the direction of investors, which may differ among co-investors brokerage to minority-owned brokerage firms, or and also may differ from the fees and/or to brokerage firms located in the same geographic allocations borne by a Private Fund. area as the client). Clients that direct brokerage
Cross Transactions may ask AllianzGI US to ensure that they continue to receive best execution of each transaction, or When AllianzGI US engages in client transactions they may negotiate commission rates themselves. involving securities that may be permissible In addition, with respect to clients that are ERISA investments for other accounts it manages, plans, by law, any direction by the plan sponsor AllianzGI US may effect purchases or sales of these must be in the best interests of, and for the securities between clients (each a “Cross exclusive benefit of, the plan participants, in order Transaction”). AllianzGI US will effect Cross to procure goods and services on behalf of the plan Transactions in accordance with the following for which the plan otherwise would be obligated to standards: all Cross Transactions must be (1) pay. approved in advance by AllianzGI US’s Compliance Department, (2) legally permissible, (3) consistent When a client asks AllianzGI US to direct trades to with the respective investment objectives, policies, a particular broker-dealer, AllianzGI US ordinarily account guidelines, and regulatory or other will seek to fulfill that request, subject to seeking applicable restrictions of each client account, (4) best execution of each transaction. However, in the best interests of both the selling and buying AllianzGI US may not be in a position to negotiate client accounts, and (5) effected at the commission rates or spreads, or to select brokers independent current market price of the security, or dealers on the basis of best price and execution. or otherwise in accordance with applicable Moreover, the client may lose the possible regulatory guidance. AllianzGI US has established advantage which non-designating clients can compliance procedures designed to ensure that derive from the aggregation of orders for several Cross Transactions are conducted in accordance clients in a single transaction. In this regard, with the above standards and applicable orders for clients, including wrap clients, who regulations. direct trades may be executed after the orders in the same security for other AllianzGI US clients Over the Counter (OTC) Trades have been completed. As a result, directed brokerage transactions may result in higher AllianzGI US regularly purchases securities for commissions, greater spreads, or less favorable client accounts that are not listed on a national net prices than would be the case if AllianzGI US securities exchange but that are traded in the over- were authorized to choose the brokers or dealers the-counter market, and may also purchase listed through which to execute transactions for the securities in the third market (over-the-counter client's account. In addition, accounts that direct trades of exchange-listed securities) or fourth brokerage may not be able to participate in certain market (direct trades of securities between allocations of IPOs. institutional investors without intermediation of a broker-dealer). Where transactions are executed AllianzGI US ordinarily limits the amount of in the over-the-counter market or third market, brokerage that any client may direct to a AllianzGI US will seek to deal with the primary percentage of the total brokerage generated by market-makers; but when necessary in order to that client, except as described above. AllianzGI US obtain the best price and execution, it will utilize uses two methods to satisfy client requests for
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directed brokerage. First, AllianzGI US may execute AllianzGI US also works with each Sub-Adviser to the trade on behalf of that client with the broker- determine the sequencing of trades between dealer selected by the client, which may or may clients and the Sub-Adviser’s own clients. Some not be the broker-dealer used by AllianzGI US for strategies employ a rotation to determine who other trades in the same security during that goes first in the trading process. Other strategies period. Alternatively, AllianzGI US may step out may deliver investment recommendations to trades to the client directed broker-dealer which AllianzGI US on or about the same time they make may result in additional trading costs. changes to their own client portfolios. In such instances, AllianzGI US and the Sub-Adviser may AllianzGI US believes that the potential benefits be in the marketplace for the same security derived from any directed brokerage, expense concurrently. Market impact, liquidity constraints reimbursement or commission recapture program or other factors could result in some clients may be offset by 1) clients unable to participate in receiving less favorable trading results than other certain block purchases or sales of securities, 2) clients. the investment management team receiving less research, 3) the broker’s unwillingness to commit The Sub-Advisers and AllianzGI US, in turn, may capital and 4) AllianzGI US’s potential inability to provide model recommendations to Sponsors in a achieve best execution. separate non-discretionary rotation after all other discretionary orders have been completed. In The use of “step-out” trades can, in some certain circumstances, AllianzGI US may elect to circumstances, help ensure that clients that seek provide model recommendations to a Sponsor to direct brokerage are not disadvantaged by the within AllianzGI US’s trade rotation for inability to participate in aggregated executions. discretionary client accounts. However, “step-out” trades are an accommodation by the executing broker-dealer, and “step-out” Trades for non-discretionary model accounts trades will not be available in all circumstances to including Wrap Programs may be executed after satisfy requests for directed brokerage. the orders in the same security for discretionary accounts have been completed. This may result in AllianzGI US does not enter into agreements with, material performance dispersion between or make commitments to, broker-dealers that discretionary accounts and non-discretionary would bind AllianzGI US to compensate broker- model accounts. dealers directly or indirectly for client referrals. FX Trades Wrap Programs Upon client request, AllianzGI US can arrange for With respect to Wrap Programs, the Sponsor the Northern Trust Capital Markets Group includes commissions and other trading costs in (“Northern Trust”) to execute FX transactions for the Wrap Program fee and accordingly trading the settlement of foreign securities transactions. In through the Sponsor is typically more cost this arrangement, Northern Trust will net the effective to the a Wrap Program client. If AllianzGI currencies in each of our client accounts and will US determines that the Sponsor is not able to execute any outstanding values within a provide best execution, AllianzGI US, subject to its prescribed or fixed time of the trading day. FX duty to seek best execution, may step out trades to transactions by Northern Trust includes a set an alternate broker-dealer which may result in service fee that is added to the market bid/offer. additional trading costs. Northern Trust is capable of executing up to 38 freely traded currencies. All restricted currencies Wrap Program transactions are generally executed will continue to be executed by the client’s with the Sponsor or the Sponsor’s designated custodian. Northern Trust will not execute FX broker because no separate commissions are transactions involving repatriations or corporate charged. Where AllianzGI US would like to actions. purchase or sell securities across client accounts in multiple Wrap Programs, several Sponsors or their designated broker-dealers will have to Private Placements execute the trades. To ensure that over time AllianzGI US invests in private placements in particular client accounts or Wrap Programs are certain of its client accounts. Generally, these are not disadvantaged, AllianzGI US has implemented purchased directly from the issuer, so no broker is a trade rotation process whereby the order of involved. In the event that a broker is used in the priority in which a Wrap Program trades is rotated purchase of a private placement, the broker is paid based on a random computer-generated by the seller or issuer of the private placement. It is sequence. AllianzGI US's practice to hold the private placements to maturity, but in the rare event that
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AllianzGI US would sell a private placement, every ITEM 14. CLIENT REFERRALS AND OTHER effort is made to obtain best execution. COMPENSATION
Compensation from Non-Clients ITEM 13. REVIEW OF ACCOUNTS AllianzGI US or its affiliates may pay fees to broker- dealers or other third parties in exchange for Review of Accounts continuing due diligence, analysis, sub-transfer AllianzGI US’s review of client accounts is an agency, shareholder services, office access, integral component of AllianzGI US's investment training, operations and systems support, and management process. Portfolio managers review marketing assistance. These fees may be deducted each of their accounts on a regular basis and select from the management fees remitted to AllianzGI investments for clients in accordance with each US or billed separately. In lieu of making such client's investment objectives and consistent with payments, AllianzGI US or its affiliate may agree to the investment philosophy of AllianzGI US. pay a lump sum payment and/or payments AllianzGI US maintains systems for guideline related to specific events such as sponsorship of surveillance (collectively, the “Portfolio conferences, seminars, informational meetings, or Compliance Systems”) that check both pre-trade payment for attendance by persons associated security transactions and post-trade account with conferences, seminars or informational holdings against client account guidelines. meetings. In some cases, these payments may be based on assets under management or new assets. A dedicated team of AllianzGI US compliance In addition, AllianzGI US may pay for shareholder analysts review pre-trade activity and post-trade sub-administrative services. These fees are portfolio compliance results in the Portfolio typically assessed on a per account basis for those Compliance Systems for all client accounts on a accounts maintained by the broker-dealer or other daily basis. The compliance analyst runs third party and/or may be assessed to offset the compliance testing of post-trade holdings via an transfer agency costs of maintaining those overnight scheduler and reviews the results daily. accounts that would otherwise be incurred. The The compliance analyst will bring any potential broker-dealers or third parties may, in the violation that is detected to the attention of the ordinary course of business, recommend that a Chief Compliance Officer. client select AllianzGI US as an asset manager in their respective Wrap Programs.
Reports to Clients Referral Arrangements AllianzGI US provides advisory clients who have AllianzGI US may, from time to time, pay separately managed accounts with written reports compensation for client referrals. To the extent on a quarterly basis or more frequently upon required by law, AllianzGI US requires that the agreement between AllianzGI US and the client. person referring a client (the “Referral Agent”) These reports generally include, among other enter into a written agreement in accordance with things, all purchases and sales of securities made the requirements of Rule 206(4)-3 of the Advisers during the reporting period (market price, total Act. Under such a written agreement, the Referral cost/proceeds, original unit cost and realized Agent would be obligated to provide a prospective gain/loss on sales) and include a summary of client with a separate disclosure document before investments in the portfolio (unit cost, total cost, AllianzGI US opens an account for the prospective market price, total market value, yield and client. The separate disclosure document would percentage of portfolio). In addition, through provide the prospective client with information telephone calls and in-person meetings, client regarding the nature of AllianzGI US’s relationship service representatives strive to keep clients with the Referral Agent and any referral fees regularly informed of the investment policy and AllianzGI US pays to the Referral Agent. In strategy AllianzGI US is pursuing to achieve clients' addition, AllianzGI US has engaged a third-party investment objectives. In addition, AllianzGI US placement agent to solicit specific categories of provides compliance and other reports requested prospective clients to invest in its hedge funds. by the Board of Directors of the Mutual Funds and Referral fees and placement agent fees are paid Closed-End Funds it sub-advises. entirely by AllianzGI US and not by AllianzGI US’s clients. INVESTORS IN MUTUAL FUNDS AND/OR PRIVATE FUNDS RECEIVE REPORTS FROM THE FUNDS’ AllianzGI US’s employees and employees of TRANSFER AGENT, ADMINISTRATOR OR affiliates of AllianzGI US may serve as Referral CUSTODIAN BANK. CLIENTS IN WRAP FEE Agents and may be compensated for referral PROGRAMS RECEIVE REPORTS FROM THE WRAP activities. However in those cases, neither FEE PROGRAM SPONSOR. AllianzGI US nor its affiliated Referral Agent will
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provide the separate disclosure document noted consistent with seeking best execution and the above. AllianzGI US’s affiliate, AGID, employs a stated investment objectives for the client’s team of internal and external wholesalers who account. AllianzGI US also generally will receive market AllianzGI US’s Wrap Program products. discretionary authority to determine the brokers These marketing professionals receive fees for used and the commissions paid. In all such assets brought into an AllianzGI US Wrap Program relationships, AllianzGI US will make investment product. In addition, there are circumstances decisions and direct the execution of all where AllianzGI US may refer a client to an transactions without prior consultation with the affiliated Sub-Adviser or other affiliated client. Investment guidelines and restrictions investment manager depending on the size and must be provided to AllianzGI US in writing. particulars of the account. In these cases, AllianzGI US may receive a fee from the relevant When selecting securities and determining Sub-Adviser or affiliated investment manager for amounts, AllianzGI US observes the investment the client referral. policies, limitations and restrictions of the clients for which it advises. For Mutual Funds, AllianzGI US’s authority to trade securities may also be ITEM 15. CUSTODY limited by certain federal securities and tax laws that require diversification of investments and AllianzGI US does not maintain physical custody of favor the holding of investments once made. client assets. Clients should receive at least quarterly statements from the broker-dealer, bank Certain clients, however, may retain AllianzGI US or other qualified custodian that holds and on a non-discretionary basis. When AllianzGI US is maintains client investment assets. Pursuant to retained on a non-discretionary basis, it makes Rule 206(4)-2 under the Advisers Act, AllianzGI US recommendations for the client’s account but all may be deemed to have custody of certain Private investment decisions are made by the client and Funds it manages because AllianzGI is the account transactions are executed only in managing member of a limited liability company, accordance with the applicable investment the general partner of a limited partnership or in a management agreement. comparable position for another type of pooled investment vehicle. Investors in Private Funds will Investment guidelines and restrictions must be receive financial statements of the Private Fund, provided to AllianzGI US in writing. For additional audited by an independent public accounting firm, information about AllianzGI US’s investment at least annually. advisory services and restrictions, please see Item 4 Advisory Business. For separate account clients and Wrap Program clients, AllianzGI US does not select account custodians on behalf of clients or serve as the ITEM 17. VOTING CLIENT SECURITIES custodian of client account assets. AllianzGI US also does not recommend, request or require AllianzGI may be granted by its clients the certain custodians. authority to vote proxies of the securities held in client accounts. AllianzGI US typically votes AllianzGI US urges clients and investors to proxies as part of its discretionary authority to carefully review such statements and compare manage accounts, unless the client has explicitly such official custodial records to the account reserved the authority for itself. When voting statements that AllianzGI US provides to clients proxies, AllianzGI US seeks to make voting and investors. Account statements produced by decisions solely in the best interests of its clients AllianzGI US may vary from custodial statements and to enhance the economic value of the based on accounting procedures, reporting dates, underlying portfolio securities held in its clients’ or valuation methodologies of certain securities. accounts.
AllianzGI US has adopted written Global Corporate ITEM 16. INVESTMENT DISCRETION Governance Guidelines and Proxy Voting Policy (the “Proxy Guidelines”), which are reasonably AllianzGI US generally receives investment designed to ensure that the firm is voting in the discretionary authority from the client at the best interest of its clients. For the purpose of outset of an advisory relationship to select the voting proxies for all accounts of AllianzGI US, identity and amount of securities to be bought or AllianzGI US uses the services of its affiliate, sold. Such authority is typically documented in an Allianz Global Investors GmbH (“AllianzGI advisory or sub-advisory agreement. In all cases, GmbH”). The employees of AllianzGI GmbH such discretion is exercised in a manner who provide proxy voting services to AllianzGI
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US are considered “associated persons” as that and research analysts may have, to ensure any term is defined in the Advisers Act. such conflicted individuals refrain from participating in the proxy voting process or that The Proxy Guidelines provide a general framework the conflicts are otherwise mitigated. With respect for our proxy voting analysis and are intended to to personal conflicts of interest, AllianzGI’s Code of address the most significant and frequent voting Ethics requires all employees to conduct issues that arise at our investee companies’ themselves with integrity and distinction, to put shareholder meetings. However, the Proxy first the interests of the firm’s clients, and to take Guidelines are not intended to be rigid rules, and care to avoid even the appearance of impropriety. AllianzGI’s consideration of the merits of a Portfolio managers, research analysts, proxy particular proposal may cause AllianzGI to vote in analysts, or Proxy Committee members with a a manner that deviates from the approach set personal conflict of interest regarding a particular forth in the Proxy Guidelines. proxy vote must recuse themselves and not participate in the voting decisions with respect to AllianzGI has retained an unaffiliated third party that proxy. proxy research and voting service provider (“Proxy Voting Service”), to assist it in researching and With respect to the voting process, as described voting proxies. With respect to each proxy above, most votes are based on the independent received, the Proxy Voting Service researches the recommendation of the unaffiliated, third party ballot proposals and provides a recommendation Proxy Voting Service, which recommendations are to AllianzGI as to how to vote on each proposal in turn based on the Proxy Voting Service’s based on the Proxy Voting Service’s research of the independent review and research of each proxy individual facts and circumstances and the Proxy and its independent application of the Proxy Voting Service’s application of its research Guidelines. findings to the Proxy Guidelines. In those cases in which a proxy analyst, portfolio In some cases a portfolio manager, research manager or research analyst proposes to override analyst or proxy analyst from the Global a policy recommendation made by the Proxy Environmental, Social and Governance (“ESG”) Voting Service or the Proxy Voting Service has not team may propose to override a policy provided a recommendation, the proxy analyst recommendation made by the Proxy Voting and relevant portfolio managers and/or research Service. In such cases, AllianzGI will review the analysts will review the proxy to ensure any proxy to determine whether there is a material recommendation appears based on a sound conflict between the interests of AllianzGI investment rationale and assess whether any (including the employee proposing the vote) and business or other relationship, or any other the interests of AllianzGI’s clients. If a material potential conflict of interest, may be influencing conflict does exist, AllianzGI will seek to address the proposed vote on that company's proxy. In the the conflict in good faith and in the best interests event a material conflict is identified, AllianzGI of the applicable client accounts, as described will convene the Proxy Committee to review the more fully below. In the absence of a material proxy and make a decision how to vote. Proposed conflict, the proxy will be reviewed by a proxy votes that raise potential material conflicts of analyst and the relevant portfolio managers interest are promptly resolved by the Proxy and/or research analysts and, from time to time as Committee prior to the time AllianzGI casts its may be necessary, the Head of ESG Research (or vote. equivalent), to determine how the proxy will be voted. Any deviations from the Proxy Guidelines As a further safeguard, while AllianzGI includes will be documented and maintained in members from different parts of the organization accordance with Rule 204-2 under the Advisers on the Proxy Committee, AllianzGI does not Act. include individuals whose primary duties relate to client relationship management, marketing, or AllianzGI has adopted and implemented policies sales. Finally, any voting decision by the Proxy and procedures, including the procedures Committee must include a vote from a member of described in this document, which are reasonably at least one of the Risk, Legal, or Compliance designed to ensure that client account proxies are functions. voted in the best interest of clients. Such policies and procedures are in part designed to identify AllianzGI US may vote proxies in accordance with and address material conflicts of interest that may other relevant procedures that have been arise between the interests of AllianzGI and its approved and implemented to address specific clients, as well as identify material conflicts of types of conflicts. For example, when a material interest that portfolio managers, proxy analysts conflict between the interests of AllianzGI US and
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its clients have been identified AllianzGI US may that the client recall securities that are on loan if it abstain from voting. determines that the benefit of voting outweighs the costs and potential lost revenue to the client In certain circumstances, a client may request in and the administrative burden of retrieving the writing that AllianzGI US vote proxies for its securities. account in accordance with a set of guidelines which differs from the Proxy Guidelines. For The ability to timely identify material events and example, a client may wish to have proxies voted recommend recall of shares for proxy voting for its account in accordance with the Taft-Hartley purposes is not within the control of AllianzGI US proxy voting guidelines. In that case, AllianzGI US and requires the cooperation of the client and its will vote the shares held by such client accounts in other service providers. Efforts to recall loaned accordance with their direction, which may be securities are not always effective and there can be different from the vote cast for shares held on no guarantee that any such securities can be behalf of other client accounts that vote in retrieved in a timely manner for purposes of voting accordance with the Proxy Guidelines. the securities.
AllianzGI may abstain from voting client proxies if, based on its evaluation of relevant criteria, it determines that the costs associated with voting a Class Actions and Similar Matters proxy exceed the expected benefits to affected AllianzGI US generally does not advise or take any clients. The primary aim of this cost-benefit action on behalf of its clients in any legal analysis is to determine whether it is in a client’s proceedings, including class actions and best economic interest to vote its proxies. If the bankruptcies. A client’s decision whether to costs associated with voting a proxy outweigh the participate in a securities class action lawsuit may expected benefit to the client, AllianzGI may involve facts and legal judgments that are beyond refrain from voting that proxy. the scope of AllianzGI US’s management of the account and expertise as an investment adviser. The circumstances under which AllianzGI may AllianzGI US therefore encourages its clients to refrain from voting may include, but are not rely on their legal counsel for advice on whether or limited to, the following: (1) proxy statements and not to participate in class actions. AllianzGI US ballots being written in a foreign language, (2) does not file proof of claim forms for its separate untimely notice of a shareholder meeting, (3) account clients. However, upon request and as a requirements to vote proxies in person, (4) courtesy, AllianzGI US may provide relevant restrictions on a foreigner’s ability to exercise records and information in its possession that may votes, and (5) requirements to provide local agents be necessary or useful to the client or its custodian with power of attorney to execute the voting to file claim forms or other legal documents. In instructions. Such proxies are voted on a best- such cases it is the client’s responsibility to (i) efforts basis. ensure that the custodian is capable of filing, and has the proper authorization to file, proofs of claim Proxy voting in certain countries requires “share on the client’s behalf and (ii) determine whether blocking.” To vote proxies in such countries, to file a request for exclusion from a particular shareholders must deposit their shares shortly class action settlement and take the necessary before the date of the meeting with a designated steps to do so. AllianzGI US is not responsible for a depositary and the shares are then restricted from client's or custodian's failure to file claim forms or being sold until the meeting has taken place and to request exclusion. the shares are returned to the shareholders’ custodian banks. Absent compelling reasons, With respect to bankruptcies involving issuers of AllianzGI believes the benefit to its clients of securities held by clients, AllianzGI US as exercising voting rights does not outweigh the investment adviser may in its discretion effects of not being able to sell the shares. participate in bankruptcy proceedings, make Therefore, if share blocking is required AllianzGI investment-related elections and join creditors generally abstains from voting. committees on behalf of some or all of its clients. Although AllianzGI US may participate in such AllianzGI will be unable to vote securities on loan proceedings and join such committees on behalf under securities lending arrangements into which of its separate account clients’ in its discretion, it is AllianzGI’s clients have entered. However, under not obligated to do so. rare circumstances such as voting issues that may have a significant impact on the investment, if the With respect to the AllianzGI Funds, AllianzGI US client holds a sufficient number of shares to have a has hired Securities Class Action Services LLC, a material impact on the vote, AllianzGI may request wholly owned subsidiary of Institutional
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Shareholder Services Inc. (“ISS”) to monitor financial advisory firm, financial advisor or securities class action suits and file claims on consultant, and/or from information you provide behalf of the AllianzGI Funds. on our website.
You are not required to supply any of the Personal ITEM 18. FINANCIAL INFORMATION Information that we may request. However, failure to do so may result in us being unable to AllianzGI US does not require or solicit open and maintain your account, or to provide prepayment of its fees. AllianzGI US is not aware of services to you. any financial condition that is reasonably likely to impair its ability to meet its contractual How Your Information Is Shared commitments to clients, nor has AllianzGI US been the subject of a bankruptcy petition at any time We do not disclose your Personal Information to during the past ten years. anyone for marketing purposes. We disclose your Personal Information only to those service providers, affiliated and non-affiliated, who need the information for everyday business purposes, ITEM 19. PRIVACY NOTICE such as to respond to your inquiries, to perform
services, and/or to service and maintain your Please read this Policy carefully. It gives you account. This applies to all of the categories of important information about how Allianz Global Personal Information we collect about you. The Investors U.S. and its U.S. affiliates (“AllianzGI US,” affiliated and non-affiliated service providers who “we” or “us”) handle non-public personal receive your Personal Information also may use it information (“Personal Information”) that we may to process your transactions, provide you with receive about you. It applies to all of our past, materials (including preparing and mailing present and future clients and shareholders of prospectuses and shareholder reports and AllianzGI US and the funds and accounts it gathering shareholder proxies), and provide you manages, advises, sub-advises, administers or with account statements and other materials distributes, and will continue to apply when you relating to your account. These service providers are no longer a client or shareholder. As used provide services at our direction, and under their throughout this Policy, “AllianzGI US” means agreements with us, are required to keep your Allianz Global Investors U.S. LLC, Allianz Global Personal Information confidential and to use it Investors Distributors LLC, and the family of only for providing the contractually required registered and unregistered funds managed by services. Our service providers may not use your one or more of these firms. AllianzGI US is part of Personal Information to market products and a global investment management group, and the services to you except in conformance with privacy policies of other Allianz Global Investors applicable laws and regulations. We also may entities outside of the United States may have provide your Personal Information to your provisions in their policies that differ from this respective brokerage or financial advisory firm, Privacy Policy. Please refer to the website of the custodian, and/or to your financial advisor or specific non-US Allianz Global Investors entity for consultant. its policy on privacy.
We Care about Your Privacy In addition, we reserve the right to disclose or report Personal Information to non-affiliated third We consider your privacy to be a fundamental parties, in limited circumstances, where we aspect of our relationship with you, and we strive believe in good faith that disclosure is required to maintain the confidentiality, integrity and under law, to cooperate with regulators or law security of your Personal Information. To ensure enforcement authorities or pursuant to other legal your privacy, we have developed policies that are process, or to protect our rights or property, designed to protect your Personal Information including to enforce our Privacy Policy or other while allowing your needs to be served. agreements with you. Personal Information collected by us may also be transferred as part of a Information We May Collect corporate sale, restructuring, bankruptcy, or other transfer of assets. In the course of providing you with products and services, we may obtain Personal Information Security of Your Information about you, which may come from sources such as account application and other forms, from other We maintain your Personal Information for as long written, electronic, or verbal communications, as necessary for legitimate business purposes or from account transactions, from a brokerage or otherwise as required by law. In maintaining this
74 Allianz Global Investors U.S. LLC
information, we have implemented appropriate during your use of, or the next time you use, our procedures that are designed to restrict access to website and the services provided via our website; your Personal Information only to those who need (ii) provide customized advertisements, content, to know that information in order to provide and information; (iii) monitor and analyze the products and/or services to you. In addition, we effectiveness of our website and the services have implemented physical, electronic and provided via our website and third-party procedural safeguards to help protect your marketing activities; (iv) monitor aggregate site Personal Information. usage metrics such as total number of visitors and pages viewed; and (v) track your entries, Privacy and the Internet submissions, and status in any promotions or other activities offered through our website and The Personal Information that you provide the services provided via our website. Tracking through our website, as applicable, is handled in technology also helps us manage and improve the the same way as the Personal Information that you usability of our website, (i) detecting whether provide by any other means, as described above. there has been any contact between your This section of the Policy gives you additional computer and us in the past and (ii) to identify the information about the way in which Personal most popular sections of our website. Because an Information that is obtained online is handled. industry-standard Do-Not-Track protocol is not yet established, our website will continue to operate Online Enrollment, Account Access and as described in this Privacy Policy and will not be Transactions affected by any Do-Not-Track signals from any When you visit our website, you can visit pages browser. that are open to the general public, or, where available, log into protected pages to enroll online, Use of Social Media Plugins access information about your account, or conduct certain transactions. Access to these secure pages Our website uses the following Social Media is permitted only after you have created a User ID Plugins ("Plugins"): and Password. The User ID and Password must be • Facebook Share Button operated by supplied each time you want to access your Facebook Inc., 1601 S. California Ave, Palo account information online. This information Alto, CA 94304, USA serves to verify your identity. When you enter • Tweet Button operated by Twitter Inc., Personal Information to enroll or access your 795 Folsom St., Suite 600, San Francisco, account online, you will log into secure pages. By CA 94107, USA using our website, you consent to this Privacy • LinkedIn Share Button operated by Policy and to the use of your Personal Information LinkedIn Corporation, 2029 Stierlin in accordance with the practices described in this Court, Mountain View, CA 94043, USA Policy. If you provide Personal Information to effect transactions, a record of the transactions you have performed while on the site is retained by us. For All Plugins are marked with the brand of the additional terms and conditions governing your respective operators Facebook, Twitter and use of our website, please refer to the Investor LinkedIn ("Operators"). When you visit our website Mutual Fund Access – Disclaimer which is that contains a social plugin, your browser incorporated herein by reference and is available establishes a direct connection to the servers of on our website. the Operator. The Operator directly transfers the plugin content to your browser which embeds the Cookies and Similar Technologies latter into our website, enabling the Operator to receive information about you having accessed the Cookies are small text files stored in your respective page of our website. Thus, AllianzGI US computer’s hard drive when you visit certain web has no influence on the data gathered by the pages. Clear GIFs (also known as Web Beacons) are plugin and we inform you according to our state of typically transparent very small graphic images knowledge: The embedded plugins provide the (usually 1 pixel x 1 pixel) that are placed on a Operator with the information that you have website that may be included on our services accessed the corresponding page of our website. If provided via our website and typically work in you do not wish to have such data transferred to conjunction with cookies to identify our users and the Operators, you need to log out of your user behavior. We may use cookies and respective account before visiting our website. automatically collected information to: (i) Please see the Operators' data privacy statements personalize our website and the services provided in order to get further information about purpose via our website, such as remembering your and scope of the data collection and the processing information so that you will not have to re-enter it and use:
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• Facebook: https://de- de.facebook.com/about/privacy/ • Twitter: https://twitter.com/privacy • Linked In: https://www.linkedin.com/legal/privacy- policy
Changes to Our Privacy Policy
We may modify this Privacy Policy from time-to- time to reflect changes in related practices and procedures, or applicable laws and regulations. If we make changes, we will notify you on our website and the revised Policy will become effective immediately upon posting to our website. We also will provide account owners with a copy of our Privacy Policy annually. We encourage you to visit our website periodically to remain up to date on our Privacy Policy. You acknowledge that by using our website after we have posted changes to this Privacy Policy, you are agreeing to the terms of the Privacy Policy as modified.
Obtaining Additional Information
If you have any questions about this Privacy Policy or our privacy related practices in the United States, you may contact us via our dedicated email at [email protected].
76
Allianz Global Investors U.S. LLC 1633 Broadway New York, NY 10019 (212) 739-3000
Form ADV Part 2B Brochure Supplement June 4, 2018
This brochure supplement provides information about Supervised Persons of Allianz Global Investors U.S. LLC (“AllianzGI US”) that supplements the AllianzGI US brochure. You should have received a copy of that brochure. Please contact your client service representative if you did not receive AllianzGI US’s brochure or if you have any questions about the contents of this supplement.
Allianz Global Investors U.S. LLC
EQUITY term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). Andreas Utermann Allianz Global Investors GmbH, UK Branch, ITEM 5. ADDITIONAL COMPENSATION 199 Bishopsgate, London, EC2M 3TY, United There is no information to report under this Kingdom, +44 (0) 20 7859 9000 item.
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the Andreas Utermann, ASIP (1966) advice its portfolio managers provide to Global Chief Investment Officer clients through regular reviews of client Mr. Utermann is the Global Chief Investment trading and positions for adherence to client Officer of Allianz Global Investors, which he investment guidelines and AllianzGI US’s joined in 2002. He is an Allianz Global internal policies and procedures. The name Investors board member and has 29 years of and contact information for the person investment-industry experience. Mr. primarily responsible for supervising Utermann was previously Global Head and investment advisory activities is Ingo CIO, Equities at Merrill Lynch Investment Mainert, Head of Balanced Management, Managers (formerly Mercury Asset +49-69-13900. Management). Before that, he worked at Deutsche Bank AG. Mr. Utermann has a B.Sc. in economics from the London School of Jeffrey D. Parker Economics and an M.A. in economics from 555 Mission Street, Suite 1700, San Francisco, Katholieke Universiteit Leuven. Mr. Utermann CA 94105, (415) 954-5400 is on the board of the CFA Society of the UK and the AMIC Council of the ICMA, and is fluent in English, German, French and Dutch. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Please refer to the descriptions of the licenses Jeffrey D. Parker, CFA (1968) and professional designations listed at the Managing Director, Senior Portfolio Manager, end of this document. CIO Equity US
Mr. Parker is a senior portfolio manager, a ITEM 3. DISCIPLINARY INFORMATION managing director and CIO Equity US with There is no information to report under this AllianzGI US, which he joined in 1999. He is item. also a member of the firm’s US Executive Committee. In addition, Mr. Parker oversees ITEM 4. OTHER BUSINESS ACTIVITIES the Small Cap and Systematic Equity teams. He was previously head of the Growth team, Andreas Utermann is employed by Allianz and had portfolio-management Global Investors GmbH, UK Branch, an responsibilities for the Large and Mid Cap advisory affiliate of AllianzGI US. In rendering Growth products. Mr. Parker has 28 years of investment advisory services with respect to investment-industry experience. Before strategies to its clients, including U.S. joining the firm, he was an assistant portfolio registered investment companies, AllianzGI manager at Eagle Asset Management and a US uses the resources of Mr. Utermann to senior consultant at Andersen Consulting. provide portfolio management services to Mr. Parker has a B.B.A. from University of AllianzGI US clients. In providing such Miami and an M.B.A. from Vanderbilt services, Mr. Utermann is considered an University. He is a CFA charterholder. "associated person" of AllianzGI US as that
2 Allianz Global Investors U.S. LLC
Please refer to the descriptions of the licenses roles, Mr. Berexa was Global Head of and professional designations listed at the Research, US director of research and head of end of this document. the US Technology team. He has managed several Lipper Award-winning European- ITEM 3. DISCIPLINARY INFORMATION domiciled funds and has 30 years of investment-industry experience. Before There is no information to report under this joining the firm, Mr. Berexa worked at Item. Prudential in a private placement unit, with responsibilities for the subordinated debt of ITEM 4. OTHER BUSINESS ACTIVITIES renewable energy projects, as well as credit and LBOs. He was also a technology analyst at Registered representative of affiliated broker- Chancellor/LGT Asset Management. Mr. dealer, Allianz Global Investors Distributors Berexa has a B.S.E.E. in electrical engineering LLC. and computer science from Duke University, where he was awarded the Angier B. Duke Investment adviser representative of scholarship, and an M.B.A. from Duke AllianzGI US. University’s Fuqua School of Business. He is a CFA charterholder. ITEM 5. ADDITIONAL COMPENSATION Please refer to the descriptions of the licenses There is no information to report under this and professional designations listed at the Item. end of this document.
ITEM 6. SUPERVISION ITEM 3. DISCIPLINARY INFORMATION AllianzGI US supervises and monitors the There is no information to report under this advice its portfolio managers provide to item. clients through regular reviews of client trading and positions for adherence to client ITEM 4. OTHER BUSINESS ACTIVITIES investment guidelines and AllianzGI US’s internal policies and procedures. The name There is no information to report under this and contact information for the person item. primarily responsible for supervising Mr. Parker’s investment advisory activities is ITEM 5. ADDITIONAL COMPENSATION Steve Berexa, Global CIO Equity, Global Head There is no information to report under this of Research, (415) 954-5400. item.
ITEM 6. SUPERVISION Steven J. Berexa AllianzGI US supervises and monitors the 555 Mission Street, Suite 1700, San Francisco, advice its portfolio managers provide to CA 94105, (415) 954-5400 clients through regular reviews of client trading and positions for adherence to client ITEM 2. EDUCATION BACKGROUND AND investment guidelines and AllianzGI US’s BUSINESS EXPERIENCE internal policies and procedures. The name and contact information for the persons Steven J. Berexa, CFA (1963) primarily responsible for supervising Mr. Managing Director, Global CIO Equity Berexa’s investment advisory activities is Mr. Berexa is a senior portfolio manager, a Andreas Utermann, Member, Management managing director and Global CIO Equity Board of Allianz Global Investors GmbH and with AllianzGI US, which he joined in 1997. Global Chief Investment Officer for Allianz He is a portfolio manager for the Disciplined Global Investors, +44 (0)20 7859 9000. Equity, Global Fundamental and Global Insights strategies; he is also a member of the Global Executive Committee. In previous
3 Allianz Global Investors U.S. LLC
Jeffrey Parker, Managing Director, Senior Huachen Chen Portfolio Manager, CIO Equity US, (415) 954- 555 Mission Street, Suite 1700, San Francisco, 5400. CA 94105, (415) 954-5400
ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Joanne L. Howard 555 Mission Street, Suite 1700, San Francisco, Huachen Chen, CFA (1957) CA 94105, (415) 954-5400 Managing Director, Senior Portfolio Manager Mr. Chen is a senior portfolio manager and ITEM 2. EDUCATION BACKGROUND AND managing director with AllianzGI US, which BUSINESS EXPERIENCE he joined in 1984. He is co-lead portfolio manager of the Global Technology strategy. Joanne L. Howard, CFA (1942) Mr. Chen has more than 30 years of Managing Director, Senior Portfolio Manager, investment-industry experience. He Chief Investment Officer, Private Client Group previously worked for IBM and Intel Ms. Howard is a senior portfolio manager and Corporation, where he had responsibilities a managing director with AllianzGI US, which for semiconductor process engineering. Mr. she joined in 1992. She has portfolio- Chen has a B.S. in materials science and management responsibilities with the US engineering from Cornell University, an M.S. Large Cap Core Equity team and is the chief in materials science and engineering from investment officer of the Private Client Group Northwestern University and an M.B.A. from in San Francisco. Ms. Howard has more than the University of California, Berkeley. He is a 50 years of investment-industry experience. CFA charterholder. Before joining the firm, she was a managing director at Scudder, Stevens & Clark, where Please refer to the descriptions of the licenses she was a senior member of the Scudder and professional designations listed at the quality growth equity management team. end of this document. Before that, she was a manager of equity mutual funds at American Express ITEM 3. DISCIPLINARY INFORMATION Investment Management Co.; the director of research at ISI Corporation; a junior security There is no information to report under this analyst with First National Bank of Chicago; item. and an industry analyst with CNA Financial.
She has been president of the CFA Society of ITEM 4. OTHER BUSINESS ACTIVITIES San Francisco and the Financial Women’s There is no information to report under this Association of San Francisco. Ms. Howard has Item. a B.B.A., phi beta kappa, from the University of Wisconsin and an M.B.A. in finance from the ITEM 5. ADDITIONAL COMPENSATION University of Wisconsin. She is a CFA charterholder, a member of the CFA Society of There is no information to report under this San Francisco and a member of the Financial Item. Women’s Association of San Francisco.
ITEM 6. SUPERVISION Please refer to the descriptions of the licenses AllianzGI US supervises and monitors the and professional designations listed at the end of this document. advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client ITEM 3. DISCIPLINARY INFORMATION investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures. The name item. and contact information for the person primarily responsible for supervising Mr. ITEM 4. OTHER BUSINESS ACTIVITIES Chen’s investment advisory activities is
4 Allianz Global Investors U.S. LLC
There is no information to report under this ITEM 3. DISCIPLINARY INFORMATION item. There is no information to report under this ITEM 5. ADDITIONAL COMPENSATION Item.
There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES item. There is no information to report under this ITEM 6. SUPERVISION Item.
AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 5. ADDITIONAL COMPENSATION clients through regular reviews of client There is no information to report under this trading and positions for adherence to client Item. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 6. SUPERVISION and contact information for the person primarily responsible for supervising Ms. AllianzGI US supervises and monitors the Howard’s investment advisory activities is advice its portfolio managers provide to Jeffrey Parker, Managing Director, Senior clients through regular reviews of client Portfolio Manager, CIO Equity US, (415) 954- trading and positions for adherence to client 5400. investment guidelines and AllianzGI US’s internal policies and procedures. The name and contact information for the person Robert S. Marren primarily responsible for supervising Mr. th Marren’s investment advisory activities is 600 West Broadway, 29 Floor, San Diego, CA Jeffrey Parker, Managing Director, Senior 92101, (619) 687-8000 Portfolio Manager, CIO Equity US, (415) 954- 5400. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Robert S. Marren (1964) Walter C. Price, Jr. Managing Director, Portfolio Manager 555 Mission Street, Suite 1700, San Francisco, Mr. Marren is a portfolio manager and CA 94105, (415) 954-5400 managing director with AllianzGI US, which he joined in 2007. He has portfolio- ITEM 2. EDUCATION BACKGROUND AND management and research responsibilities BUSINESS EXPERIENCE for the US Small Cap Growth team. Mr. Marren has 28 years of investment-industry Walter Price, Jr., CFA (1948) experience. He was previously the director of Managing Director, Senior Portfolio Manager research and a portfolio manager of micro- Mr. Price is a senior portfolio manager and a cap growth equities for Duncan-Hurst Capital managing director with AllianzGI US, which Management. Before that, Mr. Marren was an he joined in 1974. He is co-lead portfolio assistant manager of corporate finance for manager of the Global Technology strategy. Hughes Aircraft Company, focusing on debt Mr. Price has 45 years of investment-industry financing and mergers and acquisitions. He experience. He previously worked for has an M.B.A. from Duke University, Fuqua Colonial Management, an investment School of Business, and a B.A. from the advisory firm in Boston, where he became a University of California, San Diego, where he senior analyst responsible for the chemical is also a Trustee for the UC San Diego industry and the technology area. Mr. Price Foundation, and currently serves as chair of has a B.S. with honors in electrical their Investment Committee. engineering from MIT, and a B.S. and M.S. in management from the Sloan School at MIT. He is a CFA charterholder. Mr. Price is a
5 Allianz Global Investors U.S. LLC
current director and past president of the MIT AllianzGI US, which he rejoined in 2005 after Club of Northern California. He also heads the previously working with the firm from 1994 Educational Council for MIT in the Bay Area to 1998. Mr. Agbabian manages the Global and is a past chairman of the AIMR Agricultural Trends strategy and has Committee on Corporate Reporting for the primary-research coverage for companies computer and electronics industries. along the agricultural value chain—including companies in the energy, commodities, Please refer to the descriptions of the licenses materials and technology, and US alternative- and professional designations listed at the energy industries. He has 24 years of end of this document. investment-industry experience. Mr. Agbabian was previously an analyst covering the energy, materials, industrials and ITEM 3. DISCIPLINARY INFORMATION semiconductor sectors with McMorgan & There is no information to report under this Company. He has a B.A. in economics from item. the University of California, Los Angeles, and an M.B.A. and M.S.B.A. in finance from The ITEM 4. OTHER BUSINESS ACTIVITIES University of Southern California. Mr. Agbabian is a CFA charterholder. There is no information to report under this Item. Please refer to the descriptions of the licenses
and professional designations listed at the ITEM 5. ADDITIONAL COMPENSATION end of this document. There is no information to report under this Item. ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this ITEM 6. SUPERVISION item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 4. OTHER BUSINESS ACTIVITIES clients through regular reviews of client There is no information to report under this trading and positions for adherence to client item. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 5. ADDITIONAL COMPENSATION and contact information for the person primarily responsible for supervising Mr. There is no information to report under this Price’s investment advisory activities is item. Jeffrey Parker, Managing Director, Senior Portfolio Manager, CIO Equity US, (415) 954- ITEM 6. SUPERVISION 5400. AllianzGI US supervises and monitors the
advice its portfolio managers provide to
clients through regular reviews of client Bryan Z. Agbabian trading and positions for adherence to client 555 Mission Street, Suite 1700, San Francisco, investment guidelines and AllianzGI US’s CA 94105, (415) 954-5400 internal policies and procedures. The name and contact information for the person ITEM 2. EDUCATION BACKGROUND AND primarily responsible for supervising Mr. BUSINESS EXPERIENCE Agbabian’s investment advisory activities is Nina Gupta, Director, Director of Research for Bryan Z. Agbabian, CFA (1961) the US, (415) 954-5400. Director, Portfolio Manager, Senior Research Analyst & Sector Head Mr. Agbabian is a senior research analyst, a lead portfolio manager and a director with
6 Allianz Global Investors U.S. LLC
K. Mathew Axline Robert Marren, Managing Director and th Portfolio Manager, (619) 687-8000. 600 West Broadway, 29 Floor, San Diego, CA 92101, (619) 687-8000
ITEM 2. EDUCATION BACKGROUND AND Blake H. Burdine th BUSINESS EXPERIENCE 600 West Broadway, 29 Floor, San Diego, CA 92101, (619) 687-8000 K. Mathew Axline, CFA (1975) Director, Portfolio Manager ITEM 2. EDUCATION BACKGROUND AND Mr. Axline is a portfolio manager and director BUSINESS EXPERIENCE with AllianzGI US, which he joined in 2004. He has portfolio-management and research Blake H. Burdine (1967) responsibilities for the US Small Cap Growth Director, Portfolio Manager team. Mr. Axline has 19 years of investment- Mr. Burdine is a portfolio manager and industry experience. He was previously an director with AllianzGI US, which he joined in associate with Pescadero Ventures, LLC, a 2007. He has portfolio-management and business-development manager for Icarian, research responsibilities for the US Small Cap Inc. and a wealth-management advisor with Growth team. Mr. Burdine has 26 years of Merrill Lynch, Pierce, Fenner & Smith. Mr. investment-industry experience. He was Axline has a B.S. from The Ohio State previously a portfolio manager and research University and an M.B.A. from Indiana analyst at Duncan-Hurst Capital University’s Kelley School of Business. He is a Management, focusing on micro-cap and CFA charterholder. small-cap growth strategies; a portfolio manager and research analyst at Please refer to the descriptions of the licenses CapitalWorks Investment Partners; a and professional designations listed at the research analyst at USAA Investment end of this document. Management and Credit Suisse First Boston; and an investment-banking analyst at ITEM 3. DISCIPLINARY INFORMATION Jefferies & Company and Howard, Weil, Labouisse, Friedrichs. Mr. Burdine has a B.A. There is no information to report under this from The University of Texas and an M.B.A. Item. from The University of Texas, McCombs School of Business. ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 3. DISCIPLINARY INFORMATION Investment adviser representative of AllianzGI US. There is no information to report under this Item. ITEM 5. ADDITIONAL COMPENSATION ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this Item. Registered representative of affiliated broker- dealer, Allianz Global Investors Distributors ITEM 6. SUPERVISION LLC. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 5. ADDITIONAL COMPENSATION clients through regular reviews of client There is no information to report under this trading and positions for adherence to client Item. investment guidelines and AllianzGI US’s internal policies and procedures. The name and contact information for the person ITEM 6. SUPERVISION primarily responsible for supervising Mr. AllianzGI US supervises and monitors the Axline’s investment advisory activities is advice its portfolio managers provide to
7 Allianz Global Investors U.S. LLC
clients through regular reviews of client ITEM 6. SUPERVISION trading and positions for adherence to client AllianzGI US supervises and monitors the investment guidelines and AllianzGI US’s advice its portfolio managers provide to internal policies and procedures. The name clients through regular reviews of client and contact information for the person trading and positions for adherence to client primarily responsible for supervising Mr. investment guidelines and AllianzGI US’s Burdine’s investment advisory activities is internal policies and procedures. The name Robert Marren, Managing Director and and contact information for the person Portfolio Manager, (619) 687-8000. primarily responsible for supervising Mr. Cunha’s investment advisory activities is Nina Gupta, Director, Director of Research in the US(415) 954-5400. Raymond F. Cunha 555 Mission Street, Suite 1700, San Francisco,
CA 94105, (415) 954-5400 Raphael L. Edelman ITEM 2. EDUCATION BACKGROUND AND 555 Mission Street, Suite 1700, San Francisco, BUSINESS EXPERIENCE CA 94105, (415) 954-5400
Raymond F. Cunha, CFA (1970) ITEM 2. EDUCATION BACKGROUND AND Director Senior Research Analyst & Sector Head, BUSINESS EXPERIENCE US Industrials Raphael L. Edelman (1960) Mr. Cunha is a senior research analyst and a director with Allianz Global Investors, which Managing Director, Senior Portfolio Manager, he joined in 2009. He is a member of the US CIO Large Cap Select & Core Growth Equities Industrials team. Mr. Cunha has 25 years of Mr. Edelman is a senior portfolio manager, a investment-industry experience. He was managing director and CIO Large Cap Select previously a vice president and senior analyst & Core Growth Equities for AllianzGI US, at State Street Global Advisors. Before that, he which he joined in 2004. He has more than 30 was an analyst and portfolio manager in the years of investment-industry experience. Mr. US active quantitative strategies group at Edelman previously worked at Alliance State Street. He has a B.A. in business from Capital Management, where he developed a the University of Massachusetts and an M.B.A. large-cap equity product and managed from Boston University. Mr. Cunha is a CFA institutional portfolios; before that, he was a charterholder and a member of The Boston research analyst specializing in the consumer Security Analysts Society. products and services sector. He has a B.A. in history from Columbia College and an M.B.A. Please refer to the descriptions of the licenses in finance from New York University. and professional designations listed at the end of this document. ITEM 3. DISCIPLINARY INFORMATION
There is no information to report under this ITEM 3. DISCIPLINARY INFORMATION item. There is no information to report under this
Item. ITEM 4. OTHER BUSINESS ACTIVITIES
ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this There is no information to report under this item. item. ITEM 5. ADDITIONAL COMPENSATION ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this There is no information to report under this item. Item.
8 Allianz Global Investors U.S. LLC
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the Kunal Ghosh is employed by Allianz Global advice its portfolio managers provide to Investors Singapore Limited, an advisory clients through regular reviews of client affiliate of AllianzGI US. In rendering trading and positions for adherence to client investment advisory services with respect to investment guidelines and AllianzGI US’s the Systematic strategies to its clients, internal policies and procedures. The name including U.S. registered investment and contact information for the person companies. AllianzGI US uses the resources of primarily responsible for supervising Mr. Mr. Ghosh to provide portfolio management Edelman’s investment advisory activities is services to AllianzGI US clients. In providing Jeffrey Parker, Managing Director, Senior such services, Mr. Ghosh is considered an Portfolio Manager, CIO Equity US, (415) 954- "associated person" of AllianzGI US as that 5400. term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act").
Kunal Ghosh ITEM 5. ADDITIONAL COMPENSATION Allianz Global Investors Singapore Limited There is no information to report under this 12 Marina View, #13-02, Asia Square Tower 2 Item. 018961 Singapore, +65 6311 8000
th ITEM 6. SUPERVISION 600 West Broadway, 29 Floor, San Diego, CA 92101, (619) 687-8000 AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 2. EDUCATION BACKGROUND AND clients through regular reviews of client BUSINESS EXPERIENCE trading and positions for adherence to client investment guidelines and AllianzGI US’s Kunal Ghosh (1971) internal policies and procedures. The name Managing Director, Portfolio Manager and contact information for the person Mr. Ghosh is a portfolio manager and a primarily responsible for supervising Mr. managing director with Allianz Global Ghosh’s investment advisory activities is Investors, which he joined in 2006. He is head David Tan, CIO Fixed Income Asia Pacific, +65 of the Systematic team. Mr. Ghosh has 15 6311 8000. For services provided to US clients, years of investment-industry experience. Mr. Ghosh is primarily supervised by Jeffrey Previously, he was previously a research Parker, Managing Director, Senior Portfolio associate and portfolio manager for Barclays Manager, CIO Equity US, (415) 954-5400. Global Investors, where he built and implemented models for portfolio management. Before that, Mr. Ghosh was a Karen B. Hiatt quantitative analyst for the Cayuga Hedge 555 Mission Street, Suite 1700, San Francisco, Fund. He has a B.Tech. from the Indian CA 94105, (415) 954-5400 Institute of Technology, an M.S. in material engineering from the University of British ITEM 2. EDUCATION BACKGROUND AND Columbia and an M.B.A. from Cornell University. BUSINESS EXPERIENCE Karen B. Hiatt, CFA (1970) ITEM 3. DISCIPLINARY INFORMATION Managing Director, Senior Portfolio Manager, There is no information to report under this CIO Focused Growth Equities Item. Ms. Hiatt is a senior portfolio manager, a managing director and CIO Focused Growth Equities with AllianzGI US, which she joined in 1998. She manages all focused-growth strategies. Prior to joining the team, Ms. Hiatt
9 Allianz Global Investors U.S. LLC
served as a senior research analyst, sector Director, CIO Mid Cap Equities, Senior Portfolio head of the US Consumer team and US Manager Director of Research. She has 23 years of Mr. Klopukh is a senior portfolio manager, a investment-industry experience. Ms. Hiatt director and CIO Mid Cap Equities with was previously a vice president and analyst at AllianzGI US, which he joined in 2002, He Bioscience Securities, a boutique investment manages US mid-cap growth and core equity bank. She has a B.S. in finance, cum laude, portfolios. Mr. Klopukh has 20 years of from Santa Clara University. Ms. Hiatt is a CFA investment-industry experience. He was charterholder and a member of the CFA previously a vice president and fundamental Society of San Francisco. equity analyst at CDC Investment
Management Corp., where he collaborated on Please refer to the descriptions of the licenses quantitatively enhanced, risk-targeted large- and professional designations listed at the cap core and market-neutral equity end of this document. strategies. Before that, Mr. Klopukh was in the investment-banking associate program at ITEM 3. DISCIPLINARY INFORMATION Morgan Stanley, Dean Witter, where he was involved in M&A, debt and equity capital- There is no information to report under this raising, and consumer-products corporate item. finance. He began his career as a sell-side
equity research associate analyst at Ryan, ITEM 4. OTHER BUSINESS ACTIVITIES Beck and Co., where he covered small- and There is no information to report under this mid-sized banks and thrifts. Mr. Klopukh has item. a B.S., magna cum laude, from Fairleigh Dickinson University and an M.B.A. with ITEM 5. ADDITIONAL COMPENSATION honors from the University of Chicago. He is a CFA charterholder. There is no information to report under this item. Please refer to the descriptions of the licenses
and professional designations listed at the ITEM 6. SUPERVISION end of this document. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 3. DISCIPLINARY INFORMATION clients through regular reviews of client trading and positions for adherence to client There is no information to report under this investment guidelines and AllianzGI US’s item. internal policies and procedures The name and contact information for the person ITEM 4. OTHER BUSINESS ACTIVITIES primarily responsible for supervising Ms. Hiatt’s investment advisory activities is Registered representative of affiliated broker- Jeffrey Parker, Managing Director, Senior dealer, Allianz Global Investors Distributors Portfolio Manager, CIO Equity US, (415) 954- LLC. 5400. ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this Steven Klopukh item. 555 Mission Street, Suite 1700, San Francisco, CA 94105, (415) 954-5400 ITEM 6. SUPERVISION AllianzGI US supervises and monitors the ITEM 2. EDUCATION BACKGROUND AND advice its portfolio managers provide to BUSINESS EXPERIENCE clients through regular reviews of client Steven Kloplukh, CFA (1970) trading and positions for adherence to client investment guidelines and AllianzGI US’s
10 Allianz Global Investors U.S. LLC
internal policies and procedures. The name internal policies and procedures. The name and contact information for the person and contact information for the person primarily responsible for supervising Mr. primarily responsible for supervising Mr. Klopukh’s investment advisory activities is Lyford’s investment advisory activities is Jeffrey Parker, Managing Director, Senior Robert Marren, Managing Director and Portfolio Manager, CIO Equity US, (415) 954- Portfolio Manager, (619) 687-8000. 5400.
Nina Gupta Stephen W. Lyford 555 Mission Street, Suite 1700, San Francisco, 600 West Broadway, 29th Floor, San Diego, CA CA 94105, (415) 954-5400 92101, (619) 687-8000 ITEM 2. EDUCATION BACKGROUND AND ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE BUSINESS EXPERIENCE Nina Gupta, CFA (1975) Stephen W. Lyford (1973) Director, Director of Research for the US, Senior Director, Portfolio Manager Research Analyst & Sector Head, US Financial Mr. Lyford is a portfolio manager and a Services director with AllianzGI US, which he joined in Ms. Gupta is a senior financial analyst and a 2005. He has portfolio-management and director with AllianzGI US, which she joined research responsibilities for the US Small Cap in 2014. She is also Sector Head for the firm’s Growth team. Mr. Lyford has 17 years of US financial-services research effort. Ms. investment-industry experience. He was Gupta was previously a member of the previously a co-analyst for small- and micro- Financial Institutions research team, cap portfolios with Duncan-Hurst Capital responsible for analytical coverage of the Management; before that, he worked with financial sector. She has 14 years of Trammel Crow. Mr. Lyford has a B.B.A. and a investment-industry experience. Before B.S. from Southern Methodist University, and joining the firm, Ms. Gupta was a senior an M.B.A. from the UCLA Anderson School of research analyst with Portales Partners and a Management. portfolio manager with Trellus Management Company. Before that, she was an auditor ITEM 3. DISCIPLINARY INFORMATION and consultant with KPMG. Ms. Gupta has a B.A. in psychology from the University of There is no information to report under this California, Los Angeles, and an M.B.A. in Item. finance from The Wharton School, The University of Pennsylvania. Ms. Gupta is a ITEM 4. OTHER BUSINESS ACTIVITIES CFA charterholder and a certified public There is no information to report under this accountant. Item. Please refer to the descriptions of the licenses ITEM 5. ADDITIONAL COMPENSATION and professional designations listed at the end of this document. There is no information to report under this Item. ITEM 3. DISCIPLINARY INFORMATION
There is no information to report under this ITEM 6. SUPERVISION item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 4. OTHER BUSINESS ACTIVITIES clients through regular reviews of client trading and positions for adherence to client Registered representative of affiliated broker- investment guidelines and AllianzGI US’s dealer, Allianz Global Investors Distributors LLC.
11 Allianz Global Investors U.S. LLC
ITEM 3. DISCIPLINARY INFORMATION ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this There is no information to report under this item. item. ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 6. SUPERVISION There is no information to report under this AllianzGI US supervises and monitors the item. advice its portfolio managers provide to clients through regular reviews of client ITEM 5. ADDITIONAL COMPENSATION trading and positions for adherence to client investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures The name item. and contact information for the person primarily responsible for supervising Ms. ITEM 6. SUPERVISION Gupta’s investment advisory activities is AllianzGI US supervises and monitors the Jeffrey Parker, Managing Director, Senior advice its portfolio managers provide to Portfolio Manager, CIO Equity US, (415) 954- clients through regular reviews of client 5400. trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name Peter Pirsch and contact information for the person primarily responsible for supervising Mr. 555 Mission Street, Suite 1700, San Francisco, Pirsch’s investment advisory activities is Nina CA 94105, (415) 954-5400 Gupta, Director, Director of Research in the
US, (415) 954-5400. ITEM 2. EDUCATION BACKGROUND AND
BUSINESS EXPERIENCE
Peter Pirsch, CFA (1974) Paul Strand Director, Portfolio Manager, Sector Head, 555 Mission Street, Suite 1700, San Francisco, Healthcare CA 94105, (415) 954-5400 Mr. Pirsch is a senior portfolio manager, a senior analyst and a director with Allianz ITEM 2. EDUCATION BACKGROUND AND Global Investors, which he joined in 2018. He BUSINESS EXPERIENCE has management and research responsibilities for the Health Care team. Mr. Paul Strand, CFA (1964) Pirsch has 18 years of investment-industry Director, Portfolio Manager, Senior Research experience. He previously worked at Aptigon Analyst & Sector Head, US Resources Capital, Visium Asset Management, Surveyor Mr. Strand is a portfolio manager, a senior Capital, Fred Alger Management and C.R. research analyst and a director with AllianzGI Bard. Before that, Mr. Pirsch was an associate US, which he joined in 2003. He is sector head director at UBS Investment Bank and an of the US Resources team and is responsible analyst at Wells Fargo. He has a B.A. in for analytical coverage of integrated oil, oil economics and international relations from and gas production, refiners and oil services Bucknell University, and an M.B.A. with a within the energy sector. Mr. Strand has 21 certificate in health sector management from years of investment-industry experience. He Duke University, Fuqua School of Business. was previously a portfolio analyst at Dain Mr. Pirsch is a CFA charterholder. Rauscher and a senior equity analyst at Advantus Capital Management, where he Please refer to the descriptions of the licenses covered the energy and consumer-staples and professional designations listed at the sectors. Before joining the investment end of this document. industry, Mr. Strand was an officer and aviator in the US Navy. He has a B.S. in
12 Allianz Global Investors U.S. LLC
aerospace engineering from the University of portfolio manager. He has 21 years of Minnesota and an M.B.A. from National investment-industry experience. Mr. Thomas University. Mr. Strand is a CFA charterholder. previously worked at Roger Engemann & Associates, a Phoenix Investment Partners Please refer to the descriptions of the licenses company; Fidelity Management and and professional designations listed at the Research; Morgan Stanley; and the Federal end of this document. Reserve Board of Governors. He also has experience designing, developing, and ITEM 3. DISCIPLINARY INFORMATION managing software applications. Mr. Thomas has a B.A. in economics from Pomona College There is no information to report under this and an M.B.A. in finance and strategy from item. the University of Chicago. He is a CFA charterholder. ITEM 4. OTHER BUSINESS ACTIVITIES Please refer to the descriptions of the licenses There is no information to report under this and professional designations listed at the item. end of this document.
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this item. There is no information to report under this item.
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the advice its portfolio managers provide to There is no information to report under this clients through regular reviews of client item. trading and positions for adherence to client investment guidelines and AllianzGI US’s ITEM 5. ADDITIONAL COMPENSATION internal policies and procedures. The name There is no information to report under this and contact information for the person item. primarily responsible for supervising Mr. Strand’s investment advisory activities is ITEM 6. SUPERVISION Nina Gupta, Director, Director of Research in the US, (415) 954-5400. AllianzGI US supervises and monitors the advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client Sebastian Thomas investment guidelines and AllianzGI US’s 555 Mission Street, Suite 1700, San Francisco, internal policies and procedures. The name CA 94105, (415) 954-5400 and contact information for the person primarily responsible for supervising Mr. ITEM 2. EDUCATION BACKGROUND AND Thomas’s investment advisory activities is BUSINESS EXPERIENCE Nina Gupta, Director, Director of Research in the US, (415) 954-5400. Sebastian Thomas, CFA (1972)
Director, Portfolio Manager, Senior Research Analyst & Sector Head, Technology Lu Yu Mr. Thomas is a portfolio manager, a senior th research analyst and a director with AllianzGI 600 West Broadway, 29 Floor, San Diego, CA US, which he joined in 2003. He heads the 92101, (619) 687-8000 firm’s US technology/telecom research effort and is responsible for covering large- and ITEM 2. EDUCATION BACKGROUND AND mid-cap software and Internet technology BUSINESS EXPERIENCE companies. Mr. Thomas is also a lead Lu Yu, CFA, CIPM (1975)
13 Allianz Global Investors U.S. LLC
Managing Director, Portfolio Manager ITEM 2. EDUCATION BACKGROUND AND Ms. Yu is a portfolio manager and a managing BUSINESS EXPERIENCE director with AllianzGI US, which she joined Timothy M. McCarthy, CFA (1976) in 2003. She has portfolio-management and Director, Portfolio Manager research responsibilities for the Systematic team. Ms. Yu has 16 years of investment- Mr. McCarthy is a portfolio manager and a industry experience. She was previously a vice president with AllianzGI US, which he risk analyst for Provident Advisors LLC. Ms. Yu joined in 2003. He is a member of the US Mid has a B.S. from Nanjing University, China, and Cap team. Mr. McCarthy was previously a an M.S. from the University of Southern portfolio manager and analyst on the Small California and the National University of Cap team, and a member of the Quantitative Singapore. She is a CFA charterholder and Analytics & Risk Strategy group. Mr. McCarthy was formerly the president of the CFA Society has 19 years of investment-industry of San Diego. experience. He was previously a portfolio product specialist at FactSet Research Please refer to the descriptions of the licenses Systems, where he had responsibilities for and professional designations listed at the portfolio construction, risk analysis and end of this document. performance. Mr. McCarthy has a B.S. in business administration with a concentration in finance from the University ITEM 3. DISCIPLINARY INFORMATION of Vermont. He is a CFA charterholder and a There is no information to report under this member of the CFA Society of San Francisco. Item. Please refer to the descriptions of the licenses ITEM 4. OTHER BUSINESS ACTIVITIES and professional designations listed at the There is no information to report under this end of this document. Item. ITEM 3. DISCIPLINARY INFORMATION ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this item. There is no information to report under this
Item. ITEM 4. OTHER BUSINESS ACTIVITIES
ITEM 6. SUPERVISION There is no information to report under this item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 5. ADDITIONAL COMPENSATION clients through regular reviews of client trading and positions for adherence to client There is no information to report under this investment guidelines and AllianzGI US’s item. internal policies and procedures. The name and contact information for the person ITEM 6. SUPERVISION primarily responsible for supervising Ms. Yu’s investment advisory activities is Kunal AllianzGI US supervises and monitors the Ghosh, Director and Portfolio Manager, (619) advice its portfolio managers provide to 687-8000. clients through regular reviews of client trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name Timothy M. McCarthy and contact information for the person 555 Mission Street, Suite 1700, San Francisco, primarily responsible for supervising Mr. CA 94105, (415) 954-5400 McCarthy’s investment advisory activities is Steven Klopukh, Director, Senior Portfolio Manager, (415) 954-5400.
14 Allianz Global Investors U.S. LLC
investment guidelines and AllianzGI US’s internal policies and procedures. The name Steven A. Tael and contact information for the person th primarily responsible for supervising Mr. 600 West Broadway, 29 Floor, San Diego, CA Tael’s investment advisory activities is Kunal 92101, (619) 687-8000 Ghosh, Director and Portfolio Manager, (619) 687-8000. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Steven A. Tael, Ph.D., CFA (1962) Paul Schofield Vice President, Portfolio Manager Allianz Global Investors GmbH, UK Branch, Mr. Tael is a portfolio manager and a vice 199 Bishopsgate, London, EC2M 3TY, United president with AllianzGI US, which he joined Kingdom, +44 (0) 20 7859 9000 in 2005. He has portfolio-management and research responsibilities with the Systematic ITEM 2. EDUCATION BACKGROUND AND team. Mr. Tael has 22 years of investment- BUSINESS EXPERIENCE industry experience and was previously a senior research analyst at Mellon Capital Paul Schofield (1973) Management, where he built quantitative Director, Portfolio Manager, Global Equities, models and managed products and London portfolios. Before that, he co-developed a real- Mr. Schofield is a director and portfolio time global portfolio risk-reporting system manager with Allianz Global Investors, which for Bank of America and was director of he joined in 1998. As a member of the Global information technologies at AffiniCorp USA. Equities team, he provides support for the Mr. Tael has a B.S. and an M.A. from the lead portfolio manager of the Global High University of California at Santa Barbara, and Alpha strategy. Mr. Schofield also manages a Ph.D. in applied mathematics and statistics the Global Sustainability portfolio and was from the State University of New York at Stony previously the lead portfolio manager for this Brook. He is a CFA charterholder. strategy. In addition, he is responsible for managing high-alpha mandates, including Please refer to the descriptions of the licenses the Kokusai strategy, to customized and professional designations listed at the benchmarks. He has 21 years of investment- end of this document. industry experience.
ITEM 3. DISCIPLINARY INFORMATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this item. Item.
ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 4. OTHER BUSINESS ACTIVITIES Paul Schofield is employed by Allianz Global There is no information to report under this Investors GmbH, UK Branch, an advisory Item. affiliate of AllianzGI US. In rendering investment advisory services with respect to ITEM 5. ADDITIONAL COMPENSATION strategies to its clients, including U.S. There is no information to report under this registered investment companies, AllianzGI Item. US uses the resources of Mr. Schofield to provide portfolio management services to AllianzGI US clients. In providing such ITEM 6. SUPERVISION services, Mr. Schofield is considered an AllianzGI US supervises and monitors the "associated person" of AllianzGI US as that advice its portfolio managers provide to term is defined in the Investment Advisers clients through regular reviews of client Act of 1940, as amended ("Advisers Act"). trading and positions for adherence to client
15 Allianz Global Investors U.S. LLC
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this item. item.
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the Jeremy Kent is employed by Allianz Global advice its portfolio managers provide to Investors GmbH, UK Branch, an advisory clients through regular reviews of client affiliate of AllianzGI US. In rendering trading and positions for adherence to client investment advisory services with respect to investment guidelines and AllianzGI US’s strategies to its clients, including U.S. internal policies and procedures. The name registered investment companies, AllianzGI and contact information for the person US uses the resources of Mr. Kent to provide primarily responsible for supervising Mr. portfolio management services to AllianzGI Schofield’s investment advisory activities is US clients. In providing such services, Mr. Lucy MacDonald, Global Equities, Head of Kent is considered an "associated person" of Equity Investment London, +44 (0) 20 7859 AllianzGI US as that term is defined in the 9000. Investment Advisers Act of 1940, as amended ("Advisers Act").
Jeremy Kent ITEM 5. ADDITIONAL COMPENSATION Allianz Global Investors GmbH, UK Branch, There is no information to report under this 199 Bishopsgate, London, EC2M 3TY, United item. Kingdom, +44 (0) 20 7859 9000 ITEM 6. SUPERVISION ITEM 2. EDUCATION BACKGROUND AND AllianzGI US supervises and monitors the BUSINESS EXPERIENCE advice its portfolio managers provide to Jeremy Kent, CFA (1983) clients through regular reviews of client Vice President, Portfolio Manager, Global trading and positions for adherence to client Equities, London investment guidelines and AllianzGI US’s Mr. Kent is a portfolio manager and a vice internal policies and procedures. The name president with Allianz Global Investors, and contact information for the person which he joined in 2008. He has analytical primarily responsible for supervising Mr. responsibilities on the Environmental, Social Kent’s investment advisory activities is and Governance (ESG) Research team for the Bozena Jankowska, Global Co-Head of ESG industrial sector and is the back-up portfolio (Research), +44 (0)20 7859 9000. manager for the Global Sustainability strategy. Mr. Kent has nine years of investment-industry experience. Before Tobias Kohls joining Allianz Global Investors, he founded Allianz Global Investors GmbH, and operated a small business. Mr. Kent has a Bockenheimer Landstrasse 42-44, 60323 B.A. in entrepreneurial management from Frankfurt am Main, Germany, +49 69 24431 California State University. He is a CFA 4141 charterholder and holds the IMC designation.
ITEM 2. EDUCATION BACKGROUND AND Please refer to the descriptions of the licenses BUSINESS EXPERIENCE and professional designations listed at the end of this document. Tobias Kohls, CFA, FRM (1979) Portfolio Manager, Global Equities, Frankfurt Mr. Kohls is a portfolio manager with Allianz Global Investors, which he joined in 2005. He has portfolio-management responsibilities
16 Allianz Global Investors U.S. LLC
on the Global Equities team. Mr. Kohls was MacDonald, Global Equities, Head of Equity previously a member of the Japanese Equities Investment London, +44 (0) 20 7859 9000. team. He has 14 years of investment-industry experience. Before joining the firm, Mr. Kohls worked at Dresdner Bank in Düsseldorf, where he spent two years in its apprentice Andrew Neville banking, finance and securities training Allianz Global Investors GmbH, UK Branch, program. He has a B.B.A. from the Frankfurt 199 Bishopsgate, London, EC2M 3TY, United School of Finance and Management, and an Kingdom, +44 (0) 20 7859 9000 M.B.A. with distinction from Warwick Business School. Mr. Kohls is a CFA ITEM 2. EDUCATION BACKGROUND AND charterholder and holds the Financial Risk BUSINESS EXPERIENCE Manager (FRM) designation. Andrew Neville, ACA, ASIP (1972) Director, UK Equity Portfolio Manager Please refer to the descriptions of the licenses Mr. Neville is a portfolio manager and and professional designations listed at the director with Allianz Global Investors, which end of this document. he joined in 2004. He is a member of the European & German Mid/Small Caps team. ITEM 3. DISCIPLINARY INFORMATION Mr. Neville has 20 years of investment- There is no information to report under this industry experience. He previously worked as item. a portfolio manager at Baring Asset Management, trained as a portfolio manager at AIB Govett Asset Management and worked ITEM 4. OTHER BUSINESS ACTIVITIES as an audit manager for Deloitte & Touche. Tobias Kohls is employed by Allianz Global Mr. Neville has a B.S. in civil engineering from Investors GmbH, an advisory affiliate of Imperial College London and is a qualified AllianzGI US. In rendering investment chartered accountant. advisory services with respect to certain strategies to its clients, including U.S. Please refer to the descriptions of the licenses registered investment companies, AllianzGI and professional designations listed at the US uses the resources of Mr. Kohls to provide end of this document. portfolio management services to AllianzGI US clients. In providing such services, Mr. ITEM 3. DISCIPLINARY INFORMATION Kohls is considered an "associated person" of AllianzGI US as that term is defined in the There is no information to report under this Investment Advisers Act of 1940, as amended item. ("Advisers Act"). ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 5. ADDITIONAL COMPENSATION Andrew Neville is employed by Allianz Global There is no information to report under this Investors GmbH, UK Branch, an advisory item. affiliate of AllianzGI US. In rendering investment advisory services with respect to ITEM 6. SUPERVISION the Global and International Small Cap strategies to its clients, including U.S. AllianzGI US supervises and monitors the registered investment companies, AllianzGI advice its portfolio managers provide to US uses the resources Mr. Neville to provide clients through regular reviews of client portfolio management services to AllianzGI trading and positions for adherence to client US clients. In providing such services, Mr. investment guidelines and AllianzGI US’s Neville is considered an "associated person" of internal policies and procedures. The name AllianzGI US as that term is defined in the and contact information for the person Investment Advisers Act of 1940, as amended primarily responsible for supervising Mr. ("Advisers Act"). Kohls’s investment advisory activities is Lucy
17 Allianz Global Investors U.S. LLC
ITEM 5. ADDITIONAL COMPENSATION Durham, UK, and an M.A. from the University of Exeter. He is a CFA charterholder. There is no information to report under this item. Please refer to the descriptions of the licenses ITEM 6. SUPERVISION and professional designations listed at the end of this document. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 3. DISCIPLINARY INFORMATION clients through regular reviews of client trading and positions for adherence to client There is no information to report under this investment guidelines and AllianzGI US’s item. internal policies and procedures. The name and contact information for the person ITEM 4. OTHER BUSINESS ACTIVITIES primarily responsible for supervising Mr. Raymond Chan is employed by Allianz Global Neville’s investment advisory activities is Investors Asia Pacific Limited, an advisory Frank Hansen, Chief Investment Officer, affiliate of AllianzGI US. In rendering European and German Mid/Small Cap Equity, investment advisory services with respect to +49 69 24431 4141. the China Equity strategy to its clients,
including U.S. registered investment
companies, AllianzGI US uses the resources of Raymond Chan Mr. Chan to provide portfolio management Allianz Global Investors Asia Pacific Limited, services to AllianzGI US clients. In providing 27th Floor, ICBC Tower, 3 Garden Road, such services, Mr. Chan is considered an Central, Hong Kong, +852 2238 8888 "associated person" of AllianzGI US as that term is defined in the Investment Advisers ITEM 2. EDUCATION BACKGROUND AND Act of 1940, as amended ("Advisers Act"). BUSINESS EXPERIENCE ITEM 5. ADDITIONAL COMPENSATION Raymond Chan, CFA (1965) Portfolio Manager There is no information to report under this item. Chief Investment Officer Equity, Asia Pacific Mr. Chan is a portfolio manager and CIO ITEM 6. SUPERVISION Equity Asia Pacific with Allianz Global Investors, which he joined in 1998. He is AllianzGI US supervises and monitors the responsible for all AllianzGI investment advice its portfolio managers provide to professionals in Asia (excluding Japan), clients through regular reviews of client reporting to the Global CIO in London. He is trading and positions for adherence to client also the chairman of the Global Balanced investment guidelines and AllianzGI US’s Investment Committee and the Regional internal policies and procedures. The name Portfolio Management Group in Hong Kong. and contact information for the person Mr. Chan has overall responsibility for his primarily responsible for supervising Mr. team’s investment process and performance Chan’s investment advisory activities is Steve and is the lead manager for the firm’s Core Berexa, Global CIO Equity, Global Head of Regional (Asia Pacific ex-Japan equity) Research, (415) 954-5400. products. He has 28 years of investment- industry experience. Mr. Chan was previously an associate director and the head of Greater Christina Chung China team with Barclays Global Investors in Allianz Global Investors Asia Pacific Limited, Hong Kong, where he specialized in Hong 27th Floor, ICBC Tower, 3 Garden Road, Kong, China and Taiwan stock markets, and Central, Hong Kong, +852 2238 8888 managed single-country and regional portfolios. He has a B.A. from the University of
18 Allianz Global Investors U.S. LLC
ITEM 2. EDUCATION BACKGROUND AND investment guidelines and AllianzGI US’s BUSINESS EXPERIENCE internal policies and procedures. The name and contact information for the person Christina Chung, CFA, CMA (1962) primarily responsible for supervising Ms. Senior Portfolio Manager/Lead Portfolio Chung’s investment advisory activities is Manager Raymond Chan, Chief Investment Officer, Ms. Chung is a senior portfolio manager with Asia Pacific, +852 2238 8888. Allianz Global Investors, which she joined in 1998. She heads the Greater China team. Ms. Chung has 28 years of investment-industry Heinrich Ey experience. Before joining the firm, she was a Allianz Global Investors GmbH, senior portfolio manager with Royal Bank of Bockenheimer Landstrasse 42-44, 60323 Canada Investment Management, a portfolio Frankfurt am Main, Germany, +49 69 24431 manager with Search International and an 4141 economist with HSBC Asset Management. Ms. Chung has a B.A. from Brock University and ITEM 2. EDUCATION BACKGROUND AND an M.A. in economics from the University of BUSINESS EXPERIENCE Alberta. Heinrich Ey, CFA (1970) Please refer to the descriptions of the licenses Portfolio Manager, Co-CIO European Mid/Small and professional designations listed at the Cap end of this document. Mr. Ey is a portfolio manager and Co-CIO
European Mid/Small Cap with Allianz Global ITEM 3. DISCIPLINARY INFORMATION Investors, which he joined in 1995. As a There is no information to report under this member of the European Mid/Small Cap item. team, he is responsible for global small cap and international small cap equity mandates. ITEM 4. OTHER BUSINESS ACTIVITIES Mr. Ey has 25 years of investment-industry experience. Earlier in his career, he was Christina Chung is employed by Allianz Global Head of Telemedia; a Global Investors Asia Pacific Limited, an telecommunications and media analyst; a advisory affiliate of AllianzGI US. In rendering manager of European institutional and retail investment advisory services with respect to funds; and a trader for equity, fixed-income the China Equity strategy to its clients, and derivative products. Mr. Ey has an M.B.A. including U.S. registered investment from Baden-Wuerttemberg Cooperative State companies, AllianzGI US uses the resources of University Karlsruhe, Germany. He is a CFA Ms. Chung to provide portfolio management charterholder and holds the DVFA/Certified services to AllianzGI US clients. In providing European Financial Analyst designation. such services, Ms. Chung is considered an "associated person" of AllianzGI US as that Please refer to the descriptions of the licenses term is defined in the Investment Advisers and professional designations listed at the Act of 1940, as amended ("Advisers Act"). end of this document.
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this item. There is no information to report under this item. ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the advice its portfolio managers provide to Heinrich Ey is employed by Allianz Global clients through regular reviews of client Investors GmbH, an advisory affiliate of trading and positions for adherence to client AllianzGI US. In rendering investment advisory services with respect to the
19 Allianz Global Investors U.S. LLC
European Equity strategy to its clients, including U.S. registered investment ITEM 3. DISCIPLINARY INFORMATION companies, AllianzGI US uses the resources of Mr. Ey to provide portfolio management There is no information to report under this services to AllianzGI US clients. In providing item. such services, Mr. Ey is considered an "associated person" of AllianzGI US as that ITEM 4. OTHER BUSINESS ACTIVITIES term is defined in the Investment Advisers Dennis Lai is employed by Allianz Global Act of 1940, as amended ("Advisers Act"). Investors Asia Pacific Ltd., an advisory affiliate of AllianzGI US. In rendering ITEM 5. ADDITIONAL COMPENSATION investment advisory services with respect to There is no information to report under this the Global Small Cap, International Small Cap item. and Little Dragons strategies to its clients, including U.S. registered investment companies, AllianzGI US uses the resources of ITEM 6. SUPERVISION Mr. Lai to provide portfolio management AllianzGI US supervises and monitors the services to AllianzGI US clients. In providing advice its portfolio managers provide to such services, Mr. Lai is considered an clients through regular reviews of client "associated person" of AllianzGI US as that trading and positions for adherence to client term is defined in the Investment Advisers investment guidelines and AllianzGI US’s Act of 1940, as amended ("Advisers Act"). internal policies and procedures. The name and contact information for the person ITEM 5. ADDITIONAL COMPENSATION primarily responsible for supervising Mr. Ey’s There is no information to report under this investment advisory activities is Joerg de item. Vries-Hippen, CIO European Equity, +49 69
24431 4141. ITEM 6. SUPERVISION
AllianzGI US supervises and monitors the advice its portfolio managers provide to Dennis Lai clients through regular reviews of client Allianz Global Investors Asia Pacific Limited, trading and positions for adherence to client 27th Floor, ICBC Tower, 3 Garden Road, investment guidelines and AllianzGI US’s Central, Hong Kong, +852 2238 8888 internal policies and procedures. The name
and contact information for the person ITEM 2. EDUCATION BACKGROUND AND primarily responsible for supervising Mr. BUSINESS EXPERIENCE Lai’s investment advisory activities is Dennis Lai (1962) Raymond Chan, Chief Investment Officer, Director, Senior Portfolio Manager Asia Pacific, +852 2238 8888.
Mr. Lai is a director and senior portfolio manager with Allianz Global Investors, which he joined in 2003. He has 23 years of Chris Leung investment-industry experience. Before Allianz Global Investors Asia Pacific Limited, th joining the firm, he was a research analyst 27 Floor, ICBC Tower, 3 Garden Road, with Cazenove Asia, an investment manager Central, Hong Kong, +852 2238 8888 with Special Assets Ltd. and chief financial officer for Bridestowe Estates Pty Ltd. Before ITEM 2. EDUCATION BACKGROUND AND that, Mr. Lai worked in accounting and BUSINESS EXPERIENCE corporate finance for Anglo Chinese Corporate Finance Ltd., Citicorp and Price Chris Leung, CFA (1971) Waterhouse. He has a master’s degree in Senior Portfolio Manager finance from the University of New South Wales in Sydney, Australia.
20 Allianz Global Investors U.S. LLC
Mr. Leung, CFA, is a senior portfolio manager ITEM 6. SUPERVISION with Allianz Global Investors, which he rejoined in 2014 after previously working AllianzGI US supervises and monitors the with the firm from 2001 to 2006. He is a advice its portfolio managers provide to portfolio manager for the Korea Fund, a clients through regular reviews of client country specialist for Korea and has primary trading and positions for adherence to client responsibility for managing the firm’s Korea investment guidelines and AllianzGI US’s strategies. In his previous role, Mr. Leung internal policies and procedures. The name managed Korean equity mandates and pan- and contact information for the person regional strategies, and provided support to primarily responsible for supervising Mr. the regional portfolio-management team. He Leung’s investment advisory activities is has 22 years of investment-industry Raymond Chan, Chief Investment Officer, experience. Mr. Leung previously worked at Asia Pacific, +852 2238 8888. LAPP Capital, where he specialized in long- short equity investments in Korea and Hong Kong/China. He also previously worked at Koji Nakatsuka AXA Investment Managers in Hong Kong as Allianz Global Investors Japan Co. Ltd., Izumi an investment analyst and portfolio manager, Garden Tower 14F, 6-1, Roppongi I-chome, managing Korean country funds. Mr. Leung Minato-ku, Tokyo106-6014, Japan, +81 3 6229 has a B.A.P.S.C. in civil engineering and an 0200 M.B.A. from the University of British Columbia in Canada. He is a CFA ITEM 2. EDUCATION BACKGROUND AND charterholder. BUSINESS EXPERIENCE
Please refer to the descriptions of the licenses Koji Nakatsuka, CFA, CMA (1974) and professional designations listed at the Senior Portfolio Manager end of this document. Mr. Nakatsuka is a senior portfolio manager
and a director with Allianz Global Investors, ITEM 3. DISCIPLINARY INFORMATION which he joined in 2005. He is a member of There is no information to report under this the Japan Equity team. Mr. Nakatsuka has 19 item. years of investment-industry experience. He previously managed a mid/small cap ITEM 4. OTHER BUSINESS ACTIVITIES investment trust at Goldman Sachs Asset Management. Before that, Mr. Nakatsuka was Chris Leung is employed by Allianz Global at Schroder Investment Management Japan Investors Asia Pacific Limited, an advisory as an equity analyst for mid/small caps. He affiliate of AllianzGI US. In rendering has a B.A. in law from Sophia University. Mr. investment advisory services with respect to Nakatsuka is a CFA charterholder and holds the Korean Equity strategy to its clients, the CMA designation. including U.S. registered investment companies. AllianzGI US uses the resources of Please refer to the descriptions of the licenses Mr. Leung to provide portfolio management services to AllianzGI US clients. In providing and professional designations listed at the such services, Mr. Leung is considered an end of this document. "associated person" of AllianzGI US as that term is defined in the Investment Advisers ITEM 3. DISCIPLINARY INFORMATION Act of 1940, as amended ("Advisers Act"). There is no information to report under this
item. ITEM 5. ADDITIONAL COMPENSATION
There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES item. Koji Nakatsuka is employed by Allianz Global
Investors Japan Co., Ltd. (“AllianzGI JP”), an
advisory affiliate of AllianzGI US. In
21 Allianz Global Investors U.S. LLC
rendering investment advisory services with Management Group and a portfolio manager respect to the Global and International Small for AllianzGI European Equity Fund. He has Cap strategies to its clients, including U.S. 30 years of investment-industry experience. registered investment companies, AllianzGI Mr. Dwane previously worked at JP Morgan US uses the resources of Mr. Nakatsuka to Investment Management as a UK and provide portfolio management services to European specialist portfolio manager; at AllianzGI US clients. In providing such Fleming Investment Management; and at services, Mr. Nakatsuka is considered an Kleinwort Benson Investment Management "associated person" of AllianzGI US as that as an analyst and a fund manager. He has a term is defined in the Investment Advisers B.A. in classics from Durham University and Act of 1940, as amended ("Advisers Act"). is a member of the Institute of Chartered Accountants. ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this item. There is no information to report under this item. ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the advice its portfolio managers provide to Neil Dwane is employed by Allianz Global clients through regular reviews of client Investors GmbH, an advisory affiliate of trading and positions for adherence to client AllianzGI US. In rendering investment investment guidelines and AllianzGI US’s advisory services with respect to certain internal policies and procedures. The name strategies to its clients, including U.S. and contact information for the person registered investment companies, AllianzGI primarily responsible for supervising Mr. US uses the resources of Mr. Dwane to provide Nakatsuka’s investment advisory activities is portfolio management services to AllianzGI Kazuyuki Terao, Chief Investment Officer, US clients. In providing such services, Mr. Japan, +81 3 6229 0200. Dwane is considered an "associated person" of AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). Neil Dwane Allianz Global Investors GmbH, ITEM 5. ADDITIONAL COMPENSATION Bockenheimer Landstrasse 42-44, 60323 Frankfurt am Main, Germany, +49 69 24431 There is no information to report under this 4141 item.
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the advice its portfolio managers provide to Neil Dwane (1962) clients through regular reviews of client Managing Director, Portfolio Manager, Global trading and positions for adherence to client Strategist investment guidelines and AllianzGI US’s Mr. Dwane is a portfolio manager, a internal policies and procedures. The name managing director and the Global Strategist and contact information for the person with Allianz Global Investors, which he joined primarily responsible for supervising Mr. in 2001. He coordinates and chairs the Global Dwane’s investment advisory activities is Policy Committee, which formulates the Steve Berexa, Global CIO Equity, Global Head firm’s house view, leads the firm’s bi-annual of Research, (415) 954-5400. Investment Forums and communicates the firm’s investment outlook through articles and press appearances. Mr. Dwane is a member of AllianzGI’s Equity Investment
22 Allianz Global Investors U.S. LLC
Joerg de Vries-Hippen ITEM 5. ADDITIONAL COMPENSATION Allianz Global Investors GmbH, There is no information to report under this Bockenheimer Landstrasse 42-44, 60323 item. Frankfurt am Main, Germany, +49 69 24431 4141 ITEM 6. SUPERVISION
AllianzGI US supervises and monitors the ITEM 2. EDUCATION BACKGROUND AND advice its portfolio managers provide to BUSINESS EXPERIENCE clients through regular reviews of client Joerg de Vries-Hippen, CFA, DVFA/CIIA (1966) trading and positions for adherence to client Managing Director, Senior Portfolio Manager investment guidelines and AllianzGI US’s CIO Equity Europe internal policies and procedures. The name and contact information for the person Mr. de Vries-Hippen is a senior portfolio primarily responsible for supervising Mr. de manager, a managing director and Head of Vries-Hippen’s investment advisory activities Equity Investment, Frankfurt with Allianz is Neil Dwane, Chief Investment Officer, Global Investors, which he joined in 1992. He Europe, +49 69 24431 4141. is Investment Style Leader of the European Dividend and Value Equity team, responsible for the firm’s European Equity Dividend and Swiss Equity Market strategies. Previously, Frank Hansen Mr. de Vries-Hippen was a junior portfolio Allianz Global Investors GmbH, manager for Japanese equities. He has 27 Bockenheimer Landstrasse 42-44, 60323 years of investment-industry experience. Mr. Frankfurt am Main, Germany, +49 69 24431 de Vries-Hippen has an undergraduate 4141 degree and an M.B.A. in banking/financial system and accountancy from the University ITEM 2. EDUCATION BACKGROUND AND of Mannheim. He holds the DVFA/CIIA BUSINESS EXPERIENCE designations. Frank Hansen, CFA (1958) Please refer to the descriptions of the licenses Chief Investment Officer, European and German and professional designations listed at the Mid/Small Cap Equity end of this document. Mr. Hansen is a portfolio manager with Allianz Global Investors, which he joined in ITEM 3. DISCIPLINARY INFORMATION 1999. He is a member of the European & German Mid/Small Caps team. Mr. Hansen There is no information to report under this has 29 years of investment-industry item. experience. He previously worked at UBS
Frankfurt in the private banking division; at ITEM 4. OTHER BUSINESS ACTIVITIES UBS Zurich as a portfolio manager for Joerg de Vries-Hippen is employed by Allianz institutional accounts and a financial analyst Global Investors GmbH, an advisory affiliate for German small caps; and at Dresdner Bank of AllianzGI US. In rendering investment in the institutional asset-management advisory services with respect to the division, with special responsibility for European Equity strategy to its clients, European small caps. Mr. Hansen has an including U.S. registered investment M.B.A. from the University of Hamburg and is companies, AllianzGI US uses the resources of a CFA charterholder. Mr. de Vries-Hippen to provide portfolio management services to AllianzGI US clients. Please refer to the descriptions of the licenses In providing such services, Mr. de Vries- and professional designations listed at the Hippen is considered an "associated person" end of this document. of AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act").
23 Allianz Global Investors U.S. LLC
ITEM 3. DISCIPLINARY INFORMATION Mr. Happe is a portfolio manager with Allianz Global Investors, which he joined in 2013. As There is no information to report under this CIO Insurance Related Strategies, he leads a item. team that manages equity and fixed-income portfolios for Allianz and other insurers. Mr. ITEM 4. OTHER BUSINESS ACTIVITIES Happe was previously the head of the global Frank Hansen is employed by Allianz Global fixed-income strategy team, responsible for Investors GmbH, an advisory affiliate of managing global fixed-income portfolios for AllianzGI US. In rendering investment Allianz. He has 25 years of investment advisory services with respect to the Global experience. Before joining Allianz in 2004, Mr. and International Small Cap strategies to its Happe worked at McKinsey & Co. in Munich; clients, including U.S. registered investment at Bank Boston as the head of non-USD fixed companies, AllianzGI US uses the resources of income derivatives trading; and at Morgan Mr. Hansen to provide portfolio management Stanley in private equity and fixed income services to AllianzGI US clients. In providing derivatives structuring and trading in New such services, Mr. Hansen is considered an York, Frankfurt and London. He has a B.S.E in "associated person" of AllianzGI US as that civil engineering and operations research, term is defined in the Investment Advisers summa cum laude, from Princeton University Act of 1940, as amended ("Advisers Act"). and studied at the University of Stuttgart on a Fulbright scholarship. Mr. Happe also has an M.B.A. with distinction from INSEAD. ITEM 5. ADDITIONAL COMPENSATION
There is no information to report under this ITEM 3. DISCIPLINARY INFORMATION item. There is no information to report under this item. ITEM 6. SUPERVISION
AllianzGI US supervises and monitors the ITEM 4. OTHER BUSINESS ACTIVITIES advice its portfolio managers provide to clients through regular reviews of client Karl Happe is employed by Allianz Global trading and positions for adherence to client Investors Europe GmbH, an advisory affiliate investment guidelines and AllianzGI US’s of AllianzGI US. In rendering investment internal policies and procedures. The name advisory services with respect to certain and contact information for the person strategies to its clients, including U.S. primarily responsible for supervising Mr. registered investment companies, AllianzGI Hansen’s investment advisory activities is US uses the resources of Mr. Happe to provide Joerg de Vries-Hippen, CIO European Equity, portfolio management services to AllianzGI +49 69 24431 4141. US clients. In providing such services, Mr. Happe is considered an "associated person" of AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended Karl Happe ("Advisers Act"). Allianz Global Investors GmbH, Bockenheimer Landstrasse 42-44, 60323 ITEM 5. ADDITIONAL COMPENSATION Frankfurt am Main, Germany, +49 69 24431 4141 There is no information to report under this item.
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the Karl Happe (1969) advice its portfolio managers provide to Portfolio Manager, Chief Investment Officer, clients through regular reviews of client Insurance Related Strategies trading and positions for adherence to client investment guidelines and AllianzGI US’s
24 Allianz Global Investors U.S. LLC
internal policies and procedures. The name provide portfolio management services to and contact information for the person AllianzGI US clients. In providing such primarily responsible for supervising Mr. services, Mr. Teloeken is considered an Happe’s investment advisory activities is "associated person" of AllianzGI US as that Andreas Utermann, Member, Management term is defined in the Investment Advisers Board of Allianz Global Investors GmbH and Act of 1940, as amended ("Advisers Act"). Global Chief Investment Officer for Allianz Global Investors, +44 (0)20 7859 9000. ITEM 5. ADDITIONAL COMPENSATION
There is no information to report under this item. Klaus Teloeken Allianz Global Investors GmbH, ITEM 6. SUPERVISION Bockenheimer Landstrasse 42-44, 60323 Frankfurt am Main, Germany, +49 69 24431 AllianzGI US supervises and monitors the 4141 advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client ITEM 2. EDUCATION BACKGROUND AND investment guidelines and AllianzGI US’s BUSINESS EXPERIENCE internal policies and procedures. The name Dr. Klaus Teloeken (1966) and contact information for the person Portfolio Manager, Co-Chief Investment Officer, primarily responsible for supervising Mr. Teloeken’s investment advisory activities is Systematic Equity Neil Dwane, Chief Investment Officer Europe Dr. Teloeken is Co-CIO Systematic Equity with for Allianz Global Investors, +49 69 24431 Allianz Global Investors, which he joined in 4141. 1996. As the co-chief investment officer of the Systematic Equity team, he oversees more than USD 31 billion in assets under management. Dr. Teloeken is responsible for Matthias Born the team’s development and the Allianz Global Investors GmbH, management of active investment strategies. Bockenheimer Landstrasse 42-44, 60323 He was previously a quantitative analyst for Frankfurt am Main, Germany, +49 69 24431 the firm. Dr. Teloeken has 21 years of 4141 investment-industry experience. He is the author of several publications on probability ITEM 2. EDUCATION BACKGROUND AND theory and statistics as well as performance BUSINESS EXPERIENCE measurement and investing. Dr. Teloeken studied mathematics and computer science Matthias Born (1974) and has a master’s degree and a doctorate Senior Portfolio Manager, European Equities from the University of Dortmund, Germany. Mr. Born is a senior portfolio manager and a managing director with Allianz Global ITEM 3. DISCIPLINARY INFORMATION Investors, which he joined in 2001. As a There is no information to report under this member of the European Equities team, he is item. co-leader of the Growth Investment Style team and the lead portfolio manager of the ITEM 4. OTHER BUSINESS ACTIVITIES Euroland Equity Growth strategies. Mr. Born also manages the flagship German Equity Dr. Klaus Teloeken is employed by Allianz and Concentra funds. He previously managed Global Investors GmbH, an advisory affiliate European small-cap portfolios at Allianz of AllianzGI US. In rendering investment Global Investors. Mr. Born has 16 years of advisory services with respect to certain investment-industry experience and strategies to its clients, including U.S. previously worked in Dresdner Bank’s global registered investment companies, AllianzGI corporate finance division. He has a degree in US uses the resources of Mr. Teloeken to business from the University of Würzburg.
25 Allianz Global Investors U.S. LLC
Mr. Fruschki is an analyst, a lead portfolio ITEM 3. DISCIPLINARY INFORMATION manager and Director of Equity Research – Europe with Allianz Global Investors, which There is no information to report under this he joined in 2005. He is the sector research item. head of the Global Resources team and also has research responsibilities for European ITEM 4. OTHER BUSINESS ACTIVITIES industrial companies engaged in water- Matthias Born is employed by Allianz Global related industries and clean technology. Mr. Investors GmbH, an advisory affiliate of Fruschki has 13 years of investment-industry AllianzGI US. In rendering investment experience. He previously held various legal advisory services with respect to the positions in Berlin and also worked as a European Equity strategy to its clients, consultant in the corporate-finance practice including U.S. registered investment at PriceWaterhouseCoopers in Hamburg, companies, AllianzGI US uses the resources of Germany. Mr. Fruschki has an M.B.A., focused Mr. Born to provide portfolio management on investment management, from the services to AllianzGI US clients. In providing University of Western Sydney. He also has a such services, Mr. Born is considered an law degree from Humboldt University, Berlin "associated person" of AllianzGI US as that and passed his judicial bar exam in 2004. Mr. term is defined in the Investment Advisers Fruschki is a CFA charterholder. Act of 1940, as amended ("Advisers Act"). Please refer to the descriptions of the licenses ITEM 5. ADDITIONAL COMPENSATION and professional designations listed at the end of this document. There is no information to report under this item. ITEM 3. DISCIPLINARY INFORMATION
ITEM 6. SUPERVISION There is no information to report under this item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 4. OTHER BUSINESS ACTIVITIES clients through regular reviews of client trading and positions for adherence to client Andreas Fruschki is employed by Allianz investment guidelines and AllianzGI US’s Global Investors GmbH, an advisory affiliate internal policies and procedures. The name of AllianzGI US. In rendering investment and contact information for the person advisory services with respect to the Global primarily responsible for supervising Mr. Water and Global Ecotrends strategies to its Born’s investment advisory activities is Joerg clients, including U.S. registered investment de Vries-Hippen, CIO European Equity, +49- companies, AllianzGI US uses the resources of 69-13900. Mr. Fruschki to provide portfolio management services to AllianzGI US clients. In providing such services, Mr. Fruschki is Andreas Fruschki considered an "associated person" of AllianzGI US as that term is defined in the Allianz Global Investors GmbH, Investment Advisers Act of 1940, as amended Bockenheimer Landstrasse 42-44, 60323 ("Advisers Act"). Frankfurt am Main, Germany, +49 69 24431
4141 ITEM 5. ADDITIONAL COMPENSATION ITEM 2. EDUCATION BACKGROUND AND There is no information to report under this BUSINESS EXPERIENCE item.
Andreas Fruschki, CFA (1976) ITEM 6. SUPERVISION Lead Portfolio Manager, Analyst, Sector Research Head, Global Resources Team, AllianzGI US supervises and monitors the Director of Equity Research - Europe advice its portfolio managers provide to
26 Allianz Global Investors U.S. LLC
clients through regular reviews of client considered an "associated person" of trading and positions for adherence to client AllianzGI US as that term is defined in the investment guidelines and AllianzGI US’s Investment Advisers Act of 1940, as amended internal policies and procedures. The name ("Advisers Act"). and contact information for the person primarily responsible for supervising Mr. ITEM 5. ADDITIONAL COMPENSATION Fruschki’s investment advisory activities is Gunnar Millar, Head of European Research, There is no information to report under this +49-69-13900. item.
ITEM 6. SUPERVISION Bjoern Mehrmann AllianzGI US supervises and monitors the Allianz Global Investors GmbH, advice its portfolio managers provide to Bockenheimer Landstrasse 42-44, 60323 clients through regular reviews of client Frankfurt am Main, Germany, +49 69 24431 trading and positions for adherence to client 4141 investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 2. EDUCATION BACKGROUND AND and contact information for the person primarily responsible for supervising Mr. BUSINESS EXPERIENCE Mehrmann’s investment advisory activities is Bjoern Mehrmann (1975) Joerg de Vries-Hippen, CIO European Equity, Senior Portfolio Manager +49 69 24431 4141. Mr. Mehrmann is a portfolio manager with Allianz Global Investors, which he joined in 2001. He is a member of the European & Michael Heldmann German Mid/Small Cap team. Mr. Mehrmann 555 Mission Street, Suite 1700, San Francisco, has 17 years of investment-industry CA 94105, (415) 954-5400 experience. His other work experience includes internships at ITEM 2. EDUCATION BACKGROUND AND PricewaterhouseCoopers (Frankfurt), American Heritage Funds (New York) and BUSINESS EXPERIENCE Deutsche Bank (London). He has a B.S. in Michael Heldmann, Ph.D., CFA (1976) computer science from James Madison Director, Head of Best Styles North America, University and a master´s in business Senior Portfolio Manager, Best Styles US Equity administration from EBS International Mr. Heldmann is a senior portfolio manager, University Schloss Reichartshausen. a director and Head of Best Styles North America with Allianz Global Investors, which ITEM 3. DISCIPLINARY INFORMATION he joined in 2007. He is responsible for There is no information to report under this developing the Best Styles US Equity team item. while building on its research capabilities. Mr. Heldmann previously managed Best Styles Emerging Markets and Best Styles ITEM 4. OTHER BUSINESS ACTIVITIES Europe Equity products. He has 10 years of Bjoern Mehrmann is employed by Allianz investment-industry experience. Before Global Investors GmbH, an advisory affiliate joining the firm, Mr. Heldmann worked for of AllianzGI US. In rendering investment the international laboratory CERN in Geneva, advisory services with respect to the Global Switzerland, as a particle physics researcher. and International Small Cap strategies to its He has a master’s degree in physics from the clients, including U.S. registered investment University of Mainz, Germany, and a Ph.D. companies, AllianzGI US uses the resources of from the University of Freiburg, Germany. He Mr. Mehrmann to provide portfolio is a CFA charterholder. management services to AllianzGI US clients. In providing such services, Mr. Mehrmann is
27 Allianz Global Investors U.S. LLC
Please refer to the descriptions of the licenses Portfolio Manager, Best Styles Global and professional designations listed at the Equity/Stable Growth Europe end of this document. Mr. Mulder is a portfolio manager with
Allianz Global Investors, which he joined in ITEM 3. DISCIPLINARY INFORMATION 2008. He is a member of the Systematic There is no information to report under this Equity team and manages Best Styles Global item. Equity mandates. Mr. Mulder is also responsible for the team’s Stable Growth ITEM 4. OTHER BUSINESS ACTIVITIES Europe strategy. He previously worked for IDS, an Allianz affiliate, specializing in equity- Dr. Michael Heldmann is employed by Allianz portfolio performance and risk analytics. Mr. Global Investors GmbH, an advisory affiliate Mulder has 18 years of investment-industry of AllianzGI US. In rendering investment experience. He has a master’s degree in advisory services with respect to certain business administration from Erasmus strategies to its clients, including U.S. University Rotterdam in the Netherlands. Mr. registered investment companies, AllianzGI Mulder is a CFA charterholder. US uses the resources of Mr. Heldmann to provide portfolio management services to Please refer to the descriptions of the licenses AllianzGI US clients. In providing such and professional designations listed at the services, Mr. Heldmann is considered an end of this document. "associated person" of AllianzGI US as that term is defined in the Investment Advisers ITEM 3. DISCIPLINARY INFORMATION Act of 1940, as amended ("Advisers Act"). There is no information to report under this ITEM 5. ADDITIONAL COMPENSATION item.
There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES item. Erik Mulder is employed by Allianz Global ITEM 6. SUPERVISION Investors GmbH, an advisory affiliate of AllianzGI US. In rendering investment AllianzGI US supervises and monitors the advisory services with respect to certain advice its portfolio managers provide to strategies to its clients, including U.S. clients through regular reviews of client registered investment companies, AllianzGI trading and positions for adherence to client US uses the resources of Mr. Mulder to investment guidelines and AllianzGI US’s provide portfolio management services to internal policies and procedures. The name AllianzGI US clients. In providing such and contact information for the persons services, Mr. Mulder is considered an primarily responsible for supervising Mr. "associated person" of AllianzGI US as that Heldmann’s investment advisory activities is term is defined in the Investment Advisers Steve Berexa, Global CIO Equity, Global Head Act of 1940, as amended ("Advisers Act"). of Research, (415) 954-5400.
ITEM 5. ADDITIONAL COMPENSATION
There is no information to report under this Erik Mulder item. Allianz Global Investors GmbH, Bockenheimer Landstrasse 42-44, 60323 ITEM 6. SUPERVISION Frankfurt am Main, Germany, +49 69 24431 4141 AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 2. EDUCATION BACKGROUND AND clients through regular reviews of client BUSINESS EXPERIENCE trading and positions for adherence to client investment guidelines and AllianzGI US’s Erik Mulder, CFA (1972) internal policies and procedures. The name
28 Allianz Global Investors U.S. LLC
and contact information for the persons US uses the resources of Mr. Tafelmayer to primarily responsible for supervising Mr. provide portfolio management services to Mulder’s investment advisory activities are AllianzGI US clients. In providing such Dr. Benedikt Henne, CIO Systematic Equity of services, Mr. Tafelmayer is considered an Allianz Global Investors, +49 69 24431 4141. "associated person" of AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). Rainer Tafelmayer ITEM 5. ADDITIONAL COMPENSATION Allianz Global Investors GmbH, Bockenheimer Landstrasse 42-44, 60323 There is no information to report under this Frankfurt am Main, Germany, +49 69 24431 item. 4141 ITEM 6. SUPERVISION ITEM 2. EDUCATION BACKGROUND AND AllianzGI US supervises and monitors the BUSINESS EXPERIENCE advice its portfolio managers provide to Dr. Rainer Tafelmayer, FRM (1961) clients through regular reviews of client Senior Portfolio Manager, Systematic Equity trading and positions for adherence to client investment guidelines and AllianzGI US’s Dr. Tafelmayer is a portfolio manager with internal policies and procedures. The name Allianz Global Investors, which he joined in and contact information for the persons 2002. He is a member of the Systematic primarily responsible for supervising Mr. Equity team and manages Best Styles Global Tafelmayer’s investment advisory activities Equity and Equity Enhanced mandates. Dr. are Dr. Klaus Teloeken and Dr. Benedikt Tafelmayer was previously in charge of Henne, CIOs Systematic Equity of Allianz development and implementation of Global Investors, +49 69 24431 4141. statistical arbitrage strategies. He has 23 years of investment-industry experience. Before joining the firm, Dr. Tafelmayer worked as a business consultant in finance Karsten Niemann and risk management, and was a researcher Allianz Global Investors GmbH, in operations research at the Technical Bockenheimer Landstrasse 42-44, 60323 University of Chemnitz, Germany. Dr. Frankfurt am Main, Germany, +49 69 24431 Tafelmayer has a master’s degree and a 4141 doctorate in physics from the University of Heidelberg, Germany. He holds the Financial ITEM 2. EDUCATION BACKGROUND AND Risk Manager (FRM) designation. BUSINESS EXPERIENCE
Please refer to the descriptions of the licenses Karsten Niemann, CFA (1972) and professional designations listed at the Portfolio Manager, Best Styles Europe end of this document. Equity/High Dividend Europe, Systematic Equity Mr. Niemann is a portfolio manager with ITEM 3. DISCIPLINARY INFORMATION Allianz Global Investors, which he joined in There is no information to report under this 1998. He is a member of the Systematic item. Equity team. Mr. Niemann manages Best Styles Europe Equity and European High ITEM 4. OTHER BUSINESS ACTIVITIES Dividend mandates, overseeing more than $9 billion in assets under management. He Dr. Rainer Tafelmayer is employed by Allianz previously managed Best Styles Global Equity Global Investors GmbH, an advisory affiliate and Best Styles Euroland Equity mandates for of AllianzGI US. In rendering investment the firm; before that, he was a quantitative advisory services with respect to certain analyst. Mr. Niemann has 20 years of strategies to its clients, including U.S. investment-industry experience. He has a registered investment companies, AllianzGI master’s degree in economics from the
29 Allianz Global Investors U.S. LLC
University of Bonn, Germany, and is a CFA charterholder. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Please refer to the descriptions of the licenses and professional designations listed at the Kai Hirschen, Ph.D, CFA, CAIA, FRM (1976) end of this document. Portfolio Manager, High Dividend Global, Systematic Equity Mr. Hirschen is a portfolio manager with ITEM 3. DISCIPLINARY INFORMATION Allianz Global Investors, which he joined in There is no information to report under this 2009. He is a member of the Systematic item. Equity team and manages High Dividend Global mandates, including enhanced ITEM 4. OTHER BUSINESS ACTIVITIES dividend strategies with an option overlay. Mr. Hirschen has 12 years of investment- Karsten Niemann is employed by Allianz industry experience. He previously worked Global Investors GmbH, an advisory affiliate for a leading international consultancy in risk of AllianzGI US. In rendering investment management and risk modeling. Mr. advisory services with respect to certain Hirschen has a master’s degree in strategies to its clients, including U.S. mathematics from the University of registered investment companies, AllianzGI Hannover, Germany, a master’s degree in US uses the resources of Mr. Niemann to finance and accounting from the University provide portfolio management services to of Frankfurt, Germany, and a doctorate from AllianzGI US clients. In providing such the University of Darmstadt, Germany. He is a services, Mr. Niemann is considered an CFA charterholder and a CAIA charterholder, "associated person" of AllianzGI US as that and holds the Financial Risk Manager term is defined in the Investment Advisers designation. Act of 1940, as amended ("Advisers Act"). Please refer to the descriptions of the licenses ITEM 5. ADDITIONAL COMPENSATION and professional designations listed at the There is no information to report under this end of this document. item.
ITEM 3. DISCIPLINARY INFORMATION ITEM 6. SUPERVISION There is no information to report under this AllianzGI US supervises and monitors the item. advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client ITEM 4. OTHER BUSINESS ACTIVITIES investment guidelines and AllianzGI US’s Kai Hirschen is employed by Allianz Global internal policies and procedures. The name Investors GmbH, an advisory affiliate of and contact information for the persons AllianzGI US. In rendering investment primarily responsible for supervising Mr. advisory services with respect to certain Niemann’s investment advisory activities are strategies to its clients, including U.S. Dr. Klaus Teloeken and Dr. Benedikt Henne, registered investment companies, AllianzGI CIOs Systematic Equity of Allianz Global US uses the resources of Mr. Hirschen to Investors, +49 69 24431 4141. provide portfolio management services to AllianzGI US clients. In providing such services, Mr. Hirschen is considered an Kai Hirschen "associated person" of AllianzGI US as that term is defined in the Investment Advisers Allianz Global Investors GmbH, Act of 1940, as amended ("Advisers Act"). Bockenheimer Landstrasse 42-44, 60323
Frankfurt am Main, Germany, +49 69 24431 4141 ITEM 5. ADDITIONAL COMPENSATION
30 Allianz Global Investors U.S. LLC
There is no information to report under this ITEM 3. DISCIPLINARY INFORMATION item. There is no information to report under this
item. ITEM 6. SUPERVISION
AllianzGI US supervises and monitors the ITEM 4. OTHER BUSINESS ACTIVITIES advice its portfolio managers provide to clients through regular reviews of client Gregor Rudolph-Dengel is employed by trading and positions for adherence to client Allianz Global Investors GmbH, an advisory investment guidelines and AllianzGI US’s affiliate of AllianzGI US. In rendering internal policies and procedures. The name investment advisory services with respect to and contact information for the persons certain strategies to its clients, including U.S. primarily responsible for supervising Mr. registered investment companies, AllianzGI Hirschen’s investment advisory activities are US uses the resources of Mr. Rudolph-Dengel Dr. Klaus Teloeken, CIO Systematic Equity of to provide portfolio management services to Allianz Global Investors, +49 69 24431 4141. AllianzGI US clients. In providing such services, Mr. Rudolph-Dengel is considered an "associated person" of AllianzGI US as that term is defined in the Investment Advisers Gregor Rudolph-Dengel Act of 1940, as amended ("Advisers Act"). Allianz Global Investors GmbH, Bockenheimer Landstrasse 42-44, 60323 ITEM 5. ADDITIONAL COMPENSATION Frankfurt am Main, Germany, +49 69 24431 4141 There is no information to report under this item.
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the Gregor Rudolph-Dengel, CFA (1983) advice its portfolio managers provide to Vice President, Portfolio Manager clients through regular reviews of client Mr. Rudolph-Dengel is a portfolio manager trading and positions for adherence to client and a vice president with Allianz Global investment guidelines and AllianzGI US’s Investors, which he joined in 2007. As a internal policies and procedures. The name member of the European Equity team, he is and contact information for the person responsible for the European Equity Dividend primarily responsible for supervising Mr. strategy; he is also the lead portfolio manager Rudolph-Dengel’s investment advisory of the Europe Equity Value strategy. Mr. activities is Joerg de Vries-Hippen, CIO European Equity, +49 69 24431 4141. Rudolph-Dengel previously participated in the firm’s graduate program, where he worked with the Fund of Funds, Emerging Markets and Multi Asset teams. He has 11 Thorsten Winkelmann years of investment-industry experience. Mr. Allianz Global Investors GmbH, Bockenheimer Landstrasse 42-44, 60323 Rudolph-Dengel has a bachelor’s degree in Frankfurt am Main, Germany, +49 69 24431 European business from the European School 4141 of Business in Reutlingen, Germany, in conjunction with Dublin City University. He is ITEM 2. EDUCATION BACKGROUND AND a CFA charterholder. BUSINESS EXPERIENCE
Please refer to the descriptions of the licenses Thorsten Winkelmann (1973) and professional designations listed at the Managing Director, Senior Portfolio Manager, end of this document. European Equities Mr. Winkelmann is a senior portfolio manager and a managing director with
31 Allianz Global Investors U.S. LLC
Allianz Global Investors, which he joined in 2001. As a member of the European Equities team, he is co-leader of the Growth Martin Hermann Investment Style team and the lead portfolio Allianz Global Investors GmbH, manager of the Europe Equity Growth Bockenheimer Landstrasse 42-44, 60323 strategies. Mr. Winkelmann was previously a Frankfurt am Main, Germany, +49 69 24431 portfolio manager with the European Equity 4141 Core team and the Multi Asset team, where he was responsible for managing the equity ITEM 2. EDUCATION BACKGROUND AND portions of European balanced products. He BUSINESS EXPERIENCE has 22 years of investment-industry Martin Hermann, CFA (1984) experience. Mr. Winkelmann has a master’s degree in economics from the University of Portfolio Manager, European Equities Bonn. Mr. Hermann is a portfolio manager with Allianz Global Investors, which he joined in 2010. As a member of the European Equities ITEM 3. DISCIPLINARY INFORMATION team, he is involved in the management of There is no information to report under this the Europe Equity Growth portfolios and the item. International Equity Growth strategy. Mr. Hermann was previously a portfolio ITEM 4. OTHER BUSINESS ACTIVITIES management associate for the Emerging Markets team. He has nine years of Thorsten Winkelmann is employed by Allianz investment-industry experience. Mr. Global Investors GmbH, an advisory affiliate Hermann has a master’s degree in corporate of AllianzGI US. In rendering investment finance and investment analysis from the advisory services with respect to the University of Vienna. He is a CFA European Equity strategy to its clients, charterholder. including U.S. registered investment companies, AllianzGI US uses the resources of Please refer to the descriptions of the licenses Mr. Winkelmann to provide portfolio and professional designations listed at the management services to AllianzGI US clients. end of this document. In providing such services, Mr. Winkelmann is considered an "associated person" of AllianzGI US as that term is defined in the ITEM 3. DISCIPLINARY INFORMATION Investment Advisers Act of 1940, as amended There is no information to report under this ("Advisers Act"). item.
ITEM 5. ADDITIONAL COMPENSATION ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this Martin Hermann is employed by Allianz item. Global Investors GmbH, an advisory affiliate of AllianzGI US. In rendering investment ITEM 6. SUPERVISION advisory services with respect to certain AllianzGI US supervises and monitors the strategies to its clients, including U.S. advice its portfolio managers provide to registered investment companies, AllianzGI clients through regular reviews of client US uses the resources of Mr. Hermann to trading and positions for adherence to client provide portfolio management services to investment guidelines and AllianzGI US’s AllianzGI US clients. In providing such internal policies and procedures. The name services, Mr. Hermann is considered an and contact information for the person "associated person" of AllianzGI US as that primarily responsible for supervising Mr. term is defined in the Investment Advisers Winkelmann’s investment advisory activities Act of 1940, as amended ("Advisers Act"). is Joerg de Vries-Hippen, CIO European Equity, +49 69 24431 4141.
32 Allianz Global Investors U.S. LLC
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this item. item.
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the Andreas Hildebrand is employed by Allianz advice its portfolio managers provide to Global Investors GmbH, an advisory affiliate clients through regular reviews of client of AllianzGI US. In rendering investment trading and positions for adherence to client advisory services with respect to the investment guidelines and AllianzGI US’s European Equity strategy to its clients, internal policies and procedures. The name including U.S. registered investment and contact information for the person companies, AllianzGI US uses the resources of primarily responsible for supervising Mr. Mr. Hildebrand to provide portfolio Hermann’s investment advisory activities is management services to AllianzGI US clients. Joerg de Vries-Hippen, CIO European Equity, In providing such services, Mr. Hildebrand is +49 69 24431 4141. considered an "associated person" of AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). Andreas Hildebrand Allianz Global Investors GmbH, ITEM 5. ADDITIONAL COMPENSATION Bockenheimer Landstrasse 42-44, 60323 Frankfurt am Main, Germany, +49 69 24431 There is no information to report under this 4141 item.
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the Andreas Hildebrand, CFA (1982) advice its portfolio managers provide to Portfolio Manager, European Equities clients through regular reviews of client trading and positions for adherence to client Mr. Hildebrand is a portfolio manager and a investment guidelines and AllianzGI US’s vice president with Allianz Global Investors, internal policies and procedures. The name which he joined in 2007. As a member of the and contact information for the person European Equities team, he is involved in the primarily responsible for supervising Mr. management of the Europe Equity Growth Hildebrand’s investment advisory activities is portfolios. Mr. Hildebrand previously worked Joerg de Vries-Hippen, CIO European Equity, in the firm’s equity-research department +49 69 24431 4141. covering European health-care companies.
He has 10 years of investment-industry experience. Mr. Hildebrand has a master’s degree in economics from Ludwig Robert Hofmann Maximilians University, Munich, with Allianz Global Investors GmbH, additional studies at University Libre de Bockenheimer Landstrasse 42-44, 60323 Bruxelles and Solvay Business School. He is a Frankfurt am Main, Germany, +49 69 24431 CFA charterholder. 4141
Please refer to the descriptions of the licenses ITEM 2. EDUCATION BACKGROUND AND and professional designations listed at the BUSINESS EXPERIENCE end of this document. Robert Hofman, CFA (1977) Director, Portfolio Manager, European Equities Mr. Hofmann is a portfolio manager and a vice president with Allianz Global Investors,
33 Allianz Global Investors U.S. LLC
which he joined in 2005. As a member of the European Equities team, he is deputy FIXED INCOME portfolio manager for the Europe Equity Growth strategy and lead portfolio manager Douglas G. Forsyth for the International Equity Growth strategy. 600 West Broadway, 29th Floor, San Diego, CA Mr. Hofmann has 13 years of investment- 92101, (619) 687-8000 industry experience. He has an M.B.A. in finance and accounting from the University ITEM 2. EDUCATION BACKGROUND AND of Frankfurt am Main. Mr. Hofmann is a CFA BUSINESS EXPERIENCE charterholder. Douglas G. Forsyth, CFA (1969) Please refer to the descriptions of the licenses Managing Director, Portfolio Manager, Chief and professional designations listed at the Investment Officer, US Income & Growth end of this document. Strategies Mr. Forsyth is a portfolio manager, a ITEM 3. DISCIPLINARY INFORMATION managing director and CIO US Income & There is no information to report under this Growth Strategies team with AllianzGI US, item. which he joined in 1994. He is the head of the firm’s Income and Growth Strategies team and a member of the firm’s US Executive ITEM 4. OTHER BUSINESS ACTIVITIES Committee. Mr. Forsyth has portfolio Robert Hofmann is employed by Allianz management, trading and research Global Investors GmbH, an advisory affiliate responsibilities, and oversees all aspects of of AllianzGI US. In rendering investment the Income and Growth platform’s business, advisory services with respect to the including product development and European Equity strategy to its clients, implementation. He has been the lead including U.S. registered investment portfolio manager for the firm’s High Yield companies, AllianzGI US uses the resources Bond strategy since its inception in 1994 and of Mr. Hofmann to provide portfolio assumed lead portfolio management management services to AllianzGI US clients. responsibility for the firm’s Convertible In providing such services, Mr. Hofmann is strategy in 1998. In addition to management considered an "associated person" of responsibility for institutional clients AllianzGI US as that term is defined in the worldwide, Mr. Forsyth supervises multiple Investment Advisers Act of 1940, as amended open-end and closed-end mutual funds. He ("Advisers Act"). has 26 years of investment-industry experience. Prior to joining AllianzGI US via a ITEM 5. ADDITIONAL COMPENSATION predecessor affiliate in 1994, he was previously an analyst at AEGON USA. Mr. There is no information to report under this Forsyth has a B.B.A. from The University of item. Iowa. He is a CFA charterholder.
ITEM 6. SUPERVISION Please refer to the descriptions of the licenses and professional designations listed at the AllianzGI US supervises and monitors the end of this document. advice its portfolio managers provide to clients through regular reviews of client ITEM 3. DISCIPLINARY INFORMATION trading and positions for adherence to client investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures. The name Item. and contact information for the person primarily responsible for supervising Mr. ITEM 4. OTHER BUSINESS ACTIVITIES Hofmann’s investment advisory activities is Joerg de Vries-Hippen, CIO European Equity, Investment adviser representative of +49 69 24431 4141. AllianzGI US.
34 Allianz Global Investors U.S. LLC
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this Item. Item.
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the Investment adviser representative of advice its portfolio managers provide to AllianzGI US. clients through regular reviews of client trading and positions for adherence to client ITEM 5. ADDITIONAL COMPENSATION investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures. The name Item. and contact information for the person primarily responsible for Mr. Forsyth’s investment advisory activities is Andreas ITEM 6. SUPERVISION Utermann, Member, Management Board of AllianzGI US supervises and monitors the Allianz Global Investors GmbH and Global advice its portfolio managers provide to Chief Investment Officer for Allianz Global clients through regular reviews of client Investors, +44 (0)20 7859 9000. trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name Justin M. Kass and contact information for the person th primarily responsible for supervising Mr. 600 West Broadway, 29 Floor, San Diego, CA Kass’s investment advisory activities is 92101, (619) 687-8000 Douglas Forsyth, Chief Investment Officer, US
Income & Growth, (619) 687-8000. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Justin M. Kass, CFA (1974) William (Brit) L. Stickney Managing Director, Portfolio Manager 600 West Broadway, 29th Floor, San Diego, CA Mr. Kass is a portfolio manager and 92101, (619) 687-8000 managing director with AllianzGI US, which he joined in 2000. He has portfolio ITEM 2. EDUCATION BACKGROUND AND management and research responsibilities BUSINESS EXPERIENCE for the Income and Growth Strategies team and was previously an intern on the team, William (Brit) L. Stickney (1966) adding significant depth to their proprietary Managing Director, Portfolio Manager Upgrade Alert Model. He has 20 years of Mr. Stickney is a portfolio manager and investment-industry experience. Prior to managing director with AllianzGI US, which joining AllianzGI US via a predecessor affiliate he joined in 1999. He has portfolio- in 2000, he previously worked at Universal management and research responsibilities Studios; Ocean Realty; and the Center for for the Income and Growth Strategies team. Cooperatives. Mr. Kass earned his M.B.A. from Mr. Stickney has 29 years of investment- the UCLA Anderson School of Management industry experience. Prior to joining AllianzGI and his B.S. from the University of California, US via a predecessor affiliate in 1999, he was Davis. He is a CFA charterholder. a Vice President of Institutional Fixed Income Sales with ABN AMRO, Inc., where his primary Please refer to the descriptions of the licenses focus was on high yield corporate securities; and professional designations listed at the other experience includes Cowen & Company end of this document. and Wayne Hummer & Company. Mr. Stickney has an M.B.A. from the Kellogg School of Management, Northwestern
35 Allianz Global Investors U.S. LLC
University, and a B.S. from Miami University, worked at Goldman Sachs as a financial Ohio. analyst in the investment-management division, where he conducted research and ITEM 3. DISCIPLINARY INFORMATION executed trades. Mr. Dudnick has a B.B.A. with high distinction in business There is no information to report under this administration from the University of Item. Michigan Business School. He is a CFA charterholder. ITEM 4. OTHER BUSINESS ACTIVITIES Registered representative of affiliated broker- Please refer to the descriptions of the licenses dealer, Allianz Global Investors Distributors and professional designations listed at the LLC. end of this document.
Investment adviser representative of ITEM 3. DISCIPLINARY INFORMATION AllianzGI US. There is no information to report under this Item. ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES Item. There is no information to report under this Item. ITEM 6. SUPERVISION AllianzGI US supervises and monitors the ITEM 5. ADDITIONAL COMPENSATION advice its portfolio managers provide to There is no information to report under this clients through regular reviews of client Item. trading and positions for adherence to client investment guidelines and AllianzGI US’s ITEM 6. SUPERVISION internal policies and procedures. The name and contact information for the person AllianzGI US supervises and monitors the primarily responsible for supervising Mr. advice its portfolio managers provide to Stickney’s investment advisory activities is clients through regular reviews of client Douglas Forsyth, Chief Investment Officer, US trading and positions for adherence to client Income & Growth, (619) 687-8000. investment guidelines and AllianzGI US’s
internal policies and procedures. The name
and contact information for the person Jim Dudnick primarily responsible for supervising Mr. th 600 West Broadway, 29 Floor, San Diego, CA Dudnick’s investment advisory activities is 92101, (619) 687-8000 Douglas Forsyth, Chief Investment Officer, US
Income & Growth, (619) 687-8000. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Jim Dudnick, CFA (1979) Steven Gish Director, Portfolio Manager 600 West Broadway, 29th Floor, San Diego, CA Mr. Dudnick is a portfolio manager and a 92101, (619) 687-8000 director with AllianzGI US, which he joined in 2005. He has portfolio-management and ITEM 2. EDUCATION BACKGROUND AND research responsibilities for the Short BUSINESS EXPERIENCE Duration High Income team. Mr. Dudnick has 17 years of investment-industry experience. Steven Gish, CFA (1969) He was previously a financial advisor at Director, Portfolio Manager Merrill Lynch, working with both individual and institutional clients. Before that, he
36 Allianz Global Investors U.S. LLC
Mr. Gish is a portfolio manager and a director Michael E. Yee (1971) with AllianzGI US, which he joined in 2005. Managing Director, Portfolio Manager He has portfolio-management and research Mr. Yee is a portfolio manager and a responsibilities on the Short Duration High managing director with AllianzGI US, which Income team. Mr. Gish has 22 years of he joined in 1995. He has portfolio- investment-industry experience. He was management and research responsibilities previously a senior research analyst with for the Income and Growth Strategies team. Roth Capital Partners; before that, he worked Mr. Yee was previously an analyst for the in credit at a division of Deutsche Bank Global and Systematic team; he also worked Group. Mr. Gish has a B.A. from the University in global and domestic portfolio of New Mexico and a M.B.A. from the administration and in client service. He has University of Colorado. He is a CFA 24 years of investment-industry experience. charterholder. Prior to joining AllianzGI US via a predecessor affiliated in 1995, he was previously a Please refer to the descriptions of the licenses financial consultant for Priority One and professional designations listed at the Financial/Liberty Foundation. He has a B.S. end of this document. from the University of California, San Diego, and an M.B.A. from San Diego State ITEM 3. DISCIPLINARY INFORMATION University. There is no information to report under this Item. ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES Item. There is no information to report under this Item. ITEM 4. OTHER BUSINESS ACTIVITIES Registered representative of affiliated broker- ITEM 5. ADDITIONAL COMPENSATION dealer, Allianz Global Investors Distributors There is no information to report under this LLC. Item. Investment adviser representative of ITEM 6. SUPERVISION AllianzGI US.
AllianzGI US supervises and monitors the ITEM 5. ADDITIONAL COMPENSATION advice its portfolio managers provide to clients through regular reviews of client There is no information to report under this trading and positions for adherence to client Item. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 6. SUPERVISION and contact information for the person primarily responsible for supervising Mr. AllianzGI US supervises and monitors the Gish’s investment advisory activities is advice its portfolio managers provide to Douglas Forsyth, Chief Investment Officer, US clients through regular reviews of client Income & Growth, (619) 687-8000. trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name Michael E. Yee and contact information for the person th primarily responsible for supervising Mr. 600 West Broadway, 29 Floor, San Diego, CA Yee’s investment advisory activities is 92101, (619) 687-8000 Douglas Forsyth, Chief Investment Officer, US Income & Growth, (619) 687-8000. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE
37 Allianz Global Investors U.S. LLC
including U.S. registered investment ADVANCED FIXED INCOME companies, AllianzGI US uses the resources of Mr. Mormede to provide portfolio Maxence-Louis Mormede management services to AllianzGI US clients. Allianz Global Investors GmbH, In providing such services, Mr. Mormede is Bockenheimer Landstrasse 42-44, 60323 considered an "associated person" of Frankfurt am Main, Germany, +49 69 24431 AllianzGI US as that term is defined in the 4141 Investment Advisers Act of 1940, as amended ("Advisers Act"). ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this Maxence-Louis Mormede, CFA (1972) item. Managing Director, CIO Advanced Fixed Income
Mr. Mormède is a managing director and CIO ITEM 6. SUPERVISION Advanced Fixed Income with Allianz Global Investors, which he joined in 1999. As the AllianzGI US supervises and monitors the head of the Advanced Fixed Income team, he advice its portfolio managers provide to oversees approximately EUR 45 billion in clients through regular reviews of client assets under management. In previous roles trading and positions for adherence to client with the firm, Mr. Mormède was the head of investment guidelines and AllianzGI US’s the Multi Asset Protection team; he also internal policies and procedures. The name founded the Advanced Fixed Income team and contact information for the person and was responsible for research and fund primarily responsible for supervising Mr. management with the Quantitative Products Mormede’s investment advisory activities is team. He has 18 years of investment-industry Franck Dixmier, Global Head of Fixed Income experience. Mr. Mormède has studied and Chief Investment Officer Fixed Income mathematics, business and economics in Europe, +49 69 24431 7412. Toulouse, Paris, Oxford and Berlin. He has a diplôme de grande ecole from ESCP Europe; a master’s degree in management; a diplom- kaufmann; and a diplôme d’etudes Matthias Grein approfondies in mathematical economics Allianz Global Investors GmbH, and econometrics from the Ecole des Hautes Bockenheimer Landstrasse 42-44, 60323 Etudes en Sciences Sociales and the Frankfurt am Main, Germany, +49 69 24431 University of Toulouse. Mr. Mormède is a CFA 4141 charterholder. ITEM 2. EDUCATION BACKGROUND AND Please refer to the descriptions of the licenses BUSINESS EXPERIENCE and professional designations listed at the Matthias Grein, CFA (1979) end of this document. Vice President, Portfolio Manager, Advanced Fixed Income ITEM 3. DISCIPLINARY INFORMATION Mr. Grein is a portfolio manager and a vice There is no information to report under this president with Allianz Global Investors, item. which he joined in 2013. As a member of the Advanced Fixed Income team, his coverage is ITEM 4. OTHER BUSINESS ACTIVITIES primarily focused on European sovereign debt; he also conducts economic research Maxence Mormede is employed by Allianz and develops macroeconomic models used in Global Investors GmbH, an advisory affiliate the asset-allocation process. Mr. Grein has 10 of AllianzGI US. In rendering investment years of investment-industry experience. He advisory services with respect to the was previously an equity risk manager at Advanced Fixed Income strategy to its clients, Dresdner Kleinwort, London, and an
38 Allianz Global Investors U.S. LLC
economic researcher at the European Central Bank, Financial Stability Division. Mr. Grein has a degree (Diplom Christian Tropp Wirtschaftsmathematik) in mathematical 1633 Broadway, New York, NY 10019, (212) economics from University of Karlsruhe, a 739-3300 master’s degree in economics from The University of Edinburgh and a Ph.D. in ITEM 2. EDUCATION BACKGROUND AND economics from University of Cambridge. He BUSINESS EXPERIENCE is a CFA charterholder. Christian Tropp, CFA (1981)
Director, Head of AFI Global SCF, Advanced Please refer to the descriptions of the licenses Fixed Income and professional designations listed at the end of this document. Mr. Tropp is a director and Head of Global SCF, Advanced Fixed Income, with Allianz Global Investors, which he joined in 2006. His ITEM 3. DISCIPLINARY INFORMATION responsibilities include managing advanced There is no information to report under this fixed-income portfolios for institutional and item. retail clients; supervising portfolio managers on the Global SCF team; and overseeing the ITEM 4. OTHER BUSINESS ACTIVITIES research and credit-risk analysis of various bonds, asset-backed and mortgage-backed Matthias Grein is employed by Allianz Global securities. Previously with the firm, Mr. Tropp Investors GmbH, an advisory affiliate of was a multi-asset portfolio manager and a AllianzGI US. In rendering investment pension investment advisor. He has 11 years advisory services with respect to the of investment-industry experience. Mr. Tropp Advanced Fixed Income strategy to its clients, has a diploma in economics from Johannes including U.S. registered investment Gutenberg University Mainz, Germany. He is companies, AllianzGI US uses the resources of a CFA charterholder. Mr. Grein to provide portfolio management services to AllianzGI US clients. In providing Please refer to the descriptions of the licenses such services, Mr. Grein is considered an and professional designations listed at the "associated person" of AllianzGI US as that end of this document. term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). ITEM 3. DISCIPLINARY INFORMATION ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this item. There is no information to report under this item. ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 6. SUPERVISION There is no information to report under this Item. AllianzGI US supervises and monitors the advice its portfolio managers provide to clients through regular reviews of client ITEM 5. ADDITIONAL COMPENSATION trading and positions for adherence to client There is no information to report under this investment guidelines and AllianzGI US’s item. internal policies and procedures. The name and contact information for the person ITEM 6. SUPERVISION primarily responsible for supervising Mr. Grein’s investment advisory activities is Ralf AllianzGI US supervises and monitors the Juelichmanns, Team Head Advanced Fixed advice its portfolio managers provide to Income Global Allocation Team, +49 69 clients through regular reviews of client 24431 2423. trading and positions for adherence to client
39 Allianz Global Investors U.S. LLC
investment guidelines and AllianzGI US’s including U.S. registered investment internal policies and procedures. The name companies, AllianzGI US uses the resources of and contact information for the person Mr. Verhofen to provide portfolio primarily responsible for supervising Mr. management services to AllianzGI US clients. In providing such services, Mr. Verhofen is Tropp’s investment advisory activities is considered an "associated person" of Maxence Mormede, CIO Advanced Fixed AllianzGI US as that term is defined in the Income, +49 69 2443 1 6805. Investment Advisers Act of 1940, as amended ("Advisers Act").
Michael Verhofen ITEM 5. ADDITIONAL COMPENSATION Allianz Global Investors GmbH, There is no information to report under this Bockenheimer Landstrasse 42-44, 60323 item. Frankfurt am Main, Germany, +49 69 24431 4141 ITEM 6. SUPERVISION
ITEM 2. EDUCATION BACKGROUND AND AllianzGI US supervises and monitors the BUSINESS EXPERIENCE advice its portfolio managers provide to clients through regular reviews of client Michael Verhofen, CFA (1977) trading and positions for adherence to client Director, Portfolio Manager, Advanced Fixed investment guidelines and AllianzGI US’s Income internal policies and procedures. The name Mr. Verhofen is a portfolio manager and a and contact information for the person director with Allianz Global Investors, which primarily responsible for supervising Mr. he joined in 2007. As a member of the Verohofen’s investment advisory activities is Advanced Fixed Income team, he is primarily Ralf Juelichmanns, Team Head Advanced focused on aggregate and short-term Fixed Income Global Allocation Team, +49 69 mandates. Mr. Verhofen has 15 years of 24431 2423. investment-industry experience. He was previously a researcher at the Swiss Institute of Banking and Finance. Mr. Verhofen has a Ph.D. in finance from the University of St. FIXED INCOME US Gallen, Switzerland, and conducted postdoctoral work at the University of Carl Pappo California, Berkeley. He is a CFA th 100 Cambridge Street 14 Floor, Boston, MA charterholder and a lecturer in finance at the 02108, (617) 480-6388 University of St. Gallen.
Please refer to the descriptions of the licenses ITEM 2. EDUCATION BACKGROUND AND and professional designations listed at the BUSINESS EXPERIENCE end of this document. Carl Pappo, CFA (1968) CIO US Fixed Income ITEM 3. DISCIPLINARY INFORMATION Mr. Pappo is CIO US Fixed Income with Allianz Global Investors, which he joined in 2017. As There is no information to report under this the leader of the US Fixed Income team, his item. responsibilities include chairing the core strategy team (which sets portfolio risk ITEM 4. OTHER BUSINESS ACTIVITIES allocations) and acting as lead portfolio manager for a number of strategies. Mr. Michael Verhofen is employed by Allianz Pappo has 25 years of investment-industry Global Investors GmbH, an advisory affiliate experience. He previously worked at of AllianzGI US. In rendering investment Columbia Threadneedle Investments, where advisory services with respect to the he was head of the core fixed-income team; Advanced Fixed Income strategy to its clients,
40 Allianz Global Investors U.S. LLC
earlier at the firm, he led the credit team and Fixed Income team, his responsibilities the investment grade research team. Before include participating in core strategy that, Mr. Pappo worked at Fleet Investment meetings and developing portfolio Advisors where he managed taxable fixed- investment policy. Mr. Salem also has income funds and institutional portfolios. He portfolio management responsibilities for began his career as a corporate bond trader. liability-driven investment (LDI) strategies, Mr. Pappo has a B.S. in accounting from focusing on corporate bonds and government Babson College. He is a CFA charterholder. securities. He has more than 35 years of investment-industry experience. Mr. Salem Please refer to the descriptions of the licenses previously worked at Columbia Threadneedle and professional designations listed at the Investments, where he helped develop end of this document. strategy and was responsible for the LDI portfolios. Before that, he worked at MacKay
Shields, Dean Witter Reynolds and ITEM 3. DISCIPLINARY INFORMATION Manufacturers Hanover Investment. Mr. There is no information to report under this Salem has a B.S. in economics from Canisius item. College and an M.B.A. from Columbia Business School. He is a CFA charterholder. ITEM 4. OTHER BUSINESS ACTIVITIES Please refer to the descriptions of the licenses There is no information to report under this Item. and professional designations listed at the end of this document. ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this item. There is no information to report under this item. ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the advice its portfolio managers provide to There is no information to report under this clients through regular reviews of client Item. trading and positions for adherence to client investment guidelines and AllianzGI US’s ITEM 5. ADDITIONAL COMPENSATION internal policies and procedures. The name There is no information to report under this and contact information for the person item. primarily responsible for supervising Mr. Pappo’s investment advisory activities is ITEM 6. SUPERVISION Franck Dixmier, CEO, Global CIO, +33 1 7305 7412. AllianzGI US supervises and monitors the advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client Frank A. Salem investment guidelines and AllianzGI US’s 1633 Broadway, New York, NY 10019, (212) internal policies and procedures. The name 739-3300 and contact information for the person primarily responsible for supervising Mr. ITEM 2. EDUCATION BACKGROUND AND Salem’s investment advisory activities is Carl BUSINESS EXPERIENCE Pappo, CIO, US Fixed Income, (617) 480-6388.
Frank Salem, CFA (1954)
Director, Senior Portfolio Manager Mr. Salem is a senior portfolio manager and a Michael W. Zazzarino director with Allianz Global Investors, which 1633 Broadway, New York, NY 10019, (212) he joined in 2017. As a member of the US 739-3300
41 Allianz Global Investors U.S. LLC
ITEM 2. EDUCATION BACKGROUND AND Stephen J. Sheehan BUSINESS EXPERIENCE 100 Cambridge Street 14th Floor, Boston, MA Michael Zazzarino (1959) 02108, (617) 480-6388 Director, Senior Portfolio Manager Mr. Zazzarino is a senior portfolio manager ITEM 2. EDUCATION BACKGROUND AND and a director with Allianz Global Investors, BUSINESS EXPERIENCE which he joined in 2017. As a member of the US Fixed Income team and a structured Stephen J. Sheehan, CFA (1987) specialist, his responsibilities include Vice President, Portfolio Manager portfolio management, structured research Mr. Sheehan is a portfolio manager and a vice and trading. Mr. Zazzarino has 29 years of president with Allianz Global Investors, investment-industry experience. He was which he joined in 2017. As a member of the previously a portfolio manager at Columbia US Fixed Income team and a credit sector Threadneedle Investments; he was also lead specialist, his responsibilities include strategist of structured products for the core portfolio management, corporate credit fixed-income team at the firm. Before that, research and trading. Mr. Sheehan has eight Mr. Zazzarino was a senior portfolio manager years of investment-industry experience. He at US Trust, and a portfolio manager, analyst previously worked at Columbia Threadneedle and trader at both Brown Brothers Harriman and Eastbridge Capital. He has a B.S. in Investments, where he had portfolio mechanical engineering from Lafayette management, research and trading roles; College and an M.B.A. in finance from during this time he managed a range of Columbia Business School. intermediate and long-term fixed-income portfolios. Mr. Sheehan has an A.B. in ITEM 3. DISCIPLINARY INFORMATION economics from Harvard College. He is a CFA charterholder. There is no information to report under this item. Please refer to the descriptions of the licenses ITEM 4. OTHER BUSINESS ACTIVITIES and professional designations listed at the end of this document. There is no information to report under this Item. ITEM 3. DISCIPLINARY INFORMATION
There is no information to report under this ITEM 5. ADDITIONAL COMPENSATION item. There is no information to report under this item. ITEM 4. OTHER BUSINESS ACTIVITIES
There is no information to report under this ITEM 6. SUPERVISION Item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 5. ADDITIONAL COMPENSATION clients through regular reviews of client There is no information to report under this trading and positions for adherence to client item. investment guidelines and AllianzGI US’s internal policies and procedures. The name and contact information for the person ITEM 6. SUPERVISION primarily responsible for supervising Mr. AllianzGI US supervises and monitors the Zazzarino’s investment advisory activities is advice its portfolio managers provide to Carl Pappo, CIO, US Fixed Income, (617) 480- clients through regular reviews of client 6388. trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name and contact information for the person
42 Allianz Global Investors U.S. LLC
primarily responsible for supervising Mr. ITEM 6. SUPERVISION Sheehan’s investment advisory activities is Carl Pappo, CIO, US Fixed Income, (617) 480- AllianzGI US supervises and monitors the 6388. advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client investment guidelines and AllianzGI US’s Karl Chang internal policies and procedures. The name 1633 Broadway, New York, NY 10019, (212) and contact information for the person 739-3300 primarily responsible for supervising Mr. Chang’s investment advisory activities is ITEM 2. EDUCATION BACKGROUND AND Frank A. Salem, Director, Senior Portfolio BUSINESS EXPERIENCE Manager, (212) 739-3013.
Karl Chang, CFA (1974) Director, Portfolio Manager Mr. Chang is a portfolio manager and a EMERGING MARKETS DEBT director with Allianz Global Investors, which he joined in 2017. As a member of the US Fixed Income team, his responsibilities Greg Saichin include portfolio management and providing Allianz Global Investors GmbH, UK Branch, customized solutions for liability-driven 199 Bishopsgate, London, EC2M 3TY, United investment (LDI) strategies. Mr. Chang has 20 Kingdom, +44 (0) 20 7859 9000 years of investment-industry experience. He was previously a portfolio manager at ITEM 2. EDUCATION BACKGROUND AND Columbia Threadneedle Investments and BUSINESS EXPERIENCE helped to establish its LDI platform. Before that, Mr. Chang worked at US Trust as a senior Greg Saichin (1960) analyst and Salomon Brothers. He has a B.A. Managing Director, CIO Global Emerging in economics from The City College of New Markets Fixed Income York and an M.B.A. from Leonard N. Stern Mr. Saichin is a managing director and CIO School of Business, New York University. Mr. Global Emerging Markets Fixed Income with Chang is a CFA charterholder. Allianz Global Investors, which he joined in 2013. He is the head of the firm’s Emerging Markets Fixed Income team and is Please refer to the descriptions of the licenses responsible for developing the team and its and professional designations listed at the range of strategies. Mr. Saichin has 34 years end of this document. of investment-industry experience. Before joining the firm, he worked at Pioneer ITEM 3. DISCIPLINARY INFORMATION Investments, where he was the head of emerging markets and leveraged finance There is no information to report under this fixed-income funds and a senior portfolio item. manager, responsible for emerging market debt, high-yield and multi-asset mandates. ITEM 4. OTHER BUSINESS ACTIVITIES Before that, Mr. Saichin worked at Credit Lyonnais as an associate director in in the There is no information to report under this emerging-market debt group; at Deutsche Item. bank in emerging-market debt distribution;
and at Chemical Bank in European capital ITEM 5. ADDITIONAL COMPENSATION markets distribution. He has a B.A. in There is no information to report under this business administration from the University item. of Buenos Aires, Argentina, and an M.B.A. from the Wharton School of the University of Pennsylvania.
43 Allianz Global Investors U.S. LLC
ITEM 3. DISCIPLINARY INFORMATION years of investment-industry experience. Before joining the firm, he was the head of the There is no information to report under this international syndicate at Banco Votorantim item. Securities, a director at Pine Securities’ Capital Markets team and a managing ITEM 4. OTHER BUSINESS ACTIVITIES director at White-Bridge Capital Greg Saichin is employed by Allianz Global Management. Mr. Pinto started his career at Investors GmbH, UK Branch, an advisory ABN AMRO Bank, subsequently the Royal affiliate of AllianzGI US. In rendering Bank of Scotland, where he was most recently investment advisory services with respect to a director in the Latin American structured strategies to its clients, including U.S. finance and fixed-income capital-markets registered investment companies, AllianzGI group, responsible for the origination, US uses the resources of Mr. Saichin to structuring and execution of Latin American provide portfolio management services to bonds, loans, acquisition and project AllianzGI US clients. In providing such financings, and structured transactions. He services, Mr. Saichin is considered an has a B.S. in economics and political science "associated person" of AllianzGI US as that from the University of Michigan, Ann Arbor. term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this ITEM 5. ADDITIONAL COMPENSATION item. There is no information to report under this item. ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this ITEM 6. SUPERVISION Item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 5. ADDITIONAL COMPENSATION clients through regular reviews of client There is no information to report under this trading and positions for adherence to client item. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 6. SUPERVISION and contact information for the person primarily responsible for supervising Mr. AllianzGI US supervises and monitors the Saichin’s investment advisory activities is advice its portfolio managers provide to Malie Conway, CIO Global Fixed Income, +44 clients through regular reviews of client 20 3246 7163. trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name and contact information for the person David Pinto primarily responsible for supervising Mr. 1633 Broadway, New York, NY 10019, (212) Pinto’s investment advisory activities is Greg 739-3300 Saichin, Managing Director, CIO Global Emerging Markets Fixed Income, +44 (0) 20 ITEM 2. EDUCATION BACKGROUND AND 7859 9000. BUSINESS EXPERIENCE
David Pinto (1979) Director, Portfolio Manager/Credit Analyst Daniel Ha Mr. Pinto is a credit analyst and a director Allianz Global Investors Asia Pacific Limited, with Allianz Global Investors, which he joined 27th Floor, ICBC Tower, 3 Garden Road, in 2015. He is a member of the firm’s Central, Hong Kong, +852 2238 8888 Emerging Markets Fixed Income team and focuses on Latin America. Mr. Pinto has 16
44 Allianz Global Investors U.S. LLC
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the advice its portfolio managers provide to Daniel Ha, CFA (1981) clients through regular reviews of client Director, Senior Portfolio Manager trading and positions for adherence to client Mr. Ha is a senior portfolio manager and a investment guidelines and AllianzGI US’s director with Allianz Global Investors, which internal policies and procedures. The name he joined in 2014. He is a member of the and contact information for the person firm’s Emerging Markets Fixed Income team primarily responsible for supervising Mr. Ha’s and has portfolio-management investment advisory activities is Raymond responsibilities for the team’s strategies, with Chan, Chief Investment Officer, Asia Pacific, a primary focus on managing the Asia-Pacific +852 2238 8888. For the Emerging Markets exposure of the team’s mandates. Mr. Ha has Debt portfolio management responsibilities, 11 years of investment-industry experience. Mr. Ha is primarily supervised by Greg He was previously a portfolio manager at Saichin, Managing Director, CIO Global Income Partners Asset Management, with Emerging Markets Fixed Income, +44 (0) 20 management responsibilities for absolute- 7859 9000. return and long-only Asian credit funds. He has a B.B.A. from Hong Kong University of Science and Technology and an M.B.A. from The Chinese University of Hong Kong. Mr. Ha INFRASTRUCTURE DEBT is a CFA charterholder.
Please refer to the descriptions of the licenses Deborah Zurkow and professional designations listed at the Allianz Global Investors GmbH, UK Branch, end of this document. 199 Bishopsgate, London, EC2M 3TY, United Kingdom, +44 (0) 20 7859 9000
ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this ITEM 2. EDUCATION BACKGROUND AND item. BUSINESS EXPERIENCE Deborah Zurkow (1957) ITEM 4. OTHER BUSINESS ACTIVITIES CIO and Head of Infrastructure Debt Daniel Ha is employed by Allianz Global Before joining Allianz Global Investors in Investors Asia Pacific Limited, an advisory 2012, Deborah was CEO of Trifinium Advisors affiliate of AllianzGI US. In rendering Limited, and head of Public Finance EMEA for investment advisory services with respect to MBIA UK Insurance Limited. She was the Korean Equity strategy to its clients, responsible for general oversight for new including U.S. registered investment business efforts in infrastructure, including companies. AllianzGI US uses the resources of government-supported entities, Mr. Ha to provide portfolio management transportation, utilities and Public Private services to AllianzGI US clients. In providing Partnerships/Private Finance Initiative such services, Mr. Ha is considered an financings. Deborah also previously served as "associated person" of AllianzGI US as that a Director of MBIA UK Insurance Limited, and term is defined in the Investment Advisers as President of MBIA Assurance S.A. Act of 1940, as amended ("Advisers Act"). Previously, she managed MBIA’s Paris office, where she was responsible for both ITEM 5. ADDITIONAL COMPENSATION structured and public sector business, and worked on a variety of transactions including There is no information to report under this French securitisations and European local item. government financings. Before that, Deborah worked in the Public Finance Division at J.P. Morgan Securities. She has 25 years of investment-industry experience. Deborah
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holds an MBA from Yale School of ITEM 2. EDUCATION BACKGROUND AND Management, and a BA from Wellesley BUSINESS EXPERIENCE College. She is a member of the International Project Finance Association (IPFA) Council of Paul David (1963) Management. Deborah is a member of the Director, Portfolio Manager International Project Finance Association Head of Americas, Infrastructure Debt Council of Management. Before joining Allianz Global Investors in 2012, Paul was a Managing Director at MBIA ITEM 3. DISCIPLINARY INFORMATION UK Insurance Limited, and a board director of Trifinium Advisors Limited. He was primarily There is no information to report under this responsible for infrastructure debt, project item. finance and public finance origination and execution. Paul also originated and managed ITEM 4. OTHER BUSINESS ACTIVITIES infrastructure equity investments acquired Deborah Zurkow is employed by Allianz for the MBIA investment portfolio. His main Global Investors GmbH, UK Branch, an areas of focus were Public Private advisory affiliate of AllianzGI US. In rendering Partnerships/Private Finance Initiative investment advisory services with respect to financings and transportation financing. strategies to its clients, including U.S. Prior to joining MBIA, Paul worked for Lloyds registered investment companies, AllianzGI Bank and Industrial Bank of Japan as an US uses the resources of Ms. Zurkow to arranger of infrastructure finance and provide portfolio management services to international project finance. He has 24 years AllianzGI US clients. In providing such of investment-industry experience. Paul services, Ms. Zurkow is considered an holds a BSc from Imperial College, London. "associated person" of AllianzGI US as that term is defined in the Investment Advisers ITEM 3. DISCIPLINARY INFORMATION Act of 1940, as amended ("Advisers Act"). There is no information to report under this item. ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES item. There is no information to report under this Item. ITEM 6. SUPERVISION AllianzGI US supervises and monitors the ITEM 5. ADDITIONAL COMPENSATION advice its portfolio managers provide to There is no information to report under this clients through regular reviews of client item. trading and positions for adherence to client investment guidelines and AllianzGI US’s ITEM 6. SUPERVISION internal policies and procedures. The name and contact information for the person AllianzGI US supervises and monitors the primarily responsible for supervising Ms. advice its portfolio managers provide to Zurkow’s investment advisory activities is clients through regular reviews of client Andreas Utermann, Member, Management trading and positions for adherence to client Board of Allianz Global Investors GmbH and investment guidelines and AllianzGI US’s Global Chief Investment Officer for Allianz internal policies and procedures. The name Global Investors, +44 (0) 20 7859 9000. and contact information for the person primarily responsible for supervising Mr. David’s investment advisory activities is Deborah Zurkow, CIO and Head of Paul David Infrastructure Debt, +44 (0) 20 7859 9000. 1633 Broadway, New York, NY 10019, (212) 739-3300
46 Allianz Global Investors U.S. LLC
Ralph Eley Jorge Camiña de Santiago Allianz Global Investors GmbH, UK Branch, 1633 Broadway, New York, NY 10019, (212) 199 Bishopsgate, London, EC2M 3TY, United 739-3300 Kingdom, +44 (0) 20 7859 9000 ITEM 2. EDUCATION BACKGROUND AND ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE BUSINESS EXPERIENCE Jorge Camiña de Santiago (1977) Ralph Eley (1966) Director, Portfolio Manager, Infrastructure Debt Director of Infrastructure Debt Mr. Camiña is a portfolio manager and a Before joining Allianz Global Investors in director with Allianz Global Investors, which 2014, Ralph worked for EIB, Hadrian’s Wall he joined in 2016. He is a member of the Capital, Assured Guaranty, Ambac Assurance firm’s Infrastructure Debt team, responsible and Bank of Scotland. Ralph has 21 years for helping to build the infrastructure debt experience of working in infrastructure business in the US. Mr. Camiña has 19 years finance with a particular focus on Public of investment-industry experience. Before Private Partnerships/Private Finance joining the firm, he worked at Santander Initiative and transportation projects, Bank where he held several positions including roles in bank lending, bond including head of the project and acquisition finance, asset management, equity, advisory finance group; Mr. Camiña also worked with and financial modelling. Ralph holds a First the non-recourse financing credit group in Class Honours Degree in Chemical Madrid and with the corporate syndicate Engineering from the University of loans group in New York. Prior to this, he Manchester. worked at Banco Bilbao Vizcaya Argentaria, Arthur Andersen and ABN AMRO. Mr. Camiña ITEM 3. DISCIPLINARY INFORMATION has a B.S. in finance from Deusto Business School, Bilbao, Spain. There is no information to report under this item. ITEM 3. DISCIPLINARY INFORMATION
ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this item. There is no information to report under this Item. ITEM 4. OTHER BUSINESS ACTIVITIES
ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this Item. There is no information to report under this item. ITEM 5. ADDITIONAL COMPENSATION
ITEM 6. SUPERVISION There is no information to report under this item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 6. SUPERVISION clients through regular reviews of client trading and positions for adherence to client AllianzGI US supervises and monitors the investment guidelines and AllianzGI US’s advice its portfolio managers provide to internal policies and procedures. The name clients through regular reviews of client and contact information for the person trading and positions for adherence to client primarily responsible for supervising Mr. investment guidelines and AllianzGI US’s Eley’s investment advisory activities is internal policies and procedures. The name Deborah Zurkow, CIO and Head of and contact information for the person Infrastructure Debt, +44 (0) 20 7859 9000. primarily responsible for supervising Mr. Camiña’s investment advisory activities is
47 Allianz Global Investors U.S. LLC
Paul David, Director of Infrastructure Debt, ITEM 5. ADDITIONAL COMPENSATION (212) 739-3300. There is no information to report under this item.
Claus Fintzen ITEM 6. SUPERVISION Allianz Global Investors GmbH, UK Branch, 199 Bishopsgate, London, EC2M 3TY, United AllianzGI US supervises and monitors the Kingdom, +44 (0) 20 7859 9000 advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client ITEM 2. EDUCATION BACKGROUND AND investment guidelines and AllianzGI US’s BUSINESS EXPERIENCE internal policies and procedures. The name Claus Fintzen (1965) and contact information for the person Director of Infrastructure Debt primarily responsible for supervising Mr. Claus focuses on debt investments in Fintzen’s investment advisory activities is German-speaking countries and Scandinavia. Deborah Zurkow, CIO and Head of Before joining Allianz Global Investors in Infrastructure Debt, +44 (0) 20 7859 9000. 2012, he spent eight years at MBIA/Trifinium as a Director, where he was involved in a variety of transactions, including Francois Yves Gaudeul transportation, social housing, renewables, Allianz Global Investors GmbH, Paris Branch, real estate and corporate debt, and was 3 BD Des Italiens II Arron- Pass Des, Paris responsible for the initiation and structuring Cedex 02, France 75002, + 33 1 73 05 73 05 of transactions in Germany and Austria. Before joining MBIA/Trifinium Claus spent ITEM 2. EDUCATION BACKGROUND AND nine years at Citigroup, working in the structured finance, securitization and BUSINESS EXPERIENCE alternative risk transfer departments. He has Francois Yves Gaudeul (1969) 23 years of investment-industry experience. Director of Infrastructure Debt Claus has a degree in business Francois-Yves looks after the company’s administration from the European Business investments in infrastructure debt, primarily School in Oestrich-Winkel, Germany. in Benelux and France. Before joining Allianz Global Investors in 2012, he spent 10 years at ITEM 3. DISCIPLINARY INFORMATION MBIA, and eight years at UBS and Citibank in There is no information to report under this London and Paris. Francois-Yves has item. extensive experience in transaction origination, structuring and remediation. He has also worked on a variety of advisory and ITEM 4. OTHER BUSINESS ACTIVITIES arranging mandates, such as Nigeria LNG, Claus Fintzen is employed by Allianz Global Doga Enerji (Turkey) and Medway Power Investors GmbH, UK Branch, an advisory (UK). He has 22 years of investment-industry affiliate of AllianzGI US. In rendering experience. François-Yves graduated in 1992 investment advisory services with respect to from HEC Business School (Paris), where he strategies to its clients, including U.S. specialised in Finance. He also holds a registered investment companies, AllianzGI Masters Degree in Transportation from US uses the resources of Mr. Fintzen to Sorbonne University (Paris). provide portfolio management services to AllianzGI US clients. In providing such ITEM 3. DISCIPLINARY INFORMATION services, Mr. Fintzen is considered an "associated person" of AllianzGI US as that There is no information to report under this term is defined in the Investment Advisers item. Act of 1940, as amended ("Advisers Act").
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ITEM 4. OTHER BUSINESS ACTIVITIES Public Private Partnerships/Private Finance Initiative financings, utility debt raising, and Francois-Yves Gaudeul is employed by Allianz transportation financing. Prior to joining Global Investors GmbH, Paris Branch, an MBIA, Adrian worked for Schroders/Citigroup, advisory affiliate of AllianzGI US. In rendering Deloitte and ANZ Bank in advisory and debt investment advisory services with respect to arranging capacities. He has 22 years of strategies to its clients, including U.S. investment-industry experience. Adrian registered investment companies, AllianzGI holds an MA from St. Edmund Hall, Oxford US uses the resources of Mr. Gaudeul to University. provide portfolio management services to AllianzGI US clients. In providing such ITEM 3. DISCIPLINARY INFORMATION services, Mr. Gaudeul is considered an "associated person" of AllianzGI US as that There is no information to report under this term is defined in the Investment Advisers item. Act of 1940, as amended ("Advisers Act"). ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 5. ADDITIONAL COMPENSATION Adrian Jones is employed by Allianz Global There is no information to report under this Investors GmbH, UK Branch, an advisory item. affiliate of AllianzGI US. In rendering investment advisory services with respect to ITEM 6. SUPERVISION strategies to its clients, including U.S. registered investment companies, AllianzGI AllianzGI US supervises and monitors the US uses the resources of Mr. Jones to provide advice its portfolio managers provide to portfolio management services to AllianzGI clients through regular reviews of client US clients. In providing such services, Mr. trading and positions for adherence to client Jones is considered an "associated person" of investment guidelines and AllianzGI US’s AllianzGI US as that term is defined in the internal policies and procedures. The name Investment Advisers Act of 1940, as amended and contact information for the person ("Advisers Act"). primarily responsible for supervising Mr. Gaudeul’s investment advisory activities is ITEM 5. ADDITIONAL COMPENSATION Deborah Zurkow, CIO and Head of Infrastructure Debt, +44 (0) 20 7859 9000. There is no information to report under this item.
Adrian Jones ITEM 6. SUPERVISION Allianz Global Investors GmbH, UK Branch, AllianzGI US supervises and monitors the 199 Bishopsgate, London, EC2M 3TY, United advice its portfolio managers provide to Kingdom, +44 (0) 20 7859 9000 clients through regular reviews of client trading and positions for adherence to client ITEM 2. EDUCATION BACKGROUND AND investment guidelines and AllianzGI US’s BUSINESS EXPERIENCE internal policies and procedures. The name and contact information for the person Adrian Jones (1972) primarily responsible for supervising Mr. Director, Infrastructure Debt Jones’ investment advisory activities is Before joining Allianz Global Investors in Deborah Zurkow, CIO and Head of 2012, Adrian was a Managing Director within Infrastructure Debt, +44 (0) 20 7859 9000. MBIA UK Insurance Limited. He was primarily responsible for infrastructure debt, project finance, and public finance origination and execution. Adrian also provided senior Emmanuel Deblanc support to the transaction monitoring teams, Allianz Global Investors GmbH, UK Branch, negotiating major variations and complex 199 Bishopsgate, London, EC2M 3TY, United remediation. His main areas of focus were Kingdom, +44 (0) 20 7859 9000
49 Allianz Global Investors U.S. LLC
clients through regular reviews of client ITEM 2. EDUCATION BACKGROUND AND trading and positions for adherence to client BUSINESS EXPERIENCE investment guidelines and AllianzGI US’s internal policies and procedures. The name Emmanuel Deblanc (1971) and contact information for the person Director, Infrastructure Debt primarily responsible for supervising Mr. Emmanuel Deblanc is a senior Portfolio Deblanc’s investment advisory activities is Manager leading our resilient credit strategy. Claus Fintzen, Head of Infrastructure Debt, Before joining Allianz Global Investors, he +44 (0) 20 7859 9000. was a Managing Director at BNP Paribas co- heading a debt advisory and financing team. He was responsible for origination and execution of advisory and arranging INFRASTRUCTURE EQUITY mandates across a broad range of sectors. Selected mandates include: advising Heathrow on the 3rd runway, advising Armin Sandhoevel Borealis in relation to the acquisitions and 1633 Broadway, New York, NY 10019, (212) refinancings of Fortum Sweden (Ellevio) and 739-3300 Fortum Finland (Caruna), both power networks with a total value of ca EUR 8bn). Mr. Deblanc has been involved in the ITEM 2. EDUCATION BACKGROUND AND infrastructure and energy sectors since 1997; BUSINESS EXPERIENCE prior to joining BNP Paribas, he was part of Armin Sandhoevel (1964) MBIA’s public finance team led by Deborah CIO, Infrastructure Equity Zurkow. Mr. Sandhoevel joined Allianz Global Investors in 2012 as CIO Infrastructure Equity. ITEM 3. DISCIPLINARY INFORMATION In his function, he covers energy-related There is no information to report under this infrastructure topics and is responsible for item. the development of energy infrastructure and impact investment products for third party ITEM 4. OTHER BUSINESS ACTIVITIES investors. His track record shows three successfully closed SICAV-SIF vehicles with a Emmanuel Deblanc is employed by Allianz cumulative capacity of more than 700MW. Global Investors GmbH, UK Branch, an Together with his dedicated team, he is advisory affiliate of AllianzGI US. In rendering responsible for more than 1 billion euros of investment advisory services with respect to AuMs. In December 2017 he relocated to New strategies to its clients, including U.S. York. Ever since he has been working on the registered investment companies, AllianzGI global expansion of his business model and US uses the resources of Mr. Deblanc to currently offers to his clients a global vehicle provide portfolio management services to with a focus on Northern America for AllianzGI US clients. In providing such investments. Before Mr. Sandhoevel joined services, Mr. Deblanc is considered an Allianz Global Investors, he founded Allianz "associated person" of AllianzGI US as that Climate Solutions in 2007 - the global term is defined in the Investment Advisers competence centre of the Allianz Group with Act of 1940, as amended ("Advisers Act"). respect to climate as well as cleantech matters - and acted as its CEO for 7 ITEM 5. ADDITIONAL COMPENSATION consecutive years. For Allianz, he set up a carbon-related portfolio investing in There is no information to report under this emerging markets which his team is item. managing to date and which serves the
carbon neutralisation strategy of the Allianz ITEM 6. SUPERVISION Group. Previously, he had been Head of AllianzGI US supervises and monitors the Carbon Risk and had led the risk advice its portfolio managers provide to management of renewable energy at
50 Allianz Global Investors U.S. LLC
Dresdner Bank AG and was member of the steering committee of the European ITEM 2. EDUCATION BACKGROUND AND Environmental Advisory Councils. Until BUSINESS EXPERIENCE today, Mr. Sandhoevel has gained more than two decades of specific expertise in Martin Ewald(1978) investment management, emissions trading Managing Director, Head of Investment and renewable energy project financing. He Strategy, Infrastructure Equity advises national and international Mr. Ewald heads the Investment Strategy of institutions and sits in the advisory board of the Infrastructure Equity Team, he is a First Climate Market AG. Moreover, Mr. Managing Director and is located in London. Sandhoevel holds a seat at the board of the He has led the set-up of all previous AllianzGI Allianz Renewable Energy Fund I. Last but not Infrastructure Equity funds. Mr. Ewald joined least, he is Counsellor of the German Chapter the Infrastructure Equity Team in 2012 as co- of the Prince Albert II of Monaco Foundation. head of portfolio management covering Mr. Sandhoevel holds a Phd with summa cum renewable energies in Munich. Since 2013, he laude in economics and social sciences from has been Head of Investment Strategy the Carl von Ossietzky University of shaping the strategic direction of the team via Oldenburg and a Master’s degree with magna the development and implementation of new cum laude in political science from the investment vehicles. In 2015 he was based in Westfälische Wilhelms University of Münster. the Singapore office of AllianzGI. Prior to that and since 2007, he worked as a co-head of the ITEM 3. DISCIPLINARY INFORMATION investment team of Allianz Climate Solutions and led investments in the area of renewable There is no information to report under this energy and carbon worldwide. Mr. Ewald item. holds a seat at the board of the Allianz Renewable Energy Fund II and the Capviva ITEM 4. OTHER BUSINESS ACTIVITIES Allianz Renewable Fund. He serves as a co- There is no information to report under this chair on the Infrastructure Advisory Item. Committee of the Principles for Responsible Investment (PRI) and is a working group ITEM 5. ADDITIONAL COMPENSATION member of ISO 14007/14008 establishing standards for the monetary valuation of There is no information to report under this environmental impacts. Before joining the item. Allianz Group in 2007, Mr. Ewald worked at IBM as a business consultant for investment ITEM 6. SUPERVISION banking and financial markets. He holds a Master’s degree with merit in International AllianzGI US supervises and monitors the Management from the University of Exeter advice its portfolio managers provide to and a Master’s degree with merit in Business clients through regular reviews of client Administration (Diplom-Kaufmann) from the trading and positions for adherence to client University of Mannheim. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 3. DISCIPLINARY INFORMATION and contact information for the person primarily responsible for supervising Mr. There is no information to report under this Sandhoevel’s investment advisory activities is item. Deborah Zurkow, Managing Director, Head of Alternatives, +44 20 3246 7596. ITEM 4. OTHER BUSINESS ACTIVITIES
Martin Ewald is employed by Allianz Global Investors GmbH, an advisory affiliate of Martin Ewald AllianzGI US In rendering investment Allianz Global Investors GmbH, UK Branch, advisory services with respect to Multi-Asset 199 Bishopsgate, London, EC2M 3TY, United strategies to its clients, including U.S. Kingdom, +44 (0) 20 3246 7172 registered investment companies, AllianzGI
51 Allianz Global Investors U.S. LLC
US uses the resources of Mr. Ewald to provide portfolio management services to AllianzGI Please refer to the descriptions of the licenses US clients. In providing such services, Mr. and professional designations listed at the Ewald is considered an "associated person" of end of this document. AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ITEM 3. DISCIPLINARY INFORMATION ("Advisers Act"). There is no information to report under this item. ITEM 5. ADDITIONAL COMPENSATION
There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES item. There is no information to report under this Item. ITEM 6. SUPERVISION
AllianzGI US supervises and monitors the ITEM 5. ADDITIONAL COMPENSATION advice its portfolio managers provide to clients through regular reviews of client There is no information to report under this trading and positions for adherence to client item. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 6. SUPERVISION and contact information for the person AllianzGI US supervises and monitors the primarily responsible for supervising Mr. advice its portfolio managers provide to Ewald’s investment advisory activities is clients through regular reviews of client Armin Sandhoevel, CIO, Infrastructure Equity, trading and positions for adherence to client (212) 739-3300. investment guidelines and AllianzGI US’s internal policies and procedures. The name and contact information for the person Catherine Helleux primarily responsible for supervising Ms. Helleux’s investment advisory activities is 1633 Broadway, New York, NY 10019, (212) Armin Sandhoevel, CIO, Infrastructure Equity, 739-3300 (212) 739-3300.
ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Peter Ellersiek Catherine Helleux (1978) Allianz Global Investors GmbH, Director, Head of Transactions Americas, Bockenheimer Landstrasse 42-44, 60323 Infrastructure Equity Frankfurt am Main, Germany, +49 69 2443 1 Ms. Helleux is a director and Head of 4881 Transactions Americas with Allianz Global Investors, which she joined in 2017. As a ITEM 2. EDUCATION BACKGROUND AND member of the Infrastructure Equity team, BUSINESS EXPERIENCE she works closely with developers and other stakeholders to identify quality renewable Peter Ellersiek (1986) energy infrastructure assets for investment, Vice President, Analyst, Infrastructure Equity and to leverage her and the firm’s ability to Mr. Ellersiek is Vice President in appropriately assess and mitigate specific Infrastructure Equity´s Investment Strategy construction and development risks. Ms. team at AllianzGI, which he joined in May Helleux has 13 years of investment-industry experience. She was previously a project 2014. In his function, Mr. Ellersiek finance banker in the energy group at Société contributes to the definition of the asset class’ Générale. Ms. Helleux has a double MSc. from strategy targets and the overall development HEC (France) and University of Otago (New of new investment vehicles, the Zealand). communication with investors as well as the
52 Allianz Global Investors U.S. LLC strategic team development. In addition, he Roderick MacDonald acts as director in two holding corporations Allianz Global Investors GmbH, of the Teams fund structures. He started his Bockenheimer Landstrasse 42-44, 60323 career in January 2012 at a Frankfurt based Frankfurt am Main, Germany, +49 69 2443 1 investment advisory boutique where he 5221 carried out equity investments in the renewable energy sector for institutional ITEM 2. EDUCATION BACKGROUND AND investors. Mr. Ellersiek holds a Master’s BUSINESS EXPERIENCE degree in Economics from the University of Roderick MacDonald (1971) Muenster. Director, Transaction, Infrastructure Equity
ITEM 3. DISCIPLINARY INFORMATION Roderick Macdonald is a Director of the Transaction Team based in Frankfurt. His There is no information to report under this responsibilities include the execution of all item. transaction aspects along the acquisition
work stream, including deal sourcing, due ITEM 4. OTHER BUSINESS ACTIVITIES diligence, negotiations, investment proposal Peter Ellersiek is employed by Allianz Global preparation and presentation, closing and Investors GmbH, an advisory affiliate of interim post-closing asset management. Mr. AllianzGI US In rendering investment MacDonald joined Allianz Global Investors at advisory services with respect to Multi-Asset the beginning of 2009 where he worked on strategies to its clients, including U.S. the launch of the Allianz SE solar investment registered investment companies, AllianzGI program and executed transactions for the US uses the resources of Mr. Ellersiek to provide portfolio management services to Carbon Investment Portfolio of Allianz SE, an AllianzGI US clients. In providing such investment program aimed at achieving services, Mr. Ellersiek is considered an carbon neutrality for Allianz SE. In 2012, he "associated person" of AllianzGI US as that was part of the team responsible for the term is defined in the Investment Advisers successful set-up and launch of the Act of 1940, as amended ("Advisers Act"). renewable energy business and acquisition platform at Allianz Global Investors GmbH. ITEM 5. ADDITIONAL COMPENSATION His main responsibilities currently revolve There is no information to report under this around the acquisition of wind and solar item. projects for Luxembourg domiciled funds. Roderick has led and worked on over 330 MW ITEM 6. SUPERVISION of closed transactions in the solar (PV) and wind energy sectors from 2006 to the present. AllianzGI US supervises and monitors the Prior to joining Allianz Global Investors, advice its portfolio managers provide to Roderick worked at a boutique investment clients through regular reviews of client trading and positions for adherence to client firm focused on renewable energy investment guidelines and AllianzGI US’s transactions and a real estate private equity internal policies and procedures. The name fund, both located in Frankfurt, Germany. and contact information for the person Before moving to Frankfurt, He worked at primarily responsible for supervising Mr. Goldman, Sachs & Co and Cravath, Swaine & Ellersiek’s investment advisory activities is Moore in New York. He is Managing Director Martin Ewald, Head of Investment Strategy, of Allianz Carbon Investments a non- Infrastructure Equity, 44 (0) 20 3246 7172. AllianzGI entity. Mr. MacDonald holds an MBA from Georgetown University’s
McDonough School of Business in
Washington D.C., where he was a merit scholar and a Karl F. Landegger scholar at the
53 Allianz Global Investors U.S. LLC
Georgetown University Walsch School of Director, Head of Portfolio Management, Asset Foreign Service. Controlling, Infrastructure Equity Dirk Raab joined Allianz Global Investors as ITEM 3. DISCIPLINARY INFORMATION Director and Head of Portfolio Management in January 2016. In his function, he accounts There is no information to report under this for the ongoing performance and structure of item. infrastructure equity funds, supports the
asset class in its internal and external ITEM 4. OTHER BUSINESS ACTIVITIES development and takes responsibility for Roderick MacDonald is employed by Allianz investor relation matters. In his previous Global Investors GmbH, an advisory affiliate position at Union Investment, Mr. Raab was of AllianzGI US In rendering investment responsible for the client portfolio advisory services with respect to Multi-Asset management of Private Equity fund-of-funds strategies to its clients, including U.S. as well as the sourcing and monitoring of registered investment companies, AllianzGI external asset managers in the field of US uses the resources of Mr. MacDonald to Alternative Investments. In addition to that, provide portfolio management services to he implemented respective regulatory AllianzGI US clients. In providing such requirements (e.g. EMIR, AIFMD, MIFIR). As services, Mr. MacDonald is considered an CFO and Partner of a venture capital firm "associated person" of AllianzGI US as that from 2002 to 2008, he was responsible for term is defined in the Investment Advisers finance, investment controlling and investor Act of 1940, as amended ("Advisers Act"). relation matters. Furthermore, he represented the interests of the company as a ITEM 5. ADDITIONAL COMPENSATION member of the board of several portfolio companies. In the meantime, Mr. MacDonald There is no information to report under this has gained more than 15 years of experience item. in different functions of portfolio and fund management and advised on more than 50 ITEM 6. SUPERVISION transactions in the field of Alternatives. He holds a Masters in Media Management from AllianzGI US supervises and monitors the the RheinMain University of Applied Sciences advice its portfolio managers provide to in Wiesbaden. clients through regular reviews of client trading and positions for adherence to client investment guidelines and AllianzGI US’s ITEM 3. DISCIPLINARY INFORMATION internal policies and procedures. The name There is no information to report under this and contact information for the person item. primarily responsible for supervising Mr. MacDonald’s investment advisory activities is ITEM 4. OTHER BUSINESS ACTIVITIES Thomas Engelmann, Head of Transaction Management, Infrastructure Equity, +49 89 Dirk Raab is employed by Allianz Global 1220 7234. Investors GmbH, an advisory affiliate of AllianzGI US In rendering investment advisory services with respect to Multi-Asset strategies to its clients, including U.S. Dirk Raab registered investment companies, AllianzGI Allianz Global Investors GmbH, 6a, route de US uses the resources of Mr. Raab to provide Treves, Senningerberg, L-2633, Luxembourg, portfolio management services to AllianzGI +352 463 463 7252 US clients. In providing such services, Mr. Raab is considered an "associated person" of ITEM 2. EDUCATION BACKGROUND AND AllianzGI US as that term is defined in the BUSINESS EXPERIENCE Investment Advisers Act of 1940, as amended ("Advisers Act"). Dirk Raab (1976)
54 Allianz Global Investors U.S. LLC
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this item. item.
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the Pascal Geiter is employed by Allianz Global advice its portfolio managers provide to Investors GmbH, an advisory affiliate of clients through regular reviews of client AllianzGI US In rendering investment trading and positions for adherence to client advisory services with respect to Multi-Asset investment guidelines and AllianzGI US’s strategies to its clients, including U.S. internal policies and procedures. The name registered investment companies, AllianzGI and contact information for the person US uses the resources of Mr. Geiter to provide primarily responsible for supervising Mr. portfolio management services to AllianzGI Raab’s investment advisory activities is US clients. In providing such services, Mr. Armin Sandhoevel, CIO, Infrastructure Equity, Geiter is considered an "associated person" of (212) 739-3300. AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). Pascal Geiter ITEM 5. ADDITIONAL COMPENSATION Allianz Global Investors GmbH, 6a, route de Treves, Senningerberg, L-2633, Luxembourg, There is no information to report under this +352 463 463 7273 item.
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the Pascal Geiter (1981) advice its portfolio managers provide to Assistant Vice President, Portfolio Manager, clients through regular reviews of client Infrastructure Equity trading and positions for adherence to client investment guidelines and AllianzGI US’s Pascal Geiter is Assistant Vice President and internal policies and procedures. The name Portfolio Manager in the Portfolio and contact information for the person Management team of AllianzGI Infrastructure primarily responsible for supervising Mr. Equity, which he joined in November 2016. Geiter’s investment advisory activities is Dirk He started in the portfolio management Raab, Director, Head of Portfolio function at Union Investment Luxembourg Management, Infrastructure Equity, +352 463 S.A. in 2006. Besides the management of 463 7252. equity- and mutual funds, Mr. Geiter was mainly responsible for the management of alternative investments funds, specialized in private equity funds, hedge funds and asset- backed-security funds. After this role, he MULTI-ASSET joined LRI Invest S.A. in Luxembourg as Senior Portfolio Manager Alternative Herold C. Rohweder Investments focusing on real estate funds. 1633 Broadway, New York, NY 10019, (212) Mr. Geiter has accumulated more than 12 739-3300 years of experience in set-up and structuring, portfolio management, ongoing administration and acting as manager of ITEM 2. EDUCATION BACKGROUND AND investment entities of alternative investment BUSINESS EXPERIENCE funds. Mr. Geiter holds a diploma of Herold C. Rohweder, Ph.D. (1960) economics of the University of Trier. Managing Director, Global Chief Investment Officer, Multi Asset
55 Allianz Global Investors U.S. LLC
Mr. Rohweder is a managing director and Giorgio Carlino, CFA (1973) Global Chief Investment Officer Multi Asset Managing Director, Portfolio Manager, CIO with AllianzGI US, which he joined in 1989. Multi-Asset US He initiated the systematic asset- Mr. Carlino is a portfolio manager, a management effort for the firm’s equity and managing director and CIO Multi Asset US multi-asset investments, and is a member of with AllianzGI US, which he joined in 2001. As the firm’s Global Executive Committee. Mr. the co-chief investment officer of the Multi Rohweder was previously a portfolio Asset US team, he shares responsibility for all manager for the firm’s global balanced, US multi-asset investment functions. Mr. European equity and European fixed-income Carlino was previously a private-client strategies. He has 29 years of investment- portfolio manager, responsible for multi- industry experience. Mr. Rohweder has an manager selection. He has 17 years of M.A. in economics from Wayne State investment-industry experience. Before University and a Ph.D. in economics from the joining the firm, he was in fund management University of Kiel, Germany. at Commerzbank AM. He has a degree in
economics and finance from La Sapienza ITEM 3. DISCIPLINARY INFORMATION University in Rome, and a master’s degree in There is no information to report under this portfolio management and asset allocation item. from the Department of Statistics at the University of Bologna. Mr. Carlino is a CFA ITEM 4. OTHER BUSINESS ACTIVITIES charterholder.
There is no information to report under this Please refer to the descriptions of the licenses item. and professional designations listed at the end of this document. ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this ITEM 3. DISCIPLINARY INFORMATION item. There is no information to report under this item. ITEM 6. SUPERVISION AllianzGI US supervises and monitors the ITEM 4. OTHER BUSINESS ACTIVITIES advice its portfolio managers provide to There is no information to report under this clients through regular reviews of client item. trading and positions for adherence to client investment guidelines and AllianzGI US’s ITEM 5. ADDITIONAL COMPENSATION internal policies and procedures. The name and contact information for the person There is no information to report under this primarily responsible for supervising Mr. item. Rohweder’s investment advisory activities is Andreas Utermann, Member, Management ITEM 6. SUPERVISION Board of Allianz Global Investors GmbH and AllianzGI US supervises and monitors the Global Chief Investment Officer for Allianz advice its portfolio managers provide to Global Investors, +44 (0)20 7859 9000. clients through regular reviews of client trading and positions for adherence to client investment guidelines and AllianzGI US’s Giorgio Carlino internal policies and procedures. The name 1633 Broadway, New York, NY 10019, (212) and contact information for the person 739-3300 primarily responsible for supervising Mr. Carlino’s investment advisory activities is ITEM 2. EDUCATION BACKGROUND AND Herold Rohweder, Global CIO, Multi-Asset, BUSINESS EXPERIENCE (212) 739-3300.
56 Allianz Global Investors U.S. LLC
Claudio Marsala Paul Pietranico 1633 Broadway, New York, NY 10019, (212) 1633 Broadway, New York, NY 10019, (212) 739-3300 739-3300
ITEM 2. EDUCATION BACKGROUND AND ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE BUSINESS EXPERIENCE Claudio Marsala (1976) Paul Pietranico, CFA (1970) Director, Portfolio Manager Director, Portfolio Manager Mr. Marsala is a portfolio manager and a Mr. Pietranico is a portfolio manager and a director with AllianzGI US, which he joined in director with AllianzGI US, which he joined in 2001. As a member of the Multi Asset US 2005. As a member of the Multi Asset US team, he manages multi-asset mandates for team, he is a portfolio manager for the target- retail and institutional clients. Mr. Marsala date portfolios, as well as for other asset- previously led the quantitative efforts of the allocation portfolios, including 529 college- firm’s Multi Asset team in Italy, focusing on savings plans. Mr. Pietranico has 22 years of systematic multi-asset products; before that, investment-industry experience. He he worked in risk management. Mr. Marsala previously worked at Charles Schwab & Co., has 16 years of investment-industry focusing on research related to portfolio experience. He has a degree in economics simulation, optimization and construction; and financial markets from the University of asset allocation; retirement planning; risk Pisa in Italy, and a master’s degree in analysis; and investment-manager due quantitative finance from the University of diligence. Mr. Pietranico has a B.S. in physics, Turin. an M.A. in philosophy of science and an M.S. in engineering economic systems and ITEM 3. DISCIPLINARY INFORMATION operations research from Stanford University. He is a CFA charterholder. There is no information to report under this item. Please refer to the descriptions of the professional designations listed at the end of ITEM 4. OTHER BUSINESS ACTIVITIES this document. There is no information to report under this item. ITEM 3. DISCIPLINARY INFORMATION
ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this Item. There is no information to report under this item. ITEM 4. OTHER BUSINESS ACTIVITIES
ITEM 6. SUPERVISION There is no information to report under this AllianzGI US supervises and monitors the Item. advice its portfolio managers provide to clients through regular reviews of client ITEM 5. ADDITIONAL COMPENSATION trading and positions for adherence to client There is no information to report under this investment guidelines and AllianzGI US’s Item. internal policies and procedures. The name and contact information for the person primarily responsible for supervising Mr. ITEM 6. SUPERVISION Marsala’s investment advisory activities is AllianzGI US supervises and monitors the Giorgio Carlino, CIO Multi-Asset US, (212) advice its portfolio managers provide to 739-3300. clients through regular reviews of client trading and positions for adherence to client
57 Allianz Global Investors U.S. LLC
investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 6. SUPERVISION and contact information for the person primarily responsible for supervising Mr. AllianzGI US supervises and monitors the Pietranico’s investment advisory activities is advice its portfolio managers provide to Giorgio Carlino, CIO Multi-Asset US, (212) clients through regular reviews of client 739-3300. trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name and contact information for the person Heather Bergman primarily responsible for supervising Ms. th 600 West Broadway, 29 Floor, San Diego, CA Bergman’s investment advisory activities is 92101, (619) 687-8000 Giorgio Carlino, CIO Multi-Asset US, (212) 739-3300.
ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Rahul Malhotra Heather Bergman (1979) 1633 Broadway, New York, NY 10019, (212) Vice President, Portfolio Manager 739-3300 Ms. Bergman is a portfolio manager and a vice president with AllianzGI US, which she ITEM 2. EDUCATION BACKGROUND AND joined in 2011. As a member of the Multi BUSINESS EXPERIENCE Asset US team, she manages the investment functions around the 529 portfolios, Rahul Malhotra (1975) including monitoring the portfolios and the Director, Portfolio Manager underlying managers driving the portfolio- Dr. Malhotra is a portfolio manager and a update process and working with the state director with AllianzGI US, which he joined in investment boards that oversee the 529 2012. As a member of the Multi Asset US programs. Ms. Bergman has 12 years of team, he is responsible for quantitative investment-industry experience. Before research and development. Dr. Malhotra has joining the firm, she taught at New York 10 years of investment-industry experience. University and the University of California, Before joining the firm, he worked at Nomura Los Angeles; before that, she was a Securities International in New York, where macroeconomic analyst at a global hedge he led its equity-analytics effort and fund, covering both developed and emerging developed strategies for proprietary trading. markets. Ms. Bergman has an M.A. from While at Nomura, Mr. Malhotra built the Columbia University and a Ph.D. in political firm’s suites of equity risk models for US and economy from the University of California, global markets; developed techniques for Los Angeles. scenario analysis, performance attribution and tail risk modeling; and researched and ITEM 3. DISCIPLINARY INFORMATION ran quantitative trading strategies for the equity and options markets. Previously, he There is no information to report under this worked at Lehman Brothers and GE Global Item. Research, where he developed options- market-making strategies and methodologies ITEM 4. OTHER BUSINESS ACTIVITIES for risk modeling. Mr. Malhotra has a B.S. in There is no information to report under this physics from the California Institute of Technology and a Ph.D. in theoretical particle Item. physics from the University of Texas at Austin. ITEM 5. ADDITIONAL COMPENSATION Please refer to the descriptions of the licenses There is no information to report under this and professional designations listed at the Item. end of this document.
58 Allianz Global Investors U.S. LLC
from the University of California, San Diego. ITEM 3. DISCIPLINARY INFORMATION He is a CFA charterholder and a member of The New York Society of Security Analysts. There is no information to report under this Item. Please refer to the descriptions of the licenses and professional designations listed at the ITEM 4. OTHER BUSINESS ACTIVITIES end of this document.
Registered representative of affiliated broker- ITEM 3. DISCIPLINARY INFORMATION dealer, Allianz Global Investors Distributors LLC. There is no information to report under this Item. ITEM 5. ADDITIONAL COMPENSATION ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this Item. There is no information to report under this Item. ITEM 6. SUPERVISION ITEM 5. ADDITIONAL COMPENSATION AllianzGI US supervises and monitors the There is no information to report under this advice its portfolio managers provide to Item. clients through regular reviews of client trading and positions for adherence to client ITEM 6. SUPERVISION investment guidelines and AllianzGI US’s internal policies and procedures. The name AllianzGI US supervises and monitors the and contact information for the person advice its portfolio managers provide to primarily responsible for supervising Mr. clients through regular reviews of client Malhotra’s investment advisory activities is trading and positions for adherence to client Giorgio Carlino, CIO Multi-Asset US, (212) investment guidelines and AllianzGI US’s 739-3300. internal policies and procedures. The name and contact information for the person primarily responsible for supervising Mr. Bates’s investment advisory activities is Alistair Bates Giorgio Carlino, CIO Multi-Asset US, (212) 1633 Broadway, New York, NY 10019, (212) 739-3300. 739-3300
ITEM 2. EDUCATION BACKGROUND AND Matthias Müeller BUSINESS EXPERIENCE Allianz Global Investors GmbH, Alistair Bates, CFA (1985) Bockenheimer Landstrasse 42-44, 60323 Assistant Vice President, Portfolio Manager Frankfurt am Main, Germany, +49 69 24431 4141 Mr. Bates is a portfolio manager and an assistant vice president with Allianz Global Investors, which he joined in 2007. As a ITEM 2. EDUCATION BACKGROUND AND member of the Multi Asset US team, he BUSINESS EXPERIENCE manages multi-asset mandates for retail and Matthias Müeller, Ph.D. (1962) institutional clients. Mr. Bates was previously Managing Director, Chief Investment Officer, an analyst with the team, responsible for Multi Asset Active Allocation Strategies, underlying fund due diligence, and maintaining and developing the investment Portfolio Manager risk tools for the target-date and 529 college Mr. Müeller is a portfolio manager and a savings portfolios. He has 10 years of managing director with Allianz Global investment-industry experience. Mr. Bates Investors, which he joined in 1998. As CIO has a B.A. in economics and political science Multi Asset Active Allocation Strategies, he
59 Allianz Global Investors U.S. LLC
leads a team that specializes in dynamic asset-allocation strategies predominantly for large institutional investors. As a senior Eric Boess portfolio manager, Mr. Müeller manages both Allianz Global Investors GmbH, institutional mandates and retail funds. Bockenheimer Landstrasse 42-44, 60323 Before joining his current team, he was Frankfurt am Main, Germany, +49 69 24431 responsible for asset allocation and risk 4141 management for the balanced team; a senior investment strategist; and a European equity ITEM 2. EDUCATION BACKGROUND AND portfolio manager for Allianz BUSINESS EXPERIENCE Sachversicherungs-AG. Mr. Müeller has 23 Eric Boess, CFA (1971) years of investment-industry experience. He Managing Director and Global Head of Trading, has a doctorate in monetary economics from J. W. Goethe University in Frankfurt. Portfolio Manager Mr. Boess is a managing director and Global ITEM 3. DISCIPLINARY INFORMATION Head of Trading with Allianz Global Investors, which he joined in 1994. He leads the There is no information to report under this European Equity Derivatives Team. For more item. than 20 years, Mr. Boess has been developing and implementing overlay and absolute- ITEM 4. OTHER BUSINESS ACTIVITIES return strategies for the firm while helping integrate derivatives into the investment Matthias Müeller is employed by Allianz processes. He also traded fixed-income, Global Investors GmbH, an advisory affiliate equity and commodity derivatives. Mr. Boess of AllianzGI US. In rendering investment has 23 years of investment-industry advisory services with respect to the Dynamic experience and previously worked at Strategy Portfolios and Dynamic Multi-Asset Dresdner Bank. He is a CFA charterholder. Plus strategies to its clients, including U.S. registered investment companies, AllianzGI Please refer to the descriptions of the licenses US uses the resources of Dr. Müeller to and professional designations listed at the provide portfolio management services to end of this document. AllianzGI US clients. In providing such services, Dr. Müeller is considered an "associated person" of AllianzGI US as that ITEM 3. DISCIPLINARY INFORMATION term is defined in the Investment Advisers There is no information to report under this Act of 1940, as amended ("Advisers Act"). item.
ITEM 5. ADDITIONAL COMPENSATION ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this Eric Boess is employed by Allianz Global item. Investors GmbH, an advisory affiliate of AllianzGI US In rendering investment ITEM 6. SUPERVISION advisory services with respect to Multi-Asset AllianzGI US supervises and monitors the strategies to its clients, including U.S. advice its portfolio managers provide to registered investment companies, AllianzGI clients through regular reviews of client US uses the resources of Mr. Boess to provide trading and positions for adherence to client portfolio management services to AllianzGI investment guidelines and AllianzGI US’s US clients. In providing such services, Mr. internal policies and procedures. The name Boess is considered an "associated person" of and contact information for the person AllianzGI US as that term is defined in the primarily responsible for supervising Mr. Investment Advisers Act of 1940, as amended Müeller’s investment advisory activities is ("Advisers Act"). Herold Rohweder, Global CIO, Multi-Asset, (212) 739-3300. ITEM 5. ADDITIONAL COMPENSATION
60 Allianz Global Investors U.S. LLC
There is no information to report under this advisory services with respect to Multi-Asset item. strategies to its clients, including U.S. registered investment companies, AllianzGI ITEM 6. SUPERVISION US uses the resources of Mr. Kayser to provide portfolio management services to AllianzGI AllianzGI US supervises and monitors the US clients. In providing such services, Mr. advice its portfolio managers provide to Kayser is considered an "associated person" of clients through regular reviews of client AllianzGI US as that term is defined in the trading and positions for adherence to client Investment Advisers Act of 1940, as amended investment guidelines and AllianzGI US’s ("Advisers Act"). internal policies and procedures. The name and contact information for the person ITEM 5. ADDITIONAL COMPENSATION primarily responsible for supervising Mr. Boess’s investment advisory activities is There is no information to report under this Christoph Mast, Global Head of Trading, +49 item. 69 24431 4141. ITEM 6. SUPERVISION
AllianzGI US supervises and monitors the Armin Kayser advice its portfolio managers provide to Allianz Global Investors GmbH, clients through regular reviews of client Bockenheimer Landstrasse 42-44, 60323 trading and positions for adherence to client Frankfurt am Main, Germany, +49 69 24431 investment guidelines and AllianzGI US’s 4141 internal policies and procedures. The name and contact information for the person ITEM 2. EDUCATION BACKGROUND AND primarily responsible for supervising Mr. BUSINESS EXPERIENCE Kayser’s investment advisory activities is Marcus Stahlhacke, Analyst, +49 69 24431 Armin Kayser (1954) 4141. Senior Portfolio Manager Mr. Kayser is a senior portfolio manager with Allianz Global Investors, which he joined in Stefan Nixel 1998. He is a member of the Multi-Asset team Allianz Global Investors Japan Ltd., and manages retail and institutional Izumi Garden Tower 14F, 1-6-1 Roppongi strategies with a European and global focus. Tokyo, 106-6014, Japan, +81-3-6229-0282 Mr. Kayser has also managed emerging- market bond funds with the firm’s fixed- ITEM 2. EDUCATION BACKGROUND AND income team. He has 31 years of investment- BUSINESS EXPERIENCE industry experience and previously worked at Stefan Nixel, CFA, CAIA (1976) Swiss Bank Corporation. Mr. Kayser has a Managing Director, Portfolio Manager master’s degree in economics from the Mr. Nixel is a portfolio manager and a University of Mannheim. managing director with Allianz Global Investors, which he joined in 2004. He is on ITEM 3. DISCIPLINARY INFORMATION the Multi Asset–Multi Strategy team and There is no information to report under this manages portfolios, institutional mandates item. and retirement-provision funds. Mr. Nixel is responsible for research and development of investment strategies and new product ITEM 4. OTHER BUSINESS ACTIVITIES developments. He has 17 years of investment- industry experience. Mr. Nixel previously Armin Kayser is employed by Allianz Global worked on the quantitative portfolio- Investors GmbH, an advisory affiliate of management team at Deka. He has a B.S. in AllianzGI US In rendering investment international financial management from the
61 Allianz Global Investors U.S. LLC
University of Nuertingen and an M.S. in Frankfurt am Main, Germany, +49 69 24431 quantitative finance from the Frankfurt 4141 School of Finance & Management. He has been a CFA charterholder since 2007 and a ITEM 2. EDUCATION BACKGROUND AND CAIA charterholder since 2012. BUSINESS EXPERIENCE
Please refer to the descriptions of the licenses Michael Stamos, Ph.D., CFA (1977) and professional designations listed at the Director, Portfolio Manager end of this document. Mr. Stamos is a portfolio manager and a director with Allianz Global Investors, which ITEM 3. DISCIPLINARY INFORMATION he joined in 2007. As a member of the Multi Asset US team, he manages multi-asset There is no information to report under this mandates for institutional and retail clients. item. Mr. Stamos has 14 years of investment- industry experience. He was previously a ITEM 4. OTHER BUSINESS ACTIVITIES researcher at the Institute of Investment, Portfolio Management and Pension Finance Stefan Nixel is employed by Allianz Global at the University of Frankfurt, where he Investors Japan Ltd., an advisory affiliate of obtained his Ph.D. in finance. Mr. Stamos is a AllianzGI US. In rendering investment CFA charterholder. advisory services with respect to the Dynamic
Emerging Multi-Asset strategy to its clients, including U.S. registered investment Please refer to the descriptions of the licenses companies, AllianzGI US uses the resources of and professional designations listed at the Mr. Nixel to provide portfolio management end of this document. services to AllianzGI US clients. In providing such services, Mr. Nixel is considered an ITEM 3. DISCIPLINARY INFORMATION "associated person" of AllianzGI US as that There is no information to report under this term is defined in the Investment Advisers item. Act of 1940, as amended ("Advisers Act").
ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 5. ADDITIONAL COMPENSATION Michael Stamos is employed by Allianz Global There is no information to report under this Investors GmbH, an advisory affiliate of item. AllianzGI US In rendering investment
advisory services with respect to Multi-Asset ITEM 6. SUPERVISION strategies to its clients, including U.S. AllianzGI US supervises and monitors the registered investment companies, AllianzGI advice its portfolio managers provide to US uses the resources of Mr. Stamos to clients through regular reviews of client provide portfolio management services to trading and positions for adherence to client AllianzGI US clients. In providing such investment guidelines and AllianzGI US’s services, Mr. Stamos is considered an internal policies and procedures. The name "associated person" of AllianzGI US as that and contact information for the person term is defined in the Investment Advisers primarily responsible for supervising Mr. Act of 1940, as amended ("Advisers Act"). Nixel’s investment advisory activities is Kazuyuki Terao, Chief Investment Officer, ITEM 5. ADDITIONAL COMPENSATION Japan, +81 3 6229 0200. There is no information to report under this
item.
Michael Stamos ITEM 6. SUPERVISION Allianz Global Investors GmbH, AllianzGI US supervises and monitors the Bockenheimer Landstrasse 42-44, 60323 advice its portfolio managers provide to
62 Allianz Global Investors U.S. LLC
clients through regular reviews of client There is no information to report under this trading and positions for adherence to client Item. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 4. OTHER BUSINESS ACTIVITIES and contact information for the person primarily responsible for supervising Dr. Registered representative of affiliated broker- Stamos’s investment advisory activities is Dr. dealer, Allianz Global Investors Distributors Matthias Mueller, CIO Active Allocation LLC. Strategies, +49 69 24431 4141. Associated person of CPO/CTA, AllianzGI US.
STRUCTURED PRODUCTS ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this Greg P. Tournant Item. 1633 Broadway, New York, NY 10019, (212) 739-3300 ITEM 6. SUPERVISION AllianzGI US supervises and monitors the ITEM 2. EDUCATION BACKGROUND AND advice its portfolio managers provide to BUSINESS EXPERIENCE clients through regular reviews of client trading and positions for adherence to client Greg P. Tournant (1966) investment guidelines and AllianzGI US’s Managing Director, Portfolio Manager, Chief internal policies and procedures. The name Investment Officer, US Structured Products and contact information for the person Mr. Tournant is a portfolio manager, a primarily responsible for supervising Mr. managing director and CIO US Structured Tournant’s investment advisory activities is Products with AllianzGI US, which he joined Andreas Utermann, Member, Management in 2002. He is also Head of the Structured Board of Allianz Global Investors GmbH and Products team, which he created in 2005, and Global Chief Investment Officer for Allianz is the lead portfolio manager for all strategies Global Investors, +44 (0)20 7859 9000. managed on this platform. Mr. Tournant is also a member of the firm’s US Executive Committee. He has 22 years of investment- Stephen G. Bond-Nelson industry experience. Mr. Tournant was 1633 Broadway, New York, NY 10019, (212) previously co-CIO at Innovative Options 739-3300 Management and managed an equity-index option-based hedge fund, option programs on several open-end mutual funds and an ITEM 2. EDUCATION BACKGROUND AND open-end large-cap growth equity mutual BUSINESS EXPERIENCE fund. Before that, he was a senior research Stephen G. Bond-Nelson (1970) analyst at Eagle Asset Management, a strategy Managing Director, Portfolio Manager consultant for McKinsey & Co. and a sell-side research analyst for Raymond James. Mr. Mr. Bond-Nelson is a portfolio manager and Tournant has a B.S. from Trinity University director with AllianzGI US, which he joined in and an M.B.A. from the Kellogg School of 1999. He has portfolio-management and Business at Northwestern University. research responsibilities for the Structured Please refer to the descriptions of the licenses Products team, and has been with the team and professional designations listed at the since its inception in 2005. Mr. Bond-Nelson end of this document. has 25 years of investment-industry experience and was previously a research ITEM 3. DISCIPLINARY INFORMATION analyst and associate with Prudential Mutual Funds. Mr. Bond-Nelson has an M.B.A. from
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Rutgers University and a B.S. from Lehigh managed an equity-index option-based University. hedge fund and option programs on several Please refer to the descriptions of the licenses open-end mutual funds. Before that, he was and professional designations listed at the CIO at TLT Atlantic Asset Management and end of this document. TLT Capital Corp. Mr. Taylor has a B.A. from the University of Florida. ITEM 3. DISCIPLINARY INFORMATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this Item. There is no information to report under this Item. ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 4. OTHER BUSINESS ACTIVITIES Registered representative of affiliated broker- dealer, Allianz Global Investors Distributors There is no information to report under this LLC. Item.
ITEM 5. ADDITIONAL COMPENSATION ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this There is no information to report under this Item. Item.
ITEM 6. SUPERVISION ITEM 6. SUPERVISION AllianzGI US supervises and monitors the AllianzGI US supervises and monitors the advice its portfolio managers provide to advice its portfolio managers provide to clients through regular reviews of client clients through regular reviews of client trading and positions for adherence to client trading and positions for adherence to client investment guidelines and AllianzGI US’s investment guidelines and AllianzGI US’s internal policies and procedures. The name internal policies and procedures. The name and contact information for the person and contact information for the person primarily responsible for supervising Mr. primarily responsible for supervising Mr. Bond Nelson’s investment advisory activities Taylor’s investment advisory activities is Greg is Greg Tournant, Chief Investment Officer, US Tournant, Chief Investment Officer, US Structured Products, (212) 739-3300. Structured Products, (212) 739-3300.
Trevor L. Taylor THE VALUE EQUITY US TEAM 1633 Broadway, New York, NY 10019, (212) 739-3300 Ben J. Fischer 2100 Ross Avenue, Suite 700, Dallas, TX ITEM 2. EDUCATION BACKGROUND AND 75201, (800) 768-3219 BUSINESS EXPERIENCE
Trevor L. Taylor (1972) ITEM 2. EDUCATION BACKGROUND AND Managing Director, Portfolio Manager BUSINESS EXPERIENCE Mr. Taylor is a portfolio manager and a Ben J. Fischer, CFA (1941) managing director with AllianzGI US, which Managing Director, Vice Chair he joined in 2008. He has portfolio- management and research responsibilities Portfolio Manager for the Structured Products team. Mr. Taylor Mr. Fischer is a portfolio manager, an analyst, has 19 years of investment-industry a managing director and Vice Chair. He has experience. He was previously co-CIO at more than 50 years of experience in portfolio Innovative Options Management, where he
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management, investment analysis and research. As a member of the Value Equity US Paul A. Magnuson team, Mr. Fischer is the product team co-lead 2100 Ross Avenue, Suite 700, Dallas, TX for the Dividend Value and International 75201, (800) 768-3219 Value investment strategies. Before founding
NFJ in 1989, now the Value Equity US Team, ITEM 2. EDUCATION BACKGROUND AND he was chief investment officer for BUSINESS EXPERIENCE institutional and fixed-income strategies, and a senior vice president and a senior portfolio Paul A. Magnuson (1962) manager at NationsBank, which he joined in Managing Director, Portfolio Manager/Analyst 1971. Before that, Mr. Fischer was a securities Mr. Magnuson is a portfolio manager, an analyst at Chase Manhattan Bank and Clark, analyst and a managing director for the Value Dodge. He has a B.A. in economics and a J.D. Equity US Team. He is the product team lead from The University of Oklahoma, and an for the Mid Cap Value 100 strategy and co- M.B.A. from New York University, Leonard N. lead for the Small Cap Value strategy. Mr. Stern School of Business. Mr. Fischer is a CFA Magnuson has 32 years of investment- charterholder. industry experience. Before joining the firm in 1992, he was an assistant vice president at Please refer to the descriptions of the licenses NationsBank, which he joined in 1985. Mr. and professional designations listed at the Magnuson has a B.B.A. in finance from the end of this document. University of Nebraska.
ITEM 3. DISCIPLINARY INFORMATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this Item. Item.
ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 4. OTHER BUSINESS ACTIVITIES Registered representative of affiliated broker- Registered representative of affiliated broker- dealer, Allianz Global Investors Distributors dealer, Allianz Global Investors Distributors LLC. LLC.
ITEM 5. ADDITIONAL COMPENSATION ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this There is no information to report under this Item. Item.
ITEM 6. SUPERVISION ITEM 6. SUPERVISION AllianzGI US supervises and monitors the AllianzGI US supervises and monitors the advice its portfolio managers provide to advice its portfolio managers provide to clients through regular reviews of client clients through regular reviews of client trading and positions for adherence to client trading and positions for adherence to client investment guidelines and AllianzGI US’s investment guidelines and AllianzGI US internal policies and procedures. The name internal policies and procedures. The name and contact information for the person and contact information for the person primarily responsible for supervising Mr. primarily responsible for supervising Mr. Magnuson’s investment advisory activities is Fischer’s investment advisory activities is John Mowrey, CIO, Value Equity US, (800) Steve Berexa, Global CIO Equity, Global Head 768-3219. of Research, (415) 954-5400.
65 Allianz Global Investors U.S. LLC
clients through regular reviews of client Thomas W. Oliver trading and positions for adherence to client 2100 Ross Avenue, Suite 700, Dallas, TX investment guidelines and AllianzGI US’s 75201, (800) 768-3219 internal policies and procedures. The name and contact information for the person ITEM 2. EDUCATION BACKGROUND AND primarily responsible for supervising Mr. BUSINESS EXPERIENCE Oliver’s investment advisory activities is John Mowrey, CIO, Value Equity US, (800) 768- Thomas W. Oliver, CFA, CPA (1971) 3219. Managing Director, Portfolio Manager/Analyst Mr. Oliver is a portfolio manager, an analyst and a managing director for the Value Equity US Team. He is the product team lead for the R. Burns McKinney Large Cap Value investment strategy and a 2100 Ross Avenue, Suite 700, Dallas, TX product team co-lead for the Dividend Value, 75201, (800) 768-3219 All Cap Value and Mid Cap Value investment strategies. Mr. Oliver has 22 years of ITEM 2. EDUCATION BACKGROUND AND investment-industry experience in BUSINESS EXPERIENCE accounting, reporting, and financial analysis. Before joining the firm in 2005, he was a R. Burns McKinney, CFA (1973) manager of corporate reporting at Perot Managing Director, Portfolio Manager/Analyst Systems Corporation and an auditor at Mr. McKinney is a portfolio manager, an Deloitte & Touche. Mr. Oliver has a B.B.A. and analyst, a managing director and a CIO, Value an M.B.A. from the University of Texas. He is a Equity US Team. He is the product team co- CFA charterholder and certified public lead for the Dividend Value investment accountant. strategy and product team lead for the Global Dividend Value strategy. Mr. McKinney has 21 Please refer to the descriptions of the licenses years of investment-industry experience in and professional designations listed at the equity research, financial analysis and end of this document. investment banking. Before joining the firm in 2006, he was an equity analyst covering the energy sector for Evergreen Investments in ITEM 3. DISCIPLINARY INFORMATION Boston, an investment-banking analyst at There is no information to report under this Alex. Brown & Sons, a vice president in equity Item. research at Merrill Lynch and an equity analyst at Morgan Stanley. Mr. McKinney has ITEM 4. OTHER BUSINESS ACTIVITIES a B.A. in economics from Dartmouth College and an M.B.A. from The Wharton School, The Registered representative of affiliated broker- University of Pennsylvania. He is a CFA dealer, Allianz Global Investors Distributors charterholder. LLC. Please refer to the descriptions of the licenses ITEM 5. ADDITIONAL COMPENSATION and professional designations listed at the end of this document. There is no information to report under this Item. ITEM 3. DISCIPLINARY INFORMATION
There is no information to report under this
Item.
ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 6. SUPERVISION AllianzGI US supervises and monitors the advice its portfolio managers provide to
66 Allianz Global Investors U.S. LLC
Registered representative of affiliated broker- Please refer to the descriptions of the licenses dealer, Allianz Global Investors Distributors and professional designations listed at the LLC. end of this document.
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this Item. Item.
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this AllianzGI US supervises and monitors the Item. advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client ITEM 5. ADDITIONAL COMPENSATION investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures. The name Item. and contact information for the person primarily responsible for supervising Mr. ITEM 6. SUPERVISION McKinney’s investment advisory activities is Jeffrey Parker, Managing Director, Senior AllianzGI US supervises and monitors the Portfolio Manager, CIO Equity US, (415) 954- advice its portfolio managers provide to 5400. clients through regular reviews of client trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name L. Baxter Hines and contact information for the person 2100 Ross Avenue, Suite 700, Dallas, TX primarily responsible for supervising Mr. 75201, (800) 768-3219 Hine’s investment advisory activities is John Mowrey, CIO, Value Equity US, (800) 768- ITEM 2. EDUCATION BACKGROUND AND 3219. BUSINESS EXPERIENCE
L. Baxter Hines, CFA (1980) Managing Director, Portfolio Manager/Analyst Jeff N. Reed Head of Research, Value Equity US 2100 Ross Avenue, Suite 700, Dallas, TX 75201, (800) 768-3219 Mr. Hines is a portfolio manager, an analyst, a managing director and Head of Research for ITEM 2. EDUCATION BACKGROUND AND the Value Equity US Team. He is the product BUSINESS EXPERIENCE team lead for the International Value II and International Small Cap Value investment Jeff N. Reed, CFA (1980) strategies, and is co-lead for the International Director, Portfolio Manager/Analyst Value strategy. Mr. Hines has 12 years of Mr. Reed is a portfolio manager, an analyst investment-industry experience. Before and a director for the Value Equity US Team. joining the firm in 2008, he was with the He is the product team co-lead for the Mid Teacher Retirement System of Texas and Cap Value and All Cap Value investment worked as a market-data specialist for strategies. Mr. Reed has 13 years of Reuters. Mr. Hines has a B.A. in economics experience in investment and financial from the University of Virginia and an M.B.A. analysis. Before joining the firm in 2007, he from the University of Texas, McCombs was a credit analyst at Frost Bank. Mr. Reed School of Business. He is a CFA charterholder. has a B.B.A. in finance from Texas Christian University and an M.B.A. from the University
67 Allianz Global Investors U.S. LLC
of Texas, McCombs School of Business. He is a he also has portfolio management and CFA charterholder. research responsibilities for both international and domestic strategies. Mr. Please refer to the descriptions of the licenses Mowrey joined the firm in 2007 as a and professional designations listed at the quantitative-research assistant and product end of this document. specialist. He has 11 years of investment- industry experience. Mr. Mowrey has a B.A. in ITEM 3. DISCIPLINARY INFORMATION political science from Rhodes College and an M.B.A. from Southern Methodist University. There is no information to report under this He is a CFA charterholder. Item.
Please refer to the descriptions of the licenses ITEM 4. OTHER BUSINESS ACTIVITIES and professional designations listed at the There is no information to report under this end of this document. Item. ITEM 3. DISCIPLINARY INFORMATION ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this There is no information to report under this Item. Item. ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 6. SUPERVISION There is no information to report under this AllianzGI US supervises and monitors the Item. advice its portfolio managers provide to clients through regular reviews of client ITEM 5. ADDITIONAL COMPENSATION trading and positions for adherence to client investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures. The name Item. and contact information for the person primarily responsible for supervising Mr. ITEM 6. SUPERVISION Reed’s investment advisory activities is John Mowrey, CIO, Value Equity US, (800) 768- AllianzGI US supervises and monitors the 3219. advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client investment guidelines and AllianzGI US’s John R. Mowrey internal policies and procedures. The name 2100 Ross Avenue, Suite 700, Dallas, TX and contact information for the person 75201, (800) 768-3219 primarily responsible for supervising Mr. Mowrey’s investment advisory activities is ITEM 2. EDUCATION BACKGROUND AND Jeffrey Parker, Managing Director, Senior Portfolio Manager, CIO Equity US, (415) 954- BUSINESS EXPERIENCE 5400. John R. Mowery, CFA (1983) Managing Director, Portfolio Manager/Analyst CIO, Value Equity US J. Garth Reilly Mr. Mowrey is a portfolio manager, an 2100 Ross Avenue, Suite 700, Dallas, TX analyst, a managing director and a CIO for the 75201, (800) 768-3219 Value Equity US Team. He is the product team co-lead for the Mid-Cap Value, Small-Cap ITEM 2. EDUCATION BACKGROUND AND Value and Emerging Markets Value strategies; BUSINESS EXPERIENCE
68 Allianz Global Investors U.S. LLC
J. Garth Reilly (1981) MANAGED ACCOUNTS Vice President, Portfolio Manager, Value Equity US The Managed Accounts investment strategies Mr. Reilly is a portfolio manager, an analyst are based on model recommendations that and a vice president with Allianz Global may be provided by both affiliated and Investors. He is a member of the Value Equity unaffiliated investment advisers (the “Sub- US team. Earlier at the firm, Mr. Reilly was a Adviser”). The affiliated Sub-Adviser that senior research analyst for the team; before provides investment model recommendations to AllianzGI US is: Pacific that, he was a performance analyst with Investment Management Company LLC. responsibilities that included performance measurement and portfolio analytics. Mr.
Reilly has 12 years of investment-industry experience. Before joining the firm in 2005, PACIFIC INVESTMENT he was an intern at Luther King Capital MANAGEMENT COMPANY Management and Citigroup Alternative Investments. Mr. Reilly has a B.A. in political LLC (“PIMCO”) economy from Princeton University and an M.B.A. from Southern Methodist University. David L. Braun Pacific Investment Management Company ITEM 3. DISCIPLINARY INFORMATION LLC, 650 Newport Center Drive, Newport There is no information to report under this Beach, CA 92660, (949) 720-6000 Item. ITEM 2. EDUCATION BACKGROUND AND ITEM 4. OTHER BUSINESS ACTIVITIES BUSINESS EXPERIENCE There is no information to report under this David L. Braun, CFA (1971) Item. Managing Director, Portfolio Manager David L. Braun is a managing director in the ITEM 5. ADDITIONAL COMPENSATION New York office and head of the U.S. financial institutions group (FIG) portfolio There is no information to report under this management team and a senior member of Item. the liability driven investment portfolio management team. He oversees ITEM 6. SUPERVISION management of fixed income investment AllianzGI US supervises and monitors the portfolios for both affiliated and non- advice its portfolio managers provide to affiliated bank, insurance, corporate and clients through regular reviews of client stable value clients. Prior to joining PIMCO in trading and positions for adherence to client 2009, he was a derivatives portfolio manager investment guidelines and AllianzGI US’s and chief risk officer at Hartford Investment internal policies and procedures. The name Management Co., a division of The Hartford. and contact information for the person Mr. Braun has over 25 years of investment, primarily responsible for supervising Mr. actuarial and risk management experience. Reilly’s investment advisory activities is John He holds an undergraduate degree in Mowrey, CIO, Value Equity US, (800) 768- mathematics from the University of 3219. Connecticut. He is also a Chartered Financial Analyst (“CFA”).
Please refer to the descriptions of the licenses and professional designations listed at the end of this document.
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ITEM 3. DISCIPLINARY INFORMATION managed euro and pan-European portfolios and worked closely with many Allianz-related Mr. Braun has no reportable disciplinary companies. He also served as a managing history. director of Allianz Global Investors KAG. Prior to these roles, Mr. Mather co-headed PIMCO’s ITEM 4. OTHER BUSINESS ACTIVITIES mortgage- and asset-backed securities team. Mr. Braun is not actively engaged in any other Prior to joining PIMCO in 1998, he was a fixed investment-related business or occupation. income trader specializing in mortgage- backed securities at Goldman Sachs in New ITEM 5. ADDITIONAL COMPENSATION York. He has 23 years of investment experience and holds a master's degree in Mr. Braun receives no additional engineering, as well as undergraduate compensation for providing advisory services degrees, from the University of Pennsylvania. to PIMCO’s clients. ITEM 3. DISCIPLINARY INFORMATION ITEM 6. SUPERVISION Mr. Mather has no reportable disciplinary While your portfolio manager is responsible history. for managing the individual investments in your account, PIMCO’s Investment ITEM 4. OTHER BUSINESS ACTIVITIES Committee is responsible for developing key portfolio strategies that are implemented Mr. Mather is a registered representative of across PIMCO’s account base. This process is PIMCO Investments LLC, a U.S. registered led by PIMCO’s Group Chief Investment broker-dealer affiliated with PIMCO. Mr. Officer, Daniel J. Ivascyn, with the assistance Mather is also an Associated Person of PIMCO of PIMCO’s Chief Investment Officers (“CIOs”), registered with the National Futures who each oversee specific segments of assets. Association. The team of five CIOs includes Andrew Balls (CIO Global), Mark R. Kiesel (CIO Global ITEM 5. ADDITIONAL COMPENSATION Credit), Scott A. Mather (CIO Core Strategies), Mr. Mather receives no additional Mihir P. Worah (CIO Real Return and Asset compensation for providing advisory services Allocation), and Marc P. Seidner (CIO Non- to PIMCO’s clients. traditional Strategies). Mr. Braun reports up to an appropriate asset segment CIO, who can ITEM 6. SUPERVISION be reached at 949-720-6000. While your portfolio manager is responsible for managing the individual investments in your account, PIMCO’s Investment
Scott A. Mather Committee is responsible for developing key Pacific Investment Management Company portfolio strategies that are implemented LLC, 650 Newport Center Drive, Newport across PIMCO’s account base. This process is Beach, CA 92660, (949) 720-6000 led by PIMCO’s Group Chief Investment Officer, Daniel J. Ivascyn, with the assistance ITEM 2. EDUCATION BACKGROUND AND of PIMCO’s Chief Investment Officers (“CIOs”), BUSINESS EXPERIENCE who each oversee specific segments of assets. The team of five CIOs includes Andrew Balls Scott A. Mather (1969) (CIO Global), Mark R. Kiesel (CIO Global Managing Director, Chief Investment Officer Credit), Scott A. Mather (CIO Core Strategies), Scott A. Mather is CIO U.S. Core Strategies, a Mihir P. Worah (CIO Real Return and Asset member of the Investment Committee and Allocation), and Marc P. Seidner (CIO Non- the Executive Committee, and a managing traditional Strategies). Mr. Mather reports up director in PIMCO’s Newport Beach office. to the Group Chief Investment Officer, who Previously, he was Deputy CIO and head of can be reached at 949-720-6000. global portfolio management. Prior to that, he led portfolio management in Europe,
70 Allianz Global Investors U.S. LLC
GLOBAL FIXED INCOME ITEM 5. ADDITIONAL COMPENSATION Ms. Conway receives no additional compensation. Malie Conway Allianz Global Investors GmbH, UK Branch, ITEM 6. SUPERVISION 199 Bishopsgate, London, EC2M 3TY, United AllianzGI US supervises and monitors the Kingdom, +44 20 3246 7163 advice its portfolio managers provide to clients through regular reviews of client ITEM 2. EDUCATION BACKGROUND AND trading and positions for adherence to client BUSINESS EXPERIENCE investment guidelines and AllianzGI US’s internal policies and procedures. The name Malie Conway (1967) and contact information for the person CIO Global Fixed Income primarily responsible for supervising Ms. Ms. Conway is CIO Global Fixed Income with Conway’s investment advisory activities is Allianz Global Investors; she joined the firm Dixmier Franck, Global Head of Fixed Income in 2016 following the acquisition and and CIO European Fixed Income, +33 1 7305 integration of Rogge Global Partners, which 7412. she joined in 1998. She chairs the Investment
Committee. Ms. Conway has more than 30 years of investment-industry experience. While at Rogge Global Partners, she was David Newman responsible for launching and managing the Allianz Global Investors GmbH, UK Branch, global credit portfolio. Ms. Conway was 199 Bishopsgate, London, EC2M 3TY, United previously a member of the senior portfolio Kingdom, +44 20 3246 7789 management team at Rothschild & Co. responsible for global, US and short-term ITEM 2. EDUCATION BACKGROUND AND mandates; before that, she was a portfolio manager at J.P. Morgan responsible for BUSINESS EXPERIENCE global, US and short-term mandates. Ms. David Newman (1967) Conway has a B.A. with honors in finance and Managing Director, Head of Global High Yield marketing from London South Bank Mr. Newman is a managing director and University. Head of Global High Yield with Allianz Global
Investors; he joined the firm in 2016 ITEM 3. DISCIPLINARY INFORMATION following the acquisition and integration of Ms. Conway has no reportable disciplinary Rogge Global Partners, which he joined in history. 2009. Mr. Newman is responsible for overseeing the global high yield and multi- ITEM 4. OTHER BUSINESS ACTIVITIES asset credit strategies. He has 29 years of investment-industry experience. While Malie Conway is employed by Allianz Global working at Rogge Global Partners, Mr. Investors GmbH, UK Branch, an advisory Newman was Head of Global High Yield; affiliate of AllianzGI US. In rendering before that, he held various senior credit investment advisory services with respect to market, research and trading roles at strategies to its clients, including U.S. Citigroup, UBS and Hambros Bank. Mr. registered investment companies, AllianzGI Newman has a B.A. with honors in geography US uses the resources of Ms. Conway to from University College London and an M.B.A. provide portfolio management services to from Cass Business School, City, University of AllianzGI US clients. In providing such London. He holds the Financial Conduct services, Ms. Conway is considered an Authority CF 30 license and the Associate of "associated person" of AllianzGI US as that the Chartered Institute of Bankers term is defined in the Investment Advisers designation. Act of 1940, as amended ("Advisers Act").
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ITEM 3. DISCIPLINARY INFORMATION 2011. Mr. Le Beron is responsible for Mr. Newman has no reportable disciplinary overseeing the global government and global history. aggregate fixed-income strategies. He has 21 years of investment-industry experience. ITEM 4. OTHER BUSINESS ACTIVITIES While working at Rogge Global Partners, Mr. Le Beron was Head of Developed Markets David Newman is employed by Allianz Global focusing on global government and global Investors GmbH, UK Branch, an advisory aggregate fixed-income strategies. Before affiliate of AllianzGI US. In rendering that, he was a global government bond investment advisory services with respect to portfolio manager at J.P. Morgan Asset strategies to its clients, including U.S. Management. Mr. Le Beron has a B.Sc. in registered investment companies, AllianzGI management from The London School of US uses the resources of Mr. Newman to Economics and Political Science. He is a CFA provide portfolio management services to charterholder and a member of the CFA AllianzGI US clients. In providing such Society of the UK. services, Mr. Newman is considered an "associated person" of AllianzGI US as that Please refer to the descriptions of the licenses term is defined in the Investment Advisers and professional designations listed at the Act of 1940, as amended ("Advisers Act"). end of this document.
ITEM 5. ADDITIONAL COMPENSATION ITEM 3. DISCIPLINARY INFORMATION Mr. Newman receives no additional Mr. Le Beron has no reportable disciplinary compensation. history.
ITEM 6. SUPERVISION ITEM 4. OTHER BUSINESS ACTIVITIES AllianzGI US supervises and monitors the advice its portfolio managers provide to Julian Le Beron is employed by Allianz Global clients through regular reviews of client Investors GmbH, UK Branch, an advisory trading and positions for adherence to client affiliate of AllianzGI US. In rendering investment guidelines and AllianzGI US’s investment advisory services with respect to internal policies and procedures. The name strategies to its clients, including U.S. and contact information for the person registered investment companies, AllianzGI primarily responsible for supervising Mr. US uses the resources of Mr. Le Beron to Newman’s investment advisory activities is provide portfolio management services to Malie Conway, CIO Global Fixed Income, +44 AllianzGI US clients. In providing such 20 3246 7163. services, Mr. Le Beron is considered an "associated person" of AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ("Advisers Act"). Julian Le Beron Allianz Global Investors GmbH, UK Branch, ITEM 5. ADDITIONAL COMPENSATION 199 Bishopsgate, London, EC2M 3TY, United Mr. Le Beron receives no additional Kingdom, +44 20 3246 7765 compensation.
ITEM 2. EDUCATION BACKGROUND AND ITEM 6. SUPERVISION BUSINESS EXPERIENCE AllianzGI US supervises and monitors the Julian Le Beron, CFA (1976) advice its portfolio managers provide to Managing Director, Head of Developed Markets clients through regular reviews of client Mr. Le Beron is a director and Head of trading and positions for adherence to client Developed Markets with Allianz Global investment guidelines and AllianzGI US’s Investors; he joined the firm in 2016 internal policies and procedures. The name following the acquisition and integration of and contact information for the person Rogge Global Partners, which he joined in primarily responsible for supervising Mr. Le
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Beron’s investment advisory activities is and contact information for the person Malie Conway, CIO Global Fixed Income, +44 primarily responsible for supervising Mr. 20 3246 7163. Delaney’s investment advisory activities is Jonathan Yip, Director, Head of Global Investment Grade Credit, (212) 739 3884.
Daniel Delaney 1633 Broadway, New York, New York 10019 (212) 739-3884 Jonathan Yip Allianz Global Investors GmbH, UK Branch, ITEM 2. EDUCATION BACKGROUND AND 199 Bishopsgate, London, EC2M 3TY, United BUSINESS EXPERIENCE Kingdom, +44 20 7842 8472
Daniel Delaney, CFA (1981) ITEM 2. EDUCATION BACKGROUND AND Portfolio Manager BUSINESS EXPERIENCE Mr. Delaney is a portfolio manager with Allianz Global Investors; he joined the firm in Jonathan Yip, CFA (1974) 2016 following the acquisition and Director, Head of Global Investment Grade integration of Rogge Global Partners, which Credit he joined in 2006. Mr. Delaney is a portfolio manager for the global investment grade Mr. Yip is a director and Head of Global strategy. He has 15 years of investment- Investment Grade Credit with Allianz Global industry experience. While working at Rogge Investors; he joined the firm in 2016 Global Partners, Mr. Delaney had research following the acquisition and integration of and trading responsibilities. He previously Rogge Global Partners, which he joined in worked at BlueCrest Capital Management. Mr. 2011. Mr. Yip is responsible for overseeing the Delaney has a B.A. with honors in business global investment grade, financial and economics from University of Exeter. He is a securitized credit strategies. He has 20 years CFA charterholder. of investment-industry experience. While
working at Rogge Global Partners, Mr. Yip was Please refer to the descriptions of the licenses and professional designations listed at the a senior partner and global investment grade end of this document portfolio manager, and prior to that he was a credit analyst covering financials. Before that, ITEM 3. DISCIPLINARY INFORMATION he held roles as both a credit portfolio manager focusing on investment grade, high Mr. Delaney has no reportable disciplinary yield, and emerging market strategies, and a history. credit analyst covering financials and ITEM 4. OTHER BUSINESS ACTIVITIES industrials at PIMCO. Mr. Yip has a B.S. in There is no information to report under this finance from San Diego State University, and Item. an M.B.A. with a concentration in analytical finance and economics from The University ITEM 5. ADDITIONAL COMPENSATION of Chicago Booth School of Business. He is a Mr. Delaney receives no additional CFA charterholder. compensation. Please refer to the descriptions of the licenses ITEM 6. SUPERVISION and professional designations listed at the end of this document AllianzGI US, supervises and monitors the advice its portfolio managers provide to ITEM 3. DISCIPLINARY INFORMATION clients through regular reviews of client Mr. Yip has no reportable disciplinary history. trading and positions for adherence to client investment guidelines and AllianzGI US’s ITEM 4. OTHER BUSINESS ACTIVITIES internal policies and procedures. The name
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Jonathan Yip is employed by Allianz Global international finance from the University of Investors GmbH, UK Branch, an advisory Commerce and International Finance, affiliate of AllianzGI US. In rendering Poland, and an M.A. from London investment advisory services with respect to Metropolitan University. She holds the strategies to its clients, including U.S. Financial Conduct Authority CF 30 license registered investment companies, AllianzGI and the IMC designation. US uses the resources of Mr. Yip to provide portfolio management services to AllianzGI Please refer to the descriptions of the licenses US clients. In providing such services, Mr. Yip and professional designations listed at the is considered an "associated person" of end of this document AllianzGI US as that term is defined in the Investment Advisers Act of 1940, as amended ITEM 3. DISCIPLINARY INFORMATION ("Advisers Act"). Ms. Borek has no reportable disciplinary ITEM 5. ADDITIONAL COMPENSATION history.
Mr. Yip receives no additional compensation. ITEM 4. OTHER BUSINESS ACTIVITIES
ITEM 6. SUPERVISION Katarzyna Borek is employed by Allianz AllianzGI US supervises and monitors the Global Investors GmbH, UK Branch, an advice its portfolio managers provide to advisory affiliate of AllianzGI US. In rendering clients through regular reviews of client investment advisory services with respect to trading and positions for adherence to client strategies to its clients, including U.S. investment guidelines and AllianzGI US’s registered investment companies, AllianzGI internal policies and procedures. The name US uses the resources of Ms. Borek to provide and contact information for the person portfolio management services to AllianzGI primarily responsible for supervising Mr. US clients. In providing such services, Ms. Yip’s investment advisory activities is Malie Borek is considered an "associated person" of Conway, CIO Global Fixed Income, +44 20 AllianzGI US as that term is defined in the 3246 7163. Investment Advisers Act of 1940, as amended ("Advisers Act").
ITEM 5. ADDITIONAL COMPENSATION
Katarzyna Borek Ms. Borek receives no additional Allianz Global Investors GmbH, UK Branch, compensation. 199 Bishopsgate, London, EC2M 3TY, United Kingdom, +44 20 3246 7745 ITEM 6. SUPERVISION ITEM 2. EDUCATION BACKGROUND AND Allianz Global Investors supervises and BUSINESS EXPERIENCE monitors the advice its portfolio managers Katarzyna Borek (1981) provide to clients through regular reviews of Portfolio Manager client trading and positions for adherence to Ms. Borek is a portfolio manager with Allianz client investment guidelines and Allianz Global Investors; she joined the firm in 2016 Global Investor’s internal policies and following the acquisition and integration of procedures. The name and contact Rogge Global Partners, which she joined in information for the person primarily 2008. Ms. Borek is a portfolio manager for responsible for supervising Ms. Borek’s emerging market currencies, as well as local investment advisory activities is Greg Saichin, and external debt strategies. She has 10 years Managing Director, CIO Global Emerging of investment-industry experience. While at Markets Fixed Income, +44 (0) 20 7859 9000. Rogge Global Partners, Ms. Borek was an emerging-markets portfolio manager, a portfolio strategist and a trader. Earlier in her career, she was a member of the e-commerce team at Citigroup. Ms. Borek has a B.A. in
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registered investment companies, AllianzGI
Detlev Schlichter US uses the resources of Mr. Schlichter to Allianz Global Investors GmbH, UK Branch, provide portfolio management services to 199 Bishopsgate, London, EC2M 3TY, United AllianzGI US clients. In providing such Kingdom, +44 20 3246 7857 services, Mr. Schlichter is considered an "associated person" of AllianzGI US as that ITEM 2. EDUCATION BACKGROUND AND term is defined in the Investment Advisers BUSINESS EXPERIENCE Act of 1940, as amended ("Advisers Act").
Detlev Schlichter (1964) ITEM 5. ADDITIONAL COMPENSATION Director, Portfolio Manager Mr. Schlichter receives no additional Mr. Schlichter is a portfolio manager and a compensation. director with Allianz Global Investors; he joined the firm in 2016 following the ITEM 6. SUPERVISION acquisition and integration of Rogge Global AllianzGI US supervises and monitors the Partners, which he joined in 2014. Mr. advice its portfolio managers provide to Schlichter is a member of the Developed clients through regular reviews of client trading and positions for adherence to client Markets team and is responsible for investment guidelines and AllianzGI US’s managing global government bond and internal policies and procedures. The name global aggregate strategies, as well as and contact information for the person overseeing opportunistic bond strategies. He primarily responsible for supervising Mr. has 26 years of investment-industry Schlichter’s investment advisory activities is experience. Before joining Rogge Global Malie Conway, CIO Global Fixed Income, +44 Partners, Mr. Schlichter was Head of 20 3246 7163. International Investment Team and a portfolio manager at Western Asset Management Company, Head of European David Gillard Bond Team at Merrill Lynch Investment Allianz Global Investors GmbH, UK Branch, Managers, and a global portfolio manager 199 Bishopsgate, London, EC2M 3TY, United and trader at J.P. Morgan. He is also the Kingdom, +44 20 3246 7761 author of Paper Money Collapse: The Folly of Elastic Money, which won the getAbstract ITEM 2. EDUCATION BACKGROUND AND International Book Award in 2012. Mr. BUSINESS EXPERIENCE Schlichter has a master’s degree in economics from Ruhr-Universität Bochum, David Gillard (1971) Germany. He also holds the IMC designation. Managing Director, Head of Applied Analytics Mr. Gillard is a managing director and Head Please refer to the descriptions of the licenses of Applied Analytics with Allianz Global and professional designations listed at the Investors; he joined the firm in 2016 end of this document following the acquisition and integration of Rogge Global Partners, which he joined in ITEM 3. DISCIPLINARY INFORMATION 2001. Mr. Gillard oversees the Applied Mr. Schlichter has no reportable disciplinary Analytics team, part of the global fixed- history. income group, which is responsible for quantitative process analysis, including review of liability-drive investments, ITEM 4. OTHER BUSINESS ACTIVITIES portfolio-construction tools and Detlev Schlichter is employed by Allianz implementation methods. He has 23 years of Global Investors GmbH, UK Branch, an investment-industry experience. Before advisory affiliate of AllianzGI US. In rendering joining Rogge Global Partners, Mr. Gillard investment advisory services with respect to worked in the fixed-income strategy group at strategies to its clients, including U.S. Barclays Global Investors and the global
75 Allianz Global Investors U.S. LLC
markets risk management group at Dresdner Kleinwort Benson. He has a B.A. with honors US Private Placements in natural sciences from University of Cambridge, and an M.S. in computer science from University of London. Mr. Gillard holds Charles J. Dudley the Financial Conduct Authority CF 30 license 1633 Broadway, New York, NY 10019, (212) and the IMC designation. 739-3300
Please refer to the descriptions of the licenses ITEM 2. EDUCATION BACKGROUND AND and professional designations listed at the BUSINESS EXPERIENCE end of this document Charles J. Dudley (1959) ITEM 3. DISCIPLINARY INFORMATION Managing Director, Portfolio Manager For thirteen years, Mr. Dudley was the Mr. Gillard has no reportable disciplinary history. Portfolio Manager for the Below Investment Grade portion of the Fixed Income portfolios ITEM 4. OTHER BUSINESS ACTIVITIES for the North American Allianz insurance companies. He also served as co-head of the David Gillard is employed by Allianz Global Credit Team in Westport and covered the Investors GmbH, UK Branch, an advisory Telecommunication, Media, Technology, affiliate of AllianzGI US. In rendering investment advisory services with respect to Forest Product, Rail, and Transportations strategies to its clients, including U.S. sectors for the Team. Mr. Dudley joined registered investment companies, AllianzGI Allianz of America in 1998, after eight years US uses the resources of Mr. Gillard to provide managing high yield fixed income portfolios portfolio management services to AllianzGI for Fortis and SunAmerica. He began his fixed US clients. In providing such services, Mr. income career as a high yield bond analyst in Gillard is considered an "associated person" of 1988, after analyzing equity investments for AllianzGI US as that term is defined in the Value Line and Stockbridge Partners. He Investment Advisers Act of 1940, as amended received a BA from Yale University and a JD ("Advisers Act"). from Georgetown University. Mr. Dudley
reports directly to the Chief Investment ITEM 5. ADDITIONAL COMPENSATION Officer, AIM US. He has 19+ years with Mr. Gillard receives no additional Allianz, 30 years investment experience. compensation. ITEM 3. DISCIPLINARY INFORMATION ITEM 6. SUPERVISION There is no information to report under this AllianzGI US supervises and monitors the Item. advice its portfolio managers provide to clients through regular reviews of client ITEM 4. OTHER BUSINESS ACTIVITIES trading and positions for adherence to client investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures. The name Item. and contact information for the person primarily responsible for supervising Mr. ITEM 5. ADDITIONAL COMPENSATION Gillard’s investment advisory activities is Malie Conway, CIO Global Fixed Income, +44 There is no information to report under this 20 3246 7163. Item.
ITEM 6. SUPERVISION AllianzGI US supervises and monitors the advice its portfolio managers provide to
76 Allianz Global Investors U.S. LLC
clients through regular reviews of client ITEM 5. ADDITIONAL COMPENSATION trading and positions for adherence to client investment guidelines and AllianzGI US’s There is no information to report under this internal policies and procedures. The name Item. and contact information for the person primarily responsible for supervising Mr. ITEM 6. SUPERVISION Dudley’s investment advisory activities is Karl Happe, Managing Director, CIO, Insurance AllianzGI US supervises and monitors the Related Strategies, +49 89 1220 7109. advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client investment guidelines and AllianzGI US’s Lawrence Halliday internal policies and procedures. The name 1633 Broadway, New York, NY 10019, (212) and contact information for the person 739-3300 primarily responsible for supervising Mr.
Halliday’s investment advisory activities is ITEM 2. EDUCATION BACKGROUND AND Charles J. Dudley, Managing Director, (212) BUSINESS EXPERIENCE 739-3300. Lawrence Halliday (1966) Director, Credit Analyst, Managing Director, CFA Anders Amundson Mr. Halliday focuses primarily on the utility, energy, and infrastructure (power, energy, 1633 Broadway, New York, NY 10019, (212) transportation) sectors. He has 6+ years with 739-3300 Allianz, 21+ years investment experience and 8+ years financial sector experience. ITEM 2. EDUCATION BACKGROUND AND Previously, he worked for Tiber Asset BUSINESS EXPERIENCE Management and Atlantic Asset Management, managers of structured Anders Amundson (1976) portfolios and total return assets. He began Director, Credit Analyst, Director, CFA his investment career at MetLife in private Mr. Amundson is responsible for credit placements and project finance. His financial analysis of investments in consumer, sector work experience includes being an manufacturing, entertainment and audit team member for Price Waterhouse. He infrastructure (entertainment) sectors. He received a BA from Fordham University and has 6+ years with Allianz, 15+ years an MBA from the University of Rochester, investment experience. Previously, he was Simon Graduate School of Business, and is a with the Portfolio Management Group, Chartered Financial Analyst. Leveraged and Distressed Loans for the Lehman estate. Mr. Amundson also worked Please refer to the descriptions of the licenses for Scotia Capital as a high yield credit and professional designations listed at the analyst and State Street as a quantitative end of this document. analyst. He received a BS, Finance from Miami University (Ohio) and is a Chartered Financial Analyst. ITEM 3. DISCIPLINARY INFORMATION
There is no information to report under this Please refer to the descriptions of the licenses Item. and professional designations listed at the end of this document. ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this Item. There is no information to report under this Item.
77 Allianz Global Investors U.S. LLC
ITEM 4. OTHER BUSINESS ACTIVITIES ITEM 3. DISCIPLINARY INFORMATION There is no information to report under this There is no information to report under this Item. Item.
ITEM 5. ADDITIONAL COMPENSATION ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this There is no information to report under this Item. Item.
ITEM 6. SUPERVISION ITEM 5. ADDITIONAL COMPENSATION AllianzGI US supervises and monitors the There is no information to report under this advice its portfolio managers provide to Item. clients through regular reviews of client trading and positions for adherence to client ITEM 6. SUPERVISION investment guidelines and AllianzGI US’s AllianzGI US supervises and monitors the internal policies and procedures. The name advice its portfolio managers provide to and contact information for the person clients through regular reviews of client primarily responsible for supervising Mr. trading and positions for adherence to client Amundson’s investment advisory activities is investment guidelines and AllianzGI US’s Charles J. Dudley, Managing Director, (212) internal policies and procedures. The name 739-3300. and contact information for the person
primarily responsible for supervising Ms. Larson’s investment advisory activities is Kristine Larson Charles J. Dudley, Managing Director, (212) 1633 Broadway, New York, NY 10019, (212) 739-3300. 739-3300
ITEM 2. EDUCATION BACKGROUND AND Chris Schmidt BUSINESS EXPERIENCE 1633 Broadway, New York, NY 10019, (212) Kristine Larson (1958) 739-3300 Director, Credit Analyst, Director, CFA, CPA Ms. Larson is responsible for consumer, ITEM 2. EDUCATION BACKGROUND AND healthcare, manufacturing, REIT, finance and BUSINESS EXPERIENCE infrastructure sectors (seaports and Chris Schmidt (1978) airports). She has 4 years with Allianz, 25+ Credit Analyst, Director years investment experience. Previously she Mr. Schmidt covers the utility, energy, and worked at Genworth Financial, TIAA-CREF, infrastructure (power) sectors. He joined KPMG Consulting and Bank of America. Allianz 4/2016, 11 years investment Kristine received an MBA from Haas School of experience and 6 years financial sector Business, University of California, Berkeley experience. Chris comes to Allianz from and is both a Chartered Financial Analyst and Barclays Capital, where he was a Director in a Certified Public Accountant. Investment Banking – Debt Capital Markets,
Lehman Brothers, and PS&G Energy Holdings. Please refer to the descriptions of the licenses and professional designations listed at the He holds an MBA from Fordham University end of this document. and a BS, Finance from the University of Delaware.
78 Allianz Global Investors U.S. LLC
ITEM 3. DISCIPLINARY INFORMATION assets. Mr. Schierhold has a Masters degree There is no information to report under this in Law and Business (LLM/MLB) from Item. Bucerius Law School & WHU/Otto Beisheim School of Management and a BA, Political ITEM 4. OTHER BUSINESS ACTIVITIES Science from Colgate University. He is fluent in German. Registered representative of affiliated broker- dealer, Allianz Global Investors Distributors ITEM 3. DISCIPLINARY INFORMATION LLC. There is no information to report under this ITEM 5. ADDITIONAL COMPENSATION Item.
There is no information to report under this ITEM 4. OTHER BUSINESS ACTIVITIES Item. There is no information to report under this ITEM 6. SUPERVISION Item. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 5. ADDITIONAL COMPENSATION clients through regular reviews of client There is no information to report under this trading and positions for adherence to client Item. investment guidelines and AllianzGI US’s internal policies and procedures. The name ITEM 6. SUPERVISION and contact information for the person primarily responsible for supervising Mr. AllianzGI US supervises and monitors the Schmidt’s investment advisory activities is advice its portfolio managers provide to Charles J. Dudley, Managing Director, (212) clients through regular reviews of client 739-3300. trading and positions for adherence to client investment guidelines and AllianzGI US’s internal policies and procedures. The name Michael Schierhold and contact information for the person primarily responsible for supervising Mr. 1633 Broadway, New York, NY 10019, (212) Schierhold’s investment advisory activities is 739-3300 Charles J. Dudley, Managing Director, (212) 739-3300. ITEM 2. EDUCATION BACKGROUND AND BUSINESS EXPERIENCE Michael Schierhold (1982) Credit Analyst, Assistant Director US Private Credit Mr. Schierhold is responsible for credit Solutions analysis of investments in consumer, manufacturing, entertainment, transportation, technology, and Dean Criares infrastructure sectors. He transferred to AIM 1633 Broadway, New York, NY 10019, (212) US from AIM Munich, where he was a Senior 739-3300 Expert responsible for manager selection and special projects, after working for Allianz SE. ITEM 2. EDUCATION BACKGROUND AND He has 10 years with Allianz, and 13 years BUSINESS EXPERIENCE investment experience. He began his career Dean Criares (1963) with Icon Capital, focusing on the initiation Managing Director, Head of US Private Credit and underwriting of loans and leases to Solutions finance heavy equipment and infrastructure
79 Allianz Global Investors U.S. LLC
Mr. Criares is a managing director and Head Jamie Walker of US Private Credit Solutions with Allianz 1633 Broadway, New York, NY 10019, (212) Global Investors; he joined the firm following 739-4506 the acquisition and integration of Sound
Harbor Partners, which he joined in 2012. Mr. ITEM 2. EDUCATION BACKGROUND AND Criares is responsible for strategic planning BUSINESS EXPERIENCE for the US Private Credit Solutions team; he also oversees the team’s investment process, Jamie Walker (1978) which covers opportunities in the leveraged Director, Portfolio Manager loans, distressed debt, structured investment Ms. Walker is a portfolio manager and a vehicles, mezzanine debt and related equity director with Allianz Global Investors; she co-investments areas. Mr. Criares has 33 joined the firm following the acquisition and years of investment-industry experience. He integration of Sound Harbor Partners, which was an owner and partner at Sound Harbor she joined in 2014. As a member of the US Partners. Before that, he was a senior Private Credit Solutions team, Ms. Walker is managing director and partner at The responsible for risk and portfolio Blackstone Group; he was also a managing management. She has 16 years of director at CIBC World Markets. Earlier in his investment-industry experience. While career, Mr. Criares worked at European working at Sound Harbor Partners, Ms. American Bank. He has a B.A. in political Walker was a principal. Before that, she was a science and economics from Drew University, senior credit analyst at Genworth Financial; and an M.B.A. from Columbia Business she also worked at Citadel Investment Group, School. The Carlyle Group and Lehman Brothers. Ms. Walker has a B.A. in leadership studies and ITEM 3. DISCIPLINARY INFORMATION finance, magna cum laude, from the University of Richmond. There is no information to report under this
Item. ITEM 3. DISCIPLINARY INFORMATION
ITEM 4. OTHER BUSINESS ACTIVITIES There is no information to report under this Item. There is no information to report under this
Item. ITEM 4. OTHER BUSINESS ACTIVITIES
ITEM 5. ADDITIONAL COMPENSATION There is no information to report under this Item. There is no information to report under this
Item. ITEM 5. ADDITIONAL COMPENSATION
ITEM 6. SUPERVISION There is no information to report under this Item. AllianzGI US supervises and monitors the advice its portfolio managers provide to clients through regular reviews of client ITEM 6. SUPERVISION trading and positions for adherence to client AllianzGI US supervises and monitors the investment guidelines and AllianzGI US’s advice its portfolio managers provide to internal policies and procedures. The name clients through regular reviews of client and contact information for the person trading and positions for adherence to client primarily responsible for supervising Mr. investment guidelines and AllianzGI US’s Criares’s investment advisory activities is internal policies and procedures. The name Deborah Zurkow, Managing Director, Head of and contact information for the person Alternatives, +442032467596. primarily responsible for supervising Ms.
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Walker’s investment advisory activities is ITEM 6. SUPERVISION Dean Criares, Managing Director, Head of US Private Credit Solutions, (212) 739-4502.. AllianzGI US supervises and monitors the advice its portfolio managers provide to clients through regular reviews of client trading and positions for adherence to client Michael Zupon investment guidelines and AllianzGI US’s 1633 Broadway, New York, NY 10019, (212) internal policies and procedures. The name 739-3300 and contact information for the person primarily responsible for supervising Mr. ITEM 2. EDUCATION BACKGROUND AND Zupon’s investment advisory activities is Deborah Zurkow, Managing Director, Head of BUSINESS EXPERIENCE Alternatives, +44 20 3246 7596. Michael Zupon (1960) Managing Director, CIO US Private Credit Solutions William Lutkins Mr. Zupon is a managing director and CIO US 1633 Broadway, New York, NY 10019, (212) Private Credit Solutions with Allianz Global 739-3300 Investors; he joined the firm following the acquisition and integration of Sound Harbor ITEM 2. EDUCATION BACKGROUND AND Partners, which he founded in 2009. Mr. BUSINESS EXPERIENCE Zupon is responsible for US private credit investments including leveraged loans, William Lutkins (1964) distressed debt, mezzanine debt and related Director, Senior Portfolio Manager Mr. Lutkins is a senior portfolio manager and equity co-investments. He has more than 25 years of investment-industry experience. a director with Allianz Global Investors; he While working at Sound Harbor Partners, Mr. joined the firm following the acquisition and Zupon was a partner and chief investment integration of Sound Harbor Partners, which officer. Before that, he was a managing he joined in 2012. As a member of the US director and partner at The Carlyle Group; he Private Credit Solutions team, Mr. Lutkins is also worked at Merrill Lynch, Bank of America responsible for managing loan portfolios, and CIBC. He has a B.S. in business from particularly collateralized loan obligations, Miami University, Ohio. and separately managed accounts. He has 24 years of investment-industry experience. ITEM 3. DISCIPLINARY INFORMATION While at Sound Harbor Partners, Mr. Lutkins There is no information to report under this was a managing director and senior portfolio Item. manager. Before that, he was a senior portfolio manager at Aladdin Capital ITEM 4. OTHER BUSINESS ACTIVITIES Management; he also worked at Octagon Credit Investors, Credit Suisse and Swiss Bank There is no information to report under this Corp. Mr. Lutkins has a B.A. in government Item. from St. Lawrence University and an M.B.A. in
finance from Owen Graduate School of ITEM 5. ADDITIONAL COMPENSATION Management, Vanderbilt University. There is no information to report under this Item. ITEM 3. DISCIPLINARY INFORMATION
There is no information to report under this
Item.
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ITEM 4. OTHER BUSINESS ACTIVITIES years of investment-industry experience. While working at Sound Harbor Partners, Mr. There is no information to report under this Bancroft was a managing director and Item. portfolio manager. Before that, he was a
ITEM 5. ADDITIONAL COMPENSATION portfolio manager at Aladdin Capital Management; he also worked at LCM Capital There is no information to report under this Management and Greenwich Item. Capital/NatWest. Mr. Bancroft has a B.A. in economics and an M.B.A. from Lehigh ITEM 6. SUPERVISION University. AllianzGI US supervises and monitors the advice its portfolio managers provide to ITEM 3. DISCIPLINARY INFORMATION clients through regular reviews of client trading and positions for adherence to client There is no information to report under this investment guidelines and AllianzGI US’s Item. internal policies and procedures. The name and contact information for the person ITEM 4. OTHER BUSINESS ACTIVITIES primarily responsible for supervising Mr. There is no information to report under this Lutkins’s investment advisory activities is Dean Criares, Managing Director, Head of US Item. Private Credit Solutions, (212) 739-4502. ITEM 5. ADDITIONAL COMPENSATION
There is no information to report under this Thomas (Ned) Bancroft Item. 1633 Broadway, New York, NY 10019, (212) 739-3300 ITEM 6. SUPERVISION ITEM 2. EDUCATION BACKGROUND AND AllianzGI US supervises and monitors the BUSINESS EXPERIENCE advice its portfolio managers provide to Thomas (Ned) Bancroft (1962) clients through regular reviews of client Director, Portfolio Manager trading and positions for adherence to client Mr. Bancroft is a portfolio manager and a investment guidelines and AllianzGI US’s internal policies and procedures. The name director with Allianz Global Investors; he and contact information for the person joined the firm following the acquisition and primarily responsible for supervising Mr. integration of Sound Harbor Partners, which Bancroft’s investment advisory activities is he joined in 2012. As a member of the US Dean Criares, Managing Director, Head of US Private Credit Solutions team, Mr. Bancroft is Private Credit Solutions, (212) 739-4502. responsible for credit research. He has 25
82 Allianz Global Investors U.S. LLC
Description of Licenses and Professional Designations
CHARTERED FINANCIAL ANALYST (CFA) The CFA designation is a professional certification offered by the CFA Institute to financial analysts who pass each of three six-hour exams, possess a bachelor's degree or equivalent, and have 48 months of qualified professional work experience. The CFA Institute determines the passing score of the exams each year.
CHARTERED ALTERNATIVE INVESTMENT ANALYST (CAIA) The CAIA is a professional designation offered by the CAIA Association to investment professionals who complete two examinations in succession. The CAIA curriculum is designed to provide finance professionals with a broad base of knowledge in alternative investments with a focus on hedge funds, managed futures, and private equity.
CHARTERED INSTITUTE OF BANKERS Membership of the Institute is aimed at helping individuals working within the banking and financial services achieve, sustain and demonstrate the highest standards of customer-focused, ethical professionalism. Ongoing membership of the Institute, and participation in the Institute's CPD programme can help individuals meet the initial and annual re-accreditation requirements of the new Senior Manager and Certification regimes, and support banks in their implementation of the new Individual Conduct Rules.
CERTIFIED INTERNATIONAL INVESTMENT ANALYST (CIIA) The CIIA is a global finance designation offered by the Association of Certified International Investment Analysts (ACIIA) to financial professionals; candidates may be financial analysts, portfolio managers or investment advisors.
CHARTERED MEMBER OF THE SECURITIES ANALYSTS ASSOCIATION OF JAPAN (CMA) The CMA designation is offered by the CMA Association of Japan and is a professional educational program in the securities and investment field in Japan. The CMA program is divided into two parts, Level I and Level II, both consisting of correspondence courses and examinations. Level I covers basic principles and tools needed in securities analysis and portfolio management, while Level II focuses on the integrated and practical application of such knowledge. Those who pass Level I and Level II sequentially, have three or more years of experience in financial and investment analysis and/or portfolio management, and meet other professional standards are awarded the CMA designation.
CERTIFICATE IN INVESTMENT PERFORMANCE MEASUREMENT (CIPM) The CIPM program is a specialist study and exam program for investment performance professionals. The candidate body of knowledge includes professional ethics; performance measurement, attribution, and appraisal; and the Global Investment Performance Standards (GIPS). CIPM candidates’ mastery of the pertinent body of knowledge is tested in two three-hour exams.
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FINANCIAL RISK MANAGER (FRM) The FRM certificate is issued by the Global Association for Risk Professional (GARP) and has been adopted by companies as a benchmark to ensure their risk management employees are well versed in the latest financial risk concepts. The certificate identifies risk professionals that are qualified to provide competent advice based on globally accepted industry standards and who are committed to personal professional development and ensures that they possess the body of knowledge necessary for independent risk management analysis and decision making.
FINANCIAL CONDUCT AUTHORITY CF 30 LICENSE Customer Function (CF 30) is the customer-dealing function that regulates how advisory services are provided by financial firms to their customers. The functions include: advising on investments, give advice to clients, dealing as principal or as agent, acting in the capacity of an investment manager and in relation to bidding in emissions auctions, acting as a ‘bidder’s representative’.
INVESTMENT MANAGEMENT CERTIFICATE (IMC)
Administered by CFA UK, the IMC is designed for anyone seeking FCA ‘Approved Person’ status in the following roles: Managing investments, Advising clients in investments and/or derivatives, Dealing for clients in investments and/or derivatives, Advising on investments in the course of corporate finance business, Managing investments in relation to venture capital investments, the activity of a broker fund adviser.
LICENSE OF SENIOR SECURITIES SPECIALIST The Securities & Futures Institute (SFI) Testing Center offers qualification exams for professionals in securities and futures markets and assists the regulatory authorities and relevant trade associations in administering market professionals and maintaining their quality. The SFI conducts qualification exams for market professionals in a fair and prudent manner with the efforts to enhance the self- regulation and professional image of the overall market. The SFI also consistently endeavors with the spirit of service and innovation to improve the testing system and roll out exam framework and contents that keep abreast with current market.
CHARTERED ACCOUNTANT (ACA) The chartered accountant ACA qualification is an advanced learning and professional development program offered by the ICAEW (The Institute of Chartered Accountants in England and Wales). Its integrated components provide an in-depth understanding across accountancy, finance and business. Combined, they help build the technical knowledge, professional skills and practical experience needed to become an ICAEW Chartered Accountant.
ASSOCIATES OF THE CFA SOCIETY OF THE UK (ASIP) The ASIP is a professional designation offered by the CFA Society of the UK for those investment professionals that have completed its associate examinations that contains six parts: Economics & Applied Statistical Analysis, Securities & Investments, Interpretation of Accounts & Corporate Finance, Investment Regulation & Practice, Portfolio Management and Case Study.
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Allianz Global Investors U.S. LLC (the “Adviser”) Rule 408(b)(2) Disclosure for Investment Advisory Services
As you may know, regulations under section 408(b)(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), require service providers to certain employee benefit plans subject to ERISA to disclose certain information (referred to as “408(b)(2) Information”), including information about direct and indirect compensation the service providers reasonably expect to receive in connection with their services to plans.
Allianz Global Investors U.S. LLC (the “Adviser”) provides investment advisory services to your investment manager (“Investment Manager”) in connection with your account with the Investment Manager (the “Account”). The disclosure in this letter is intended to provide information of the kind required by the disclosure requirements of the 408(b)(2) Regulation, even though the Adviser is not a covered service provider with respect to the Account under that regulation because the Adviser does not have a contractual relationship with the Account. This disclosure does not cover any other contracts or arrangements with our affiliates, subcontractors or third parties. If you have contracted directly with any of those entities as a “covered service provider” under the 408(b)(2) Regulation, they will provide you with applicable disclosures that relate to those contracts.
Services The Adviser provides investment advisory services with respect to the Account as described generally in our agreement with the Investment Manager (including any amendments, supplemental agreements or side letters to such agreement).
Status In providing the services described above, the Adviser acts as a fiduciary under ERISA, but only with respect to discretionary advisory services it provides to the Account. Where the Adviser provides model portfolios to the Investment Manager, the model portfolios are analyzed and executed on by the Investment Manager or another manager which generally acts as a fiduciary under ERISA with respect to the Account. The Adviser is also a registered investment adviser under the Investment Advisers Act of 1940, as amended, and its services are also governed by that law.
Direct Compensation
The Adviser does not receive direct compensation in connection with services it provides with respect to the Account. Rather, the Investment Manager pays a fee to the Adviser for those services.
Indirect Compensation
The Investment Manager pays a fee to the Adviser for the services provided with respect to the Account as set forth in our agreement with the Investment Manager.
The Adviser may receive research services (soft dollar research) in accordance with Section 28(e) of the Securities Exchange Act of 1934, as amended. Brokers may provide the Adviser with research services in connection with the Adviser’s trading for many of its accounts in certain securities and strategies and the value of the services cannot reasonably be allocated to any particular account.
These types of research services generally do not have a readily identifiable monetary value and the eligibility conditions for these research services (other than using the broker’s services) are not shared with Adviser. Therefore, to the extent that any broker provides research services, the Adviser is unable to place a value on those services, particularly on a prospective basis. For more information, please see Item 12 of the Adviser’s Form ADV, Part 2A.
From time to time, employees of the Adviser may receive gifts (other than cash or cash equivalents), entertainment or meals from third parties, or attend educational conferences hosted by third parties. Any such gifts, entertainment, or conferences that the employees of the Adviser may receive or attend occur in the context of a general business relationship. There is no agreement or arrangement between Adviser and any third party regarding the provision of gifts, entertainment, meals and conferences to Adviser’s employees that is based on Adviser’s service contract or arrangement with any particular plan, and no gifts, entertainment, meals, or gratuities are received by the Adviser’s employees by reason of their
services to any particular plan. Employees of the Adviser are subject to firm-wide policies on gifts and entertainment that include terms consistent with regulatory requirements, including ERISA where applicable. The Adviser has determined that, under any reasonable method of allocation, any gifts and entertainment attributable to the Account are of insubstantial value and, therefore, the Adviser does not reasonably anticipate receiving reportable non-monetary compensation for purposes of the 408(b)(2) Regulation.
Compensation Paid Among Related Parties To the extent that Adviser receives other services from its affiliates or subcontractors, it may share its fees with those affiliates and subcontractors. However, shared amounts relating to those other services, if any, are not subject to disclosure because they are not paid on a transaction basis and are not reflected in the net value of the Account.
Compensation for Termination of Contract The Adviser does not impose a fee in the event of termination. Our agreement with the Investment Manager provides that, in the event of termination or withdrawal of assets from the Account, the Adviser shall refund a pro rata portion of fees received from the Investment Manager attributable to the amount withdrawn from the Account.
Investment Disclosure If the Account invests in an unregistered investment fund or trust managed or maintained by the Adviser or an affiliate, you or the Investment Manager will receive separate 408(b)(2) Information with respect to that investment.
Confidentiality; Questions; Additional Information This 408(b)(2) Information is being provided to you on a confidential basis. The provision of this information is not intended to affect the availability of any other statutory or regulatory exemption under ERISA. This disclosure is not a part of our agreement with the Investment Manager; that agreement controls in the event of any dispute or discrepancy. This information is not for public distribution and is not intended
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as an offer or solicitation with respect to the purchase or sale of any of the products or services described or referred to herein.
If you have questions about this disclosure, please call your Relationship Manager or email us at [email protected] . Please use “408b2” in the subject line to make sure that your questions are addressed promptly. Thank you for your continued confidence in us.
Allianz Global Investors U.S. LLC
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