NPORT-EX 1 NPORT_2898642608988400.htm

 

Schedule of Investments

AllianzGI NFJ Dividend, Interest & Premium Strategy Fund

April 30, 2019 (unaudited)

 

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Value*

 

COMMON STOCK - 69.1%

 

 

 

Aerospace & Defense - 2.2%

 

 

 

57,257

 

Lockheed Martin Corp.

 

$19,085,476

 

74,020

 

United Technologies Corp.

 

10,555,992

 

 

 

 

 

29,641,468

 

Automobiles - 1.3%

 

 

 

430,860

 

General Motors Co.

 

16,781,997

 

 

 

 

 

Banks - 10.2%

 

 

 

629,630

 

Bank of America Corp.

 

19,254,085

 

276,560

 

Citigroup, Inc.

 

19,552,792

 

541,100

 

Citizens Financial Group, Inc.

 

19,587,820

 

251,270

 

Comerica, Inc.

 

19,747,309

 

332,930

 

JPMorgan Chase & Co. (g) 

 

38,636,527

 

375,230

 

U.S. Bancorp (g) 

 

20,007,264

 

 

 

 

 

136,785,797

 

Biotechnology - 1.2%

 

 

 

89,003

 

Amgen, Inc.

 

15,960,018

 

 

 

 

 

Capital Markets - 1.4%

 

 

 

398,130

 

Morgan Stanley (g) 

 

19,209,772

 

 

 

 

 

Chemicals - 1.4%

 

 

 

89,100

 

Celanese Corp.

 

9,612,999

 

154,783

 

DOW, Inc. (i) 

 

8,780,840

 

 

 

 

 

18,393,839

 

Commercial Services & Supplies - 0.1%

 

 

 

22,304

 

Stericycle, Inc. (i) 

 

1,302,331

 

 

 

 

 

Communications Equipment - 1.3%

 

 

 

321,180

 

Cisco Systems, Inc.

 

17,970,021

 

 

 

 

 

Containers & Packaging - 0.7%

 

 

 

197,140

 

International Paper Co.

 

9,228,123

 

 

 

 

 

Diversified Telecommunication Services - 2.6%

 

 

 

577,491

 

AT&T, Inc. (g) 

 

17,879,121

 

146,729

 

Frontier Communications Corp. (i) 

 

418,178

 

300,230

 

Verizon Communications, Inc.

 

17,170,154

 

 

 

 

 

35,467,453

 

Electric Utilities - 1.3%

 

 

 

351,777

 

Exelon Corp.

 

17,923,038

 

 

 

 

 

Electrical Equipment - 1.4%

 

 

 

224,920

 

Eaton Corp. PLC

 

18,627,874

 

 

 

 

 

Entertainment - 1.4%

 

 

 

137,186

 

Walt Disney Co.

 

18,790,366

 

 

 

 

 

Equity Real Estate Investment Trusts (REITs) - 1.3%

 

 

 

940,532

 

Host Hotels & Resorts, Inc.

 

18,095,836

 

 

 

 

 

Food & Staples Retailing - 1.3%

 

 

 

174,280

 

Walmart, Inc. (g) 

 

17,922,955

 

 

 

 

 

Food Products - 2.4%

 

 

 

471,824

 

Conagra Brands, Inc.

 

14,522,743

 

336,440

 

Mondelez International, Inc., Class A

 

17,107,974

 

 

 

 

 

31,630,717

 

Healthcare Equipment & Supplies - 1.2%

 

 

 

175,460

 

Medtronic PLC

 

15,582,603

 

 

 

 

 

Healthcare Providers & Services - 1.3%

 

 

 

186,430

 

Quest Diagnostics, Inc. (g) 

 

17,968,123

 

 

 

 

 

Industrial Conglomerates - 2.1%

 

 

 

913,300

 

General Electric Co.

 

9,288,261

 

 

 

109,300

 

Honeywell International, Inc. (g) 

 

18,977,759

 

 

 

 

 

28,266,020

 

Insurance - 4.2%

 

 

 

196,790

 

Allstate Corp.

 

19,494,017

 

393,950

 

MetLife, Inc. (g) 

 

18,172,914

 

122,900

 

Reinsurance Group of America, Inc.

 

18,620,579

 

 

 

 

 

56,287,510

 

Media - 1.4%

 

 

 

437,093

 

Comcast Corp., Class A

 

19,026,658

 

 

 

 

 

Multi-Line Retail - 1.3%

 

 

 

226,428

 

Target Corp.

 

17,530,056

 

 

 

 

 

Multi-Utilities - 1.3%

 

 

 

294,580

 

Public Service Enterprise Group, Inc. (g) 

 

17,571,697

 

 

 

 

 

Oil, Gas & Consumable Fuels - 8.4%

 

 

 

156,620

 

ConocoPhillips

 

9,885,854

 

143,980

 

Magellan Midstream Partners L.P. (g) 

 

8,928,200

 

252,439

 

Occidental Petroleum Corp.

 

14,863,608

 

433,694

 

Royal Dutch Shell PLC, Class A, ADR (g) 

 

27,552,580

 

193,488

 

Southwestern Energy Co. (i) 

 

764,278

 

304,030

 

Total S.A., ADR

 

16,925,350

 

398,530

 

TransCanada Corp.

 

19,033,793

 

160,580

 

Valero Energy Corp.

 

14,558,183

 

 

 

 

 

112,511,846

 

Pharmaceuticals - 6.2%

 

 

 

20,721

 

Allergan PLC

 

3,045,987

 

201,698

 

Johnson & Johnson

 

28,479,758

 

218,710

 

Merck & Co., Inc.

 

17,214,664

 

401,544

 

Pfizer, Inc. (g) 

 

16,306,702

 

515,350

 

Roche Holding AG

 

17,037,471

 

118,438

 

Teva Pharmaceutical Industries Ltd., ADR (i) 

 

1,802,626

 

 

 

 

 

83,887,208

 

Road & Rail - 1.4%

 

 

 

152,690

 

Kansas City Southern

 

18,802,247

 

 

 

 

 

Semiconductors & Semiconductor Equipment - 3.4%

 

 

 

61,400

 

Broadcom, Inc.

 

19,549,760

 

334,420

 

Intel Corp. (g) 

 

17,068,797

 

75,500

 

KLA-Tencor Corp.

 

9,624,740

 

 

 

 

 

46,243,297

 

Software - 1.4%

 

 

 

341,850

 

Oracle Corp.

 

18,914,560

 

 

 

 

 

Specialty Retail - 0.7%

 

 

 

153,931

 

Foot Locker, Inc.

 

8,806,392

 

 

 

 

 

Technology Hardware, Storage & Peripherals - 1.3%

 

 

 

83,730

 

Apple, Inc. (g) 

 

16,802,099

 

 

 

 

 

Tobacco - 2.0%

 

 

 

178,150

 

Altria Group, Inc.

 

9,678,889

 

204,400

 

Philip Morris International, Inc.

 

17,692,864

 

 

 

 

 

27,371,753

 

 

 

 

 

Total Common Stock (cost-$890,603,383)

 

929,303,674

 

 

Principal
Amount
(000s)

 

 

 

 

 

CONVERTIBLE BONDS & NOTES - 23.6%

 

 

 

Auto Manufacturers - 0.2%

 

 

 

$2,485

 

Tesla, Inc., 2.375%, 3/15/22

 

2,557,512

 

 

 

 

 

Biotechnology - 2.1%

 

 

 

 

 

BioMarin Pharmaceutical, Inc.,

 

 

 

4,630

 

0.599%, 8/1/24

 

4,771,322

 

 

 

1,610

 

1.50%, 10/15/20

 

1,809,238

 

3,400

 

Exact Sciences Corp., 0.375%, 3/15/27

 

3,835,875

 

 

 

Illumina, Inc.,

 

 

 

2,250

 

zero coupon, 8/15/23 (a)(b)

 

2,436,526

 

2,420

 

0.50%, 6/15/21

 

3,321,450

 

1,970

 

Insmed, Inc., 1.75%, 1/15/25

 

2,057,419

 

2,665

 

Intercept Pharmaceuticals, Inc., 3.25%, 7/1/23

 

2,493,684

 

295

 

Ionis Pharmaceuticals, Inc., 1.00%, 11/15/21

 

379,968

 

3,975

 

Ligand Pharmaceuticals, Inc., 0.75%, 5/15/23 (a)(b) 

 

3,464,540

 

2,650

 

Medicines Co., 2.75%, 7/15/23

 

2,436,936

 

965

 

PTC Therapeutics, Inc., 3.00%, 8/15/22

 

1,012,069

 

 

 

 

 

28,019,027

 

Building Materials - 0.0%

 

 

 

290

 

Patrick Industries, Inc., 1.00%, 2/1/23

 

266,655

 

 

 

 

 

Commercial Services - 0.7%

 

 

 

2,960

 

Chegg, Inc., 0.125%, 3/15/25 (a)(b) 

 

2,845,300

 

1,860

 

Euronet Worldwide, Inc., 0.75%, 3/15/49 (a)(b) 

 

2,080,598

 

3,695

 

Square, Inc., 0.50%, 5/15/23 (a)(b) 

 

4,420,955

 

 

 

 

 

9,346,853

 

Computers - 0.9%

 

 

 

3,015

 

Lumentum Holdings, Inc., 0.25%, 3/15/24

 

3,759,913

 

1,995

 

Nutanix, Inc., zero coupon, 1/15/23

 

2,282,182

 

2,750

 

Pure Storage, Inc., 0.125%, 4/15/23

 

3,049,587

 

3,875

 

Western Digital Corp., 1.50%, 2/1/24 (a)(b) 

 

3,466,656

 

 

 

 

 

12,558,338

 

Diversified Financial Services - 0.9%

 

 

 

5,000

 

Encore Capital Group, Inc., 2.875%, 3/15/21

 

4,710,332

 

1,090

 

LendingTree, Inc., 0.625%, 6/1/22

 

2,094,162

 

4,990

 

PRA Group, Inc., 3.00%, 8/1/20

 

4,791,185

 

 

 

 

 

11,595,679

 

Electric Utilities - 0.2%

 

 

 

2,270

 

NRG Energy, Inc., 2.75%, 6/1/48 (a)(b) 

 

2,560,477

 

 

 

 

 

Electronic Equipment, Instruments & Components - 0.1%

 

 

 

2,195

 

SunPower Corp., 4.00%, 1/15/23

 

1,827,338

 

 

 

 

 

Electronics - 0.4%

 

 

 

1,745

 

Fortive Corp., 0.875%, 2/15/22 (a)(b) 

 

1,845,381

 

2,530

 

OSI Systems, Inc., 1.25%, 9/1/22

 

2,633,357

 

1,590

 

Vishay Intertechnology, Inc., 2.25%, 6/15/25 (a)(b) 

 

1,530,290

 

 

 

 

 

6,009,028

 

Energy-Alternate Sources - 0.2%

 

 

 

 

 

SunEdison, Inc. (a)(b)(c),

 

 

 

2,915

 

2.625%, 6/1/23

 

65,587

 

3,820

 

3.375%, 6/1/25

 

85,950

 

2,205

 

Tesla Energy Operations, Inc., 1.625%, 11/1/19

 

2,144,985

 

 

 

 

 

2,296,522

 

Engineering & Construction - 0.4%

 

 

 

2,790

 

Dycom Industries, Inc., 0.75%, 9/15/21

 

2,646,603

 

2,570

 

Tutor Perini Corp., 2.875%, 6/15/21

 

2,538,264

 

 

 

 

 

5,184,867

 

Entertainment - 0.4%

 

 

 

2,425

 

Live Nation Entertainment, Inc., 2.50%, 3/15/23

 

2,856,796

 

1,900

 

Marriott Vacations Worldwide Corp., 1.50%, 9/15/22

 

1,869,339

 

 

 

 

 

4,726,135

 

Equity Real Estate Investment Trusts (REITs) - 0.8%

 

 

 

2,000

 

Apollo Commercial Real Estate Finance, Inc., 5.375%, 10/15/23

 

1,994,435

 

3,600

 

IH Merger Sub LLC, 3.50%, 1/15/22

 

4,184,856

 

4,000

 

Two Harbors Investment Corp., 6.25%, 1/15/22

 

4,065,000

 

 

 

 

 

10,244,291

 

Healthcare-Products - 1.0%

 

 

 

1,315

 

CONMED Corp., 2.625%, 2/1/24 (a)(b) 

 

1,441,945

 

2,240

 

Insulet Corp., 1.375%, 11/15/24 (a)(b) 

 

2,557,948

 

2,835

 

NuVasive, Inc., 2.25%, 3/15/21

 

3,263,873

 

 

 

5,122

 

Wright Medical Group, Inc., 1.625%, 6/15/23 (a)(b) 

 

5,582,468

 

 

 

 

 

12,846,234

 

Healthcare-Services - 0.1%

 

 

 

1,440

 

Teladoc Health, Inc., 1.375%, 5/15/25 (a)(b) 

 

1,906,593

 

 

 

 

 

Insurance - 0.2%

 

 

 

1,865

 

AXA S.A., 7.25%, 5/15/21 (a)(b) 

 

2,034,855

 

 

 

 

 

Internet - 2.7%

 

 

 

 

 

Booking Holdings, Inc.,

 

 

 

2,370

 

0.35%, 6/15/20

 

3,393,936

 

1,800

 

0.90%, 9/15/21

 

2,055,203

 

505

 

Etsy, Inc., zero coupon, 3/1/23

 

985,066

 

 

 

FireEye, Inc.,

 

 

 

1,805

 

0.875%, 6/1/24 (a)(b)

 

1,818,282

 

2,150

 

1.625%, 6/1/35, Ser. B

 

2,015,625

 

1,685

 

IAC FinanceCo., Inc., 0.875%, 10/1/22 (a)(b) 

 

2,621,228

 

2,620

 

Liberty Expedia Holdings, Inc., 1.00%, 6/30/47 (a)(b) 

 

2,626,069

 

1,415

 

MercadoLibre, Inc., 2.00%, 8/15/28 (a)(b) 

 

1,830,656

 

1,155

 

Okta, Inc., 0.25%, 2/15/23

 

2,561,574

 

5,315

 

Palo Alto Networks, Inc., 0.75%, 7/1/23 (a)(b) 

 

6,050,913

 

 

 

Twitter, Inc.,

 

 

 

2,940

 

0.25%, 6/15/24 (a)(b)

 

2,975,912

 

2,150

 

1.00%, 9/15/21

 

2,080,416

 

2,240

 

Zendesk, Inc., 0.25%, 3/15/23

 

3,380,182

 

2,240

 

Zillow Group, Inc., 2.00%, 12/1/21

 

2,275,000

 

 

 

 

 

36,670,062

 

Investment Companies - 0.3%

 

 

 

4,355

 

Prospect Capital Corp., 6.375%, 3/1/25

 

4,338,669

 

 

 

 

 

Iron/Steel - 0.1%

 

 

 

925

 

Cleveland-Cliffs, Inc., 1.50%, 1/15/25

 

1,275,430

 

 

 

 

 

Lodging - 0.3%

 

 

 

2,535

 

Caesars Entertainment Corp., 5.00%, 10/1/24

 

3,758,315

 

 

 

 

 

Machinery-Diversified - 0.2%

 

 

 

1,710

 

Chart Industries, Inc., 1.00%, 11/15/24 (a)(b) 

 

2,738,749

 

 

 

 

 

Media - 1.4%

 

 

 

 

 

DISH Network Corp.,

 

 

 

2,300

 

2.375%, 3/15/24

 

2,007,805

 

6,545

 

3.375%, 8/15/26

 

6,020,174

 

1,600

 

Liberty Interactive LLC, 1.75%, 9/30/46 (a)(b) 

 

1,926,354

 

 

 

Liberty Media Corp.,

 

 

 

2,095

 

1.00%, 1/30/23

 

2,510,781

 

2,815

 

1.375%, 10/15/23

 

3,294,676

 

3,625

 

2.125%, 3/31/48 (a)(b)

 

3,529,644

 

 

 

 

 

19,289,434

 

Oil, Gas & Consumable Fuels - 0.8%

 

 

 

4,240

 

Chesapeake Energy Corp., 5.50%, 9/15/26

 

3,855,574

 

2,400

 

Ensco Jersey Finance Ltd., 3.00%, 1/31/24

 

2,034,000

 

600

 

Helix Energy Solutions Group, Inc., 4.25%, 5/1/22

 

589,812

 

2,000

 

Nabors Industries, Inc., 0.75%, 1/15/24

 

1,449,495

 

465

 

Oil States International, Inc., 1.50%, 2/15/23

 

418,791

 

1,775

 

Transocean, Inc., 0.50%, 1/30/23

 

1,904,820

 

 

 

 

 

10,252,492

 

Pharmaceuticals - 1.3%

 

 

 

3,175

 

DexCom, Inc., 0.75%, 12/1/23 (a)(b) 

 

3,313,910

 

850

 

Flexion Therapeutics, Inc., 3.375%, 5/1/24

 

714,605

 

3,455

 

Herbalife Nutrition Ltd., 2.625%, 3/15/24

 

3,633,988

 

1,700

 

Horizon Pharma Investment Ltd., 2.50%, 3/15/22

 

1,913,563

 

 

 

Jazz Investments I Ltd.,

 

 

 

2,135

 

1.50%, 8/15/24

 

2,036,256

 

3,600

 

1.875%, 8/15/21

 

3,584,250

 

1,790

 

Supernus Pharmaceuticals, Inc., 0.625%, 4/1/23

 

1,813,678

 

 

 

 

 

17,010,250

 

Pipelines - 0.4%

 

 

 

7,560

 

Cheniere Energy, Inc., 4.25%, 3/15/45

 

6,010,200

 

 

 

 

 

Retail - 0.1%

 

 

 

2,260

 

RH, zero coupon, 6/15/23 (a)(b) 

 

1,966,794

 

 

 

Semiconductors - 3.1%

 

 

 

1,310

 

Advanced Micro Devices, Inc., 2.125%, 9/1/26

 

4,625,689

 

1,715

 

Cree, Inc., 0.875%, 9/1/23 (a)(b) 

 

2,175,618

 

1,965

 

Cypress Semiconductor Corp., 2.00%, 2/1/23

 

2,138,598

 

2,025

 

Inphi Corp., 1.125%, 12/1/20

 

2,551,500

 

1,180

 

Intel Corp., 3.25%, 8/1/39

 

2,949,729

 

10,030

 

Microchip Technology, Inc., 1.625%, 2/15/27

 

13,037,604

 

 

 

Micron Technology, Inc.,

 

 

 

280

 

2.125%, 2/15/33, Ser. F

 

1,077,804

 

130

 

3.125%, 5/1/32, Ser. D

 

548,286

 

540

 

Novellus Systems, Inc., 2.625%, 5/15/41

 

3,402,594

 

1,715

 

NXP Semiconductors NV, 1.00%, 12/1/19

 

1,900,476

 

2,910

 

ON Semiconductor Corp., 1.625%, 10/15/23

 

3,828,250

 

2,785

 

Synaptics, Inc., 0.50%, 6/15/22

 

2,549,667

 

1,605

 

Veeco Instruments, Inc., 2.70%, 1/15/23

 

1,394,581

 

 

 

 

 

42,180,396

 

Software - 3.5%

 

 

 

3,515

 

Akamai Technologies, Inc., 0.125%, 5/1/25 (a)(b) 

 

3,729,511

 

175

 

Alteryx, Inc., 0.50%, 6/1/23 (a)(b) 

 

366,686

 

2,685

 

Atlassian, Inc., 0.625%, 5/1/23 (a)(b) 

 

3,977,242

 

1,465

 

Avaya Holdings Corp., 2.25%, 6/15/23 (a)(b) 

 

1,434,102

 

2,700

 

DocuSign, Inc., 0.50%, 9/15/23 (a)(b) 

 

2,921,089

 

1,920

 

Envestnet, Inc., 1.75%, 6/1/23 (a)(b) 

 

2,320,074

 

 

 

Evolent Health, Inc.,

 

 

 

2,220

 

1.50%, 10/15/25 (a)(b)

 

1,832,906

 

1,945

 

2.00%, 12/1/21

 

1,908,636

 

950

 

Five9, Inc., 0.125%, 5/1/23 (a)(b) 

 

1,350,478

 

1,940

 

LivePerson, Inc., 0.75%, 3/1/24 (a)(b) 

 

2,010,422

 

925

 

New Relic, Inc., 0.50%, 5/1/23 (a)(b) 

 

1,083,252

 

 

 

Nuance Communications, Inc.,

 

 

 

1,875

 

1.00%, 12/15/35

 

1,752,715

 

1,950

 

1.25%, 4/1/25

 

1,939,568

 

1,955

 

Pluralsight, Inc., 0.375%, 3/1/24 (a)(b) 

 

2,233,166

 

1,440

 

RealPage, Inc., 1.50%, 11/15/22

 

2,355,323

 

1,725

 

ServiceNow, Inc., zero coupon, 6/1/22

 

3,495,261

 

 

 

Splunk, Inc. (a)(b),

 

 

 

1,720

 

0.50%, 9/15/23

 

1,962,972

 

2,845

 

1.125%, 9/15/25

 

3,323,189

 

1,565

 

Twilio, Inc., 0.25%, 6/1/23 (a)(b) 

 

3,137,666

 

2,955

 

Workday, Inc., 0.25%, 10/1/22

 

4,400,677

 

 

 

 

 

47,534,935

 

Telecommunications - 0.5%

 

 

 

1,455

 

GDS Holdings Ltd., 2.00%, 6/1/25 (a)(b) 

 

1,465,442

 

3,955

 

Viavi Solutions, Inc., 1.00%, 3/1/24

 

4,627,674

 

 

 

 

 

6,093,116

 

Transportation - 0.3%

 

 

 

2,420

 

Atlas Air Worldwide Holdings, Inc., 2.25%, 6/1/22

 

2,512,786

 

2,065

 

Greenbrier Cos., Inc., 2.875%, 2/1/24

 

2,084,605

 

 

 

 

 

4,597,391

 

 

 

 

 

Total Convertible Bonds & Notes (cost-$306,025,157)

 

317,696,637

 

 

Shares

 

 

 

 

 

CONVERTIBLE PREFERRED STOCK - 5.1%

 

 

 

Banks - 1.3%

 

 

 

6,005

 

Bank of America Corp., 7.25%, Ser. L (e) 

 

7,929,663

 

7,505

 

Wells Fargo & Co., 7.50%, Ser. L (e) 

 

9,812,337

 

 

 

 

 

17,742,000

 

Chemicals - 0.2%

 

 

 

56,875

 

International Flavors & Fragrances, Inc., 6.00%, 9/15/21

 

2,981,956

 

 

 

 

 

Diversified Financial Services - 0.2%

 

 

 

63,045

 

AMG Capital Trust II, 5.15%, 10/15/37

 

3,170,226

 

 

 

 

 

Electric Utilities - 0.9%

 

 

 

75,035

 

CenterPoint Energy, Inc., 7.00%, 9/1/21, Ser. B

 

3,994,863

 

90,000

 

NextEra Energy, Inc., 6.123%, 9/1/19

 

5,616,000

 

 

 

25,295

 

Sempra Energy, 6.00%, 1/15/21, Ser. A

 

2,703,783

 

 

 

 

 

12,314,646

 

Electronic Equipment, Instruments & Components - 0.1%

 

 

 

19,650

 

Belden, Inc., 6.75%, 7/15/19

 

1,475,518

 

 

 

 

 

Electronics - 0.3%

 

 

 

3,440

 

Fortive Corp., 5.00%, 7/1/21, Ser. A

 

3,712,620

 

 

 

 

 

Equity Real Estate Investment Trusts (REITs) - 0.4%

 

 

 

4,525

 

Crown Castle International Corp., 6.875%, 8/1/20, Ser. A

 

5,218,960

 

 

 

 

 

Gas Utilities - 0.3%

 

 

 

78,185

 

South Jersey Industries, Inc., 7.25%, 4/15/21

 

4,036,692

 

 

 

 

 

Hand/Machine Tools - 0.3%

 

 

 

37,185

 

Stanley Black & Decker, Inc., 5.375%, 5/15/20

 

3,805,141

 

 

 

 

 

Healthcare-Products - 0.7%

 

 

 

99,605

 

Becton Dickinson and Co., 6.125%, 5/1/20, Ser. A

 

5,940,940

 

2,765

 

Danaher Corp., 4.75%, 4/15/22, Ser. A

 

2,912,928

 

 

 

 

 

8,853,868

 

Investment Companies - 0.1%

 

 

 

6,930

 

Mandatory Exchangeable Trust, 5.75%, 6/1/19 (a)(b) 

 

1,436,139

 

 

 

 

 

Metal Fabricate/Hardware - 0.2%

 

 

 

44,915

 

Rexnord Corp., 5.75%, 11/15/19, Ser. A

 

2,634,265

 

 

 

 

 

Oil, Gas & Consumable Fuels - 0.1%

 

 

 

45,100

 

ATP Oil & Gas Corp., 8.00% (cost - $4,510,000; purchased 9/23/09) (a)(b)(d)(e)(f)(h)

 

4

 

15,975

 

Nabors Industries Ltd., 6.00%, 5/1/21

 

429,568

 

213,230

 

Sanchez Energy Corp., 6.50%, Ser. B (e) 

 

200,436

 

 

 

 

 

630,008

 

 

 

 

 

Total Convertible Preferred Stock (cost-$76,065,626)

 

68,012,039

 

 

Principal
Amount
(000s)

 

 

 

 

 

CORPORATE BONDS & NOTES (c) - 0.0%

 

 

 

Oil, Gas & Consumable Fuels - 0.0%

 

 

 

$4,647

 

Cobalt International Energy, Inc., 7.75%, 12/1/23 (cost-$2,077,040)

 

325,290

 

 

 

 

 

Repurchase Agreements - 2.4%

 

 

 

32,440

 

State Street Bank and Trust Co., dated 4/30/19, 0.50%, due 5/1/19, proceeds $32,440,451; collateralized by U.S. Treasury Notes, 2.625% - 2.75%, due 5/31/23 - 6/30/23, valued at $33,093,482 including accrued interest (cost-$32,440,000)

 

32,440,000

 

 

 

 

 

Total Investments, before options written
(cost-$1,307,211,206)-100.2%

 

1,347,777,640

 

 

 

 

 

Total Options Written -(0.3)% (premiums received-$2,388,107) (i)(j)(k)

 

(4,442,261

)

 

 

 

 

Total Investments, net of options written
(cost-$1,304,823,099) (l)-99.9%

 

1,343,335,379

 

Other assets less other liabilities-0.1%

 

967,106

 

Net Assets-100.0%

 

$1,344,302,485

 

 

 

Notes to Schedule of Investments:

 

*Portfolio securities and other financial instruments for which market quotations are readily available are valued at market value. Market values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, or based on quotes or other market information obtained from quotation reporting systems, established market makers or pricing services. Investments in mutual funds are valued at the net asset value per share (“NAV”) as reported on each business day. The Fund’s investments are valued daily using prices supplied by an independent pricing service or broker/dealer quotations, or by using the last sale or settlement price on the exchange that is the primary market for such securities, or the mean between the last bid and ask quotations. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.

 

The Board of Trustees of the Fund (the “Board”) has adopted procedures for valuing portfolio securities and other financial instruments in circumstances where market quotes are not readily available (including in cases where available market quotations are deemed to be unreliable), and has delegated primary responsibility for applying the valuation methods to the investment manager, Allianz Global Investors U.S. LLC (the “Investment Manager”). The Fund’s Valuation Committee was established by the Board to oversee the implementation of the Fund’s valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Investment Manager monitors the continued appropriateness of methods applied and identifies circumstances and events that may require fair valuation. The Investment Manager determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Investment Manager determines that a valuation method may no longer be appropriate, another valuation method previously approved by the Valuation Committee may be selected or the Fund’s Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Valuation Committee.

 

Short-term debt instruments having a remaining maturity of 60 days or less will be valued at amortized cost unless the Board or its Valuation Committee determines that particular circumstances dictate otherwise.

 

The prices used by the Fund to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material. The Fund’s NAV is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern Time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business. In unusual circumstances, the Board or the Valuation Committee may in good faith determine the NAV as of 4:00 p.m., Eastern Time, notwithstanding an earlier, unscheduled close or halt of trading on the NYSE.

 

(a)

 

Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $106,484,538, representing 7.9% of net assets.

(b)

 

144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $106,484,538, representing 7.9% of net assets.

(c)

 

In default.

(d)

 

Fair-Valued—Security with a value of $4, representing less than 0.05% of net assets.

(e)

 

Perpetual maturity. The date shown, if any, is the next call date.

(f)

 

Level 3 security.

(g)

 

All or partial amount segregated for the benefit of the counterparty as collateral for options written.

(h)

 

Restricted. The cost of such security is $4,510,000. The value is $4, representing less than 0.05% of net assets.

(i)

 

Non-income producing.

(j)

 

Exchange traded-Chicago Board Options Exchange.

(k)

 

Exchange traded option contracts outstanding at April 30, 2019:

 

Options written contracts outstanding at April 30, 2019:

 

Description

 

Exercise Price

 

Expiration
Date

 

Number of
Contracts

 

Notional
Amount

 

Market
Value

 

Premiums
Received

 

Unrealized
Appreciation
(Depreciation)

 

Call options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amgen, Inc.

 

190.00 USD

 

5/17/19

 

(356

)

$(35,600

)

$(29,192

)

$(72,247

)

$43,055

 

Bank of America Corp.

 

29.00 USD

 

5/17/19

 

(2,411

)

(241,100

)

(406,254

)

(72,329

)

(333,925

)

Broadcom, Inc.

 

340.00 USD

 

6/21/19

 

(246

)

(24,600

)

(118,080

)

(129,877

)

11,797

 

Celanese Corp.

 

105.00 USD

 

5/17/19

 

(206

)

(20,600

)

(88,580

)

(17,723

)

(70,857

)

Cisco Systems, Inc.

 

55.00 USD

 

5/17/19

 

(1,400

)

(140,000

)

(278,600

)

(109,199

)

(169,401

)

Conagra Brands, Inc.

 

31.00 USD

 

5/17/19

 

(1,974

)

(197,400

)

(113,505

)

(67,115

)

(46,390

)

ConocoPhillips

 

72.50 USD

 

5/17/19

 

(626

)

(62,600

)

(2,191

)

(38,185

)

35,994

 

General Electric Co.

 

10.50 USD

 

5/10/19

 

(4,566

)

(456,600

)

(63,924

)

(82,187

)

18,263

 

General Motors Co.

 

42.00 USD

 

5/17/19

 

(1,723

)

(172,300

)

(5,169

)

(68,919

)

63,750

 

International Paper Co

 

47.50 USD

 

5/17/19

 

(908

)

(90,800

)

(51,302

)

(48,123

)

(3,179

)

JPMorgan Chase & Co.

 

104.00 USD

 

5/3/19

 

(932

)

(93,200

)

(1,083,450

)

(66,171

)

(1,017,279

)

KLA-Tencor Corp.

 

130.00 USD

 

5/17/19

 

(337

)

(33,700

)

(85,092

)

(49,875

)

(35,217

)

Medtronic PLC

 

87.50 USD

 

5/31/19

 

(702

)

(70,200

)

(214,110

)

(55,418

)

(158,692

)

Merck & Co., Inc.

 

77.50 USD

 

5/17/19

 

(900

)

(90,000

)

(187,200

)

(50,349

)

(136,851

)

 

 

MetLife, Inc.

 

45.00 USD

 

5/17/19

 

(1,600

)

(160,000

)

(257,600

)

(55,999

)

(201,601

)

Mondelez International, Inc.,

 

52.50 USD

 

6/21/19

 

(1,346

)

(134,600

)

(111,718

)

(71,336

)

(40,382

)

Oracle Corp.

 

57.00 USD

 

5/17/19

 

(1,385

)

(138,500

)

(24,237

)

(37,394

)

13,157

 

Pfizer, Inc.

 

40.00 USD

 

5/3/19

 

(1,606

)

(160,600

)

(116,435

)

(65,845

)

(50,590

)

Philip Morris International, Inc.

 

92.50 USD

 

5/17/19

 

(236

)

(23,600

)

(1,652

)

(35,167

)

33,515

 

Philip Morris International, Inc.

 

87.50 USD

 

6/21/19

 

(436

)

(43,600

)

(85,238

)

(38,779

)

(46,459

)

Public Service Enterprise Group, Inc.

 

55.00 USD

 

6/21/19

 

(1,500

)

(150,000

)

(727,500

)

(690,741

)

(36,759

)

Quest Diagnostics, Inc.

 

95.00 USD

 

5/17/19

 

(681

)

(68,100

)

(171,953

)

(40,179

)

(131,774

)

Royal Dutch Shell PLC

 

66.00 USD

 

5/3/19

 

(1,763

)

(176,300

)

(8,815

)

(47,601

)

38,786

 

Target Corp.

 

82.50 USD

 

5/17/19

 

(926

)

(92,600

)

(8,797

)

(88,895

)

80,098

 

Valero Energy Corp.

 

89.50 USD

 

5/3/19

 

(642

)

(64,200

)

(106,251

)

(94,373

)

(11,878

)

Verizon Communications, Inc.

 

60.00 USD

 

6/21/19

 

(1,225

)

(122,500

)

(40,425

)

(77,173

)

36,748

 

Walt Disney Co.

 

142.00 USD

 

5/17/19

 

(433

)

(43,300

)

(54,991

)

(116,908

)

61,917

 

Total options written contracts

 

 

 

 

 

 

 

 

 

$(4,442,261

)

$(2,388,107

)

$(2,054,154

)

 

(l)                  At April 30, 2019, the cost basis of portfolio securities for federal income tax purposes was $1,306,044,431. Gross unrealized appreciation was $130,538,064; gross unrealized depreciation was $93,247,116; and net unrealized appreciation was $37,290,948. The difference between book and tax cost basis was primarily attributable to wash sale loss deferrals.

 

Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:

 

·                  Level 1 — quoted prices in active markets for identical investments that the Fund has the ability to access

·                  Level 2 — valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs

·                  Level 3 — valuations based on significant unobservable inputs (including the Investment Manager’s or the Fund’s Valuation Committee’s own assumptions and securities whose price was determined by using a single broker’s quote)

 

The valuation techniques used by the Fund to measure fair value during the three months ended April 30, 2019 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.

 

An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each major category of assets and liabilities within Level 2 and Level 3, in accordance with accounting principles generally acceptable in the United States of America.

 

Equity Securities (Common and Preferred Stock and Warrants) — Equity securities traded in inactive markets are valued using inputs which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or evaluated price quotes received from independent pricing services that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable, the values of equity securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Convertible Bonds & Notes — Convertible bonds & notes are valued by independent pricing services based on various inputs and techniques, which include broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of convertible bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Corporate Bonds & Notes — Corporate bonds & notes are generally comprised of two main categories: investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Option Contracts — Option contracts traded over-the-counter (“OTC”) and FLexible EXchange (“FLEX”) options are valued by independent pricing services based on pricing models that incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts based on a given strike price. To the extent that these inputs are observable, the values of OTC and FLEX option contracts are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

A summary of the inputs used at April 30, 2019 in valuing the Fund’s assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):

 

 

 

 

Level 1 -
Quoted Prices

 

Level 2 -
Other Significant
Observable
Inputs

 

Level 3 -
Significant
Unobservable
Inputs

 

Value at
4/30/19

 

Investments in Securities - Assets

 

 

 

 

 

 

 

 

 

Common Stock

 

$929,303,674

 

—

 

—

 

$929,303,674

 

Convertible Bonds & Notes

 

—

 

$317,696,637

 

—

 

317,696,637

 

Convertible Preferred Stock:

 

 

 

 

 

 

 

 

 

Diversified Financial Services

 

—

 

3,170,226

 

—

 

3,170,226

 

Electronics

 

—

 

3,712,620

 

—

 

3,712,620

 

Equity Real Estate Investment Trusts (REITs)

 

—

 

5,218,960

 

—

 

5,218,960

 

Hand/Machine Tools

 

—

 

3,805,141

 

—

 

3,805,141

 

Healthcare-Products

 

2,912,928

 

5,940,940

 

—

 

8,853,868

 

Investment Companies

 

—

 

1,436,139

 

—

 

1,436,139

 

Oil, Gas & Consumable Fuels

 

429,568

 

200,436

 

$4

 

630,008

 

All Other

 

41,185,077

 

—

 

—

 

41,185,077

 

Corporate Bonds & Notes

 

—

 

325,290

 

—

 

325,290

 

Repurchase Agreements

 

—

 

32,440,000

 

—

 

32,440,000

 

 

 

973,831,247

 

373,946,389

 

4

 

1,347,777,640

 

Investments in Securities - Liabilities

 

 

 

 

 

 

 

 

 

Options Written:

 

 

 

 

 

 

 

 

 

Market Price

 

(4,442,261

)

—

 

—

 

(4,442,261

)

Totals

 

$969,388,986

 

$373,946,389

 

$4

 

$1,343,335,379

 

 

A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the three months ended April 30, 2019, was as follows:

 

 

 

Beginning
Balance
1/31/19

 

Purchases

 

Sales

 

Accrued
Discount
(Premiums)

 

Net
Realized
Gain (Loss)

 

Net Change
in Unrealized
Appreciation/
Depreciation

 

Transfers
into
Level 3

 

Transfers
out of
Level 3*

 

Ending
Balance
4/30/19

 

Investments in Securities - Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels

 

$4

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$4

 

Corporate Bonds & Notes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels

 

325,290

 

—

 

—

 

—

 

—

 

—

 

—

 

(325,290

)

—

 

Totals

 

$325,294

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$(325,290

)

$4

 

 

* Transferred out of Level 3 and into Level 2 because an evaluated mean price was available at April 30, 2019.

 

There was no change in unrealized appreciation/depreciation of Level 3 investments held at April 30, 2019.

 

Glossary:

 

ADR - American Depositary Receipt

 

REIT - Real Estate Investment Trust