NPORT-EX 2 NPORT_2602224989517686.htm

 

Schedule of Investments

AllianzGI Equity & Convertible Income Fund

October 31, 2020 (unaudited)

 

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Value^

 

COMMON STOCK - 61.9%

 

 

 

Aerospace & Defense - 0.4%

 

 

 

20,000

 

Boeing Co.

 

$

2,887,800

 

 

 

 

 

 

 

Air Freight & Logistics - 0.7%

 

 

 

19,600

 

FedEx Corp. (g)

 

5,085,612

 

 

 

 

 

Automobiles - 1.2%

 

 

 

24,125

 

Tesla, Inc. (i)

 

9,361,465

 

 

 

 

 

 

 

Banks - 0.6%

 

 

 

50,200

 

JPMorgan Chase & Co.

 

4,921,608

 

 

 

 

 

 

 

Biotechnology - 0.6%

 

 

 

57,175

 

AbbVie, Inc.

 

4,865,593

 

 

 

 

 

 

 

Capital Markets - 0.6%

 

 

 

14,875

 

S&P Global, Inc. (g)

 

4,800,609

 

 

 

 

 

 

 

Chemicals - 0.3%

 

 

 

46,400

 

Chemours Co.

 

934,496

 

14,533

 

Dow, Inc.

 

661,106

 

14,533

 

DuPont de Nemours, Inc.

 

826,637

 

 

 

 

 

2,422,239

 

Entertainment - 2.2%

 

 

 

71,600

 

Activision Blizzard, Inc. (g)

 

5,422,268

 

22,825

 

Netflix, Inc. (g)(i)

 

10,858,765

 

 

 

 

 

16,281,033

 

Equity Real Estate Investment Trusts (REITs) - 1.5%

 

 

 

24,000

 

American Tower Corp. (g)

 

5,511,600

 

37,091

 

Crown Castle International Corp. (g)

 

5,793,614

 

 

 

 

 

11,305,214

 

Food & Staples Retailing - 1.3%

 

 

 

28,050

 

Costco Wholesale Corp. (g)

 

10,031,241

 

 

 

 

 

 

 

Healthcare Equipment & Supplies - 2.8%

 

 

 

29,050

 

Abbott Laboratories (g)

 

3,053,445

 

19,225

 

Align Technology, Inc. (i)

 

8,191,388

 

133,000

 

Boston Scientific Corp. (i)

 

4,557,910

 

8,300

 

Intuitive Surgical, Inc. (i)

 

5,536,764

 

 

 

 

 

21,339,507

 

Healthcare Providers & Services - 1.6%

 

 

 

38,500

 

UnitedHealth Group, Inc. (g)

 

11,747,890

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure - 1.0%

 

 

 

18,175

 

McDonald’s Corp. (g)

 

3,871,275

 

42,700

 

Starbucks Corp. (g)

 

3,713,192

 

 

 

 

 

7,584,467

 

Household Durables - 0.7%

 

 

 

77,475

 

DR Horton, Inc.

 

5,176,105

 

 

 

 

 

 

 

Industrial Conglomerates - 0.5%

 

 

 

24,900

 

Honeywell International, Inc. (g)

 

4,107,255

 

 

 

 

 

 

 

Insurance - 0.1%

 

 

 

4,600

 

Aon PLC, Class A (g)

 

846,446

 

 

 

 

 

 

 

Interactive Media & Services - 6.0%

 

 

 

15,275

 

Alphabet, Inc., Class A (g)(i)

 

24,686,080

 

77,400

 

Facebook, Inc., Class A (g)(i)

 

20,364,714

 

 

 

 

 

45,050,794

 

Internet & Direct Marketing Retail - 3.9%

 

 

 

18,200

 

Alibaba Group Holding Ltd., ADR (g)(i)

 

5,545,358

 

7,925

 

Amazon.com, Inc. (g)(i)

 

24,061,489

 

 

 

 

 

29,606,847

 

 

 

IT Services - 5.3%

 

 

 

10,600

 

Accenture PLC, Class A (g)

 

2,299,246

 

32,500

 

Mastercard, Inc., Class A (g)

 

9,380,800

 

50,750

 

PayPal Holdings, Inc. (g)(i)

 

9,446,097

 

2,650

 

Shopify, Inc., Class A (i)

 

2,452,390

 

28,375

 

Square, Inc., Class A (i)

 

4,394,720

 

7,900

 

Twilio, Inc., Class A (g)(i)

 

2,203,863

 

54,200

 

Visa, Inc., Class A (g)

 

9,848,682

 

 

 

 

 

40,025,798

 

Life Sciences Tools & Services - 2.0%

 

 

 

32,425

 

IQVIA Holdings, Inc. (i)

 

4,993,126

 

22,025

 

Thermo Fisher Scientific, Inc.

 

10,420,468

 

 

 

 

 

15,413,594

 

Machinery - 1.3%

 

 

 

31,775

 

Caterpillar, Inc. (g)

 

4,990,264

 

20,500

 

Deere & Co. (g)

 

4,631,155

 

 

 

 

 

9,621,419

 

Metals & Mining - 0.5%

 

 

 

220,850

 

Freeport-McMoRan, Inc.

 

3,829,539

 

 

 

 

 

 

 

Multi-Line Retail - 1.7%

 

 

 

36,200

 

Dollar General Corp. (g)

 

7,555,302

 

32,625

 

Target Corp. (g)

 

4,966,178

 

 

 

 

 

12,521,480

 

Pharmaceuticals - 1.8%

 

 

 

47,200

 

Horizon Therapeutics PLC (i)

 

3,536,696

 

37,700

 

Merck & Co., Inc.

 

2,835,417

 

45,325

 

Zoetis, Inc.

 

7,186,279

 

 

 

 

 

13,558,392

 

Road & Rail - 0.5%

 

 

 

19,700

 

Union Pacific Corp. (g)

 

3,490,643

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment - 5.1%

 

 

 

32,325

 

Advanced Micro Devices, Inc. (g)(i)

 

2,433,749

 

17,900

 

Broadcom, Inc. (g)

 

6,258,377

 

7,300

 

Enphase Energy, Inc. (g)(i)

 

716,057

 

20,100

 

Lam Research Corp. (g)

 

6,875,808

 

121,575

 

Marvell Technology Group Ltd. (g)

 

4,560,278

 

50,600

 

Micron Technology, Inc. (g)(i)

 

2,547,204

 

24,877

 

NVIDIA Corp.

 

12,472,333

 

24,425

 

QUALCOMM, Inc.

 

3,013,068

 

 

 

 

 

38,876,874

 

Software - 11.5%

 

 

 

27,075

 

Adobe, Inc. (g)(i)

 

12,105,232

 

14,900

 

Atlassian Corp. PLC, Class A (g)(i)

 

2,855,138

 

30,375

 

Crowdstrike Holdings, Inc., Class A (i)

 

3,761,640

 

15,075

 

DocuSign, Inc. (g)(i)

 

3,048,919

 

19,800

 

Intuit, Inc.

 

6,230,664

 

122,775

 

Microsoft Corp.

 

24,858,254

 

46,871

 

Salesforce.com, Inc. (g)(i)

 

10,886,727

 

23,900

 

ServiceNow, Inc. (g)(i)

 

11,891,923

 

24,200

 

Workday, Inc., Class A (g)(i)

 

5,084,904

 

14,425

 

Zoom Video Communications, Inc., Class A (i)

 

6,648,627

 

 

 

 

 

87,372,028

 

Specialty Retail - 1.6%

 

 

 

46,300

 

Home Depot, Inc. (g)

 

12,348,673

 

 

 

 

 

 

 

Technology Hardware, Storage & Peripherals - 3.2%

 

 

 

219,200

 

Apple, Inc. (g)

 

23,862,112

 

 

 

 

 

 

 

Textiles, Apparel & Luxury Goods - 1.4%

 

 

 

87,100

 

NIKE, Inc., Class B (g)

 

10,458,968

 

Total Common Stock (cost-$410,355,167)

 

468,801,245

 

 

 

Principal
Amount
(000s)

 

 

 

 

 

CONVERTIBLE BONDS & NOTES - 26.5%

 

 

 

Airlines - 0.5%

 

 

 

$

1,235

 

American Airlines Group, Inc., 6.50%, 7/1/25

 

1,064,889

 

2,195

 

Southwest Airlines Co., 1.25%, 5/1/25

 

2,963,250

 

 

 

 

 

4,028,139

 

Auto Components - 0.1%

 

 

 

1,105

 

Meritor, Inc., 3.25%, 10/15/37

 

1,202,187

 

 

 

 

 

 

 

Auto Manufacturers - 1.4%

 

 

 

 

 

Tesla, Inc.,

 

 

 

1,235

 

1.25%, 3/1/21

 

6,671,632

 

660

 

2.00%, 5/15/24

 

4,140,471

 

 

 

 

 

10,812,103

 

Banks - 0.4%

 

 

 

1,150

 

BofA Finance LLC, 0.125%, 9/1/22

 

1,297,200

 

1,100

 

JPMorgan Chase Bank N.A., 0.125%, 1/1/23 (a)(b)

 

1,436,187

 

 

 

 

 

2,733,387

 

Biotechnology - 1.1%

 

 

 

 

 

BioMarin Pharmaceutical, Inc.,

 

 

 

580

 

0.599%, 8/1/24

 

598,125

 

585

 

1.25%, 5/15/27 (a)(b)

 

565,256

 

 

 

Exact Sciences Corp.,

 

 

 

2,740

 

0.375%, 3/15/27

 

3,609,950

 

645

 

0.375%, 3/1/28

 

794,156

 

720

 

Halozyme Therapeutics, Inc., 1.25%, 12/1/24 (a)(b)

 

957,195

 

1,655

 

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

 

1,986,662

 

 

 

 

 

8,511,344

 

Commercial Services - 1.1%

 

 

 

 

 

Chegg, Inc.,

 

 

 

3,855

 

zero coupon, 9/1/26 (a)(b)

 

3,907,900

 

380

 

0.125%, 3/15/25

 

588,058

 

2,485

 

Square, Inc., 0.125%, 3/1/25 (a)(b)

 

3,658,444

 

 

 

 

 

8,154,402

 

Computers - 0.9%

 

 

 

2,380

 

Lumentum Holdings, Inc., 0.50%, 12/15/26 (a)(b)

 

2,682,734

 

1,720

 

Western Digital Corp., 1.50%, 2/1/24

 

1,650,224

 

1,870

 

Zscaler, Inc., 0.125%, 7/1/25 (a)(b)

 

2,171,800

 

 

 

 

 

6,504,758

 

Diversified Financial Services - 0.2%

 

 

 

1,315

 

LendingTree, Inc., 0.50%, 7/15/25 (a)(b)

 

1,313,356

 

 

 

 

 

 

 

Electronics - 0.3%

 

 

 

1,010

 

Fortive Corp., 0.875%, 2/15/22

 

1,008,748

 

1,130

 

SMART Global Holdings, Inc., 2.25%, 2/15/26 (a)(b)

 

1,030,040

 

 

 

 

 

2,038,788

 

Engineering & Construction - 0.1%

 

 

 

345

 

KBR, Inc., 2.50%, 11/1/23

 

383,452

 

 

 

 

 

 

 

Entertainment - 0.3%

 

 

 

685

 

Cinemark Holdings, Inc., 4.50%, 8/15/25 (a)(b)

 

594,690

 

 

 

Live Nation Entertainment, Inc.,

 

 

 

485

 

2.00%, 2/15/25 (a)(b)

 

426,205

 

1,455

 

2.50%, 3/15/23

 

1,563,215

 

 

 

 

 

2,584,110

 

Equity Real Estate Investment Trusts (REITs) - 0.3%

 

 

 

2,000

 

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

 

1,998,750

 

 

 

 

 

 

 

Healthcare-Products - 0.9%

 

 

 

3,010

 

Insulet Corp., 0.375%, 9/1/26

 

3,691,083

 

1,360

 

NuVasive, Inc., 2.25%, 3/15/21

 

1,376,178

 

 

 

1,120

 

Repligen Corp., 0.375%, 7/15/24

 

1,750,820

 

 

 

 

 

6,818,081

 

Healthcare-Services - 0.5%

 

 

 

3,385

 

Teladoc Health, Inc., 1.25%, 6/1/27 (a)(b)

 

3,957,987

 

 

 

 

 

 

 

Internet - 4.9%

 

 

 

815

 

Booking Holdings, Inc., 0.75%, 5/1/25 (a)(b)

 

1,023,364

 

3,155

 

Etsy, Inc., 0.125%, 9/1/27 (a)(b)

 

3,283,778

 

2,190

 

Match Group Financeco 2, Inc., 0.875%, 6/15/26 (a)(b)

 

3,288,050

 

975

 

Match Group Financeco 3, Inc., 2.00%, 1/15/30 (a)(b)

 

1,557,397

 

 

 

Okta, Inc.,

 

 

 

1,525

 

0.125%, 9/1/25

 

1,999,656

 

1,160

 

0.375%, 6/15/26 (a)(b)

 

1,316,802

 

 

 

Palo Alto Networks, Inc.,

 

 

 

2,575

 

0.375%, 6/1/25 (a)(b)

 

2,629,719

 

915

 

0.75%, 7/1/23

 

983,292

 

1,920

 

Proofpoint, Inc., 0.25%, 8/15/24

 

1,860,702

 

1,835

 

Shopify, Inc., 0.125%, 11/1/25

 

2,016,206

 

2,485

 

Snap, Inc., 0.75%, 8/1/26

 

4,633,150

 

1,680

 

Twitter, Inc., 0.25%, 6/15/24

 

1,838,422

 

3,930

 

Wayfair, Inc., 0.625%, 10/1/25 (a)(b)

 

3,766,933

 

2,140

 

Zendesk, Inc., 0.625%, 6/15/25 (a)(b)

 

2,686,317

 

 

 

Zillow Group, Inc.,

 

 

 

1,090

 

1.50%, 7/1/23

 

1,425,825

 

1,780

 

2.75%, 5/15/25

 

2,799,632

 

 

 

 

 

37,109,245

 

Investment Companies - 0.3%

 

 

 

2,450

 

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

 

2,508,187

 

 

 

 

 

 

 

Iron/Steel - 0.1%

 

 

 

465

 

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

 

571,769

 

 

 

 

 

 

 

Leisure - 0.8%

 

 

 

 

 

NCL Corp., Ltd. (a)(b),

 

 

 

760

 

5.375%, 8/1/25

 

883,025

 

1,355

 

6.00%, 5/15/24

 

1,922,660

 

 

 

Royal Caribbean Cruises Ltd. (a)(b),

 

 

 

965

 

2.875%, 11/15/23

 

916,244

 

2,230

 

4.25%, 6/15/23

 

2,321,310

 

 

 

 

 

6,043,239

 

Media - 1.4%

 

 

 

 

 

DISH Network Corp.,

 

 

 

1,385

 

2.375%, 3/15/24

 

1,249,263

 

3,780

 

3.375%, 8/15/26

 

3,350,629

 

1,005

 

Liberty Broadband Corp., 2.75%, 9/30/50 (a)(b)

 

1,080,294

 

 

 

Liberty Media Corp.,

 

 

 

1,055

 

1.00%, 1/30/23

 

1,255,450

 

1,105

 

1.375%, 10/15/23

 

1,240,736

 

2,305

 

2.75%, 12/1/49 (a)(b)

 

2,307,305

 

190

 

World Wrestling Entertainment, Inc., 3.375%, 12/15/23

 

307,412

 

 

 

 

 

10,791,089

 

Oil, Gas & Consumable Fuels - 0.4%

 

 

 

1,400

 

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

 

157,814

 

920

 

EQT Corp., 1.75%, 5/1/26 (a)(b)

 

1,179,853

 

1,170

 

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

 

327,600

 

200

 

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

 

113,488

 

1,535

 

Pioneer Natural Resources Co., 0.25%, 5/15/25 (a)(b)

 

1,643,038

 

 

 

 

 

3,421,793

 

Pharmaceuticals - 0.7%

 

 

 

 

 

DexCom, Inc.,

 

 

 

3,915

 

0.25%, 11/15/25 (a)(b)

 

3,784,292

 

85

 

0.75%, 12/1/23

 

169,659

 

550

 

Sarepta Therapeutics, Inc., 1.50%, 11/15/24

 

1,099,566

 

 

 

 

 

5,053,517

 

Pipelines - 0.4%

 

 

 

4,200

 

Cheniere Energy, Inc., 4.25%, 3/15/45

 

3,138,094

 

 

 

Real Estate - 0.0%

 

 

 

125

 

Redfin Corp., zero coupon, 10/15/25 (a)(b)

 

117,975

 

 

 

 

 

 

 

Retail - 0.5%

 

 

 

1,255

 

Burlington Stores, Inc., 2.25%, 4/15/25 (a)(b)

 

1,442,591

 

370

 

Guess?, Inc., 2.00%, 4/15/24

 

302,960

 

1,040

 

RH, zero coupon, 6/15/23

 

1,872,058

 

 

 

 

 

3,617,609

 

Semiconductors - 1.8%

 

 

 

45

 

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

 

422,649

 

1,330

 

Cree, Inc., 0.875%, 9/1/23

 

1,663,213

 

1,885

 

Inphi Corp., 0.75%, 4/15/25 (a)(b)

 

2,420,954

 

4,000

 

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

 

6,232,415

 

1,850

 

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

 

2,640,727

 

560

 

Synaptics, Inc., 0.50%, 6/15/22

 

675,654

 

 

 

 

 

14,055,612

 

Software - 6.5%

 

 

 

2,800

 

Akamai Technologies, Inc., 0.125%, 5/1/25

 

3,284,750

 

2,425

 

Alteryx, Inc., 0.50%, 8/1/24

 

2,535,641

 

595

 

Atlassian, Inc., 0.625%, 5/1/23

 

1,398,354

 

760

 

Cloudflare, Inc., 0.75%, 5/15/25 (a)(b)

 

1,202,446

 

3,550

 

Coupa Software, Inc., 0.375%, 6/15/26 (a)(b)

 

4,138,218

 

1,745

 

Datadog, Inc., 0.125%, 6/15/25 (a)(b)

 

2,189,276

 

550

 

DocuSign, Inc., 0.50%, 9/15/23

 

1,565,094

 

1,270

 

Envestnet, Inc., 0.75%, 8/15/25 (a)(b)

 

1,275,860

 

1,100

 

Everbridge, Inc., 0.125%, 12/15/24 (a)(b)

 

1,293,188

 

1,250

 

Evolent Health, Inc., 1.50%, 10/15/25

 

994,267

 

1,710

 

Five9, Inc., 0.50%, 6/1/25 (a)(b)

 

2,270,025

 

1,325

 

HubSpot, Inc., 0.375%, 6/1/25 (a)(b)

 

1,665,025

 

1,740

 

j2 Global, Inc., 1.75%, 11/1/26 (a)(b)

 

1,565,103

 

2,525

 

MongoDB, Inc., 0.25%, 1/15/26 (a)(b)

 

3,284,716

 

1,250

 

New Relic, Inc., 0.50%, 5/1/23

 

1,206,439

 

1,595

 

Nutanix, Inc., zero coupon, 1/15/23

 

1,536,331

 

1,145

 

Pegasystems, Inc., 0.75%, 3/1/25 (a)(b)

 

1,280,110

 

1,260

 

Pluralsight, Inc., 0.375%, 3/1/24

 

1,103,760

 

3,560

 

RingCentral, Inc., zero coupon, 3/1/25 (a)(b)

 

3,772,851

 

385

 

Sea Ltd., 2.375%, 12/1/25 (a)(b)

 

734,056

 

55

 

ServiceNow, Inc., zero coupon, 6/1/22

 

203,049

 

1,350

 

Slack Technologies, Inc., 0.50%, 4/15/25 (a)(b)

 

1,546,594

 

4,285

 

Splunk, Inc., 1.125%, 6/15/27 (a)(b)

 

4,737,684

 

1,395

 

Workday, Inc., 0.25%, 10/1/22

 

2,104,173

 

1,660

 

Zynga, Inc., 0.25%, 6/1/24

 

2,094,712

 

 

 

 

 

48,981,722

 

Telecommunications - 0.4%

 

 

 

1,745

 

Viavi Solutions, Inc., 1.00%, 3/1/24

 

2,022,364

 

765

 

Vonage Holdings Corp., 1.75%, 6/1/24

 

749,608

 

 

 

 

 

2,771,972

 

Transportation - 0.2%

 

 

 

555

 

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

 

595,554

 

1,125

 

Greenbrier Cos., Inc., 2.875%, 2/1/24

 

1,019,413

 

 

 

 

 

1,614,967

 

Total Convertible Bonds & Notes (cost-$182,949,892)

 

200,837,634

 

 

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CONVERTIBLE PREFERRED STOCK - 6.9%

 

 

 

Auto Components - 0.3%

 

 

 

22,080

 

Aptiv PLC, 5.50%, 6/15/23, Ser. A

 

2,658,432

 

 

 

 

 

 

 

Banks - 1.2%

 

 

 

2,930

 

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

 

4,298,017

 

3,555

 

Wells Fargo & Co., 7.50%, Ser. L (e)

 

4,794,842

 

 

 

 

 

9,092,859

 

Chemicals - 0.2%

 

 

 

42,800

 

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

 

1,653,792

 

 

 

 

 

 

 

Diversified Financial Services - 0.3%

 

 

 

1,255

 

2020 Mandatory Exchangeable Trust, 6.50%, 5/16/23 (a)(b)

 

1,832,300

 

 

 

9,440

 

KKR & Co., Inc., 6.00%, 9/15/23, Ser. C

 

491,258

 

 

 

 

 

2,323,558

 

Electric Utilities - 1.1%

 

 

 

 

 

NextEra Energy, Inc.,

 

 

 

45,625

 

5.279%, 3/1/23

 

2,256,156

 

69,490

 

6.219%, 9/1/23

 

3,427,942

 

14,605

 

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

 

1,494,237

 

23,000

 

Southern Co., 6.75%, 8/1/22

 

1,111,820

 

 

 

 

 

8,290,155

 

Electronics - 0.3%

 

 

 

1,455

 

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

 

1,344,900

 

3,710

 

II-VI, Inc., 6.00%, 7/1/23, Ser. A

 

771,977

 

 

 

 

 

2,116,877

 

Environmental Services - 0.2%

 

 

 

29,470

 

GFL Environmental Inc., 6.00%, 3/15/23

 

1,462,891

 

 

 

 

 

 

 

Hand/Machine Tools - 0.1%

 

 

 

7,175

 

Stanley Black & Decker, Inc., 5.25%, 11/15/22

 

748,926

 

 

 

 

 

 

 

Healthcare-Products - 1.5%

 

 

 

35,255

 

Avantor, Inc., 6.25%, 5/15/22, Ser. A

 

2,648,003

 

20,265

 

Boston Scientific Corp., 5.50%, 6/1/23, Ser. A

 

2,099,048

 

 

 

Danaher Corp.,

 

 

 

2,975

 

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

 

4,670,423

 

1,445

 

5.00%, 4/15/23, Ser. B

 

1,927,977

 

 

 

 

 

11,345,451

 

Insurance - 0.2%

 

 

 

10,940

 

Assurant, Inc., 6.50%, 3/15/21, Ser. D

 

1,320,349

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels - 0.0%

 

 

 

25,000

 

ATP Oil & Gas Corp., 8.00% (cost-$3,160,750; purchased 4/21/10) (a)(b)(d)(e)(f)(h)

 

2

 

8,860

 

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

 

44,743

 

 

 

 

 

44,745

 

Pharmaceuticals - 0.4%

 

 

 

27,310

 

Becton Dickinson and Co., 6.00%, 6/1/23, Ser. B

 

1,422,305

 

26,635

 

Elanco Animal Health, Inc., 5.00%, 2/1/23

 

1,288,335

 

 

 

 

 

2,710,640

 

Semiconductors - 0.7%

 

 

 

4,495

 

Broadcom, Inc., 8.00%, 9/30/22, Ser. A

 

5,349,005

 

 

 

 

 

 

 

Telecommunications - 0.4%

 

 

 

2,685

 

2020 Cash Mandatory Exchangeable Trust, 5.25%, 6/1/23 (a)(b)

 

2,808,678

 

Total Convertible Preferred Stock (cost-$50,941,056)

 

51,926,358

 

 

Principal
Amount
(000s)

 

 

 

 

 

CORPORATE BONDS & NOTES - 0.0%

 

 

 

Oil, Gas & Consumable Fuels - 0.0%

 

 

 

$

2,509

 

Cobalt International Energy, Inc., 7.75%, 12/1/23 (c) (cost-$1,122,234)

 

77,553

 

Repurchase Agreements - 5.1%

 

 

 

38,686

 

State Street Bank and Trust Co.,
dated 10/30/20, 0.00%, due 11/2/20, proceeds $38,686,000; collateralized by U.S. Treasury Notes, 0.625%, due 3/31/27, valued at $39,459,820 including accrued interest (cost-$38,686,000)

 

38,686,000

 

 

 

Total Investments, before options written (cost-$684,054,349)-100.4%

 

760,328,790

 

 

 

 

 

Total Options Written —(0.0)% (premiums received-$729,367) (i)(j)(k)

 

(346,767

)

 

 

 

 

Total Investments, net of options written (cost-$683,324,982) (l)-100.4%

 

759,982,023

 

Other liabilities in excess of other assets-(0.4)%

 

(2,948,713

)

Net Assets-100.0%

 

$

757,033,310

 

 

 

Notes to Schedule of Investments:

 

^ Portfolio securities and other financial instruments for which market quotations are readily available are valued at market value. Market values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, based on quotes or other market information obtained from quotation reporting systems, established market makers or independent pricing services. Investments in mutual funds are valued at the net asset value (“NAV”) as reported on each business day, and under normal circumstances. Exchange-traded funds (“ETFs”) are valued at their current market trading price. The AllianzGI Equity & Convertible Income Fund’s (the “Fund”) investments are valued daily using prices supplied by an independent pricing service or broker/dealer quotations, or by using the last sale or settlement price on the exchange that is the primary market for such securities, or the mean between the last bid and ask quotations. The market value for NASDAQ Global Market and NASDAQ Capital Market securities may also be calculated using the NASDAQ Official Closing Price instead of the last reported sales price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.

 

The Board of Trustees of the Fund (the “Board”) has adopted procedures for valuing portfolio securities and other financial derivative instruments in circumstances where market quotes are not readily available (including in cases where available market quotes 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 and ratify the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Fund’s Valuation Committee.

 

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

 

Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Fund may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange (“NYSE”) is closed.

 

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

 

The prices of certain portfolio securities or financial instruments may be determined at a time prior to the close of regular trading on the NYSE. In considering whether fair value pricing is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time the NAV of the Fund is calculated. With respect to certain foreign securities, the Fund may fair value securities using modeling tools provided by third-party vendors, where appropriate. The Fund has retained a statistical research service to assist in determining the fair value of foreign securities. This service utilizes statistics and programs based on historical performance of markets and other economic data to assist in making fair value estimates. Fair value estimates used by the Fund for foreign securities may differ from the value realized from the sale of those securities and the difference could be material. Fair value pricing may require subjective determinations about the value of a security or other assets, and fair values used to determine the NAV of the Fund may differ from quoted or published prices, or from prices that are used by others, for the same investments. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities or other assets held by the Fund.

 

(a)

Private Placement—Restricted as to resale and may not have a readily available market. Private placement securities include Rule 144A securities. Securities with an aggregate value of $97,869,827, representing 12.9% 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 $97,869,827, representing 12.9% of net assets.

 

 

(c)

In default.

 

 

(d)

Fair-Valued—Security with a value of $2, representing less than 0.05% of net assets.

 

 

(e)

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

 

 

(f)

Level 3 security.

 

 

(g)

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

 

 

(h)

Restricted. The cost of such security is $3,160,750. The value is $2, representing less than 0.05% of net assets.

 

 

(i)

Non-income producing.

 

 

(j)

Exchange traded-Chicago Board Options Exchange.

 

 

(k)

Exchange traded option contracts outstanding at October 31, 2020:

 

 

Options written contracts outstanding at October 31, 2020:

 

Description

 

Exercise Price

 

Expiration
Date

 

Number of
Contracts

 

Notional
Amount

 

Market
Value

 

Premiums
Received

 

Unrealized
Appreciation
(Depreciation)

 

Call options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Abbott Laboratories

 

117.00 USD

 

11/20/20

 

(85

)

$

(8,500

)

$

(5,865

)

$

(6,362

)

$

497

 

Accenture PLC

 

247.50 USD

 

11/20/20

 

(50

)

(5,000

)

(2,079

)

(5,219

)

3,140

 

Activision Blizzard, Inc.

 

92.50 USD

 

11/20/20

 

(175

)

(17,500

)

(2,012

)

(10,525

)

8,513

 

Adobe, Inc.

 

540.00 USD

 

11/20/20

 

(135

)

(13,500

)

(4,050

)

(44,329

)

40,279

 

Advanced Micro Devices, Inc.

 

95.00 USD

 

11/20/20

 

(90

)

(9,000

)

(1,530

)

(9,917

)

8,387

 

Alibaba Group Holding Ltd.

 

355.00 USD

 

11/20/20

 

(90

)

(9,000

)

(17,955

)

(15,965

)

(1,990

)

Alphabet, Inc.

 

1,750.00 USD

 

11/20/20

 

(60

)

(6,000

)

(89,700

)

(66,133

)

(23,567

)

Amazon.com, Inc.

 

3,650.00 USD

 

11/20/20

 

(30

)

(3,000

)

(23,775

)

(39,583

)

15,808

 

American Tower Corp.

 

270.00 USD

 

11/20/20

 

(50

)

(5,000

)

(750

)

(10,352

)

9,602

 

Aon PLC

 

220.00 USD

 

11/20/20

 

(20

)

(2,000

)

(350

)

(2,014

)

1,664

 

Apple, Inc.

 

130.00 USD

 

11/20/20

 

(770

)

(77,000

)

(21,945

)

(20,585

)

(1,360

)

Atlassian Corp. PLC

 

230.00 USD

 

11/20/20

 

(75

)

(7,500

)

(8,438

)

(8,965

)

527

 

Broadcom, Inc.

 

430.00 USD

 

11/20/20

 

(90

)

(9,000

)

(1,350

)

(18,374

)

17,024

 

Caterpillar, Inc.

 

185.00 USD

 

11/20/20

 

(70

)

(7,000

)

(2,870

)

(5,901

)

3,031

 

Costco Wholesale Corp.

 

395.00 USD

 

11/20/20

 

(155

)

(15,500

)

(16,818

)

(19,421

)

2,603

 

Crown Castle International Corp.

 

170.00 USD

 

11/20/20

 

(40

)

(4,000

)

(2,900

)

(2,558

)

(342

)

Deere & Co.

 

260.00 USD

 

11/20/20

 

(80

)

(8,000

)

(5,840

)

(12,877

)

7,037

 

DocuSign, Inc.

 

265.00 USD

 

11/20/20

 

(75

)

(7,500

)

(4,200

)

(12,019

)

7,819

 

Dollar General Corp.

 

230.00 USD

 

11/20/20

 

(90

)

(9,000

)

(5,175

)

(16,855

)

11,680

 

Enphase Energy, Inc.

 

135.00 USD

 

11/20/20

 

(35

)

(3,500

)

(3,570

)

(5,111

)

1,541

 

Facebook, Inc.

 

325.00 USD

 

11/20/20

 

(195

)

(19,500

)

(7,020

)

(39,189

)

32,169

 

FedEx Corp.

 

305.00 USD

 

11/20/20

 

(60

)

(6,000

)

(4,560

)

(6,404

)

1,844

 

Home Depot, Inc.

 

305.00 USD

 

11/20/20

 

(140

)

(14,000

)

(10,360

)

(15,890

)

5,530

 

Honeywell International, Inc.

 

185.00 USD

 

11/20/20

 

(100

)

(10,000

)

(3,800

)

(12,316

)

8,516

 

Lam Research Corp.

 

410.00 USD

 

11/20/20

 

(70

)

(7,000

)

(5,670

)

(26,548

)

20,878

 

Marvell Technology Group Ltd.

 

45.00 USD

 

11/20/20

 

(280

)

(28,000

)

(3,500

)

(8,211

)

4,711

 

Mastercard, Inc.

 

370.00 USD

 

11/20/20

 

(150

)

(15,000

)

(1,350

)

(20,610

)

19,260

 

McDonald’s Corp.

 

250.00 USD

 

11/20/20

 

(70

)

(7,000

)

(1,365

)

(6,647

)

5,282

 

Micron Technology, Inc.

 

65.00 USD

 

11/20/20

 

(255

)

(25,500

)

(892

)

(11,404

)

10,512

 

Netflix, Inc.

 

575.00 USD

 

11/20/20

 

(115

)

(11,500

)

(19,320

)

(46,607

)

27,287

 

Nike, Inc.

 

135.00 USD

 

11/20/20

 

(305

)

(30,500

)

(11,133

)

(9,937

)

(1,196

)

S & P Global, Inc.

 

400.00 USD

 

11/20/20

 

(40

)

(4,000

)

(500

)

(12,863

)

12,363

 

Salesforce.com, Inc.

 

275.00 USD

 

11/20/20

 

(110

)

(11,000

)

(10,285

)

(16,018

)

5,733

 

ServiceNow, Inc.

 

580.00 USD

 

11/20/20

 

(85

)

(8,500

)

(13,388

)

(61,433

)

48,045

 

Starbucks Corp.

 

100.00 USD

 

11/20/20

 

(215

)

(21,500

)

(3,225

)

(8,420

)

5,195

 

Target Corp.

 

190.00 USD

 

11/20/20

 

(100

)

(10,000

)

(2,200

)

(9,796

)

7,596

 

Twilio, Inc.

 

380.00 USD

 

11/20/20

 

(30

)

(3,000

)

(1,290

)

(9,862

)

8,572

 

Union Pacific Corp.

 

230.00 USD

 

11/20/20

 

(80

)

(8,000

)

(720

)

(8,978

)

8,258

 

UnitedHealth Group, Inc.

 

335.00 USD

 

11/20/20

 

(100

)

(10,000

)

(15,950

)

(14,696

)

(1,254

)

Visa, Inc.

 

230.00 USD

 

11/20/20

 

(375

)

(37,500

)

(4,500

)

(44,097

)

39,597

 

Workday, Inc.

 

250.00 USD

 

11/20/20

 

(45

)

(4,500

)

(4,567

)

(6,376

)

1,809

 

Total options written contracts

 

 

 

 

 

 

 

 

 

$

(346,767

)

$

(729,367

)

$

382,600

 

 

(l)                  At October 31, 2020, the cost basis of portfolio securities for federal income tax purposes was $683,405,945. Gross unrealized appreciation was $104,952,973; gross unrealized depreciation was $28,376,895; and net unrealized appreciation was $76,576,078. The difference between book and tax cost was attributable to wash sale loss deferrals.

 

Fair Value Measurements

 

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

 

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

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

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

 

The valuation techniques used by the Fund to measure fair value during the nine months ended October 31, 2020 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.

 

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

 

 

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

 

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund generally use a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund’s valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund’s valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security’s sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available.

 

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

 

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

 

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

 

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

 

A summary of the inputs used at October 31, 2020 in valuing the Fund’s assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):

 

 

 

Level 1 -
Quoted Prices

 

Level 2 -
Other Significant
Observable
Inputs

 

Level 3 -
Significant
Unobservable
Inputs

 

Value at
10/31/20

 

Investments in Securities — Assets

 

 

 

 

 

 

 

 

 

Common Stock

 

$

468,801,245

 

—

 

—

 

$

468,801,245

 

Convertible Bonds & Notes

 

—

 

$

200,837,634

 

—

 

200,837,634

 

Convertible Preferred Stock:

 

 

 

 

 

 

 

 

 

Diversified Financial Services

 

491,258

 

1,832,300

 

—

 

2,323,558

 

Oil, Gas & Consumable Fuels

 

44,743

 

—

 

$

2

 

44,745

 

Telecommunications

 

—

 

2,808,678

 

—

 

2,808,678

 

All Other

 

46,749,377

 

—

 

—

 

46,749,377

 

Corporate Bonds & Notes

 

—

 

77,553

 

—

 

77,553

 

Repurchase Agreements

 

—

 

38,686,000

 

—

 

38,686,000

 

 

 

516,086,623

 

244,242,165

 

2

 

760,328,790

 

Investments in Securities - Liabilities

 

 

 

 

 

 

 

 

 

Options Written:

 

 

 

 

 

 

 

 

 

Market Price

 

(346,767

)

—

 

—

 

(346,767

)

Totals

 

$

515,739,856

 

$

244,242,165

 

$

2

 

$

759,982,023

 

 

Glossary:

 

ADR - American Depositary Receipt

 

REIT - Real Estate Investment Trust