UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22975
AllianzGI Institutional Multi-Series Trust
(Exact name of registrant as specified in charter)
1633 Broadway, New York, New York | 10019 | |
(Address of principal executive offices) | (Zip code) |
Lawrence G. Altadonna
1633 Broadway,
New York, New York 10019
(Name and address of agent for service)
Registrants telephone number, including area code: 212-739-3371
Date of fiscal year end: September 30, 2015
(Registrant changed its fiscal year end from November 30)
Date of reporting period: September 30, 2015
Item 1. Report to Shareholders
AllianzGI Institutional Multi-Series Trust
Annual Report
September 30, 2015
Effective September 30, 2015, the Trusts fiscal year end changed from November 30th to September 30th.
2 - 3 | ||||
4 | ||||
5 - 8 | ||||
9 | ||||
10 | ||||
11 | ||||
12 | ||||
13 - 21 | ||||
22 | ||||
Changes to the Board of Trustees/ Federal Income Tax Information |
23 | |||
24-25 | ||||
26 | ||||
27 |
AllianzGI Global Small-Cap Opportunities Portfolio
(unaudited)
For the period of October 1, 2014 through September 30, 2015, as provided by Mark Roemer, Portfolio Manager.
Fund Insights
Average Annual Return for the period ended September 30, 2015
1 Year | Since Inception | |||||||||
AllianzGI Global Small-Cap Opportunities Portfolio | 0.51% | -2.40% | ||||||||
MSCI All Country World Small-Cap Index | -3.28% | -6.93% |
The Portfolio began operations on 7/23/14. Benchmark return comparisons began on the portfolio inception date. Lipper performance comparisons began on 7/31/14.
The MSCI All Country World Small-Cap Index captures small cap representation across 23 developed market and 23 emerging market countries. With 6,108 constituents, the index covers about 14% of the free float-adjust market capitalization in each country (as of September 30, 2015). Index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an index.
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns do not reflect deduction of taxes that a shareholder would pay on portfolio distributions or redemption of portfolio shares. Total return performance assumes that all dividends and capital gain distributions were reinvested on the payable date. The Portfolios gross expense ratio is 3.36%. This ratio does not include an expense reduction, contractually agreed through March 31, 2016. The Portfolios expense ratio net of this reduction is 1.20%. Expense ratio information is as of the Portfolios current PPM dated March 30, 2015, as supplemented to date.
2 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
(unaudited) (continued)
Country Allocation (as of September 30, 2015) |
|
Cumulative Returns Through September 30, 2015
| ||||||
United States |
52.1% |
| ||||||
Japan |
8.8% | |||||||
United Kingdom |
5.7% | |||||||
Australia |
4.6% | |||||||
Taiwan |
2.6% | |||||||
Switzerland |
2.6% | |||||||
China |
2.5% | |||||||
Korea (Republic of) |
2.4% | |||||||
Other |
15.8% | |||||||
Cash & Equivalents Net |
2.9% | |||||||
Shareholder Expense Example
|
Actual Performance
| ||||
Beginning Account Value (4/1/15)
|
$
|
1,000.00
|
| ||
Ending Account Value (9/30/15)
|
$
|
939.40
|
| ||
Expenses Paid During Period
|
$
|
5.88
|
| ||
Hypothetical Performance
| |||||
(5% return before expenses) | |||||
Beginning Account Value (4/1/15)
|
$
|
1,000.00
|
| ||
Ending Account Value (9/30/15)
|
$
|
1,019.00
|
| ||
Expenses Paid During Period
|
$
|
6.12
|
|
Expenses (net of reimbursement, if any) are equal to the annualized expense ratio (1.21%), multiplied by the average account value over the period, multiplied by 183/365.
3 | Annual Report / September 30, 2015 |
Important Information (unaudited)
AllianzGI Institutional Multi-Series Trust
Effective September 30, 2015, the Trusts fiscal year end changed from November 30th to September 30th.
As of September 30, 2015, AllianzGI Institutional Multi-Series Trust (the Trust) consisted of one investment series, AllianzGI Global Small-Cap Opportunities Portfolio (Portfolio). The Portfolio currently offers one share class.
The Cumulative Returns chart for the Portfolio assumes the initial investment was made on the first day of the Portfolios initial fiscal year. Results assume that all dividends and capital gain distributions, if any were reinvested. They do not take into account the effect of taxes. The benchmark cumulative return began on the last day of the month of the Portfolios inception date.
The following disclosure provides important information regarding the Portfolios Shareholder Expense Example, which appears on the Portfolio Summary page in this Annual report. Please refer to this information when reviewing the Shareholder Expense Example for the Portfolio.
Shareholder Expense Example
Shareholders incur two types of costs: (1) transaction costs; and (2) ongoing costs, including investment management fees and other Portfolio expenses. The Shareholder Expense Example is intended to help shareholders understand ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Shareholder Expense Example is based on $1,000.00 invested at the beginning and held for the entire period April 1, 2015 through September 30, 2015.
Actual Expenses
The information in the table for Actual Performance provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the row entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table for Hypothetical Performance (5% return before expenses) provides information about hypothetical account values and hypothetical expenses based on the Portfolios actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolios actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information for Hypothetical Performance (5% return before expenses) is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Proxy Voting
The Trusts Investment Manager and Sub-Adviser have adopted written proxy voting policies and procedures (Proxy Policy) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940. The Proxy Policy has been adopted by the Trust as the policies and procedures that the Sub-Adviser will use when voting proxies on behalf of the Portfolio. Copies of the written Proxy Policy and the factors that the Sub-Adviser may consider in determining how to vote proxies for the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling 1-800-498-5413, and on the Securities and Exchange Commissions (SEC) website at http://www.sec.gov.
Form N-Q
The Trust files its complete schedule of the portfolio holdings with the SEC on Form N-Q for the first and third quarters of each fiscal year, which are available on the SECs website at http://www.sec.gov. A copy of the Trusts Form N-Q is available without charge, upon request, by calling 1-800-498-5413. In addition, the Trusts Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
4 | Annual Report / September 30, 2015 |
September 30, 2015
AllianzGI Global Small-Cap Opportunities Portfolio
Shares | Value | |||||||
|
||||||||
COMMON STOCK - 97.1% |
||||||||
Australia - 4.6% |
||||||||
Austal Ltd. |
18,300 | $ | 29,040 | |||||
Blackmores Ltd. |
300 | 30,841 | ||||||
Echo Entertainment Group Ltd. |
20,473 | 70,054 | ||||||
Qantas Airways Ltd. (c) |
34,954 | 91,767 | ||||||
|
|
|||||||
|
221,702
|
| ||||||
|
|
|||||||
Belgium - 0.3% |
||||||||
Gimv NV |
350 |
|
15,959
|
| ||||
|
|
|||||||
Canada - 1.3% |
||||||||
Cascades, Inc. |
4,972 | 32,079 | ||||||
Just Energy Group, Inc. |
4,909 | 30,237 | ||||||
|
|
|||||||
|
62,316
|
| ||||||
|
|
|||||||
China - 2.5% |
||||||||
Bank of Chongqing Co., Ltd., Class H |
42,500 | 29,387 | ||||||
Chongqing Rural Commercial Bank Co., Ltd., Class H |
36,000 | 20,608 | ||||||
Sohu.com, Inc. (c) |
835 | 34,486 | ||||||
Yuzhou Properties Co., Ltd. |
159,000 | 37,036 | ||||||
|
|
|||||||
|
121,517
|
| ||||||
|
|
|||||||
Denmark - 1.1% |
||||||||
SimCorp A/S (b) |
587 | 29,565 | ||||||
Spar Nord Bank A/S |
2,204 | 25,140 | ||||||
|
|
|||||||
|
54,705
|
| ||||||
|
|
|||||||
France - 2.3% |
||||||||
Altran Technologies S.A. |
3,214 | 37,368 | ||||||
Boiron S.A. |
276 | 26,615 | ||||||
Ipsen S.A. |
546 | 33,870 | ||||||
Synergie S.A. |
592 | 15,460 | ||||||
|
|
|||||||
|
113,313
|
| ||||||
|
|
|||||||
Germany - 1.7% |
||||||||
Aareal Bank AG (b) |
2,364 |
|
84,080
|
| ||||
|
|
|||||||
Hong Kong - 1.8% |
||||||||
Champion REIT |
125,000 | 62,446 | ||||||
Shun Tak Holdings Ltd. |
64,000 | 24,364 | ||||||
|
|
|||||||
|
86,810
|
| ||||||
|
|
|||||||
India - 1.6% |
||||||||
WNS Holdings Ltd. ADR (c) |
1,550 | 43,322 | ||||||
Wockhardt Ltd. |
1,407 | 32,923 | ||||||
|
|
|||||||
|
76,245
|
| ||||||
|
|
|||||||
Israel - 0.5% |
||||||||
Orbotech Ltd. (c) |
1,505 |
|
23,252
|
| ||||
|
|
|||||||
Italy - 0.4% |
||||||||
ASTM SpA |
1,385 |
|
18,402
|
| ||||
|
|
|||||||
Japan - 8.8% |
||||||||
Aisan Industry Co., Ltd. |
1,900 | 17,434 | ||||||
Alps Electric Co., Ltd. |
3,600 | 101,664 | ||||||
Ashikaga Holdings Co., Ltd. |
8,000 | 33,421 | ||||||
Chiyoda Integre Co., Ltd. |
900 | 19,272 | ||||||
Fields Corp. |
1,800 | 24,461 | ||||||
Gunze Ltd. |
6,000 | 18,150 | ||||||
Kuroda Electric Co., Ltd. |
1,400 | 25,985 | ||||||
Nichiha Corp. |
1,500 | 20,729 | ||||||
Nippon Synthetic Chemical Industry Co., Ltd. |
4,000 | 25,018 | ||||||
Ryobi Ltd. |
8,000 | 29,927 | ||||||
T-Gaia Corp. |
4,400 | 68,556 | ||||||
Towa Pharmaceutical Co., Ltd. |
300 | 19,255 | ||||||
Yorozu Corp. |
1,100 | 22,513 | ||||||
|
|
|||||||
|
426,385
|
| ||||||
|
|
5 | Annual Report / September 30, 2015 |
Schedule of Investments
September 30, 2015
AllianzGI Global Small-Cap Opportunities Portfolio
Shares
|
Value
|
|||||||
|
||||||||
Korea (Republic of) - 2.4% |
||||||||
BNK Financial Group, Inc. |
1,648 | $ | 19,108 | |||||
KB Insurance Co., Ltd. |
768 | 15,321 | ||||||
Kwang Dong Pharmaceutical Co., Ltd. |
2,104 | 23,069 | ||||||
OCI Materials Co., Ltd. |
445 | 34,477 | ||||||
Tongyang Life Insurance Co., Ltd. |
2,157 | 25,932 | ||||||
|
|
|||||||
|
117,907
|
| ||||||
|
|
|||||||
Mexico - 0.3% |
||||||||
Controladora Vuela Cia de Aviacion S.A.B. de C.V., Class A (c) |
9,100 |
|
13,581
|
| ||||
|
|
|||||||
Netherlands - 0.7% |
||||||||
Accell Group |
1,655 |
|
35,377
|
| ||||
|
|
|||||||
New Zealand - 0.7% |
||||||||
Kiwi Property Group Ltd. |
41,965 |
|
34,593
|
| ||||
|
|
|||||||
Poland - 1.8% |
||||||||
Kernel Holding S.A. |
7,460 |
|
88,545
|
| ||||
|
|
|||||||
South Africa - 0.9% |
||||||||
Astral Foods Ltd. |
2,336 | 29,373 | ||||||
Cashbuild Ltd. |
705 | 15,516 | ||||||
|
|
|||||||
|
44,889
|
| ||||||
|
|
|||||||
Switzerland - 2.6% |
||||||||
BKW AG |
812 | 30,994 | ||||||
Cembra Money Bank AG (b)(c) |
250 | 14,784 | ||||||
Swiss Life Holding AG (c) |
360 | 80,304 | ||||||
|
|
|||||||
|
126,082
|
| ||||||
|
|
|||||||
Taiwan - 2.6% |
||||||||
Farglory Land Development Co., Ltd. |
36,000 | 38,094 | ||||||
Grand Pacific Petrochemical |
51,000 | 23,361 | ||||||
Huaku Development Co., Ltd. |
14,000 | 24,380 | ||||||
Pou Chen Corp. |
28,000 | 42,121 | ||||||
|
|
|||||||
|
127,956
|
| ||||||
|
|
|||||||
Thailand - 0.4% |
||||||||
Tipco Asphalt PCL |
21,300 |
|
17,331
|
| ||||
|
|
|||||||
United Kingdom - 5.7% |
||||||||
Clinigen Group PLC (c) |
4,026 | 41,763 | ||||||
Derwent London PLC REIT |
1,164 | 64,161 | ||||||
JD Sports Fashion PLC |
1,323 | 19,113 | ||||||
Micro Focus International PLC |
1,250 | 22,774 | ||||||
Shaftesbury PLC REIT |
4,239 | 58,857 | ||||||
UNITE Group PLC |
2,000 | 19,774 | ||||||
Workspace Group PLC REIT |
3,518 | 49,966 | ||||||
|
|
|||||||
|
276,408
|
| ||||||
|
|
|||||||
United States - 52.1% |
||||||||
Advanced Energy Industries, Inc. (c) |
3,440 | 90,472 | ||||||
Alaska Air Group, Inc. |
400 | 31,780 | ||||||
Allscripts Healthcare Solutions, Inc. (c) |
1,270 | 15,748 | ||||||
American Eagle Outfitters, Inc. |
1,700 | 26,571 | ||||||
Amsurg Corp. (c) |
1,205 | 93,641 | ||||||
Ares Commercial Real Estate Corp. REIT |
3,160 | 37,888 | ||||||
Armour Residential REIT, Inc. REIT |
625 | 12,525 | ||||||
Beneficial Bancorp, Inc. (c) |
3,095 | 41,040 | ||||||
Bob Evans Farms, Inc. |
440 | 19,074 | ||||||
CBIZ, Inc. (c) |
3,435 | 33,732 | ||||||
Express, Inc. (c) |
5,210 | 93,103 | ||||||
First Bancorp |
1,110 | 18,870 | ||||||
Flagstar Bancorp, Inc. (c) |
1,320 | 27,139 | ||||||
Foot Locker, Inc. |
600 | 43,182 | ||||||
Fortinet, Inc. (c) |
2,280 | 96,854 | ||||||
Group 1 Automotive, Inc. |
495 | 42,149 | ||||||
Hanover Insurance Group, Inc. |
400 | 31,080 | ||||||
HD Supply Holdings, Inc. (c) |
790 | 22,610 | ||||||
Health Net, Inc. (c) |
1,460 | 87,921 |
6 | Annual Report / September 30, 2015 |
Schedule of Investments
September 30, 2015
AllianzGI Global Small-Cap Opportunities Portfolio
Shares
|
Value
|
|||||||
|
||||||||
HomeStreet, Inc. (c) |
3,620 | $ | 83,622 | |||||
Horizon Pharma PLC (c) |
2,380 | 47,172 | ||||||
JetBlue Airways Corp. (c) |
4,425 | 114,032 | ||||||
Knoll, Inc. |
1,350 | 29,673 | ||||||
Leggett & Platt, Inc. |
900 | 37,125 | ||||||
LifePoint Hospitals, Inc. (c) |
1,220 | 86,498 | ||||||
Matrix Service Co. (c) |
1,115 | 25,054 | ||||||
MEDNAX, Inc. (c) |
305 | 23,421 | ||||||
Molina Healthcare, Inc. (c) |
550 | 37,867 | ||||||
Oritani Financial Corp. |
2,875 | 44,907 | ||||||
Owens Corning |
2,025 | 84,868 | ||||||
Oxford Industries, Inc. |
770 | 56,888 | ||||||
Palo Alto Networks, Inc. (c) |
200 | 34,400 | ||||||
Panera Bread Co., Class A (c) |
100 | 19,341 | ||||||
Premier, Inc., Class A (c) |
805 | 27,668 | ||||||
Prestige Brands Holdings, Inc. (c) |
2,050 | 92,578 | ||||||
ServiceMaster Global Holdings, Inc. (c) |
925 | 31,034 | ||||||
Smith & Wesson Holding Corp. (c) |
1,450 | 24,462 | ||||||
Solera Holdings, Inc. |
1,235 | 66,690 | ||||||
Spirit AeroSystems Holdings, Inc., Class A (c) |
2,185 | 105,623 | ||||||
Tableau Software, Inc., Class A (c) |
835 | 66,616 | ||||||
Telephone & Data Systems, Inc. |
3,130 | 78,125 | ||||||
Texas Roadhouse, Inc. |
500 | 18,600 | ||||||
Total System Services, Inc. |
945 | 42,931 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (c) |
590 | 96,376 | ||||||
USANA Health Sciences, Inc. (c) |
395 | 52,942 | ||||||
Vail Resorts, Inc. |
905 | 94,735 | ||||||
Vantiv, Inc., Class A (c) |
1,830 | 82,204 | ||||||
VCA, Inc. (c) |
695 | 36,592 | ||||||
Vocera Communications, Inc. (c) |
1,920 | 21,907 | ||||||
|
|
|||||||
2,529,330 | ||||||||
|
|
|||||||
Total Common Stock (cost-$4,664,607) |
4,716,685 | |||||||
|
|
|||||||
Principal Amount (000s) |
||||||||
SHORT-TERM INVESTMENTS - 0.2% |
||||||||
Certificate of Deposit - 0.2% |
||||||||
Citibank Argentina, |
$9 | 9,273 | ||||||
|
|
|||||||
Total Investments (cost-$4,673,880) (a)-97.3% |
4,725,958 | |||||||
Other assets less liabilities-2.7% |
|
130,443
|
| |||||
|
|
|||||||
Net Assets-100.0% |
$4,856,401 | |||||||
|
|
Notes to Schedule of Investments:
(a) | Securities with an aggregate value of $1,882,783, representing 38.8% of net assets, were valued utilizing modeling tools provided by a third-party vendor. See Note 1(a) and Note 1(b) in the Notes to Financial Statements. |
(b) | Affiliated security. |
(c) | Non-income producing. |
Glossary:
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
7 | Annual Report / September 30, 2015 |
Schedule of Investments
September 30, 2015
AllianzGI Global Small-Cap Opportunities Portfolio
The industry classification of portfolio holdings and other assets less liabilities shown as a percentage of net assets were as follows:
Specialty Retail |
8.3% | |||
Health Care Providers & Services |
8.1% | |||
Real Estate Investment Trust |
6.6% | |||
Software |
5.9% | |||
Thrifts & Mortgage Finance |
5.7% | |||
Pharmaceuticals |
5.7% | |||
Airlines |
5.2% | |||
Hotels, Restaurants & Leisure |
4.6% | |||
IT Services |
4.3% | |||
Insurance |
3.1% | |||
Banks |
3.0% | |||
Electronic Equipment, Instruments & Components |
2.6% | |||
Real Estate Management & Development |
2.5% | |||
Food Products |
2.4% | |||
Textiles, Apparel & Luxury Goods |
2.4% | |||
Aerospace & Defense |
2.2% | |||
Building Products |
2.1% | |||
Semiconductors & Semiconductor Equipment |
1.9% | |||
Leisure Equipment & Products |
1.7% | |||
Personal Products |
1.7% | |||
Chemicals |
1.7% | |||
Wireless Telecommunication Services |
1.6% | |||
Machinery |
1.2% | |||
Professional Services |
1.0% | |||
Trading Companies & Distributors |
1.0% | |||
Life Sciences Tools & Services |
0.9% | |||
Auto Components |
0.9% | |||
Household Durables |
0.8% | |||
Health Care Technology |
0.7% | |||
Internet Software & Services |
0.7% | |||
Communications Equipment |
0.7% | |||
Containers & Packaging |
0.7% | |||
Diversified Consumer Services |
0.6% | |||
Electric Utilities |
0.6% | |||
Multi-Utilities |
0.6% | |||
Commercial Services & Supplies |
0.6% | |||
Energy Equipment & Services |
0.5% | |||
Industrial Conglomerates |
0.5% | |||
Electrical Equipment |
0.4% | |||
Transportation Infrastructure |
0.4% | |||
Construction Materials |
0.4% | |||
Capital Markets |
0.3% | |||
Consumer Finance |
0.3% | |||
Short-Term Investments |
0.2% | |||
Other assets less liabilities |
2.7% | |||
|
|
|||
100.0% | ||||
|
|
See accompanying Notes to Financial Statements.
8 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Statement of Assets and Liabilities
September 30, 2015
Assets: |
||||
Investments, at value |
$4,597,529 | |||
|
|
|
||
Investments in Affiliates, at value |
128,429 | |||
|
|
|
||
Cash |
36,115 | |||
|
|
|
||
Foreign currency, at value |
79,653 | |||
|
|
|
||
Receivable from Investment Manager |
55,149 | |||
|
|
|
||
Receivable for investments sold |
34,639 | |||
|
|
|
||
Dividends and interest receivable (net of foreign withholding taxes) |
7,990 | |||
|
|
|
||
Tax reclaims receivable |
183 | |||
|
|
|
||
Investments in Affiliated Funds - Trustee Deferred Compensation Plan (see Note 4) |
64 | |||
|
|
|
||
Prepaid expenses and other assets |
4,169 | |||
|
|
|
||
Total Assets |
4,943,920 | |||
|
|
|
||
Liabilities: |
||||
Payable for investments purchased |
17,179 | |||
|
|
|
||
Trustees Deferred Compensation Plan payable (see Note 4) |
64 | |||
|
|
|
||
Accrued expenses and other liabilities |
70,276 | |||
|
|
|
||
Total Liabilities |
87,519 | |||
|
|
|
||
Net Assets |
$4,856,401 | |||
|
|
|
||
Net Assets Consist of: Paid-in-capital |
$5,014,362 | |||
|
|
|
||
Undistributed net investment income |
29,877 | |||
|
|
|
||
Accumulated net realized loss |
(235,939) | |||
|
|
|
||
Net unrealized appreciation |
48,101 | |||
|
|
|
||
Net Assets |
$4,856,401 | |||
|
|
|
||
Cost of Investments |
$4,548,659 | |||
|
|
|
||
Cost of Investments in Affiliates |
$125,221 | |||
|
|
|
||
Cost of Foreign Currency |
$83,570 | |||
|
|
|
||
Shares Issued and Outstanding: |
334,321 | |||
|
|
|
||
Net Asset Value and Redemption Price |
$14.53 | |||
|
|
|
* | Net asset value and redemption price per share may not recalculate exactly due to rounding. |
See accompanying Notes to Financial Statements | 9 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
|
|
|||||||
Period from 12/1/14 | Period from 7/23/14 (2) | |||||||
through 9/30/15(1) | through 11/30/14 | |||||||
|
|
|||||||
Investment Income: |
||||||||
Dividends, net of foreign withholding taxes* |
$90,004 | $35,116 | ||||||
|
|
|
|
|
||||
Dividends from investments in Affiliates,net of foreign withholding taxes * |
681 | 976 | ||||||
|
|
|
|
|
||||
Total Investment Income |
90,685 | 36,092 | ||||||
|
|
|
|
|
||||
Expenses: |
||||||||
Investment management |
38,321 | 15,633 | ||||||
|
|
|
|
|
||||
Legal |
102,524 | 3,562 | ||||||
|
|
|
|
|
||||
Custodian and accounting agent |
94,113 | 19,926 | ||||||
|
|
|
|
|
||||
Audit and tax services |
31,902 | 31,906 | ||||||
|
|
|
|
|
||||
Offering |
25,753 | 14,247 | ||||||
|
|
|
|
|
||||
Shareholder communications |
14,206 | 1,959 | ||||||
Transfer agent |
2,536 | 2,350 | ||||||
Trustees |
468 | 213 | ||||||
Insurance |
106 | | ||||||
Excise tax |
61 | | ||||||
Organizational |
| 60,000 | ||||||
Proxy |
28 | | ||||||
Miscellaneous |
2,789 | 3,340 | ||||||
Total Expenses |
312,807 | 153,136 | ||||||
|
|
|
|
|
||||
Less: Reimbursement from Investment Manager |
(260,824) | (132,292) | ||||||
|
|
|
|
|
||||
Net Expenses |
51,983 | 20,844 | ||||||
|
|
|
|
|
||||
Net Investment Income |
38,702 | 15,248 | ||||||
Realized and Change in Unrealized Gain (Loss): |
| |||||||
Net realized loss on: |
(103,734) | (96,797) | ||||||
Investments in Affiliates |
(31,399) | (4,905) | ||||||
Foreign currency transactions |
(6,171) | (2,644) | ||||||
Net change in unrealized |
38,463 | 10,407 | ||||||
Investments in Affiliates |
24,148 | (20,940) | ||||||
Foreign currency transactions |
(2,993) | (984) | ||||||
Net realized and change in unrealized loss |
(81,686) | (115,863) | ||||||
Net Decrease in Net Assets Resulting from Investment Operations |
$(42,984) | $(100,615) | ||||||
*Foreign withholding taxes |
$5,740 | $3,272 |
(1) | Fiscal year end changed from November 30th to September 30th. |
(2) | Commencement of operations. |
See accompanying Notes to Financial Statements |
10 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities
Statements of Changes in Net Assets
| ||||||||||
Period from | ||||||||||
Period from 12/1/14 | 7/23/14(2) through | |||||||||
through 9/30/15(1) | 11/30/14 | |||||||||
|
| |||||||||
(Decrease) in Net Assets from: |
||||||||||
Investment Operations: |
||||||||||
Net investment income |
$38,702 | $15,248 | ||||||||
|
|
|
|
|
||||||
Net realized loss |
(141,304) | (104,346) | ||||||||
|
|
|
|
|
||||||
Net change in unrealized appreciation/depreciation |
59,618 | (11,517) | ||||||||
|
|
|
|
|
||||||
Net decrease in net assets resulting from investment operations |
(42,984) | (100,615) | ||||||||
|
|
|
|
|
||||||
Dividends to Shareholders from Net investment income: |
(14,423) | | ||||||||
|
|
|
|
|
||||||
Fund Share Transactions: |
||||||||||
Issued in reinvestment of dividends |
14,423 | | ||||||||
|
|
|
|
|
||||||
Total decrease in net assets |
(42,984) | (100,615) | ||||||||
|
|
|
|
|
||||||
Net Assets: |
||||||||||
Beginning of period |
4,899,385 | 5,000,000 | ||||||||
|
|
|
|
|
||||||
End of period* |
$4,856,401 | $4,899,385 | ||||||||
|
|
|
|
|
||||||
*Including undistributed net investment income of: |
$29,877 | $13,155 | ||||||||
|
|
|
|
|
||||||
Shares issued in reinvestment of dividends |
988 | | ||||||||
|
|
|
|
|
(1) | Fiscal year end changed from November 30th to September 30th. |
(2) | Commencement of operations. |
See accompanying Notes to Financial Statements | 11 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
For a share outstanding throughout each period:
| ||||
Period from | ||||
Period from | 7/23/14(2) | |||
12/1/14 through | through | |||
9/30/15(1) | 11/30/14 | |||
| ||||
Net asset value, beginning of period |
$14.70 | $15.00 | ||
| ||||
Investment Operations: |
||||
Net investment income(a) |
0.12 | 0.05 | ||
| ||||
Net realized and change in unrealized loss |
(0.25) | (0.35) | ||
| ||||
Total from investment operations |
(0.13) | (0.30) | ||
| ||||
Dividends to shareholders from net investment income |
(0.04) | - | ||
| ||||
Net asset value, end of period |
$14.53 | $14.70 | ||
| ||||
Total Return(b) |
(0.86)% | (2.00)% | ||
| ||||
RATIOS/SUPPLEMENTAL DATA: |
||||
Net assets, end of period (000s) |
$4,856 | $4,899 | ||
| ||||
Ratio of expenses to average net assets with fee reimbursement(c)(d) |
1.22% | 1.20% | ||
| ||||
Ratio of expenses to average net assets without fee reimbursement(c)(d) |
7.06% | 4.88% | ||
| ||||
Ratio of net investment income to average net assets(c)(d) |
0.91% | 0.88% | ||
| ||||
Portfolio turnover rate |
152% | 56% | ||
|
(1) | Fiscal year end changed from November 30th to September 30th. |
(2) | Commencement of operations. |
(a) | Calculated on average shares outstanding. |
(b) | Total return is calculated assuming a purchase of a share on the first day of the period and a sale of a share on the last day of |
each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested. Total return includes the effect of fee waivers and reimbursements. Total return may reflect adjustments to conform to U.S. GAAP. Total return for a period of less than one year is not annualized.
(c) | Annualized. |
(d) | Certain expenses incurred were not annualized. |
See accompanying Notes to Financial Statements | 12 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
September 30, 2015
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
AllianzGI Institutional Multi-Series Trust (the Trust) was organized on June 3, 2014, as an open-end registered investment company organized as a Massachusetts business trust, and accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 946 Financial Services-Investment Companies. As of September 30, 2015, the Trust consisted of one investment series, AllianzGI Small-Cap Opportunities Portfolio (the Portfolio). Allianz Global Investors Fund Management LLC (AGIFM or the Investment Manager) serves as the Portfolios investment manager and Allianz Global Investors U.S. LLC (AllianzGI U.S. or the Sub-Adviser) serves as the Portfolios sub-adviser. AGIFM and AllianzGI U.S. are indirect, wholly-owned subsidiaries of Allianz Asset Management of America L.P. (AAM). AAM is an indirect, wholly-owned subsidiary of Allianz SE, a publicly traded European insurance and financial services company. Shares of the Portfolio have not been registered for public sale and are currently offered and sold on a private placement basis in accordance with Rule 506(c) of Regulation D under the Securities Act of 1933, as amended. Currently, the Trust has authorized one class of shares.
The Portfolio sold and issued shares of beneficial interest to Allianz Fund Investments, Inc. (AFI), an indirect wholly-owned subsidiary of Allianz SE, during the periods ended September 30, 2015 and November 30, 2014, as indicated:
Date | Shares | Amount | ||||||||
|
||||||||||
7/23/14 |
333,333 | $ | 5,000,000 | |||||||
|
The investment objective of AllianzGI Global Small-Cap Opportunities is to seek long-term capital appreciation. There can be no assurance that the Portfolio will meet its stated objective.
The preparation of the Portfolios financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) requires the Portfolios management to make estimates and assumptions that affect the reported amounts and disclosures in the Portfolios financial statements. Actual results could differ from those estimates.
In the normal course of business, the Portfolio enters into contracts that contain a variety of representations that provide general indemnifications. The Portfolios maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred.
In June 2014, the FASB issued an Accounting Standards Update (ASU) 2014-11 that expands secured borrowing accounting for certain repurchase agreements. The ASU also sets forth additional disclosure requirements for certain transactions accounted for as sales, in order to provide financial statement users with information to compare to similar transactions accounted for as secured borrowings. ASU 2014-11 became effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 did not have an impact on the Portfolios financial statements.
In May 2015, the FASB issued ASU 2015-7 which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured at net asset value per share (NAV) (or its equivalent) using the practical expedient. The ASU 2015-07 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the Portfolios financial statements.
The following is a summary of significant accounting policies consistently followed by the Portfolio:
(a) Valuation of Investments. Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of official closing prices, last reported sales prices, or if no sales or closing prices are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services. The Portfolios 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
13 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
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 (the Board) has adopted procedures for valuing portfolio securities and other financial instruments in circumstances where market quotations 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 and the Sub-Adviser. The Trusts Valuation Committee was established by the Board to oversee the implementation of the Portfolios valuation methods and to make fair value determinations on behalf of the Board, as instructed by the Board. The Sub-Adviser monitors the continued appropriateness of methods applied and identifies to the Investment Manager circumstances and events that may require fair valuation. The Investment Manager, in turn, determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Investment Manager (in consultation with the Sub-Adviser) determines that a valuation method may no longer be appropriate, another valuation method may be selected or the 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 Valuation Committee.
Short-term debt instruments maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing premium or discount based on their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.
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 Portfolio 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 Portfolio to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material to the Portfolios financial statements. The NAV of the Portfolio 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.
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. When fair-valuing the securities, the Portfolio 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 Portfolio is calculated. With respect to certain foreign securities, the Portfolio may fair-value securities using modeling tools provided by third-party vendors. The Portfolio 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 Portfolio for foreign securities may differ from the value realized from the sale of those securities and the difference could be material to the financial statements. 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 Portfolio 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 Portfolio.
(b) 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 Portfolio 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 |
14 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
● | Level 3 valuations based on significant unobservable inputs (including the Sub-Advisers or Valuation Committees own assumptions and securities whose price was determined by using a single brokers quote) |
The valuation techniques used by the Portfolio to measure fair value during the period ended September 30, 2015 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.
The Portfolios policy is to recognize transfers between levels at the end of the reporting period. An investment assets or liabilitys 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. Investments categorized as Level 1 or 2 as of period end may have been transferred between Levels 1 and 2 since the prior period due to changes in the valuation method utilized in valuing the investments.
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 Portfolio generally uses to evaluate how to classify each major category of assets and liabilities within Level 2 and Level 3, in accordance with U.S. GAAP.
Equity Securities (Common and Preferred Stock) Equity securities traded in inactive markets and certain foreign equity securities 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.
A summary of the inputs used at September 30, 2015 in valuing the Portfolios assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):
Level 2 - | Level 3 - | |||||||||||||||
Other Significant | Significant | |||||||||||||||
Level 1 - | Observable | Unobservable | Value at | |||||||||||||
Quoted Prices | Inputs | Inputs | 9/30/15 | |||||||||||||
|
||||||||||||||||
Investments in Securities - Assets |
||||||||||||||||
Common Stock: |
||||||||||||||||
Australia |
| $ | 221,702 | | $ | 221,702 | ||||||||||
Belgium |
| 15,959 | | 15,959 | ||||||||||||
China |
$ | 34,486 | 87,031 | | 121,517 | |||||||||||
Denmark |
| 54,705 | | 54,705 | ||||||||||||
France |
26,615 | 86,698 | | 113,313 | ||||||||||||
Germany |
| 84,080 | | 84,080 | ||||||||||||
Hong Kong |
| 86,810 | | 86,810 | ||||||||||||
India |
43,322 | 32,923 | | 76,245 | ||||||||||||
Italy |
| 18,402 | | 18,402 | ||||||||||||
Japan |
| 426,385 | | 426,385 | ||||||||||||
Korea (Republic of) |
| 117,907 | | 117,907 | ||||||||||||
New Zealand |
| 34,593 | | 34,593 | ||||||||||||
Poland |
| 88,545 | | 88,545 | ||||||||||||
South Africa |
15,516 | 29,373 | | 44,889 | ||||||||||||
Switzerland |
30,994 | 95,088 | | 126,082 | ||||||||||||
Taiwan |
| 127,956 | | 127,956 | ||||||||||||
Thailand |
| 17,331 | | 17,331 | ||||||||||||
United Kingdom |
19,113 | 257,295 | | 276,408 | ||||||||||||
All Other |
2,663,856 | | | 2,663,856 | ||||||||||||
Short-Term Investments |
| 9,273 | | 9,273 | ||||||||||||
|
||||||||||||||||
Totals |
$ | 2,833,902 | $ | 1,892,056 | | $ | 4,725,958 | |||||||||
|
At September 30, 2015, the Portfolio had transfers of $49,966 from Level 1 to Level 2. This transfer was a result of securities trading outside the U.S. whose values were not adjusted by the application of a modeling tool at November 30, 2014, which was applied on September 30, 2015.
15 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
(c) Investment Transactions and Investment Income. Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on an identified cost basis. Interest income is recorded on an accrual basis. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, and then are recorded as soon after the ex-dividend date as the Portfolio, using reasonable diligence, become aware of such dividends. Dividend and interest income on the Statement of Operations are shown net of any foreign taxes withheld on income from foreign securities. Payments received from real estate investment trust securities may be comprised of dividends, realized gains and return of capital. The payment may initially be recorded as dividend income and may subsequently be reclassified as realized gains and/or return of capital upon receipt of information from the issuer. Payments considered return of capital reduce the cost basis of the respective security.
(d) Federal Income Taxes. The Portfolio intends to distribute all of their taxable income and to comply with the other requirements of Subchapter M of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required. The Portfolio may be subject to excise tax based on distributions to shareholders.
Accounting for uncertainty in income taxes establishes for all entities, including pass-through entities such as the Portfolio, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. In accordance with provisions set forth under U.S. GAAP, the Investment Manager has reviewed the Portfolios tax positions for all open tax years. As of September 30, 2015, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken. The Portfolios federal income tax returns since inception remain subject to examination by the Internal Revenue Service.
(e) Dividends and Distributions to Shareholders. The Portfolio declares dividends and distributions from net investment income and net realized capital gains, if any, annually. The Portfolio records dividends and distributions to their respective shareholders on the ex-dividend date. The amount of dividends from net investment income and distributions from net realized capital gains is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These book-tax differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as dividends and/or distributions to shareholders from return of capital.
(f) Foreign Currency Translation. The Portfolios accounting records are maintained in U.S. dollars as follows: (1) the foreign currency market values of investments and other assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rate at the end of the period; and (2) purchases and sales, income and expenses are translated at the prevailing exchange rate on the respective dates of such transactions. The resulting net foreign currency gain (loss) is included in the Portfolios Statement of Operations.
The Portfolio does not generally isolate that portion of the results of operations arising as a result of changes in foreign currency exchange rates from the fluctuations arising from changes in the market prices of securities. Accordingly, such foreign currency gain (loss) is included in net realized and unrealized gain (loss) on investments. However, the Portfolio does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations pursuant to U.S. federal income tax regulations; such amount is categorized as foreign currency gain (loss) for both financial reporting and income tax reporting purposes.
(g) Repurchase Agreements. The Portfolio is a party to Master Repurchase Agreements (Master Repo Agreements) with select counterparties. The Master Repo Agreements maintain provisions for initiation, income payments, events of default, and maintenance of collateral.
The Portfolio enters into transactions, under the Master Repo Agreements, with its custodian bank or securities brokerage firms whereby it purchases securities under agreements to resell such securities at an agreed upon price and date (repurchase agreements). The Portfolio, through its custodian, takes possession of securities collateralizing the repurchase agreement.
16 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
Such agreements are carried at the contract amount in the financial statements, which is considered to represent fair value. Collateral pledged (the securities received), which consists primarily of U.S. government obligations and asset-backed securities, is held by the custodian bank for the benefit of the Portfolio until maturity of the repurchase agreement. Provisions of the repurchase agreements and the procedures adopted by the Portfolio requires that the market value of the collateral, including accrued interest thereon, be sufficient in the event of default by the counterparty. If the counterparty defaults under the Master Repo Agreements and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Portfolio may be delayed or limited.
(h) Organizational and Offering Costs. Organizational costs are expensed at the inception of the Portfolio. Offering costs are amortized over a twelve-month period from the inception of the Portfolio.
2. PRINCIPAL RISKS
In the normal course of business, the Portfolio trades financial instruments and enters into financial transactions where risk of potential loss exists due to, among other things, changes in the market (market risk) or failure of the other party to a transaction to perform (counterparty risk). The Portfolio is also exposed to other risks such as, but not limited to, interest rate, foreign currency, credit and leverage risks.
To the extent the Portfolio directly invests in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including economic growth, inflation, changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or the imposition of currency controls or other political developments in the United States or abroad. As a result, the Portfolios investments in foreign currency-denominated securities may reduce the returns of the Portfolio. The local emerging markets currencies in which the Portfolio may be invested may experience substantially greater volatility against the U.S. dollar than the major convertible currencies in developed countries.
The Portfolio is subject to elements of risk not typically associated with investments in the U.S., due to concentrated investments in foreign issuers located in a specific country or region. Such concentrations will subject the Portfolio to additional risks resulting from future political or economic conditions in such country or region and the possible imposition of adverse governmental laws or currency exchange restrictions affecting such country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies.
The market values of securities may decline due to general market conditions (market risk) which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, adverse changes to credit markets or adverse investor sentiment. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity-related investments generally have greater market price volatility than fixed income securities, although under certain market conditions fixed income securities may have comparable or greater price volatility. Credit ratings downgrades may also negatively affect securities held by the Portfolio. Even when markets perform well, there is no assurance that the investments held by the Portfolio will increase in value along with the broader market. In addition, market risk includes the risk that geopolitical events will disrupt the economy on a national or global level.
The Portfolio is exposed to counterparty risk, or the risk that an institution or other entity with which the Portfolio has unsettled or open transactions will default. The potential loss to the Portfolio could exceed the value of the financial assets recorded in the Portfolios financial statements. Financial assets, which potentially expose the Portfolio to counterparty risk, consist principally of cash due from counterparties and investments. The Sub-Adviser seeks to minimize the Portfolios counterparty risk by performing reviews of each counterparty and by minimizing concentration of counterparty risk by undertaking transactions with multiple customers and counterparties on recognized and reputable exchanges. Delivery of securities sold is only made once the Portfolio has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
17 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
3. FINANCIAL DERIVATIVE INSTRUMENTS
Disclosure about derivatives and hedging activities requires qualitative disclosure regarding objectives and strategies for using derivatives, quantitative disclosure about fair value amounts of gains and losses on derivatives, and disclosure about credit-risk-related contingent features in derivative agreements. The disclosure requirements distinguish between derivatives which are accounted for as hedges, and those that do not qualify for such accounting. Although the Portfolio at times uses derivatives for hedging purposes, the Portfolio reflects derivatives at fair value and recognizes changes in fair value through the Portfolios Statement of Operations, and such derivatives do not qualify for hedge accounting treatment.
Forward Foreign Currency Contracts. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. The Portfolio enters into these contracts for purposes of increasing exposure to a foreign currency or shifting exposure to foreign currency fluctuations from one country to another. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. All commitments are marked to market daily at the applicable exchange rates and any resulting unrealized appreciation or depreciation is recorded. Realized gains or losses are recorded at the time the forward contract matures or by delivery of the currency. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In addition, these contracts may involve market risk in excess of the unrealized appreciation (depreciation) reflected in the Portfolios Statement of Assets and Liabilities.
The following is a summary of the Portfolios derivatives categorized by risk exposure.
The effect of derivatives on the Statement of Operations for the period ended September 30, 2015:
Location | Foreign Exchange Contracts |
|||||
| ||||||
Net realized gain on: |
||||||
Foreign currency transactions (forward foreign currency contracts) |
$ | 1,458 | ||||
|
There was no effect of derivatives on the Statement of Operations for the period ended November 30, 2014 as the Portfolio did not have any derivative activity during the year.
4. INVESTMENT MANAGER/DISTRIBUTOR FEES/DEFERRED COMPENSATION
Investment Management Fee. The Portfolio has an Investment Management Agreement (the Agreement) with the Investment Manager. Subject to the supervision of the Trusts Board, the Investment Manager is responsible for managing, either directly or through others selected by it, the Portfolios investment activities, business affairs and administrative matters. Pursuant to the Agreement, the Investment Manager receives an annual fee, payable monthly (net of any fee waivers, reimbursements and recoupment), at an annual rate of 0.90% of the Portfolios average daily net assets.
The Investment Manager has retained the Sub-Adviser to manage the Portfolios investments. Subject to the supervision of the Investment Manager, the Sub-Adviser is responsible for making all of the Portfolios investment decisions. The Investment Manager, not the Portfolio, pays a portion of the fees it receives as Investment Manager to the Sub-Adviser in return for its services.
Distribution Fees. Allianz Global Investors Distributors LLC (the Distributor), an indirect, wholly owned subsidiary of AAM, the Investment Manager and the Sub-Adviser serves as the distributor of the Portfolios shares pursuant to a Distribution Contract. The Distributor currently receives no compensation in connection with the services it provides under the Distribution Contract.
Deferred Compensation. Trustees do not currently receive any pension or retirement benefits from the Trust. The Trust has adopted a deferred compensation plan for the Trustees that went into place at the beginning of this calendar year and permits the Trustees to defer their receipt of compensation from the Trust, at their election, in accordance with the terms of the plan. Under the plan, each Trustee may elect not to receive all or a portion of his or her fees from the Trust on a current basis but to
18 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
receive in a subsequent period chosen by the Trustee an amount equal to the value of such compensation if such compensation had been invested in one or more series of Allianz Funds Multi-Strategy Trust or Allianz Funds selected by the Trustees from and after the normal payment dates for such compensation. The deferred compensation program is structured such that the Trust remains in substantially the same financial position whether Trustee fees are paid when earned or deferred.
5. EXPENSE LIMITATION AND RECOUPMENT
The Portfolio and the Investment Manager have entered into an Expense Limitation Agreement. The Investment Manager has contractually agreed, until March 31, 2016, to irrevocably waive its management fee and/or reimburse the Portfolio, to the extent that, Total Annual Portfolio Operating Expenses, excluding interest, taxes, and extraordinary expenses, and certain credits and other expenses, exceed 1.20%. Under the Expense Limitation Agreement, the Investment Manager may recoup waived or reimbursed amounts for three years, provided total expenses, including such recoupment, do not exceed the annual expense limit in effect at the time of such reimbursements. The Expense Limitation Agreement is terminable by the Trust upon 90 days prior written notice to the Investment Manager or at any time by mutual agreement of the parties.
During the periods ended November 30, 2014 and September 30, 2015, the Investment Manager did not recoup any expenses from the Portfolio. The following represents the amounts that still can be recouped by the Investment Manager:
Unrecouped Expenses Waived/Reimbursed through | ||||||||||||
Fiscal Year ended | ||||||||||||
|
|
|||||||||||
11/30/2014 | 9/30/2015 | Totals | ||||||||||
|
|
|||||||||||
AllianzGI Global Small-Cap Opportunities |
$ 132,292 | $ 260,824 | $ 393,116 |
6. INVESTMENTS IN SECURITIES
For the period ended September 30, 2015, purchases and sales of investments, other than short-term securities were $7,391,977 and $7,466,481, respectively.
7. INCOME TAX INFORMATION
At September 30, 2015, the components of distributable earnings were:
Ordinary Income |
||||
AllianzGI Global Small-Cap Opportunities |
$ | 29,788 |
The tax character of dividends and distributions paid was:
Period ended | Period or Year ended | |||||||
September 30, 2015 | November 30, 2014 | |||||||
|
|
|
|
|||||
Ordinary Income | Ordinary Income | |||||||
|
|
|
|
|||||
AllianzGI Global Small-Cap Opportunities |
$ | 14,423 | $ | - | ||||
At September 30, 2015, capital loss carryforward amounts were: | ||||||||
No Expiration(1) | ||||||||
|
|
|||||||
Short-Term |
Long-Term | |||||||
|
|
|||||||
AllianzGI Global Small-Cap Opportunities |
$ | 235,613 | $ | - |
(1) | Carryforward amounts are subject to the provision of the Regulated Investment Company Modernization Act of 2010. |
19 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
For the period ended September 30, 2015, permanent book-tax adjustments were:
Undistributed | ||||||||||||
(Dividends in Excess | Accumulated Net | |||||||||||
of) Net Investment | Realized | |||||||||||
Income | Gain(Loss) | Paid-in Capital | ||||||||||
|
|
|||||||||||
AllianzGI Global Small-Cap Opportunities (a)(b)(c)(d) |
$ | (7,557) | $ | 7,618 | $ | (61) |
These permanent book-tax differences were primarily attributable to:
(a) | Reclassification of non-deductible expenses |
(b) | Reclassifications related to investments in Real Estate Investment Trusts (REITs) |
(c) | Reclassification of gains and losses from foreign currency transactions |
(d) | Reclassification of gains from securities classified as Passive Foreign Investment Companies (PFICs) for tax purposes |
Net investment income, net realized gains or losses and net assets were not affected by these adjustments.
At September 30, 2015, the aggregate cost basis and the net unrealized appreciation (depreciation) of investments for federal income tax purposes were:
Net Unrealized | ||||||||||||||||
Federal Tax Cost | Unrealized | Unrealized | Appreciation | |||||||||||||
Basis(2) | Appreciation | Deprecation | (Depreciation) | |||||||||||||
|
|
|||||||||||||||
AllianzGI Global Small-Cap Opportunities |
$ | 4,674,053 | $ | 329,300 | $ | 277,395 | $ | 51,905 |
(2) Differences, if any, between book and tax cost basis are primarily attributable to wash sale loss deferrals, and return of capital distributions from REITs.
8. SIGNIFICANT ACCOUNT HOLDERS
From time to time, a Portfolio may have a concentration of shareholders, which may include the Investment Manager or affiliates of the Investment Manager, holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact to the Portfolio.
At September 30, 2015, AFI held 100% of the outstanding shares in the Portfolio.
9. AFFILIATED TRANSACTIONS
An affiliate includes any company in which a Sub-Adviser owns 5% or more of a companys outstanding voting securities at any point during the fiscal year.
The table below represents transactions in and earnings from these affiliated issuers during the period ended September 30, 2015:
Market Value 11/30/2014 |
Purchases at Cost |
Proceeds from Sales |
Unrealized Appreciation (Depreciation) |
Market Value 9/30/2015 |
Dividend Income |
Net Realized Gain(Loss) |
||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Aareal Bank AG |
$ | | $ | 89,319 | $ | | $ | (5,239) | $ | 84,080 | $ | | $ | | ||||||||||||||
Andersons, Inc. |
55,661 | | (55,042) | | | | (11,982) | |||||||||||||||||||||
Cal-Maine Foods, Inc. |
36,017 | | (31,351) | | | 217 | (10,123) | |||||||||||||||||||||
Cembra Money Bank AG |
| 15,428 | | (644) | 14,784 | | | |||||||||||||||||||||
Meritor, Inc. , |
22,387 | | (18,775) | | | | (2,460) | |||||||||||||||||||||
Select Medical Holdings Corp. |
44,733 | | (42,018) | | | 182 | (6,834) | |||||||||||||||||||||
SimCorp A/S |
| 20,474 | | 9,091 | 29,565 | 282 | | |||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Totals |
$ | 158,798 | $ | 125,221 | $ | (147,186) | $ | 3,208 | $ | 128,429 | $ | 681 | $ | (31,399) | ||||||||||||||
|
|
Not affiliated at September 30, 2015.
Not affiliated at November 30, 2014.
20 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Notes to Financial Statements
September 30, 2015 (continued)
The tables below represents earnings from affiliated issuers during the period ended November 30, 2014:
Dividend | Net Realized | |||||||
Income | Gain(Loss) | |||||||
|
||||||||
Andersons, Inc. |
$ | 193 | $ | (4,905) | ||||
Cal-Maine Foods, Inc. |
164 | | ||||||
Select Medical Holdings Corp. |
619 | | ||||||
|
|
|||||||
Totals |
$ | 976 | $ | (4,905) | ||||
|
|
The percentages and market values below represent portfolio holdings that were considered affiliated at September 30, 2015:
Market Value | ||||||||
Sub- | as a | |||||||
Advisers | % of Funds | |||||||
Issuer Name | % Holding | Market Value | Net Assets | |||||
| ||||||||
Aareal Bank AG |
8.01% | $ | 84,080 | 1.73% | ||||
Cembra Money Bank AG |
6.01% | 14,784 | 0.30% | |||||
SimCorp A/S |
13.04% | 29,565 | 0.61% | |||||
| ||||||||
Totals |
$ | 128,429 | 2.64% | |||||
|
10. FUND EVENTS
On September 28, 2015, AllianzGI U.S. Unconstrained Equity Portfolio liquidated as series of the Trust.
11. BORROWINGS
On July 31, 2015, the Trust entered into a new credit agreement (the Northern Trust Agreement), among the Trust, AllianzGI Funds Multi-Strategy Trust, Allianz Funds and Premier Multi-Series VIT, as borrowers (collectively, the AllianzGI Borrowers and each series thereof, an AllianzGI Borrower Fund), and Northern Trust Company, as lender, for a committed line of credit. The Northern Trust Agreement has a 364 day term and permits the AllianzGI Borrowers to borrow up to $200 million in aggregate, subject to (i) a requirement that each AllianzGI Borrower Funds asset coverage with respect to senior securities representing indebtedness be 300% or higher, and (ii) certain other limitations and conditions. Each AllianzGI Borrower Fund will pay interest on any amounts borrowed under the facility at the greater of (i) the federal funds overnight rate plus 1.00% or (ii) 1.50%, subject to upward adjustment when any past-due payments are outstanding. The AllianzGI Borrowers will also pay a usage fee at an annualized rate of 0.15% on undrawn amounts, allocated pro rata among the AllianzGI Borrower Funds on the basis of net assets. Amounts borrowed may be repaid and reborrowed on a revolving basis during the term of the facility.
The Portfolio did not utilize the line of credit during the period ended September 30, 2015.
12. SUBSEQUENT EVENTS
In preparing these financial statements, the Portfolios management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
Effective October 30, 2015, AllianzGI Advanced Core Bond Portfolio commenced operations as a series of the Trust.
There were no other subsequent events identified that require recognition or disclosure.
21 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of AllianzGI Institutional Multi-Series Trust
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of AllianzGI Global Small-Cap Opportunities Portfolio, a fund of the AllianzGI Institutional Multi-Series Trust (hereafter referred to as the Portfolio) at September 30, 2015, and the results of its operations, the changes in its net assets and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Portfolios management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
November 23, 2015
22 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Unaudited
Changes to the Board of Trustees/Federal Tax Information
Changes to Board of Trustees:
Effective September 11, 2015, Susan M. King resigned as an Interested Trustee of the Trust.
Effective October 8, 2015, Barbara R. Claussen became an Interested Trustee of the Trust.
Federal Tax Information:
As required by the Internal Revenue Code, shareholders must be notified regarding certain tax attributes of distributions made by each Fund.
Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the following percentages of ordinary dividends paid during the fiscal year ended September 30, 2015, are designated as qualified dividend income:
AllianzGI Global Small-Cap Opportunities |
100 | % |
Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Funds dividend distribution that qualifies under tax law. The percentage of the following Funds ordinary income dividends paid during the fiscal year ended September 30, 2015, that qualify for the corporate dividend received deduction is set forth below:
AllianzGI Global Small-Cap Opportunities |
97 | % |
23 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Unaudited
September 30, 2015
Please read this Policy carefully. It gives you important information about how Allianz Global Investors U.S. and its U.S. affiliates (AllianzGI US, we or us) handle non-public personal information (Personal Information) that we may receive about you. It applies to all of our past, present and future clients and shareholders of AllianzGI US and the funds and accounts it manages, advises, sub-advises, administers or distributes, and will continue to apply when you are no longer a client or shareholder. As used throughout this Policy, AllianzGI US means Allianz Global Investors U.S. LLC, Allianz Global Investors Fund Management LLC, Allianz Global Investors Distributors LLC, NFJ Investment Group LLC and the family of registered and unregistered funds managed by one or more of these firms. AllianzGI US is part of a global investment management group, and the privacy policies of other Allianz Global Investors entities outside of the United States may have provisions in their policies that differ from this Privacy Policy. Please refer to the website of the specific non-US Allianz Global Investors entity for its policy on privacy.
We Care about Your Privacy
We consider your privacy to be a fundamental aspect of our relationship with you, and we strive to maintain the confidentiality, integrity and security of your Personal Information. To ensure your privacy, we have developed policies that are designed to protect your Personal Information while allowing your needs to be served.
Information We May Collect
In the course of providing you with products and services, we may obtain Personal Information about you, which may come from sources such as account application and other forms, from other written, electronic, or verbal communications, from account transactions, from a brokerage or financial advisory firm, financial advisor or consultant, and/or from information you provide on our website.
You are not required to supply any of the Personal Information that we may request. However, failure to do so may result in us being unable to open and maintain your account, or to provide services to you.
How Your Information Is Shared
We do not disclose your Personal Information to 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, such as to respond to your inquiries, to perform services, and/or to service and maintain your account. This applies to all of the categories of Personal Information we collect about you. The affiliated and non-affiliated service providers who receive your Personal Information also may use it to process your transactions, provide you with materials (including preparing and mailing prospectuses and shareholder reports and gathering shareholder proxies), and provide you with account statements and other materials relating to your account. These service providers provide services at our direction, and under their agreements with us, are required to keep your Personal Information confidential and to use it only for providing the contractually required services. Our service providers may not use your Personal Information to market products and services to you except in conformance with applicable laws and regulations. We also may provide your Personal Information to your respective brokerage or financial advisory firm, custodian, and/or to your financial advisor or consultant.
In addition, we reserve the right to disclose or report Personal Information to non-affiliated third parties, in limited circumstances, where we believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities or pursuant to other legal process, or to protect our rights or property, including to enforce our Privacy Policy or other agreements with you. Personal Information collected by us may also be transferred as part of a corporate sale, restructuring, bankruptcy, or other transfer of assets.
Security of Your Information
We maintain your Personal Information for as long as necessary for legitimate business purposes or otherwise as required by law. In maintaining this information, we have implemented appropriate procedures that are designed to restrict access to your Personal Information only to those who need to know that information in order to provide products and/or services to you. In addition, we have implemented physical, electronic and procedural safeguards to help protect your Personal Information.
24 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Unaudited
Privacy Policy
September 30, 2015 (continued)
Privacy and the Internet
The Personal Information that you provide through our website, as applicable, is handled in the same way as the Personal Information that you provide by any other means, as described above. This section of the Policy gives you additional information about the way in which Personal Information that is obtained online is handled.
| Online Enrollment, Account Access and Transactions: When you visit our website, you can visit pages that are open to the general public, or, where available, log into protected pages to enroll online, access information about your account, or conduct certain transactions. Access to the secure pages of our website is permitted only after you have created a User ID and Password. The User ID and Password must be supplied each time you want to access your account information online. This information serves to verify your identity. When you enter Personal Information into our website (including your Social Security Number or Taxpayer Identification Number and your password) to enroll or access your account online, you will log into secure pages. By using our website, you consent to this Privacy Policy and to the use of your Personal Information in accordance with the practices described in this Policy. If you provide Personal Information to effect transactions on our website, a record of the transactions you have performed while on the site is retained by us. For additional terms and conditions governing your use of our website, please refer to the Investor Mutual Fund Access Disclaimer which is incorporated herein by reference and is available on our website. |
| Cookies and Similar Technologies: Cookies are small text files stored in your computers hard drive when you visit certain web pages. Cookies and similar technologies help us to provide customized services and information. We use these technologies on our website to improve our website and services, including to evaluate the effectiveness of our site, and to enhance the site user experience. Because an industry-standard Do-Not-Track protocol is not yet established, our website will continue to operate as described in this Privacy Policy and will not be affected by any Do-Not-Track signals from any browser. |
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 PrivacyUS@allianzgi.com.
25 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Unaudited
Name, Year of Birth, Position(s) Held with Trust, Length of Service, Other Trusteeships/Directorships Held by Trustee; Number of Portfolios in Fund Complex/Outside Fund Complexes Currently Overseen by Trustee
|
Principal Occupation(s) During Past 5 Years:
|
|||
The address of each trustee is 1633 Broadway, New York, NY 10019. |
||||
Deborah A. DeCotis Year of Birth: 1952 Trustee since: 2014 Trustee/Director of 93 funds in Fund Complex Trustee/Director of no funds outside of Fund Complex |
Advisory Director, Morgan Stanley & Co., Inc. (since 1996); Co-Chair Special Projects Committee, Memorial Sloan Kettering (since 2005); Member, Circle Financial Group (since 2009); Trustee, Stanford University (since 2010); and Member, Council on Foreign Relations (since 2013). Formerly, Director, Helena Rubenstein Foundation (1997-2010); Principal, LaLoop LLC, a retail accessories company (1999-2014); and Director, Armor Holdings (2002-2010). |
|||
F. Ford Drummond Year of Birth: 1962 Trustee since: 2014 Trustee/Director of 68 funds in Fund Complex Trustee/Director of no funds outside of Fund Complex Director, BancFirst Corporation. |
Owner/Operator, Drummond Ranch; and Director, Oklahoma Water Resources Board. Formerly, Director, The Cleveland Bank; and General Counsel, BMI-Health Plans (benefits administration). |
|||
Bradford K. Gallagher Year of Birth: 1944 Trustee since: 2014 Trustee/Director of 93 funds in Fund Complex Trustee/Director of 43 funds outside of Fund Complex Formerly, Chairman and Trustee of Grail Advisors ETF Trust (2009-2010) and Trustee, Nicholas-Applegate Institutional Funds (2007-2010) |
Retired. Founder, Spyglass Investments LLC, a private investment vehicle (since 2001). Formerly, Partner, New Technology Ventures Capital Management LLC, a venture capital fund (2011-2013); Chairman and Trustee, Atlantic Maritime Heritage Foundation (2007-2012); Founder, President and CEO, Cypress Holding Company and Cypress Tree Investment Management Company (1995-2001); and Chairman and Trustee, The Common Fund (2005-2014). | |||
James A. Jacobson Year of Birth: 1945 Trustee since: 2014 Trustee/Director of 93 funds in Fund Complex Trustee/Director of 18 funds outside the Fund Complex, Trustee, Alpine Mutual Funds Complex (consisting of 18 funds) |
Retired. Trustee (since 2002) and Chairman of Investment Committee (since 2007), Ronald McDonald House of New York. Formerly, Vice Chairman and Managing Director, Spear, Leeds & Kellogg Specialists, LLC, a specialist firm on the New York Stock Exchange (2003-2008). |
|||
Hans W. Kertess Year of Birth: 1939 Trustee since: 2014 Trustee/Director of 93 funds in Fund Complex Trustee/Director of no funds outside the Fund Complex |
President, H. Kertess & Co., a financial advisory company; and Senior Adviser (formerly Managing Director), Royal Bank of Canada Capital Markets (since 2004). |
|||
James S. MacLeod Year of Birth: 1947 Trustee since: 2014 Trustee/Director of 68 funds in Fund Complex Director, Sykes Enterprises, Inc. |
Director, Chairman and Chief Executive Officer, CoastalSouth Bancshares, Inc.; Director and President, CoastalStates Bank; Director, Homeowners Mortgage; and Trustee, University of Tampa. Formerly, Executive Vice President, Mortgage Guaranty Insurance Corporation; and Chief Executive Officer, Homeowners Mortgage. | |||
William B. Ogden, IV Year of Birth: 1945 Trustee since: 2014 Trustee/Director of 93 funds in Fund Complex; Trustee/Director of no funds outside of Fund Complex |
Retired. Formerly, Asset Management Industry Consultant; and Managing Director, Investment Banking Division of Citigroup Global Markets Inc. |
|||
Alan Rappaport Year of Birth: 1953 Trustee since: 2014 Trustee/Director of 93 funds in Fund Complex Trustee/Director of no funds outside of Fund Complex |
Advisory Director (Formerly Vice Chairman), Roundtable Investment Partners (since 2009); Adjunct Professor, New York University Stern School of Business (since 2011); Lecturer, Stanford University Graduate School of Business (since 2013); Trustee, American Museum of Natural History (since 2005); Trustee, NYU Langone Medical Center (since 2007); and Director, Victory Capital Holdings, Inc., an asset management firm (since 2013). Formerly, Vice Chairman, US Trust (formerly Chairman and President of Private Bank of Bank of America, the predecessor entity of US Trust) (2001-2008). | |||
Davey S. Scoon Year of Birth: 1946 Trustee since: 2014 Trustee/Director of 67 funds in Fund Complex Trustee/Director of no funds outside the Fund Complex Chairman, Tufts Health Plan; Director, AMAG Pharmaceuticals, Inc. (since 2006); Director, Orthofix International N.V. (since 2011); and Director, Biodel Inc. (since 2013). Formerly, Director, CardioKine Inc (2005-2011); and Director, NitroMed, Inc. (2003-2009). |
Adjunct Professor, University of Wisconsin-Madison (since 2011). Formerly, Chief Administrative and Financial Officer, Toms of Maine (personal care products manufacturing) (2003-2005); and Chief Administrative and Financial Officer (formerly Vice President and Chief Financial Officer), Sun Life Financial U.S. (financial services) (2001-2003). |
|||
Barbara R. Claussen Year of Birth: 1956 Trustee since: 2015 Trustee/Director of 68 funds in Fund Complex Trustee/Director of no funds outside the Fund Complex |
Chief Administrative Officer, Managing Director and member of the Executive Committee of Allianz Global Investors U.S. Holdings LLC (since 2013); Managing Director of Allianz Global Investors U.S. LLC; Chief Administrative Officer and Managing Director of NFJ Investment Group LLC (since 2005). Formerly, Chairman of the Management Board of Allianz Global Investors Capital LLC (2012); Member of Management Board, Interim Global Chief Operating Officer Liaison and Chief Risk Officer of Allianz Global Investors Capital LLC (2008-2011). |
|||
Julian Sluyters Year of Birth: 1960 Trustee since: 2014 Trustee/Director of 68 funds in Fund Complex Trustee/Director of no funds outside the Fund Complex |
Chairman of the Management Board of Allianz Global Investors Fund Management LLC (since 2013); Chief Operating Officer, Managing Director and member of the Executive Committee of Allianz Global Investors U.S. Holdings LLC (since 2012); President and Chief Executive Officer of the Fund Complex and Formerly, President and Chief Executive Officer, Old Mutual Capital Inc. (2008-2012). |
The Portfolios Statement of Additional Information contains additional information about the Trustees. The Statement of Additional Information is available without charge, upon request, by calling 1-800-498-5413.
26 | Annual Report / September 30, 2015 |
AllianzGI Global Small-Cap Opportunities Portfolio
Unaudited
Name, Year of Birth, Position(s) Held with Trust
|
Principal Occupation(s) During Past 5 Years:
|
|||
Julian Sluyters 1633 Broadway, 43rd Floor New York, NY 10019 Year of Birth: 1960 Trustee, President and Chief Executive Officer since: 2014 |
Chairman of the Management Board of Allianz Global Investors Fund Management LLC (since 2013); Chief Operating Officer, Managing Director and member of the Executive Committee of Allianz Global Investors U.S. Holdings LLC (since 2012); President and Chief Executive Officer of the Fund Complex and Formerly, President and Chief Executive Officer, Old Mutual Capital Inc. (2008-2012). |
|||
Lawrence G. Altadonna 1633 Broadway, 43rd Floor New York, NY 10019 Year of Birth: 1966 Treasurer, Principal Financial and Accounting Officer since: 2014 |
Director, Director of Fund Administration of Allianz Global Investors Fund Management LLC; Treasurer, Principal Financial and Accounting Officer of 68 funds in the Fund Complex and of The Korea Fund, Inc. Formerly, Assistant Treasurer of numerous funds in the Fund Complex (2005-2010). |
|||
Thomas J. Fuccillo 1633 Broadway, 43rd Floor New York, NY 10019 Year of Birth: 1968 Vice President, Secretary & Chief Legal Officer since: 2014 |
Managing Director, Chief Legal Officer and Secretary of Allianz Global Investors Fund Management LLC and Allianz Global Investors Distributors LLC; Managing Director and Chief Regulatory Counsel of Allianz Global Investors U.S. Holdings LLC; Vice President, Secretary and Chief Legal Officer of 68 funds in the Fund Complex; and Secretary and Chief Legal Officer of The Korea Fund, Inc. |
|||
Thomas L. Harter, CFA 1633 Broadway, 43rd Floor New York, NY 10019 Year of Birth: 1975 Chief Compliance Officer since: 2014 |
Director of Allianz Global Investors U.S. Holdings LLC; Chief Compliance Officer of Allianz Global Investors Fund Management LLC; Chief Compliance Officer of 68 funds in the Fund Complex and of The Korea Fund, Inc. Formerly, Vice President and Compliance Manager (2005-2012). |
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Richard J. Cochran 1633 Broadway, 43rd Floor New York, NY 10019 Year of Birth: 1961 Assistant Treasurer since: 2014 |
Vice President of Allianz Global Investors Fund Management LLC; Assistant Treasurer of 68 funds in the Fund Complex and of The Korea Fund, Inc. |
|||
Orhan Dzemaili 1633 Broadway, 43rd Floor New York, NY 10019 Year of Birth: 1974 Assistant Treasurer since: 2014 |
Director of Allianz Global Investors Fund Management LLC; and Assistant Treasurer of 68 funds in the Fund Complex. |
|||
Scott Whisten 1633 Broadway, 43rd Floor New York, NY 10019 Year of Birth: 1971 Assistant Treasurer since: 2014 |
Director of Allianz Global Investors Fund Management LLC; and Assistant Treasurer of 68 funds in the Fund Complex. |
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Paul Koo (1) 555 Mission Street, Suite. 1700 San Francisco, CA 94105 Year of Birth: 1964 Assistant Secretary since: 2014 |
Director, Deputy Head of US Compliance, Chief Compliance Officer of Allianz Global Investors U.S. LLC; Chief Compliance Officer of NFJ Investment Group LLC; and Assistant Secretary of 61 funds in the Fund Complex. Formerly, Associate Chief Compliance Officer, Dodge & Cox (2010-2011). |
(1) Paul Koo is Assistant Secretary of the Trust with a limited authority to open, maintain and close certain custodial and trading accounts for all series of the Trust.
Officers hold office at the pleasure of the Board and until their successors are appointed and qualified or until their earlier resignation or removal.
27 | Annual Report / September 30, 2015 |
Trustees | ||||
Davey S. Scoon | Investment Manager | |||
Chairman of the Board of Trustees |
Allianz Global Investors Fund Management LLC |
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Barbara R. Claussen | 1633 Broadway |
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Deborah A. DeCotis | New York, NY 10019 |
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F. Ford Drummond | ||||
Bradford K. Gallagher | Sub-Adviser | |||
James A. Jacobson | Allianz Global Investors U.S. LLC |
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Hans W. Kertess | 1633 Broadway |
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James S. MacLeod | New York, NY 10019 |
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William B. Ogden, IV | ||||
Alan Rappaport | Distributor | |||
Julian Sluyters | Allianz Global Investors Distributors LLC |
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1633 Broadway |
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Officers | New York, NY 10019 |
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Julian Sluyters | ||||
President & Chief Executive Officer |
Custodian & Accounting Agent | |||
Lawrence G. Altadonna | State Street Bank & Trust Co. |
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Treasurer, Principal Financial & Accounting Officer |
801 Pennsylvania Avenue |
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Thomas J. Fuccillo | Kansas City, MO 64105 |
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Vice President, Secretary & Chief Legal Officer |
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Thomas L. Harter | Transfer Agent | |||
Chief Compliance Officer |
Boston Financial Data Services, Inc. |
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Scott Whisten | 330 West 9th Street, 5th Floor |
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Assistant Treasurer |
Kansas City, MO 64105 |
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Richard J. Cochran | ||||
Assistant Treasurer |
Independent Registered Public Accounting Firm | |||
Orhan Dzemaili | PricewaterhouseCoopers LLP |
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Assistant Treasurer |
300 Madison Avenue |
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Paul Koo | New York, NY 10017 |
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Assistant Secretary |
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Legal Counsel | ||||
Ropes & Gray LLC |
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Prudential Tower |
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800 Boylston Street |
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Boston, MA 02199 |
This report, including the financial information herein, is transmitted to the shareholders of the Trust for their information. It is not a prospectus, private placement memorandum, circular or representation intended for use in the purchase of shares of the Portfolio or any securities mentioned in this report.
AGI-2015-10-05-13427
AZ753AR_093015
ITEM 2. CODE OF ETHICS
(a) | As of the end of the period covered by this report, the registrant has adopted a code of ethics (the Section 406 Standards for Investment Companies Ethical Standards for Principal Executive and Financial Officers) that applies to the registrants President and Chief Executive Officer and Principal Financial Officer; the registrants Principal Financial Officer also serves as the Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-926-4456. The code of ethics are included as an Exhibit 99.CODE ETH hereto. |
(b) | During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above. |
(c) | During the period covered by this report, there were not any waivers or implicit waivers to a provision of the code of ethics adopted in 2(a) above. |
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrants Board has determined that Mr. James A. Jacobson, a member of the Boards Audit Oversight Committee is an audit committee financial expert, and that he is independent, for purposes of this Item
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
a) | Audit fees. The aggregate fees billed for each of the last two fiscal years (the Reporting Periods) for professional services rendered by the Registrants principal accountant (the Auditor) for the audit of the Registrants annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $41,200 in 2014 and $20,600 in 2015. |
b) | Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the principal accountants that are reasonably related to the performance of the audit registrants financial statements and are not reported under paragraph (e) of this Item were $0 in 2014 and $0 in 2015. |
c) | Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax service and tax planning (Tax Services) were $24,280 in 2014 and $11,310 in 2015. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns and calculations of excise tax distributions. |
d) | All Other Fees. There were no other Fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant. |
e) | 1. Audit Committee Pre-Approval Policies and Procedures. The Registrants Audit Committee has established policies and procedures for pre-approval of all audit and permissible non-audit services by the Auditor for the Registrant, as well as the Auditors engagements related directly to the operations and financial reporting of the Registrant. The Registrants policy is stated below. |
AllianzGI Institutional Multi-Series Trust (The Trust)
AUDIT OVERSIGHT COMMITTEE POLICY
FOR
PRE-APPROVAL OF SERVICES PROVIDED BY THE INDEPENDENT ACCOUNTANTS
The Trusts Audit Oversight Committee (Committee) is charged with the oversight of the Trusts financial reporting policies and practices and their internal controls. As part of this responsibility, the Committee must pre-approve any independent accounting firms engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement by the independent accountants, the Committee will assess the effect that the engagement might reasonably be expected to have on the accountants independence. The Committees evaluation will be based on:
a review of the nature of the professional services expected to be provided,
the fees to be charged in connection with the services expected to be provided
a review of the safeguards put into place by the accounting firm to safeguard independence, and
periodic meetings with the accounting firm.
POLICY FOR AUDIT AND NON-AUDIT SERVICES TO BE PROVIDED TO THE TRUST
On an annual basis, the Committee of the Trust will review and pre-approve the scope of the audits of the Trust and proposed audit fees, and permitted non-audit (including audit under related) services that may be performed by the Trusts independent accountants. At least annually, the Committee will receive a report of all audit and non-audit services that were rendered in the previous calendar year pursuant to this Policy.
In addition to the Committees pre-approval of services pursuant to this Policy, the engagement of the independent accounting firm for any permitted non-audit service provided to the fund with also require the separate written pre-approval of the President of the Trust, who will confirm, independently that the accounting firms engagement will not adversely affect the firms independence. All non-audit services performed by the independent accounting firm will be disclosed, as required, in filings with the Securities and Exchange Commission.
AUDIT SERVICES
The categories of audit services and related fees to be reviewed and pre-approved annually by the Committee are:
Annual Trust financial statement audits
Seed audits (related to new product filings, as required)
SEC and regulatory filings and consents
AUDIT-RELATED SERVICES
The following categories of audit-related services are considered to be consistent with the role of the Trusts independent accountants and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firms independence:
Accounting consultations
Trust merger support services
Agreed upon procedure reports
Other Attestation reports
Comfort letters
Other internal control reports
Individual audit-related services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process described above, may be pre-approved, if deemed consistent with the accounting firms independence, by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $250,000 any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.
TAX SERVICES
The following categories of tax services are considered to be consistent with the role of the Trusts independent accountants and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firms independence:
Tax compliance services related to the filing or amendment of the following:
Federal, state and local income tax compliance; and, sales and use tax compliance
Timely RIC qualification reviews
Tax distribution analysis and planning
Tax authority examination services
Tax appeals support services
Accounting methods studies
Trust merger support services
Other tax consulting services and related projects
Individual tax services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process described above, may be pre-approved, if deemed consistent with the accounting firms independence, by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $250,000 any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.
PROSCRIBED SERVICES
The Trusts independent accountants will not render services in the following categories of non-audit services:
Bookkeeping or other services related to the accounting records or financial statements of the Trust
Financial information systems design and implementation
Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
Actuarial services
Internal audit outsourcing services
Management functions or human resources
Broker or dealer, investment adviser or investment banking services
Legal services and expert services unrelated to the audit
Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.
PRE-APPROVAL OF NON-AUDIT SERVICES PROVIDED TO OTHER ENTITIES WITHIN THE FUND COMPLEX
The Committee will pre-approve annually any permitted non-audit services to be provided to Allianz Global Investors Fund Management LLC or any other investment manager to the Trust (but not including any sub-adviser whose role is primarily portfolio management and is sub-contracted by the investment manager) (the Investment Manager) and any entity controlling, controlled by, or under common control with the Investment Manager that provides ongoing services to the Trust (including affiliated sub-advisers to the Trust), provided, in each case, that the engagement relates directly to the operations and financial reporting of the Trust (such entities, including the Investment Manager, shall be referred to herein as the Accounting Affiliates). Individual projects that are not presented to the Committee as part of the annual pre-approval process, may be pre-approved, if deemed consistent with the accounting firms independence, by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $250,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting. Although the Committee will not pre-approve all services provided to the Investment Manager and its affiliates, the Committee will receive an annual report from the Trusts independent accounting firm showing the aggregate fees for all services provided to the Investment Manager and its affiliates.
DE MINIMUS EXCEPTION TO REQUIREMENT OF PRE-APPROVAL OF NON-AUDIT SERVICES
With respect to the provision of permitted non-audit services to the Trust or Accounting Affiliates, the pre-approval requirement is waived if:
(1) | The aggregate amount of all such permitted non-audit services provided constitutes no more than (i) with respect to such services provided to the Trust, five percent (5%) of the total amount of revenues paid by the Trust to its independent accountant during the fiscal year in which the services are provided, and (ii) with respect to such services provided to Accounting Affiliates, five percent (5%) of the total amount of revenues paid to the Trusts independent accountant by the Fund and the Accounting Affiliates during the fiscal year in which the services are provided; |
(2) | Such services were not recognized by the Trust at the time of the engagement for such services to be non-audit services; and |
(3) | Such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this Committee Chairman or other delegate shall be reported to the full Committee at its next regularly scheduled meeting. |
e) | 2. No services were approved pursuant to the procedures contained in paragraph (C) (7) (i) (C) of Rule 2-01 of Registration S-X. |
f) | Not applicable. |
g) | Non-audit fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to the Adviser, for the 2014 Reporting Period was $3,966,727 and 5,294,251. |
h) | Auditor Independence. The Registrants Audit Oversight Committee has considered whether the provision of non-audit services that were rendered to the Adviser which were not pre-approved is compatible with maintaining the Auditors independence. |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANT
Disclosure not required for open-end management investment companies.
ITEM 6. INVESTMENTS
(a) | Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Disclosure not required for open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Disclosure not required for open-end management investment companies.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED COMPANIES. |
Disclosure not required for open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the Trusts Board of Trustees since the Trust last provided disclosure in response to this item.
ITEM 11. | CONTROLS AND PROCEDURES |
(a) | The registrants President & Chief executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c)), as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. |
(b) | There were no significant changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. |
ITEM 12. | EXHIBITS |
(a)(1) | Exhibit 99.CODE ETH Code of Ethics | |
(a)(2) | Exhibit 99.302 CERT. Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
(a)(3) | Not applicable | |
(b) | Exhibit 99.906 CERT. Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) AllianzGI Institutional Multi-Series Trust | ||
By: |
/s/ Julian Sluyters | |
Julian Sluyters, | ||
President & Chief Executive Officer |
Date: December 2, 2015
By: | /s/ Lawrence G. Altadonna | |
Lawrence G. Altadonna | ||
Treasurer, Principal Financial & Accounting Officer |
Date: December 2, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: |
/s/ Julian Sluyters | |
Julian Sluyters, | ||
President & Chief Executive Officer |
Date: December 2, 2015
By: |
/s/ Lawrence G. Altadonna | |
Lawrence G. Altadonna, | ||
Treasurer, Principal Financial & Accounting Officer |
Date: December 2, 2015
CODE OF ETHICS PURSUANT TO SECTION 406 OF THE SARBANES-OXLEY ACT OF
2002 FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
I. | Covered Officers/Purpose of the Code |
This Code of Ethics (the Code) pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 has been adopted by the Trusts1 and their respective series (each a Fund and, collectively, the Funds). This Code applies to the President and Chief Executive Officer, and Treasurer and Principal Financial and Accounting Officer (the Covered Officers) of the Funds or persons (if any) performing similar functions. Each Covered Officer is identified in Exhibit A.
This Code has been adopted for the purpose of promoting:
● | honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
● | full, fair, accurate, timely and understandable disclosure in reports and documents that a Fund files with, or submits to, the U.S. Securities and Exchange Commission (SEC) and in other public communications made by a Fund; |
● | compliance with applicable laws and governmental rules and regulations; |
● | the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and |
● | accountability for adherence to the Code. |
Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to conflicts of interest or the appearance thereof.
II. | Covered Officers Should Handle Ethically Any Actual or Apparent Conflicts of Interest |
A conflict of interest occurs when a Covered Officers private interest interferes with the interests of, or his service to, the relevant Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of the Covered Officers family, receives improper personal benefits as a result of the Covered Officers position with the relevant Fund. Other conflicts of interest may arise out of relationships between Covered Officers and the relevant Fund that are subject to conflict of interest provisions and procedures in the Investment Company Act of 1940, the Investment Advisers Act of 1940 and other applicable law. This Code does not, and is not intended to, address conflicts that fall outside of this Code.
1 Allianz Funds, Allianz Funds Multi-Strategy Trust, Allianz Global Investors Fund Management Sponsored Closed-End Funds, AllianzGI Institutional Multi-Series Trust, The Korea Fund, Inc., and Premier Multi-Series VIT, each of which is a registered investment company under the Investment Company Act 1940
III. | Disclosure and Compliance |
● | no Covered Officer should knowingly misrepresent, or cause others to misrepresent, facts about the relevant Fund to others, whether within or outside such Fund, including to such Funds Board and auditors, and to governmental regulators and self-regulatory organizations; |
● | each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Funds and the Service Providers or with counsel to the Funds with the goal of promoting full, fair, accurate, timely and understandable disclosure in the registration statements or periodic reports that the Funds file with, or submit to, the SEC; and |
● | each Covered Officer has the responsibility to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. |
IV. | Reporting and Accountability |
Each Covered Officer must:
● | upon becoming a Covered Officer affirm in writing to the relevant Fund that he has received, read and understands the Code; |
● | annually thereafter affirm in writing that he has complied with the requirements of the Code; |
● | provide full and fair responses to all questions asked in any Trustee and Officer Questionnaire provided by the relevant Fund as well as with respect to any supplemental request for information; and |
● | notify the President of the relevant Fund promptly if he is convinced to a moral certainty that there has been a material violation of this Code (with respect to violations by a President, the Covered Officer shall report to the Chairman of the Trustees of the relevant Fund). |
The President of each Fund is responsible for applying this Code in consultation with the Funds Chief Compliance Officer (CCO) and has the authority to interpret this Code. However, any approvals or waivers sought by the President will be considered by the Chairman of the Trustees of the relevant Fund.
The Funds will follow these procedures in investigating and enforcing this Code:
● | the President will take all appropriate action to investigate any potential material violations reported to him, which actions may include the use of internal or external counsel, accountants or other personnel; |
-2-
● | if, after such investigation, the President believes that no material violation has occurred, the President is not required to take any further action; |
● | any matter that the President believes is a material violation will be reported to the Funds CCO; |
● | if the CCO concurs that a material violation has occurred, he will inform and make a recommendation to the Funds Board of Trustees, which will consider appropriate action, which may include review of, and appropriate modifications to applicable policies and procedures; notification to appropriate personnel of a Service Provider or its board; or a recommendation to dismiss the Covered Officer; and |
● | the Board of Trustees may grant waivers under this Code, as it deems appropriate. |
V. | Public Disclosure of Changes and Waivers |
Any amendments to or waivers under this Code relating to a Covered Officer will, to the extent required by the SECs rules, be disclosed on the Funds website or in the Form N-CSR.
VI. | Other Policies and Procedures |
This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds or the Funds Service Providers govern or purport to govern the behavior or activities of the Covered Persons who are subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code. The Funds and their Service Providers codes of ethics under Rule 17j-1 under the 1940 Act and the Service Providers more detailed compliance policies and procedures are separate requirements applying to the Covered Persons and others, and are not part of this Code.
VII. | Amendments |
Any material amendments to this Code must be approved or ratified by a majority vote of each Funds board of Trustees, including a majority of independent Trustees.
VIII. | Confidentiality |
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone except as permitted by the Board.
-3-
Exhibit A
Covered Officers
Allianz Funds, Allianz Funds Multi-Strategy Trust, Premier Multi-Series VIT, AllianzGI Institutional Multi-Series Trust, and Allianz Global Investors Fund Management Sponsored
Closed-End Funds
Julian Sluyters | President and Chief Executive Officer | |
Lawrence G. Altadonna | Treasurer and Principal Financial and Accounting Officer | |
The Korea Fund, Inc. | ||
Joseph Quirk | President and Chief Executive Officer | |
Lawrence G. Altadonna | Treasurer and Principal Financial and Accounting Officer |
-4-
Exhibit 99.302 CERT
CERTIFICATIONS
I, Julian Sluyters, certify that:
1. | I have reviewed this report on Form N-CSR of AllianzGI Institutional Multi-Series Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report; . |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: December 2, 2015
Signature & | /s/ Julian Sluyters | |
Title: | Julian Sluyters, President & Chief Executive Officer |
I, Lawrence G. Altadonna, certify that:
1. | I have reviewed this report on Form N-CSR of Allianz Institutional Multi-Series Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: December 2, 2015
Signature & | /s/ Lawrence G. Altadonna | |
Title: | Lawrence G. Altadonna, Treasurer, Principal Financial & Accounting Officer |
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)
In connection with the attached report of AllianzGI Institutional Multi-Series Trust (the Registrant) on Form N-CSR (the Report), each of the undersigned officers of the Registrant does hereby certify that, to the best of such officers knowledge:
1) | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; |
2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant as of, and for, the periods presented in the Report. |
By: | /s/ Julian Sluyters |
|||||
Julian Sluyters, | ||||||
President & Chief Executive Officer | ||||||
Dated: December 2, 2015 | ||||||
By: | /s/ Lawrence G. Altadonna |
|||||
Lawrence G. Altadonna, Treasurer, Principal Financial & Accounting Officer |
||||||
Dated: December 2, 2015 |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the version of this written statement required by Section 906, has been provided to AllianzGI Institutional Multi-Series Trust and will be retained by AllianzGI Institutional Multi-Series Trust, and furnished to the Securities and Exchange Commission or its staff upon request.
This certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.
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