0001193125-18-181582.txt : 20180601 0001193125-18-181582.hdr.sgml : 20180601 20180601141104 ACCESSION NUMBER: 0001193125-18-181582 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180601 DATE AS OF CHANGE: 20180601 EFFECTIVENESS DATE: 20180601 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AllianzGI Institutional Multi-Series Trust CENTRAL INDEX KEY: 0001609956 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-22975 FILM NUMBER: 18874518 BUSINESS ADDRESS: STREET 1: C/O ROPES & GRAY LLP, PRUDENTIAL TOWER STREET 2: 800 BOYLSTON STREET CITY: BOSTON STATE: MA ZIP: 02199 BUSINESS PHONE: 617-951-7774 MAIL ADDRESS: STREET 1: C/O ROPES & GRAY LLP, PRUDENTIAL TOWER STREET 2: 800 BOYLSTON STREET CITY: BOSTON STATE: MA ZIP: 02199 0001609956 S000046701 AllianzGI Global Small-Cap Opportunities Portfolio C000145754 AllianzGI Global Small-Cap Opportunities Portfolio 0001609956 S000052223 AllianzGI Advanced Core Bond Portfolio C000164280 AllianzGI Advanced Core Bond Portfolio 0001609956 S000054147 AllianzGI Best Styles Global Managed Volatility Portfolio C000170174 AllianzGI Best Styles Global Managed Volatility Portfolio N-CSRS 1 d518197dncsrs.htm ALLIANZGI INSTITUTIONAL MULTI-SERIES TRUST AllianzGI Institutional Multi-Series Trust
Table of Contents

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, NY 10019

(Address of principal executive offices) (Zip code)

 

 

Scott Whisten

1633 Broadway, New York, NY 10019

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 212-739-3367

Date of fiscal year end: September 30

Date of reporting period: March 31, 2018

 

 

 

 


Table of Contents

Item 1. Report to Shareholders

 

AllianzGI Institutional Multi-Series Trust

Semi-Annual Report

March 31, 2018


Table of Contents

Table of Contents

 

Portfolio Summaries

     2 -7  

Important Information

     8-9  

Schedules of Investments

     10-34  

Statements of Assets and Liabilities

     35  

Statements of Operations

     36  

Statements of Changes in Net Assets

     37-38  

Financial Highlights

     39-40  

Notes to Financial Statements

     41-56  

Changes to the Board of Trustees and Fund Officers

     57  

Privacy Policy

     58-60  


Table of Contents

AllianzGI Advanced Core Bond Portfolio

(unaudited)

For the period of October 1, 2017 through March 31, 2018, as provided by Christian Tropp, CFA, Lead Portfolio Manager.

 

  Portfolio Insights

Performance Overview

For the six-month period ending March 31, 2018, the AllianzGI Advanced Core Bond Portfolio (the “Portfolio”) returned -1.34% (net of fees) underperforming the Bloomberg Barclays U.S. Aggregate Bond Index (the “benchmark”), which returned -1.08%.

Market Overview

Over the reporting period, the index yield of the benchmark, as provided by Bloomberg Finance L.P., increased by 57 basis points. Broken down by sub-indices of the benchmark, the strongest increase in yield was realized in asset-based securities (“ABS”) (83 basis points), followed by covered bonds (73 basis points), government-related bonds (62 basis points), and corporate bonds (61 basis points). The total return of the benchmark (-1.08%) can be broken down into segment performance as follows: the US Treasury sub index performed -1.13%, the government-related sub-index returned -0.73%, the corporate-related sub-index returned -1.17%, and the US mortgage-backed securities (“MBS”) sub-index realized a total return of -1.04%. Looking at the various rating segments of the benchmark, we observe that the worst performance was shown by A-rated bonds

(-1.38%), while Aa-rated bonds had the highest total return (-0.75%). Analyzing the maturity segments of the benchmark, we observe that highest total return was realized by the 1-3 Year sub-index (-0.41%), followed by the 10+ Year sub-index (-0.83%). The worst performance was shown by the 7-10 Year sub-index (-1.50%), followed by the 5-7 Year (-1.32%) and 3-5 Year (-1.22%) sub-indices.

Portfolio review

According to a performance attribution analysis provided by IDS GmbH, effective duration, yield, other factors, and selection had positive contributions to the Portfolio’s active return against the benchmark, while term structure and sector had negative contributions. Additionally, quality and currency were neutral contributors.

Outlook

At the end of the six-month reporting period the yield of the Portfolio’s investment universe, as measured by the benchmark yield, was 3.1%, as provided by Bloomberg Finance L.P. The benchmark segment with the highest yield was corporate bonds (3.8%), followed by US MBS and Commercial Mortgage-Backed Securities

(“CMBS”) (3.3% each) and government-related bonds (3.1%). The segment of the benchmark with the lowest yield was US Treasury, which yielded 2.5%.

Economic growth appears to be underpinned by the solid environment for private consumption given low financing costs and a good labor market developments. Also, the Tax Cut and Jobs Act could lead to higher growth and, more worrisome, higher inflation in the US with a potential spillover to European markets. For a more classical recovery with higher growth rates an improvement on the investment side might be needed. Latest data here appeared to be encouraging. Risks to growth seem to mainly stem from the transition in China. Also, potential changes in monetary policy could influence markets. A further case appears to be the reduction of reinvestments in order to reduce the balance sheet size by the US Federal Reserve. Also, it seems that the European Central Bank has reduced its buying amount in 2018. Hence, it appears that the momentum for provision of liquidity by the central banks will decline and we believe the peak in global liquidity could be reached this year.

 

  Average Annual Total Return for the period ended March 31, 2018

              
     6 Month*    1 Year    Since Inception
                

  AllianzGI Advanced Core Bond Portfolio

 

      

 

-1.34%

 

 

      

 

-0.79%

 

 

      

 

1.38%

 

 

  Bloomberg Barclays U.S. Aggregate Bond Index

 

      

 

-1.08%

 

 

      

 

1.20%

 

 

      

 

1.68%

 

 

* Cumulative return.

† The Portfolio began operations on October 30, 2015. Benchmark return comparisons began on the portfolio inception date.

†† The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and US dollar denominated. The index covers the US investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. 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 Portfolio’s gross expense ratio is 0.44%. This ratio does not include an expense reduction, contractually agreed to through January 31, 2019. The Portfolio’s expense ratio net of this reduction is 0.35%. Expense ratio information is as of the Portfolio’s current Private Placement Memorandum (“PPM”) dated February 1, 2018.

Portfolio Review commentary is based on the Wilshire Axiom Performance Attribution Analysis. Wilshire Axiom uses a position based approach and performance is linked daily. Please note that the different prices and different methodologies used in this attribution report, among others, may cause deviation in return figures to official performance.

 

   2    Semi-Annual Report / March 31, 2018            


Table of Contents

AllianzGI Advanced Core Bond Portfolio

(unaudited) (continued)

 

 Industry/Sectors (as of March 31, 2018)

 

 U.S. Treasury Obligations

     34.7

 U.S. Government Agency Securities

     27.7

 Banks

     20.5

 Sovereign Debt Obligations

     10.7

 Auto Manufacturers

     4.5

 Oil, Gas & Consumable Fuels

     3.8

 Food & Beverage

     3.0

 Pharmaceuticals

     2.8

 Other

     18.7

 Cash & Equivalents — Net

     -26.4

 

 Moody’s Ratings (as of March 31, 2018)

(as a % of total investments)

 

LOGO

 Cumulative Returns through March 31, 2018

               (in thousands)

LOGO

 

Bond ratings refer to the underlying holdings of the Portfolio and are categorized from highest to lowest credit quality using ratings provided by Moody’s. Moody’s ratings have been selected for several reasons, including the access to information and materials provided by Moody’s, as well as the Portfolio’s consideration of industry practice. See “Important Information” for more detail on the selection of Moody’s for the Portfolio’s ratings presentation. Bonds not rated by Moody’s and bonds that do not currently have a rating available are designated in the chart above, if applicable, as “NR” and “NA”, respectively.

 

 Shareholder Expense Example

  Actual Performance  

 

 Beginning Account Value (10/1/17)

  $1,000.00

 Ending Account Value (3/31/18)

  $   986.60

 Expenses Paid During Period

  $       1.73
 
    Hypothetical Performance  
    (5% return before expenses)

 Beginning Account Value (10/1/17)

  $1,000.00

 Ending Account Value (3/31/18)

  $1,023.19

 Expenses Paid During Period

  $       1.77

Expenses (net of reimbursement, if any) are equal to the annualized expense ratio (0.35%), multiplied by the average account value over the period, multiplied by 182/365.

 

   3    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Best Styles Global Managed Volatility Portfolio

(unaudited)

For the period of October 1, 2017 through March 31, 2018, as provided by Christian McCormick, Senior Product Specialist.

 

 Portfolio Insights

 

Performance Overview

For the six-month period ended March 31, 2018, the AllianzGI Best Styles Global Managed Volatility Portfolio (the “Portfolio”) returned 4.26%, outperforming the MSCI ACWI Minimum Volatility Index (the “benchmark”), which returned 3.99%.

Market Overview

It was a volatile quarter for global equities, which started the year strongly before suffering sell-offs in February and March. Initially stocks rallied, boosted by ongoing optimism over the health of the global economy and by expectations that tax reforms would help to lift US company profits. However, signs of rising inflationary pressures and higher bond yields led to a sharp correction in February. While stocks later recovered some of these losses, the Trump administration’s decision to impose tariffs on a raft of imports led to escalating fears of a global trade war, causing stocks to retreat once more. Despite record levels of global mergers and acquisitions activity, most equity markets ended the quarter with losses.

Portfolio Overview

The Portfolio’s strategies implement a blend of five investment styles that are well-diversified and successful over the long term. This blend of investment styles includes: Value, Price Momentum, Earnings Change, Growth and Quality. Over the trailing twelve months, the style Value underperformed globally, and across most regions except for emerging markets. The trend following styles of Price Momentum and Earnings Change outperformed while Growth was the worst relative performer of our five target investment styles.

The Portfolio’s strategy has only moderate leeway for sector and regional allocation with a maximum deviation of 3% vs. the benchmark for active weightings. The overall contribution from active country/sector allocation was benign.

The Portfolio holds a broad number of stocks to implement what we believe is a well-diversified mix of investment styles and assigns a maximum active weighting of 1% to individual

stocks. Therefore, we expect stock selection to be the biggest driver of relative returns and this was the case over the past six months. Stock selection in the energy and healthcare sectors were the largest contributors along with Switzerland from a country context. Stock selections within the information technology and industrials sectors, along with Japan, were the biggest detractors to performance.

Outlook

The Portfolio’s strategy is a diversified mix of hundreds of securities that seeks to harvest the long-term risk premiums associated with Value, Price Momentum, Earnings Change, Growth, and Quality. Around these premiums, we use a quantitative process, that we believe helps to minimize risk and create a stable excess return stream independent of market and economic environments. Therefore, we do not provide a market or economic outlook.

 

 

 Average Annual Return for the period ended March 31, 2018

 

     6 Month*    1 Year    Since Inception

 

AllianzGI Best Styles Global Managed Volatility Portfolio

 

   4.26%

 

   13.28%

 

   12.82%

 

MSCI ACWI Minimum Volatility Index

 

   3.99%

 

   10.65%

 

   9.19%

 

* Cumulative return.

† The Portfolio began operations on April 11, 2016. Benchmark return comparisons began on the portfolio inception date.

†† The MSCI ACWI Minimum Volatility Index aims to reflect the performance characteristics of a minimum variance strategy applied to large and mid-cap equities across developed markets and emerging markets countries. The index is calculated by optimizing the MSCI ACWI Index, its parent index, for the lowest absolute risk (within a given set of constraints). Historically, the index has shown lower beta and volatility characteristics relative to the MSCI ACWI 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 Portfolio’s gross expense ratio is 0.83%. This ratio does not include an expense reduction, contractually agreed to through January 31, 2019. The Portfolio’s expense ratio net of this reduction is 0.45%. Expense ratio information is as of the Portfolio’s current PPM dated February 1, 2018.

 

   4    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Best Styles Global Managed Volatility Portfolio

(unaudited) (continued)

 

 Country Allocation (as of March 31, 2018)

 

 United States

     51.5

 Japan

     13.5

 Taiwan

     5.5

 Canada

     3.4

 China

     2.8

 Switzerland

     2.3

 Hong Kong

     2.2

 France

     2.0

 Other

     15.3

 Cash & Equivalents — Net

     1.5

 Cumulative Returns through March 31, 2018

                (in thousands)

LOGO

 

 Shareholder Expense Example

  Actual Performance  

 Beginning Account Value (10/1/17)

  $1,000.00

 Ending Account Value (3/31/18)

  $1,042.60

 Expenses Paid During Period

  $       2.29
 
    Hypothetical Performance  
    (5% return before expenses)

 Beginning Account Value (10/1/17)

  $1,000.00

 Ending Account Value (3/31/18)

  $1,022.69

 Expenses Paid During Period

  $       2.27

Expenses (net of reimbursement, if any) are equal to the annualized expense ratio (0.45%), multiplied by the average account value over the period, multiplied by 182/365.

 

   5    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Global Small-Cap Opportunities Portfolio

(unaudited)

For the period of October 1, 2017 through March 31, 2018, as provided by Kunal Ghosh, Portfolio Manager.

 

 Portfolio Insights

 

Performance Overview

For the six-month period ended March 31, 2018, the AllianzGI Global Small-Cap Opportunities Portfolio (the “Portfolio”) returned 4.02%, underperforming the MSCI All Country World Small-Cap Index (the “benchmark”), which returned 5.17%.

Market Overview

During the reporting period, the macroeconomic climate was favorable and investors gravitated toward the attractive growth and valuation profile of global small-cap equities.

Global small-cap equities advanced at the onset of the reporting period, buoyed by strong earnings growth and optimism over the health of the global economy, as the benchmark posted low-single digit advances in each of the initial four months. Higher-risk, pro-cyclical segments of the market were among the top performers given the broad asset class advance and the low-to-moderate levels of volatility. The benchmark performance results moderated in February and March due to concerns over a global trade war, the impact from mounting geopolitical tensions in Russia, and prospects that rising inflation expectations which could lead the US Federal Reserve (the “Fed”) to accelerate rate hikes. In this period, defensive stocks were among the top performers for the benchmark.

Benchmark county results were broadly higher, with 36 of 47 countries posting gains. Emerging market countries were among the outperformers, with Egypt, South Korea and

South Africa posting the highest gains. Japan, the second largest benchmark weight, posted a low double-digit gain, while the United States, by far the largest benchmark weight, was advanced mid-single-digits. Meanwhile, Poland, Peru and the Philippines each declined due primarily to country-specific macroeconomic headwinds.

Sector results were mostly higher, with nine out of 11 benchmark sectors advancing. Health care was the top performer followed closely by information technology, each posting a double-digit gain for the semi-annual period. Conversely, energy and telecommunication services were the only two sectors to post declines during the reporting period.

Portfolio Review

The Portfolio seeks to benefit from the vast inefficiencies in global small-cap equities. Results trailed the benchmark due to outperformance of higher-beta securities, which the Portfolio was underweight, in the initial months of the reporting period.

The Portfolio’s sector results were aided by bottom-up stock selection in financials, followed closely by stockpicking in real-estate and consumer discretionary sectors. Meanwhile, a relative overweight allocation and stock selection within utilities offset results, as did more conservative stock selection in health care and information technology, the two top performing sectors for the benchmark. From a country standpoint, bottom-up stock selection in Denmark, China and Hong Kong outpaced the benchmark during the reporting period. Conversely, Poland was the primary laggard

due to a relative overweight allocation and stock selection, followed by selections in New Zealand, the Philippines and Greece.

Outlook

While uncertainty regarding the recent trade and political climate may cloud short-term visibility, our viewpoint for global small-cap equities remains optimistic. Global economic activity continues to increase at a healthy rate and Street analysts are anticipating a greater than 20% earnings growth for the asset class in 2018. This strong growth potential, coupled with the idiosyncratic opportunities of global small-cap equities, may offset any forthcoming macroeconomic headwinds in terms of a tariff war or geopolitical impacts. Furthermore, we believe global small-cap equities remain attractive due to their higher alpha potential and impact from active management given the greater inefficiencies in the asset class.

We continue to construct the Portfolio on a bottom-up basis at the stock level. In addition, we apply a dual risk-budget, targeting a moderate tracking error and lower forecast risk than the benchmark, which may help protect capital during inevitable down market periods and provide our clients with a greater level of return consistency. We believe investment results will be supported by earnings growth and our behavioral finance-focused investment process and focus on higher quality securities with attractive company fundamentals will be a driver of returns for the coming periods.

 

 

 Average Annual Total Return for the period ended March 31, 2018

        
     6 Month*       1 Year       Since Inception   

AllianzGI Global Small-Cap Opportunities Portfolio

 

    

 

4.02% 

 

 

 

    

 

20.08% 

 

 

 

    

 

10.20% 

 

 

 

MSCI All Country World Small-Cap Index

 

    

 

5.17% 

 

 

 

    

 

16.21% 

 

 

 

    

 

7.70% 

 

 

 

* Cumulative return.

† The Portfolio began operations on July 23, 2014. Benchmark return comparisons began on the portfolio inception date.

†† The MSCI All Country World Small-Cap Index captures small-cap representation across developed markets and emerging markets countries. The Index covers about 14% of the free float-adjusted market capitalization in each country. 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 Portfolio’s gross expense ratio is 4.25%. This ratio does not include an expense reduction, contractually agreed to through January 31, 2019. The Portfolio’s expense ratio net of this reduction is 1.20%. Expense ratio information is as of the Portfolio’s current PPM dated February 1, 2018.

 

   6    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Global Small-Cap Opportunities Portfolio

(unaudited) (continued)

 

 Country Allocation (as of March 31, 2018)

 

 United States

     46.6

 Japan

     8.7

 United Kingdom

     6.4

 China

     4.9

 Canada

     3.6

 Hong Kong

     3.0

 Taiwan

     2.6

 Australia

     2.6

 Other

     21.3

 Cash & Equivalents — Net

     -0.3

 Cumulative Returns through March 31, 2018

                (in thousands)

LOGO

 

 Shareholder Expense Example

  Actual Performance  

 

 Beginning Account Value (10/1/17)

  $1,000.00

 Ending Account Value (3/31/18)

  $1,140.20

 Expenses Paid During Period

  $       6.10
 
    Hypothetical Performance  
    (5% return before expenses)

 Beginning Account Value (10/1/17)

  $1,000.00

 Ending Account Value (3/31/18)

  $1,018.95

 Expenses Paid During Period

  $       6.04

Expenses (net of reimbursement, if any) are equal to the annualized expense ratio (1.20%), multiplied by the average account value over the period, multiplied by 182/365.

 

   7    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Institutional Multi-Series Trust

Important Information (unaudited)

As of March 31, 2018, AllianzGI Institutional Multi-Series Trust (the “Trust”) consisted of three investment series, AllianzGI Advanced Core Bond Portfolio, AllianzGI Best Styles Global Managed Volatility Portfolio and AllianzGI Global Small-Cap Opportunities Portfolio, (each a “Portfolio” and collectively the “Portfolios”). The Portfolios each currently offer one share class.

The Cumulative Returns charts for each Portfolio assume the initial investment was made on the first day of each Portfolio’s 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 each Portfolio’s inception date.

The following disclosure provides important information regarding each Portfolio’s Shareholder Expense Example, which appears on each Portfolio Summary page in this Semi-Annual report. Please refer to this information when reviewing the Shareholder Expense Example for each 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 a 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 of the period, as indicated, and held for the entire period through March 31, 2018.

Actual Expenses

The information in the table under the heading “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 titled “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 tables for “Hypothetical Performance (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on a Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Portfolio’s 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 a 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 may have been higher.

Proxy Voting

The Portfolios’ Investment Manager has 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 Investment Manager will use when voting proxies on behalf of each Portfolio. Copies of the written Proxy Policy and the factors that the Investment Manager may consider in determining how to vote proxies for each Portfolio, and information about how each 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, on the Allianz Global Investors website at us.allianzgi.com and on the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

 

   8    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Institutional Multi-Series Trust

Important Information (unaudited) (continued)

 

Form N-Q

The Trust files complete schedules of each Portfolio’s holdings with the SEC on Form N-Q for the first and third quarters of each fiscal year, which are available on the SEC’s website at http://www.sec.gov. A copy of the Trust’s Form N-Q is available without charge, upon request, by calling 1-800-498-5413. In addition, the Trust’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Credit Ratings

Bond ratings apply to the underlying holdings of a Portfolio and not the Portfolio itself and are divided into categories ranging from highest to lowest credit quality, determined for purposes of presentations in this report by using ratings provided by Moody’s Investors Service, Inc. (“Moody’s”).

Unless otherwise noted, presentations of credit ratings information in this report use ratings provided by Moody’s because of, among other reasons, the access to background information and other materials provided by Moody’s, as well as the Portfolios’ considerations of industry practice.

Bonds not rated by Moody’s or bonds that do not have a rating available are designated as “NR” and “NA”, respectively. Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change periodically, even as frequently as daily. Ratings assigned by Moody’s or another rating agency are not absolute standards of credit quality and do not evaluate market risk. Rating agencies may fail to make timely changes in credit ratings, and an issuer’s current financial condition may be better or worse than a rating indicates. In formulating investment decisions for the applicable Portfolios, Allianz Global Investors U.S. LLC, the Investment Manager to the Portfolios, develops its own analysis of the credit quality and risks associated with individual debt instruments, rather than relying exclusively on rating agencies or third-party research.

All the information on the Portfolio Summary pages, including Portfolio Insights, Average Annual Total Return Tables, Cumulative Return Charts, Shareholder Expense Examples and Allocation/Credit Rating Summaries is unaudited.

Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY, 10019, us.allianzgi.com, 1-800-498-5413.

 

   9    Semi-Annual Report / March 31, 2018        


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

 

     

Principal

Amount

(000s)

            Value

CORPORATE BONDS & NOTES - 53.3%

       

Aerospace & Defense - 0.8%

       

Northrop Grumman Corp.,

       

2.08%, 10/15/20

   $                     750        $ 733,994   

United Technologies Corp.,

       

1.90%, 5/4/20

     350          343,171  

4.15%, 5/15/45

     200          193,772  
       

 

 

 

 

                1,270,937

 

 

 

 

Agriculture - 0.8%

       

Altria Group, Inc.,

       

5.375%, 1/31/44

     200          230,263  

Cargill, Inc. (a)(b),

       

3.25%, 3/1/23

     100          100,075  

Philip Morris International, Inc.,

       

2.00%, 2/21/20

     800          788,418  

2.375%, 8/17/22

     200          192,903  
       

 

 

 

 

1,311,659

 

 

 

 

Auto Manufacturers - 4.5%

       

American Honda Finance Corp.,

       

1.95%, 7/20/20

     500          490,051  

2.00%, 2/14/20

     800          788,234  

2.60%, 11/16/22

     750          735,230  

Daimler Finance North America LLC (a)(b),

       

2.00%, 7/6/21

     500          481,278  

2.30%, 2/12/21

     750          731,894  

Ford Motor Credit Co. LLC,

       

2.681%, 1/9/20

     850          841,962  

General Motors Co.,

       

5.15%, 4/1/38

     200          199,506  

General Motors Financial Co., Inc.,

       

2.35%, 10/4/19

     350          346,541  

2.65%, 4/13/20

     350          345,764  

3.95%, 4/13/24

     300          298,107  

Kia Motors Corp. (a)(b),

       

3.50%, 10/25/27

     750          714,082  

PACCAR Financial Corp.,

       

1.65%, 8/11/21

     500          479,177  

2.30%, 8/10/22

     250          242,411  

Toyota Motor Credit Corp.,

       

1.95%, 4/17/20

     800          788,154  
       

 

 

 

 

7,482,391

 

 

 

 

Banks - 20.5%

       

Banco Bilbao Vizcaya Argentaria S.A.,

       

3.00%, 10/20/20

     1,000          993,353  

Bank Nederlandse Gemeenten NV (a)(b),

       

1.625%, 4/19/21

     800          774,558  

2.375%, 3/16/26

     500          477,781  

Bank of America Corp.,

       

2.65%, 4/1/19, Ser. L

     800          800,027  

4.00%, 4/1/24

     400          409,177  

5.625%, 7/1/20

     600          633,159  

Bank of Montreal,

       

2.10%, 6/15/20

     850          833,896  

2.35%, 9/11/22

     800          771,435  

Bank of New York Mellon Corp.,

       

2.60%, 2/7/22

     800          785,294  

Bank of Nova Scotia,

       

1.85%, 4/14/20

     350          343,625  

1.875%, 4/26/21

     798          774,549  

2.15%, 7/14/20

     850          834,866  

2.80%, 7/21/21

     300          298,080  

Barclays PLC,

       

2.75%, 11/8/19

     850          844,616  

4.375%, 1/12/26

     550          553,107  

4.95%, 1/10/47

     300          307,975  

BNZ International Funding Ltd. (a)(b),

       

3.375%, 3/1/23

     300          297,731  

 

See accompanying Notes to Financial Statements    10   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

     

Principal

Amount

(000s)

             Value

Citigroup, Inc.,

        

4.50%, 1/14/22

                         700           728,265   

4.65%, 7/30/45

     100           107,263  

8.125%, 7/15/39

     300           455,690  

Commonwealth Bank of Australia (a)(b),

        

2.85%, 5/18/26

     500           471,252  

Credit Suisse AG,

        

2.30%, 5/28/19

     850           845,464  

Deutsche Bank AG,

        

2.85%, 5/10/19

     850           847,223  

3.375%, 5/12/21

     400           395,639  

Dexia Credit Local S.A. (a)(b),

        

1.875%, 3/28/19

     400           397,722  

Fifth Third Bancorp,

        

2.60%, 6/15/22

     400           388,249  

Goldman Sachs Group, Inc.,

        

2.55%, 10/23/19

     500           497,733  

6.00%, 6/15/20, Ser. D

     400           423,965  

ING Bank NV (a)(b),

        

2.625%, 12/5/22

     750           739,513  

JPMorgan Chase & Co.,

        

3.625%, 5/13/24

     650           648,591  

4.40%, 7/22/20

     800           824,434  

5.40%, 1/6/42

     250           296,060  

6.30%, 4/23/19

     500           518,839  

KFW,

        

1.25%, 9/30/19

     800           786,819  

1.50%, 4/20/20

     1,200           1,176,284  

Landwirtschaftliche Rentenbank, Ser. 37,

        

2.50%, 11/15/27

     400           385,930  

Macquarie Bank Ltd. (a)(b),

        

2.35%, 1/15/19

     300           299,361  

3.90%, 1/15/26

     700           702,629  

Morgan Stanley,

        

2.50%, 4/21/21

     500           489,369  

2.80%, 6/16/20

     850           845,269  

4.375%, 1/22/47

     300           307,338  

National Australia Bank Ltd.,

        

2.625%, 1/14/21

     200           197,454  

Oesterreichische Kontrollbank AG,

        

1.75%, 1/24/20

     800           790,304  

Royal Bank of Canada,

        

1.875%, 2/5/20

     196           193,312  

2.125%, 3/2/20

     800           787,941  

2.30%, 3/22/21

     700           688,733  

Royal Bank of Scotland Group PLC,

        

3.875%, 9/12/23

     300           296,209  

Santander UK PLC,

        

4.00%, 3/13/24

     400           408,340  

State Street Corp.,

        

2.55%, 8/18/20

     850           845,674  

Svenska Handelsbanken AB,

        

2.50%, 1/25/19

     500           499,437  

Toronto-Dominion Bank,

        

1.80%, 7/13/21

     400           384,021  

1.90%, 10/24/19

     750           740,460  

2.25%, 3/15/21 (a)(b)

     750           737,029  

UBS AG,

        

2.375%, 8/14/19

     550           546,517  

Wells Fargo & Co.,

        

2.125%, 4/22/19

     350           347,769  

2.50%, 3/4/21

     600           589,449  

3.45%, 2/13/23, Ser. M

     400           395,416  

Westpac Banking Corp.,

        

2.00%, 3/3/20

     350           345,572  

2.85%, 5/13/26

     800           754,711  
        

 

 

 

 

 

 

                33,860,478

 

 

 

 

 

 

See accompanying Notes to Financial Statements    11   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

 

     

      Principal      

Amount

(000s)

             Value

Biotechnology - 0.5%

        

Amgen, Inc.,

        

2.25%, 8/19/23

                         500           472,734   

Gilead Sciences, Inc.,

        

1.85%, 9/20/19

     400           395,168  
        

 

 

 

 

                    867,902

 

 

 

 

Building Materials - 0.2%

        

CRH America Finance, Inc. (a)(b),

        

3.95%, 4/4/28

     350          

 

350,351

 

 

 

Chemicals - 0.5%

        

Dow Chemical Co.,

        

7.375%, 11/1/29

     300           392,196  

Potash Corp. of Saskatchewan, Inc.,

        

4.00%, 12/15/26

     500           500,572  
        

 

 

 

 

892,768

 

 

 

 

Commercial Services - 0.1%

        

Ecolab, Inc.,

        

2.375%, 8/10/22

     250          

 

242,347

 

 

 

Consumer Products - 1.5%

        

Colgate-Palmolive Co.,

        

2.25%, 11/15/22

     750           727,103  

3.70%, 8/1/47

     500           479,160  

Procter & Gamble Co.,

        

1.90%, 10/23/20

     300           294,844  

3.50%, 10/25/47

     100           95,604  

Unilever Capital Corp.,

        

1.80%, 5/5/20

     850           834,625  
        

 

 

 

 

2,431,336

 

 

 

 

Electric Utilities - 1.4%

        

Consolidated Edison Co. of New York, Inc., Ser. 12-A,

        

4.20%, 3/15/42

     200           205,915  

Electricite de France S.A. (a)(b),

        

2.15%, 1/22/19

     300           298,503  

4.875%, 1/22/44

     300           322,113  

Enel Finance International NV,

        

6.80%, 9/15/37

     150           189,333  

Florida Power & Light Co.,

        

3.70%, 12/1/47

     200           195,942  

3.95%, 3/1/48

     300           305,833  

Georgia Power Co., Ser. C,

        

2.00%, 9/8/20

     500           489,668  

Pacific Gas & Electric Co.,

        

4.00%, 12/1/46

     300           281,406  
        

 

 

 

 

2,288,713

 

 

 

 

Electronics - 0.6%

        

Honeywell International, Inc.,

        

1.80%, 10/30/19

     750           740,718  

Tyco Electronics Group S.A.,

        

3.45%, 8/1/24

     300           301,719  
        

 

 

 

 

1,042,437

 

 

 

 

Food & Beverage - 3.0%

        

Anheuser-Busch InBev Finance, Inc.,

        

2.65%, 2/1/21

     500           496,445  

4.90%, 2/1/46

     150           161,427  

Coca-Cola Co.,

        

1.375%, 5/30/19

     850           839,705  

Diageo Capital PLC,

        

3.875%, 4/29/43

     250           250,207  

Dr. Pepper Snapple Group, Inc.,

        

4.42%, 12/15/46

     300           282,070  

General Mills, Inc.,

        

2.60%, 10/12/22

     750           720,945  

Kellogg Co.,

        

3.40%, 11/15/27

     750           715,662  

Kraft Heinz Foods Co.,

        

5.375%, 2/10/20

     400           416,634  

Kroger Co.,

        

3.70%, 8/1/27

     250           242,888  

4.65%, 1/15/48

     200           194,511  

 

See accompanying Notes to Financial Statements    12   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

      Principal      
Amount      
(000s)      
             Value

PepsiCo, Inc.,

        

1.55%, 5/2/19

     350           346,701  

2.15%, 10/14/20

     300           296,397  
          

 

4,963,592

 

 

 

Healthcare-Products - 0.3%

        

Abbott Laboratories,

        

2.35%, 11/22/19

     221           219,391  

Thermo Fisher Scientific, Inc.,

        

4.10%, 8/15/47

     200           194,674  
          

 

414,065

 

 

 

Insurance - 0.7%

        

Allstate Corp.,

        

3.28%, 12/15/26

     500           489,841  

MetLife, Inc.,

        

5.70%, 6/15/35

     550           661,682  
          

 

        1,151,523

 

 

 

Internet - 0.5%

        

Alphabet, Inc.,

        

3.375%, 2/25/24

     300           305,283  

Booking Holdings, Inc.,

        

3.55%, 3/15/28

     500           484,578  
          

 

789,861

 

 

 

IT Services - 0.4%

        

International Business Machines Corp.,

        

1.80%, 5/17/19

     300           297,615  

1.90%, 1/27/20

     350           345,114  
          

 

642,729

 

 

 

Machinery-Construction & Mining - 0.5%

        

Caterpillar Financial Services Corp.,

        

2.10%, 1/10/20

     850           840,312  

Machinery-Diversified - 1.4%

        

CNH Industrial Capital LLC,

        

4.875%, 4/1/21

     150           154,692  

John Deere Capital Corp.,

        

1.95%, 6/22/20

     650           637,309  

2.65%, 6/24/24

     250           240,395  

2.80%, 3/6/23

     500           490,571  

3.05%, 1/6/28

     800           768,378  
          

 

2,291,345

 

   

 

Media - 1.9%

        

CBS Corp.,

        

2.30%, 8/15/19

     400           396,946  

3.70%, 6/1/28 (a)(b)

     750           716,248  

Comcast Corp.,

        

6.45%, 3/15/37

     500           642,386  

Discovery Communications LLC,

        

3.80%, 3/13/24

     500           496,059  

6.35%, 6/1/40

     150           169,916  

Time Warner Cable LLC,

        

6.75%, 6/15/39

     300           341,979  

Time Warner, Inc.,

        

4.875%, 3/15/20

     300           310,346  
          

 

3,073,880

 

 

 

Mining - 0.4%

        

Glencore Funding LLC (a)(b),

        

3.00%, 10/27/22

     750           724,595  

Miscellaneous Manufacturing - 0.4%

        

General Electric Co.,

        

5.50%, 1/8/20

     400           415,436  

Siemens Financieringsmaatschappij NV (a)(b),

        

4.40%, 5/27/45

     300           325,508  
           740,944  

 

See accompanying Notes to Financial Statements    13   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

      Principal      
Amount      
(000s)      
             Value

Oil, Gas & Consumable Fuels - 3.8%

        

BP Capital Markets PLC,

        

1.768%, 9/19/19

     700           690,408  

2.237%, 5/10/19

     850           846,407  

2.315%, 2/13/20

     800           791,862  

3.723%, 11/28/28

     400           403,247  

CNOOC Nexen Finance 2014 ULC,

        

4.25%, 4/30/24

     300           304,983  

Occidental Petroleum Corp.,

        

3.00%, 2/15/27

     300           288,584  

Phillips 66,

        

4.875%, 11/15/44

     300           319,027  

Shell International Finance BV,

        

2.125%, 5/11/20

     850           837,011  

3.75%, 9/12/46

     300           290,222  

6.375%, 12/15/38

     150           199,688  

Sinopec Group Overseas Development 2016 Ltd. (a)(b),

        

2.125%, 5/3/19

     200           198,111  

Statoil ASA,

        

2.65%, 1/15/24

     400           386,162  

2.90%, 11/8/20

     400           400,011    

Total Capital International S.A.,

        

2.10%, 6/19/19

     350           347,756  
        

 

 

 

 

            6,303,479

 

 

 

 

Paper & Forest Products - 0.2%

        

International Paper Co.,

        

4.35%, 8/15/48

     300          

 

284,777

 

 

 

Pharmaceuticals - 2.8%

        

AstraZeneca PLC,

        

1.95%, 9/18/19

     400           395,029  

Bristol-Myers Squibb Co.,

        

1.60%, 2/27/19

     850           842,991  

CVS Health Corp.,

        

4.10%, 3/25/25

     800           806,829  

Johnson & Johnson,

        

1.95%, 11/10/20

     300           295,000  

4.375%, 12/5/33

     250           274,474  

Merck & Co., Inc.,

        

1.85%, 2/10/20

     850           838,950  

Novartis Capital Corp.,

        

1.80%, 2/14/20

     800           787,486  

Pfizer, Inc.,

        

1.70%, 12/15/19

     350           345,356  
        

 

 

 

 

4,586,115

 

 

 

 

Pipelines - 0.3%

        

Enterprise Products Operating LLC,

        

4.85%, 3/15/44

     100           105,471  

Kinder Morgan, Inc.,

        

3.15%, 1/15/23

     350           340,177  
        

 

 

 

 

445,648

 

 

 

 

Retail - 1.0%

        

Macy’s Retail Holdings, Inc.,

        

4.50%, 12/15/34

     300           263,483  

McDonald’s Corp.,

        

4.875%, 12/9/45

     200           217,445  

Target Corp.,

        

2.30%, 6/26/19

     350           349,321  

Walgreens Boots Alliance, Inc.,

        

2.70%, 11/18/19

     300           298,531  

4.50%, 11/18/34

     500           494,302  
        

 

 

 

 

1,623,082

 

 

 

 

 

See accompanying Notes to Financial Statements    14   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

      Principal      
Amount      
(000s)      
             Value

Software - 0.5%

        

Microsoft Corp.,

        

3.30%, 2/6/27

     150           149,070  

Oracle Corp.,

        

2.625%, 2/15/23

     750           732,715  
        

 

 

 

 

881,785

 

 

 

 

Technology Hardware, Storage & Peripherals - 0.9%

        

Apple, Inc.,

        

1.90%, 2/7/20

     350           345,828  

2.25%, 2/23/21

     500           493,023  

3.35%, 2/9/27

     300           296,537  

4.65%, 2/23/46

     300           331,245  
        

 

 

 

 

1,466,633

 

 

 

 

Telecommunications - 2.0%

        

AT&T, Inc.,

        

4.80%, 6/15/44

     400           390,405  

5.15%, 2/14/50

     400           403,950  

Cisco Systems, Inc.,

        

2.45%, 6/15/20

     700           695,235  

5.50%, 1/15/40

     250           313,873  

Orange S.A.,

        

1.625%, 11/3/19

     850           832,821  

Verizon Communications, Inc.,

        

5.25%, 3/16/37

     300           323,830  

5.50%, 3/16/47

     250           276,423  
        

 

 

 

 

3,236,537

 

 

 

 

Transportation - 0.9%

        

CSX Corp.,

        

2.60%, 11/1/26

     150           137,402  

FedEx Corp.,

        

3.40%, 2/15/28

     300           292,219  

4.10%, 4/15/43

     300           288,917  

United Parcel Service, Inc.,

        

2.05%, 4/1/21

     750           733,689  
        

 

 

 

 

1,452,227

 

 

 

 

Total Corporate Bonds & Notes (cost-$89,175,380)

        

 

 

 

 

            87,954,448

 

 

   

 

U.S. TREASURY OBLIGATIONS - 34.7%

        

U.S. Treasury Bonds,

        

2.25%, 8/15/46

     2,200           1,893,547  

2.50%, 2/15/45

     670           611,637  

2.75%, 8/15/47

     150           143,273  

3.125%, 2/15/42

     2,505           2,587,391  

3.125%, 2/15/43

     1,100           1,133,687  

3.50%, 2/15/39

     1,550           1,703,426  

4.75%, 2/15/37

     550           704,215  

4.75%, 2/15/41

     1,260           1,645,186  

5.50%, 8/15/28

     400           499,094  

6.00%, 2/15/26

     300           370,242  

6.25%, 5/15/30

     150           203,637  

U.S. Treasury Notes,

        

1.125%, 9/30/21

     1,400           1,337,656  

1.375%, 3/31/20

     9,600           9,429,000  

1.50%, 12/31/18

     2,335           2,325,514  

1.50%, 8/15/26

     500           454,062  

1.625%, 5/15/26

     350           321,973  

1.75%, 10/31/20

     5,580           5,494,992  

1.75%, 11/15/20

     7,600           7,483,625  

1.75%, 3/31/22

     770           748,524  

1.75%, 1/31/23

     3,690           3,555,949  

1.875%, 10/31/22

     1,920           1,866,150  

2.00%, 11/15/26

     300           282,984  

2.125%, 1/31/21

     1,740           1,727,766  

2.125%, 6/30/22

     800           787,625  

2.125%, 3/31/24

     7,000           6,802,031  

2.125%, 5/15/25

     1,800           1,733,625  

2.25%, 3/31/21

     830           826,628  

2.25%, 11/15/27

     600           574,969  

Total U.S. Treasury Obligations (cost-$58,378,104)

        

 

 

 

 

57,248,408

 

 

 

 

 

See accompanying Notes to Financial Statements    15   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

      Principal      
Amount      
(000s)      
                  Value            

 

U.S. GOVERNMENT AGENCY SECURITIES - 27.7%

          

Fannie Mae, MBS, TBA (c),

          

2.50%, 4/17/33, 15 Year

     1,300                           1,273,191    

3.00%, 4/17/33, 15 Year

     2,050             2,046,628  

3.00%, 4/12/48, 30 Year

     4,220             4,112,576  

3.50%, 4/17/33, 15 Year

     890             907,189  

3.50%, 4/12/48, 30 Year

     5,290             5,297,918  

4.00%, 4/12/48, 30 Year

     3,370             3,456,982  

4.50%, 4/12/48, 30 Year

     1,390             1,455,161  

5.00%, 4/12/48, 30 Year

     1,150             1,228,249  

Freddie Mac,

          

2.50%, 4/17/33 MBS, TBA, 15 Year (c)

     880             861,348  

3.00%, 4/17/33 MBS, TBA, 15 Year (c)

     1,510             1,506,723  

3.00%, 4/12/48 MBS, TBA, 30 Year (c)

     2,910             2,835,042  

3.50%, 4/17/33 MBS, TBA, 15 Year (c)

     400             407,677  

3.50%, 4/12/48 MBS, TBA, 30 Year (c)

     3,510             3,516,226  

4.00%, 8/1/44

     129             132,550  

4.00%, 4/12/48 MBS, TBA, 30 Year (c)

     1,910             1,959,892  

4.50%, 4/12/48 MBS, TBA, 30 Year (c)

     870             910,715  

5.00%, 4/12/48 MBS, TBA, 30 Year (c)

     770             821,925  

Ginnie Mae, MBS, TBA, 30 Year (c),

          

3.00%, 4/19/48

     3,810             3,745,870  

3.50%, 4/19/48

     5,150             5,197,498  

4.00%, 4/19/48

     2,300             2,363,503  

4.50%, 4/19/48

     1,620             1,683,952  

 

Total U.S. Government Agency Securities (cost-$45,456,625)

          

 

 

 

 

45,720,815

 

 

 

 

SOVEREIGN DEBT OBLIGATIONS - 10.7%

          

Argentina - 0.3%

          

Argentine Republic Government International Bond,

          

4.625%, 1/11/23

     300             289,483  

6.25%, 4/22/19

     250             257,192  
          

 

 

 

 

546,675

 

 

 

 

Brazil - 0.2%

          

Brazilian Government International Bond,
4.25%, 1/7/25

     300            

 

299,868

 

 

 

Canada - 0.5%

          

Province of Alberta Canada,

          

1.90%, 12/6/19

     350             346,462  

Province of Quebec Canada,

          

2.875%, 10/16/24

     500             496,267  
          

 

 

 

 

842,729

 

 

 

 

Chile - 0.4%

          

Chile Government International Bond,

          

3.25%, 9/14/21

     400             403,583  

3.86%, 6/21/47

     200             197,185  
          

 

 

 

 

600,768

 

 

 

 

Colombia - 0.4%

          

Colombia Government International Bond,

          

4.00%, 2/26/24

     400             405,386  

5.00%, 6/15/45

     300             304,539  
          

 

 

 

 

709,925

 

 

 

 

Croatia - 0.3%

          

Croatia Government International Bond,
6.75%, 11/5/19

     500            

 

530,265

 

 

 

Germany - 0.7%

          

FMS Wertmanagement AoeR,
1.75%, 1/24/20

     1,200            

 

1,185,283

 

 

 

 

See accompanying Notes to Financial Statements    16   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

      Principal        
Amount        
(000s)         
                  Value            

Hungary - 0.3%

 

          

Hungary Government International Bond,
4.00%, 3/25/19

     500            

 

                    506,441

 

 

 

Indonesia - 0.7%

 

          

Indonesia Government International Bond,

          

3.75%, 4/25/22

     550             551,831  

11.625%, 3/4/19

     600             649,427  
          

 

 

 

 

1,201,258

 

 

 

 

Japan - 0.3%

 

          

Japan Bank for International Cooperation,
2.125%, 7/21/20

     500            

 

493,190

 

 

 

Korea (Republic of) - 0.2%

 

          

Export-Import Bank of Korea,
2.50%, 11/1/20

     400            

 

393,708

 

 

 

Latvia - 0.4%

 

          

Latvia Government International Bond,
2.75%, 1/12/20

     700            

 

698,273

 

 

 

Lithuania - 0.3%

 

          

Lithuania Government International Bond (a)(b),
7.375%, 2/11/20

     500            

 

541,729

 

 

 

Mexico - 0.4%

 

          

Mexico Government International Bond,

          

4.60%, 2/10/48

     450             429,030  

4.75%, 3/8/44

     200             194,246  
          

 

 

 

 

623,276

 

 

 

 

Morocco - 0.4%

 

          

Morocco Government International Bond,
4.25%, 12/11/22

     550            

 

562,446

 

 

 

Panama - 0.2%

 

          

Panama Government International Bond,
7.125%, 1/29/26

     250            

 

308,542

 

 

 

Peru - 0.5%

          

Peruvian Government International Bond,

          

4.125%, 8/25/27

     200             210,236  

7.125%, 3/30/19

     500             523,833  
          

 

 

 

 

734,069

 

 

 

 

Philippines - 0.2%

 

          

Philippine Government International Bond,
6.50%, 1/20/20

     300            

 

319,401

 

 

 

Supranational - 3.8%

 

          

Asian Development Bank,

          

1.375%, 1/15/19

     200             198,722  

1.625%, 3/16/21

     700             681,682  

Corp. Andina de Fomento,

          

2.00%, 5/10/19

     300             298,043  

2.20%, 7/18/20

     850             838,796  

Council of Europe Development Bank,
1.00%, 2/4/19

     1,000             989,280  

European Investment Bank,

          

1.625%, 8/14/20

     800             783,907  

2.875%, 9/15/20

     400             403,122  

Inter-American Development Bank,
3.20%, 8/7/42

     400             402,206  

International Bank for Reconstruction & Development,
1.875%, 10/7/19

     500             496,625  

International Finance Corp.,
1.75%, 9/16/19

     1,200             1,190,127  
          

 

 

 

 

6,282,510

 

 

 

 

 

See accompanying Notes to Financial Statements    17   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

      Principal        
Amount        
(000s)         
                  Value            

Sweden - 0.2%

          

Svensk Exportkredit AB,
1.75%, 5/18/20

     350            

 

                344,338

 

   

 

Total Sovereign Debt Obligations (cost-$17,841,196)

          

 

 

 

 

17,724,694

 

 

 

 

Repurchase Agreements - 0.6%

          

State Street Bank and Trust Co.,
dated 3/29/18, 0.28%, due 4/2/18, proceeds $1,049,033; collateralized by U.S. Treasury Notes, 2.50%,
due 5/15/24, valued at $1,074,248 including accrued interest (cost-$1,049,000)

     1,049            

 

1,049,000

 

 

 

Total Investments (cost-$211,900,305)-127.0%

          

 

 

 

209,697,365

 

 

Liabilities in excess of other assets (d)-(27.0)%

          

 

 

 

 

(44,522,564

 

 

 

Net Assets-100.0%

          

 

$

 

 

165,174,801

 

 

 

 

 

Notes to Schedule of Investments:

 

(a) Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $10,402,063, representing 6.3% of net assets.

 

See accompanying Notes to Financial Statements    18   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Advanced Core Bond Portfolio

 

 

(b) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $10,402,063, representing 6.3% of net assets.

 

(c) When-issued or delayed-delivery. To be settled/delivered after March 31, 2018.

 

(d) Includes net unrealized appreciation (depreciation) of other financial instruments as follows:

 

  Futures contracts outstanding at March 31, 2018:

 

Type           Contracts                     Expiration        
Date
            Notional Amount        
(000s)
   

        Market        
Value

(000s)

            Unrealized        
Depreciation
 

Short position contracts:

         

2-Year U.S. Treasury Note

    (196)             6/29/18       (39,200)               $ (41,671     $            (30,952)      

 

(e) At March 31, 2018, the Fund pledged $189,396 in cash as collateral for futures contracts. The Portfolio also held cash valued at $275,000 as collateral for TBA securities.

Glossary:

MBS - Mortgage-Backed Securities

TBA - To Be Announced

 

See accompanying Notes to Financial Statements    19   Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

      Shares                           Value            

COMMON STOCK - 98.5%

          

Australia - 1.1%

          

Breville Group Ltd.

     1,464             $                 13,192    

Brickworks Ltd.

     5,800             69,710  

Cochlear Ltd.

     1,199             168,396  

Regis Resources Ltd.

     34,827             122,124  

St. Barbara Ltd.

     32,198             99,312  

Wesfarmers Ltd.

     7,076             226,749  
          

 

 

 

 

699,483

 

 

 

 

Austria - 0.1%

          

Flughafen Wien AG

     961             39,435  

Telekom Austria AG (e)

     6,385             60,911  
          

 

 

 

 

100,346

 

 

 

 

Belgium - 0.1%

          

Elia System Operator S.A.

     999            

 

62,457

 

 

 

Canada - 3.4%

          

Agnico Eagle Mines Ltd.

     7,143             300,501  

BCE, Inc.

     7,489             322,265  

Canadian Imperial Bank of Commerce

     2,043             180,331  

Canadian Tire Corp., Ltd., Class A

     1,237             162,648  

Cascades, Inc.

     4,131             42,742  

Cogeco Communications, Inc.

     1,783             97,623  

Constellation Software, Inc.

     138             93,633  

Dollarama, Inc.

     1,575             191,418  

Dream Global Real Estate Investment Trust REIT

     5,020             53,576  

George Weston Ltd.

     1,126             90,650  

Intact Financial Corp.

     924             69,432  

Killam Apartment REIT

     2,174             23,422  

Laurentian Bank of Canada

     1,286             47,274  

Martinrea International, Inc.

     2,083             24,624  

NorthWest Healthcare Properties Real Estate Investment Trust REIT

     1,602             14,014  

Power Corp. of Canada

     5,617             128,179  

Pure Industrial Real Estate Trust REIT

     24,144             150,672  

Saputo, Inc.

     4,422             141,925  

Transcontinental, Inc., Class A

     2,390             47,212  

Valener, Inc.

     1,411             22,145  
          

 

 

 

 

2,204,286

 

 

 

 

China - 2.8%

          

China Construction Bank Corp., Class H

     286,748             299,509  

China Dongxiang Group Co., Ltd.

     128,883             22,534  

China Everbright Greentech Ltd. (a)(e)

     66,000             66,362  

China Evergrande Group (e)

     29,517             94,346  

China Huarong Asset Management Co., Ltd., Class H (a)

     463,000             196,261  

China Mobile Ltd.

     5,000             45,827  

Hopewell Highway Infrastructure Ltd.

     41,000             25,047  

Jiangsu Expressway Co., Ltd., Class H

     16,811             23,868  

Jiayuan International Group Ltd. (e)

     44,000             63,577  

Longfor Properties Co., Ltd.

     29,155             89,894  

Orient Securities Co., Ltd., Class H (a)

     29,600             27,714  

Postal Savings Bank of China Co., Ltd., Class H (a)

     194,000             123,045  

Shenzhen Expressway Co., Ltd., Class H

     46,300             47,289  

Tencent Holdings Ltd.

     10,900             585,107  

Tianneng Power International Ltd.

     43,658             52,013  

XTEP International Holdings Ltd.

     23,349             13,019  

Yuzhou Properties Co., Ltd.

     63,204             43,412  
          

 

 

 

 

1,818,824

 

 

 

 

Czech Republic - 0.2%

          

CEZ AS

     2,785             69,341  

O2 Czech Republic AS

     3,273             45,185  
          

 

 

 

 

114,526

 

 

 

 

Denmark - 0.5%

          

Solar A/S, Class B

     333             21,930  

Spar Nord Bank A/S

     733             8,743  

Topdanmark A/S (e)

     2,340             110,490  

William Demant Holding A/S (e)

     5,839             217,504  
          

 

 

 

 

358,667

 

 

 

 

 

 

See accompanying Notes to Financial Statements    20    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

                  Shares                    Value            

Finland - 0.6%

        

Elisa Oyj

                                 4,513           204,120  

Neste Oyj

     3,019           210,138  
          

 

414,258

 

 

 

France - 2.0%

        

Atos SE

     1,506           206,336  

BioMerieux

     1,830           150,718  

BNP Paribas S.A.

     807           59,848  

Cegereal S.A. REIT

     2,277           112,069  

Eiffage S.A.

     451           51,365  

Nexity S.A.

     633           40,541  

Orpea

     1,205           153,020  

SCOR SE

     3,781           154,360  

SEB S.A.

     36           6,886  

Vinci S.A.

     3,377           332,618  
          

 

              1,267,761

 

 

 

Germany - 0.5%

        

TAG Immobilien AG

     6,918           143,535  

Talanx AG (e)

     3,095           134,573  

WCM Beteiligungs & Grundbesitz AG

     5,562           26,779  
          

 

304,887

 

 

 

Hong Kong - 2.2%

        

CK Hutchison Holdings Ltd.

     3,703           44,493  

CLP Holdings Ltd.

     64,219           654,777  

Fairwood Holdings Ltd.

     11,000           43,243  

Hang Seng Bank Ltd.

     2,600           60,410  

Link REIT

     40,508           347,223  

Swire Pacific Ltd., Class A

     11,844           119,939  

WH Group Ltd. (a)

     113,000           121,078  

Yue Yuen Industrial Holdings Ltd.

     2,802           11,226  
          

 

1,402,389

 

 

 

Hungary - 0.4%

        

Magyar Telekom Telecommunications PLC

     28,291           50,487  

MOL Hungarian Oil & Gas PLC

     14,004           152,793  

Richter Gedeon Nyrt

     4,294           89,734  
          

 

293,014

 

 

 

India - 0.2%

        

Genpact Ltd.

     3,508          

 

112,221

 

 

 

Indonesia - 0.4%

        

Telekomunikasi Indonesia Persero Tbk PT

     1,055,000          

 

277,417

 

 

 

Ireland - 0.1%

        

Irish Residential Properties REIT PLC

     3,629           6,214  

Origin Enterprises PLC

     5,430          

 

35,745

 

 

 

          

 

41,959

 

  

 

Israel - 0.5%

        

Bank Leumi Le-Israel BM

     23,092           139,486  

Mizrahi Tefahot Bank Ltd.

     7,919           151,696  

Shufersal Ltd.

     7,306           46,707  
          

 

337,889

 

 

 

Italy - 0.6%

        

Fila SpA

     1,621           34,901  

Snam SpA

     78,847           362,444  
          

 

397,345

 

 

 

Japan - 13.5%

        

ANA Holdings, Inc.

     7,954           308,219  

Aoyama Trading Co., Ltd.

     189           7,426  

Asahi Group Holdings Ltd.

     5,100           274,271  

Astellas Pharma, Inc.

     26,208           400,877  

 

See accompanying Notes to Financial Statements    21    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

                  Shares                    Value            

Bandai Namco Holdings, Inc.

     4,200                           135,928  

BML, Inc.

     1,682           43,854  

Canon, Inc.

     4,190           152,006  

Daiichi Sankyo Co., Ltd.

     7,053           236,599  

DCM Holdings Co., Ltd.

     9,875           100,485  

Doutor Nichires Holdings Co., Ltd.

     3,649           86,730  

DTS Corp.

     1,401           48,766  

DyDo Group Holdings, Inc.

     974           61,363  

EDION Corp.

     4,727           54,650  

EPS Holdings, Inc.

     1,400           28,743  

Fuji Oil Holdings, Inc.

     4,384           133,285  

Fuji Soft, Inc.

     1,028           41,001  

FUJIFILM Holdings Corp.

     6,579           262,724  

Fukuyama Transporting Co., Ltd.

     554           24,198  

Geo Holdings Corp.

     864           13,727  

Hankyu Hanshin Holdings, Inc.

     3,930           147,194  

Hogy Medical Co., Ltd.

     1,122           45,319  

Japan Airlines Co., Ltd.

     8,280           337,130  

Kagome Co., Ltd.

     3,500           122,906  

Kajima Corp.

     27,000           253,837  

Kyowa Exeo Corp.

     4,900           131,161  

Kyudenko Corp.

     2,500           122,809  

LaSalle Logiport REIT

     68           72,576  

McDonald’s Holdings Co. Japan Ltd.

     5,400           255,559  

Mitsubishi Tanabe Pharma Corp.

     14,314           289,190  

NEC Networks & System Integration Corp.

     1,235           32,123  

NET One Systems Co., Ltd.

     6,200           91,047  

Nichias Corp.

     5,604           71,163  

Nihon Unisys Ltd.

     6,379           138,555  

Nippon Telegraph & Telephone Corp.

     14,644           683,187  

Nisshin Oillio Group Ltd.

     1,307           36,461  

NTT Data Corp.

     18,785           197,388  

NTT DOCOMO, Inc.

     27,157           692,325  

Obayashi Corp.

     9,573           105,455  

Prima Meat Packers Ltd.

     6,538           36,794  

Raito Kogyo Co., Ltd.

     4,537           47,998  

Recruit Holdings Co., Ltd.

     9,700           243,117  

Rohto Pharmaceutical Co., Ltd.

     4,000           112,565  

S Foods, Inc.

     1,428           59,097  

Sawai Pharmaceutical Co., Ltd.

     1,875           82,453  

Sekisui House Ltd.

     8,900           162,850  

Senko Group Holdings Co., Ltd.

     5,604           43,851  

Shibaura Electronics Co., Ltd.

     500           24,277  

Stella Chemifa Corp.

     3,189           95,926  

Sumitomo Dainippon Pharma Co., Ltd.

     9,632           160,907  

Takasago Thermal Engineering Co., Ltd.

     1,103           20,464  

Takeda Pharmaceutical Co., Ltd.

     8,757           427,002  

Toho Co., Ltd.

     3,900           129,811  

Tokyo Electron Ltd.

     1,000           184,991  

Toray Industries, Inc.

     9,274           88,218  

Toshiba Plant Systems & Services Corp.

     3,300           72,161  

Towa Pharmaceutical Co., Ltd.

     262           16,691  

Tv Tokyo Holdings Corp.

     934           25,106  

Unipres Corp.

     483           10,969  

Wacoal Holdings Corp.

     502           14,568  

West Japan Railway Co.

     2,699           191,350  

Yakult Honsha Co., Ltd.

     2,500           187,398  

Yorozu Corp.

     841           13,960  

Yoshinoya Holdings Co., Ltd.

     2,725           54,851  

Yurtec Corp.

     1,868           14,920  
          

 

8,762,532

 

  

 

Korea (Republic of) - 1.2%

        

CJ Hello Co., Ltd.

     2,652           21,144  

Daekyo Co., Ltd.

     2,318           17,267  

Easy Bio, Inc.

     1,107           7,254  

Hansol Paper Co., Ltd.

     1,424           21,464  

Hyundai Engineering Plastics Co., Ltd.

     2,575           15,770  

KC Co., Ltd.

     210           4,731  

KT Corp.

     660           16,994  

KT&G Corp.

     1,576           148,246  

Kukdo Chemical Co., Ltd.

     388           21,832  

Macquarie Korea Infrastructure Fund (f)

     8,318           68,595  

Samjin Pharmaceutical Co., Ltd.

     628           25,689  

Samsung Electronics Co., Ltd.

     169           394,864  

Ubiquoss Holdings, Inc.

     1,318           7,600  
          

 

771,450

 

 

 

 

See accompanying Notes to Financial Statements    22    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

                  Shares                                Value            

Malaysia - 1.4%

        

Malayan Banking Bhd.

     138,900           378,371  

Maxis Bhd.

     9,800           14,429  

MISC Bhd.

     33,000           60,356  

Public Bank Bhd.

     20,000           124,352  

Supermax Corp. Bhd.

     59,900           39,947  

Tenaga Nasional Bhd.

     52,300           218,855  

VS Industry Bhd.

     110,800           67,646  
          

 

903,956

 

 

 

Morocco - 0.1%

        

Douja Promotion Groupe Addoha S.A.

     10,225          

 

37,975

 

 

 

Netherlands - 0.7%

        

ASR Nederland NV

     3,952           168,980  

NN Group NV

     5,191           230,636  

Vastned Retail NV REIT

     596          

 

28,430

 

 

 

          

 

428,046

 

 

 

New Zealand - 0.6%

        

Air New Zealand Ltd.

     32,303           75,693  

Arvida Group Ltd.

     26,315           22,441  

Auckland International Airport Ltd.

     27,027           119,930  

Fonterra Co-operative Group Ltd. UNIT

     7,445           31,845  

Summerset Group Holdings Ltd.

     16,234           81,642  

Tourism Holdings Ltd.

     9,034          

 

39,911

 

  

 

          

 

371,462

 

 

 

Norway - 0.3%

        

Marine Harvest ASA

     2,253           45,541  

Orkla ASA

     11,724          

 

126,349

 

 

 

          

 

171,890

 

 

 

Peru - 0.0%

        

Ferreycorp SAA

     40,342          

 

31,763

 

 

 

Poland - 0.3%

        

Asseco Poland S.A.

     1,494           19,666  

Ciech S.A. (e)

     1,701           29,343  

Polski Koncern Naftowy Orlen S.A.

     6,041          

 

148,689

 

 

 

          

 

197,698

 

 

 

Russian Federation - 0.1%

        

PhosAgro PJSC GDR

     3,290          

 

47,837

 

 

 

Singapore - 2.0%

        

Accordia Golf Trust UNIT

     37,500           18,448  

BOC Aviation Ltd. (a)

     15,600           93,041  

China Aviation Oil Singapore Corp., Ltd.

     6,900           8,306  

Fortune Real Estate Investment Trust REIT

     32,000           38,855  

Frasers Logistics & Industrial Trust REIT

     106,900           88,918  

Keppel DC REIT

     17,100           18,828  

Mapletree Industrial Trust REIT

     24,100           37,400  

Oversea-Chinese Banking Corp., Ltd.

     35,500           349,710  

SATS Ltd.

     27,300           107,280  

Sheng Siong Group Ltd.

     33,900           24,088  

Singapore Airlines Ltd.

     35,400           294,161  

Sino Grandness Food Industry Group Ltd. (e)

     77,400           11,570  

Venture Corp., Ltd.

     8,600          

 

185,991

 

 

 

          

 

1,276,596

 

 

 

South Africa - 0.0%

        

Harmony Gold Mining Co., Ltd.

     11,080          

 

26,332

 

 

 

Spain - 0.3%

        

Ebro Foods S.A.

     5,628           143,183  

Lar Espana Real Estate Socimi S.A. REIT

     1,947          

 

23,358

 

 

 

          

 

166,541

 

 

 

 

See accompanying Notes to Financial Statements    23    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

                  Shares                                Value            

Switzerland - 2.3%

        

Allreal Holding AG (e)

     449           73,895  

Baloise Holding AG

     1,068           163,387  

Banque Cantonale Vaudoise

     79           63,946  

Barry Callebaut AG

     80           156,461  

BKW AG

     111           7,384  

Intershop Holding AG

     49           25,730  

Nestle S.A.

     3,351           264,868  

Partners Group Holding AG

     364           270,861  

Schweiter Technologies AG

     24           28,562  

Siegfried Holding AG (e)

     141           47,497  

Swiss Life Holding AG (e)

     461           164,285  

Swiss Re AG

     2,362          

 

241,081

 

 

 

          

 

1,507,957

 

 

 

Taiwan - 5.5%

        

Accton Technology Corp.

     75,000           247,763  

Arcadyan Technology Corp.

     8,000           14,830  

Asia Vital Components Co., Ltd.

     13,000           13,113  

Cheng Uei Precision Industry Co., Ltd.

     16,000           22,624  

Chicony Power Technology Co., Ltd.

     8,080           16,529   

Chin-Poon Industrial Co., Ltd.

     21,000           37,889  

China Airlines Ltd. (e)

     148,000           54,443  

China Metal Products

     25,000           24,833  

China Motor Corp.

     30,000           28,392  

Chunghwa Telecom Co., Ltd.

     143,000           551,031  

Elite Material Co., Ltd.

     41,000           136,059  

Farglory Land Development Co., Ltd.

     48,000           54,236  

First Financial Holding Co., Ltd.

     508,160           354,423  

Formosa Petrochemical Corp.

     110,000           451,797  

Formosa Plastics Corp.

     24,000           85,478  

Getac Technology Corp.

     49,000           70,905  

Grape King Bio Ltd.

     5,000           44,123  

Hon Hai Precision Industry Co., Ltd.

     139,500           435,096  

King Yuan Electronics Co., Ltd.

     80,000           83,973  

Kinsus Interconnect Technology Corp.

     20,000           38,784  

Lien Hwa Industrial Corp.

     43,000           55,496  

Powertech Technology, Inc.

     48,000           151,319  

Sercomm Corp.

     37,000           102,188  

Sinbon Electronics Co., Ltd.

     35,139           92,825  

Sitronix Technology Corp.

     11,000           32,944  

Taiwan Business Bank

     217,690           65,187  

Taiwan Hon Chuan Enterprise Co., Ltd.

     17,000           32,795  

TXC Corp.

     42,000           56,740  

Wistron NeWeb Corp.

     5,909           15,599  

WT Microelectronics Co., Ltd.

     19,003           30,861  

Yageo Corp.

     7,830          

 

142,059

 

 

 

          

 

3,544,334

 

 

 

Thailand - 1.7%

        

Bangkok Bank PCL

     24,600           169,065  

Charoen Pokphand Foods PCL (c)(d)

     100,000           80,748  

Electricity Generating PCL (c)(d)

     7,500           54,983  

Intouch Holdings PCL

     49,800           92,457  

Kiatnakin Bank PCL (c)(d)

     53,600           123,673  

PTT PCL (c)(d)

     14,400           253,614  

Siam Cement PCL

     12,000           189,685  

Somboon Advance Technology PCL (c)(d)

     20,000           13,275  

Thai Oil PCL (c)(d)

     7,100           20,695  

Tisco Financial Group PCL (c)(d)

     32,600          

 

91,919

 

 

 

          

 

1,090,114

 

 

 

United Kingdom - 1.3%

        

British American Tobacco PLC ADR

     2,724           157,148  

Burford Capital Ltd.

     4,254           80,233  

Compass Group PLC

     16,864           344,345  

Gamma Communications PLC

     6,635           65,162  

Johnson Service Group PLC

     17,486           33,217  

Primary Health Properties PLC REIT

     14,934           23,090  

Royal Dutch Shell PLC, Class A

     5,067          

 

161,420

 

 

 

          

 

864,615

 

 

 

 

See accompanying Notes to Financial Statements    24    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

                  Shares                                Value            

United States - 51.5%

        

3M Co.

     1,829           401,502  

AbbVie, Inc.

     4,288           405,859  

Accenture PLC, Class A

     2,382           365,637  

Adobe Systems, Inc. (e)

     288           62,231  

Aetna, Inc.

     500           84,500  

Aflac, Inc.

     5,162           225,889  

AG Mortgage Investment Trust, Inc. REIT

     5,011           87,041  

AGNC Investment Corp. REIT

     19,218           363,605  

Align Technology, Inc. (e)

     852           213,963  

Altria Group, Inc.

     7,894           491,954  

Ameren Corp.

     4,286           242,716  

American Electric Power Co., Inc.

     3,354           230,051  

American Financial Group, Inc.

     1,465           164,402  

Amgen, Inc.

     1,890           322,207  

Annaly Capital Management, Inc. REIT

     47,789           498,439  

Anthem, Inc.

     1,291           283,633  

Anworth Mortgage Asset Corp. REIT

     17,238           82,742  

Apollo Commercial Real Estate Finance, Inc. REIT

     4,686           84,254  

Apple, Inc.

     3,035           509,212  

Ares Commercial Real Estate Corp. REIT

     4,387           54,180  

ARMOUR Residential REIT, Inc.

     2,784           64,812  

AT&T, Inc.

     18,785           669,685  

Atmos Energy Corp.

     1,714           144,387  

Automatic Data Processing, Inc.

     3,306           375,165  

AutoZone, Inc. (e)

     518           336,021  

AvalonBay Communities, Inc. REIT

     1,085           178,439  

Avery Dennison Corp.

     1,406           149,388  

Baxter International, Inc.

     7,458           485,068  

Becton Dickinson and Co.

     357           77,362  

Berkshire Hathaway, Inc., Class B (e)

     163           32,515  

Blackstone Mortgage Trust, Inc., Class A REIT

     3,420           107,456  

Bristol-Myers Squibb Co.

     6,715           424,724  

CA, Inc.

     3,668           124,345  

Capitol Federal Financial, Inc.

     5,348           66,048  

Capstead Mortgage Corp. REIT

     7,580           65,567  

Centene Corp. (e)

     1,894           202,412  

Chimera Investment Corp. REIT

     5,802           101,013  

Cisco Systems, Inc.

     10,120           434,047  

Clorox Co.

     2,163           287,917  

CME Group, Inc.

     1,769           286,118  

CMS Energy Corp.

     3,697           167,437  

Coca-Cola Co.

     1,240           53,853  

Colgate-Palmolive Co.

     2,134           152,965  

Consolidated Edison, Inc.

     9,253           721,179  

Constellation Brands, Inc., Class A

     681           155,214  

Cooper Cos., Inc.

     924           211,420  

CYS Investments, Inc. REIT

     11,640           78,221  

Darden Restaurants, Inc.

     1,907           162,572  

Deciphera Pharmaceuticals, Inc. (e)

     2,108           42,244  

Dell Technologies, Inc., Class V (e)

     1,587           116,184   

Dominion Energy, Inc.

     179           12,070  

DTE Energy Co.

     1,785           186,354  

Duke Energy Corp.

     9,286           719,386  

Dynex Capital, Inc. REIT

     8,964           59,431  

Edison International

     2,319           147,628  

Eli Lilly & Co.

     1,367           105,765  

Ennis, Inc.

     2,558           50,393  

Enviva Partners L.P.

     980           26,852  

Equity LifeStyle Properties, Inc. REIT

     1,764           154,826  

Essex Property Trust, Inc. REIT

     990           238,273  

Everest Re Group Ltd.

     1,532           393,448  

Express Scripts Holding Co. (e)

     2,964           204,753  

Exxon Mobil Corp.

     2,252           168,022  

Facebook, Inc., Class A (e)

     844           134,863  

Federal Agricultural Mortgage Corp., Class C

     365           31,762  

FTI Consulting, Inc. (e)

     1,971           95,416  

Gaming and Leisure Properties, Inc.

     4,411           147,636  

Garmin Ltd.

     2,716           160,054  

Granite Point Mortgage Trust, Inc. REIT

     406           6,715  

Hartford Financial Services Group, Inc.

     3,461           178,311  

Healthcare Services Group, Inc.

     1,591           69,177  

Hershey Co.

     1,365           135,080  

Home Depot, Inc.

     610           108,726  

Huntington Ingalls Industries, Inc.

     156           40,211  

Ingredion, Inc.

     835           107,648  

Intel Corp.

     9,326           485,698  

Intuitive Surgical, Inc. (e)

     2,068           853,732  

Invesco Mortgage Capital, Inc. REIT

     7,217           118,215  

 

See accompanying Notes to Financial Statements    25    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

      Shares                        Value

Johnson & Johnson

     10,577          1,355,443  

Kellogg Co.

     622          40,436  

Kimberly-Clark Corp.

     2,697          297,021    

Laboratory Corp. of America Holdings (e)

     2,627          424,917  

LHC Group, Inc. (e)

     1,571          96,711  

Marsh & McLennan Cos., Inc.

     1,263          104,311  

Mastercard, Inc., Class A

     1,383          242,246  

McDonald’s Corp.

     7,238          1,131,878  

MedEquities Realty Trust, Inc. REIT

     6,502          68,336  

MFA Financial, Inc. REIT

     13,453          101,301  

Microsoft Corp.

     2,495          227,719  

Mid-America Apartment Communities, Inc. REIT

     1,305          119,068  

MTGE Investment Corp. REIT

     5,014          89,751  

NextEra Energy, Inc.

     3,961          646,950  

Northfield Bancorp, Inc.

     1,980          30,908  

Northrop Grumman Corp.

     2,031          709,063  

NVR, Inc. (e)

     28          78,400  

Orchid Island Capital, Inc. REIT

     9,463          69,742  

Oritani Financial Corp.

     2,816          43,226  

Paychex, Inc.

     2,783          171,405  

PepsiCo, Inc.

     7,028          767,106  

PetMed Express, Inc.

     2,081          86,882  

PG&E Corp.

     5,196          228,260  

Pinnacle Foods, Inc.

     1,410          76,281  

Pinnacle West Capital Corp.

     1,650          131,670  

PPL Corp.

     7,348          207,875  

Procter & Gamble Co.

     10,521          834,105  

Progressive Corp.

     5,327          324,574  

QCR Holdings, Inc.

     1,050          47,093  

Quest Diagnostics, Inc.

     1,802          180,741  

Republic Services, Inc.

     9,993          661,836  

Royal Caribbean Cruises Ltd.

     1,880          221,351  

S&P Global, Inc.

     1,242          237,297  

Southern Co.

     9,025          403,057  

SP Plus Corp. (e)

     2,076          73,906  

Stanley Black & Decker, Inc.

     1,346          206,207  

Target Corp.

     842          58,460  

Teleflex, Inc.

     647          164,972  

Travelers Cos., Inc.

     3,417          474,485  

Two Harbors Investment Corp. REIT

     7,921          121,746  

UnitedHealth Group, Inc.

     3,724          796,936  

Unum Group

     2,956          140,735  

Vail Resorts, Inc.

     794          176,030  

Valero Energy Corp.

     2,812          260,869  

Verizon Communications, Inc.

     15,625          747,188  

Visa, Inc., Class A

     1,051          125,721  

Walmart, Inc.

     3,510          312,285  

Waste Management, Inc.

     10,980          923,638  

Waterstone Financial, Inc.

     1,034          17,888  

WEC Energy Group, Inc.

     9,242          579,473  

Westar Energy, Inc.

     3,097          162,871  

Xcel Energy, Inc.

     13,178          599,335  

Xylem, Inc.

     2,370          182,300  
       

 

 

 

 

 

            33,370,245

 

 

 

 

 

 

Total Common Stock (cost-$55,469,047)

       

 

 

 

 

63,779,072

 

 

 

 

RIGHTS (c)(d)(e)- 0.0%

       

United Kingdom - 0.0%

       

Primary Health Properties PLC, expires 4/17/18 (cost-$0)

     878          27  

 

See accompanying Notes to Financial Statements    26    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

      Principal        
Amount        
(000s)         
          Value            

Repurchase Agreements - 0.9%

 

       

State Street Bank and Trust Co.,
dated 3/29/18, 0.28%, due 4/2/18, proceeds $590,018; collateralized by U.S. Treasury Notes, 2.50%, due 5/15/24, valued at $604,577 including accrued interest (cost-$590,000)

   $                         590         

 

590,000

 

 

 

Total Investments (cost-$56,059,047) (b)-99.4%

 

         

 

          64,369,099

 

   

 

Other assets less liabilities (g)-0.6%

 

       

 

 

 

 

414,678

 

 

 

 

Net Assets-100.0%

       

 

  $

 

 

64,783,777

 

 

 

 

 

Notes to Schedule of Investments:

 

(a) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Securities with an aggregate value of $627,501, representing 1.0% of net assets.

 

See accompanying Notes to Financial Statements    27    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

(b) Securities with an aggregate value of $26,482,530, representing 40.9% 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.

 

(c) Fair-Valued—Securities with an aggregate value of $638,934, representing 1.0% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.

 

(d) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.

 

(e) Non-income producing.

 

(f) Mutual Fund.

 

(g) Includes net unrealized appreciation (depreciation) of other financial instruments as follows:

Forward foreign currency contracts outstanding at March 31, 2018:

 

     

Counterparty

 

  

U.S.$ Value on

Origination Date

 

    

U.S.$ Value        
March 31, 2018        

 

  

Unrealized        
Depreciation        

 

Sold:

              

 

227 Australian Dollar settling 4/3/18

  

 

Income Repatriation Boston IBS

   $                     173      $                     174      $      $ (1)  
           

 

 

 

  

 

 

 

 

(h) At March 31, 2018, the Fund pledged $11 in cash as collateral for futures contracts. There were no open futures contracts at March 31, 2018, however the Fund had cash pledged as collateral for any transactions in the future.

Glossary:

ADR - American Depositary Receipt

GDR - Global Depositary Receipt

REIT - Real Estate Investment Trust

UNIT - More than one class of securities traded together.

 

See accompanying Notes to Financial Statements    28    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Best Styles Global Managed Volatility Portfolio

 

 

The industry classification of portfolio holdings and other assets less liabilities shown as a percentage of net assets were as follows:

 

Electric Utilities

     6.9%  

Pharmaceuticals

     5.8%  

Diversified Telecommunication Services

     5.7%  

Insurance

     5.5%  

Banks

     4.4%  

Healthcare Equipment & Supplies

     4.1%  

Healthcare Providers & Services

     4.0%  

Hotels, Restaurants & Leisure

     3.9%  

Food Products

     3.4%  

Mortgage Real Estate Investment Trusts (REITs)

     3.3%  

IT Services

     3.3%  

Equity Real Estate Investment Trusts (REITs)

     3.0%  

Multi-Utilities

     2.9%  

Commercial Services & Supplies

     2.9%  

Oil, Gas & Consumable Fuels

     2.9%  

Household Products

     2.4%  

Technology Hardware, Storage & Peripherals

     2.2%  

Beverages

     1.9%  

Electronic Equipment, Instruments & Components

     1.9%  

Capital Markets

     1.8%  

Construction & Engineering

     1.7%  

Airlines

     1.7%  

Semiconductors & Semiconductor Equipment

     1.5%  

Wireless Telecommunication Services

     1.3%  

Communications Equipment

     1.3%  

Real Estate Management & Development

     1.3%  

Tobacco

     1.2%  

Biotechnology

     1.2%  

Aerospace & Defense

     1.2%  

Internet Software & Services

     1.1%  

Food & Staples Retailing

     1.1%  

Software

     1.1%  

Specialty Retail

     1.0%  

Metals & Mining

     0.9%  

Gas Utilities

     0.8%  

Road & Rail

     0.7%  

Industrial Conglomerates

     0.7%  

Household Durables

     0.6%  

Multi-Line Retail

     0.6%  

Machinery

     0.6%  

Chemicals

     0.6%  

Transportation Infrastructure

     0.6%  

Professional Services

     0.5%  

Media

     0.4%  

Construction Materials

     0.4%  

Containers & Packaging

     0.3%  

Thrifts & Mortgage Finance

     0.3%  

Trading Companies & Distributors

     0.2%  

Leisure Equipment & Products

     0.2%  

Auto Components

     0.2%  

Independent Power Producers & Energy Traders

     0.2%  

Building Products

     0.2%  

Internet & Catalog Retail

     0.1%  

Life Sciences Tools & Services

     0.1%  

Textiles, Apparel & Luxury Goods

     0.1%  

Marine

     0.1%  

Personal Products

     0.1%  

Diversified Financial Services

     0.1%  

Repurchase Agreements

     0.9%  

Other assets less liabilities

     0.6%  
                     100.0%        

 

See accompanying Notes to Financial Statements    29    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Global Small-Cap Opportunities Portfolio

 

 

      Shares                                 Value            

COMMON STOCK - 99.7%

          

Australia - 2.6%

          

Qantas Airways Ltd.

     18,807            $               84,849    

Sandfire Resources NL

     8,653                   49,298  
                

 

 

 

 

134,147

 

 

 

 

Canada - 1.4%

 

          

Granite Real Estate Investment Trust REIT

     1,840                   72,566  

 

China - 4.9%

          

China Vanke Co., Ltd., Class H

     6,800             31,311  

Consun Pharmaceutical Group Ltd.

     12,000             12,849  

Hopewell Highway Infrastructure Ltd.

     54,500             33,295  

Huaxin Cement Co., Ltd., Class B

     10,400             14,068  

Jiangsu Expressway Co., Ltd., Class H

     28,000             39,754  

Sinopec Shanghai Petrochemical Co., Ltd., Class H

     38,000             23,220  

Weichai Power Co., Ltd., Class H

     58,000             65,595  

Yuexiu Real Estate Investment Trust REIT

     51,000                   35,438  
                

 

 

 

 

255,530

 

 

 

 

Denmark - 2.0%

 

          

Topdanmark A/S (e)

     2,201                   103,926  

Germany - 1.4%

 

          

Deutsche Lufthansa AG

     2,266                   72,438  

Greece - 2.1%

 

          

Motor Oil Hellas Corinth Refineries S.A.

     4,980                   112,469  

Hong Kong - 3.0%

          

Hui Xian Real Estate Investment Trust REIT

     41,000             20,229  

Hysan Development Co., Ltd.

     9,000             47,761  

Kerry Properties Ltd.

     19,500                   88,179  
                

 

 

 

 

156,169

 

 

 

 

India - 1.9%

          

Larsen & Toubro Infotech Ltd. (a)

     676             13,965  

Mphasis Ltd.

     2,545             32,649  

WNS Holdings Ltd. ADR (e)

     1,190                   53,943  
                

 

 

 

 

100,557

 

 

 

 

Indonesia - 0.7%

 

          

Indo Tambangraya Megah Tbk PT

     18,600                   38,602  

Italy - 0.8%

          

Hera SpA

     9,326             34,172  

Immobiliare Grande Distribuzione SIIQ SpA REIT

     1,089                   10,167  
                

 

 

 

 

44,339

 

 

 

 

Japan - 8.7%

          

GungHo Online Entertainment, Inc.

     23,600             77,863  

Ines Corp.

     1,200             12,617  

Japan Airlines Co., Ltd.

     800             32,573  

Kamei Corp.

     1,100             15,183  

Noritake Co., Ltd.

     500             21,413  

Noritz Corp.

     700             12,703  

Okamura Corp.

     1,800             24,795  

Sankyu, Inc.

     2,000             99,516  

Skylark Co., Ltd.

     1,000             14,375  

Sumitomo Forestry Co., Ltd.

     4,100             65,936  

T-Gaia Corp.

     2,800                   78,621  
                

 

 

 

 

455,595

 

 

 

 

Korea (Republic of) - 1.8%

          

DGB Financial Group, Inc.

     2,491             27,424  

Macquarie Korea Infrastructure Fund

     2,122             17,499  

Orion Holdings Corp.

     1,495             37,769  

Unid Co., Ltd.

     300                   14,240  
                

 

 

 

 

96,932

 

 

 

 

 

See accompanying Notes to Financial Statements    30    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Global Small-Cap Opportunities Portfolio

 

 

      Shares              Value

Malaysia - 0.4%

        

Fraser & Neave Holdings Bhd.

                     2,200                           18,917    

Norway - 0.5%

        

Atea ASA (e)

     1,461          

 

23,717

 

 

 

Pakistan - 0.4%

        

Pakistan Oilfields Ltd.

     3,500          

 

19,694

 

 

 

Poland - 1.7%

        

Energa S.A.

     23,760           66,994  

PGE Polska Grupa Energetyczna S.A. (e)

     7,807          

 

22,627

 

 

 

        

 

 

 

 

89,621

 

 

 

 

Russian Federation - 2.1%

        

Alrosa PJSC (c)(d)

     68,500          

 

108,606

 

 

 

Singapore - 1.4%

        

Mapletree Greater China Commercial Trust REIT

 

     45,600           40,075  

Mapletree Industrial Trust REIT

     23,000          

 

35,693

 

 

 

        

 

 

 

 

75,768

 

 

 

 

South Africa - 0.4%

        

Astral Foods Ltd.

     833          

 

22,011

 

 

 

Spain - 0.5%

        

Ence Energia y Celulosa S.A.

     3,635          

 

27,438

 

 

 

Taiwan - 2.6%

        

ChipMOS TECHNOLOGIES, Inc.

     34,000           27,132  

Greatek Electronics, Inc.

     15,000           28,744  

Huaku Development Co., Ltd.

     16,000           39,688  

King’s Town Bank Co., Ltd.

     17,000           21,638  

Sigurd Microelectronics Corp.

     17,000          

 

21,503

 

 

 

        

 

 

 

 

138,705

 

 

 

 

Thailand - 0.8%

        

Bangchak Corp. PCL

     9,600           11,322  

SPCG PCL (c)(d)

     19,400           13,617  

Thanachart Capital PCL (c)(d)

     10,800          

 

18,011

 

 

 

        

 

 

 

 

42,950

 

 

 

 

Turkey - 2.0%

        

Anadolu Cam Sanayii AS

     22,899           19,921  

Aygaz AS

     4,414           16,312  

Tekfen Holding AS

     2,907           12,553  

Tupras Turkiye Petrol Rafinerileri AS

     1,961          

 

54,774

 

 

 

        

 

 

 

 

103,560

 

 

 

 

United Arab Emirates - 0.4%

        

Air Arabia PJSC

     70,488          

 

21,877

 

 

 

United Kingdom - 6.4%

        

Computacenter PLC

     1,471           23,760  

Greggs PLC

     5,052           87,193  

IG Group Holdings PLC

     9,188           102,903  

Nomad Foods Ltd. (e)

     1,410           22,193  

Plus500 Ltd.

     1,958           31,374  

SSP Group PLC

     8,361          

 

71,822

 

 

 

        

 

 

 

 

339,245

 

 

 

 

United States - 48.8%

        

Alamo Group, Inc.

     410           45,059  

American Equity Investment Life Holding Co.

     710           20,846  

Atkore International Group, Inc. (e)

     500           9,925  

Bio-Techne Corp.

     770           116,301  

Central Garden & Pet Co. (e)

     1,525           65,575  

Charles River Laboratories International, Inc. (e)

     965           103,004  

Cherry Hill Mortgage Investment Corp. REIT

     645           11,313  

Compass Diversified Holdings

     1,005           16,482  

Emergent Biosolutions, Inc. (e)

     1,935           101,878  

 

See accompanying Notes to Financial Statements    31    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Global Small-Cap Opportunities Portfolio

 

 

      Shares              Value

Enanta Pharmaceuticals, Inc. (e)

                         265                         21,441    

Extended Stay America, Inc. UNIT

     4,145           81,947  

Financial Institutions, Inc.

     890           26,344  

Greif, Inc., Class A

     260           13,585  

H&E Equipment Services, Inc.

     420           16,166  

Halyard Health, Inc. (e)

     775           35,712  

Hill-Rom Holdings, Inc.

     310           26,970  

Hyatt Hotels Corp., Class A

     330           25,166  

Hyster-Yale Materials Handling, Inc.

     355           24,825  

IQVIA Holdings, Inc. (e)

     880           86,337  

Johnson Outdoors, Inc., Class A

     500           31,000  

Kadant, Inc.

     115           10,868  

Kelly Services, Inc., Class A

     1,005           29,185  

Koppers Holdings, Inc. (e)

     960           39,456  

Korn/Ferry International

     2,265           116,851  

Lantheus Holdings, Inc. (e)

     765           12,164  

Lear Corp.

     190           35,357  

Lululemon Athletica, Inc. (e)

     1,300           115,856  

M/I Homes, Inc. (e)

     1,855           59,082  

ManpowerGroup, Inc.

     120           13,812  

Mantech International Corp., Class A

     1,750           97,072  

Marriott Vacations Worldwide Corp.

     870           115,884  

MCBC Holdings, Inc. (e)

     2,050           51,660  

Moog, Inc., Class A (e)

     995           81,998  

Movado Group, Inc.

     805           30,912  

MSA Safety, Inc.

     185           15,399  

Park-Ohio Holdings Corp.

     280           10,878  

Penn National Gaming, Inc. (e)

     680           17,857  

Phibro Animal Health Corp., Class A

     665           26,400  

PRA Health Sciences, Inc. (e)

     1,470           121,951  

Premier, Inc., Class A (e)

     1,560           48,844  

Progress Software Corp.

     2,315           89,012  

Republic Bancorp, Inc., Class A

     335           12,830  

Resolute Forest Products, Inc. (e)

     2,595           21,538  

Surmodics, Inc. (e)

     440           16,742  

Tailored Brands, Inc.

     1,455           36,462  

Taylor Morrison Home Corp., Class A (e)

     2,705           62,972  

TCF Financial Corp.

     4,475           102,075  

Teleflex, Inc.

     475           121,115  

Tower International, Inc.

     1,245           34,549  

Triple-S Management Corp., Class B (e)

     1,020           26,663  

Vectrus, Inc. (e)

     515           19,179  

Viad Corp.

     285           14,948  

Zumiez, Inc. (e)

     3,210          

 

76,719

 

 

 

        

 

 

 

 

2,566,166

 

 

 

 

Total Common Stock (cost-$4,564,362)

        

 

 

 

 

5,241,545

 

 

 

 

RIGHTS (e)- 0.0%

        

Italy - 0.0%

        

Immobiliare Grande Distribuzione SIIQ SpA, strike price EUR 5.165, expires 4/24/2018 (cost-$0)

     1,089          

 

1,159

 

 

 

Total Investments (cost-$4,564,362) (b)-99.7%

        

 

 

 

 

5,242,704

 

 

 

 

Other assets less liabilities-0.3%

        

 

 

 

 

17,366

 

 

 

 

Net Assets-100.0%

        

 

$

 

 

5,260,070

 

 

 

 

 

 

Notes to Schedule of Investments:

 

(a) 144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Security with a value of $13,965, representing 0.3% of net assets.

 

See accompanying Notes to Financial Statements    32    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

AllianzGI Global Small-Cap Opportunities Portfolio

 

 

(b) Securities with an aggregate value of $2,279,660, representing 43.3% 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.

 

(c) Fair-Valued—Securities with an aggregate value of $140,234, representing 2.7% of net assets. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.

 

(d) Level 3 security. See Note 1(a) and Note 1(b) in the Notes to Financial Statements.

 

(e) Non-income producing.

Glossary:

ADR - American Depositary Receipt

REIT - Real Estate Investment Trust

UNIT - More than one class of securities traded together.

 

See accompanying Notes to Financial Statements    33    Semi-Annual Report / March 31, 2018


Table of Contents

Schedule of Investments

March 31, 2018 (unaudited)

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:

 

Life Sciences Tools & Services

    8.1

Hotels, Restaurants & Leisure

    6.2

IT Services

    4.9

Oil, Gas & Consumable Fuels

    4.5

Equity Real Estate Investment Trusts (REITs)

    4.1

Healthcare Equipment & Supplies

    4.0

Airlines

    4.0

Banks

    4.0

Real Estate Management & Development

    3.9

Specialty Retail

    3.6

Household Durables

    3.6

Machinery

    3.4

Software

    3.2

Professional Services

    3.0

Metals & Mining

    3.0

Textiles, Apparel & Luxury Goods

    2.8

Insurance

    2.4

Biotechnology

    2.3

Capital Markets

    2.3

Aerospace & Defense

    1.9

Road & Rail

    1.9

Electric Utilities

    1.7

Food & Staples Retailing

    1.7

Leisure Equipment & Products

    1.6

Food Products

    1.6

Semiconductors & Semiconductor Equipment

    1.5

Chemicals

    1.5

Healthcare Providers & Services

    1.4

Transportation Infrastructure

    1.4

Auto Components

    1.3

Household Products

    1.3

Commercial Services & Supplies

    1.1

Paper & Forest Products

    0.9

Diversified Financial Services

    0.9

Pharmaceuticals

    0.7

Multi-Utilities

    0.7

Containers & Packaging

    0.6

Trading Companies & Distributors

    0.6

Beverages

    0.4

Gas Utilities

    0.3

Construction Materials

    0.3

Independent Power Producers & Energy Traders

    0.3

Building Products

    0.2

Construction & Engineering

    0.2

Mortgage Real Estate Investment Trusts (REITs)

    0.2

Electrical Equipment

    0.2

Other assets less liabilities

    0.3
 

 

 

 

 

            100.0

 

 

%       

 

 

See accompanying Notes to Financial Statements    34    Semi-Annual Report / March 31, 2018


Table of Contents

Statements of Assets and Liabilities

March 31, 2018 (unaudited)

 

     AllianzGI
Advanced Core
Bond
  AllianzGI Best
Styles Global
Managed
Volatility
  AllianzGI Global
Small-Cap
Opportunities

Assets:

      

Investments, at value

     $209,697,365       $64,369,099       $5,242,704  

Cash

     159,897       11,856       45,436  

Foreign currency, at value

           224,428       12,449  

Dividends and interest receivable (net of foreign withholding taxes)

     1,158,305       207,105       19,434  

Deposits with brokers for derivatives collateral

     189,396       11        

Investments in Affiliated Funds - Trustees Deferred Compensation Plan (see Note 4)

     12,315       4,429       486  

Tax reclaims receivable

           19,785       1,377  

Receivable from Investment Manager

                 2,024  

Prepaid expenses and other assets

     3,826       1,935       1,354  

Total Assets

     211,221,104       64,838,648       5,325,264  

Liabilities:

      

Payable for TBA investments purchased

     45,320,805              

Payable for investments purchased

     347,799       14       1  

Payable to brokers for cash collateral received

     275,000              

Investment management fees payable

     29,903       7,874        

Trustees Deferred Compensation Plan payable (see Note 4)

     12,315       4,429       486  

Payable for variation margin on futures contracts

     6,125              

Unrealized depreciation of forward foreign currency contracts

           1        

Accrued expenses and other liabilities

     54,356       42,553       64,707  

Total Liabilities

     46,046,303       54,871       65,194  

Net Assets

     $165,174,801       $64,783,777       $5,260,070  

Net Assets Consist of:

      

Paid-in-capital

     $171,344,277       $54,365,497       $4,330,163  

Undistributed (dividends in excess of) net investment income

     (965,512     73,221       (38,267

Accumulated net realized gain (loss)

     (2,970,072     2,073,994       289,808  

Net unrealized appreciation (depreciation)

     (2,233,892 )       8,271,065         678,366    

Net Assets

     $165,174,801       $64,783,777       $5,260,070  

Cost of Investments

     $211,900,305       $56,059,047       $4,564,362  

Cost of Foreign Currency

     $–       $219,604       $12,411  

Shares Issued and Outstanding

     11,416,302       3,732,815       290,572  

Net Asset Value Per Share*

     $14.4     $17.3     $18.1

 

* Net asset value and redemption price per share may not recalculate exactly due to rounding.

 

See accompanying Notes to Financial Statements    35    Semi-Annual Report / March 31, 2018


Table of Contents

Statements of Operations

Six Months ended March 31, 2018 (unaudited)

 

     AllianzGI
Advanced Core
Bond
  AllianzGI Best
Styles Global
Managed
Volatility
  AllianzGI Global
Small-Cap
Opportunities

Investment Income:

      

Interest

     $1,851,047       $422       $–  

Dividends, net of foreign withholding taxes*

           773,793       45,134  

Miscellaneous

     10       10       10  

Total Investment Income

     1,851,057       774,225       45,144  

Expenses:

      

Investment management

     232,758       126,902       23,325  

Legal

     29,903       8,610       4,651  

Trustees

     8,437       3,574       271  

Audit and tax services

     21,226       19,659       19,014  

Custodian and accounting agent

     33,603       67,391       37,172  

Shareholder communications

     2,086       1,506       3,870  

Transfer agent

     3,812       2,789       2,210  

Insurance

     5,166       3,868       2,708  

Line of credit commitment

     1,960       819       63  

Miscellaneous

     3,085       1,602       1,557  

Total Expenses

     342,036       236,720       94,841    

Less: Fee Waiver/Reimbursement from Investment Manager

     (68,419     (93,082     (63,657

Net Expenses

     273,617       143,638       31,184  

Net Investment Income

     1,577,440         630,587         13,960  

Realized and Change in Unrealized Gain (Loss):

 

   

Net realized gain (loss) on:

      

Investments

     (1,731,096     2,127,599       296,134  

Futures contracts

     574,580              

Forward foreign currency contracts

           480       (741

Foreign currency transactions

           (4,489     610  

Net change in unrealized appreciation/depreciation of:

      

Investments

     (2,546,686     (166,174     (105,195

Futures contracts

     (146,202            

Forward foreign currency contracts

           (1     255  

Foreign currency transactions

           7,967       (35

Net realized and change in unrealized gain (loss)

     (3,849,404     1,965,382       191,028  

Net Increase (Decrease) in Net Assets Resulting from Investment Operations

     $(2,271,964     $2,595,969       $204,988  

*Foreign withholding taxes

     $–       $29,628       $4,209  

 

See accompanying Notes to Financial Statements    36    Semi-Annual Report / March 31, 2018


Table of Contents

Statements of Changes in Net Assets

  

 

     AllianzGI Advanced Core Bond   AllianzGI Best Styles Global Managed Volatility
    

Six Months ended

March 31, 2018

(unaudited)

 

Year ended

September 30, 2017

 

Six Months ended

March 31, 2018

(unaudited)

 

Year ended

September 30, 2017

Increase (Decrease) in Net Assets from:

               

Investment Operations:

               

Net investment income

      $1,577,440         $2,718,898         $630,587         $1,674,031  

Net realized gain (loss)

      (1,156,516 )       509,342       2,123,590       2,318,203

Net change in unrealized appreciation/depreciation

      (2,692,888 )       (3,539,240 )       (158,208 )       6,022,016

Net increase (decrease) in net assets resulting from investment operations

      (2,271,964 )       (311,000 )       2,595,969       10,014,250

Dividends and Distributions to Shareholders from:

               

Net investment income

      (1,960,871 )       (6,472,164 )       (2,061,719 )       (1,279,950 )

Net realized gains

            (1,796,268 )       (2,247,937 )       (152,963 )

Total dividends and distributions to shareholders

      (1,960,871 )       (8,268,432 )       (4,309,656 )       (1,432,913 )

Common Stock Transactions:

               

Net proceeds from the sale of common stock

      27,653,529       37,516,867       3,071,351       10,754,112

Issued in reinvestment of dividends and distributions

      1,960,871       8,268,432       4,309,656       1,432,913

Cost of shares redeemed

      (5,161,302 )       (65,662,163 )             (38,991,208 )

Net increase (decrease) from Fund share transactions

      24,453,098       (19,876,864 )       7,381,007       (26,804,183 )

Total increase (decrease) in net assets

      20,220,263       (28,456,296 )       5,667,320       (18,222,846 )

Net Assets:

               

Beginning of period

      144,954,538       173,410,834       59,116,457       77,339,303

End of period*

      $165,174,801       $144,954,538       $64,783,777       $59,116,457

*Including undistributed (dividends in excess of) net investment income of:

      $(965,512)         $(582,081)         $73,221       $1,504,353

Shares Activity:

               

Shares issued

      1,878,844       2,447,325       172,816       692,627

Issued in reinvestment of dividends and distributions

      134,599       561,646       248,109       92,545

Shares redeemed

      (355,739 )       (4,287,929 )               (2,366,498

Net increase (decrease)

      1,657,704         (1,278,958 )       420,925         (1,581,326

 

See accompanying Notes to Financial Statements    37    Semi-Annual Report / March 31, 2018


Table of Contents

Statements of Changes in Net Assets

    

 

 

    AllianzGI Global Small-Cap Opportunities    
    Six Months ended
March 31, 2018
(unaudited)
  Year ended
September 30, 2017  
  $13,960       $52,679  
  296,003       1,000,979  
  (104,975     214,012  
  204,988       1,267,670  
  (107,469     (70,039
  (608,572      
  (716,041     (70,039
         
  716,041       70,039  
        (1,500,000
  716,041       (1,429,961
  204,988       (232,330
  5,055,082       5,287,412  
  $5,260,070       $5,055,082  
  $(38,267     $55,242  
           
  40,160       4,255  
          (90,199
  40,160       (85,944

 

See accompanying Notes to Financial Statements    38    Semi-Annual Report / March 31, 2018


Table of Contents

Financial Highlights

For a share of common stock outstanding throughout each period:

             
     AllianzGI Advanced Core Bond   AllianzGI Best Styles Global Managed Volatility
      Six Months
ended March
31, 2018
(unaudited)
  Year ended
September 30,
2017
  Period from
October 30,
  2015* through  
  September 30,  
2016
  Six Months
ended March
31, 2018
(unaudited)
  Year ended
September 30,
2017
  Period from
April 11, 2016*
through
    September 30,    
2016

Net asset value, beginning of period

   $14.85   $15.71   $15.00   $17.85   $15.81   $15.00
 

Investment Operations:

            

Net investment income(a)

   0.15   0.25   0.21   0.18   0.40   0.22

Net realized and change in unrealized gain (loss)

   (0.35)   (0.34)   0.57   0.58   1.99   0.59

Total from investment operations

   (0.20)   (0.09)   0.78   0.76   2.39   0.81
 

Dividends and Distributions to Shareholders from:

            

Net investment income

   (0.18)   (0.60)   (0.07)   (0.60)   (0.31)   —  

Net realized gains

   —     (0.17)   —     (0.65)   (0.04)   —  

Total dividends and distributions to shareholders

   (0.18)   (0.77)   (0.07)   (1.25)   (0.35)   —  

Net asset value, end of period

   $14.47   $14.85   $15.71   $17.36   $17.85   $15.81

Total Return(b)

   (1.34)%   (0.43)%   5.23%   4.26%   15.41%   5.40%
 

RATIOS/SUPPLEMENTAL DATA:

            

Net assets, end of period (000s)

   $165,175   $144,955   $173,411   $64,784   $59,116   $77,339

Ratio of expenses to average net assets with fee reimbursement

   0.35%(c)   0.35%   0.41%(c)(d)   0.45%(c)   0.45%(e)   0.45%(c)(d)

Ratio of expenses to average net assets without fee reimbursement

   0.44%(c)   0.44%   0.62%(c)(d)   0.75%(c)   0.83%(e)   0.99%(c)(d)

Ratio of net investment income to average net assets

   2.03%(c)   1.67%   1.52%(c)(d)   1.99%(c)   2.42%(e)   2.96%(c)(d)

Portfolio turnover rate

   149%   319%   260%   25%   31%(f)   1%

 

* Commencement of operations.
(a) Calculated on average shares outstanding during the period.
(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 does not reflect sales charges and includes the effect of expense 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, unless otherwise noted.
(d) Certain expenses incurred were not annualized.
(e) Does not include expenses of the investment in which the Fund invests.
(f) Portfolio turnover rate excludes securities received or delivered from in-kind fund share transactions.

 

See accompanying Notes to Financial Statements    39    Semi-Annual Report / March 31, 2018


Table of Contents

Financial Highlights

For a share of common stock outstanding throughout each period:

 

 

    AllianzGI Global Small-Cap Opportunities
   

Six Months

ended March

31, 2018

(unaudited)

 

Year ended

September 30,

2017

 

Year ended

September 30,

2016

 

Period from

December 1,

2014 through

September 30,

2015#

 

Period from July

23, 2014*

through

November 30,

2014

Net asset value, beginning of period

  $20.19   $15.72   $14.53   $14.70   $15.00

Investment Operations:

         

Net investment income(a)

  0.05   0.19   0.15   0.12   0.05

Net realized and change in unrealized gain (loss)

  0.72   4.49   1.13   (0.25)   (0.35)

Total from investment operations

  0.77   4.68   1.28   (0.13)   (0.30)

Dividends and Distributions to Shareholders from:

         

Net investment income

  (0.43)   (0.21)   (0.09)   (0.04)  

Net realized gains

  (2.43)        

Total dividends and distributions to shareholders

  (2.86)   (0.21)   (0.09)   (0.04)  

Net asset value, end of period

  $18.10   $20.19   $15.72   $14.53   $14.70

Total Return(b)

  4.02%   30.06%   8.85%   (0.86)%   (2.00)%

RATIOS/SUPPLEMENTAL DATA:

         

Net assets, end of period (000s)

  $5,260   $5,055   $5,287   $4,856   $4,899

Ratio of expenses to average net assets with fee reimbursement

  1.20%(c)   1.20%   1.20%   1.22%(c)(d)   1.20%(c)(d)

Ratio of expenses to average net assets without fee reimbursement

  3.66%(c)   4.24%   5.48%   7.06%(c)(d)   4.88%(c)(d)

Ratio of net investment income to average net assets

  0.54%(c)   1.10%   1.04%   0.91%(c)(d)   0.88%(c)(d)

Portfolio turnover rate

  52%   143%   177%   152%   56%

 

* Commencement of operations.
# Fiscal year end changed from November 30th to September 30th.
(a) Calculated on average shares outstanding during the period.
(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 does not reflect sales charges and includes the effect of expense 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, unless otherwise noted.
(d) Certain expenses incurred were not annualized.

 

See accompanying Notes to Financial Statements    40    Semi-Annual Report / March 31, 2018


Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

AllianzGI Institutional Multi-Series Trust (the “Trust”) was organized on June 3, 2014 and is registered under the Investment Company Act of 1940, as amended (the “1940-Act”), as an open-end registered investment company. The Trust follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services-Investment Companies. As of March 31, 2018, the Trust consisted of three separate investment series, (each a “Portfolio” and together the “Portfolios”). Allianz Global Investors U.S. LLC (“AllianzGI U.S.” or the “Investment Manager”) serves as the Portfolios’ investment manager. AllianzGI U.S. is an indirect, wholly-owned subsidiary 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 Portfolios 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 investment objective of AllianzGI Advanced Core Bond is to seek long-term risk adjusted total net return. The investment objective of AllianzGI Best Styles Global Managed Volatility and AllianzGI Global Small-Cap Opportunities is to seek long-term capital appreciation. There can be no assurance that the Portfolios will meet their 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 each Portfolio’s financial statements. Actual results could differ from those estimates.

In the normal course of business, the Portfolios enter into contracts that contain a variety of representations that provide general indemnifications. The Portfolios’ maximum exposures under these arrangements are unknown as this would involve future claims that may be made against the Portfolios that have not yet occurred. However, based on experience, the risk of loss is expected to be remote.

In March 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-08 which changes the amortization period for a callable debt security from the maturity date to the earliest call date. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.

The following is a summary of significant accounting policies consistently followed by the Portfolios:

(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 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. Exchange traded futures are valued at the price determined by the relevant exchange. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily until settlement at the forward settlement date.

The Board of Trustees of each Portfolio (together, 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. The Trust’s 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 necessary. The Investment Manager monitors the continued appropriateness of methods applied and identifies circumstances and events that may require fair valuation. The Investment Manager determines if adjustments should be made in light of

 

   41    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

market changes, events affecting the issuer, or other factors. If the Investment Manager determines that a valuation method may no longer be appropriate, another valuation method previously approved by the Trust’s Valuation Committee may be selected or the Trust’s Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures adopted 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 Trust’s 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 premiums or discounts 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 net asset value (“NAV”) of each 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 Portfolios 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 each 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. In unusual circumstances, the Board or the Valuation Committee may in good faith determine the NAV as of 4:00 p.m., Eastern Time, notwithstanding an earlier, unscheduled close or halt of trading on the NYSE.

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 Portfolios 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 a Portfolio is calculated. With respect to certain foreign securities, the Portfolios may fair-value securities using modeling tools provided by third-party vendors. The Portfolios have 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 Portfolios 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 a 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 a 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 Portfolios have the ability to access

·  

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

·  

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

The valuation techniques used by the Portfolios to measure fair value during the six months ended March 31, 2018 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 asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a

 

   42    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

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 Portfolios generally use 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.

U.S. Treasury Obligations — U.S. Treasury obligations are valued by independent pricing services based on pricing models that evaluate the mean between the most recently quoted bid and ask price. The models also take into consideration data received from active market makers and broker-dealers, yield curves, and the spread over comparable U.S. Treasury issues. The spreads change daily in response to market conditions and are generally obtained from the new issue market and broker-dealer sources. To the extent that these inputs are observable, the values of U.S. Treasury obligations are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Government Sponsored Enterprise and Mortgage-Backed Securities — Government sponsored enterprise and mortgage-backed securities are valued by independent pricing services using pricing models based on inputs that include issuer type, coupon, cash flows, mortgage prepayment projection tables and Adjustable Rate Mortgage evaluations that incorporate index data, periodic life caps and the next coupon reset date. To the extent that these inputs are observable, the values of government sponsored enterprise and mortgage-backed securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Sovereign Debt Obligations — Sovereign debt obligations are valued by independent pricing services based on discounted cash flow models that incorporate option adjusted spreads along with benchmark curves and credit spreads. In addition, international bond markets are monitored regularly for information pertaining to the issuer and/or the specific issue. To the extent that these inputs are observable, the values of sovereign debt obligations are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

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

 

   43    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

A summary of the inputs used at March 31, 2018 in valuing each Portfolio’s assets and liabilities is listed below (refer to the Schedules of Investments and Notes to Schedules of Investments for more detailed information on Investments in Securities and Other Financial Instruments):

 

AllianzGI Advanced Core Bond:  
      Level 1 -
Quoted Prices
    Level 2 -
Other Significant
Observable
Inputs
    Level 3 -
Significant
Unobservable
Inputs
     Value at
3/31/18

Investments in Securities - Assets

 

Corporate Bonds & Notes

         $ 87,954,448            $ 87,954,448  

U.S. Treasury Obligations

           57,248,408              57,248,408  

U.S. Government Agency Securities

           45,720,815              45,720,815  

Sovereign Debt Obligations

           17,724,694              17,724,694  

Repurchase Agreements

           1,049,000              1,049,000  
         
             209,697,365              209,697,365  

Other Financial Instruments* – Liabilities

 

Interest Rate Contracts

   $ (30,952                  (30,952

Totals

   $ (30,952   $ 209,697,365            $       209,666,413  
AllianzGI Best Styles Global Managed Volatility:  
      Level 1 -
Quoted Prices
    Level 2 -
Other Significant
Observable
Inputs
    Level 3 -
Significant
Unobservable
Inputs
     Value at
3/31/18

Investments in Securities - Assets

 

Common Stock:

 

Australia

         $ 699,483            $ 699,483  

Austria

   $ 39,435       60,911              100,346  

Belgium

           62,457              62,457  

China

     63,577       1,755,247              1,818,824  

Denmark

     21,930       336,737              358,667  

Finland

           414,258              414,258  

France

     112,069       1,155,692              1,267,761  

Germany

           304,887              304,887  

Hong Kong

           1,402,389              1,402,389  

Hungary

           293,014              293,014  

Indonesia

           277,417              277,417  

Ireland

     35,745       6,214              41,959  

Israel

           337,889              337,889  

Italy

           397,345              397,345  

Japan

           8,762,532              8,762,532  

Korea (Republic of)

     85,862       685,588              771,450  

Malaysia

           903,956              903,956  

Netherlands

           428,046              428,046  

New Zealand

     22,441       349,021              371,462  

Norway

           171,890              171,890  

Poland

           197,698              197,698  

Singapore

     30,018       1,246,578              1,276,596  

South Africa

           26,332              26,332  

Spain

     23,358       143,183              166,541  

Switzerland

     25,730       1,482,227              1,507,957  

Taiwan

           3,544,334              3,544,334  

Thailand

           451,207     $ 638,907        1,090,114  

United Kingdom

     278,617       585,998              864,615  

All Other

     35,918,853                    35,918,853  

Rights

                 27        27  

Repurchase Agreements

           590,000              590,000  
       36,657,635       27,072,530       638,934        64,369,099  

Other Financial Instruments* – Liabilities

 

Foreign Exchange Contracts

           (1            (1

Totals

   $ 36,657,635     $ 27,072,529     $ 638,934      $ 64,369,098  

 

   44    Semi-Annual Report / March 31, 2018        


Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

AllianzGI Global Small-Cap Opportunities:  
     

Level 1 -

Quoted Prices

     Level 2 -
Other Significant
Observable
Inputs
   Level 3 -
Significant
Unobservable
Inputs
     Value at
3/31/18
 

Investments in Securities - Assets

 

Common Stock:

 

Australia

          $ 134,147             $ 134,147  

China

            255,530               255,530  

Denmark

            103,926               103,926  

Germany

            72,438               72,438  

Greece

            112,469               112,469  

Hong Kong

            156,169               156,169  

India

   $ 53,943        46,614               100,557  

Indonesia

            38,602               38,602  

Italy

     10,167        34,172               44,339  

Japan

            455,595               455,595  

Korea (Republic of)

     17,499        79,433               96,932  

Norway

            23,717               23,717  

Pakistan

            19,694               19,694  

Poland

            89,621               89,621  

Russian Federation

                 $ 108,606        108,606  

Singapore

            75,768               75,768  

Spain

            27,438               27,438  

Taiwan

            138,705               138,705  

Thailand

            11,322        31,628        42,950  

Turkey

     16,312        87,248               103,560  

United Kingdom

     22,193        317,052               339,245  

All Other

     2,701,537                      2,701,537  

Rights

     1,159                      1,159  

Totals

   $             2,822,810      $             2,279,660      $             140,234      $             5,242,704  

At March 31, 2018, the following Portfolios had transfers between Levels 1 and 2:

 

    Transfers
    Level 1 to Level 2 (a)   Level 2 to Level 1 (b)  
 

 

 

 

AllianzGI Best Styles Global Managed Volatility

  $629,785   $74,636

AllianzGI Global Small-Cap Opportunities

  219,891   16,312

(a) 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 September 30, 2017, which was applied on March 31, 2018.

(b) This transfer was a result of securities trading outside the U.S. whose values were adjusted by the application of a modeling tool at September 30, 2017, which was not applied on March 31, 2018.

A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the six months ended March 31, 2018, was as follows:

AllianzGI Best Styles Global Managed Volatility:

 

     Beginning
Balance
9/30/17
    Purchases     Sales             Accrued
Discount
(Premiums)
    Net
Realized
Gain (Loss)
    Net Change
in Unrealized
Appreciation/
Depreciation
    Transfers
into
Level 3
    Transfers
out of
Level 3
    Ending
Balance
3/31/18
                                 

Investments in Securities - Assets

 

Common Stock:

 

Thailand

  $ 165,313     $       500,420       $        (78,102)     $     $ (8,221)     $ 59,497     $     $     $              638,907  
Rights           —†                   —        27                 27  

Totals

  $       165,313     $       500,420       $        (78,102)     $             —     $           (8,221)     $           59,524     $             —     $             —     $            638,934  

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

AllianzGI Global Small-Cap Opportunities:

 

      Beginning
Balance
9/30/17
     Purchases      Sales     Accrued
Discount
(Premiums)
  Net
Realized
Gain (Loss)
     Net Change
in Unrealized
Appreciation/
Depreciation
     Transfers
into
Level 3
    Transfers
out of
Level 3
   Ending
Balance
3/31/18
      

Investments in Securities - Assets

 

Common Stock:

 

Russian Federation

   $      $         105,344      $     $                —   $      $ 3,262      $     $        —    $    108,606  

Thailand

             22,445        17,678        (10,949       243        2,211               31,628                   

Totals

   $ 22,445      $ 123,022      $       (10,949   $                —   $ 243      $ 5,473      $     $        —    $    140,234  
The following tables present additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at March 31, 2018:  
AllianzGI Best Styles Global Managed Volatility:  
      Ending
Balance
at 3/31/18
     Valuation
Technique Used
   Unobservable
Inputs
   Input Values

Investments in Securities – Assets

     

Common Stock

   $     638,907     

Value of Foreign Security Traded on Foreign Exchange

  

Price of Non- Resident Shares on Foreign Exchange

   THB 20.27-550.73                            
AllianzGI Global Small-Cap Opportunities:
      Ending
Balance
at 3/31/18
     Valuation
Technique Used
   Unobservable
Inputs
       Input Values

Investments in Securities - Assets

     

Common Stock

   $ 31,628     

Market/Value of Foreign Security Traded on Foreign Exchange

  

    Price of Non- Resident Shares on  Foreign Exchange

       THB 21.88-56.47        
     108,606     

Market/Value of Foreign Security Traded on Foreign Exchange

  

    Price of Non- Resident Shares on Foreign Exchange

       $1.51- $1.65        

THB – Thai Baht

*Other financial instruments are derivatives, such as futures contracts and forward foreign currency contracts, which are valued at the unrealized appreciation (depreciation) of the instrument.

† Issued via corporate action.

The net change in unrealized appreciation/depreciation of Level 3 investments which the following Portfolios held at March 31, 2018 was:

 

AllianzGI Best Styles Global Managed Volatility

     $            58,148  

AllianzGI Global Small-Cap Opportunities

     5,338  

Net realized gain (loss) and net change in unrealized appreciation/depreciation are reflected on the Statements of Operations.

(c) Investment Transactions and Investment Income. Investment transactions are accounted for on the trade date. Securities purchased and sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains and losses on investments are determined on an identified cost basis. Interest income adjusted for the accretion of discounts and amortization of premiums is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized, respectively, to interest income. 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 Portfolios, using reasonable diligence, become aware of such dividends. Dividend and interest income on the Statements of Operations are shown net of any foreign

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

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. Distributions, if any, in excess of the cost basis of a security are recognized as capital gains.

(d) Federal Income Taxes. The Portfolios intend 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 Portfolios 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 Portfolios, 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 March 31, 2018, the Portfolios have 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 Portfolios (except AllianzGI Advanced Core Bond) declare dividends and distributions from net investment income and net realized capital gains, if any, annually. AllianzGI Advanced Core Bond declares dividends from net investment income quarterly and distributions from net realized capital gains, if any, annually. The Portfolios record 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’ Statements of Operations.

The Portfolios do 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 Portfolios do 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 Portfolios are parties to Master Repurchase Agreements (“Master Repo Agreements”) with select counterparties. The Master Repo Agreements include provisions for initiation of repurchase transactions, income payments, events of default, and maintenance of collateral.

The Portfolios enter into transactions, under the Master Repo Agreements, with their custodian bank or securities brokerage firms whereby they purchase securities under agreements (i.e., repurchase agreements) to resell such securities at an agreed upon price and date. The Portfolios, through their custodian, take possession of securities collateralizing the repurchase agreement. Such agreements are carried at the contract amount in the financial statements, which is considered to represent fair value. The collateral that is pledged (i.e. the securities received by the Portfolios), which consists primarily of U.S. government obligations and asset-backed securities, is held by the custodian bank for the benefit of the Portfolios until

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

maturity of the repurchase agreement. Provisions of the repurchase agreements and the procedures adopted by the Portfolios require 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 Portfolios may be delayed or limited. The gross values are included in the Portfolios’ Schedules of Investments. As of March 31, 2018, the value of the related collateral exceeded the value of the repurchase agreements.

(h) Rights. The Portfolios may receive rights. A right is a privilege granted to existing shareholders of a corporation to subscribe for shares of a new issue of common stock before it is issued. Rights normally have a short life, usually two to four weeks, are freely transferable and entitle the holder to buy the new common stock at a lower price than the public offering price. Rights may entail greater risks than certain other types of investments. Generally, rights do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life of the right, the right will expire worthless. Rights may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities.

(i) U.S. Government Agencies or Government-Sponsored Enterprises. Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. The Government National Mortgage Association (“GNMA” or “Ginnie Mae”), a wholly-owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Government-related guarantors not backed by the full faith and credit of the U.S. Government include the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government.

(j) Exchange-Traded Funds. Certain Portfolios may invest in exchange-traded-funds (“ETFs”), which typically are index-based investment companies that hold substantially all of their assets in securities representing their specific index, but may also be actively-managed investment companies. Shares of ETFs trade throughout the day on an exchange and represent an investment in a portfolio of securities and other assets. As a shareholder of another investment company, the Portfolios would bear their pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Portfolios bear directly in connection with their own operations.

(k) When-Issued/Delayed-Delivery Transactions. When-issued or delayed-delivery transactions involve a commitment to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, the Portfolios will set aside and maintain until the settlement date in a designated account, liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed-delivery basis, the Portfolios assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations; consequently, such fluctuations are taken into account when determining the NAV. The Portfolios may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a realized gain or loss. When a security is sold on a delayed-delivery basis, the Portfolios do not participate in future gains and losses with respect to the security.

(l) Securities Traded on To-Be-Announced Basis. The Portfolios may from time to time purchase securities on a to-be-announced (“TBA”) basis. In a TBA transaction, the Portfolio commits to purchasing or selling securities for which all specific information is not yet known at the time of the trade, particularly the face amount and maturity date of the underlying security transactions. Securities purchased on a TBA basis are not settled until they are delivered to the Portfolio, normally 15 to 45 days later. Beginning on the date the Portfolio enters into a TBA transaction, cash, U.S. government securities or other liquid securities are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations, and their current value is determined in the same manner as for other securities.

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

2. PRINCIPAL RISKS

In the normal course of business, the Portfolios trade financial instruments and enter 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 Portfolios are also exposed to other risks such as, but not limited to, interest rate, foreign currency, credit and leverage risks.

Interest rate risk is the risk that fixed income securities’ valuations will change because of changes in interest rates. During periods of rising nominal interest rates, the values of fixed income instruments are generally expected to decline. Conversely, during periods of declining nominal interest rates, the values of fixed income instruments are generally expected to rise. To the extent that a fund effectively has short positions with respect to fixed income instruments, the values of such short positions would generally be expected to rise when nominal interest rates rise and to decline when nominal interest rates decline. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is used primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. Interest rate changes can be sudden and unpredictable, and the Portfolios may lose money as a result of movements in interest rates. High-yield or junk bonds are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to increase in interest rates or an issuer’s deterioration or default. The Portfolios may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended. The values of equity and other non-fixed income securities may also decline due to fluctuations in interest rates.

Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When the Portfolios hold variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the NAV of the Portfolios’ shares.

The Portfolios are exposed to credit risk, which is the risk of losing money if the issuer or guarantor of a fixed income security is unable or unwilling, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or unwilling, to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings.

To the extent the Portfolios directly invest in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, they 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 Portfolios.

The Portfolios are 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 Portfolios 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.

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

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 Portfolios. Even when markets perform well, there is no assurance that the investments held by the Portfolios 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 Portfolios are exposed to counterparty risk, or the risk that an institution or other entity with which the Portfolios have unsettled or open transactions will default. The potential loss to the Portfolios could exceed the value of the financial assets recorded in the Portfolios’ financial statements. Financial assets, which potentially expose the Portfolios to counterparty risk, consist principally of cash due from counterparties and investments. The Investment Manager 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 Portfolios’ have 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.

The Portfolios are exposed to risks associated with leverage. Leverage may cause the value of the Portfolios’ shares to be more volatile than if the Portfolios did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Portfolios’ portfolio securities. The Portfolios may engage in transactions or purchase instruments that give rise to forms of leverage. In addition, to the extent the Portfolios employ dividend and interest costs on such leverage may not be recovered by any appreciation of the securities purchased with the leverage proceeds and could exceed the Portfolios’ investment returns, resulting in greater losses.

The Portfolios are party to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) with select counterparties that govern transactions, over-the-counter derivatives and foreign exchange contracts entered into by the Portfolios and those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements of the Portfolios.

The considerations and factors surrounding the settlement of certain purchases and sales made on a delayed-delivery basis are governed by Master Securities Forward Transaction Agreements (“Master Forward Agreements”) between the Portfolios and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

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 Portfolios at times use derivatives for hedging purposes, the Portfolios reflect derivatives at fair value and recognize changes in fair value through the Portfolios’ Statements of Operations, and such derivatives do not qualify for hedge accounting treatment.

Futures Contracts. The Portfolios use futures contracts to manage their exposure to the securities markets or the movements in interest rates and currency values. A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into such a contract, the Portfolios are required to pledge to the broker an amount of cash or securities equal to the minimum “initial margin” requirements of the exchange. Pursuant to the contracts, the Portfolios agree to receive from or pay to the broker an amount of cash or securities equal to the daily

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

fluctuation in the value of the contracts. Such receipts or payments are known as “variation margin” and are recorded by the Portfolios as unrealized appreciation or depreciation. When the contracts are closed, the Portfolios record a realized gain or loss equal to the difference between the value of the contracts at the time they were opened and the value at the time they were closed. Any unrealized appreciation or depreciation recorded is simultaneously reversed. The use of futures transactions involves various risks, including the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and underlying hedging assets, and possible inability or unwillingness of counterparties to meet the terms of their contracts.

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 Portfolios enter 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’ Statements of Assets and Liabilities.

The following is a summary of the Portfolios’ derivatives categorized by risk exposure.

The effect of derivatives on the Statements of Assets and Liabilities at March 31, 2018:

AllianzGI Advanced Core Bond:

 

Location  

Interest Rate 

Contracts  

Liability derivatives:

 

Unrealized depreciation on futures contracts*

  $         (30,952) 

*     Included in net unrealized depreciation of $6,125 on futures contracts as reported in the Portfolio’s Notes to Schedule of Investments. Only variation margin is reported within the Statements of Assets and Liabilities.

 

AllianzGI Best Styles Global Managed Volatility:

 

Location  

Foreign Exchange

  Contracts

Liability derivatives:

 

Unrealized depreciation of forward foreign currency contracts

  $                        (1) 

The effect of derivatives on the Statements of Operations for the six months ended March 31, 2018:

AllianzGI Advanced Core Bond:

 

Location        Interest Rate      
Contracts        

Net realized gain on:

 

Futures contracts

  $            574,580   

Net change in unrealized appreciation/depreciation of:

 

Futures contracts

  $          (146,202)  

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

AllianzGI Best Styles Global Managed Volatility:   
Location   

Foreign Exchange

  Contracts

Net realized gain on:

  

Forward foreign currency contracts

   480  

Net change in unrealized appreciation/depreciation of:

 

  

Forward foreign currency contracts

   (1) 

AllianzGI Global Small-Cap Opportunities:

  
Location   

Foreign Exchange

  Contracts

Net realized loss on:

  

Forward foreign currency contracts

   $                  (741) 

Net change in unrealized appreciation/depreciation of:

 

  

Forward foreign currency contracts

   $                    255  

The average volume (based on open positions at each fiscal month-end) of derivative activity during the six months ended March 31, 2018:

 

    

Forward Foreign

 

Currency Contracts (2)

    

Futures    

 

Contracts (1)    

  

 

     Purchased    Sold      Long    Short    
  

 

AllianzGI Advanced Core Bond

                198

AllianzGI Best Styles Global Managed Volatility

   $    324,952    $     303,417        

AllianzGI Global Small-Cap Opportunities

       9,622      19,633        

(1) Number of contracts

(2) U.S. $ value on origination date

The following table presents by counterparty, the Portfolio’s derivative assets and liabilities net of related collateral held by the Portfolio at March 31, 2018 which has not been offset in the Statements of Assets and Liabilities, but would be available for offset to the extent of a default by the counterparty to the transaction.

Financial Liabilities and Derivative Liabilities, and Collateral Received (Pledged) at March 31, 2018:

AllianzGI Best Styles Global Managed Volatility:

 

     Gross Amounts Not Offset in the Statement of Assets and Liabilities  
Counterparty   Gross Liability Derivatives
Presented in Statement of
Assets and Liabilities
   

Financial

Instrument/
Derivative Offset

   

Cash Collateral

Received
(Pledged)

    Net Amount          

Forward Foreign Currency Contracts Income Repatriation Boston IBS

    $1       $—         $—       $1      

4. INVESTMENT MANAGER/DISTRIBUTOR FEES/DEFERRED COMPENSATION

Investment Management Fee. During the reporting period, each Portfolio had an Investment Management Agreement (for the purpose of this section, collectively the “Agreement”) with the Investment Manager. Subject to the supervision of the

 

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Table of Contents

AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

Trust’s Board, the Investment Manager was responsible for managing, either directly or through others selected by it, each Portfolio’s investment activities, business affairs and administrative matters. Pursuant to the Agreements, the Investment Manager received an annual fee, payable monthly, at an annual rate of each Portfolio’s average daily net assets (the “Investment Management Fee”).

The Investment Management fee was charged at an annual rate as indicated in the following table:

 

    Management Fee

AllianzGI Advanced Core Bond

  0.30%

AllianzGI Best Styles Global Managed Volatility

  0.40

AllianzGI Global Small-Cap Opportunities

  0.90

Distribution Fees. Allianz Global Investors Distributors LLC (the “Distributor”), an affiliate of AAM and the Investment Manager, serves as the distributor of the Portfolios’ shares pursuant to a Distribution Contract. The Distributor, for each of the Portfolios, 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 (the “Plan”) for the Trustees, which 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 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/MANAGEMENT FEE WAIVER AND RECOUPMENT

The Trust and the Investment Manager have entered into Expense Limitation and Management Fee Waiver Agreements as indicated below:

    Expense Limitation

AllianzGI Advanced Core Bond (1)

  0.35%

AllianzGI Best Styles Global Managed Volatility (2)

  0.45

AllianzGI Global Small-Cap Opportunities (3)

  1.20

1. The Investment Manager has contractually agreed to irrevocably waive its management fee or reimburse the Portfolio through January 31, 2019, to the extent that Total Annual Portfolio Operating Expenses, including payment of organizational expenses but excluding interest, tax and extraordinary expenses, and certain credits and other expenses, exceed 0.35%. 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 waiver/reimbursement or recoupment. The Expense Limitation Agreement is terminable by the Trust upon 90 days’ prior written notice to the Manager or at any time by mutual agreement of the parties.

2. The Investment Manager has contractually agreed to irrevocably waive its management fee or reimburse the Portfolio through January 31, 2019, to the extent that Total Annual Portfolio Operating Expenses, including payment of organizational expenses but excluding interest, tax and extraordinary expenses, and certain credits and other expenses, exceed 0.45%. 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 waiver/reimbursement or recoupment. The Expense Limitation Agreement is terminable by the Trust upon 90 days’ prior written notice to the Manager or at any time by mutual agreement of the parties.

3. The Investment Manager has contractually agreed to irrevocably waive its management fee or reimburse the Portfolio through January 31, 2019, to the extent that Total Annual Portfolio Operating Expenses, including payment of organizational expenses but excluding interest, tax 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 waiver/reimbursement or recoupment. The Expense Limitation Agreement is terminable by the Trust upon 90 days’ prior written notice to the Manager or at any time by mutual agreement of the parties.

 

   53    Semi-Annual Report / March 31, 2018        


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AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

During the six months ended March 31, 2018, the Investment Manager did not recoup any expenses from the Portfolios. The following represents the amounts that still can be recouped by the Investment Manager:

 

    Unrecouped Expenses Waived/Reimbursed through                         
    Fiscal Period or Year ended
    09/30/2015   9/30/2016   9/30/2017   Totals

AllianzGI Advanced Core Bond

    $275,685   $141,917   $417,602

AllianzGI Best Styles Global Managed Volatility

    205,431   258,092   463,523

AllianzGI Global Small-Cap Opportunities

  $200,824               209,673               144,937               615,434            

6. INVESTMENTS IN SECURITIES

For the six months ended March 31, 2018, purchases and sales of investments, other than short-term securities and U.S. government obligations were:

 

     Purchases    Sales

AllianzGI Advanced Core Bond

               $24,149,256                            $14,303,917            

AllianzGI Best Styles Global Managed Volatility

               19,215,856                            15,588,049            

AllianzGI Global Small-Cap Opportunities

               2,686,973                            2,703,458            

Purchases and sales in U.S. government obligations were:

 

     Purchases    Sales

AllianzGI Advanced Core Bond

               $300,353,422                        $278,887,142          

7. INCOME TAX INFORMATION

At March 31, 2018, the aggregate cost basis and the net unrealized appreciation (depreciation) of investments in securities and other financial instruments for federal income tax purposes were:

 

     Federal Tax Cost
Basis(1)
   Unrealized     
Appreciation
       Unrealized     
 Depreciation
   Net Unrealized 

Appreciation 
(Depreciation) 

AllianzGI Advanced Core Bond

     $212,703,331        $610,943        $3,647,861        $(3,036,918

AllianzGI Best Styles Global Managed Volatility

     56,093,940        9,648,455        1,373,296        8,275,159  

AllianzGI Global Small-Cap Opportunities

     4,564,445        741,601        63,342        678,259  

(1) Differences, if any, between book and tax cost basis were attributable to wash sale loss deferrals and the differing treatment of bond premium amortization.

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 a Portfolio.

 

   54    Semi-Annual Report / March 31, 2018        


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AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

At March 31, 2018, the significant account-holders, owners of 5% or greater of each respective Portfolio’s outstanding shares were as follows:

 

         Affiliated*         
   

Number of Account Holders

 

 

      Approximate Ownership

 

 

          AFI    

 

 
AllianzGI Advanced Core Bond   4   98%     -    
AllianzGI Best Styles Global Managed Volatility   2   100%     -    
AllianzGI Global Small-Cap Opportunities   -                   -     100%    

* This represents the aggregate percentage of affiliated entities that own 5% or more of the Portfolio’s outstanding shares. These affiliated entities include funds/portfolios of the Allianz Funds Multi-Strategy Trust and Allianz Multi-Series Collective Investment Trust.

9. BORROWINGS

The Trust has entered into a credit agreement (the “State Street Agreement”), among the Trust, Allianz 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 State Street Bank and Trust Company, as agent and lender, for a committed line of credit. The State Street Agreement was amended on October 26, 2017 and has a term through October 25, 2018 and permits the AllianzGI Borrowers to borrow up to $200 million in aggregate, subject to (i) a requirement that each AllianzGI Borrower Fund’s asset coverage with respect to senior securities representing indebtedness be 300% or higher, and (ii) certain other limitations and conditions. Each AllianzGI Borrower Fund must pay interest on any amounts borrowed under the facility at a rate per annum equal to 1.25% plus the higher of the then-current federal funds overnight rate or the one-month LIBOR rate, 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 0.25% 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 Portfolios did not utilize the line of credit during the six months ended March 31, 2018.

Pursuant to an exemptive order issued by the SEC (the “Order”), the Portfolios are authorized to enter into a master interfund lending agreement (the “Interfund Program”) with each other and certain funds advised by the Investment Manager. The Interfund Program permits certain Portfolios to lend money directly to and borrow money directly from other funds for temporary purposes. During the six months ended March 31, 2018, the Portfolios did not participate as a borrower or lender in the Interfund Program.

10. PORTFOLIO EVENTS

On December 28, 2017, the Trust entered into a Novation Framework Agreement with State Street Bank and Trust Company (“SSB”) and DST Asset Manager Solutions, Inc. (“DST”) (formerly known as Boston Financial Data Services, Inc.) whereby SSB replaced DST as the named provider of transfer agency services to the Funds. SSB then delegated its duties and obligations as transfer agent to DST. This transition was undertaken solely to promote efficiency and administrative simplicity, allowing SSB and DST to consolidate certain contracts and streamline their relationship, and had no effect on the services provided to the Trust.

 

   55    Semi-Annual Report / March 31, 2018        


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AllianzGI Institutional Multi-Series Trust

Notes to Financial Statements

March 31, 2018 (unaudited) (continued)

 

11. 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.

There were no subsequent events identified that require recognition or disclosure.

 

   56    Semi-Annual Report / March 31, 2018        


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Changes to the Board of Trustees & Fund Officers

Unaudited

Effective December 12, 2017, Barbara R. Claussen resigned as a Trustee of the Portfolios and Erick R. Holt became a Trustee of the Portfolios. Mr. Holt is an “interested person” of the Portfolios, as defined in Section 2(a) (19) of the 1940 Act, due to his positions with the Investment Adviser and its affiliates.

Effective December 12, 2017, Craig A. Ruckman was appointed Assistant Secretary to the Portfolios.

Effective April 30, 2018, Lawrence G. Altadonna resigned as the Treasurer, Principal Financial and Accounting Officer of the Portfolios.

Effective May 1, 2018, Scott Whisten was appointed Treasurer, Principal Financial and Accounting Officer of the Portfolios.

 

   57    Semi-Annual Report / March 31, 2018        


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AllianzGI Institutional Multi-Series Trust

Privacy Policy (unaudited)

Privacy Policy

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 Distributors 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.

 

   58    Semi-Annual Report / March 31, 2018        


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AllianzGI Institutional Multi-Series Trust

Privacy Policy (unaudited) (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 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, 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 computer’s hard drive when you visit certain web pages. Clear GIFs (also known as Web Beacons) are typically transparent very small graphic images (usually 1 pixel x 1 pixel) that are placed on a website that may be included on our services provided via our website and typically work in conjunction with cookies to identify our users and user behavior. We may use cookies and automatically collected information to: (i) personalize our website and the services provided via our website, such as remembering your information so that you will not have to re-enter it during your use of, or the next time you use, our website and the services provided via our website; (ii) provide customized advertisements, content, and information; (iii) monitor and analyze the effectiveness of our website and the services provided via our website and third-party marketing activities; (iv) monitor aggregate site usage metrics such as total number of visitors and pages viewed; and (v) track your entries, submissions, and status in any promotions or other activities offered through our website and the services provided via our website. Tracking technology also helps us manage and improve the usability of our website, (i) detecting whether there has been any contact between your computer and us in the past and (ii) to identify the most popular sections of our website. 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.

        Use of Social Media Plugins Our website uses the following Social Media Plugins (“Plugins”):

 

¡   Facebook Share Button operated by Facebook Inc., 1601 S. California Ave, Palo Alto, CA 94304, USA

 

¡   Tweet Button operated by Twitter Inc., 795 Folsom St., Suite 600, San Francisco, CA 94107, USA

 

¡   LinkedIn Share Button operated by LinkedIn Corporation, 2029 Stierlin Court, Mountain View, CA 94043, USA

All Plugins are marked with the brand of the respective operators Facebook, Twitter and LinkedIn (“Operators”). When you visit our website that contains a social plugin, your browser establishes a direct connection to the servers of the Operator. The Operator directly transfers the plugin content to your browser which embeds the latter into our website, enabling the Operator to receive information about you having accessed the respective page of our website. Thus, AllianzGI US has no influence on the data gathered by the plugin and we inform you according to our state of knowledge: The embedded plugins provide the Operator with the information that you have accessed the corresponding page of our website. If you do not wish to have such data transferred to the Operators, you need to log out of your respective account before visiting our website. Please see the Operators’ data privacy statements in order to get further information about purpose and scope of the data collection and the processing and use:

 

¡   Facebook: https://de-de.facebook.com/about/privacy/

 

¡   Twitter: https://twitter.com/privacy

 

¡   Linked In: https://www.linkedin.com/legal/privacy-policy\

 

   59    Semi-Annual Report / March 31, 2018        


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AllianzGI Institutional Multi-Series Trust

Privacy Policy (unaudited) (continued)

 

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 if required. 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.

 

   60    Semi-Annual Report / March 31, 2018        


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Trustees

Davey S. Scoon

   Chairman of the Board of Trustees

Deborah A. DeCotis

F. Ford Drummond

A. Douglas Eu

Bradford K. Gallagher

Erick R. Holt

James A. Jacobson

Hans W. Kertess

James S. MacLeod

William B. Ogden, IV

Alan Rappaport

 

Officers

Thomas J. Fuccillo

 President and Chief Executive Officer

Scott Whisten (1)

 Treasurer, Principal Financial and Accounting Officer

Angela Borreggine

 Chief Legal Officer and Secretary

Thomas L. Harter

 Chief Compliance Officer, CFA

Richard J. Cochran

 Assistant Treasurer

Orhan Dzemaili

 Assistant Treasurer

Debra Rubano

 Assistant Secretary

Craig A. Ruckman

 Assistant Secretary

Paul Koo (2)

Assistant Secretary

  

Investment Manager

   Allianz Global Investors U.S. LLC

   1633 Broadway

   New York, NY 10019

 

Distributor

   Allianz Global Investors Distributors LLC

   1633 Broadway

   New York, NY 10019

 

Custodian & Accounting Agent

   State Street Bank & Trust Co.

   801 Pennsylvania Avenue

   Kansas City, MO 64105

 

Transfer Agent

   State Street Bank & Trust Company, which has delegated its obligations

   as transfer agent to:

   DST Asset Mangement Solutions, Inc.

   P.O. Box 8050

   Boston, MA 02266-8050

 

Independent Registered Public Accounting Firm    PricewaterhouseCoopers LLP

   300 Madison Avenue

   New York, NY 10017

 

Legal Counsel

   Ropes & Gray LLC

   Prudential Tower

   800 Boylston Street

   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, circular or representation intended for use in the purchase of shares of each Portfolio or any securities mentioned in this report.

The financial information included herein is taken from the Portfolios without examination by an independent registered public accounting firm, who did not express an opinion herein.

(1) Lawrence G. Altadonna served as Treasurer, Principal Financial and Accounting Officer of the Trust for the period covered by this report through April 13, 2018.

(2) Paul Koo is assistant secretary of the Portfolios with a limited authority to open, maintain and close certain custodial and trading accounts for each Portfolio.


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ITEM 2. CODE OF ETHICS

 

(a) Not required in this filing.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Not required in this filing.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not required in this filing.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANT

Disclosure not required for open-end management investment companies.

 

ITEM 6. SCHEDULE OF 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 were no material changes to the procedures by which shareholders may recommend nominees to the Portfolios’ Board of Trustees since the Portfolios’ last provided disclosure in response to this item.

 

ITEM 11. CONTROLS AND PROCEDURES

 

(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))), 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 registrant’s 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 registrant’s internal control over financial reporting.


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ITEM 12. EXHIBITS

(a) (1) Not required in this filing.

(a) (2) Exhibit 99_ 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


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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.

 

AllianzGI Institutional Multi-Series Trust
By:   /s/ Thomas J. Fuccillo                                    
  Thomas J. Fuccillo
  President & Chief Executive Officer
Date: June 1, 2018
By:   /s/ Scott Whisten                                    
  Scott Whisten
 

Treasurer, Principal Financial &

Accounting Officer

Date: June 1, 2018

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/ Thomas J. Fuccillo                            
  Thomas J. Fuccillo
  President & Chief Executive Officer
Date: June 1, 2018
By:   /s/ Scott Whisten                                    
  Scott Whisten
 

Treasurer, Principal Financial &

Accounting Officer

Date: June 1, 2018
EX-99.CERT 2 d518197dex99cert.htm SECTION 302 CERTIFICATIONS Section 302 Certifications

Exhibit 99_ CERT

CERTIFICATIONS

I, Thomas J. Fuccillo, 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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: June 1, 2018

 

Signature & Title:     
  /s/ Thomas J. Fuccillo                          
 

Thomas J. Fuccillo

President & Chief Executive Officer

  


I, Scott Whisten, 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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: June 1, 2018

 

Signature & Title:     
  /s/ Scott Whisten                                                             
 

Scott Whisten

Treasurer, Principal Financial & Accounting Officer

  
EX-99.906CT 3 d518197dex99906ct.htm SECTION 906 CERTIFICATION Section 906 Certification

Exhibit 99.906CERT

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 officer’s 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/ Thomas J. Fuccillo

  Thomas J. Fuccillo
  President & Chief Executive Officer
Date: June 1, 2018
By  

/s/ Scott Whisten

  Scott Whisten
 

Treasurer, Principal Financial Accounting

Officer

Date: June 1, 2018

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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