Schedule of Investments
AllianzGI Diversified Income & Convertible Fund
October 31, 2019 (unaudited)
Principal |
|
|
|
Value^ |
| ||
CONVERTIBLE BONDS & NOTES - 61.7% |
|
|
| ||||
Aerospace & Defense - 0.5% |
|
|
| ||||
|
$650 |
|
Aerojet Rocketdyne Holdings, Inc., 2.25%, 12/15/23 (g) |
|
|
$1,127,290 |
|
|
|
|
| ||||
Apparel & Textiles - 0.1% |
|
|
| ||||
280 |
|
Iconix Brand Group, Inc., 5.75%, 8/15/23 |
|
137,200 |
| ||
|
|
|
| ||||
Auto Components - 0.4% |
|
|
| ||||
1,040 |
|
Meritor, Inc., 3.25%, 10/15/37 (g) |
|
1,070,766 |
| ||
|
|
|
| ||||
Auto Manufacturers - 1.2% |
|
|
| ||||
|
|
Tesla, Inc., |
|
|
| ||
310 |
|
2.00%, 5/15/24 |
|
380,160 |
| ||
2,115 |
|
2.375%, 3/15/22 (g) |
|
2,482,555 |
| ||
|
|
|
|
2,862,715 |
| ||
Biotechnology - 4.2% |
|
|
| ||||
1,260 |
|
Apellis Pharmaceuticals, Inc., 3.50%, 9/15/26 (a)(b) |
|
1,300,959 |
| ||
990 |
|
BioMarin Pharmaceutical, Inc., 0.599%, 8/1/24 (g) |
|
992,649 |
| ||
1,770 |
|
Exact Sciences Corp., 0.375%, 3/15/27 (g) |
|
1,905,723 |
| ||
|
|
Illumina, Inc., |
|
|
| ||
1,170 |
|
zero coupon, 8/15/23 |
|
1,270,565 |
| ||
320 |
|
0.50%, 6/15/21 |
|
417,615 |
| ||
910 |
|
Insmed, Inc., 1.75%, 1/15/25 |
|
781,420 |
| ||
1,420 |
|
Medicines Co., 2.75%, 7/15/23 (g) |
|
1,781,213 |
| ||
|
|
PTC Therapeutics, Inc., |
|
|
| ||
635 |
|
1.50%, 9/15/26 (a)(b) |
|
662,860 |
| ||
850 |
|
3.00%, 8/15/22 (g) |
|
921,870 |
| ||
|
|
|
|
10,034,874 |
| ||
Commercial Services - 2.0% |
|
|
| ||||
1,045 |
|
Chegg, Inc., 0.125%, 3/15/25 (a)(b)(g) |
|
980,524 |
| ||
1,095 |
|
Euronet Worldwide, Inc., 0.75%, 3/15/49 (a)(b)(g) |
|
1,248,012 |
| ||
1,160 |
|
FTI Consulting, Inc., 2.00%, 8/15/23 |
|
1,454,250 |
| ||
935 |
|
Square, Inc., 0.50%, 5/15/23 (g) |
|
1,034,795 |
| ||
|
|
|
|
4,717,581 |
| ||
Computers - 1.3% |
|
|
| ||||
1,270 |
|
Lumentum Holdings, Inc., 0.25%, 3/15/24 (g) |
|
1,608,948 |
| ||
745 |
|
Pure Storage, Inc., 0.125%, 4/15/23 |
|
785,088 |
| ||
460 |
|
Rapid7, Inc., 1.25%, 8/1/23 (g) |
|
637,941 |
| ||
|
|
|
|
3,031,977 |
| ||
Diversified Financial Services - 0.4% |
|
|
| ||||
485 |
|
LendingTree, Inc., 0.625%, 6/1/22 (g) |
|
875,266 |
| ||
|
|
|
| ||||
Electronics - 0.4% |
|
|
| ||||
980 |
|
OSI Systems, Inc., 1.25%, 9/1/22 (g) |
|
1,084,125 |
| ||
|
|
|
| ||||
Energy-Alternate Sources - 0.0% |
|
|
| ||||
3,615 |
|
SunEdison, Inc., 3.375%, 6/1/25 (a)(b)(c) |
|
81,338 |
| ||
|
|
|
| ||||
Engineering & Construction - 0.8% |
|
|
| ||||
1,635 |
|
KBR, Inc., 2.50%, 11/1/23 (a)(b)(g) |
|
2,053,269 |
| ||
|
|
|
| ||||
Entertainment - 0.7% |
|
|
| ||||
1,425 |
|
Live Nation Entertainment, Inc., 2.50%, 3/15/23 (g) |
|
1,746,892 |
| ||
|
|
|
| ||||
Equity Real Estate Investment Trusts (REITs) - 1.2% |
|
|
| ||||
1,880 |
|
Blackstone Mortgage Trust, Inc., 4.375%, 5/5/22 (g) |
|
1,986,925 |
| ||
740 |
|
Extra Space Storage L.P., 3.125%, 10/1/35 (a)(b)(g) |
|
910,270 |
| ||
|
|
|
|
2,897,195 |
| ||
Healthcare-Products - 2.7% |
|
|
| ||||
1,600 |
|
CONMED Corp., 2.625%, 2/1/24 (a)(b)(g) |
|
2,203,645 |
| ||
2,145 |
|
Insulet Corp., 0.375%, 9/1/26 (a)(b) |
|
2,060,541 |
| ||
1,635 |
|
Repligen Corp., 0.375%, 7/15/24 (g) |
|
1,642,996 |
| ||
714 |
|
Wright Medical Group, Inc., 1.625%, 6/15/23 (g) |
|
683,789 |
| ||
|
|
|
|
6,590,971 |
| ||
Healthcare-Services - 2.2% |
|
|
| ||
765 |
|
Anthem, Inc., 2.75%, 10/15/42 (g) |
|
2,895,016 |
|
525 |
|
Invitae Corp., 2.00%, 9/1/24 (a)(b) |
|
478,078 |
|
1,145 |
|
Teladoc Health, Inc., 1.375%, 5/15/25 (g) |
|
1,861,313 |
|
|
|
|
|
5,234,407 |
|
Home Builders - 0.6% |
|
|
| ||
1,435 |
|
Winnebago Industries, Inc., 1.50%, 4/1/25 |
|
1,479,376 |
|
|
|
|
| ||
Internet - 9.1% |
|
|
| ||
1,390 |
|
Booking Holdings, Inc., 0.35%, 6/15/20 (g) |
|
2,167,632 |
|
1,790 |
|
Etsy, Inc., 0.125%, 10/1/26 (a)(b) |
|
1,625,617 |
|
2,650 |
|
IAC FinanceCo 2, Inc., 0.875%, 6/15/26 (a)(b)(g) |
|
2,863,927 |
|
320 |
|
MercadoLibre, Inc., 2.00%, 8/15/28 |
|
453,819 |
|
2,035 |
|
Okta, Inc., 0.125%, 9/1/25 (a)(b) |
|
1,935,904 |
|
1,935 |
|
Palo Alto Networks, Inc., 0.75%, 7/1/23 (g) |
|
2,138,103 |
|
335 |
|
Pinduoduo, Inc., zero coupon, 10/1/24 (a)(b) |
|
390,532 |
|
1,745 |
|
Proofpoint, Inc., 0.25%, 8/15/24 (a)(b)(g) |
|
1,810,437 |
|
1,385 |
|
Q2 Holdings, Inc., 0.75%, 6/1/26 (a)(b)(g) |
|
1,469,168 |
|
750 |
|
RingCentral, Inc., zero coupon, 3/15/23 (g) |
|
1,519,687 |
|
2,060 |
|
Snap, Inc., 0.75%, 8/1/26 (a)(b)(g) |
|
2,087,254 |
|
1,255 |
|
Twitter, Inc., 0.25%, 6/15/24 (g) |
|
1,201,351 |
|
|
|
Wayfair, Inc. (a)(b), |
|
|
|
1,380 |
|
1.00%, 8/15/26 (g) |
|
1,233,959 |
|
245 |
|
1.125%, 11/1/24 |
|
250,771 |
|
685 |
|
Wix.com Ltd., zero coupon, 7/1/23 (g) |
|
784,668 |
|
|
|
|
|
21,932,829 |
|
Iron/Steel - 0.3% |
|
|
| ||
585 |
|
Cleveland-Cliffs, Inc., 1.50%, 1/15/25 |
|
643,261 |
|
|
|
|
| ||
Lodging - 0.6% |
|
|
| ||
850 |
|
Caesars Entertainment Corp., 5.00%, 10/1/24 |
|
1,506,839 |
|
|
|
|
| ||
Media - 4.4% |
|
|
| ||
|
|
DISH Network Corp. (g), |
|
|
|
1,330 |
|
2.375%, 3/15/24 |
|
1,197,203 |
|
2,760 |
|
3.375%, 8/15/26 |
|
2,587,669 |
|
|
|
Liberty Media Corp. (g), |
|
|
|
1,400 |
|
1.00%, 1/30/23 |
|
1,775,755 |
|
1,525 |
|
1.375%, 10/15/23 |
|
1,928,119 |
|
1,705 |
|
2.125%, 3/31/48 (a)(b) |
|
1,780,020 |
|
625 |
|
2.25%, 12/1/48 (a)(b) |
|
740,830 |
|
215 |
|
World Wrestling Entertainment, Inc., 3.375%, 12/15/23 (g) |
|
503,640 |
|
|
|
|
|
10,513,236 |
|
Mining - 0.6% |
|
|
| ||
1,180 |
|
SSR Mining, Inc., 2.50%, 4/1/39 (a)(b)(g) |
|
1,346,675 |
|
|
|
|
| ||
Oil, Gas & Consumable Fuels - 1.7% |
|
|
| ||
960 |
|
Helix Energy Solutions Group, Inc., 4.125%, 9/15/23 |
|
1,163,400 |
|
2,620 |
|
Nabors Industries, Inc., 0.75%, 1/15/24 (g) |
|
1,670,741 |
|
1,620 |
|
Transocean, Inc., 0.50%, 1/30/23 (g) |
|
1,334,744 |
|
|
|
|
|
4,168,885 |
|
Pharmaceuticals - 2.8% |
|
|
| ||
1,570 |
|
DexCom, Inc., 0.75%, 12/1/23 (a)(b)(g) |
|
1,880,139 |
|
1,645 |
|
Horizon Pharma Investment Ltd., 2.50%, 3/15/22 (g) |
|
1,977,590 |
|
725 |
|
Neurocrine Biosciences, Inc., 2.25%, 5/15/24 (g) |
|
1,059,895 |
|
595 |
|
Sarepta Therapeutics, Inc., 1.50%, 11/15/24 (g) |
|
840,520 |
|
960 |
|
Teva Pharmaceutical Finance Co. LLC, 0.25%, 2/1/26, Ser. C (g) |
|
905,108 |
|
|
|
|
|
6,663,252 |
|
Pipelines - 0.9% |
|
|
| ||
2,820 |
|
Cheniere Energy, Inc., 4.25%, 3/15/45 (g) |
|
2,224,275 |
|
|
|
|
| ||
Retail - 0.8% |
|
|
| ||
|
|
RH, |
|
|
|
625 |
|
zero coupon, 6/15/23 |
|
707,038 |
|
1,120 |
|
zero coupon, 9/15/24 (a)(b) |
|
1,172,997 |
|
|
|
|
|
1,880,035 |
|
Semiconductors - 8.5% |
|
|
| ||
520 |
|
Advanced Micro Devices, Inc., 2.125%, 9/1/26 (g) |
|
2,258,567 |
|
865 |
|
Cree, Inc., 0.875%, 9/1/23 |
|
937,195 |
|
1,260 |
|
Inphi Corp., 0.75%, 9/1/21 (g) |
|
1,741,972 |
|
585 |
|
Intel Corp., 3.25%, 8/1/39 (g) |
|
1,630,775 |
|
3,345 |
|
Microchip Technology, Inc., 1.625%, 2/15/27 (g) |
|
4,387,248 |
|
365 |
|
Micron Technology, Inc., 3.125%, 5/1/32, Ser. D (g) |
|
1,736,799 |
|
170 |
|
Novellus Systems, Inc., 2.625%, 5/15/41 (g) |
|
1,429,575 |
|
1,490 |
|
NXP Semiconductors NV, 1.00%, 12/1/19 |
|
1,638,139 |
|
1,640 |
|
ON Semiconductor Corp., 1.625%, 10/15/23 (g) |
|
2,046,641 |
|
1,060 |
|
Silicon Laboratories, Inc., 1.375%, 3/1/22 (g) |
|
1,343,461 |
|
665 |
|
Teradyne, Inc., 1.25%, 12/15/23 (g) |
|
1,323,447 |
|
|
|
|
|
20,473,819 |
|
Software - 9.9% |
|
|
| ||
2,575 |
|
Akamai Technologies, Inc., 0.125%, 5/1/25 (g) |
|
2,896,875 |
|
|
|
Alteryx, Inc. (a)(b), |
|
|
|
745 |
|
0.50%, 8/1/24 |
|
690,803 |
|
1,265 |
|
1.00%, 8/1/26 |
|
1,146,733 |
|
750 |
|
Atlassian, Inc., 0.625%, 5/1/23 (g) |
|
1,193,332 |
|
2,070 |
|
Coupa Software, Inc., 0.125%, 6/15/25 (a)(b)(g) |
|
2,350,928 |
|
910 |
|
DocuSign, Inc., 0.50%, 9/15/23 |
|
1,073,183 |
|
830 |
|
Envestnet, Inc., 1.75%, 6/1/23 (g) |
|
940,716 |
|
880 |
|
Five9, Inc., 0.125%, 5/1/23 (g) |
|
1,305,700 |
|
485 |
|
HubSpot, Inc., 0.25%, 6/1/22 |
|
830,768 |
|
1,180 |
|
j2 Global, Inc., 3.25%, 6/15/29 |
|
1,743,598 |
|
1,010 |
|
LivePerson, Inc., 0.75%, 3/1/24 (a)(b)(g) |
|
1,280,175 |
|
260 |
|
MongoDB, Inc., 0.75%, 6/15/24 |
|
512,447 |
|
775 |
|
ServiceNow, Inc., zero coupon, 6/1/22 (g) |
|
1,453,726 |
|
2,110 |
|
Splunk, Inc., 1.125%, 9/15/25 |
|
2,346,299 |
|
995 |
|
Tabula Rasa HealthCare, Inc., 1.75%, 2/15/26 (a)(b)(g) |
|
1,035,422 |
|
485 |
|
Twilio, Inc., 0.25%, 6/1/23 |
|
738,278 |
|
330 |
|
Workday, Inc., 0.25%, 10/1/22 |
|
421,342 |
|
1,865 |
|
Zynga, Inc., 0.25%, 6/1/24 (a)(b)(g) |
|
1,911,364 |
|
|
|
|
|
23,871,689 |
|
Telecommunications - 2.8% |
|
|
| ||
1,555 |
|
GCI Liberty, Inc., 1.75%, 9/30/46 (a)(b)(g) |
|
2,098,550 |
|
450 |
|
Intelsat S.A., 4.50%, 6/15/25 |
|
725,063 |
|
1,715 |
|
Viavi Solutions, Inc., 1.00%, 3/1/24 (g) |
|
2,304,531 |
|
1,545 |
|
Vonage Holdings Corp., 1.75%, 6/1/24 (a)(b)(g) |
|
1,501,794 |
|
|
|
|
|
6,629,938 |
|
Transportation - 0.6% |
|
|
| ||
1,610 |
|
Air Transport Services Group, Inc., 1.125%, 10/15/24 (g) |
|
1,479,952 |
|
|
|
Total Convertible Bonds & Notes (cost-$145,791,178) |
|
148,359,927 |
|
Shares |
|
|
|
|
|
COMMON STOCK - 33.8% |
|
|
| ||
Aerospace & Defense - 0.7% |
|
|
| ||
3,400 |
|
Boeing Co. (g) |
|
1,155,694 |
|
2,600 |
|
Raytheon Co. (g) |
|
551,746 |
|
|
|
|
|
1,707,440 |
|
Automobiles - 0.3% |
|
|
| ||
72,600 |
|
Ford Motor Co. (g) |
|
623,634 |
|
|
|
|
| ||
Banks - 0.3% |
|
|
| ||
4,911 |
|
CCF Holdings LLC, Class A (cost$0; purchased 12/18/18) (d)(f)(h)(i) |
|
|
|
5,357 |
|
CCF Holdings LLC, Class B (cost$0; purchased 12/12/18) (d)(f)(h)(i) |
|
1 |
|
6,400 |
|
JPMorgan Chase & Co. |
|
799,488 |
|
|
|
|
|
799,489 |
|
Beverages - 0.5% |
|
|
| ||
9,000 |
|
PepsiCo, Inc. |
|
1,234,530 |
|
|
|
|
| ||
Biotechnology - 1.5% |
|
|
| ||
13,200 |
|
AbbVie, Inc. |
|
1,050,060 |
|
1,900 |
|
Biogen, Inc. (i) |
|
567,549 |
|
15,200 |
|
Gilead Sciences, Inc. (g) |
|
968,392 |
|
5,300 |
|
Vertex Pharmaceuticals, Inc. (g)(i) |
|
1,036,044 |
|
|
|
|
|
3,622,045 |
|
Building Products - 0.3% |
|
|
| ||
17,452 |
|
Johnson Controls International PLC |
|
756,195 |
|
|
|
|
| ||
Capital Markets - 0.4% |
|
|
| ||
3,300 |
|
S&P Global, Inc. |
|
851,367 |
|
|
|
|
| ||
Chemicals - 0.3% |
|
|
| ||
16,600 |
|
Chemours Co. |
|
272,406 |
|
3,800 |
|
Corteva, Inc. (i) |
|
100,244 |
|
3,800 |
|
DOW, Inc. (i) |
|
191,862 |
|
3,800 |
|
DuPont de Nemours, Inc. |
|
250,458 |
|
|
|
|
|
814,970 |
|
Communications Equipment - 0.5% |
|
|
| ||
25,100 |
|
Cisco Systems, Inc. |
|
1,192,501 |
|
|
|
|
| ||
Diversified Telecommunication Services - 0.0% |
|
|
| ||
32,499 |
|
Frontier Communications Corp. (i) |
|
29,574 |
|
|
|
|
| ||
Energy Equipment & Services - 0.3% |
|
|
| ||
9,200 |
|
National Oilwell Varco, Inc. |
|
208,104 |
|
12,800 |
|
Schlumberger Ltd. (g) |
|
418,432 |
|
|
|
|
|
626,536 |
|
Entertainment - 0.9% |
|
|
| ||
4,600 |
|
Netflix, Inc. (i) |
|
1,322,086 |
|
5,900 |
|
Walt Disney Co. |
|
766,528 |
|
|
|
|
|
2,088,614 |
|
Equity Real Estate Investment Trusts (REITs) - 0.2% |
|
|
| ||
4,300 |
|
Crown Castle International Corp. |
|
596,797 |
|
|
|
|
| ||
Food & Staples Retailing - 1.2% |
|
|
| ||
4,100 |
|
Costco Wholesale Corp. |
|
1,218,151 |
|
32,900 |
|
Kroger Co. (g) |
|
810,656 |
|
16,700 |
|
Walgreens Boots Alliance, Inc. (g) |
|
914,826 |
|
|
|
|
|
2,943,633 |
|
Healthcare Equipment & Supplies - 1.3% |
|
|
| ||
4,000 |
|
Align Technology, Inc. (i) |
|
1,009,160 |
|
22,500 |
|
Boston Scientific Corp. (i) |
|
938,250 |
|
2,300 |
|
Intuitive Surgical, Inc. (i) |
|
1,271,785 |
|
|
|
|
|
3,219,195 |
|
Healthcare Providers & Services - 1.2% |
|
|
| ||
3,500 |
|
Laboratory Corp. of America Holdings (i) |
|
576,695 |
|
5,100 |
|
McKesson Corp. |
|
678,300 |
|
6,600 |
|
UnitedHealth Group, Inc. |
|
1,667,820 |
|
|
|
|
|
2,922,815 |
|
Hotels, Restaurants & Leisure - 1.1% |
|
|
| ||
5,900 |
|
McDonalds Corp. |
|
1,160,530 |
|
11,500 |
|
Starbucks Corp. (g) |
|
972,440 |
|
4,200 |
|
Wynn Resorts Ltd. |
|
509,628 |
|
|
|
|
|
2,642,598 |
|
Household Durables - 0.3% |
|
|
| ||
15,000 |
|
DR Horton, Inc. (g) |
|
785,550 |
|
|
|
|
| ||
Industrial Conglomerates - 0.8% |
|
|
| ||
3,500 |
|
3M Co. |
|
577,465 |
|
7,300 |
|
Honeywell International, Inc. |
|
1,260,929 |
|
|
|
|
|
1,838,394 |
|
Insurance - 0.4% |
|
|
| ||
12,500 |
|
Progressive Corp. |
|
871,250 |
|
|
|
|
| ||
Interactive Media & Services - 2.1% |
|
|
| ||
2,000 |
|
Alphabet, Inc., Class A (g)(i) |
|
2,517,600 |
|
12,700 |
|
Facebook, Inc., Class A (g)(i) |
|
2,433,955 |
|
|
|
|
|
4,951,555 |
|
Internet & Direct Marketing Retail - 1.5% |
|
|
| ||
6,800 |
|
Alibaba Group Holding Ltd., ADR (g)(i) |
|
1,201,356 |
|
1,400 |
|
Amazon.com, Inc. (g)(i) |
|
2,487,324 |
|
|
|
|
|
3,688,680 |
|
IT Services - 3.0% |
|
|
| ||
12,000 |
|
Fiserv, Inc. (i) |
|
1,273,680 |
|
6,000 |
|
International Business Machines Corp. (g) |
|
802,380 |
|
5,100 |
|
Mastercard, Inc., Class A (g) |
|
1,411,731 |
|
10,700 |
|
PayPal Holdings, Inc. (g)(i) |
|
1,113,870 |
|
14,200 |
|
Visa, Inc. (g) |
|
2,539,812 |
|
|
|
|
|
7,141,473 |
|
Life Sciences Tools & Services - 0.5% |
|
|
| ||
4,100 |
|
Thermo Fisher Scientific, Inc. (g) |
|
1,238,118 |
|
|
|
|
| ||
Machinery - 1.1% |
|
|
| ||
13,300 |
|
Caterpillar, Inc. |
|
1,832,740 |
|
5,000 |
|
Deere & Co. |
|
870,700 |
|
|
|
|
|
2,703,440 |
|
Media - 0.5% |
|
|
| ||
24,200 |
|
Comcast Corp., Class A |
|
1,084,644 |
|
13,574 |
|
LiveStyle, Inc. (d)(f)(i)(j) |
|
1 |
|
|
|
|
|
1,084,645 |
|
Multi-Line Retail - 0.7% |
|
|
| ||
6,300 |
|
Dollar General Corp. |
|
1,010,142 |
|
5,600 |
|
Target Corp. |
|
598,696 |
|
|
|
|
|
1,608,838 |
|
Oil, Gas & Consumable Fuels - 0.7% |
|
|
| ||
14,900 |
|
Occidental Petroleum Corp. |
|
603,450 |
|
60,184 |
|
Southwestern Energy Co. (i) |
|
123,377 |
|
9,500 |
|
Valero Energy Corp. (g) |
|
921,310 |
|
|
|
|
|
1,648,137 |
|
Pharmaceuticals - 1.8% |
|
|
| ||
10,000 |
|
Allergan PLC |
|
1,761,100 |
|
16,200 |
|
Bristol-Myers Squibb Co. |
|
929,394 |
|
14,700 |
|
Merck & Co., Inc. (g) |
|
1,273,902 |
|
43,950 |
|
Teva Pharmaceutical Industries Ltd., ADR (i) |
|
358,193 |
|
|
|
|
|
4,322,589 |
|
Road & Rail - 0.3% |
|
|
| ||
4,800 |
|
Union Pacific Corp. |
|
794,208 |
|
|
|
|
| ||
Semiconductors & Semiconductor Equipment - 3.1% |
|
|
| ||
12,600 |
|
Advanced Micro Devices, Inc. (g)(i) |
|
427,518 |
|
4,100 |
|
Broadcom, Inc. (g) |
|
1,200,685 |
|
2,200 |
|
Lam Research Corp. |
|
596,288 |
|
35,500 |
|
Marvell Technology Group Ltd. |
|
865,845 |
|
25,300 |
|
Micron Technology, Inc. (i) |
|
1,203,015 |
|
6,400 |
|
NVIDIA Corp. |
|
1,286,528 |
|
9,700 |
|
QUALCOMM, Inc. (g) |
|
780,268 |
|
9,100 |
|
Texas Instruments, Inc. (g) |
|
1,073,709 |
|
|
|
|
|
7,433,856 |
|
Software - 3.7% |
|
|
| ||
7,200 |
|
Adobe, Inc. (i) |
|
2,001,096 |
|
3,000 |
|
Atlassian Corp. PLC, Class A (i) |
|
362,370 |
|
3,200 |
|
Intuit, Inc. |
|
824,000 |
|
20,200 |
|
Microsoft Corp. |
|
2,896,074 |
|
8,000 |
|
Salesforce.com, Inc. (i) |
|
1,251,920 |
|
4,700 |
|
ServiceNow, Inc. (g)(i) |
|
1,162,122 |
|
3,100 |
|
Workday, Inc., Class A (i) |
|
502,696 |
|
|
|
|
|
9,000,278 |
|
Specialty Retail - 0.7% |
|
|
| ||
7,000 |
|
Home Depot, Inc. |
|
1,642,060 |
|
|
|
|
| ||
Technology Hardware, Storage & Peripherals - 1.3% |
|
|
| ||
10,100 |
|
Apple, Inc. (g) |
|
2,512,476 |
|
12,700 |
|
NetApp, Inc. |
|
709,676 |
|
|
|
|
|
3,222,152 |
|
Textiles, Apparel & Luxury Goods - 0.3% |
|
|
| ||
8,300 |
|
NIKE, Inc., Class B |
|
743,265 |
|
|
|
Total Common Stock (cost-$96,588,407) |
|
81,390,421 |
|
Principal |
|
|
|
|
| |
CORPORATE BONDS & NOTES - 26.9% |
|
|
| |||
Advertising - 0.1% |
|
|
| |||
|
$320 |
|
National CineMedia LLC, 5.875%, 4/15/28 (a)(b) |
|
337,152 |
|
|
|
|
| |||
Aerospace & Defense - 0.8% |
|
|
| |||
|
|
TransDigm, Inc., |
|
|
| |
680 |
|
5.50%, 11/15/27 (a)(b) |
|
679,449 |
| |
1,000 |
|
6.50%, 5/15/25 (g) |
|
1,041,250 |
| |
200 |
|
Triumph Group, Inc., 6.25%, 9/15/24 (a)(b) |
|
210,500 |
| |
|
|
|
|
1,931,199 |
| |
Auto Components - 0.6% |
|
|
| |||
360 |
|
Adient U.S. LLC, 7.00%, 5/15/26 (a)(b)(g) |
|
380,250 |
| |
465 |
|
Goodyear Tire & Rubber Co., 5.00%, 5/31/26 (g) |
|
482,437 |
| |
475 |
|
Panther BF Aggregator 2 L.P., 8.50%, 5/15/27 (a)(b)(g) |
|
478,563 |
| |
|
|
|
|
1,341,250 |
| |
Auto Manufacturers - 0.4% |
|
|
| |||
535 |
|
Navistar International Corp., 6.625%, 11/1/25 (a)(b)(g) |
|
548,375 |
| |
535 |
|
Tesla, Inc., 5.30%, 8/15/25 (a)(b)(g) |
|
507,581 |
| |
|
|
|
|
1,055,956 |
| |
Building Materials - 0.1% |
|
|
| |||
161 |
|
Builders FirstSource, Inc., 5.625%, 9/1/24 (a)(b) |
|
167,843 |
| |
|
|
|
| |||
Chemicals - 0.4% |
|
|
| |||
875 |
|
Tronox, Inc., 6.50%, 4/15/26 (a)(b)(g) |
|
843,281 |
| |
|
|
|
| |||
Commercial Services - 1.8% |
|
|
| |||
350 |
|
Cenveo Corp., 6.00%, 5/15/24 (cost$415,109; purchased 12/14/15) (a)(b)(c)(d)(f)(h) |
|
19,250 |
| |
475 |
|
Herc Holdings, Inc., 5.50%, 7/15/27 (a)(b) |
|
494,000 |
| |
|
|
Hertz Corp. (a)(b), |
|
|
| |
660 |
|
7.125%, 8/1/26 |
|
682,688 |
| |
295 |
|
7.625%, 6/1/22 |
|
306,800 |
| |
475 |
|
Laureate Education, Inc., 8.25%, 5/1/25 (a)(b)(g) |
|
517,750 |
| |
915 |
|
RR Donnelley & Sons Co., 6.00%, 4/1/24 (g) |
|
949,312 |
| |
|
|
United Rentals North America, Inc. (g), |
|
|
| |
310 |
|
5.25%, 1/15/30 |
|
327,050 |
| |
1,000 |
|
5.50%, 7/15/25 |
|
1,042,450 |
| |
|
|
|
|
4,339,300 |
| |
Computers - 0.4% |
|
|
| |||
520 |
|
Dell International LLC, 7.125%, 6/15/24 (a)(b)(g) |
|
551,980 |
| |
345 |
|
Harland Clarke Holdings Corp., 9.25%, 3/1/21 (a)(b) |
|
322,144 |
| |
|
|
|
|
874,124 |
| |
Containers & Packaging - 0.4% |
|
|
| |||
455 |
|
Berry Global, Inc., 5.625%, 7/15/27 (a)(b)(g) |
|
484,006 |
| |
450 |
|
Trivium Packaging Finance BV, 8.50%, 8/15/27 (a)(b)(g) |
|
479,250 |
| |
|
|
|
|
963,256 |
| |
Distribution/Wholesale - 0.2% |
|
|
| |||
|
|
|
|
|
| |
495 |
|
H&E Equipment Services, Inc., 5.625%, 9/1/25 (g) |
|
522,225 |
| |
|
|
|
| |||
Diversified Financial Services - 1.9% |
|
|
| |||
1,688 |
|
CCF Holdings LLC, PIK 10.75%, 10.75%, 12/15/23 (a)(b)(d)(f) |
|
828,427 |
| |
1,500 |
|
Community Choice Financial Issuer LLC, 9.00%, 6/15/23 (cost$1,500,000; purchased 9/6/18) (a)(b)(g)(h) |
|
1,503,750 |
| |
495 |
|
Navient Corp., 6.75%, 6/15/26 (g) |
|
518,512 |
| |
|
|
Springleaf Finance Corp. (g), |
|
|
| |
460 |
|
6.625%, 1/15/28 |
|
510,600 |
| |
1,000 |
|
8.25%, 10/1/23 |
|
1,170,000 |
|
|
|
|
|
4,531,289 |
|
Electric Utilities - 0.3% |
|
|
| ||
1,000 |
|
Talen Energy Supply LLC, 6.50%, 6/1/25 (g) |
|
755,020 |
|
|
|
|
| ||
Electronic Equipment, Instruments & Components - 0.3% |
|
|
| ||
750 |
|
Energizer Holdings, Inc., 7.75%, 1/15/27 (a)(b)(g) |
|
832,500 |
|
|
|
|
| ||
Engineering & Construction - 0.4% |
|
|
| ||
500 |
|
AECOM, 5.875%, 10/15/24 (g) |
|
541,250 |
|
435 |
|
Tutor Perini Corp., 6.875%, 5/1/25 (a)(b)(g) |
|
434,935 |
|
|
|
|
|
976,185 |
|
Entertainment - 1.0% |
|
|
| ||
885 |
|
AMC Entertainment Holdings, Inc., 6.125%, 5/15/27 (g) |
|
804,797 |
|
250 |
|
Cedar Fair L.P., 5.375%, 6/1/24 (g) |
|
257,500 |
|
1,000 |
|
Scientific Games International, Inc., 5.00%, 10/15/25 (a)(b)(g) |
|
1,032,500 |
|
390 |
|
Stars Group Holdings BV, 7.00%, 7/15/26 (a)(b) |
|
421,687 |
|
|
|
|
|
2,516,484 |
|
Equity Real Estate Investment Trusts (REITs) - 0.0% |
|
|
| ||
60 |
|
CyrusOne L.P., 5.375%, 3/15/27 |
|
64,106 |
|
|
|
|
| ||
Food & Beverage - 0.4% |
|
|
| ||
310 |
|
Albertsons Cos., Inc., 7.50%, 3/15/26 (a)(b)(g) |
|
346,037 |
|
495 |
|
Post Holdings, Inc., 5.75%, 3/1/27 (a)(b)(g) |
|
529,467 |
|
|
|
|
|
875,504 |
|
Food Service - 0.2% |
|
|
| ||
390 |
|
Aramark Services, Inc., 5.00%, 2/1/28 (a)(b)(g) |
|
409,013 |
|
|
|
|
| ||
Healthcare-Products - 0.4% |
|
|
| ||
590 |
|
Avantor, Inc., 9.00%, 10/1/25 (a)(b)(g) |
|
660,623 |
|
260 |
|
Hill-Rom Holdings, Inc., 5.00%, 2/15/25 (a)(b)(g) |
|
270,725 |
|
|
|
|
|
931,348 |
|
Healthcare-Services - 1.6% |
|
|
| ||
1,000 |
|
Community Health Systems, Inc., 6.875%, 2/1/22 (g) |
|
777,500 |
|
800 |
|
DaVita, Inc., 5.125%, 7/15/24 (g) |
|
818,616 |
|
413 |
|
Encompass Health Corp., 5.75%, 11/1/24 (g) |
|
418,421 |
|
500 |
|
HCA, Inc., 7.50%, 2/15/22 |
|
556,000 |
|
475 |
|
Select Medical Corp., 6.25%, 8/15/26 (a)(b)(g) |
|
507,062 |
|
|
|
Tenet Healthcare Corp., |
|
|
|
490 |
|
6.25%, 2/1/27 (a)(b)(g) |
|
518,175 |
|
245 |
|
8.125%, 4/1/22 |
|
266,131 |
|
|
|
|
|
3,861,905 |
|
Home Builders - 0.4% |
|
|
| ||
1,000 |
|
KB Home, 8.00%, 3/15/20 (g) |
|
1,022,800 |
|
|
|
|
| ||
Internet - 0.7% |
|
|
| ||
460 |
|
Go Daddy Operating Co. LLC, 5.25%, 12/1/27 (a)(b)(g) |
|
489,325 |
|
505 |
|
Netflix, Inc., 5.375%, 11/15/29 (a)(b)(g) |
|
533,406 |
|
305 |
|
Symantec Corp., 5.00%, 4/15/25 (a)(b)(g) |
|
312,804 |
|
350 |
|
Zayo Group LLC, 5.75%, 1/15/27 (a)(b)(g) |
|
356,608 |
|
|
|
|
|
1,692,143 |
|
Lodging - 0.6% |
|
|
| ||
355 |
|
MGM Resorts International, 5.50%, 4/15/27 (g) |
|
391,388 |
|
1,000 |
|
Wynn Las Vegas LLC, 5.50%, 3/1/25 (a)(b)(g) |
|
1,065,000 |
|
|
|
|
|
1,456,388 |
|
Machinery-Construction & Mining - 0.1% |
|
|
| ||
330 |
|
Terex Corp., 5.625%, 2/1/25 (a)(b)(g) |
|
332,888 |
|
|
|
|
| ||
Media - 2.9% |
|
|
| ||
1,000 |
|
Cablevision Systems Corp., 8.00%, 4/15/20 |
|
1,027,500 |
|
|
|
CCO Holdings LLC (a)(b)(g), |
|
|
|
470 |
|
5.125%, 5/1/27 |
|
496,437 |
|
300 |
|
5.50%, 5/1/26 |
|
316,875 |
|
417 |
|
Clear Channel Worldwide Holdings, Inc., 9.25%, 2/15/24 (a)(b) |
|
459,482 |
|
|
|
CSC Holdings LLC (a)(b)(g), |
|
|
|
460 |
|
7.50%, 4/1/28 |
|
519,800 |
|
750 |
|
7.75%, 7/15/25 |
|
806,250 |
|
|
|
Diamond Sports Group LLC (a)(b), |
|
|
|
170 |
|
5.375%, 8/15/26 |
|
177,863 |
|
455 |
|
6.625%, 8/15/27 |
|
469,787 |
|
|
|
DISH DBS Corp., |
|
|
|
165 |
|
5.875%, 7/15/22 |
|
173,177 |
|
355 |
|
5.875%, 11/15/24 |
|
357,219 |
|
1,000 |
|
Gray Television, Inc., 5.875%, 7/15/26 (a)(b)(g) |
|
1,053,770 |
|
330 |
|
Meredith Corp., 6.875%, 2/1/26 |
|
341,791 |
|
475 |
|
Nexstar Broadcasting, Inc., 5.625%, 7/15/27 (a)(b)(g) |
|
502,170 |
|
310 |
|
Virgin Media Secured Finance PLC, 5.50%, 5/15/29 (a)(b)(g) |
|
330,150 |
|
|
|
|
|
7,032,271 |
|
Metal Fabricate/Hardware - 0.2% |
|
|
| ||
470 |
|
Park-Ohio Industries, Inc., 6.625%, 4/15/27 (g) |
|
453,550 |
|
|
|
|
| ||
Mining - 0.8% |
|
|
| ||
480 |
|
Alcoa Nederland Holding BV, 6.75%, 9/30/24 (a)(b)(g) |
|
507,000 |
|
695 |
|
Constellium SE, 6.625%, 3/1/25 (a)(b)(g) |
|
729,090 |
|
170 |
|
Hudbay Minerals, Inc., 7.625%, 1/15/25 (a)(b) |
|
173,931 |
|
500 |
|
Joseph T. Ryerson & Son, Inc., 11.00%, 5/15/22 (a)(b) |
|
531,250 |
|
|
|
|
|
1,941,271 |
|
Miscellaneous Manufacturing - 0.1% |
|
|
| ||
285 |
|
Koppers, Inc., 6.00%, 2/15/25 (a)(b)(g) |
|
285,559 |
|
|
|
|
| ||
Oil, Gas & Consumable Fuels - 2.0% |
|
|
| ||
140 |
|
AmeriGas Partners L.P., 5.875%, 8/20/26 |
|
155,750 |
|
250 |
|
Callon Petroleum Co., 6.125%, 10/1/24 (g) |
|
238,750 |
|
1,000 |
|
Carrizo Oil & Gas, Inc., 6.25%, 4/15/23 (g) |
|
935,000 |
|
1,040 |
|
Chesapeake Energy Corp., 8.00%, 3/15/26 (a)(b)(g) |
|
665,600 |
|
1,000 |
|
CVR Refining LLC, 6.50%, 11/1/22 (g) |
|
1,012,500 |
|
345 |
|
Oasis Petroleum, Inc., 6.875%, 3/15/22 (g) |
|
307,913 |
|
|
|
Sunoco L.P. (g), |
|
|
|
300 |
|
5.50%, 2/15/26 |
|
310,905 |
|
170 |
|
5.875%, 3/15/28 |
|
178,928 |
|
495 |
|
Transocean, Inc., 7.50%, 1/15/26 (a)(b)(g) |
|
443,025 |
|
465 |
|
USA Compression Partners L.P., 6.875%, 9/1/27 (a)(b)(g) |
|
467,325 |
|
|
|
|
|
4,715,696 |
|
Paper & Forest Products - 0.2% |
|
|
| ||
365 |
|
Mercer International, Inc., 7.375%, 1/15/25 (g) |
|
379,600 |
|
|
|
|
| ||
Pharmaceuticals - 0.8% |
|
|
| ||
295 |
|
Bausch Health Americas, Inc., 8.50%, 1/31/27 (a)(b)(g) |
|
332,613 |
|
|
|
Bausch Health Cos., Inc. (a)(b)(g), |
|
|
|
330 |
|
6.125%, 4/15/25 |
|
343,406 |
|
450 |
|
7.25%, 5/30/29 |
|
496,687 |
|
330 |
|
Endo Finance LLC, 5.375%, 1/15/23 (a)(b) |
|
209,550 |
|
465 |
|
Horizon Pharma USA, Inc., 5.50%, 8/1/27 (a)(b) |
|
485,925 |
|
|
|
|
|
1,868,181 |
|
Pipelines - 1.0% |
|
|
| ||
1,000 |
|
Crestwood Midstream Partners L.P., 5.75%, 4/1/25 |
|
1,037,500 |
|
370 |
|
DCP Midstream Operating L.P., 5.125%, 5/15/29 |
|
376,938 |
|
450 |
|
NGL Energy Partners L.P., 7.50%, 4/15/26 (a)(b)(g) |
|
431,869 |
|
|
|
Targa Resources Partners L.P. (a)(b)(g), |
|
|
|
335 |
|
6.50%, 7/15/27 |
|
359,294 |
|
230 |
|
6.875%, 1/15/29 |
|
249,263 |
|
|
|
|
|
2,454,864 |
|
Real Estate - 0.3% |
|
|
| ||
700 |
|
Kennedy-Wilson, Inc., 5.875%, 4/1/24 (g) |
|
728,000 |
|
|
|
|
| ||
Retail - 1.0% |
|
|
| ||
1,000 |
|
Conns, Inc., 7.25%, 7/15/22 (g) |
|
1,017,500 |
|
300 |
|
L Brands, Inc., 6.875%, 11/1/35 (g) |
|
256,500 |
|
1,000 |
|
Neiman Marcus Group Ltd. LLC, 8.00%, 10/15/21 (a)(b)(g) |
|
695,000 |
|
480 |
|
Party City Holdings, Inc., 6.625%, 8/1/26 (a)(b)(g) |
|
465,600 |
|
|
|
|
|
2,434,600 |
|
Semiconductors - 0.2% |
|
|
| ||
475 |
|
Amkor Technology, Inc., 6.625%, 9/15/27 (a)(b)(g) |
|
522,500 |
|
Software - 1.0% |
|
|
| ||
480 |
|
IQVIA, Inc., 5.00%, 5/15/27 (a)(b)(g) |
|
510,000 |
|
1,000 |
|
j2 Cloud Services LLC, 6.00%, 7/15/25 (a)(b) |
|
1,066,250 |
|
230 |
|
Rackspace Hosting, Inc., 8.625%, 11/15/24 (a)(b)(g) |
|
211,600 |
|
480 |
|
SS&C Technologies, Inc., 5.50%, 9/30/27 (a)(b)(g) |
|
513,000 |
|
|
|
|
|
2,300,850 |
|
Telecommunications - 2.6% |
|
|
| ||
600 |
|
CenturyLink, Inc., 7.50%, 4/1/24, Ser. Y (g) |
|
682,500 |
|
800 |
|
Cincinnati Bell, Inc., 7.00%, 7/15/24 (a)(b)(g) |
|
726,000 |
|
315 |
|
CommScope Technologies LLC, 6.00%, 6/15/25 (a)(b) |
|
283,579 |
|
1,000 |
|
Consolidated Communications, Inc., 6.50%, 10/1/22 (g) |
|
907,500 |
|
1,000 |
|
Hughes Satellite Systems Corp., 7.625%, 6/15/21 (g) |
|
1,080,000 |
|
500 |
|
Intelsat Jackson Holdings S.A., 5.50%, 8/1/23 (g) |
|
470,000 |
|
500 |
|
Level 3 Financing, Inc., 5.375%, 5/1/25 (g) |
|
518,125 |
|
365 |
|
Sprint Corp., 7.625%, 3/1/26 (g) |
|
404,694 |
|
1,000 |
|
T-Mobile USA, Inc., 4.75%, 2/1/28 (g) |
|
1,057,500 |
|
|
|
|
|
6,129,898 |
|
Transportation - 0.3% |
|
|
| ||
XPO Logistics, Inc. (a)(b), |
|
|
| ||
600 |
|
6.125%, 9/1/23 |
|
619,500 |
|
150 |
|
6.50%, 6/15/22 (g) |
|
153,188 |
|
|
|
|
|
772,688 |
|
Total Corporate Bonds & Notes (cost-$65,744,893) |
|
64,652,687 |
|
Shares |
|
|
|
|
|
CONVERTIBLE PREFERRED STOCK - 14.0% |
|
|
| ||
Banks - 4.0% |
|
|
| ||
3,445 |
|
Bank of America Corp., 7.25%, Ser. L (e)(g) |
|
5,224,653 |
|
2,945 |
|
Wells Fargo & Co., 7.50%, Ser. L (e)(g) |
|
4,445,477 |
|
|
|
|
|
9,670,130 |
|
Electric Utilities - 2.3% |
|
|
| ||
19,360 |
|
American Electric Power Co., Inc., 6.125%, 3/15/22 (g) |
|
1,064,606 |
|
16,815 |
|
NextEra Energy, Inc., 4.872%, 9/1/22 |
|
855,211 |
|
14,395 |
|
Sempra Energy, 6.00%, 1/15/21, Ser. A (g) |
|
1,670,252 |
|
36,970 |
|
Southern Co., 6.75%, 8/1/22 (g) |
|
1,965,325 |
|
|
|
|
|
5,555,394 |
|
Electronics - 0.3% |
|
|
| ||
725 |
|
Fortive Corp., 5.00%, 7/1/21, Ser. A (g) |
|
652,899 |
|
|
|
|
| ||
Equity Real Estate Investment Trusts (REITs) - 1.2% |
|
|
| ||
2,360 |
|
Crown Castle International Corp., 6.875%, 8/1/20, Ser. A (g) |
|
2,939,828 |
|
|
|
|
| ||
Hand/Machine Tools - 1.3% |
|
|
| ||
11,015 |
|
Colfax Corp., 5.75%, 1/15/22 (g) |
|
1,614,909 |
|
14,425 |
|
Stanley Black & Decker, Inc., 5.375%, 5/15/20 (g) |
|
1,470,485 |
|
|
|
|
|
3,085,394 |
|
Healthcare-Products - 2.3% |
|
|
| ||
20,895 |
|
Avantor, Inc., 6.25%, 5/15/22, Ser. A (g) |
|
1,086,749 |
|
34,585 |
|
Becton Dickinson and Co., 6.125%, 5/1/20, Ser. A (g) |
|
2,133,203 |
|
2,090 |
|
Danaher Corp., 4.75%, 4/15/22, Ser. A (g) |
|
2,320,569 |
|
|
|
|
|
5,540,521 |
|
Insurance - 0.7% |
|
|
| ||
13,870 |
|
Assurant, Inc., 6.50%, 3/15/21, Ser. D (g) |
|
1,733,334 |
|
|
|
|
| ||
Semiconductors - 1.9% |
|
|
| ||
4,205 |
|
Broadcom, Inc., 8.00%, 9/30/22, Ser. A |
|
4,554,099 |
|
|
|
Total Convertible Preferred Stock (cost-$31,196,457) |
|
33,731,599 |
|
|
|
|
| ||
PREFERRED STOCK (a)(d)(f)(i)(j)- 0.5% |
|
|
| ||
|
|
|
| ||
Media - 0.5% |
|
|
| ||
532 |
|
LiveStyle, Inc., Ser. A |
|
77,699 |
|
11,500 |
|
LiveStyle, Inc., Ser. B |
|
1,150,000 |
|
1,250 |
|
LiveStyle, Inc., Ser. B |
|
12 |
|
Total Preferred Stock (cost-$2,429,842) |
|
1,227,711 |
|
Units |
|
|
|
|
|
WARRANTS (a)(d)(f)(i)(j) - 0.0% |
|
|
| ||
Media - 0.0% |
|
|
| ||
3,000 |
|
LiveStyle, Inc., expires 11/30/21, Ser. C (cost-$0) |
|
|
|
Principal |
|
|
|
|
|
Repurchase Agreements - 8.8% |
|
|
| ||
$21,171 |
|
State Street Bank and Trust Co., dated 10/31/19, 0.25%, due 11/1/19, proceeds $21,171,147; collateralized by U.S. Treasury Notes, 2.375%, due 2/29/24, valued at $21,598,898 including accrued interest (cost-$21,171,000) |
|
21,171,000 |
|
|
|
|
|
|
|
Total Investments, before options written (cost-$362,921,777)-145.7% |
|
350,533,345 |
| ||
|
|
|
| ||
Total Options Written (0.0)% (premiums received-$43,314) (i)(k)(l) |
|
(41,239 |
) | ||
|
|
|
| ||
Total Investments, net of options written (cost-$362,878,463) (m)-145.7% |
|
350,492,106 |
| ||
Other liabilities in excess of other assets-(45.7)% |
|
(109,975,739 |
) | ||
Net Assets-100.0% |
|
$240,516,367 |
|
Notes to Schedule of Investments:
^ Portfolio securities and other financial instruments for which market quotations are readily available are valued at market value. Market values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, or based on quotes or other market information obtained from quotation reporting systems, established market makers or pricing services. Investments in mutual funds are valued at the net asset value (NAV) as reported on each business day. The Funds investments are valued daily using prices supplied by an independent pricing service or broker/dealer quotations, or by using the last sale or settlement price on the exchange that is the primary market for such securities, or the mean between the last bid and ask quotations. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.
The Board of Trustees of the Fund (the Board) has adopted procedures for valuing portfolio securities and other financial derivative instruments in circumstances where market quotes are not readily available (including in cases where available market quotes are deemed to be unreliable), and has delegated responsibility for applying the valuation methods to the investment manager, Allianz Global Investors U.S. LLC (the Investment Manager). The Funds Valuation Committee was established by the Board to oversee the implementation of the Funds valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Investment Manager monitors the continued appropriateness of methods applied and identifies circumstances and events that may require fair valuation. The Investment Manager determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Investment Manager determines that a valuation method may no longer be appropriate, another valuation method previously approved by the Funds Valuation Committee may be selected or the Funds Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review and ratify the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Funds Valuation Committee.
Short-term debt investments having a remaining maturity of 60 days or less are valued at amortized cost unless the Board or its Valuation Committee determines that particular circumstances dictate otherwise.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Fund may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States. or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange (NYSE) is closed.
The prices used by the Fund to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material. The Funds NAV is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern Time) on the New York Stock Exchange (NYSE) on each day the NYSE is open for business. In unusual circumstances, the Board or the Valuation Committee may in good faith determine the NAV as of 4:00 p.m., Eastern Time, notwithstanding an earlier, unscheduled close or halt of trading on the NYSE. The prices of certain portfolio securities or financial instruments may be determined at a time prior to the close of regular trading on the NYSE. In considering whether fair value pricing is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time the NAV of the Fund is calculated. With respect to certain foreign securities, the Fund may fair-value securities using modeling tools provided by third- party vendors, where appropriate. The Fund has retained a statistical research service to assist in determining the fair value of foreign securities. This service utilizes statistics and programs based on historical performance of markets and other economic data to assist in making fair value estimates. Fair value estimates used by the Fund for foreign securities may differ from the value realized from the sale of those securities and the difference could be material to the financial statements. Fair value pricing may require subjective determinations about the value of a security or other assets, and fair values used to determine the NAV of the Fund may differ from quoted or published prices, or from prices that are used by others, for the same investments. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities or other assets held by the Fund.
|
|
Actual amount rounds to less than $1. |
(a) |
|
Private PlacementRestricted as to resale and may not have a readily available market. Securities with an aggregate value of $82,817,188, representing 34.4% of net assets. |
(b) |
|
144AExempt 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 $81,589,477, representing 33.9% of net assets. |
(c) |
|
In default. |
(d) |
|
Fair-ValuedSecurities with an aggregate value of $2,075,390, representing 0.9% of net assets. |
(e) |
|
Perpetual maturity. The date shown, if any, is the next call date. |
(f) |
|
Level 3 security. |
(g) |
|
All or partial amount segregated for the benefit of the counterparty as collateral for options written and long-term and short-term loan financing. |
(h) |
|
Restricted. The aggregate cost of such securities is $1,915,109. The aggregate value is $1,523,001, representing 0.6% of net assets. |
(i) |
|
Non-income producing. |
(j) |
|
A member of the Funds portfolio management team is a member of the board of directors of LiveStyle, Inc. The Funds aggregate value of investments in LiveStyle, Inc. represents 0.5% of net assets. |
(k) |
|
Exchange traded-Chicago Board Options Exchange. |
(l) |
|
Exchange traded option contracts outstanding at October 31, 2019: |
Options written contracts outstanding at October 31, 2019:
Description |
|
Exercise Price |
|
Expiration |
|
Number of |
|
Notional |
|
Market |
|
Premiums Received |
|
Unrealized |
| |||
Call options: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Advanced Micro Devices, Inc. |
|
36.00 USD |
|
11/15/19 |
|
(30 |
) |
$(3,000 |
) |
|
$(1,125 |
) |
|
$(1,633 |
) |
|
$508 |
|
Alibaba Group Holding Ltd. |
|
200.00 USD |
|
11/15/19 |
|
(50 |
) |
(5,000 |
) |
(1,625 |
) |
(702 |
) |
(923 |
) | |||
Alphabet, Inc. |
|
1,400.00 USD |
|
12/20/19 |
|
(5 |
) |
(500 |
) |
(575 |
) |
(3,834 |
) |
3,259 |
| |||
Amazon.com, Inc. |
|
2,000.00 USD |
|
11/15/19 |
|
(6 |
) |
(600 |
) |
(204 |
) |
(1,440 |
) |
1,236 |
| |||
Apple, Inc. |
|
260.00 USD |
|
11/15/19 |
|
(49 |
) |
(4,900 |
) |
(3,430 |
) |
(2,900 |
) |
(530 |
) | |||
Boeing Co. |
|
415.00 USD |
|
12/20/19 |
|
(20 |
) |
(2,000 |
) |
(430 |
) |
(945 |
) |
515 |
| |||
DR Horton, Inc. |
|
55.00 USD |
|
11/15/19 |
|
(75 |
) |
(7,500 |
) |
(5,175 |
) |
(2,322 |
) |
(2,853 |
) | |||
Facebook, Inc. |
|
210.00 USD |
|
12/20/19 |
|
(60 |
) |
(6,000 |
) |
(9,240 |
) |
(11,450 |
) |
2,210 |
| |||
Mastercard, Inc. |
|
292.50 USD |
|
11/15/19 |
|
(30 |
) |
(3,000 |
) |
(1,260 |
) |
(2,451 |
) |
1,191 |
| |||
Merck & Co., Inc. |
|
86.50 USD |
|
11/15/19 |
|
(60 |
) |
(6,000 |
) |
(7,590 |
) |
(1,217 |
) |
(6,373 |
) | |||
PayPal Holdings, Inc. |
|
112.00 USD |
|
11/15/19 |
|
(75 |
) |
(7,500 |
) |
(937 |
) |
(1,667 |
) |
730 |
| |||
Raytheon Co. |
|
220.00 USD |
|
11/15/19 |
|
(10 |
) |
(1,000 |
) |
(880 |
) |
(391 |
) |
(489 |
) | |||
ServiceNow, Inc. |
|
290.00 USD |
|
11/15/19 |
|
(31 |
) |
(3,100 |
) |
(1,240 |
) |
(2,431 |
) |
1,191 |
|
Starbucks Corp. |
|
92.50 USD |
|
12/20/19 |
|
(70 |
) |
(7,000 |
) |
(1,435 |
) |
(3,151 |
) |
1,716 |
|
Texas Instruments, Inc. |
|
140.00 USD |
|
11/15/19 |
|
(45 |
) |
(4,500 |
) |
(22 |
) |
(2,133 |
) |
2,111 |
|
Thermo Fisher Scientific, Inc. |
|
310.00 USD |
|
11/15/19 |
|
(23 |
) |
(2,300 |
) |
(3,048 |
) |
(862 |
) |
(2,186 |
) |
Vertex Pharmaceuticals, Inc. |
|
220.00 USD |
|
12/20/19 |
|
(15 |
) |
(1,500 |
) |
(2,513 |
) |
(2,416 |
) |
(97 |
) |
Visa, Inc. |
|
187.50 USD |
|
11/15/19 |
|
(30 |
) |
(3,000 |
) |
(510 |
) |
(1,369 |
) |
859 |
|
Total options written contracts |
|
|
|
|
|
|
|
|
|
$(41,239 |
) |
$(43,314 |
) |
$2,075 |
|
(m) |
|
At October 31, 2019, the cost basis of portfolio securities for federal income tax purposes was $363,693,378. Gross unrealized appreciation was $16,364,900; gross unrealized depreciation was $29,566,172; and net unrealized depreciation was $13,201,272. The difference between book and tax cost basis was attributable to wash sale loss deferrals and differing treatment of bond premium amortization. |
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:
· Level 1 quoted prices in active markets for identical investments that the Fund has the ability to access
· Level 2 valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs
· Level 3 valuations based on significant unobservable inputs (including the Investment Managers or the Funds Valuation Committees own assumptions and securities whose price was determined by using a single brokers quote)
The valuation techniques used by the Fund to measure fair value during the nine months ended October 31, 2019 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.
An investment assets or liabilitys level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each major category of assets and liabilities within Level 2 and Level 3, in accordance with accounting principles generally acceptable in the United States of America.
An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Funds valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Funds valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the securitys sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available.
Equity Securities (Common and Preferred Stock and Warrants) Equity securities traded in inactive markets are valued using inputs which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or evaluated price quotes received from independent pricing services that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable, the values of equity securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Convertible Bonds & Notes Convertible bonds & notes are valued by independent pricing services based on various inputs and techniques, which include broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of convertible bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Corporate Bonds & Notes Corporate bonds & notes are generally comprised of two main categories: investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
Option Contracts Option contracts traded over-the-counter (OTC) and FLexible EXchange (FLEX) options are valued by independent pricing services based on pricing models that incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts based on a given strike price. To the extent that these inputs are observable, the values of OTC and FLEX option contracts are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.
A summary of the inputs used at October 31, 2019 in valuing the Funds assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):
|
|
|
|
Level 2 - |
|
Level 3 - |
|
|
| ||||
|
|
|
|
Other Significant |
|
Significant |
|
|
| ||||
|
|
Level 1 - |
|
Observable |
|
Unobservable |
|
Value at |
| ||||
|
|
Quoted Prices |
|
Inputs |
|
Inputs |
|
10/31/19 |
| ||||
Investments in Securities - Assets |
|
|
|
|
|
|
|
|
| ||||
Convertible Bonds & Notes |
|
|
|
|
$148,359,927 |
|
|
|
|
$148,359,927 |
| ||
Common Stock: |
|
|
|
|
|
|
|
|
| ||||
Banks |
|
|
$799,488 |
|
|
|
|
$1 |
|
799,489 |
| ||
Media |
|
1,084,644 |
|
|
|
1 |
|
1,084,645 |
| ||||
All Other |
|
79,506,287 |
|
|
|
|
|
79,506,287 |
| ||||
Corporate Bonds & Notes: |
|
|
|
|
|
|
|
|
| ||||
Commercial Services |
|
|
|
4,320,050 |
|
19,250 |
|
4,339,300 |
| ||||
Diversified Financial Services |
|
|
|
3,702,862 |
|
828,427 |
|
4,531,289 |
| ||||
All Other |
|
|
|
55,782,098 |
|
|
|
55,782,098 |
| ||||
Convertible Preferred Stock |
|
33,731,599 |
|
|
|
|
|
33,731,599 |
| ||||
Preferred Stock |
|
|
|
|
|
1,227,711 |
|
1,227,711 |
| ||||
Repurchase Agreements |
|
|
|
21,171,000 |
|
|
|
21,171,000 |
| ||||
|
|
115,122,018 |
|
233,335,937 |
|
2,075,390 |
|
350,533,345 |
| ||||
Investments in Securities - Liabilities |
|
|
|
|
|
|
|
|
| ||||
Options Written: |
|
|
|
|
|
|
|
|
| ||||
Market Price |
|
(41,239 |
) |
|
|
|
|
(41,239 |
) | ||||
Totals |
|
|
$115,080,779 |
|
|
$233,335,937 |
|
|
$2,075,390 |
|
|
$350,492,106 |
|
A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the nine months ended October 31, 2019, was as follows:
|
|
Beginning |
|
Purchases |
|
Sales |
|
Accrued |
|
Net |
|
Net Change |
|
Transfers |
|
Transfers |
|
Ending |
| |||
Investments in Securities - Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Banks |
|
|
$1 |
|
|
$ |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$1 |
|
Media |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
| |||
Corporate Bonds & Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Commercial Services |
|
19,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,250 |
| |||
Diversified Financial Services |
|
780,069 |
|
87,922 |
|
|
|
21,324 |
|
|
|
(60,888 |
) |
|
|
|
|
828,427 |
| |||
Preferred Stock |
|
1,173,631 |
|
|
|
|
|
|
|
|
|
54,080 |
|
|
|
|
|
1,227,711 |
| |||
Totals |
|
$1,972,952 |
|
$87,922 |
|
$ |
|
$21,324 |
|
$ |
|
$(6,808 |
) |
$ |
|
$ |
|
$2,075,390 |
| |||
The table above may include Level 3 investments that are valued by brokers or independent pricing services.
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at October 31, 2019:
|
|
Ending |
|
Valuation |
|
Unobservable |
|
Input Values (Ranges) |
|
Investments in Securities - Assets |
|
|
|
|
|
|
|
|
|
Corporate Bonds & Notes: |
|
|
|
|
|
|
|
|
|
Diversified Financial Services |
|
$828,427 |
|
Market and Company Comparables |
|
EV Multiples Illiquidity Discount |
|
1.80x (0.38x - 5.47x) 20% |
|
Preferred Stock |
|
$1,227,699 |
|
Market and Company Comparables |
|
EV Multiples Illiquidity Discount |
|
0.82x (0.25x - 1.47x) 25% |
|
The table above does not include Level 3 investments that are valued by brokers and independent pricing services. The inputs for these investments are not readily available or cannot be reasonably estimated and are generally those inputs described in Fair Value Measurements Note.
The net change in unrealized appreciation/depreciation of Level 3 investments held at October 31, 2019 was $(6,808).
Glossary:
ADR - American Depositary Receipt
PIK - Payment-in-Kind
REIT - Real Estate Investment Trust