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 811-21338

 

 

Virtus AllianzGI Convertible & Income Fund II

(Exact name of registrant as specified in charter)

 

 

101 Munson Street

Greenfield, MA 01301

(Address of principal executive offices) (Zip code)

Angela Borreggine

Vice President, Chief Legal Officer, Counsel and Secretary for Registrant

1540 Broadway

New York, NY 10036

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 1-800-254-5197

Date of fiscal year end: February 28

Date of reporting period: August 31, 2021

 

 

 

Item 1.

Reports to Stockholders.

 

(a)

The Report to Shareholders is attached herewith.

 

(b)

Not applicable.

 

SEMIANNUAL REPORT
August 31, 2021
Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund
Virtus AllianzGI Convertible & Income 2024 Target Term Fund
Virtus AllianzGI Convertible & Income Fund
Virtus AllianzGI Convertible & Income Fund II
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports like this one will no longer be sent by mail, unless specifically requested from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect at any time to receive not only shareholder reports but also certain other communications from the Fund electronically, or you may elect to receive paper copies of all future shareholder reports free of charge to you. If you own your shares directly with the Fund, you may make such elections by calling the Fund at 1-800-254-5197 or, with respect to requesting electronic delivery, by visiting www.virtus.com. If you own your shares through a financial intermediary, please contact your financial intermediary to make your request and to determine whether your election will apply to all funds in which you own shares through that intermediary.
Not FDIC Insured • No Bank Guarantee • May Lose Value

Table of Contents
1
Manager’s Discussion of Fund Performance:
2
5
8
11
14
16
Schedules of Investments:
19
25
36
50
64
68
70
74
75
82
104

MESSAGE TO SHAREHOLDERS
To Virtus Closed-End Fund Shareholders:

I am pleased to present this semiannual report, which reviews the performance of your Fund for the six months ended August 31, 2021.
Continued strong monetary and fiscal support led global markets generally higher during the period, despite inflation fears and the resurgence of COVID-19, specifically the Delta variant. Many indices posted positive returns for the six months. U.S. large-capitalization stocks led the way, returning 19.52%, as measured by the S&P 500® Index, versus a more modest gain of 3.81% for small-cap stocks, as measured by the Russell 2000® Index. Within international equities, developed markets, as measured by the MSCI EAFE® Index (net), returned 10.31%, while emerging markets posted a slight loss of 0.98%, as measured by the MSCI Emerging Markets Index (net).
In fixed income markets, the yield on the 10-year Treasury was 1.30% on August 31, 2021, down from 1.44% on February 28, 2021. The broader U.S. fixed income market, as represented by the Bloomberg U.S. Aggregate Bond Index, returned 1.49%. Non-investment grade bonds were up 3.82% for the period, as measured by the Bloomberg U.S. Corporate High Yield Bond Index. (Please note that effective August 24, the names of the indices were changed from the Bloomberg Barclays U.S. Aggregate Bond Index and Bloomberg Barclays U.S. Corporate High Yield Bond Index, respectively.)
If you have any questions about your Fund or require assistance, please visit the closed-end fund section of Virtus.com, or call our customer service team at 866-270-7788.
We appreciate your business and remain committed to your long-term financial success.
Sincerely,
George R. Aylward
President and Chief Executive Officer, Virtus Closed-End Funds
October 2021
Refer to the Manager’s Discussion section for your Fund’s performance. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above.
1

AllianzGI Artificial Intelligence & Technology Opportunities Fund
MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited)
August 31, 2021
About the Fund:
AllianzGI Artificial Intelligence & Technology Opportunities Fund’s (NYSE: AIO) (the “Fund”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. There is no guarantee that the Fund will achieve its investment objective.
The use of leverage currently enables the Fund to borrow at short-term rates and invest at higher yields on its investments. As of August 31, 2021, the Fund’s leverage consisted of $30.0 million of borrowings made pursuant to margin financing and/or securities lending, which represented approximately 3% of the Fund’s total assets.
Manager Comments – Allianz Global Investors U.S. LLC (AllianzGI)
AllianzGI manages the Fund, leveraging the knowledge and skills of an experienced investment team that has a long track record in closed-end fund management. The team takes a dynamic approach to allocating the Fund’s assets. They invest for the long term, employing innovative investment expertise and global resources. The following commentary is provided by the portfolio team at AllianzGI and covers the Fund’s performance for the six months ended August 31, 2021.
How did the markets perform during the Fund’s semiannual period ended August 31, 2021?
Global equities delivered strong gains over the semiannual period ended August 31, 2021, as the rollout of COVID-19 vaccines boosted the outlook for a global economic recovery from the pandemic. U.S. President Joe Biden’s plans for massive fiscal stimulus further bolstered sentiment, although concerns grew about rising inflationary pressures.
All sectors in the MSCI AC World Index (net) posted positive returns, with health care and information technology outperforming, and consumer discretionary and energy lagging. In the spring, investors rotated out of highly favored growth stocks into those with value characteristics, but growth subsequently rallied over the summer to finish ahead of value. Later in the period, positive corporate earnings data outweighed uncertainty over when central banks would start to taper their extraordinary support measures. Financial markets also overcame concerns regarding the spread of the highly contagious Delta variant of COVID-19, ongoing supply chain disruptions, rising geopolitical tensions, and worries over a slowdown in China’s economy.
Against this backdrop, convertible securities were positively impacted by underlying equity strength. Improving fundamentals, declining default rates, and a rising upgrade-to-downgrade ratio were notable developments within the high yield bond market.
What factors affected the Fund’s performance during its fiscal semiannual period?
For the six months ended August 31, 2021, the Fund’s net asset value (NAV) returned 5.52%, and its market price returned 4.85%. For the same period, the Fund’s benchmark, the MSCI AC World Index (net) returned 13.80%.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
2

AllianzGI Artificial Intelligence & Technology Opportunities Fund
MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
In the equity portfolio, relative underperformance during the reporting period was driven by stock selection and industry positioning. Stock selection in the life sciences tools & services and road & rail industries contributed positively to relative performance. Conversely, stock selection in the information technology services and semiconductors & semiconductor equipment industries detracted from relative performance. From an industry allocation perspective, an overweight allocation to the life sciences tools & services industry contributed positively to relative performance, while an overweight allocation to the entertainment industry detracted from performance.
Within convertible securities, technology, health care, and telecommunications were the top-contributing sectors. Conversely, consumer discretionary, media, and industrials exposures detracted from performance.
Within the high yield allocation, the greatest contributors to performance were technology, media content, and healthcare. Support services was the only industry that negatively affected performance.
The preceding information is the opinion of portfolio management only through the end of the period of the report as stated on the cover. Any such opinions are subject to change at any time based upon market conditions and should not be relied upon as investment advice.
The Fund’s portfolio holdings are subject to change and may not be representative of the portfolio managers’ current or future investment decisions. The mention of individual securities held by the Fund is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional.
Risk Considerations
Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Sector Focused Investing: Events negatively affecting a particular market sector in which the portfolio focuses its investments may cause the value of the portfolio to decrease.
Leverage: When a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
3

AllianzGI Artificial Intelligence & Technology Opportunities Fund
MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
Limited Term: The Fund will terminate on or around October 29, 2031 absent Trustee and shareholder approval to amend the limited term provision of the Fund’s Amended and Restated Agreement and Declaration of Trust. As the assets of the Fund will be liquidated in connection with its termination, the Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, which may cause the Fund to lose money.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio’s assets as intended.
Closed-End Funds: Closed-end funds may trade at a discount or premium from their net asset values, which may affect whether an investor will realize gains or losses. They may also employ leverage, which may increase volatility.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
4

AllianzGI Convertible & Income 2024 Target Term Fund MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited)
August 31, 2021
About the Fund:
AllianzGI Convertible & Income 2024 Target Term Fund’s (NYSE: CBH) (the “Fund”) investment objectives are to provide a high level of income and to return at least $9.835 per common share (the original net asset value per common share before deducting offering costs of $0.02 per share) to holders of common shares on or about September 1, 2024. There is no guarantee that the Fund will achieve its investment objective.
The use of leverage currently enables the Fund to borrow at short-term rates and invest at higher yields on its investments. As of August 31, 2021, the Fund’s leverage consisted of $69.7 million of borrowings made pursuant to margin financing and/or securities lending, which represented approximately 26% of the Fund’s total assets.
Manager Comments – Allianz Global Investors U.S. LLC (AllianzGI)
AllianzGI manages the Fund, leveraging the knowledge and skills of an experienced investment team that has a long track record in closed-end fund management. The team takes a dynamic approach to allocating Fund assets across convertible securities, equities, and income-producing securities. They invest for the long term, employing innovative investment expertise and global resources. The following commentary is provided by the portfolio teams at AllianzGI and covers the Fund’s portfolio for the six months ended August 31, 2021.
How did the markets perform during the Fund’s semiannual period ended August 31, 2021?
The three asset classes – U.S. convertible securities, high yield bonds and leveraged loans – utilized in the Fund advanced during the semiannual period ended August 31, 2021. The ICE BofA US Convertibles Index and ICE BofA US High Yield Index returned 1.9% and 3.9%, respectively. The Credit Suisse Leveraged Loan Index gained 2.0%. By way of comparison, the 10-year U.S. Treasury was higher by 2.4% and the S&P 500® Index advanced 19.5%.
Stocks hit new record highs over the period, with the S&P 500® Index recording its seventh straight monthly gain through August. Convertible securities were positively impacted by underlying equity strength. Improving fundamentals, declining default rates, and a rising upgrade-to-downgrade ratio were notable developments within the high yield credit markets.
Strong corporate profits, upwardly revised earnings expectations, accommodative commentary by the U.S. Federal Reserve (the Fed), constructive economic data, and the potential for new U.S. fiscal stimulus offset investor concerns around the spread of the Delta variant of COVID-19 and the outlook for Fed tapering and inflation.
First- and second-quarter financial results for U.S. companies exceeded estimates due to stronger-than-expected earnings and revenues. Concurrently, forward earnings expectations rose over the period.
The Fed kept interest rates and asset purchases unchanged. In his speech at the Jackson Hole Economic Symposium in late August, Fed Chair Jerome Powell said that tapering could start this year, but indicated that tapering is not a precursor to the normalization of policy rates.
The U.S. economy continued to recover, with declines reported in unemployment and jobless claims. Surveys of manufacturing activity remained healthy, while non-manufacturing activity picked up in July. In contrast, consumer sentiment fell and inflation measures increased.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
5

AllianzGI Convertible & Income 2024 Target Term Fund MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
The Senate passed the $1 trillion infrastructure bill, and the House of Representatives passed the $3.5 trillion budget resolution and advanced the infrastructure bill.
What factors affected the Fund’s performance during its fiscal semiannual period?
For the six months ended August 31, 2021, the Fund’s net asset value (NAV) returned 0.83%, and its market price returned 5.64%. For the same period, the Fund’s composite benchmark, which consists of 40% ICE BofA US Convertibles Index (representing convertible securities), 45% ICE BofA High Yield BB-B Constrained Index (representing high yield bonds), and 15% Credit Suisse Leveraged Loan Index (representing leveraged loans) returned 2.70%. The underlying indexes returned 1.86% for convertibles, 3.61% for high yield and 1.99% for leveraged loans.
The Fund benefited from its exposure to U.S. credit. In addition to providing a positive total return gross of fees and expenses, the Fund delivered a high level of income during the six months ended August 31, 2021.
Media, technology, and energy were the top-contributing sectors among convertible security positions. Conversely, health care, consumer discretionary, and industrials exposures detracted from performance.
For high yield holdings, the greatest contributors to performance were financial services, energy, and cable & satellite TV. There were no industries that negatively affected performance.
Within leveraged loans, contributions from retail, technology, and support services were the most impactful. In contrast, energy was the only industry that hindered performance.
The preceding information is the opinion of portfolio management only through the end of the period of the report as stated on the cover. Any such opinions are subject to change at any time based upon market conditions and should not be relied upon as investment advice.
The Fund’s portfolio holdings are subject to change and may not be representative of the portfolio managers’ current or future investment decisions. The mention of individual securities held by the Fund is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional.
Risk Considerations
Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
6

AllianzGI Convertible & Income 2024 Target Term Fund MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans are subject to credit and call risk, may be difficult to value, and have longer settlement times than other investments, which can make loans relatively illiquid at times.
Leverage: When a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
Limited Term: The Fund will terminate on or around September 1, 2024 absent Trustee and shareholder approval to amend the limited term provision of the Fund’s Amended and Restated Agreement and Declaration of Trust. As the assets of the Fund will be liquidated in connection with its termination, the Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, which may cause the Fund to lose money.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio’s assets as intended.
Closed-End Funds: Closed-end funds may trade at a discount or premium from their net asset values, which may affect whether an investor will realize gains or losses. They may also employ leverage, which may increase volatility.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
7

AllianzGI Convertible & Income Fund MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited)
August 31, 2021
About the Fund:
AllianzGI Convertible & Income Fund’s (NYSE: NCV) (the “Fund”) investment objective is to provide total return through a combination of capital appreciation and high current income. There is no guarantee that the Fund will achieve its investment objective.
The use of leverage currently enables the Fund to have a blended capital structure combining long-term fixed rates and short-term variable rates which enable the Fund to seek to enhance the yields on its investments. As of August 31, 2021, the Fund’s leverage consisted of $352.1 million of borrowings made pursuant to a margin financing and/or securities lending and longer-term preferred shares which represented approximately 37% of the Fund’s total assets.
Manager Comments – Allianz Global Investors U.S. LLC (AllianzGI)
AllianzGI manages the Fund, leveraging the knowledge and skills of an experienced investment team that has a long track record in closed-end fund management. The team takes a dynamic approach to allocating Fund assets across convertible securities, equities, and income-producing securities. They invest for the long term, employing innovative investment expertise and global resources. The following commentary is provided by the portfolio teams at AllianzGI and covers the Fund’s portfolio for the six months ended August 31, 2021.
How did the markets perform during the Fund’s semiannual period ended August 31, 2021?
The two asset classes utilized in the Fund – U.S. convertible securities and high yield bonds – advanced during the semiannual period ended August 31, 2021. The ICE BofA US Convertibles Index and ICE BofA US High Yield Index returned 1.9% and 3.9%, respectively. By way of comparison, the 10-year U.S. Treasury was higher by 2.4% and the S&P 500® Index advanced 19.5%.
Stocks hit new record highs over the period, with the S&P 500® Index recording its seventh straight monthly gain through August. Convertible securities were positively impacted by underlying equity strength. Improving fundamentals, declining default rates, and a rising upgrade-to-downgrade ratio were notable developments within the high yield bond market.
Strong corporate profits, upwardly revised earnings expectations, accommodative commentary by the U.S. Federal Reserve (the Fed), constructive economic data, and the potential for new U.S. fiscal stimulus offset investor concerns around the spread of the Delta variant of COVID-19 and the outlook for Fed tapering and inflation.
First- and second-quarter financial results for U.S. companies exceeded estimates due to stronger-than-expected earnings and revenues. Concurrently, forward earnings expectations rose over the period.
The Fed kept interest rates and asset purchases unchanged. In his speech at the Jackson Hole Economic Symposium in late August, Fed Chair Jerome Powell said that tapering could start this year, but indicated that tapering is not a precursor to the normalization of policy rates.
The U.S. economy continued to recover, with declines reported in unemployment and jobless claims. Surveys of manufacturing activity remained healthy, while non-manufacturing activity picked up in July. In contrast, consumer sentiment fell and inflation measures increased.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
8

AllianzGI Convertible & Income Fund MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
The Senate passed the $1 trillion infrastructure bill, and the House of Representatives passed the $3.5 trillion budget resolution and advanced the infrastructure bill.
What factors affected the Fund’s performance during its fiscal semiannual period?
For the six months ended August 31, 2021, the Fund’s net asset value (NAV) returned 3.03%, and its market price returned 13.34%. For the same period, the Fund’s composite benchmark, which consists of 50% ICE BofA US Convertibles Index (representing convertible securities) and 50% ICE BofA US High Yield Index (representing high yield bonds) returned 2.90%.
The Fund benefited from its exposure to U.S. convertible securities and high yield bonds. In addition to providing a positive total return gross of fees and expenses, the Fund delivered a high level of income during the six months ended August 31, 2021.
Within convertible security positions, health care, financials, and utilities were the top-contributing sectors. Conversely, technology, media, and transportation exposures detracted from performance.
Within the high yield allocation, the greatest contributors to performance were energy, financial services, and automotive. There were no industries that negatively affected performance.
The preceding information is the opinion of portfolio management only through the end of the period of the report as stated on the cover. Any such opinions are subject to change at any time based upon market conditions and should not be relied upon as investment advice.
The Fund’s portfolio holdings are subject to change and may not be representative of the portfolio managers’ current or future investment decisions. The mention of individual securities held by the Fund is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional.
Risk Considerations
Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Leverage: When a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
Preferred Stocks: Preferred stocks may decline in price, fail to pay dividends, or be illiquid.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
9

AllianzGI Convertible & Income Fund MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio’s assets as intended.
Closed-End Funds: Closed-end funds may trade at a discount or premium from their net asset values, which may affect whether an investor will realize gains or losses. They may also employ leverage, which may increase volatility.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
10

AllianzGI Convertible & Income Fund II MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited)
August 31, 2021
About the Fund:
AllianzGI Convertible & Income Fund II’s (NYSE: NCZ) (the “Fund”) investment objective is to provide total return through a combination of capital appreciation and high current income. There is no guarantee that the Fund will achieve its investment objective.
The Fund employs leverage which enables the Fund to seek to enhance the yields on its investments. As of August 31, 2021, the Fund’s leverage consisted of $271.5 million of borrowings through preferred shares, which represented approximately 38% of the Fund’s total assets.
Manager Comments – Allianz Global Investors U.S. LLC (AllianzGI)
AllianzGI manages the Fund, leveraging the knowledge and skills of an experienced investment team that has a long track record in closed-end fund management. The team takes a dynamic approach to allocating Fund assets across convertible securities, equities, and income-producing securities. They invest for the long term, employing innovative investment expertise and global resources. The following commentary is provided by the portfolio teams at AllianzGI and covers the Fund’s portfolio for the six months ended August 31, 2021.
How did the markets perform during the Fund’s semiannual period ended August 31, 2021?
The two asset classes utilized in the Fund – U.S. convertible securities and high yield bonds – advanced during the semiannual period ended August 31, 2021. The ICE BofA US Convertibles Index and ICE BofA US High Yield Index returned 1.9% and 3.9%, respectively. By way of comparison, the 10-year U.S. Treasury was higher by 2.4% and the S&P 500® Index advanced 19.5%.
Stocks hit new record highs over the period, with the S&P 500® Index recording its seventh straight monthly gain through August. Convertible securities were positively impacted by underlying equity strength. Improving fundamentals, declining default rates, and a rising upgrade-to-downgrade ratio were notable developments within the high yield bond market.
Strong corporate profits, upwardly revised earnings expectations, accommodative commentary by the U.S. Federal Reserve (the Fed), constructive economic data, and the potential for new U.S. fiscal stimulus offset investor concerns around the spread of the Delta variant of COVID-19 and the outlook for Fed tapering and inflation.
First- and second-quarter financial results for U.S. companies exceeded estimates due to stronger-than-expected earnings and revenues. Concurrently, forward earnings expectations rose over the period.
The Fed kept interest rates and asset purchases unchanged. In his speech at the Jackson Hole Economic Symposium in late August, Fed Chair Jerome Powell said that tapering could start this year, but indicated that tapering is not a precursor to the normalization of policy rates.
The U.S. economy continued to recover, with declines reported in unemployment and jobless claims. Surveys of manufacturing activity remained healthy, while non-manufacturing activity picked up in July. In contrast, consumer sentiment fell and inflation measures increased.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
11

AllianzGI Convertible & Income Fund II MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
The Senate passed the $1 trillion infrastructure bill, and the House of Representatives passed the $3.5 trillion budget resolution and advanced the infrastructure bill.
What factors affected the Fund’s performance during its fiscal semiannual period?
For the fiscal six months ended August 31, 2021, the Fund’s net asset value (NAV) returned 2.83%, and its market price returned 12.05%. For the same period, the Fund’s composite benchmark, which consists of 50% ICE BofA US Convertibles Index (representing convertible securities) and 50% ICE BofA US High Yield Index (representing high yield bonds) returned 2.90%.
The Fund benefited from its exposure to U.S. convertible securities and high yield bonds. In addition to providing a positive total return gross of fees and expenses, the Fund delivered a high level of income during the six months ended August 31, 2021.
Within convertible security positions, health care, financials, and utilities were the top-contributing sectors. Conversely, technology, media, and transportation exposures detracted from performance.
Within the high yield allocation, the greatest contributors to performance were financial services, energy, and automotive. There were no industries that negatively affected performance.
The preceding information is the opinion of portfolio management only through the end of the period of the report as stated on the cover. Any such opinions are subject to change at any time based upon market conditions and should not be relied upon as investment advice.
The Fund’s portfolio holdings are subject to change and may not be representative of the portfolio managers’ current or future investment decisions. The mention of individual securities held by the Fund is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional.
Risk Considerations
Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Leverage: When a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
Preferred Stocks: Preferred stocks may decline in price, fail to pay dividends, or be illiquid.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
12

AllianzGI Convertible & Income Fund II MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued)
August 31, 2021
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio’s assets as intended.
Closed-End Funds: Closed-end funds may trade at a discount or premium from their net asset values, which may affect whether an investor will realize gains or losses. They may also employ leverage, which may increase volatility.
For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 16.
13

PORTFOLIO HOLDINGS SUMMARY WEIGHTINGS (Unaudited)
August 31, 2021
For each Fund, the following tables present asset allocations within certain industries as a percentage of total investments as of August 31, 2021.
AllianzGI Artificial Intelligence & Technology Opportunities Fund
Common Stocks   50%
Semiconductors & Semiconductor Equipment 9%  
Software 6  
Banks 4  
All other Common Stocks 31  
Convertible Bonds and Notes   38
Software 10  
Internet 7  
Semiconductors 3  
All other Convertible Bonds and Notes 18  
Convertible Preferred Stocks   4
Short-Term Investment   4
Corporate Bonds and Notes   3
Securities Lending Collateral   1
Total   100%
AllianzGI Convertible & Income 2024 Target Term Fund
Convertible Bonds and Notes   41%
Software 12%  
Biotechnology 7  
Equity Real Estate Investment Trusts (REITs) 4  
All other Convertible Bonds and Notes 18  
Corporate Bonds and Notes   32
Telecommunications 4  
Media 4  
Oil, Gas & Consumable Fuels 3  
All other Corporate Bonds and Notes 21  
Leveraged Loans   21
Short-Term Investment   5
Securities Lending Collateral   1
Total   100%
 
14

PORTFOLIO HOLDINGS SUMMARY WEIGHTINGS (Unaudited) (Continued)
August 31, 2021
AllianzGI Convertible & Income Fund
Convertible Bonds and Notes   48%
Internet 12%  
Software 7  
Commercial Services 3  
All other Convertible Bonds and Notes 26  
Corporate Bonds and Notes   29
Oil, Gas & Consumable Fuels 3  
Media 3  
Telecommunications 2  
All other Corporate Bonds and Notes 21  
Convertible Preferred Stocks   17
Short-Term Investment   3
Preferred Stocks   1
Securities Lending Collateral   1
Common Stocks   1
Total   100%
AllianzGI Convertible & Income Fund II
Convertible Bonds and Notes   48%
Internet 12%  
Software 7  
Commercial Services 3  
All other Convertible Bonds and Notes 26  
Corporate Bonds and Notes   29
Oil, Gas & Consumable Fuels 3  
Media 3  
Telecommunications 2  
All other Corporate Bonds and Notes 21  
Convertible Preferred Stocks   17
Short-Term Investment   3
Preferred Stocks   1
Common Stocks   1
Leveraged Loans   1
Total   100%
 
15

KEY INVESTMENT TERMS (Unaudited)
August 31, 2021
American Depositary Receipt (“ADR”)
Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a U.S. bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.
Bloomberg U.S. Aggregate Bond Index
The Bloomberg U.S. Aggregate Bond Index measures the U.S. investment-grade fixed-rate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Bloomberg U.S. Corporate High Yield Bond Index
The Bloomberg U.S. Corporate High Yield Bond Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Credit Suisse Leveraged Loan Index
The Credit Suisse Leveraged Loan Index is a market-weighted index that tracks the investable universe of the U.S. dollar denominated leveraged loans. The index is calculated on a total-return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Exchange-Traded Funds (“ETFs”)
An open-end fund that is traded on a stock exchange. Most ETFs have a portfolio of stocks or bonds that track a specific market index.
Federal Reserve (the “Fed”)
The Central Bank of the United States, responsible for controlling the money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches and all national and state banks that are part of the system.
ICE BofA US Convertibles Index
The ICE BofA US Convertibles Index is a widely used, unmanaged index that measures the performance of U.S. dollar denominated convertible securities not currently in bankruptcy with a total market value greater than $50 million at issuance. Its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
ICE BofA U.S. High Yield BB-B Constrained Index
ICE BofA U.S. High Yield BB-B Constrained Index is a modified market capitalization weighted index of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch).
ICE BofA US High Yield Index
The ICE BofA U.S. High Yield Index is market capitalization weighted and is designed to measure the performance of U.S. dollar denominated below investment grade (commonly referred to as “junk”) corporate debt publicly issued in the U.S. domestic market. Its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
16

KEY INVESTMENT TERMS (Unaudited) (Continued)
August 31, 2021
Leveraged Loan
Leveraged loans (also known as bank, senior or floating-rate loans) consists of below investment-grade credit quality loans that are arranged by banks and other financial institutions to help companies finance acquisitions, recapitalizations, or other highly leveraged transactions. Such loans may be especially vulnerable to adverse changes in economic or market conditions, although they are senior in the capital structure which typically provides investors/lenders a degree of potential credit risk protection.
London Interbank Offered Rate (“LIBOR”)
A benchmark rate that some of the world’s leading banks charge each other for short-term loans and that serves as the first step to calculating interest rates on various loans throughout the world.
MSCI All Country World Index (net)
The MSCI All Country World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
MSCI EAFE® Index (net)
The MSCI EAFE® (Europe, Australasia, Far East) Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
MSCI Emerging Markets Index (net)
The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization-weighted index designed to measure equity market performance in the global emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Payment In Kind (“PIK”)
A bond which pays interest in the form of additional bonds, or preferred stock which pays dividends in the form of additional preferred stock.
Real Estate Investment Trust (“REIT”)
A publicly traded company that owns, develops and operates income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties.
Russell 2000® Index
The Russell 2000® Index is a market capitalization-weighted index of the 2,000 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
17

KEY INVESTMENT TERMS (Unaudited) (Continued)
August 31, 2021
S&P 500® Index
The S&P 500® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
18

AllianzGI Artificial Intelligence & Technology Opportunities Fund
SCHEDULE OF INVESTMENTS (Unaudited)
August 31, 2021
($ reported in thousands)
  Par Value   Value
Corporate Bonds and Notes—2.9%
Computers—0.3%    
Dell International LLC 144A
7.125%, 6/15/24(1) 		$     3,000   $     3,064
Internet—1.0%    
Go Daddy Operating Co., LLC 144A
5.250%, 12/1/27(1)(2) 		     3,000       3,163
Match Group Holdings II LLC 144A
5.000%, 12/15/27(1) 		     3,000       3,155
Netflix, Inc. 144A
5.375%, 11/15/29(1)(2) 		     3,000       3,689
         10,007
       
 
Pharmaceuticals—0.4%    
Horizon Therapeutics USA, Inc. 144A
5.500%, 8/1/27(1) 		     4,000       4,240
Software—0.4%    
Clarivate Science Holdings Corp. 144A
4.875%, 7/1/29(1) 		     4,000       4,126
Telecommunications—0.8%    
CommScope, Inc. 144A
8.250%, 3/1/27(1)(2) 		     4,000       4,217
LogMeIn, Inc. 144A
5.500%, 9/1/27(1) 		     4,000       4,150
          8,367
       
 
Total Corporate Bonds and Notes
(Identified Cost $29,783) 		     29,804
    
  Shares  
Convertible Preferred Stocks—4.5%
Communications Equipment—1.1%  
T-Mobile US 2020 Cash Mandatory Exchangeable Trust 144A, 5.250%(1)      9,330    11,111
  Shares   Value
Healthcare Equipment &
Supplies—1.3% 		   
Danaher Corp. Series A, 4.750%      6,200   $    13,460
Life Sciences Tools & Services—0.8%    
Avantor, Inc. Series A, 6.250%(2)     67,500       8,193
Semiconductors & Semiconductor
Equipment—1.3% 		   
Broadcom, Inc. Series A, 8.000%      8,965      14,149
Total Convertible Preferred Stocks
(Identified Cost $32,574) 		     46,913
       
 
Common Stocks—51.6%
Air Freight & Logistics—2.0%    
FedEx Corp.      9,145       2,430
GXO Logistics, Inc.(3)     87,975       7,195
United Parcel Service, Inc. Class B     28,210       5,519
XPO Logistics, Inc.(3)     60,400       5,249
         20,393
       
 
Auto Components—1.0%    
Aptiv plc(3)     68,175      10,376
Banks—3.7%    
Citigroup, Inc.    116,560       8,382
First Republic Bank     55,935      11,128
JPMorgan Chase & Co.     69,285      11,082
SVB Financial Group(3)     13,850       7,749
         38,341
       
 
Capital Markets—2.1%    
Charles Schwab Corp. (The)     83,065       6,051
See Notes to Financial Statements
19

AllianzGI Artificial Intelligence & Technology Opportunities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Shares   Value
       
Capital Markets—continued    
Morgan Stanley    151,625   $   15,834
         21,885
       
 
Communications Equipment—1.0%    
Motorola Solutions, Inc.     42,870      10,470
Electrical Equipment—0.6%    
Rockwell Automation, Inc.(2)     18,085       5,886
Electronic Equipment, Instruments &
Components—1.8% 		   
Flex Ltd.(3)    656,100      12,190
Keysight Technologies, Inc.(2)(3)     36,445       6,538
         18,728
       
 
Energy Equipment & Services—0.7%    
Schlumberger N.V.    267,385       7,497
Entertainment—1.7%    
Roku, Inc. Class A (3)     30,480      10,740
Walt Disney Co. (The)(2)(3)     34,090       6,181
         16,921
       
 
Equity Real Estate Investment—0.5%    
Equinix, Inc.      6,270       5,288
Healthcare Equipment &
Supplies—1.2% 		   
Hologic, Inc.(3)     62,865       4,976
Intuitive Surgical, Inc.(3)      6,665       7,022
         11,998
       
 
Healthcare Providers & Services—3.3%    
Anthem, Inc.     30,730      11,528
Laboratory Corp. of America Holdings(3)     16,030       4,863
UnitedHealth Group, Inc.     42,465      17,677
         34,068
       
 
Hotels, Restaurants & Leisure—2.6%    
Caesars Entertainment, Inc.(3)     59,960       6,094
  Shares   Value
       
Hotels, Restaurants &
Leisure—continued 		   
Hilton Worldwide Holdings, Inc.(2)(3)     84,400   $   10,538
Starbucks Corp.     83,670       9,830
         26,462
       
 
Industrial Conglomerates—0.6%    
Honeywell International, Inc.     26,480       6,141
Insurance—0.3%    
Progressive Corp. (The)     27,250       2,625
Interactive Media & Services—2.5%    
Alphabet, Inc. Class A(3)      5,080      14,701
Facebook, Inc. Class A(3)     25,300       9,598
ZoomInfo Technologies, Inc. Class A(2)(3)     20,762       1,354
         25,653
       
 
Internet & Direct Marketing
Retail—1.0% 		   
Amazon.com, Inc.(3)      3,045      10,569
IT Services—2.9%    
Mastercard, Inc. Class A     36,810      12,745
Twilio, Inc. Class A(3)     11,485       4,099
Visa, Inc. Class A(2)     56,215      12,879
         29,723
       
 
Life Sciences Tools & Services—3.4%    
Charles River Laboratories International, Inc.(3)     16,180       7,181
ICON plc ADR(3)     17,300       4,425
IQVIA Holdings, Inc.(3)     59,200      15,376
Thermo Fisher Scientific, Inc.     15,295       8,488
         35,470
       
 
Machinery—1.9%    
Deere & Co.     52,220      19,741
Metals & Mining—0.8%    
Freeport-McMoRan, Inc.(2)    220,765       8,034
 
See Notes to Financial Statements
20

AllianzGI Artificial Intelligence & Technology Opportunities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Shares   Value
       
Semiconductors & Semiconductor
Equipment—9.2% 		   
Analog Devices, Inc.     50,775   $     8,274
Applied Materials, Inc.     78,365      10,589
Lam Research Corp.     16,630      10,058
Marvell Technology, Inc.    260,035      15,912
Micron Technology, Inc.(3)     18,510       1,364
NXP Semiconductors N.V.     89,260      19,202
Qorvo, Inc.(3)     26,665       5,014
Semtech Corp.(3)     94,090       6,579
Skyworks Solutions, Inc.     50,520       9,268
Synaptics, Inc.(3)     34,930       6,629
Teradyne, Inc.(2)     17,915       2,176
         95,065
       
 
Software—6.8%    
Cadence Design Systems, Inc.(3)     45,490       7,437
Crowdstrike Holdings, Inc. Class A(2)(3)     37,365      10,500
Intuit, Inc.     17,525       9,921
Microsoft Corp.     72,305      21,827
Oracle Corp.     60,770       5,416
salesforce.com, Inc.(3)     31,875       8,455
ServiceNow, Inc.(3)      6,665       4,290
Workday, Inc. Class A(3)      9,115       2,490
         70,336
       
 
Total Common Stocks
(Identified Cost $390,804) 		    531,670
    
  Par Value  
Convertible Bonds and Notes—40.0%
Airlines—0.5%  
Southwest Airlines Co.
1.250%, 5/1/25 		$     4,000     5,830
Auto Manufacturers—1.4%  
Ford Motor Co. 144A
0.000%, 3/15/26(1)(2) 		     9,500     9,857
NIO, Inc. 144A
0.000%, 2/1/26(1) 		     6,000     5,136
       14,993
     
 
  Par Value   Value
       
Biotechnology—1.8%    
Guardant Health, Inc. 144A
0.000%, 11/15/27(1) 		$     7,000   $    8,152
Illumina, Inc.
0.000%, 8/15/23(2) 		     2,715       3,304
NeoGenomics, Inc.
0.250%, 1/15/28 		     7,000       6,990
         18,446
       
 
Commercial Services—3.6%    
Chegg, Inc.
0.000%, 9/1/26 		     6,500       6,939
Repay Holdings Corp. 144A
0.000%, 2/1/26(1) 		     6,000       5,783
Shift4 Payments, Inc.      
144A 0.000%, 12/15/25(1)      4,250       5,419
144A 0.500%, 8/1/27(1)      3,270       3,331
Square, Inc. 144A
0.250%, 11/1/27(1)(2) 		    12,500      15,441
         36,913
       
 
Computers—2.9%    
Lumentum Holdings, Inc.
0.500%, 12/15/26 		     9,000      10,047
Pure Storage, Inc.
0.125%, 4/15/23(2) 		     8,500       9,907
Zscaler, Inc.
0.125%, 7/1/25 		     5,000       9,602
         29,556
       
 
Diversified Financial Services—0.5%    
Upstart Holdings, Inc. 144A
0.250%, 8/15/26(1) 		     4,440       5,001
Electronics—0.6%    
II-VI, Inc.
0.250%, 9/1/22 		     4,500       6,268
Energy-Alternate Sources—0.7%    
Enphase Energy, Inc.      
144A 0.000%, 3/1/26(1)      3,500       3,400
 
See Notes to Financial Statements
21

AllianzGI Artificial Intelligence & Technology Opportunities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Energy-Alternate
Sources—continued 		   
144A 0.000%, 3/1/28(1) $     4,500   $    4,378
          7,778
       
 
Entertainment—0.5%    
DraftKings, Inc. 144A
0.000%, 3/15/28(1) 		     5,145       4,929
Healthcare-Products—1.7%    
Insulet Corp.
0.375%, 9/1/26 		     5,850       8,421
Natera, Inc.
2.250%, 5/1/27 		     1,150       3,611
Novocure Ltd. 144A
0.000%, 11/1/25(1) 		     5,000       5,543
         17,575
       
 
Healthcare-Services—1.2%    
Oak Street Health, Inc. 144A
0.000%, 3/15/26(1) 		     7,000       6,462
Teladoc Health, Inc.
1.250%, 6/1/27(2) 		     5,420       5,740
         12,202
       
 
Internet—7.3%    
Etsy, Inc. 144A
0.125%, 9/1/27(1) 		     6,310       8,353
Match Group Financeco 3, Inc. 144A
2.000%, 1/15/30(1) 		     4,220       7,543
Okta, Inc.
0.375%, 6/15/26 		     9,250      12,087
Palo Alto Networks, Inc.
0.750%, 7/1/23 		     5,600       9,783
Shopify, Inc.
0.125%, 11/1/25 		     6,000       7,925
Snap, Inc. 144A
0.000%, 5/1/27(1)(2) 		    12,425      14,509
Uber Technologies, Inc. 144A
0.000%, 12/15/25(1)(2) 		     5,290       4,934
  Par Value   Value
       
Internet—continued    
Wayfair, Inc.
0.625%, 10/1/25 		$     3,935   $    4,041
Zendesk, Inc.
0.625%, 6/15/25 		     5,000       6,591
         75,766
       
 
Leisure Time—1.1%    
Royal Caribbean Cruises Ltd. 144A
2.875%, 11/15/23(1) 		     9,000      11,210
Media—0.5%    
Liberty Media Corp-Liberty Formula One
1.000%, 1/30/23 		     3,500       4,898
Pharmaceuticals—1.1%    
Dexcom, Inc.
0.250%, 11/15/25 		     9,740      11,201
Real Estate—0.5%    
Redfin Corp. 144A
0.000%, 10/15/25(1) 		     5,000       4,918
Semiconductors—3.6%    
MACOM Technology Solutions Holdings, Inc. 144A
0.250%, 3/15/26(1) 		     9,385       9,540
Microchip Technology, Inc.
0.125%, 11/15/24(2) 		    10,457      11,921
ON Semiconductor Corp. 144A
0.000%, 5/1/27(1)(2) 		    14,000      15,991
         37,452
       
 
Software—9.9%    
Akamai Technologies, Inc.
0.125%, 5/1/25 		     3,580       4,591
Avalara, Inc. 144A
0.250%, 8/1/26(1) 		     3,485       3,644
Bentley Systems, Inc. 144A
0.125%, 1/15/26(1) 		     7,500       8,944
 
See Notes to Financial Statements
22

AllianzGI Artificial Intelligence & Technology Opportunities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Software—continued    
Bill.com Holdings, Inc. 144A
0.000%, 12/1/25(1) 		$     5,750   $    10,428
Cloudflare, Inc. 144A
0.000%, 8/15/26(1) 		     5,000       4,952
Coupa Software, Inc.
0.375%, 6/15/26 		     5,300       5,969
Datadog, Inc.
0.125%, 6/15/25 		     5,000       8,083
DocuSign, Inc. 144A
0.000%, 1/15/24(1)(2) 		     8,800       9,531
Five9, Inc.
0.500%, 6/1/25 		     4,335       5,890
HubSpot, Inc.
0.375%, 6/1/25 		     2,525       6,234
LivePerson, Inc. 144A
0.000%, 12/15/26(1) 		     6,500       7,020
MongoDB, Inc.
0.250%, 1/15/26 		     3,750       7,320
RingCentral, Inc.
0.000%, 3/1/25 		     6,295       6,594
Splunk, Inc.
1.125%, 6/15/27 		     5,500       5,483
Zynga, Inc. 144A
0.000%, 12/15/26(1) 		     7,500       7,494
        102,177
       
 
Telecommunications—0.6%    
Nice Ltd. 144A
0.000%, 9/15/25(1)(2) 		     5,000       5,854
Total Convertible Bonds and Notes
(Identified Cost $364,807) 		    412,967
  Par Value   Value
       
 
Total Long-Term Investments—99.0%
(Identified Cost $817,968) 		  $ 1,021,354
    
  Shares  
Short-Term Investment—4.2%
Money Market Mutual Fund—4.2%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(4) 42,874,753    42,875
Total Short-Term Investment
(Identified Cost $42,875) 		   42,875
     
 
Securities Lending Collateral—1.2%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(4)(5) 12,019,166    12,019
Total Securities Lending Collateral
(Identified Cost $12,019) 		   12,019
     
 
TOTAL INVESTMENTS—104.4%
(Identified Cost $872,862) 		$1,076,248
Other assets and liabilities, net—(4.4)%   (44,980)
NET ASSETS—100.0% $1,031,268
 
See Notes to Financial Statements
23

AllianzGI Artificial Intelligence & Technology Opportunities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
Abbreviations:
ADR American Depositary Receipt
LLC Limited Liability Company
    
Footnote Legend:
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2021, these securities amounted to a value of $258,612 or 25.1% of net assets.
(2) All or a portion of security is on loan pursuant to the Liquidity Facility.
(3) Non-income producing.
(4) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(5) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings†
United States 92%
Netherlands 2
Jersey 1
Singapore 1
Liberia 1
Canada 1
Curaçao 1
Other 1
Total 100%
† % of total investments as of August 31, 2021.
The following table summarizes the market value of the Fund’s investments as of August 31, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
August 31, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Debt Securities:          
Corporate Bonds and Notes $ 29,804   $ —   $ 29,804
Convertible Bonds and Notes 412,967   —   412,967
Equity Securities:          
Common Stocks 531,670   531,670   —
Convertible Preferred Stocks 46,913   35,802   11,111
Securities Lending Collateral 12,019   12,019   —
Money Market Mutual Fund 42,875   42,875   —
Total Investments $1,076,248   $622,366   $453,882
There were no securities valued using significant unobservable inputs (Level 3) at August 31, 2021.
There were no transfers into or out of Level 3 related to securities held at August 31, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 4.
See Notes to Financial Statements
24

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited)
August 31, 2021
($ reported in thousands)
  Par Value   Value
Corporate Bonds and Notes—44.4%
Aerospace & Defense—1.2%    
Triumph Group, Inc.      
144A 8.875%, 6/1/24(1)(2) $     1,796   $  1,978
144A 6.250%, 9/15/24(1)(2)        350       354
        2,332
       
 
Airlines—1.6%    
Delta Air Lines, Inc.
2.900%, 10/28/24(2)(3) 		     3,000     3,057
Auto Manufacturers—2.0%    
Ford Motor Co.
8.500%, 4/21/23(2) 		     3,500     3,870
Building Materials—1.9%    
Koppers, Inc. 144A
6.000%, 2/15/25(1)(2)(3) 		     3,500     3,587
Commercial Services—3.0%    
ADT Security Corp. (The)
4.125%, 6/15/23(2)(3) 		     3,000     3,154
RR Donnelley & Sons Co.
7.000%, 2/15/22(2) 		     2,500     2,537
        5,691
       
 
Computers—0.8%    
Dell International LLC 144A
7.125%, 6/15/24(1)(2) 		     1,500     1,532
Diversified Financial Services—3.5%    
Navient Corp.
7.250%, 9/25/23(2) 		     3,000     3,296
OneMain Finance Corp.
8.250%, 10/1/23(2) 		     3,000     3,371
        6,667
       
 
Entertainment—2.8%    
Cedar Fair LP
5.375%, 6/1/24(2)(3) 		     3,000     3,022
Netflix, Inc.
5.875%, 2/15/25 		     2,000     2,295
        5,317
       
 
  Par Value   Value
       
Equity Real Estate Investment Trusts
(REITs)—1.2% 		   
Service Properties Trust
4.350%, 10/1/24(2) 		$     2,170   $  2,200
Food & Beverage—1.6%    
Albertsons Cos., Inc. 144A
3.500%, 2/15/23(1)(2) 		     3,000     3,087
Healthcare-Services—3.3%    
HCA, Inc.
5.375%, 2/1/25(2) 		     3,000     3,379
Tenet Healthcare Corp.
4.625%, 7/15/24(2)(3) 		     3,000     3,041
        6,420
       
 
Leisure Time—3.5%    
Carnival Corp. 144A
11.500%, 4/1/23(1)(2) 		     3,000     3,369
Royal Caribbean Cruises Ltd. 144A
10.875%, 6/1/23(1)(2)(3) 		     3,000     3,376
        6,745
       
 
Lodging—1.9%    
Wynn Las Vegas LLC 144A
5.500%, 3/1/25(1)(2)(3) 		     3,500     3,710
Media—5.1%    
CCO Holdings LLC 144A
4.000%, 3/1/23(1)(2) 		     3,000     3,018
CSC Holdings LLC
5.250%, 6/1/24(2)(3) 		     3,000     3,236
DISH DBS Corp.
5.875%, 11/15/24(2)(3) 		     3,285     3,532
        9,786
       
 
Oil, Gas & Consumable Fuels—3.9%    
Antero Resources Corp.
5.000%, 3/1/25(2)(3) 		     3,000     3,060
Occidental Petroleum Corp.
6.950%, 7/1/24(2) 		     4,000     4,506
        7,566
       
 
See Notes to Financial Statements
25

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Telecommunications—5.7%    
Cincinnati Bell, Inc. 144A
7.000%, 7/15/24(1)(3) 		$     4,000   $   4,075
Lumen Technologies, Inc.
7.500%, 4/1/24(2)(3) 		     3,000     3,337
Sprint Corp.
7.125%, 6/15/24(2) 		     3,000     3,450
       10,862
       
 
Transportation—1.4%    
XPO Logistics, Inc. 144A
6.125%, 9/1/23(1) 		     2,750     2,750
Total Corporate Bonds and Notes
(Identified Cost $84,737) 		   85,179
       
 
Leveraged Loans—29.4%
Advertising—0.5%    
Advantage Sales & Marketing, Inc. First lien (3 month LIBOR + 5.250%)
6.000%, 10/28/27 (4) 		       995     1,000
Aerospace & Defense—0.8%    
TransDigm, Inc. Tranche F (1 month LIBOR + 2.250%)
2.335%, 12/9/25 (4) 		     1,459     1,435
Airlines—0.3%    
Delta Air Lines, Inc. (3 month LIBOR + 3.750%)
4.750%, 10/20/27 (4) 		       500       530
Auto Components—1.0%    
Adient US LLC Tranche B-1 (1 month LIBOR + 3.500%)
3.585%, 4/10/28 (4) 		     1,000       997
Tenneco, Inc. Tranche B (1 month LIBOR + 3.000%)
3.085%, 10/1/25 (4) 		       995       984
        1,981
       
 
Chemicals—0.5%    
PQ Corp. (3 month LIBOR + 2.750%)
0.000%, 6/9/28 (4)(5) 		     1,000       998
  Par Value   Value
       
Commercial Services—1.7%    
Allied Universal Holdco LLC (3 month LIBOR + 3.75%)
4.250%, 5/12/28 (4) 		$     1,000   $    999
Hertz Corp. (The)      
Tranche B (1 month LIBOR + 3.500%)
4.000%, 6/30/28 (4) 		       421       419
Tranche C (1 month LIBOR + 3.500%)
4.000%, 6/30/28 (4) 		        79        79
Travelport Finance (Luxembourg) S.a.r.l. First Lien (3 month LIBOR + 5.000%)
5.147%, 5/29/26 (4) 		       983       818
WEX, Inc. Tranche B (1 month LIBOR + 2.250%)
2.335%, 3/31/28 (4) 		       997       988
        3,303
       
 
Computers—1.6%    
Dell International LLC Tranche B-2 (1 month LIBOR + 1.750%)
2.000%, 9/19/25 (4) 		       660       660
KBR, Inc. Tranche B (1 month LIBOR + 2.750%)
2.835%, 2/5/27 (4) 		     1,014     1,008
NCR Corp. (3 month LIBOR + 2.500%)
2.630%, 8/28/26 (4) 		     1,470     1,450
        3,118
       
 
Diversified Financial Services—0.4%    
Blucora, Inc. (3 month LIBOR + 4.000%)
5.000%, 5/22/24 (4) 		       742       743
Entertainment—3.4%    
AMC Entertainment Holdings, Inc. Tranche B-1 (1 month LIBOR + 3.000%)
3.089%, 4/22/26 (4) 		       978       870
 
See Notes to Financial Statements
26

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Entertainment—continued    
Lions Gate Capital Holdings LLC Tranche B (1 month LIBOR + 2.250%)
2.335%, 3/24/25 (4) 		$     1,224   $  1,209
Music Technology Holdings LLC PIK
8.000%, 12/16/22 (6)(7)(8)(9)(10) 		       339       339
Penn National Gaming, Inc . First Lien (3 month LIBOR + 2.250%)
0.000%, 10/15/25 (4)(5) 		     1,500     1,494
Scientific Games International, Inc. Tranche B-5 (1 month LIBOR + 2.750%)
2.835%, 8/14/24 (4) 		       965       956
Stars Group Holdings BV (3 month LIBOR + 2.250%)
0.000%, 7/21/26 (4)(5) 		     1,630     1,621
        6,489
       
 
Food & Beverage—0.4%    
US Foods, Inc. (1 month LIBOR + 1.750%)
1.835%, 6/27/23 (4) 		       845       835
Healthcare-Products—0.8%    
Ortho-Clinical Diagnostics, Inc. (1 month LIBOR + 3.000%)
3.091%, 6/30/25 (4) 		     1,556     1,554
Healthcare-Services—0.1%    
Aveanna Healthcare LLC      
0.000%, 6/30/28 (4)(5)         50        50
2021, First Lien (3 month LIBOR + 3.750%)
0.000%, 7/17/28 (4)(5) 		       219       218
          268
       
 
Internet—1.1%    
Go Daddy Operating Co. LLC Tranche B-2 (1 month LIBOR + 1.750%)
1.835%, 2/15/24 (4) 		     1,213     1,202
  Par Value   Value
       
Internet—continued    
Match Group, Inc. Tranche B-1 (3 month LIBOR + 1.750%)
1.874%, 2/13/27 (4) 		$     1,000   $    990
        2,192
       
 
Leisure Time—0.5%    
Callaway Golf Co. (1 month LIBOR + 4.500%)
4.589%, 1/2/26 (4) 		       917       920
Lodging—1.9%    
Caesars Resort Collection LLC Tranche B (1 month LIBOR + 2.750%)
2.835%, 12/23/24 (4) 		     1,462     1,449
Hilton Grand Vacations Borrower LLC (1 month LIBOR + 3.000%)
3.500%, 8/2/28 (4) 		     1,250     1,247
Playa Resorts Holding B.V. (1 month LIBOR + 2.750%)
3.750%, 4/29/24 (4) 		       936       899
        3,595
       
 
Machinery-Diversified—0.8%    
Gardner Denver, Inc. Tranche B-1 (1 month LIBOR + 1.750%)
1.835%, 3/1/27 (4) 		     1,606     1,576
Media—5.9%    
Charter Communications Operating LLC Tranche B2 (3 month LIBOR + 1.750%)
0.000%, 2/1/27 (4)(5) 		     1,000       989
CSC Holdings LLC 2018 (1 month LIBOR + 2.250%)
2.345%, 1/15/26 (4) 		     1,231     1,211
DIRECTV Financing LLC (1 month LIBOR + 5.000%)
5.750%, 8/2/27 (4) 		     1,000       999
 
See Notes to Financial Statements
27

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Media—continued    
Gray Television, Inc. Tranche B-2 (1 month LIBOR + 2.250%)
2.346%, 2/7/24 (4) 		$     1,432   $  1,427
Meredith Corp. Tranche B-2 (1 month LIBOR + 2.500%)
2.585%, 1/31/25 (4) 		     1,247     1,239
Nexstar Broadcasting, Inc. Tranche B-4 (1 month LIBOR + 2.500%)
2.596%, 9/18/26 (4) 		     1,312     1,305
Sinclair Television Group, Inc. Tranche B-3 (1 month LIBOR + 3.000%)
3.090%, 4/1/28 (4) 		     1,249     1,237
Virgin Media Bristol LLC Tranche N (1 month LIBOR + 2.500%)
2.596%, 1/31/28 (4) 		     1,500     1,483
WideOpenWest Finance LLC Tranche B (1 month LIBOR + 3.250%)
4.250%, 8/18/23 (4) 		     1,461     1,458
       11,348
       
 
Metal Fabricate/Hardware—0.3%    
Advanced Drainage Systems, Inc. (1 month LIBOR + 2.250%)
2.375%, 7/31/26 (4) 		       625       625
Oil, Gas & Consumable Fuels—0.0%    
Lealand Finance Co. B.V. (1 month LIBOR + 4.000%)
4.085%, 6/30/25 (4) 		       167        73
Pharmaceuticals—1.4%    
Bausch Health Cos., Inc. (1 month LIBOR + 3.000%)
3.085%, 6/2/25 (4) 		       729       726
  Par Value   Value
       
Pharmaceuticals—continued    
HLF Financing S.a.r.l. LLC Tranche B (1 month LIBOR + 2.50%)
2.585%, 8/18/25 (4) 		$       893   $    885
Horizon Therapeutics USA, Inc Tranche B-2 (1 month LIBOR + 2.000%)
2.500%, 3/15/28 (4) 		       997       993
        2,604
       
 
Retail—1.6%    
Burlington Coat Factory Warehouse Corp. Tranche B-6 (1 month LIBOR + 2.000%)
2.090%, 6/26/28 (4) 		       861       854
CWGS Group LLC Tranche B (1 month LIBOR + 2.50%)
3.250%, 6/23/28 (4) 		       995       985
Petco Health and Wellness Co., Inc. First Lien (3 month LIBOR + 3.250%)
4.000%, 3/3/28 (4) 		     1,177     1,174
        3,013
       
 
Semiconductors—0.3%    
Cohu, Inc. (6 month LIBOR + 3.000%)
3.172%, 10/1/25 (4) 		       502       497
Software—2.3%    
Boxer Parent Co., Inc. 2021 (1 month LIBOR + 3.750%)
3.835%, 10/2/25 (4) 		       880       874
Camelot US Acquisition I Co. (1 month LIBOR + 3.000%)
3.085%, 10/30/26 (4) 		     1,203     1,197
 
See Notes to Financial Statements
28

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Software—continued    
Rackspace Technology Global, Inc. Tranche B (3 month LIBOR + 2.750%)
3.500%, 2/15/28 (4) 		$       896   $     886
Upland Software, Inc. (1 month LIBOR + 3.75%)
3.835%, 8/6/26 (4) 		     1,474     1,468
        4,425
       
 
Telecommunications—1.8%    
CenturyLink, Inc. Tranche B (1 month LIBOR + 2.250%)
2.335%, 3/15/27 (4) 		       985       972
Ciena Corp. 2020 (3 month LIBOR + 1.750%)
0.000%, 9/26/25 (4)(5) 		       998       997
CommScope, Inc. (1 month LIBOR + 3.250%)
3.335%, 4/6/26 (4) 		     1,477     1,459
        3,428
       
 
Total Leveraged Loans
(Identified Cost $56,969) 		   56,550
    
  Shares  
Common Stocks—0.6%
Banks—0.6%  
CCF Holdings LLC(7)(8)(11)  1,369,231     931
CCF Holdings LLC Class M(7)(8)(11)    293,320     200
      1,131
     
 
Construction & Engineering—0.0%  
McDermott International Ltd.(11)     71,796      32
Total Common Stocks
(Identified Cost $3,273) 		  1,163
     
 
  Shares   Value
       
Warrant—0.1%
Banks—0.1%    
CCF Holdings LLC(8)(11)    485,227   $     214
Total Warrant
(Identified Cost $—) 		      214
    
  Par Value  
Convertible Bonds and Notes—56.5%
Auto Manufacturers—4.6%  
NIO, Inc.    
144A 0.000%, 2/1/26(1) $     4,000   3,424
144A 0.500%, 2/1/27(1)      6,500   5,395
      8,819
     
 
Biotechnology—9.4%  
Insmed, Inc.
1.750%, 1/15/25(2)(3) 		     5,500   5,679
Ionis Pharmaceuticals, Inc.
0.125%, 12/15/24(2) 		     8,000   7,429
Ligand Pharmaceuticals, Inc.
0.750%, 5/15/23(2) 		     5,000   4,950
     18,058
     
 
Computers—1.3%  
CyberArk Software Ltd.
0.000%, 11/15/24(2) 		     2,000   2,468
Entertainment—1.8%  
Live Nation Entertainment, Inc.
2.000%, 2/15/25(2)(3) 		     3,000   3,377
Equity Real Estate Investment Trusts
(REITs)—6.1% 		 
Blackstone Mortgage Trust, Inc.
4.375%, 5/5/22(2) 		     2,000   2,035
Redwood Trust, Inc.
5.625%, 7/15/24 		     5,000   5,150
 
See Notes to Financial Statements
29

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Equity Real Estate Investment Trusts
(REITs)—continued 		   
Two Harbors Investment Corp.
6.250%, 1/15/22 		$     4,495   $  4,515
       11,700
       
 
Healthcare-Products—2.1%    
NuVasive, Inc.
1.000%, 6/1/23 		     4,000     4,104
Internet—4.1%    
21Vianet Group, Inc. 144A
0.000%, 2/1/26(1) 		     7,000     5,897
Pinduoduo, Inc.
0.000%, 12/1/25 		     2,000     1,914
        7,811
       
 
Media—5.2%    
DISH Network Corp.
2.375%, 3/15/24(2) 		     7,500     7,275
Liberty Broadband Corp. 144A
2.750%, 9/30/50(1)(2) 		     2,500     2,773
       10,048
       
 
Oil, Gas & Consumable Fuels—2.5%    
Helix Energy Solutions Group, Inc.
4.250%, 5/1/22 		     3,500     3,415
Oil States International, Inc.
1.500%, 2/15/23 		     1,500     1,388
        4,803
       
 
Pharmaceuticals—3.4%    
Flexion Therapeutics, Inc.
3.375%, 5/1/24 		     3,000     2,599
Jazz Investments I Ltd.
1.500%, 8/15/24(2)(3) 		     3,855     3,891
        6,490
       
 
Software—16.0%    
Alteryx, Inc.
0.500%, 8/1/24(2) 		     7,000     6,558
  Par Value   Value
       
Software—continued    
Benefitfocus, Inc.
1.250%, 12/15/23(3) 		$     3,000   $   2,829
DocuSign, Inc. 144A
0.000%, 1/15/24(1)(2)(3) 		     4,000     4,332
i3 Verticals LLC
1.000%, 2/15/25 		     5,000     4,913
New Relic, Inc.
0.500%, 5/1/23(2) 		     4,000     4,108
Nutanix, Inc.
0.000%, 1/15/23(2) 		     2,835     2,986
PROS Holdings, Inc.
1.000%, 5/15/24 		     4,000     3,981
RingCentral, Inc.
0.000%, 3/1/25(2) 		     1,055     1,105
       30,812
       
 
Total Convertible Bonds and Notes
(Identified Cost $106,842) 		  108,490
       
 
Total Long-Term Investments—131.0%
(Identified Cost $251,821) 		  251,596
    
  Shares  
Short-Term Investment—7.3%
Money Market Mutual Fund—7.3%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(12) 14,031,556  14,031
Total Short-Term Investment
(Identified Cost $14,031) 		 14,031
     
 
 
See Notes to Financial Statements
30

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Shares   Value
       
Securities Lending Collateral—0.8%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(12)(13)  1,441,244   $   1,441
Total Securities Lending Collateral
(Identified Cost $1,441) 		    1,441
       
 
TOTAL INVESTMENTS—139.1%
(Identified Cost $267,293) 		  $267,068
Other assets and liabilities, net—(39.1)%   (75,038)
NET ASSETS—100.0%   $192,030
    
Abbreviations:
LIBOR London Interbank Offered Rate
LLC Limited Liability Company
LP Limited Partnership
PIK Payment-in-Kind Security
REIT Real Estate Investment Trust
    
Footnote Legend:
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2021, these securities amounted to a value of $52,657 or 27.4% of net assets.
(2) All or a portion of securities is segregated as collateral for borrowings.
(3) All or a portion of security is on loan pursuant to the Liquidity Facility.
(4) Variable rate security. Rate disclosed is as of August 31, 2021. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(5) This loan will settle after August 31, 2021, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.
(6) A member of the Fund’s portfolio management team is a member of the board of directors of LiveStyle, Inc. The Fund’s aggregate value of investments in LiveStyle, Inc. and its subsidiary Music Technology Holdings LLC represents 0.18% of net assets.
(7) Affiliated company. See Note 3G in Notes to Financial Statements.
(8) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(9) Security is fixed rate.
(10) 100% of the income received was in cash.
(11) Non-income producing.
(12) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
 
See Notes to Financial Statements
31

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
(13) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings†
United States 87%
Cayman Islands 6
Bermuda 2
Luxembourg 1
Liberia 1
Panama 1
Netherlands 1
Other 1
Total 100%
† % of total investments as of August 31, 2021.
See Notes to Financial Statements
32

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
The following table summarizes the market value of the Fund’s investments as of August 31, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
August 31, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs 		  Level 3
Significant
Unobservable
Inputs
Assets:              
Debt Securities:              
Corporate Bonds and Notes $ 85,179   $ —   $ 85,179   $ —
Leveraged Loans 56,550   —   56,211   339
Convertible Bonds and Notes 108,490   —   108,490   —
Equity Securities:              
Common Stocks 1,163   32   —   1,131
Warrant 214   —   —   214
Securities Lending Collateral 1,441   1,441   —   —
Money Market Mutual Fund 14,031   14,031   —   —
Total Investments $267,068   $15,504   $249,880   $1,684
There were no transfers into or out of Level 3 related to securities held at August 31, 2021.
Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of Level 3 investments.
See Notes to Financial Statements
33

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
  Total   Corporate
Bonds
And Notes 		  Leveraged
Loans 		  Common
Stocks 		  Warrants
Investments in Securities                  
Balance as of February 28, 2021: $  2,880   $  2,554   $ 326   $  —{a}   $  —
Accrued discount/(premium) 3   3   —   —   —
Realized gain (loss) —   —   —   —   —
Change in unrealized appreciation (depreciation)(b) 705   1,974   —   (1,483)   214
Purchases 2,627   —   13   2,614 (c)   —
Sales (d) (4,531)   (4,531) (c)   —   —   —
Balance as of August 31, 2021 $  1,684   $  —   $ 339   $  1,131   $ 214
(a) Amount is less than $500.
(b) The change in unrealized appreciation (depreciation) on investments still held at August 31, 2021, was $1,270.
(c) Includes securities issued or removed due to corporate actions.
(d) Includes paydowns on securities.
See Notes to Financial Statements
34

AllianzGI Convertible & Income 2024 Target Term Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
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 August 31, 2021:
Investments in
Securities – Assets 		  Ending
Balance at
August 31, 2021 		  Valuation Technique Used   Unobservable
Inputs 		  Input
Values
Common Stocks:                
CCF Holdings LLC   $931   Market and Company
Comparables 		  EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.21x - 0.82x)
            Illiquidity Discount                             20%
                 
CCF Holdings LLC
Class M 		  $200   Market and Company
Comparables 		  EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount                             20%
                 
Warrant:                
CCF Holdings LLC   $214   Market and Company
Comparables 		  EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount                             20%
                 
See Notes to Financial Statements
35

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited)
August 31, 2021
($ reported in thousands)
  Par Value   Value
Corporate Bonds and Notes—46.8%
Advertising—0.4%    
Clear Channel Outdoor Holdings, Inc.      
144A 7.750%, 4/15/28(1)(2) $       760   $     792
144A 7.500%, 6/1/29(1)      1,445      1,496
         2,288
       
 
Aerospace & Defense—0.9%    
TransDigm, Inc.      
6.375%, 6/15/26(2)      1,400      1,454
5.500%, 11/15/27      2,240      2,291
Triumph Group, Inc.      
144A 8.875%, 6/1/24(1)        701        772
144A 6.250%, 9/15/24(1)        825        834
         5,351
       
 
Airlines—1.4%    
American Airlines, Inc.      
144A 11.750%, 7/15/25(1)      1,955      2,427
144A 5.750%, 4/20/29(1)      1,515      1,636
Delta Air Lines, Inc.
7.375%, 1/15/26(2) 		     3,595      4,232
         8,295
       
 
Auto Components—2.1%    
American Axle & Manufacturing, Inc.
6.500%, 4/1/27(2) 		     2,760      2,898
Clarios Global LP 144A
8.500%, 5/15/27(1)(2) 		     3,010      3,213
Goodyear Tire & Rubber Co. (The)      
5.250%, 4/30/31(2)      1,465      1,566
144A 5.250%, 7/15/31(1)(2)      1,495      1,599
Tenneco, Inc.      
5.000%, 7/15/26(2)      1,080      1,079
144A 7.875%, 1/15/29(1)      1,715      1,930
        12,285
       
 
Auto Manufacturers—1.4%    
Ford Motor Co.      
9.000%, 4/22/25      2,545      3,109
9.625%, 4/22/30      2,205      3,142
  Par Value   Value
       
Auto Manufacturers—continued    
Ford Motor Credit Co. LLC      
5.125%, 6/16/25 $       735   $     807
4.000%, 11/13/30        745        786
         7,844
       
 
Building Materials—0.6%    
Griffon Corp.
5.750%, 3/1/28 		     1,165      1,236
Koppers, Inc. 144A
6.000%, 2/15/25(1) 		     2,095      2,148
         3,384
       
 
Chemicals—0.5%    
Tronox, Inc. 144A
4.625%, 3/15/29(1) 		     1,485      1,506
WR Grace Holdings LLC 144A
5.625%, 8/15/29(1) 		     1,415      1,473
         2,979
       
 
Commercial Services—1.9%    
ADT Security Corp. (The) 144A
4.125%, 8/1/29(1) 		     1,475      1,473
Avis Budget Car Rental LLC 144A
5.375%, 3/1/29(1)(2) 		     2,060      2,163
Deluxe Corp. 144A
8.000%, 6/1/29(1) 		     1,430      1,531
Herc Holdings, Inc. 144A
5.500%, 7/15/27(1) 		     1,425      1,502
NESCO Holdings II, Inc. 144A
5.500%, 4/15/29(1) 		     1,405      1,457
United Rentals North America, Inc.
5.250%, 1/15/30 		     2,395      2,626
        10,752
       
 
Computers—0.8%    
Booz Allen Hamilton, Inc. 144A
4.000%, 7/1/29(1) 		     1,495      1,549
Dell International LLC 144A
7.125%, 6/15/24(1) 		     1,405      1,435
See Notes to Financial Statements
36

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Computers—continued    
NCR Corp. 144A
5.125%, 4/15/29(1) 		$     1,415   $   1,467
         4,451
       
 
Containers & Packaging—0.8%    
Berry Global, Inc. 144A
5.625%, 7/15/27(1)(2) 		     1,330      1,400
Owens-Brockway Glass Container, Inc. 144A
6.625%, 5/13/27(1)(2) 		     3,020      3,257
         4,657
       
 
Cosmetics & Personal Care—0.3%    
Edgewell Personal Care Co. 144A
5.500%, 6/1/28(1)(2) 		     1,430      1,514
Diversified Financial Services—1.7%    
Nationstar Mortgage Holdings, Inc. 144A
5.500%, 8/15/28(1) 		     1,400      1,454
Navient Corp.      
6.750%, 6/15/26(2)      1,965      2,218
5.000%, 3/15/27      1,585      1,664
4.875%, 3/15/28        280        285
OneMain Finance Corp.      
8.250%, 10/1/23      1,565      1,759
6.625%, 1/15/28      1,810      2,089
5.375%, 11/15/29(2)         90         99
         9,568
       
 
Electronic Equipment, Instruments &
Components—0.3% 		   
WESCO Distribution, Inc. 144A
7.250%, 6/15/28(1) 		     1,810      2,013
Entertainment—2.5%    
AMC Entertainment Holdings, Inc.
6.125%, 5/15/27 		     4,990      3,268
  Par Value   Value
       
Entertainment—continued    
Caesars Entertainment, Inc.      
144A 6.250%, 7/1/25(1) $     2,065   $   2,183
144A 8.125%, 7/1/27(1)(2)      1,325      1,465
International Game Technology plc 144A
6.250%, 1/15/27(1)(2) 		     2,890      3,295
Lions Gate Capital Holdings LLC 144A
5.500%, 4/15/29(1)(2) 		     2,010      2,052
Scientific Games International, Inc. 144A
8.250%, 3/15/26(1)(2) 		     2,080      2,212
        14,475
       
 
Environmental Services—0.4%    
GFL Environmental, Inc. 144A
4.750%, 6/15/29(1)(2) 		     2,170      2,230
Equity Real Estate Investment Trusts
(REITs)—0.5% 		   
Park Intermediate Holdings LLC 144A
4.875%, 5/15/29(1) 		     1,450      1,494
Service Properties Trust      
4.350%, 10/1/24        595        603
4.500%, 3/15/25        880        884
         2,981
       
 
Food & Beverage—1.9%    
Kraft Heinz Foods Co.
6.500%, 2/9/40 		     2,255      3,268
Performance Food Group, Inc.      
144A 5.500%, 10/15/27(1)(2)      2,750      2,863
144A 4.250%, 8/1/29(1)      1,495      1,500
Triton Water Holdings, Inc. 144A
6.250%, 4/1/29(1) 		     1,490      1,475
 
See Notes to Financial Statements
37

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Food & Beverage—continued    
US Foods, Inc. 144A
4.750%, 2/15/29(1)(2) 		$     1,990   $   2,037
        11,143
       
 
Healthcare-Services—0.9%    
ModivCare Escrow Issuer, Inc. 144A
5.000%, 10/1/29(1) 		       865        888
Select Medical Corp. 144A
6.250%, 8/15/26(1) 		     1,380      1,459
Tenet Healthcare Corp. 144A
6.125%, 10/1/28(1) 		     2,760      2,914
         5,261
       
 
Home Builders—0.2%    
Picasso Finance Sub, Inc. 144A
6.125%, 6/15/25(1) 		     1,199      1,268
Internet—0.7%    
Netflix, Inc. 144A
5.375%, 11/15/29(1) 		     1,730      2,128
Uber Technologies, Inc.      
144A 8.000%, 11/1/26(1)      1,125      1,198
144A 7.500%, 9/15/27(1)        925      1,008
         4,334
       
 
Investment Companies—0.4%    
Compass Group Diversified Holdings LLC 144A
5.250%, 4/15/29(1) 		     2,140      2,240
Iron & Steel—0.8%    
Cleveland-Cliffs, Inc.
5.875%, 6/1/27(2) 		     2,195      2,294
United States Steel Corp.
6.875%, 3/1/29(2) 		     2,010      2,196
         4,490
       
 
Leisure Time—1.3%    
Carnival Corp.      
144A 10.500%, 2/1/26(1)      1,290      1,488
144A 5.750%, 3/1/27(1)        760        777
NCL Corp., Ltd. 144A
5.875%, 3/15/26(1)(2) 		     3,010      3,018
  Par Value   Value
       
Leisure Time—continued    
Royal Caribbean Cruises Ltd.      
144A 11.500%, 6/1/25(1) $       866   $     997
144A 5.500%, 4/1/28(1)(2)      1,520      1,531
         7,811
       
 
Lodging—0.9%    
Boyd Gaming Corp. 144A
8.625%, 6/1/25(1) 		     1,360      1,476
Hilton Domestic Operating Co., Inc. 144A
4.000%, 5/1/31(1)(2) 		     1,085      1,119
MGM Resorts International
4.750%, 10/15/28 		     1,480      1,554
Wynn Las Vegas LLC 144A
5.500%, 3/1/25(1)(2) 		       955      1,012
         5,161
       
 
Machinery-Construction & Mining—0.4%    
Terex Corp. 144A
5.000%, 5/15/29(1) 		     2,215      2,328
Media—4.0%    
CCO Holdings LLC
4.500%, 5/1/32 		     2,610      2,727
CSC Holdings LLC      
144A 7.500%, 4/1/28(1)      2,230      2,442
144A 5.750%, 1/15/30(1)(2)        685        724
144A 5.000%, 11/15/31(1)        750        746
DIRECTV Holdings LLC 144A
5.875%, 8/15/27(1) 		     2,160      2,257
DISH DBS Corp.
7.375%, 7/1/28(2) 		     3,025      3,255
Gray Television, Inc. 144A
4.750%, 10/15/30(1) 		     2,280      2,254
Meredith Corp.
6.875%, 2/1/26 		     1,717      1,779
Nexstar Media, Inc. 144A
5.625%, 7/15/27(1) 		     2,120      2,251
Sirius XM Radio, Inc. 144A
4.000%, 7/15/28(1) 		     2,240      2,287
Virgin Media Finance plc 144A
5.000%, 7/15/30(1)(2) 		       960        994
 
See Notes to Financial Statements
38

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Media—continued    
Virgin Media Secured Finance plc 144A
5.500%, 5/15/29(1) 		$     1,115   $   1,195
        22,911
       
 
Metal Fabricate/Hardware—0.7%    
Park-Ohio Industries, Inc.
6.625%, 4/15/27(2) 		     3,830      3,799
Mining—0.9%    
Freeport-McMoRan, Inc.
5.250%, 9/1/29 		     2,265      2,506
Hudbay Minerals, Inc. 144A
4.500%, 4/1/26(1)(2) 		     1,495      1,503
Joseph T Ryerson & Son, Inc. 144A
8.500%, 8/1/28(1) 		       904      1,008
         5,017
       
 
Oil, Gas & Consumable Fuels—5.0%    
Antero Resources Corp.      
144A 7.625%, 2/1/29(1)(2)      1,455      1,601
144A 5.375%, 3/1/30(1)(2)        750        763
Callon Petroleum Co. 144A
8.000%, 8/1/28(1)(2) 		     1,485      1,429
CITGO Petroleum Corp. 144A
6.375%, 6/15/26(1) 		       680        690
CNX Resources Corp. 144A
7.250%, 3/14/27(1) 		     2,430      2,576
Comstock Resources, Inc. 144A
6.750%, 3/1/29(1) 		     1,480      1,553
Continental Resources, Inc.      
4.375%, 1/15/28(2)        905      1,016
144A 5.750%, 1/15/31(1)(2)        865      1,054
EQT Corp.
7.500%, 2/1/30 		     1,275      1,657
Hess Midstream Operations LP 144A
4.250%, 2/15/30(1) 		       745        754
Occidental Petroleum Corp.      
5.550%, 3/15/26      2,510      2,799
  Par Value   Value
       
Oil, Gas & Consumable
Fuels—continued 		   
6.625%, 9/1/30(2) $     2,510   $   3,131
PBF Holding Co. LLC
6.000%, 2/15/28 		     2,495      1,634
PDC Energy, Inc.
5.750%, 5/15/26 		     2,150      2,232
SM Energy Co.
6.500%, 7/15/28(2) 		     1,535      1,543
Southwestern Energy Co.
5.375%, 3/15/30 		     1,405      1,462
Transocean, Inc. 144A
8.000%, 2/1/27(1) 		       570        419
USA Compression Partners LP
6.875%, 9/1/27(2) 		     2,285      2,393
        28,706
       
 
Paper & Forest Products—0.3%    
Mercer International, Inc. 144A
5.125%, 2/1/29(1) 		     1,470      1,481
Pharmaceuticals—2.0%    
AdaptHealth LLC 144A
4.625%, 8/1/29(1)(2) 		     1,490      1,494
Bausch Health Americas, Inc. 144A
8.500%, 1/31/27(1) 		     2,585      2,780
Bausch Health Cos., Inc. 144A
7.250%, 5/30/29(1) 		     1,940      1,998
Horizon Therapeutics USA, Inc. 144A
5.500%, 8/1/27(1) 		     2,235      2,369
Jazz Securities DAC 144A
4.375%, 1/15/29(1) 		     1,480      1,534
Organon & Co. 144A
5.125%, 4/30/31(1) 		     1,455      1,526
        11,701
       
 
Pipelines—2.2%    
Antero Midstream Partners LP 144A
5.375%, 6/15/29(1) 		     1,405      1,438
 
See Notes to Financial Statements
39

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Pipelines—continued    
Crestwood Midstream Partners LP 144A
6.000%, 2/1/29(1) 		$     1,400   $   1,428
DCP Midstream Operating LP
5.125%, 5/15/29 		     1,665      1,848
EQM Midstream Partners LP 144A
6.500%, 7/1/27(1) 		     1,415      1,578
NGL Energy Operating LLC 144A
7.500%, 2/1/26(1) 		     1,425      1,446
NuStar Logistics LP
6.375%, 10/1/30(2) 		     1,445      1,598
Targa Resources Partners LP      
6.500%, 7/15/27        980      1,061
6.875%, 1/15/29(2)      2,300      2,586
        12,983
       
 
Real Estate—0.4%    
Kennedy-Wilson, Inc.
5.000%, 3/1/31 		     1,990      2,070
Retail—0.9%    
Bath & Body Works, Inc. 144A
6.625%, 10/1/30(1) 		     1,945      2,242
Carvana Co. 144A
4.875%, 9/1/29(1) 		     1,460      1,445
New Red Finance, Inc. 144A
4.000%, 10/15/30(1) 		     1,475      1,467
         5,154
       
 
Semiconductors—0.7%    
Amkor Technology, Inc. 144A
6.625%, 9/15/27(1) 		     3,750      4,039
Software—1.5%    
Clarivate Science Holdings Corp. 144A
4.875%, 7/1/29(1)(2) 		     2,195      2,264
Rackspace Technology Global, Inc. 144A
5.375%, 12/1/28(1)(2) 		     4,265      4,221
  Par Value   Value
       
Software—continued    
SS&C Technologies, Inc. 144A
5.500%, 9/30/27(1)(2) 		$     2,310   $    2,446
         8,931
       
 
Telecommunications—3.8%    
Avaya, Inc. 144A
6.125%, 9/15/28(1) 		     2,040      2,152
Cincinnati Bell, Inc. 144A
7.000%, 7/15/24(1) 		     1,585      1,615
CommScope Technologies LLC 144A
5.000%, 3/15/27(1)(2) 		     1,435      1,413
Frontier Communications Holdings LLC 144A
5.000%, 5/1/28(1)(2) 		     1,065      1,113
Hughes Satellite Systems Corp.
6.625%, 8/1/26(2) 		     1,460      1,659
LogMeIn, Inc. 144A
5.500%, 9/1/27(1) 		     1,590      1,650
Lumen Technologies, Inc.      
144A 4.500%, 1/15/29(1)      1,480      1,447
144A 5.375%, 6/15/29(1)(2)      1,485      1,525
Plantronics, Inc. 144A
4.750%, 3/1/29(1)(2) 		     1,560      1,493
Sprint Communications, Inc.
11.500%, 11/15/21(2) 		     3,370      3,439
Sprint Corp.
7.625%, 3/1/26 		     2,415      2,977
T-Mobile USA, Inc.
3.500%, 4/15/31 		     1,465      1,560
        22,043
       
 
Transportation—0.4%    
Fortress Transportation & Infrastructure Investors LLC      
144A 9.750%, 8/1/27(1)      1,500      1,693
144A 5.500%, 5/1/28(1)(2)        750        762
         2,455
       
 
Total Corporate Bonds and Notes
(Identified Cost $260,790) 		   270,393
 
See Notes to Financial Statements
40

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
 
Leveraged Loans—0.8%
Entertainment—0.3%    
Music Technology Holdings LLC PIK
8.000%, 12/16/22 (3)(4)(5)(6)(7) 		$     1,848   $    1,848
Healthcare-Services—0.3%    
Aveanna Healthcare LLC      
0.000%, 6/30/28 (8)(9)        260        259
2021, First Lien (3 month LIBOR + 3.750%)
0.000%, 7/17/28 (8)(9) 		     1,120      1,118
         1,377
       
 
Retail—0.2%    
Petco Health and Wellness Co., Inc. First Lien (3 month LIBOR + 3.250%)
4.000%, 3/3/28 (9) 		     1,177      1,174
Total Leveraged Loans
(Identified Cost $4,399) 		     4,399
    
  Shares  
Convertible Preferred Stocks—28.3%
Auto Components—1.7%  
Aptiv plc Series A, 5.500%     56,155    9,659
Banks—7.4%  
Bank of America Corp. Series L, 7.250%     12,080   17,734
Wells Fargo & Co. Series L, 7.500%     16,980   25,316
      43,050
     
 
Chemicals—0.6%  
International Flavors & Fragrances, Inc., 6.000%     66,540    3,363
  Shares   Value
       
Commercial Services & Supplies—0.8%    
GFL Environmental, Inc., 6.000%     54,980   $   4,444
Communications Equipment—1.1%    
T-Mobile US 2020 Cash Mandatory Exchangeable Trust 144A, 5.250%(1)      5,345      6,365
Diversified Financial Services—0.7%    
Chewy, Inc.2020 Mandatory Exchangeable Trust 144A, 6.500%(1)      2,105      4,114
Electric Utilities—4.4%    
AES Corp. (The), 6.875%(2)     74,515      7,398
NextEra Energy, Inc., 5.279%     78,590      4,188
NextEra Energy, Inc., 6.219%    254,310     13,700
        25,286
       
 
Healthcare Equipment & Supplies—4.8%    
Boston Scientific Corp. Series A, 5.500%     71,510      8,592
Danaher Corp. Series A, 4.750%      8,695     18,877
        27,469
       
 
Life Sciences Tools & Services—1.8%    
Avantor, Inc. Series A, 6.250%(2)     84,600     10,269
Media—0.6%    
ViacomCBS, Inc. Series A, 5.750%(2)     47,965      3,233
Pharmaceuticals—0.4%    
Elanco Animal Health, Inc., 5.000%(2)     50,815      2,635
 
See Notes to Financial Statements
41

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Shares   Value
       
Professional Services—0.5%    
Clarivate plc Series A, 5.250%     33,115   $    3,165
Semiconductors & Semiconductor
Equipment—3.5% 		   
Broadcom, Inc. Series A, 8.000%     12,835     20,257
Total Convertible Preferred Stocks
(Identified Cost $113,611) 		   163,309
       
 
Preferred Stocks—1.4%
Entertainment—1.4%    
LiveStyle, Inc. Series A(3)(4)(5)(10)(11)      3,554        571
LiveStyle, Inc. Series B(3)(4)(5)(10)(11)     76,572      7,657
LiveStyle, Inc. Series B(3)(5)(10)      6,750         —
         8,228
       
 
Total Preferred Stocks
(Identified Cost $14,597) 		     8,228
       
 
Common Stocks—1.1%
Banks—1.0%    
CCF Holdings LLC(4)(5)(10)  7,808,320      5,310
CCF Holdings LLC Class M(4)(5)(10)    879,959        598
         5,908
       
 
Consumer Finance—0.1%    
Erickson, Inc.(5)(10)      8,295        233
Entertainment—0.0%    
LiveStyle, Inc.(3)(4)(5)(10)(11)     90,407         — (12)
Professional Services—0.0%    
Clarivate plc(10)      1,531         39
Total Common Stocks
(Identified Cost $30,208) 		     6,180
  Shares   Value
       
 
Warrants—0.1%
Banks—0.1%    
CCF Holdings LLC(5)(10)  1,455,681   $      640
Entertainment—0.0%    
LiveStyle, Inc. Series C(3)(5)(10)     19,500         — (12)
Media—0.0%    
Affinion Group Holdings(5)(10)(11)     15,602         —
Total Warrants
(Identified Cost $3,080) 		       640
    
  Par Value  
Convertible Bonds and Notes—77.5%
Airlines—2.0%  
JetBlue Airways Corp. 144A
0.500%, 4/1/26(1)(2) 		$     5,440    5,348
Southwest Airlines Co.
1.250%, 5/1/25 		     4,140    6,034
      11,382
     
 
Auto Manufacturers—3.6%  
Ford Motor Co. 144A
0.000%, 3/15/26(1)(2) 		     6,870    7,128
NIO, Inc.    
144A 0.000%, 2/1/26(1)      2,010    1,720
144A 0.500%, 2/1/27(1)      3,355    2,785
Tesla, Inc.
2.000%, 5/15/24(2) 		       765    9,056
      20,689
     
 
Banks—2.3%  
BofA Finance LLC
0.125%, 9/1/22 		     5,970    7,895
JPMorgan Chase Bank NA 144A
0.125%, 1/1/23(1)(2) 		     5,220    5,370
      13,265
     
 
 
See Notes to Financial Statements
42

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Biotechnology—1.8%    
Bridgebio Pharma, Inc. 144A
2.250%, 2/1/29(1) 		$     3,125   $   2,767
Exact Sciences Corp.
0.375%, 3/1/28 		     5,125      5,791
Halozyme Therapeutics, Inc. 144A
0.250%, 3/1/27(1) 		     2,435      2,216
        10,774
       
 
Building Materials—1.7%    
Patrick Industries, Inc.
1.000%, 2/1/23 		     8,820      9,838
Commercial Services—4.3%    
Alarm.com Holdings, Inc. 144A
0.000%, 1/15/26(1) 		     3,150      2,893
Chegg, Inc.
0.000%, 9/1/26 		     4,915      5,247
Shift4 Payments, Inc.      
144A 0.000%, 12/15/25(1)      2,235      2,849
144A 0.500%, 8/1/27(1)      3,495      3,561
Square, Inc. 144A
0.000%, 5/1/26(1)(2) 		     8,545     10,233
        24,783
       
 
Computers—2.0%    
Lumentum Holdings, Inc.
0.500%, 12/15/26 		     2,175      2,428
Vocera Communications, Inc. 144A
0.500%, 9/15/26(1) 		     3,415      3,534
Zscaler, Inc.
0.125%, 7/1/25 		     2,930      5,627
        11,589
       
 
Diversified Financial Services—1.4%    
Coinbase Global, Inc. 144A
0.500%, 6/1/26(1) 		     4,870      5,145
LendingTree, Inc.
0.500%, 7/15/25 		     3,290      2,890
         8,035
       
 
  Par Value   Value
       
Electronics—1.3%    
II-VI, Inc.
0.250%, 9/1/22 		$     3,630   $   5,057
Itron, Inc. 144A
0.000%, 3/15/26(1) 		     2,400      2,290
         7,347
       
 
Energy-Alternate Sources—1.9%    
Enphase Energy, Inc.      
144A 0.000%, 3/1/26(1)      2,665      2,589
144A 0.000%, 3/1/28(1)      3,785      3,682
Sunrun, Inc. 144A
0.000%, 2/1/26(1) 		     5,830      4,979
        11,250
       
 
Entertainment—2.2%    
DraftKings, Inc. 144A
0.000%, 3/15/28(1) 		     5,875      5,628
Vail Resorts, Inc. 144A
0.000%, 1/1/26(1)(2) 		     6,875      7,003
        12,631
       
 
Equity Real Estate Investment Trusts
(REITs)—1.4% 		   
Pebblebrook Hotel Trust
1.750%, 12/15/26 		     3,620      4,001
Two Harbors Investment Corp.
6.250%, 1/15/22 		     3,975      3,993
         7,994
       
 
Healthcare-Products—1.5%    
Insulet Corp.
0.375%, 9/1/26 		     3,970      5,715
Natera, Inc.
2.250%, 5/1/27 		     1,055      3,312
         9,027
       
 
Healthcare-Services—1.8%    
Oak Street Health, Inc. 144A
0.000%, 3/15/26(1) 		     4,955      4,574
 
See Notes to Financial Statements
43

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Healthcare-Services—continued    
Teladoc Health, Inc.
1.250%, 6/1/27(2) 		$     5,415   $   5,735
        10,309
       
 
Internet—18.9%    
21Vianet Group, Inc. 144A
0.000%, 2/1/26(1) 		     3,075      2,591
Airbnb, Inc. 144A
0.000%, 3/15/26(1) 		     8,685      8,347
Booking Holdings, Inc.
0.750%, 5/1/25(2) 		     3,120      4,539
Etsy, Inc.      
144A 0.125%, 9/1/27(1)      2,595      3,435
144A 0.250%, 6/15/28(1)      2,355      2,687
Expedia Group, Inc. 144A
0.000%, 2/15/26(1)(2) 		     5,005      5,229
FireEye, Inc.
0.875%, 6/1/24 		     1,225      1,307
fuboTV, Inc. 144A
3.250%, 2/15/26(1) 		     7,405      7,116
Magnite, Inc. 144A
0.250%, 3/15/26(1) 		     4,905      4,163
Match Group Financeco 2, Inc. 144A
0.875%, 6/15/26(1) 		     4,175      6,980
Match Group Financeco 3, Inc. 144A
2.000%, 1/15/30(1) 		       280        500
Okta, Inc.
0.375%, 6/15/26 		     3,300      4,312
Palo Alto Networks, Inc.      
0.750%, 7/1/23        575      1,005
0.375%, 6/1/25      4,450      7,139
Pinduoduo, Inc.
0.000%, 12/1/25 		     3,115      2,980
RealReal, Inc. (The) 144A
1.000%, 3/1/28(1) 		     6,395      5,161
Snap, Inc. 144A
0.000%, 5/1/27(1) 		     8,750     10,218
Spotify USA, Inc. 144A
0.000%, 3/15/26(1) 		     4,645      4,195
Twitter, Inc. 144A
0.000%, 3/15/26(1) 		     7,985      7,546
Uber Technologies, Inc. 144A
0.000%, 12/15/25(1)(2) 		     6,395      5,965
  Par Value   Value
       
Internet—continued    
Wayfair, Inc.
0.625%, 10/1/25 		$     5,045   $   5,180
Zendesk, Inc.
0.625%, 6/15/25 		     3,995      5,266
Zillow Group, Inc.
2.750%, 5/15/25 		     1,885      3,096
       108,957
       
 
Leisure Time—2.1%    
NCL Corp. Ltd.      
6.000%, 5/15/24        920      1,908
5.375%, 8/1/25      1,710      2,812
Royal Caribbean Cruises Ltd.      
4.250%, 6/15/23      1,710      2,302
144A 2.875%, 11/15/23(1)      4,080      5,082
        12,104
       
 
Machinery-Diversified—1.2%    
Chart Industries, Inc. 144A
1.000%, 11/15/24(1) 		     1,700      5,444
Middleby Corp. (The) 144A
1.000%, 9/1/25(1) 		     1,205      1,818
         7,262
       
 
Media—2.3%    
DISH Network Corp.      
3.375%, 8/15/26      3,510      3,661
144A 0.000%, 12/15/25(1)      3,890      4,648
Liberty Media Corp.
1.375%, 10/15/23 		     3,765      5,244
        13,553
       
 
Oil, Gas & Consumable Fuels—2.5%    
EQT Corp.
1.750%, 5/1/26 		     4,560      6,693
Pioneer Natural Resources Co.
0.250%, 5/15/25(2) 		     5,080      7,578
        14,271
       
 
Pharmaceuticals—1.6%    
Dexcom, Inc.
0.250%, 11/15/25 		     3,830      4,405
 
See Notes to Financial Statements
44

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Pharmaceuticals—continued    
Jazz Investments I Ltd.
2.000%, 6/15/26 		$     4,060   $   4,664
         9,069
       
 
Pipelines—3.6%    
Cheniere Energy, Inc.
4.250%, 3/15/45 		    24,750     20,693
Retail—1.8%    
Burlington Stores, Inc.
2.250%, 4/15/25 		     3,820      5,741
Dick’s Sporting Goods, Inc.
3.250%, 4/15/25 		     1,110      4,548
        10,289
       
 
Semiconductors—1.5%    
Cree, Inc.
1.750%, 5/1/26 		       755      1,448
MACOM Technology Solutions Holdings, Inc. 144A
0.250%, 3/15/26(1) 		     1,395      1,418
ON Semiconductor Corp. 144A
0.000%, 5/1/27(1)(2) 		     3,020      3,450
Teradyne, Inc.
1.250%, 12/15/23 		       575      2,188
         8,504
       
 
Software—11.5%    
Akamai Technologies, Inc.
0.125%, 5/1/25 		     2,850      3,655
Avalara, Inc. 144A
0.250%, 8/1/26(1) 		     2,920      3,054
Bentley Systems, Inc.      
144A 0.125%, 1/15/26(1)      3,870      4,615
144A 0.375%, 7/1/27(1)      1,060      1,095
Bill.com Holdings, Inc. 144A
0.000%, 12/1/25(1) 		     3,865      7,009
  Par Value   Value
       
Software—continued    
Cloudflare, Inc. 144A
0.000%, 8/15/26(1) 		$     6,445   $    6,383
Coupa Software, Inc.
0.375%, 6/15/26 		     3,410      3,841
Datadog, Inc.
0.125%, 6/15/25 		     2,680      4,333
DocuSign, Inc. 144A
0.000%, 1/15/24(1)(2) 		     3,910      4,235
Fastly, Inc. 144A
0.000%, 3/15/26(1) 		     3,710      3,144
Five9, Inc.
0.500%, 6/1/25 		     1,180      1,603
i3 Verticals LLC
1.000%, 2/15/25 		     2,435      2,393
MicroStrategy, Inc. 144A
0.000%, 2/15/27(1) 		     3,665      2,905
RingCentral, Inc.
0.000%, 3/1/25(2) 		     4,345      4,551
Splunk, Inc.
1.125%, 6/15/27 		     6,015      5,996
Workday, Inc.
0.250%, 10/1/22 		     3,275      6,124
Zynga, Inc. 144A
0.000%, 12/15/26(1) 		     1,585      1,584
        66,520
       
 
Telecommunications—1.3%    
Infinera Corp.
2.125%, 9/1/24 		     1,575      1,756
Nice Ltd. 144A
0.000%, 9/15/25(1) 		     1,710      2,002
Viavi Solutions, Inc.
1.000%, 3/1/24 		     2,850      3,776
         7,534
       
 
Total Convertible Bonds and Notes
(Identified Cost $402,059) 		   447,669
 
See Notes to Financial Statements
45

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
 
Total Long-Term Investments—156.0%
(Identified Cost $828,744) 		  $  900,818
    
  Shares  
Short-Term Investment—5.0%
Money Market Mutual Fund—5.0%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(13) 28,715,859   28,716
Total Short-Term Investment
(Identified Cost $28,716) 		  28,716
     
 
Securities Lending Collateral—1.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(13)(14)  7,971,891    7,972
Total Securities Lending Collateral
(Identified Cost $7,972) 		   7,972
     
 
TOTAL INVESTMENTS—162.4%
(Identified Cost $865,432) 		 $ 937,506
Other assets and liabilities, net—(6.4)%  (36,968)
Preferred Shares—(56.0)% (323,275)
NET ASSETS—100.0%  $ 577,263
Abbreviations:
LIBOR London Interbank Offered Rate
LLC Limited Liability Company
LP Limited Partnership
NA National Association
PIK Payment-in-Kind Security
REIT Real Estate Investment Trust
    
Footnote Legend:
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2021, these securities amounted to a value of $401,047 or 69.5% of net assets.
(2) All or a portion of security is on loan pursuant to the Liquidity Facility.
(3) A member of the Fund’s portfolio management team is a member of the board of directors of LiveStyle, Inc. The Fund’s aggregate value of investments in LiveStyle, Inc. and its subsidiary Music Technology Holdings LLC represents 1.08% of net assets.
(4) Affiliated company. See Note 3G in Notes to Financial Statements.
(5) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(6) Security is fixed rate.
(7) 100% of the income received was in cash.
 
For information regarding the abbreviations, see the Key Investment Terms starting on page 4.
See Notes to Financial Statements
46

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
(8) This loan will settle after August 31, 2021, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.
(9) Variable rate security. Rate disclosed is as of August 31, 2021. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(10) Non-income producing.
(11) Security is restricted from resale.
(12) Amount is less than $500.
(13) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(14) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings†
United States 93%
Jersey 2
Bermuda 1
Canada 1
Cayman Islands 1
Liberia 1
United Kingdom 1
Total 100%
† % of total investments as of August 31, 2021.
 
The following table summarizes the market value of the Fund’s investments as of August 31, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
August 31, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs 		  Level 3
Significant
Unobservable
Inputs
Assets:              
Debt Securities:              
Corporate Bonds and Notes $270,393   $ —   $270,393   $ —
Leveraged Loans 4,399   —   2,551   1,848
Convertible Bonds and Notes 447,669   —   447,669   —
Equity Securities:              
Convertible Preferred Stocks 163,309   152,830   10,479   —
Common Stocks 6,180   39   —   6,141
Preferred Stocks 8,228   —   —   8,228 (1)
Warrants 640   —   —   640 (1)
Securities Lending Collateral 7,972   7,972   —   —
Money Market Mutual Fund 28,716   28,716   —   —
Total Investments $937,506   $189,557   $731,092   $16,857
    
(1) Includes internally fair valued securities currently priced at zero ($0).
There were no transfers into or out of Level 3 related to securities held at August 31, 2021.
Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of Level 3 investments.
See Notes to Financial Statements
47

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
  Total   Corporate
Bonds
And Notes 		  Leveraged
Loans 		  Common
Stocks 		  Warrants   Preferred
Stocks
Investments in Securities                      
Balance as of February 28, 2021: $  21,123   $  10,793   $ 1,776   $  213   $ 147   $ 8,194
Accrued discount/(premium) 11   11   —   —   —   —
Realized gain (loss) (4,881)   (4,881)   —   — (a)   —   —
Change in unrealized appreciation (depreciation)(b) 5,818   22,429   —   (17,138)   493   34
Purchases 23,138   —   72   23,066 (c)   —   —
Sales (d) (28,352)   (28,352) (c)   —   —   —   —
Balance as of August 31, 2021 $  16,857   $  —   $ 1,848   $  6,141   $ 640 (e)   $ 8,228 (e)
(a) Amount is less than $500.
(b) The change in unrealized appreciation (depreciation) on investments still held at August 31, 2021, was $(16,611).
(c) Includes securities issued or removed due to corporate actions.
(d) Includes paydowns on securities.
(e) Includes internally fair valued security currently priced at zero ($0).
See Notes to Financial Statements
48

AllianzGI Convertible & Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
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 August 31, 2021:
Investments in
Securities – Assets 		  Ending
Balance at
August 31, 2021 		  Valuation Technique Used   Unobservable
Inputs 		  Input
Values
Preferred Stocks:                
LiveStyle, Inc.
Series A 		  $ 571   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   (25% - 30%)
                 
LiveStyle, Inc.
Series B 		  $7,657   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   (25% - 30%)
                 
Common Stocks:                
CCF Holdings LLC   $5,310   Market and Company Comparables   EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount   20%
                 
CCF Holdings LLC
Class M 		  $ 598   Market and Company Comparables   EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount   20%
                 
Erickson, Inc.   $ 233   Market and Company Comparables   EV Multiples   1.32x (0.74x - 2.32x)
11.73x (8.16x - 47.06x)
1.01x (0.59x - 1.39x)
            M&A Transaction
Multiples 		  0.96x (0.41x - 1.96x)
            Illiquidity Discount   20%
                 
LiveStyle, Inc.   $ —(1)   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   20%
                 
Warrants:                
CCF Holdings LLC   $ 640   Market and Company Comparables   EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount   20%
        Black-Scholes Model   Volatility   54%
                 
LiveStyle, Inc.
Series C 		  $ —(1)   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   (25% - 30%)
                 
(1) Amount is less than $500.
See Notes to Financial Statements
49

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited)
August 31, 2021
($ reported in thousands)
  Par Value   Value
Corporate Bonds and Notes—47.8%
Advertising—0.4%    
Clear Channel Outdoor Holdings, Inc.      
144A 7.750%, 4/15/28(1) $       585   $     610
144A 7.500%, 6/1/29(1)      1,125      1,164
         1,774
       
 
Aerospace & Defense—0.9%    
TransDigm, Inc.      
6.375%, 6/15/26      1,085      1,127
5.500%, 11/15/27      1,735      1,775
Triumph Group, Inc.      
144A 8.875%, 6/1/24(1)        537        591
144A 6.250%, 9/15/24(1)        640        647
         4,140
       
 
Airlines—1.5%    
American Airlines, Inc.      
144A 11.750%, 7/15/25(1)      1,475      1,831
144A 5.750%, 4/20/29(1)      1,170      1,264
Delta Air Lines, Inc.
7.375%, 1/15/26 		     2,805      3,302
         6,397
       
 
Auto Components—2.2%    
American Axle & Manufacturing, Inc.
6.500%, 4/1/27 		     2,120      2,226
Clarios Global LP 144A
8.500%, 5/15/27(1) 		     2,325      2,482
Goodyear Tire & Rubber Co. (The)      
5.250%, 4/30/31      1,135      1,213
144A 5.250%, 7/15/31(1)      1,160      1,241
Tenneco, Inc.      
5.000%, 7/15/26        835        834
144A 7.875%, 1/15/29(1)      1,325      1,491
         9,487
       
 
Auto Manufacturers—1.4%    
Ford Motor Co.      
9.000%, 4/22/25      1,970      2,407
9.625%, 4/22/30      1,705      2,430
  Par Value   Value
       
Auto Manufacturers—continued    
Ford Motor Credit Co. LLC      
5.125%, 6/16/25 $       570   $     625
4.000%, 11/13/30        575        607
         6,069
       
 
Building Materials—0.6%    
Griffon Corp.
5.750%, 3/1/28 		       895        950
Koppers, Inc. 144A
6.000%, 2/15/25(1) 		     1,650      1,691
         2,641
       
 
Chemicals—0.5%    
Tronox, Inc. 144A
4.625%, 3/15/29(1) 		     1,150      1,166
WR Grace Holdings LLC 144A
5.625%, 8/15/29(1) 		     1,095      1,140
         2,306
       
 
Commercial Services—1.9%    
ADT Security Corp. (The) 144A
4.125%, 8/1/29(1) 		     1,140      1,138
Avis Budget Car Rental LLC 144A
5.375%, 3/1/29(1) 		     1,595      1,675
Deluxe Corp. 144A
8.000%, 6/1/29(1) 		     1,105      1,183
Herc Holdings, Inc. 144A
5.500%, 7/15/27(1) 		     1,100      1,160
NESCO Holdings II, Inc. 144A
5.500%, 4/15/29(1) 		     1,090      1,131
United Rentals North America, Inc.
5.250%, 1/15/30 		     1,830      2,006
         8,293
       
 
Computers—0.8%    
Booz Allen Hamilton, Inc. 144A
4.000%, 7/1/29(1) 		     1,155      1,197
See Notes to Financial Statements
50

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Computers—continued    
Dell International LLC 144A
7.125%, 6/15/24(1) 		$     1,090   $   1,113
NCR Corp. 144A
5.125%, 4/15/29(1) 		     1,095      1,135
         3,445
       
 
Containers & Packaging—0.8%    
Berry Global, Inc. 144A
5.625%, 7/15/27(1) 		     1,030      1,084
Owens-Brockway Glass Container, Inc. 144A
6.625%, 5/13/27(1) 		     2,315      2,497
         3,581
       
 
Cosmetics & Personal Care—0.3%    
Edgewell Personal Care Co. 144A
5.500%, 6/1/28(1) 		     1,105      1,170
Diversified Financial Services—1.7%    
Nationstar Mortgage Holdings, Inc. 144A
5.500%, 8/15/28(1) 		     1,080      1,122
Navient Corp.      
6.750%, 6/15/26      1,510      1,704
5.000%, 3/15/27      1,230      1,292
4.875%, 3/15/28        215        219
OneMain Finance Corp.      
8.250%, 10/1/23      1,215      1,365
6.625%, 1/15/28      1,305      1,506
5.375%, 11/15/29         70         77
         7,285
       
 
Electronic Equipment, Instruments &
Components—0.3% 		   
WESCO Distribution, Inc. 144A
7.250%, 6/15/28(1) 		     1,380      1,535
Entertainment—2.6%    
AMC Entertainment Holdings, Inc.
6.125%, 5/15/27 		     3,810      2,496
Caesars Entertainment, Inc.      
144A 6.250%, 7/1/25(1)      1,600      1,691
  Par Value   Value
       
Entertainment—continued    
144A 8.125%, 7/1/27(1) $     1,025   $   1,133
International Game Technology plc 144A
6.250%, 1/15/27(1) 		     2,260      2,576
Lions Gate Capital Holdings LLC 144A
5.500%, 4/15/29(1) 		     1,555      1,588
Scientific Games International, Inc. 144A
8.250%, 3/15/26(1) 		     1,610      1,712
        11,196
       
 
Environmental Services—0.4%    
GFL Environmental, Inc. 144A
4.750%, 6/15/29(1) 		     1,680      1,726
Equity Real Estate Investment Trusts
(REITs)—0.5% 		   
Park Intermediate Holdings LLC 144A
4.875%, 5/15/29(1) 		     1,125      1,159
Service Properties Trust      
4.350%, 10/1/24        465        471
4.500%, 3/15/25        680        684
         2,314
       
 
Food & Beverage—2.0%    
Kraft Heinz Foods Co.
6.500%, 2/9/40 		     1,745      2,528
Performance Food Group, Inc.      
144A 5.500%, 10/15/27(1)      2,135      2,223
144A 4.250%, 8/1/29(1)      1,155      1,159
Triton Water Holdings, Inc. 144A
6.250%, 4/1/29(1) 		     1,155      1,143
US Foods, Inc. 144A
4.750%, 2/15/29(1) 		     1,540      1,577
         8,630
       
 
 
See Notes to Financial Statements
51

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Healthcare-Services—0.9%    
ModivCare Escrow Issuer, Inc. 144A
5.000%, 10/1/29(1) 		$       670   $     688
Select Medical Corp. 144A
6.250%, 8/15/26(1) 		     1,070      1,131
Tenet Healthcare Corp. 144A
6.125%, 10/1/28(1) 		     2,140      2,259
         4,078
       
 
Home Builders—0.2%    
Picasso Finance Sub, Inc. 144A
6.125%, 6/15/25(1) 		       928        981
Internet—0.8%    
Netflix, Inc. 144A
5.375%, 11/15/29(1) 		     1,335      1,642
Uber Technologies, Inc.      
144A 8.000%, 11/1/26(1)        865        921
144A 7.500%, 9/15/27(1)        715        779
         3,342
       
 
Investment Companies—0.4%    
Compass Group Diversified Holdings LLC 144A
5.250%, 4/15/29(1) 		     1,655      1,733
Iron & Steel—0.8%    
Cleveland-Cliffs, Inc.
5.875%, 6/1/27 		     1,695      1,771
United States Steel Corp.
6.875%, 3/1/29 		     1,555      1,699
         3,470
       
 
Leisure Time—1.4%    
Carnival Corp.      
144A 10.500%, 2/1/26(1)      1,000      1,154
144A 5.750%, 3/1/27(1)        585        598
NCL Corp., Ltd. 144A
5.875%, 3/15/26(1) 		     2,330      2,336
Royal Caribbean Cruises Ltd.      
144A 11.500%, 6/1/25(1)        671        772
  Par Value   Value
       
Leisure Time—continued    
144A 5.500%, 4/1/28(1) $     1,175   $   1,184
         6,044
       
 
Lodging—0.9%    
Boyd Gaming Corp. 144A
8.625%, 6/1/25(1) 		     1,050      1,139
Hilton Domestic Operating Co., Inc. 144A
4.000%, 5/1/31(1) 		       840        866
MGM Resorts International
4.750%, 10/15/28 		     1,145      1,202
Wynn Las Vegas LLC 144A
5.500%, 3/1/25(1) 		       740        785
         3,992
       
 
Machinery-Construction & Mining—0.4%    
Terex Corp. 144A
5.000%, 5/15/29(1) 		     1,715      1,803
Media—4.0%    
CCO Holdings LLC
4.500%, 5/1/32 		     1,985      2,074
CSC Holdings LLC      
144A 7.500%, 4/1/28(1)      1,705      1,867
144A 5.750%, 1/15/30(1)        530        560
144A 5.000%, 11/15/31(1)        580        577
DIRECTV Holdings LLC 144A
5.875%, 8/15/27(1) 		     1,670      1,745
DISH DBS Corp.
7.375%, 7/1/28 		     2,320      2,497
Gray Television, Inc. 144A
4.750%, 10/15/30(1) 		     1,770      1,749
Meredith Corp.
6.875%, 2/1/26 		     1,085      1,124
Nexstar Media, Inc. 144A
5.625%, 7/15/27(1) 		     1,640      1,741
Sirius XM Radio, Inc. 144A
4.000%, 7/15/28(1) 		     1,735      1,772
Virgin Media Finance plc 144A
5.000%, 7/15/30(1) 		       760        787
 
See Notes to Financial Statements
52

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Media—continued    
Virgin Media Secured Finance plc 144A
5.500%, 5/15/29(1) 		$       865   $     927
        17,420
       
 
Metal Fabricate/Hardware—0.7%    
Park-Ohio Industries, Inc.
6.625%, 4/15/27 		     2,920      2,896
Mining—0.9%    
Freeport-McMoRan, Inc.
5.250%, 9/1/29 		     1,750      1,936
Hudbay Minerals, Inc. 144A
4.500%, 4/1/26(1) 		     1,155      1,161
Joseph T Ryerson & Son, Inc. 144A
8.500%, 8/1/28(1) 		       702        783
         3,880
       
 
Oil, Gas & Consumable Fuels—5.1%    
Antero Resources Corp.      
144A 7.625%, 2/1/29(1)      1,130      1,243
144A 5.375%, 3/1/30(1)        580        590
Callon Petroleum Co. 144A
8.000%, 8/1/28(1) 		     1,150      1,107
CITGO Petroleum Corp. 144A
6.375%, 6/15/26(1) 		       530        538
CNX Resources Corp. 144A
7.250%, 3/14/27(1) 		     1,885      1,998
Comstock Resources, Inc. 144A
6.750%, 3/1/29(1) 		     1,145      1,202
Continental Resources, Inc.      
4.375%, 1/15/28        705        791
144A 5.750%, 1/15/31(1)        670        817
EQT Corp.
7.500%, 2/1/30 		       980      1,273
Hess Midstream Operations LP 144A
4.250%, 2/15/30(1) 		       575        582
Occidental Petroleum Corp.      
5.550%, 3/15/26      1,940      2,163
6.625%, 9/1/30      1,930      2,408
  Par Value   Value
       
Oil, Gas & Consumable
Fuels—continued 		   
PBF Holding Co. LLC
6.000%, 2/15/28 		$     1,935   $   1,267
PDC Energy, Inc.
5.750%, 5/15/26 		     1,675      1,739
SM Energy Co.
6.500%, 7/15/28 		     1,185      1,191
Southwestern Energy Co.
5.375%, 3/15/30 		     1,085      1,129
Transocean, Inc. 144A
8.000%, 2/1/27(1) 		       440        323
USA Compression Partners LP
6.875%, 9/1/27 		     1,750      1,833
        22,194
       
 
Paper & Forest Products—0.2%    
Mercer International, Inc. 144A
5.125%, 2/1/29(1) 		     1,135      1,144
Pharmaceuticals—2.1%    
AdaptHealth LLC 144A
4.625%, 8/1/29(1) 		     1,155      1,158
Bausch Health Americas, Inc. 144A
8.500%, 1/31/27(1) 		     2,000      2,151
Bausch Health Cos., Inc. 144A
7.250%, 5/30/29(1) 		     1,490      1,535
Horizon Therapeutics USA, Inc. 144A
5.500%, 8/1/27(1) 		     1,710      1,813
Jazz Securities DAC 144A
4.375%, 1/15/29(1) 		     1,150      1,192
Organon & Co. 144A
5.125%, 4/30/31(1) 		     1,130      1,185
         9,034
       
 
Pipelines—2.3%    
Antero Midstream Partners LP 144A
5.375%, 6/15/29(1) 		     1,090      1,116
 
See Notes to Financial Statements
53

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Pipelines—continued    
Crestwood Midstream Partners LP 144A
6.000%, 2/1/29(1) 		$     1,085   $   1,107
DCP Midstream Operating LP
5.125%, 5/15/29 		     1,280      1,421
EQM Midstream Partners LP 144A
6.500%, 7/1/27(1) 		     1,100      1,227
NGL Energy Operating LLC 144A
7.500%, 2/1/26(1) 		     1,080      1,096
NuStar Logistics LP
6.375%, 10/1/30 		     1,120      1,238
Targa Resources Partners LP      
6.500%, 7/15/27        750        812
6.875%, 1/15/29      1,750      1,967
         9,984
       
 
Real Estate—0.4%    
Kennedy-Wilson, Inc.
5.000%, 3/1/31 		     1,545      1,607
Retail—0.9%    
Bath & Body Works, Inc. 144A
6.625%, 10/1/30(1) 		     1,505      1,734
Carvana Co. 144A
4.875%, 9/1/29(1) 		     1,130      1,119
New Red Finance, Inc. 144A
4.000%, 10/15/30(1) 		     1,140      1,134
         3,987
       
 
Semiconductors—0.7%    
Amkor Technology, Inc. 144A
6.625%, 9/15/27(1) 		     2,925      3,150
Software—1.6%    
Clarivate Science Holdings Corp. 144A
4.875%, 7/1/29(1) 		     1,700      1,754
  Par Value   Value
       
Software—continued    
Rackspace Technology Global, Inc. 144A
5.375%, 12/1/28(1) 		$     3,300   $   3,266
SS&C Technologies, Inc. 144A
5.500%, 9/30/27(1) 		     1,770      1,874
         6,894
       
 
Telecommunications—3.9%    
Avaya, Inc. 144A
6.125%, 9/15/28(1) 		     1,580      1,667
Cincinnati Bell, Inc. 144A
7.000%, 7/15/24(1) 		     1,220      1,243
CommScope Technologies LLC 144A
5.000%, 3/15/27(1) 		     1,110      1,093
Frontier Communications Holdings LLC 144A
5.000%, 5/1/28(1) 		       830        867
Hughes Satellite Systems Corp.
6.625%, 8/1/26 		     1,130      1,284
LogMeIn, Inc. 144A
5.500%, 9/1/27(1) 		     1,230      1,276
Lumen Technologies, Inc.      
144A 4.500%, 1/15/29(1)      1,145      1,119
144A 5.375%, 6/15/29(1)      1,150      1,181
Plantronics, Inc. 144A
4.750%, 3/1/29(1) 		     1,205      1,154
Sprint Communications, Inc.
11.500%, 11/15/21 		     2,580      2,633
Sprint Corp.
7.625%, 3/1/26 		     1,900      2,343
T-Mobile USA, Inc.
3.500%, 4/15/31 		     1,135      1,208
        17,068
       
 
Transportation—0.4%    
Fortress Transportation & Infrastructure Investors LLC      
144A 9.750%, 8/1/27(1)      1,160      1,309
 
See Notes to Financial Statements
54

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Transportation—continued    
144A 5.500%, 5/1/28(1) $       580   $      589
         1,898
       
 
Total Corporate Bonds and Notes
(Identified Cost $201,148) 		   208,588
       
 
Leveraged Loans—0.8%
Entertainment—0.3%    
Music Technology Holdings LLC PIK
8.000%, 12/16/22 (2)(3)(4)(5)(6) 		     1,420      1,420
Healthcare-Services—0.3%    
Aveanna Healthcare LLC      
0.000%, 6/30/28 (7)(8)        201        201
2021, First Lien (3 month LIBOR + 3.750%)
0.000%, 7/17/28 (7)(8) 		       870        868
         1,069
       
 
Retail—0.2%    
Petco Health and Wellness Co., Inc. First Lien (3 month LIBOR + 3.250%)
4.000%, 3/3/28 (8) 		       913        910
Total Leveraged Loans
(Identified Cost $3,399) 		     3,399
    
  Shares  
Convertible Preferred Stocks—28.3%
Auto Components—1.7%  
Aptiv plc Series A, 5.500%     42,465    7,304
Banks—7.5%  
Bank of America Corp. Series L, 7.250%      9,140   13,418
Wells Fargo & Co. Series L, 7.500%     12,835   19,137
      32,555
     
 
  Shares   Value
       
Chemicals—0.6%    
International Flavors & Fragrances, Inc., 6.000%     50,255   $   2,540
Commercial Services & Supplies—0.8%    
GFL Environmental, Inc., 6.000%     41,510      3,355
Communications Equipment—1.1%    
T-Mobile US 2020 Cash Mandatory Exchangeable Trust 144A, 5.250%(1)      4,040      4,811
Diversified Financial Services—0.7%    
Chewy, Inc.2020 Mandatory Exchangeable Trust 144A, 6.500%(1)      1,590      3,107
Electric Utilities—4.4%    
AES Corp. (The), 6.875%     56,285      5,589
NextEra Energy, Inc., 5.279%     59,355      3,163
NextEra Energy, Inc., 6.219%    192,150     10,351
        19,103
       
 
Healthcare Equipment & Supplies—4.8%    
Boston Scientific Corp. Series A, 5.500%     54,045      6,494
Danaher Corp. Series A, 4.750%      6,575     14,274
        20,768
       
 
Life Sciences Tools & Services—1.8%    
Avantor, Inc. Series A, 6.250%     63,980      7,766
Media—0.5%    
ViacomCBS, Inc. Series A, 5.750%     36,210      2,441
Pharmaceuticals—0.4%    
Elanco Animal Health, Inc., 5.000%     38,425      1,993
 
See Notes to Financial Statements
55

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Shares   Value
       
Professional Services—0.5%    
Clarivate plc Series A, 5.250%     25,005   $    2,390
Semiconductors & Semiconductor
Equipment—3.5% 		   
Broadcom, Inc. Series A, 8.000%      9,690     15,293
Total Convertible Preferred Stocks
(Identified Cost $85,000) 		   123,426
       
 
Preferred Stocks—1.9%
Entertainment—1.9%    
LiveStyle, Inc. Series A(2)(3)(4)(9)(10)      3,554        571
LiveStyle, Inc. Series B(2)(3)(4)(9)(10)     76,572      7,657
LiveStyle, Inc. Series B(2)(4)(9)      5,000         —
         8,228
       
 
Total Preferred Stocks
(Identified Cost $12,855) 		     8,228
       
 
Common Stocks—1.2%
Banks—1.1%    
CCF Holdings LLC(3)(4)(9)  6,367,079      4,330
CCF Holdings LLC Class M(3)(4)(9)    879,959        598
         4,928
       
 
Consumer Finance—0.1%    
Erickson, Inc.(4)(9)      6,354        179
Entertainment—0.0%    
LiveStyle, Inc.(2)(3)(4)(9)(10)     90,407         — (11)
Professional Services—0.0%    
Clarivate plc(9)      1,156         29
Total Common Stocks
(Identified Cost $22,695) 		     5,136
  Shares   Value
       
 
Warrants—0.1%
Banks—0.1%    
CCF Holdings LLC(4)(9)  1,455,681   $      640
Entertainment—0.0%    
LiveStyle, Inc. Series C(2)(4)(9)     19,500         — (11)
Media—0.0%    
Affinion Group Holdings(4)(9)(10)     12,009         —
Total Warrants
(Identified Cost $2,371) 		       640
    
  Par Value  
Convertible Bonds and Notes—77.5%
Airlines—2.0%  
JetBlue Airways Corp. 144A
0.500%, 4/1/26(1) 		$     4,105    4,035
Southwest Airlines Co.
1.250%, 5/1/25 		     3,130    4,562
       8,597
     
 
Auto Manufacturers—3.6%  
Ford Motor Co. 144A
0.000%, 3/15/26(1) 		     5,185    5,380
NIO, Inc.    
144A 0.000%, 2/1/26(1)      1,515    1,297
144A 0.500%, 2/1/27(1)      2,535    2,104
Tesla, Inc.
2.000%, 5/15/24 		       580    6,865
      15,646
     
 
Banks—2.3%  
BofA Finance LLC
0.125%, 9/1/22 		     4,515    5,971
JPMorgan Chase Bank NA 144A
0.125%, 1/1/23(1) 		     3,945    4,058
      10,029
     
 
 
See Notes to Financial Statements
56

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Biotechnology—1.9%    
Bridgebio Pharma, Inc. 144A
2.250%, 2/1/29(1) 		$     2,350   $   2,081
Exact Sciences Corp.
0.375%, 3/1/28 		     3,875      4,378
Halozyme Therapeutics, Inc. 144A
0.250%, 3/1/27(1) 		     1,835      1,670
         8,129
       
 
Building Materials—1.7%    
Patrick Industries, Inc.
1.000%, 2/1/23 		     6,680      7,451
Commercial Services—4.3%    
Alarm.com Holdings, Inc. 144A
0.000%, 1/15/26(1) 		     2,380      2,186
Chegg, Inc.
0.000%, 9/1/26 		     3,715      3,966
Shift4 Payments, Inc.      
144A 0.000%, 12/15/25(1)      1,690      2,155
144A 0.500%, 8/1/27(1)      2,635      2,684
Square, Inc. 144A
0.000%, 5/1/26(1) 		     6,460      7,736
        18,727
       
 
Computers—2.0%    
Lumentum Holdings, Inc.
0.500%, 12/15/26 		     1,645      1,836
Vocera Communications, Inc. 144A
0.500%, 9/15/26(1) 		     2,585      2,676
Zscaler, Inc.
0.125%, 7/1/25 		     2,215      4,254
         8,766
       
 
Diversified Financial Services—1.4%    
Coinbase Global, Inc. 144A
0.500%, 6/1/26(1) 		     3,675      3,883
LendingTree, Inc.
0.500%, 7/15/25 		     2,480      2,178
         6,061
       
 
  Par Value   Value
       
Electronics—1.3%    
II-VI, Inc.
0.250%, 9/1/22 		$     2,725   $   3,796
Itron, Inc. 144A
0.000%, 3/15/26(1) 		     1,800      1,718
         5,514
       
 
Energy-Alternate Sources—1.9%    
Enphase Energy, Inc.      
144A 0.000%, 3/1/26(1)      2,010      1,953
144A 0.000%, 3/1/28(1)      2,860      2,782
Sunrun, Inc. 144A
0.000%, 2/1/26(1) 		     4,370      3,732
         8,467
       
 
Entertainment—2.2%    
DraftKings, Inc. 144A
0.000%, 3/15/28(1) 		     4,435      4,248
Vail Resorts, Inc. 144A
0.000%, 1/1/26(1) 		     5,185      5,282
         9,530
       
 
Equity Real Estate Investment Trusts
(REITs)—1.4% 		   
Pebblebrook Hotel Trust
1.750%, 12/15/26 		     2,730      3,018
Two Harbors Investment Corp.
6.250%, 1/15/22 		     3,025      3,038
         6,056
       
 
Healthcare-Products—1.6%    
Insulet Corp.
0.375%, 9/1/26 		     3,005      4,326
Natera, Inc.
2.250%, 5/1/27 		       795      2,496
         6,822
       
 
Healthcare-Services—1.8%    
Oak Street Health, Inc. 144A
0.000%, 3/15/26(1) 		     3,740      3,453
 
See Notes to Financial Statements
57

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Healthcare-Services—continued    
Teladoc Health, Inc.
1.250%, 6/1/27 		$     4,095   $   4,336
         7,789
       
 
Internet—18.8%    
21Vianet Group, Inc. 144A
0.000%, 2/1/26(1) 		     2,320      1,955
Airbnb, Inc. 144A
0.000%, 3/15/26(1) 		     6,555      6,300
Booking Holdings, Inc.
0.750%, 5/1/25 		     2,360      3,433
Etsy, Inc.      
144A 0.125%, 9/1/27(1)      1,960      2,595
144A 0.250%, 6/15/28(1)      1,785      2,036
Expedia Group, Inc. 144A
0.000%, 2/15/26(1) 		     3,780      3,950
FireEye, Inc.
0.875%, 6/1/24 		       925        987
fuboTV, Inc. 144A
3.250%, 2/15/26(1) 		     5,595      5,377
Magnite, Inc. 144A
0.250%, 3/15/26(1) 		     3,700      3,140
Match Group Financeco 2, Inc. 144A
0.875%, 6/15/26(1) 		     3,150      5,266
Match Group Financeco 3, Inc. 144A
2.000%, 1/15/30(1) 		       210        375
Okta, Inc.
0.375%, 6/15/26 		     2,490      3,254
Palo Alto Networks, Inc.      
0.750%, 7/1/23        425        743
0.375%, 6/1/25      3,350      5,374
Pinduoduo, Inc.
0.000%, 12/1/25 		     2,350      2,248
RealReal, Inc. (The) 144A
1.000%, 3/1/28(1) 		     4,825      3,894
Snap, Inc. 144A
0.000%, 5/1/27(1) 		     6,605      7,713
Spotify USA, Inc. 144A
0.000%, 3/15/26(1) 		     3,505      3,166
Twitter, Inc. 144A
0.000%, 3/15/26(1) 		     6,025      5,694
Uber Technologies, Inc. 144A
0.000%, 12/15/25(1) 		     4,825      4,500
  Par Value   Value
       
Internet—continued    
Wayfair, Inc.
0.625%, 10/1/25 		$     3,805   $   3,907
Zendesk, Inc.
0.625%, 6/15/25 		     3,015      3,974
Zillow Group, Inc.
2.750%, 5/15/25 		     1,420      2,332
        82,213
       
 
Leisure Time—2.1%    
NCL Corp. Ltd.      
6.000%, 5/15/24        695      1,441
5.375%, 8/1/25      1,290      2,121
Royal Caribbean Cruises Ltd.      
4.250%, 6/15/23      1,290      1,737
144A 2.875%, 11/15/23(1)      3,070      3,824
         9,123
       
 
Machinery-Diversified—1.2%    
Chart Industries, Inc. 144A
1.000%, 11/15/24(1) 		     1,285      4,115
Middleby Corp. (The) 144A
1.000%, 9/1/25(1) 		       910      1,373
         5,488
       
 
Media—2.3%    
DISH Network Corp.      
3.375%, 8/15/26      2,650      2,764
144A 0.000%, 12/15/25(1)      2,935      3,507
Liberty Media Corp.
1.375%, 10/15/23 		     2,840      3,955
        10,226
       
 
Oil, Gas & Consumable Fuels—2.5%    
EQT Corp.
1.750%, 5/1/26 		     3,440      5,049
Pioneer Natural Resources Co.
0.250%, 5/15/25 		     3,835      5,721
        10,770
       
 
Pharmaceuticals—1.6%    
Dexcom, Inc.
0.250%, 11/15/25 		     2,890      3,324
 
See Notes to Financial Statements
58

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
Pharmaceuticals—continued    
Jazz Investments I Ltd.
2.000%, 6/15/26 		$     3,065   $   3,521
         6,845
       
 
Pipelines—3.6%    
Cheniere Energy, Inc.
4.250%, 3/15/45 		    18,700     15,635
Retail—1.8%    
Burlington Stores, Inc.
2.250%, 4/15/25 		     2,880      4,329
Dick’s Sporting Goods, Inc.
3.250%, 4/15/25 		       840      3,441
         7,770
       
 
Semiconductors—1.4%    
Cree, Inc.
1.750%, 5/1/26 		       565      1,083
MACOM Technology Solutions Holdings, Inc. 144A
0.250%, 3/15/26(1) 		     1,050      1,067
ON Semiconductor Corp. 144A
0.000%, 5/1/27(1) 		     2,280      2,604
Teradyne, Inc.
1.250%, 12/15/23 		       425      1,618
         6,372
       
 
Software—11.5%    
Akamai Technologies, Inc.
0.125%, 5/1/25 		     2,150      2,757
Avalara, Inc. 144A
0.250%, 8/1/26(1) 		     2,205      2,306
Bentley Systems, Inc.      
144A 0.125%, 1/15/26(1)      2,925      3,488
144A 0.375%, 7/1/27(1)        800        826
Bill.com Holdings, Inc. 144A
0.000%, 12/1/25(1) 		     2,920      5,296
  Par Value   Value
       
Software—continued    
Cloudflare, Inc. 144A
0.000%, 8/15/26(1) 		$     4,860   $    4,813
Coupa Software, Inc.
0.375%, 6/15/26 		     2,580      2,906
Datadog, Inc.
0.125%, 6/15/25 		     2,035      3,290
DocuSign, Inc. 144A
0.000%, 1/15/24(1) 		     2,955      3,201
Fastly, Inc. 144A
0.000%, 3/15/26(1) 		     2,805      2,377
Five9, Inc.
0.500%, 6/1/25 		       890      1,209
i3 Verticals LLC
1.000%, 2/15/25 		     1,840      1,808
MicroStrategy, Inc. 144A
0.000%, 2/15/27(1) 		     2,770      2,196
RingCentral, Inc.
0.000%, 3/1/25 		     3,280      3,436
Splunk, Inc.
1.125%, 6/15/27 		     4,550      4,536
Workday, Inc.
0.250%, 10/1/22 		     2,470      4,619
Zynga, Inc. 144A
0.000%, 12/15/26(1) 		     1,200      1,199
        50,263
       
 
Telecommunications—1.3%    
Infinera Corp.
2.125%, 9/1/24 		     1,195      1,332
Nice Ltd. 144A
0.000%, 9/15/25(1) 		     1,290      1,510
Viavi Solutions, Inc.
1.000%, 3/1/24 		     2,150      2,849
         5,691
       
 
Total Convertible Bonds and Notes
(Identified Cost $303,500) 		   337,980
 
See Notes to Financial Statements
59

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
  Par Value   Value
       
 
Total Long-Term Investments—157.6%
(Identified Cost $630,968) 		  $  687,397
    
  Shares  
Short-Term Investment—4.7%
Money Market Mutual Fund—4.7%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(12) 20,587,971   20,588
Total Short-Term Investment
(Identified Cost $20,588) 		  20,588
     
 
TOTAL INVESTMENTS—162.3%
(Identified Cost $651,556) 		 $ 707,985
Other assets and liabilities, net—(0.1)%     (268)
Preferred Shares—(62.2)% (271,525)
NET ASSETS—100.0%  $ 436,192
    
Abbreviations:
LIBOR London Interbank Offered Rate
LLC Limited Liability Company
LP Limited Partnership
NA National Association
PIK Payment-in-Kind Security
REIT Real Estate Investment Trust
    
Footnote Legend:
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2021, these securities amounted to a value of $305,932 or 70.1% of net assets.
(2) A member of the Fund’s portfolio management team is a member of the board of directors of LiveStyle, Inc. The Fund’s aggregate value of investments in LiveStyle, Inc. and its subsidiary Music Technology Holdings LLC represents 2.21% of net assets.
(3) Affiliated company. See Note 3G in Notes to Financial Statements.
(4) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(5) Security is fixed rate.
(6) 100% of the income received was in cash.
(7) This loan will settle after August 31, 2021, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.
(8) Variable rate security. Rate disclosed is as of August 31, 2021. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(9) Non-income producing.
(10) Security is restricted from resale.
(11) Amount is less than $500.
(12) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings†
United States 93%
Jersey 2
Bermuda 1
Canada 1
Cayman Islands 1
Liberia 1
United Kingdom 1
Total 100%
† % of total investments as of August 31, 2021.
 
For information regarding the abbreviations, see the Key Investment Terms starting on page 4.
See Notes to Financial Statements
60

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
The following table summarizes the market value of the Fund’s investments as of August 31, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
August 31, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs 		  Level 3
Significant
Unobservable
Inputs
Assets:              
Debt Securities:              
Corporate Bonds and Notes $208,588   $ —   $208,588   $ —
Leveraged Loans 3,399   —   1,979   1,420
Convertible Bonds and Notes 337,980   —   337,980   —
Equity Securities:              
Convertible Preferred Stocks 123,426   115,508   7,918   —
Common Stocks 5,136   29   —   5,107
Preferred Stocks 8,228   —   —   8,228 (1)
Warrants 640   —   —   640 (1)
Money Market Mutual Fund 20,588   20,588   —   —
Total Investments $707,985   $136,125   $556,465   $15,395
    
(1) Includes internally fair valued securities currently priced at zero ($0).
There were no transfers into or out of Level 3 related to securities held at August 31, 2021.
Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of Level 3 investments.
See Notes to Financial Statements
61

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
  Total   Corporate
Bonds
And Notes 		  Leveraged
Loans 		  Common
Stocks 		  Preferred
Stocks 		  Warrants
Investments in Securities                      
Balance as of February 28, 2021: $  19,409   $  9,574   $ 1,365   $  163   $ 8,194   $ 113
Accrued discount/(premium) 8   8   —   —   —   —
Realized gain (loss) (3,751)   (3,751)   —   — (a)   —   —
Change in unrealized appreciation (depreciation)(b) 5,141   16,833   —   (12,253)   34   527
Purchases 17,252   —   55   17,197 (c)   —   —
Sales (d) (22,664)   (22,664) (c)   —   —   —   —
Balance as of August 31, 2021 $  15,395   $  —   $ 1,420   $  5,107   $ 8,228 (e)   $ 640 (e)
(a) Amount is less than $500.
(b) The change in unrealized appreciation (depreciation) on investments still held at August 31, 2021, was $(11,692).
(c) Includes securities issued or removed due to corporate actions.
(d) Includes paydowns on securities.
(e) Includes internally fair valued security currently priced at zero ($0).
See Notes to Financial Statements
62

AllianzGI Convertible & Income Fund II
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
August 31, 2021
($ reported in thousands)
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 August 31, 2021:
Investments in
Securities – Assets 		  Ending
Balance at
August 31, 2021 		  Valuation
Technique Used 		  Unobservable
Inputs 		  Input
Values
Preferred Stocks:                
LiveStyle, Inc.
Series A 		  $ 571   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   (25% - 30%)
                 
LiveStyle, Inc.
Series B 		  $7,657   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   (25% - 30%)
                 
Common Stocks:                
CCF Holdings   $4,330   Market and Company Comparables   EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount   20%
                 
CCF Holdings
Series M 		  $ 598   Market and Company Comparables   EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount   20%
                 
Erickson   $ 179   Market and Company Comparables   EV Multiples   1.32x (0.74x - 2.32x)
11.73x (8.16x - 47.06x)
1.01x (0.59x - 1.39x)
            M&A Transaction
Multiples 		  0.96x (0.41x - 1.96x)
            Illiquidity Discount   20%
                 
LiveStyle, Inc.   $—(1)   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   (25% - 30%)
                 
Warrants:                
CCF Holdings LLC   $ 640   Market and Company Comparables   EV Multiples   1.07x (0.33x - 1.85x)
0.53x (0.20x - 0.76x)
            Illiquidity Discount   20%
        Black-Scholes Model   Volatility   54%
                 
LiveStyle, Inc.
Series C 		  $—(1)   Market and Company Comparables   EV Multiples   4.12x (0.41x - 16.67x)
            Illiquidity Discount   (25% - 30%)
(1) Amount is less than $500.
See Notes to Financial Statements
63

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
August 31, 2021
(Reported in thousands except shares and per share amounts)
  AllianzGI Artificial Intelligence & Technology Opportunities Fund   AllianzGI Convertible & Income 2024 Target Term Fund
Assets      
Investment in securities at value(1)(2)
$ 1,076,248   $ 265,598
Investment in affiliates at value(3)
—   1,470
Cash
100   107
Receivables      
Investment securities sold
1,425   4
Dividends and interest
1,141   1,940
Securities lending income
6   1
Prepaid Trustees’ retainer
39   8
Prepaid expenses and other assets (Note 3)
11   28
Total assets
1,078,970   269,156
Liabilities      
Loan Payable (Note 8)
30,000   69,700
Payables      
Collateral on securities loaned
12,019   1,441
Dividend distributions
4,292   840
Investment advisory fees (Note 3)
1,065   164
Administration, accounting and custody fees
152   72
Professional fees
127   64
Loan interest payable (Note 8)
27   41
Trustee deferred compensation plan (Note 3)
11   28
Investment securities purchased
—   4,750
Other accrued expenses
9   26
Total liabilities
47,702   77,126
Net Assets Applicable to Common Shareholders
$1,031,268   $192,030
       
See Notes to Financial Statements
64

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
August 31, 2021
(Reported in thousands except shares and per share amounts)
  AllianzGI Artificial Intelligence & Technology Opportunities Fund   AllianzGI Convertible & Income 2024 Target Term Fund
Net Assets Applicable to Common Shareholders Consist of:      
Common shares par value ($0.00001 per share)
$ —(a)   $ —(a)
Capital paid in on shares of beneficial interest
686,912   178,895
Total distributable earnings (accumulated losses)
344,356   13,135
Net Assets Applicable to Common Shareholders
$ 1,031,268   $ 192,030
Common Shares Issued and Outstanding
34,338,682   18,258,516
Net Asset Value Per Common Share(b)
$ 30.03   $ 10.52
(1)Investment in securities at cost
$ 872,862   $ 264,340
(2) Market value of securities on loan
$ 40,835   $ 19,409
(3) Investment in affiliates at cost
$ —   $ 2,953
    
   
(a) Amount is less than $500.
(b) Net Asset Value Per Common Share is calculated using unrounded net assets.
See Notes to Financial Statements
65

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
August 31, 2021
(Reported in thousands except shares and per share amounts)
  AllianzGI Convertible & Income Fund   AllianzGI Convertible & Income Fund II
Assets      
Investment in securities at value(1)(2)
$ 921,522   $ 693,409
Investment in affiliates at value(3)
15,984   14,576
Cash
100   503
Receivables      
Investment securities sold
968   745
Dividends and interest
6,399   4,901
Securities lending income
19   —
Deferred offering costs (Note 9)
214   202
Prepaid Trustees’ retainer
22   17
Prepaid expenses and other assets (Note 3)
213   163
Total assets
945,441   714,516
Liabilities      
Loan Payable (Note 8)
28,852   —
Payables      
Collateral on securities loaned
7,972   —
Dividend distributions
4,800   3,876
Investment securities purchased
2,236   2,126
Investment advisory fees (Note 3)
537   404
Trustee deferred compensation plan (Note 3)
213   162
Administration, accounting and custody fees
134   109
Professional fees
83   70
Loan interest payable (Note 8)
18   —
Other accrued expenses
58   52
Total liabilities
44,903   6,799
Auction-Rate Preferred Shares ($25,000 liquidation preference per share applicable to an aggregate of 8,931 and 6,501 shares issued and outstanding, respectively)
223,275   162,525
Cumulative Preferred Shares ($25.00 liquidation preference per share applicable to an aggregate of 4,000,000 and 4,360,000 shares issued and outstanding, respectively)
100,000   109,000
Net Assets Applicable to Common Shareholders
$577,263   $436,192
       
See Notes to Financial Statements
66

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
August 31, 2021
(Reported in thousands except shares and per share amounts)
  AllianzGI Convertible & Income Fund   AllianzGI Convertible & Income Fund II
Net Assets Applicable to Common Shareholders Consist of:      
Common shares par value ($0.00001 per share)
$ 1   $ 1
Capital paid in on shares of beneficial interest
759,682   582,307
Total distributable earnings (accumulated losses)
(182,420)   (146,116)
Net Assets Applicable to Common Shareholders
$ 577,263   $ 436,192
Common Shares Issued and Outstanding
90,373,569   76,115,749
Net Asset Value Per Common Share(a)
$ 6.39   $ 5.73
(1)Investment in securities at cost
$ 832,671   $ 625,084
(2) Market value of securities on loan
$ 35,567   $ —
(3) Investment in affiliates at cost
$ 32,761   $ 26,472
    
   
(a) Net Asset Value Per Common Share is calculated using unrounded net assets.
See Notes to Financial Statements
67

STATEMENTS OF OPERATIONS (Unaudited)
SIX MONTHS ENDED August 31, 2021
($ reported in thousands)
  AllianzGI Artificial Intelligence & Technology Opportunities Fund   AllianzGI Convertible & Income 2024 Target Term Fund
Investment Income      
Dividends (net of foreign withholding taxes of $16 and $0, respectively)
$ 2,773   $ 1
Interest
1,285   4,111
Security lending, net of fees
14   2
Total investment income
4,072   4,114
Expenses      
Investment advisory fees
6,448   991
Administration, accounting and custody fees
609   194
Professional fees
110   46
Trustees’ fees and expenses
93   18
Printing fees and expenses
34   16
Transfer agent fees and expenses
13   13
Miscellaneous expenses
22   9
Total expenses before interest expense
7,329   1,287
Loan interest (Note 8)
171   243
Total expenses after interest expense
7,500   1,530
Less expenses reimbursed and/or waived by investment adviser
(430)   (112)
Net expenses
7,070   1,418
Net investment income (loss)
(2,998)   2,696
Net Realized and Unrealized Gain (Loss) on Investments      
Net realized gain (loss) from:      
 Investments
66,299   3,181
Investment in affiliates
—   — (1)
Net change in unrealized appreciation (depreciation) on:      
 Investments
(9,117)   (2,931)
Investment in affiliates
—   (1,483)
Net realized and unrealized gain (loss) on investments
57,182   (1,233)
Net increase (decrease) in net assets applicable to common shareholders resulting from operations
$54,184   $ 1,463
    
   
(1) Amount is less than $500.
See Notes to Financial Statements
68

STATEMENTS OF OPERATIONS (Unaudited) (Continued)
SIX MONTHS ENDED August 31, 2021
($ reported in thousands)
  AllianzGI Convertible & Income Fund   AllianzGI Convertible & Income Fund II
Investment Income      
Interest
$ 11,305   $ 8,670
Dividends (net of foreign withholding taxes of $5 and $4, respectively)
3,896   2,945
Security lending, net of fees
42   —
Total investment income
15,243   11,615
Expenses      
Investment advisory fees
3,243   2,469
Administration, accounting and custody fees
548   425
Auction agent and commissions
104   86
Professional fees
93   84
Trustees’ fees and expenses
54   41
Printing fees and expenses
46   40
Transfer agent fees and expenses
15   15
Miscellaneous expenses
52   43
Total expenses before interest expense
4,155   3,203
Loan interest (Note 8)
103   —
Total expenses after interest expense
4,258   3,203
Less expenses reimbursed and/or waived by investment adviser
(397)   (294)
Net expenses
3,861   2,909
Net investment income (loss)
11,382   8,706
Net Realized and Unrealized Gain (Loss) on Investments      
Net realized gain (loss) from:      
 Investments
19,143   14,301
Investment in affiliates
— (1)   — (1)
Net change in unrealized appreciation (depreciation) on:      
 Investments
5,932   4,670
Investment in affiliates
(17,124)   (12,235)
Net realized and unrealized gain (loss) on investments
7,951   6,736
Dividends on preferred shares from net investment income
(2,830)   (3,017)
Net increase (decrease) in net assets applicable to common shareholders resulting from operations
$ 16,503   $ 12,425
    
   
(1) Amount is less than $500.
See Notes to Financial Statements
69

ALLIANZGI ARTIFICIAL INTELLIGENCE & TECHNOLOGY OPPORTUNITIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
($ reported in thousands)
  Six Months
Ended
August 31, 2021
(Unaudited) 		  Year Ended
February 28, 2021
INCREASE (DECREASE) IN NET ASSETS
From Operations 		     
Net investment income (loss)
$ (2,998)   $ (2,703)
Net realized gain (loss)
66,299   171,687
Net change in unrealized appreciation (depreciation)
(9,117)   236,027
Increase (decrease) in net assets resulting from operations
54,184   405,011
From Dividends and Distributions to Shareholders      
Net investment income and net realized gains
(25,754) (1)   (85,439)
Dividends and Distributions to Shareholders
(25,754)   (85,439)
From Capital Share Transactions      
Reinvestment of distributions resulting in the issuance of common stock (0 and 16 shares, respectively)
—   450
Increase (decrease) in net assets from capital transactions
—   450
Net increase (decrease) in net assets
28,430   320,022
Net Assets      
Beginning of period
1,002,838   682,816
End of period
$1,031,268   $1,002,838
    
(1) Please note that the tax status of the Fund’s distributions is determined at the end of the taxable year.
See Notes to Financial Statements
70

ALLIANZGI CONVERTIBLE & INCOME 2024 TARGET TERM FUND
STATEMENTS OF CHANGES IN NET ASSETS
($ reported in thousands)
  Six Months
Ended
August 31, 2021
(Unaudited) 		  Year Ended
February 28, 2021
INCREASE (DECREASE) IN NET ASSETS
From Operations 		     
Net investment income (loss)
$ 2,696   $ 7,409
Net realized gain (loss)
3,181   11,108
Net change in unrealized appreciation (depreciation)
(4,414)   7,246
Increase (decrease) in net assets resulting from operations
1,463   25,763
From Dividends and Distributions to Shareholders      
Net investment income and net realized gains
(5,039) (1)   (10,078)
Dividends and Distributions to Shareholders
(5,039)   (10,078)
From Capital Share Transactions      
Reinvestment of distributions resulting in the issuance of common stock (0 and 2 shares, respectively)
—   14
Increase (decrease) in net assets from capital transactions
—   14
Net increase (decrease) in net assets
(3,576)   15,699
Net Assets      
Beginning of period
195,606   179,907
End of period
$192,030   $195,606
    
(1) Please note that the tax status of the Fund’s distributions is determined at the end of the taxable year.
See Notes to Financial Statements
71

ALLIANZGI CONVERTIBLE & INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
($ reported in thousands)
  Six Months
Ended
August 31, 2021
(Unaudited) 		  Year Ended
February 28, 2021
INCREASE (DECREASE) IN NET ASSETS
From Operations 		     
Net investment income (loss)
$ 11,382   $ 33,510
Net realized gain (loss)
19,143   3,663
Net change in unrealized appreciation (depreciation)
(11,192)   118,355
Increase (decrease) in net assets resulting from operations
19,333   155,528
Dividends on Preferred Shares from Net Investment Income
(2,830)   (6,245)
From Dividends and Distributions to Common Shareholders      
Net investment income and net realized gains
(23,184) (1)   (28,244)
Return of capital
—   (18,750)
Dividends and Distributions to Common Shareholders
(23,184)   (46,994)
From Capital Share Transactions      
Reinvestment of distributions resulting in the issuance of common stock (0 and 4 shares, respectively)
—   22
Increase (decrease) in net assets from capital transactions
—   22
Net increase (decrease) in net assets
(6,681)   102,311
Net Assets      
Beginning of period
583,944   481,633
End of period
$577,263   $583,944
    
(1) Please note that the tax status of the Fund’s distributions is determined at the end of the taxable year.
See Notes to Financial Statements
72

ALLIANZGI CONVERTIBLE & INCOME FUND II
STATEMENTS OF CHANGES IN NET ASSETS
($ reported in thousands)
  Six Months
Ended
August 31, 2021
(Unaudited) 		  Year Ended
February 28, 2021
INCREASE (DECREASE) IN NET ASSETS
From Operations 		     
Net investment income (loss)
$ 8,706   $ 25,827
Net realized gain (loss)
14,301   2,875
Net change in unrealized appreciation (depreciation)
(7,565)   89,181
Increase (decrease) in net assets resulting from operations
15,442   117,883
Dividends on Preferred Shares from Net Investment Income
(3,017)   (6,448)
From Dividends and Distributions to Common Shareholders      
Net investment income and net realized gains
(17,227) (1)   (20,132)
Return of capital
—   (14,691)
Dividends and Distributions to Common Shareholders
(17,227)   (34,823)
Net increase (decrease) in net assets
(4,802)   76,612
Net Assets      
Beginning of period
440,994   364,382
End of period
$436,192   $440,994
    
(1) Please note that the tax status of the Fund’s distributions is determined at the end of the taxable year.
See Notes to Financial Statements
73

ALLIANZGI CONVERTIBLE & INCOME 2024 TARGET TERM FUND
STATEMENT OF CASH FLOWS (Unaudited)
FOR THE SIX MONTHS ENDED August 31, 2021
($ reported in thousands)
Increase (Decrease) in cash  
Cash flows provided by (used for) operating activities:  
Net increase (decrease) in net assets resulting from operations
$ 1,463
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:  
Proceeds from sales of long-term investments
69,307
(Increase) Decrease in investment securities sold receivable
(4)
Purchases of long-term investments
(84,814)
Increase (Decrease) in investment securities purchased payable
1,737
Net (purchases) or sales of short-term investments
16,015
Net change in unrealized (appreciation)/depreciation on investments
4,414
Net realized (gain)/loss on investments
(3,181)
Amortization of premium and accretion of discounts on investments
179
(Increase) Decrease in dividends and interest receivable
(3)
(Increase) Decrease in security lending receivable
(1)
(Increase) Decrease in prepaid expenses and other assets
4
(Increase) Decrease in prepaid Trustees’ retainer
(8)
Increase (Decrease) in loan interest payable
(6)
Increase (Decrease) in affiliated expenses payable
37
Increase (Decrease) in non-affiliated expenses payable
(146)
Cash provided by (used for) operating activities
4,993
Cash provided by (used for) financing activities:  
Cash distributions paid to shareholders
(5,039)
Cash provided by (used for) financing activities
(5,039)
Net increase (decrease) in cash (46)
Cash at beginning of period
153
Cash at end of period
$ 107
Supplemental cash flow information:  
Cash paid during the period for interest expense on loan payable
$ 249
See Notes to Financial Statements
74

ALLIANZGI ARTIFICIAL INTELLIGENCE & TECHNOLOGY OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
  Six Months
Ended August 31,
2021
(Unaudited) 		  Year Ended
February 28,
2021 		  From Inception
October 31, 2019(1)
to
February 29
2020
       
PER SHARE DATA:          
Net asset value, beginning of period
$ 29.20   $ 19.89   $ 20.00
Income (loss) from investment operations:          
Net investment income (loss)(2)
(0.09)   (0.08)   (0.01)
Net realized and unrealized gain (loss)
1.67   11.88   0.23
Total from investment operations
1.58   11.80   0.22
Dividends and Distributions to Shareholders:          
Net investment income
(0.75)   —   —
Net realized gains
—   (2.49)   (0.33)
Total dividends and distributions to shareholders
(0.75)   (2.49)   (0.33)
Net asset value, end of period
$ 30.03   $ 29.20   $ 19.89
Market value, end of period
$ 27.97   $ 27.41   $ 17.72
Total return, net asset value(3), (4)
5.52%   61.85%   0.99%
Total return, market value(3), (4)
4.85%   71.09%   (9.92)%
RATIOS/SUPPLEMENTAL DATA:          
Ratio of net expenses to average net assets(5), (6), (7)
1.41%   1.42% (8)   1.34% (9)
Ratio of total expenses after interest expense to average net assets(5), (7)
1.50%   1.43% (8)   1.34% (9)
Ratio of net investment income (loss) to average net assets(5)
(0.60)%   (0.33)% (8)   (0.15)% (9)
Portfolio turnover rate(3)
31%   103%   56%
Net assets, end of period (000’s)
$1,031,268   $1,002,838   $682,816
Loan payable, end of period (000’s)
$ 30,000   $ 30,000   $ 30,000
Asset coverage, per $1,000 principal amount of loan payable
$ 35,376   $ 34,428   $ 23,761
    
(1) Commencement of operations.
(2) Calculated using average shares outstanding.
(3) Not annualized for periods less than one year.
(4) Total return on market value is calculated assuming a purchase of common shares on the opening of the first day and sale on the closing of the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s Automatic Reinvestment and Cash Purchase Plan. Total return on market value is not annualized for periods of less than one year. Brokerage commissions that a shareholder may pay are not reflected. Total return on market value does not reflect the deduction of taxes that a shareholder may pay on fund distributions or the sale of fund shares. Total return on net asset value uses the same methodology, but with use of net asset value for the beginning and ending values.
(5) Annualized for periods less than one year.
(6) Ratio of net expenses, before interest expense, was 1.38%, 1.40% and 1.34% for the period ended August 31, 2021, year ended February 28, 2021 and period ended February 29, 2020 respectively.
(7) Interest expense relates to participation in the debt financing (See Note 8).
(8) Inclusive of excise tax expense of 0.05% for the year ended February 28, 2021.
(9) Certain expenses incurred by the Fund were not annualized.
See Notes to Financial Statements
75

ALLIANZGI CONVERTIBLE & INCOME 2024 TARGET TERM FUND
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
  Six Months
Ended August 31,
2021
(Unaudited) 		  Year Ended February 28/29   From Inception
June 30, 2017(1)
to
February 28,
2018
  2021   2020   2019  
PER SHARE DATA:                  
Net asset value, beginning of period
$ 10.71   $ 9.85   $ 9.71   $ 9.79   $ 9.84(2)
Income (loss) from investment operations:                  
Net investment income (loss)(3)
0.15   0.41   0.43   0.48   0.35
Net realized and unrealized gain (loss)
(0.06)   1.00   0.26   (0.01)   (0.06)
Total from investment operations
0.09   1.41   0.69   0.47   0.29
Dividends and Distributions to Shareholders:                  
Net investment income
(0.28)   (0.39)   (0.44)   (0.50)   (0.32)
Net realized gains
—   (0.16)   (0.11)   (0.05)   —
Total dividends and distributions to shareholders
(0.28)   (0.55)   (0.55)   (0.55)   (0.32)
Net asset value, end of period
$ 10.52   $ 10.71   $ 9.85   $ 9.71   $ 9.79
Market value, end of period
$ 10.33   $ 10.04   $ 9.14   $ 9.00   $ 9.22
Total return, net asset value(4), (5)
0.83%   15.18%   7.30%   4.97%   2.87%
Total return, market value(4), (5)
5.64%   16.68%   7.63%   3.72%   (4.59)%
RATIOS/SUPPLEMENTAL DATA:                  
Ratio of net expenses to average net assets(6), (7), (8), (9)
1.46%   1.72%   2.38%   2.60%   2.14% (10)
Ratio of total expenses after interest expense to average
net assets(6), (7), (9)
1.58%   1.73%   2.38%   2.60%   2.14% (10)
Ratio of net investment income (loss) to average net
assets(6), (7)
2.78%   4.24%   4.34%   4.94%   5.47% (10)
Portfolio turnover rate(4)
28%   101%   86%   116%   66%
Net assets, end of period (000’s)
$192,030   $195,606   $179,907   $177,319   $178,760
Loan payable, end of period (000’s)
$ 69,700   $ 69,700   $ 69,700   $ 69,700   $ 69,700
Asset coverage, per $1,000 principal amount of loan
payable
$ 3,755   $ 3,806   $ 3,581   $ 3,544   $ 3,565
    
(1) Commencement of operations.
(2) Initial public offering price of $10.00 per share less sales load of $1.65% of the offering price.
(3) Calculated using average shares outstanding.
(4) Not annualized for periods less than one year.
See Notes to Financial Statements
76

ALLIANZGI CONVERTIBLE & INCOME 2024 TARGET TERM FUND
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
(5) Total return on market value is calculated assuming a purchase of common shares on the opening of the first day and sale on the closing of the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s Automatic Reinvestment and Cash Purchase Plan. Total return on market value is not annualized for periods of less than one year. Brokerage commissions that a shareholder may pay are not reflected. Total return on market value does not reflect the deduction of taxes that a shareholder may pay on fund distributions or the sale of fund shares. Total return on net asset value uses the same methodology, but with use of net asset value for the beginning and ending values.
(6) Annualized for periods less than one year.
(7) Inclusive of excise tax expense of 0.08%, 0.07%, 0.08% and 0.02% (not annualized) for the years ended February 28, 2021, February 29, 2020, February 28, 2019 and the period ended February 28, 2018, respectively.
(8) Ratio of net expenses, before interest expense, was 1.21%, 1.33%, 1.31%, 1.36% and 1.23% for the period ended August 31, 2021, years ended 2021, 2020 and 2019 and period ended 2018 respectively.
(9) Interest expense relates to participation in the debt financing (See Note 8).
(10) Certain expenses incurred by the Fund were not annualized.
See Notes to Financial Statements
77

ALLIANZGI CONVERTIBLE & INCOME FUND
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
  Six Months
Ended
August  31,
2021
(Unaudited) 		  Year Ended February 28/29
  2021   2020   2019   2018   2017
PER SHARE DATA:                      
Net asset value, beginning of period
$ 6.46   $ 5.33   $ 5.61   $ 6.54   $ 6.86   $ 5.50
Income (loss) from investment operations:                      
Net investment income (loss)(1)
0.13   0.37   0.52   0.56   0.69   0.73
Net realized and unrealized gain (loss)
0.09   1.35   (0.02)   (0.64)   (0.16)   1.44
Total from investment operations
0.22   1.72   0.50   (0.08)   0.53   2.17
Dividends on Preferred Shares from Net Investment
 Income:
(0.03)   (0.07)   (0.14)   (0.12)   (0.07)   (0.03)
Net increase (decrease) in net assets applicable to common
shareholders resulting from investment operations
0.19   1.65   0.36   (0.20)   0.46   2.14
Dividends and Distributions to Shareholders:                      
Net investment income
(0.26)   (0.31)   (0.42)   (0.50)   (0.77)   (0.78)
Return of capital
—   (0.21)   (0.22)   (0.28)   (0.01)   —
Total dividends and distributions to shareholders
(0.26)   (0.52)   (0.64)   (0.78)   (0.78)   (0.78)
Preferred Shares Transactions:                      
Accretion to net asset value, resulting from tender offer of
Auction-Rate Preferred shares
—   —   —   0.09   —   —
Capital change resulting from issuance of Cumulative
Preferred Shares and related offering costs
—   —   —   (0.04)   —   —
Net asset value, end of period
$ 6.39   $ 6.46   $ 5.33   $ 5.61   $ 6.54   $ 6.86
Market value, end of period
$ 6.17   $ 5.68   $ 5.10   $ 6.24   $ 6.93   $ 6.93
Total return, net asset value(2), (3)
3.03%   33.90%   6.52%   (2.42)%   7.04%   41.09%
Total return, market value(2), (3)
13.34%   24.29%   (8.51)%   2.00%   12.22%   59.15%
RATIOS/SUPPLEMENTAL DATA:                      
Ratio of net expenses to average net assets(4), (5), (6), (7)
1.35%   1.45%   1.53%   1.56% (8)   1.28%   1.36% (9)
Ratio of total expenses after interest expense to average net
assets(4), (5), (7)
1.49%   1.48%   1.53%   1.56% (8)   1.28%   1.36% (9)
Ratio of net investment income (loss) to average net
assets(4), (5)
3.98%   7.04%   9.30%   9.22%   10.32%   11.33%
Portfolio turnover rate(2)
30%   73%   35%   41%   34%   28%
Net assets, end of period (000’s)
$577,263   $583,944   $481,633   $502,648   $580,867   $456,985
Loan payable, end of period (000’s)
$ 28,852   $ 28,852   $ 28,852   $ 28,852   $ —   $ —
See Notes to Financial Statements
78

ALLIANZGI CONVERTIBLE & INCOME FUND
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
  Six Months
Ended
August 31,
2021
(Unaudited) 		  Year Ended February 28/29
  2021   2020   2019   2018   2017
Asset coverage, per $1,000 principal amount of loan payable
$ 32,212   $ 32,444   $ 28,898   $ 29,627   $ —   $ —
Asset coverage, per $25 liquidation preference per share of
cumulative preferred shares
$ 70   $ 70   $ 62   $ 64   $ —   $ —
Asset coverage per $25,000 liquidation preference per share of
auction-rate preferred shares
65,984   70,027   62,132   63,572   65,668   67,376
Cumulative Preferred shares average market value(10)
$ 26.40   $ 25.91   $ 25.81   $ 24.46   $ —   $ —
    
(1) Calculated using average common shares outstanding.
(2) Not annualized for periods less than one year.
(3) Total return on market value is calculated assuming a purchase of common shares on the opening of the first day and sale on the closing of the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s Automatic Reinvestment and Cash Purchase Plan. Total return on market value is not annualized for periods of less than one year. Brokerage commissions that a shareholder may pay are not reflected. Total return on market value does not reflect the deduction of taxes that a shareholder may pay on fund distributions or the sale of fund shares. Total return on net asset value uses the same methodology, but with use of net asset value for the beginning and ending values.
(4) Calculated on the basis of income and expenses applicable to both common and preferred shares relative to average net assets of common shareholders.
(5) Annualized for periods less than one year.
(6) Ratio of net expenses, before interest expense and auction agent fees and commissions, was 1.26%, 1.35%, 1.33%, 1.34%, 1.21% and 1.28% for the period ended August 31, 2021, years ended 2021, 2020, 2019, 2018 and 2017, respectively.
(7) Interest expense relates to participation in the debt financing (See Note 8).
(8) Inclusive of tender offer expenses of 0.03%.
(9) Inclusive of excise tax expense of 0.03% for the year ended February 28, 2017.
(10) Based on daily closing market prices.
See Notes to Financial Statements
79

ALLIANZGI CONVERTIBLE & INCOME FUND II
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
  Six Months
Ended
August  31,
2021
(Unaudited) 		  Year Ended February 28/29
  2021   2020   2019   2018   2017
PER SHARE DATA:                      
Net asset value, beginning of period
$ 5.79   $ 4.79   $ 5.03   $ 5.87   $ 6.14   $ 4.89
Income (loss) from investment operations:                      
Net investment income (loss)(1)
0.11   0.34   0.48   0.50   0.62   0.66
Net realized and unrealized gain (loss)
0.10   1.20   (0.03)   (0.57)   (0.14)   1.30
Total from investment operations
0.21   1.54   0.45   (0.07)   0.48   1.96
Dividends on Preferred Shares from Net Investment
 Income:
(0.04)   (0.08)   (0.14)   (0.12)   (0.06)   (0.02)
Net increase (decrease) in net assets applicable to common
shareholders resulting from investment operations
0.17   1.46   0.31   (0.19)   0.42   1.94
Dividends and Distributions to Shareholders:                      
Net investment income
(0.23)   (0.27)   (0.36)   (0.45)   (0.61)   (0.69)
Return of capital
—   (0.19)   (0.19)   (0.24)   (0.08)   —
Total dividends and distributions to shareholders
(0.23)   (0.46)   (0.55)   (0.69)   (0.69)   (0.69)
Preferred Shares Transactions:                      
Accretion to net asset value, resulting from tender offer of
Auction-Rate Preferred shares
—   —   —   0.09   —   —
Capital change resulting from issuance of Cumulative
Preferred Shares and related offering costs
—   —   —   (0.05)   —   —
Anti-dilutive impact of tender offers
—   —   —   0.09   —   —
Accretion to net asset value from share repurchases
—   —   —   (0.05)   —   —
Net asset value, end of period
$ 5.73   $ 5.79   $ 4.79   $ 5.03   $ 5.87   $ 6.14
Market value, end of period
$ 5.38   $ 5.01   $ 4.54   $ 5.44   $ 6.10   $ 6.17
Total return, net asset value(2), (3)
2.83%   33.51%   6.26%   (2.69)%   7.33%   41.68%
Total return, market value(2), (3)
12.05%   22.81%   (6.98)%   1.14%   10.84%   56.31%
RATIOS/SUPPLEMENTAL DATA:                      
Ratio of net expenses to average net assets(4), (5), (6), (7)
1.35%   1.44%   1.41%   1.53% (8)   1.32%   1.37% (9)
Ratio of total expenses after interest expense to average net
assets(4), (5), (7)
1.48%   1.47%   1.41%   1.53% (8)   1.32%   1.37% (9)
Ratio of net investment income (loss) to average net
assets(4), (5)
4.03%   7.18%   9.48%   9.28%   10.31%   11.46%
Portfolio turnover rate(2)
31%   73%   35%   41%   33%   28%
See Notes to Financial Statements
80

ALLIANZGI CONVERTIBLE & INCOME FUND II
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
  Six Months
Ended
August 31,
2021
(Unaudited) 		  Year Ended February 28/29
  2021   2020   2019   2018   2017
Net assets, end of period (000’s)
$436,192   $440,994   $364,382   $379,901   $440,106   $456,985
Asset coverage, per $25 liquidation preference per share of
cumulative preferred shares
$ 65   $ 65   $ 58   $ 60   $ —   $ —
Asset coverage per $25,000 liquidation preference per share of
auction-rate preferred shares
65,161   65,454   58,421   59,845   65,147   66,691
Cumulative Preferred shares average market value(10)
$ 26.13   $ 25.64   $ 25.39   $ 24.04   $ —   $ —
    
(1) Calculated using average common shares outstanding.
(2) Not annualized for periods less than one year.
(3) Total return on market value is calculated assuming a purchase of common shares on the opening of the first day and sale on the closing of the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s Automatic Reinvestment and Cash Purchase Plan. Total return on market value is not annualized for periods of less than one year. Brokerage commissions that a shareholder may pay are not reflected. Total return on market value does not reflect the deduction of taxes that a shareholder may pay on fund distributions or the sale of fund shares. Total return on net asset value uses the same methodology, but with use of net asset value for the beginning and ending values.
(4) Calculated on the basis of income and expenses applicable to both common and preferred shares relative to average net assets of common shareholders.
(5) Annualized for periods less than one year.
(6) Ratio of net expenses, before interest expense and auction agent fees and commissions, was 1.31%, 1.39%, 1.36%, 1.39%, 1.24% and 1.30% for the period ended August 31, 2021, years ended 2021, 2020, 2019, 2018 and 2017 respectively.
(7) Interest expense relates to participation in the debt financing (See Note 8).
(8) Inclusive of tender offer expenses of 0.03%.
(9) Inclusive of excise tax expense of 0.03% for the year ended February 28, 2017.
(10) Based on daily closing market prices.
See Notes to Financial Statements
81

NOTES TO FINANCIAL STATEMENTS (Unaudited)
August 31, 2021
Note 1. Organization
AllianzGI Artificial Intelligence & Technology Opportunities Fund, AllianzGI Convertible & Income 2024 Target Term Fund, AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II (each, a “Fund” and, collectively, the “Funds”), were organized as Massachusetts business trusts on May 24, 2019, March 21, 2017, January 17, 2003 and April 22, 2003, respectively. The Funds are each organized and registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”), and the rules and regulations thereunder.
Note 2. Significant Accounting Policies
($ reported in thousands)
The Funds are investment companies that follow the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and those differences could be significant.
A. Security Valuation
  Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Funds’ policy is to recognize transfers into or out of Level 3 at the end of the reporting period.
•             Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities).
•             Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
•             Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments).
A description of the valuation techniques applied to a Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:
Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded or, if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.
Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For
82

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that a Fund calculates its net asset value (“NAV”) at the close of regular trading on the New York Stock Exchange (“NYSE”) (generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets. In such cases, the Funds fair value non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, ETFs, and certain indexes, as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.
Debt securities, including convertible bonds, and restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing that considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, activity of the underlying equities, and current day trade information, as well as dealer supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are internally fair valued by the Valuation Committee are generally categorized as Level 3 in the hierarchy.
Listed derivatives, such as options, that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds are valued at NAV. Investments in closed-end funds and ETFs are valued as of the close of regular trading on the NYSE each business day. Each is categorized as Level 1 in the hierarchy.
A summary of the inputs used to value a Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
B. Security Transactions and Investment Income
  Security transactions are recorded on the trade date. Realized gains and losses from the sale of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as a Fund is notified. Interest income is recorded on the accrual basis. Each Fund amortizes premiums and accretes discounts using the effective interest method. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. Conversion premium is not amortized.
83

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
  Dividend income from Real Estate Investment Trusts (“REITs”) and Master Limited Partnerships (“MLPs”) investments is recorded using management’s estimate of the percentage of income included in distributions received from such investments based on historical information and other industry sources. The return of capital portion of the estimate is a reduction to investment income and a reduction in the cost basis of each investment which increases net realized gain (loss) and net change in unrealized appreciation (depreciation). If the return of capital distributions exceed their cost basis, the distributions are treated as realized gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.
C. Income Taxes
  Each Fund is treated as a separate taxable entity. It is the intention of each Fund to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. The Funds may be subject to excise tax based on distributions to shareholders.
  Certain Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests.
  Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Each Fund’s U.S. federal income tax return is generally subject to examination by the Internal Revenue Service for a period of three years after it is filed. State, local and/or non-U.S. tax returns and/or other filings may be subject to examination for different periods, depending upon the tax rules of each applicable jurisdiction.
D. Distributions to Common Shareholders
  The Funds declare distributions to common shareholders monthly. Distributions are recorded by the Funds on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations that may differ from U.S. GAAP.
E. Expenses
  Expenses incurred together by a Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each Fund or an alternative allocation method can be more appropriately used.
  In addition to the net annual operating expenses that a Fund bears directly, the shareholders of a Fund indirectly bear the pro-rata expenses of any underlying mutual funds in which the Fund invests.
F. Convertible Securities
  Certain Funds may invest a portion of their assets in convertible securities. Although convertible securities derive part of their value from that of the securities into which they are convertible, they are not considered derivative financial instruments. However,
84

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  certain of the Funds’ investments in convertible securities include features which render them sensitive to price changes in their underlying securities. The value of structured/synthetic convertible securities can be affected by interest rate changes and credit risks of the issuer. Such securities may be structured in ways that limit their potential for capital appreciation, and the entire value of the security may be at risk of loss depending on the performance of the underlying equity security. Consequently, the Funds are exposed to greater downside risk than traditional convertible securities, but typically still less than that of the underlying stock.
G. Payment In-Kind Securities
  The Funds may invest in payment in-kind securities, which are debt or preferred stock securities that require or permit payment of interest in the form of additional securities. Payment in-kind securities allow the issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater risk than securities that pay interest currently or in cash.
H. When-issued Purchases and Forward Commitments (Delayed Delivery)
  Certain Funds may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by a Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). When-issued or forward commitments enable the Funds to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. Each Fund records when-issued and forward commitment securities on the trade date. Each Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date.
I. Leveraged Loans
  Certain Funds may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Leveraged loans are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the leveraged loan. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. A Fund generally has no right to enforce compliance with the terms of the leveraged loan with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the leveraged loan. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.
  A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans may involve foreign borrowers and investments may be denominated in foreign currencies. Direct
85

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.
  The leveraged loans have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased a Fund may pay an assignment fee. On an ongoing basis, a Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. Prepayment penalty fees are received upon the prepayment of a leveraged loan by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.
J. Repurchase Agreements
  Certain Funds 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 Funds 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 Funds, 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 Funds), which consists primarily of U.S. government obligations and asset-backed securities, is held by the custodian bank for the benefit of the Funds until the maturity of the repurchase agreement. Provisions of the repurchase agreements and the procedures adopted by the Funds 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 Funds may be delayed or limited. The gross values are included in each Funds’ Schedule of Investments. As of August 31, 2021, the Funds did not hold any repurchase agreements.
K. Warrants
  The Funds may receive warrants. Warrants are securities that are usually issued together with a debt security or preferred stock and that give the holder the right to buy a proportionate amount of common stock at a specified price. Warrants may be freely transferable and are often traded on major exchanges. Warrants normally have a life that is measured in years and entitle the holder to buy common stock of a company at a price that is usually higher than the market price at the time the warrant is issued. Warrants may entail greater risks than certain other types of investments. Generally, warrants 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
86

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life of the warrant, the warrant will expire worthless. Warrants may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities. Similarly, the percentage increase or decrease in the value of an equity security warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may relate to the purchase of equity or debt securities. Debt obligations with warrants attached to purchase equity securities have many characteristics of convertible securities and their prices may, to some degree, reflect the performance of the underlying stock. Debt obligations also may be issued with warrants attached to purchase additional debt securities at the same coupon rate. A decline in interest rates would permit a Fund to sell such warrants at a profit. If interest rates rise, these warrants would generally expire with no value.
Note 3. Investment Advisory Fees and Related Party Transaction
($ reported in thousands)
A. Investment Adviser
  Virtus Investment Advisers, Inc. (“VIA” or the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners (“Virtus”), became the Funds’ investment adviser effective February 1, 2021 (except for AllianzGI Artificial Intelligence & Technology Opportunities Fund which was effective February 26, 2021). The Adviser manages the Funds’ investment programs and general operations of the Funds, including oversight of the Funds’ subadviser.
  As compensation for its services to the Funds, the Adviser is entitled to a fee, which is calculated daily and paid monthly based upon the following annual rates as a percentage of the average daily total managed assets of each Fund:
    
Fund   Advisory Fee  
AllianzGI Artificial Intelligence & Technology Opportunities Fund
  1.25%  
AllianzGI Convertible & Income 2024 Target Term Fund
  0.75%  
AllianzGI Convertible & Income Fund
  0.70%  
AllianzGI Convertible & Income Fund II
  0.70%  
AllianzGI Artificial Intelligence & Technology Opportunities Fund and AllianzGI Convertible & Income 2024 Target Term Fund define total managed assets as the total assets of each Fund (including assets attributable to any borrowings, issued debt securities or preferred shares that may be outstanding, reverse repurchase agreements and dollar rolls) minus accrued liabilities (other than liabilities representing borrowings, issued debt securities, reverse repurchase agreements and dollar rolls). AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II define total managed assets as the total assets of each Fund (including any assets attributable to any Preferred Shares or other forms of leverage of the Fund that may be outstanding) minus accrued liabilities (other than liabilities representing leverage).
B. Subadvisers
  Allianz Global Investors U.S. LLC (the “Subadviser”) is the subadviser to the Funds effective February 1, 2021 (except for AllianzGI Artificial Intelligence & Technology
87

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  Opportunities Fund which was effective February 26, 2021). The Subadviser manages the investments of each Fund, for which it is paid a fee by the Adviser.
C. Expense Limitations
  The Adviser has contractually agreed to limit each Fund’s annual total operating expenses, subject to the exclusions listed below, so that such expenses do not exceed, on an annualized basis, the following respective percentages of average daily net assets through February 1, 2023. Following the contractual period, the Adviser may discontinue these expense reimbursement arrangements at any time. The reimbursements are accrued daily and received monthly.
    
Fund   Expense Limitation
AllianzGI Artificial Intelligence & Technology Opportunities Fund
  0.09  %
AllianzGI Convertible & Income 2024 Target Term Fund
  0.19  
AllianzGI Convertible & Income Fund
  0.13  
AllianzGI Convertible & Income Fund II
  0.15  
The exclusions include investment advisory fees paid to VIA, interest, any other fees or expenses relating to financial leverage, preferred shares (such as dividends on preferred shares, auction agent fees and commissions and rating agency fees) or borrowing (such as interest, commitment, amendment and renewal expenses on credit or redemption facilities), taxes, extraordinary, unusual or infrequently occurring expenses (such as litigation), costs related to share offerings, brokerage commissions, expenses incurred in connection with any merger or reorganization, underlying fund expenses and dividend expenses, if any (each expressed as a percentage of average daily net assets attributable to common shares).
D. Expense Recapture
  Under certain conditions, the Adviser may recapture operating expenses reimbursed under these arrangements within three years after the date on which such amounts were incurred. A Fund must pay its ordinary expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitations or, if none, the expense limitation in effect at the time of the reimbursement. All or a portion of the following Adviser reimbursed expenses may be recaptured by the fiscal year ending February 28/29:
    
    Expiration    
Fund   2024   2025   Total
AllianzGI Artificial Intelligence & Technology Opportunities Fund
  $ 22   $ 430   $ 452
AllianzGI Convertible & Income 2024 Target Term Fund
  25   112   137
AllianzGI Convertible & Income Fund
  107   397   504
AllianzGI Convertible & Income Fund II
  97   294   391
E. Administration Services
  Virtus Fund Services, LLC (“VFS”), an indirect, wholly-owned subsidiary of Virtus, serves as administrator to the Funds effective February 1, 2021 (except for AllianzGI Artificial Intelligence & Technology Opportunities Fund which was effective February 26, 2021).
88

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  For the services provided by the administrator under the Administration Agreement, the Funds pay the administrator an asset-based fee calculated on each Fund’s average daily Managed Assets. This fee is calculated daily and paid monthly.
  For the six months (“period”) ended August 31, 2021, the Funds incurred administration fees totaling $1,464 which are included in the Statements of Operations within the line item “Administration, accounting and custody fees.”
F. Trustees’ Fees
  For the period ended August 31, 2021, the Funds incurred Trustees’ fees totaling $206 which are included in the Statements of Operations within the line item “Trustees’ fees and expenses”
G. Investments in Affiliates
  The Funds are permitted to purchase assets from or sell assets to certain related affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of assets by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers comply with Rule 17a-7 under the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. During the period ended August 31, 2021, the Funds did not engage in any transactions pursuant to Rule 17a-7 under the 1940 Act.
  Outside of Rule 17a-7 transactions, other investments with affiliated issuers are separately reported in this footnote. An affiliated issuer includes any company in which the Fund held 5% or more of a company’s outstanding voting shares at any point during the period, as well as other circumstances where an investment adviser or subadviser to the Fund is deemed to exercise, directly or indirectly, a certain level of control over the company. A summary of the Fund’s total long-term and short-term purchases and sales of the securities of affiliated issuers during the period ended August 31, 2021, is as follows:
    
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares
AllianzGI Convertible & Income 2024 Target Term Fund              
Common Stocks—0.6%              
CCF Holdings LLC(1),(2)
$ —   $2,614   $(—) (3)   $— (3)   $(1,683)   $ 931   1,369,231
CCF Holdings LLC(1),(2)
7   —   —   —   200   200   293,320
  $ 7(3)   $2,614   $(—) (3)   $— (3)   $(1,483)   $1,131    
89

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares
AllianzGI Convertible & Income 2024 Target Term Fund              
Leveraged Loans—0.2%              
Music Technology Holdings LLC PIK(1),(4),(5),(6)
$326   $ 13   $ —   $—   $ —   $ 339   339,331
Total $333   $2,627   $(—)   $—   $(1,483)   $1,470    
    
(1) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(2) Non-income producing.
(3) Amount is less than $500.
(4) A member of the Fund’s portfolio management team is a member of the board of directors of LiveStyle, Inc. The Fund’s aggregate value of investments in LiveStyle, Inc. and its subsidiary Music Technology Holdings LLC represents 0.18% of net assets.
(5) Security is fixed rate.
(6) 100% of the income received was in cash.
    
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares
AllianzGI Convertible & Income Fund              
Common Stocks—1.0%              
CCF Holdings LLC(1),(2)
$ —(3)   $23,066   $(—) (3)   $(—) (3)   $(17,756)   $ 5,310   7,808,320
CCF Holdings LLC(1),(2)
—   —   —   —   598   598   879,959
CCF Holdings LLC, Class B
— (3)   —   —   —   (—) (3)   —   —
LiveStyle, Inc.(1),(2),(4),(5)
— (3)   —   —   —   —   — (3)   90,407
  $ —(3)   $23,066   $(—) (3)   $(—) (3)   $(17,158)   $ 5,908    
Preferred Stocks—1.5%              
LiveStyle, Inc. Series A(1),(2),(4),(5)
537   —   —   —   34   571   3,554
90

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares
AllianzGI Convertible & Income Fund              
LiveStyle, Inc. Series B(1),(2),(4),(5)
$7,657   $ —   $ —   $ —   $ —   $ 7,657   76,572
  $8,194   $ —   $ —   $ —   $ 34   $ 8,228    
Leveraged Loans—0.3%              
Music Technology Holdings LLC PIK(1),(4),(6),(7)
$1,776   $ 72   $ —   $ —   $ —   $ 1,848   1,848,049
Total $9,970   $23,138   $(—)   $(—)   $(17,124)   $15,984    
    
(1) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(2) Non-income producing.
(3) Amount is less than $500.
(4) A member of the Fund’s portfolio management team is a member of the board of directors of LiveStyle, Inc. The Fund’s aggregate value of investments in LiveStyle, Inc. and its subsidiary Music Technology Holdings LLC represents 1.08% of net assets.
(5) Security is restricted from resale.
(6) Security is fixed rate.
(7) 100% of the income received was in cash.
    
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares
AllianzGI Convertible & Income Fund II              
Common Stocks—1.1%              
CCF Holdings LLC(1),(2)
$ —(3)   $17,197   $(—) (3)   $(—) (3)   $(12,867)   $ 4,330   6,367,079
CCF Holdings LLC(1),(2)
—   —   —   —   598   598   879,959
CCF Holdings LLC, Class B
— (3)   —   —   —   (—) (3)   —   —
LiveStyle, Inc.(1),(2),(4),(5)
— (3)   —   —   —   —   — (3)   90,407
  $ —(3)   $17,197   $(—) (3)   $(—) (3)   $(12,269)   $ 4,928    
91

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares
AllianzGI Convertible & Income Fund II              
Preferred Stocks—1.9%              
LiveStyle, Inc. Series A(1),(2),(4),(5)
$ 537   $ —   $ —   $ —   $ 34   $ 571   3,554
LiveStyle, Inc. Series B(1),(2),(4),(5)
7,657   —   —   —   —   7,657   76,572
  $8,194   $ —   $ —   $ —   $ 34   $ 8,228    
Leveraged Loans—0.3%              
Music Technology Holdings LLC PIK(1),(4),(6),(7)
$1,365   $ 55   $ —   $ —   $ —   $ 1,420   1,419,970
Total $9,559   $17,252   $(—)   $(—)   $(12,235)   $14,576    
    
(1) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(2) Non-income producing.
(3) Amount is less than $500.
(4) A member of the Fund’s portfolio management team is a member of the board of directors of LiveStyle, Inc. The Fund’s aggregate value of investments in LiveStyle, Inc. and its subsidiary Music Technology Holdings LLC represents 2.21% of net assets.
(5) Security is restricted from resale.
(6) Security is fixed rate.
(7) 100% of the income received was in cash.
H. Trustee Deferred Compensation Plan
  The Trustees do not currently receive any pension or retirement benefits from the Funds. In calendar year 2018 and certain prior periods, the Funds maintained a deferred compensation plan pursuant to which each Independent Trustee had the opportunity to elect not to receive all or a portion of his or her fees from the respective Fund on a current basis, but instead to receive in a subsequent period chosen by the Independent Trustee an amount equal to the value of such compensation if such compensation had been invested in one or more series of Virtus Investment Trust (formerly known as Allianz Funds) and Virtus Strategy Trust (formerly known as Allianz Funds Multi-Strategy Trust) selected by the Independent Trustees from and after the normal payment dates for such compensation. The deferred compensation program was closed to new deferrals effective January 1, 2019, and all Trustee fees earned with respect to service in calendar years 2019 and 2020 were paid in cash, on a current basis. The Funds still have obligations with respect to Independent Trustee fees deferred in 2018 and in prior periods, and will continue to have such obligations until all deferred Trustee fees are paid out pursuant to the terms of the deferred compensation plan.
92

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
  Effective March 2021, each Fund provides a new deferred compensation plan (“New Plan”) for its Trustees who receive compensation from the Funds. Under the New Plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Funds, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Prepaid expenses and other assets” in the Statements of Assets and Liabilities at August 31, 2021.
Note 4. Purchases and Sales of Securities
($ reported in thousands)
Purchases and sales of securities (excluding short-term securities) during the period ended August 31, 2021, were as follows:
  Purchases   Sales
AllianzGI Artificial Intelligence & Technology Opportunities Fund
$312,710   $364,189
AllianzGI Convertible & Income 2024 Target Term Fund
84,814   69,307
AllianzGI Convertible & Income Fund
296,816   269,055
AllianzGI Convertible & Income Fund II
227,550   206,876
There were no purchases or sales of long-term U.S. Government and agency securities during the period ended August 31, 2021.
Note 5. Federal Income Tax Information
($ reported in thousands)
At August 31, 2021, the approximate aggregate cost basis and the unrealized appreciation (depreciation) of investments and other financial instruments held by the Funds for federal income tax purposes were as follows:
Fund   Federal
Tax Cost 		  Unrealized
Appreciation 		  Unrealized
(Depreciation) 		  Net Unrealized
Appreciation
(Depreciation)
Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund
  $ 873,529   $ 210,817   $ (8,098)   $ 202,719
AllianzGI Convertible & Income 2024 Target Term Fund
  267,385   6,817   (7,134)   (317)
AllianzGI Convertible & Income Fund
  864,413   123,927   (50,834)   73,093
AllianzGI Convertible & Income Fund II
  650,789   95,128   (37,932)   57,196
The following Fund has capital loss carryforwards available to offset future realized capital gains, if any, to the extent permitted by the Code. Net capital losses are carried forward without expiration and generally retain their short-term and/or long-term tax
93

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
character, as applicable. The Funds’ capital loss carryovers as of February 28, 2021 were as follows:
       
Fund   Short-Term   Long-Term
AllianzGI Convertible & Income Fund
  $47,379   $186,285
AllianzGI Convertible & Income Fund II
  36,331   149,200
Capital losses realized after October 31 and certain late year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended February 28, 2021, the following Funds deferred qualified late year losses as follows:
  Late Year
Ordinary
Losses
Deferred 		  Capital
Loss
Deferred
AllianzGI Artificial Intelligence & Technology Opportunities Fund
$ 258   $ —
AllianzGI Convertible & Income Fund
—   200
Note 6. Credit and Market Risk and Asset Concentration
Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on a Fund and its investments, including hampering the ability of the Fund’s portfolio manager(s) to invest the Fund’s assets as intended.
In July 2017, the head of the United Kingdom Financial Conduct Authority announced the intention to phase out the use of LIBOR by the end of 2021. However, subsequent announcements by the FCA, the LIBOR administrator and other regulators indicate that it is possible that certain LIBORs may continue beyond 2021 and certain of the most widely used LIBORs may continue until mid-2023. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The expected discontinuation of LIBOR could have a significant impact on the financial markets and may present a material risk for certain market participants, including the Funds. Abandonment of or modifications to LIBOR could lead to significant short- and long-term uncertainty and market instability. The risks associated with this discontinuation and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. It remains uncertain how such changes would be implemented and the effects such changes would have on the Funds, issuers of instruments in which the Funds invest, and the financial markets generally.
Certain Funds may invest a high percentage of their assets in specific sectors of the market in the pursuit of their investment objectives. Fluctuations in these sectors of concentration may have a greater impact on a Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors.
Each of the Funds leverages its portfolio through preferred shares, securities lending and/or margin loan financing. While leverage presents opportunities for increasing the
94

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
each Fund’s total return, it also has the effect of potentially increasing losses. Accordingly, any event which adversely affects the value of an investment held by the each Fund would be magnified to the extent the each Fund is leveraged.
High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or subadviser to accurately predict risk.
Note 7. Auction-Rate Preferred Shares
AllianzGI Convertible & Income Fund has 1,894 shares of Auction-Rate Preferred Shares Series A, 1,779 shares of Auction-Rate Preferred Shares Series B, 1,909 shares of Auction-Rate Preferred Shares Series C, 1,842 shares of Auction-Rate Preferred Shares Series D and 1,507 shares of Auction-Rate Preferred Shares Series E outstanding, each with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.
AllianzGI Convertible & Income Fund II has 1,296 shares of Auction-Rate Preferred Shares Series A, 1,512 shares of Auction-Rate Preferred Shares Series B, 1,239 shares of Auction-Rate Preferred Shares Series C, 1,156 shares of Auction-Rate Preferred Shares Series D and 1,298 shares of Auction-Rate Preferred Shares Series E outstanding, each with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.
Dividends on the Auction-Rate Preferred Shares are accumulated daily at an annual rate that is typically re-set every seven days. Distributions of net realized capital gains, if any, are paid annually.
For the period ended August 31, 2021, the annualized dividend rates paid with respect to the Auction-Rate Preferred shares of AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II ranged from:
  High   Low   At August 31,
2021
Series A
0.16%   0.06%   0.12%
Series B
0.16   0.08   0.12
Series C
0.16   0.08   0.14
Series D
0.16   0.08   0.10
Series E
0.16   0.08   0.12
AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II are subject to certain limitations and restrictions while Auction-Rate Preferred Shares are outstanding. Failure to comply with these limitations and restrictions could preclude the Funds from declaring or paying any dividends or distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of Auction-Rate Preferred Shares at their liquidation preference plus any accumulated, unpaid dividends.
Auction-Rate Preferred shareholders, who are entitled to one vote per share, generally vote together with the common shareholders but vote separately as a class to elect two
95

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
Trustees and on certain matters affecting the rights of the Auction-Rate Preferred Shares. On matters where preferred shareholders vote separately from common shareholders, including the election of the preferred shares trustees, preferred shareholders are entitled to one vote per $25.00 in liquidation preference per share.
Since mid-February 2008, holders of auction-rate preferred shares (“ARPS”) issued by the Funds have been directly impacted by a lack of liquidity, which has similarly affected ARPS holders in many of the nation’s closed-end funds. Since then, regularly scheduled auctions for the ARPS issued by the Funds have consistently “failed” because of insufficient demand (bids to buy shares) to meet the supply (shares offered for sale) at each auction.
In a failed auction, ARPS holders cannot sell all, and may not be able to sell any, of their shares tendered for sale. While repeated auction failures have affected the liquidity for ARPS, they do not constitute a default or automatically alter the credit quality of the ARPS, and ARPS holders have continued to receive dividends at the defined “maximum rate”, which for the Funds is equal to the 7-day “AA” Composite Commercial Paper Rate multiplied by a minimum of 150%, from March 1, 2020 to July 19, 2020 and by a minimum of 200% from July 20, 2020 to February 28, 2021 depending on the credit rating of the ARPS. The maximum rate is a function of short-term interest rates and typically higher than the rate that would have otherwise been set through a successful auction.
On July 20, 2020, Moody’s Investors Service downgraded each Fund’s ARPS ratings to A1 from Aa3. As a result, the applicable multiplier for calculating the maximum rate increased from 150% to 200% beginning on that date. If the Funds’ ARPS continue to fail and the “maximum rate” payable on the ARPS rises as result of changes in short-term interest rates, returns for the Funds’ common shareholders could be adversely affected.
Note 8.  Liquidity Facility and Securities Lending
($ reported in thousands)
Prior to June 14, 2021, each of the Funds had entered into a liquidity facility (each a “SSB Facility” and together the “SSB Facilities”) with State Street Bank & Trust Company (“State Street”). The Funds pledged their assets as collateral to secure obligations under the SSB Facilities. The Funds retained the risks and rewards of the ownership of assets pledged to secure obligations under the SSB Facilities. As part of the SSB Facilities, the Funds made assets available for securities lending transactions with State Street acting as the Funds’ authorized agent for these transactions. All transactions initiated through State Street were required to be secured with cash collateral received from the securities borrower (the “Borrower”). Securities lending transactions were secured with cash collateral in amounts no less than 100% of the market value of the securities loaned in these transactions. Cash received by State Street from securities lending was credited against borrowings under the SSB Facilities. Upon return of securities by the Borrower, State Street would return the cash collateral to the Borrower, as applicable, which eliminated the credit against the borrowings and caused the drawdowns under the SSB Facilities to increase by the amounts returned. Borrowing fees on the loaned securities were retained by State Street.
96

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
State Street would have indemnified the Funds for certain losses that would have arisen if the Borrower failed to return securities when due. With respect to securities lending transactions, upon a default of the securities borrower, State Street would have used the collateral received from the Borrower to purchase replacement securities of the same issue, type, class and series. If such collateral was insufficient, the purchase of replacement securities would have been made at State Street’s sole cost and expense. Although the risk of the loss of the securities was mitigated by receiving collateral from the Borrower and through State Street indemnification, the Funds could have experienced a delay in recovering securities or could have experienced a lower than expected return if the Borrower failed to return the securities on a timely basis.
State Street would fund drawdowns under a SSB Facility through reverse repurchase agreements in a manner and on terms that were substantially similar to the securities loans described above. None of the Funds’ borrowings during the reporting period were funded though reverse repurchase agreements. Prior to June 14, 2021, the maximum capital commitment amounts under the respective SSB Facilities were $125,000, $71,000, $34,000 and $0, respectively, for AllianzGI Artificial Intelligence & Technology Opportunities Fund, AllianzGI Convertible & Income 2024 Target Term Fund, AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II. Interest on amounts drawn under each SSB Facility was charged at a daily rate equal to the U.S. 3-month LIBOR rate plus 0.55%, with a commitment fee of 0.15% payable on the maximum capital commitment amount less the amount drawn in any month when the amount drawn was less than 85% of the commitment amount on any day. Loan interest expense and committment fees are included in the Funds’ Statements of Operations.
For the period March 1, 2021 through June 13, 2021, the average borrowings, average interest rate, and interest expense under the SSB Facilities were as follows:
Fund   Average
Borrowings 		  Weighted
Average
Interest Rate 		  Loan Interest
Expense 		  Commitment
Fees
AIO
  $30,000   0.83 %   $ 72   $42
CBH
  69,700   0.83   168   —
NCV
  28,852   0.83   70   —
Effective June 14, 2021, each of the Funds entered into a Master Margin Loan Agreement (“MMLA”) and a Securities Lending Authorization Agreement (“SLAA”), (together the “BNYM Facilities”) with The Bank of New York Mellon (“BNYMellon”). Under the MMLA the Funds pledge their assets as collateral to secure obligations but retain the risks and rewards of the ownership of assets pledged to secure such obligations.
Under the SLAA, the Funds may loan securities to qualified brokers through a securities lending agency agreement with BNYMellon. Under the securities lending policy, when lending securities a Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral consists of cash which is invested in a short-term money market fund and/or released to each Fund to be used for liquidity purposes in conjunction with the MMLA. Cash received from securities lending is first credited against borrowings under the MMLA. Upon return of
97

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
securities by the Borrower, BNYMellon returns the cash collateral to the Borrower, as applicable, which eliminates the credit against the borrowings and causes the drawdowns under the MMLA to increase by the amounts returned. The securities lending program is subject to the same limits and interest rate structure as the MMLA. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged/paid by BNYMellon for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral.
Securities lending transactions are entered into by each Fund under the SLAA which permit the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
At August 31, 2021, the securities loaned were subject to a SLAA on a net payment basis as follows:
Fund   Value of
Securities
on Loan 		  Cash
Collateral
Received(1) 		  Net
Amount(2)
AIO
  $ 40,835   $ 40,835   $ —
CBH
  19,409   19,409   —
NCV
  35,567   35,567   —
(1) Collateral received in excess of the market value of securities on loan is not presented in this table. The cash collateral received in connection with securities lending transactions has been used for the purchase of securities as disclosed in the Fund’s Schedule of Investments.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
At August 31, 2021, the maximum capital commitment amounts under the MMLA were $75,000, $71,000, $34,000 and $0, respectively, for AllianzGI Artificial Intelligence & Technology Opportunities Fund, AllianzGI Convertible & Income 2024 Target Term Fund, AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II. Interest on amounts drawn under each MMLA is charged at a daily rate and a commitment fee is paid on the undrawn amounts as agreed to in the MMLA. As of August 31, 2021, AllianzGI Artificial Intelligence & Technology Opportunities Fund, AllianzGI Convertible & Income 2024 Target Term Fund and AllianzGI Convertible & Income Fund used cash collateral received from the SLAA to purchase long term investments and/or invest the amount in a short-term money market fund. These investments are included in the line item “Investments, at value” on the Statements of Assets and Liabilities. The securities on loan under the SLAA and securities pledged as collateral under the MMLA are reflected on the Schedule of Investments. Any amounts payable under the MMLA/SLAA are reflected in the Statements of Assets and Liabilities as ’Loan Payable’ and/or ’Collateral on securities loaned.’ The interest rate charged at August 31, 2021, was 0.42%. The expense is included in the Funds’ Statements of Operations under “Loan interest”.
98

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
For the period June 14, 2021 through August 31, 2021, the outstanding borrowings, average borrowings, average interest rate and interest expense under the BNYM Facilities were as follows:
Fund   Outstanding
Borrowings 		  Average
Borrowings 		  Weighted
Average
Interest Rate 		  Loan Interest
Expense
AIO
  $ 30,000   $30,000   0.86%   $57
CBH
  69,700   69,700   0.49   75
NCV
  28,852   28,852   0.53   33
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of August 31, 2021, for the Funds:
Fund   Securities Lending Transactions   Overnight
and
Continuous
AIO
  Money Market Mutual Fund   $12,019
CBH
  Money Market Mutual Fund   18,750
NCV
  Money Market Mutual Fund   7,972
Note 9. Common Shares Issued
Each of AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II has a currently effective “shelf” registration statement pursuant to which it may offer, from time to time in one or more offerings, up to $120 million (in the case of AllianzGI Convertible & Income Fund) and $90 million (in the case of AllianzGI Convertible & Income Fund II) in common shares on terms to be determined at the time of the offering. The Board has also approved underwriting arrangements for such potential offerings. However, as of the date of this report, neither Fund had initiated such an offering and it is uncertain whether or when either Fund will proceed with such an offering. AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II both incurred deferred offering costs related to the offering, which, if any, will be charged to capital upon the completion of the offering or charged to expense if the offering is not completed.
Note 10. Cumulative Preferred Shares
On September 11, 2018, AllianzGI Convertible & Income Fund II issued 4,360,000 shares of 5.50% Series A Cumulative Preferred Shares with an aggregate liquidation value of $109,000,000 (“NCZ Series A Preferred Shares”). The shares are perpetual, non-callable for a period of five years and have a liquidation preference of $25.00 per share. Commencing September 11, 2023, and thereafter, to the extent permitted by the 1940 Act, and Massachusetts law, AllianzGI Convertible & Income Fund II may at any time, upon notice of redemption, redeem the NCZ Series A Preferred Shares in whole or in part at the liquidation preference per share plus accumulated unpaid dividends through the date of redemption. Dividends are paid at an annual rate of 5.50% on a quarterly basis, and commenced on October 1, 2018, with the first such payment pro-rated from the date of issuance.
99

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
On September 20, 2018, AllianzGI Convertible & Income Fund issued 4,000,000 shares of 5.625% Series A Cumulative Preferred Shares with an aggregate liquidation value of $100,000,000 (“NCV Series A Preferred Shares”). The shares are perpetual, non-callable for a period of five years and have a liquidation preference of $25.00 per share. Commencing September 20, 2023, and thereafter, to the extent permitted by the 1940 Act, and Massachusetts law, AllianzGI Convertible & Income Fund may at any time, upon notice of redemption, redeem the NCV Series A Preferred Shares in whole or in part at the liquidation preference per share plus accumulated unpaid dividends through the date of redemption. Dividends are paid at an annual rate of 5.625% on a quarterly basis, and commenced on October 1, 2018, with the first such payment pro-rated from the date of issuance. In conjunction with Fitch Ratings publishing revised ratings criteria, which included new, lower ratings caps for closed-end funds, the Series A Cumulative Preferred Shares of AllianzGI Convertible & Income Fund II and AllianzGI Convertible & Income Fund were downgraded from a long-term rating of “AA” to “A” on May 21, 2021.
On December 16, 2020, the Board of Trustees of the AllianzGI Convertible & Income Fund and AllianzGI Convertible & Income Fund II approved a Repurchase Plan (“Repurchase Plan”) with respect to the outstanding series A cumulative preferred shares (“CPS”) issued by the Funds. Each Fund has access to a short-term revolving credit facility (as outlined in Note 8). Pursuant to the Repurchase Plan, the Funds would repurchase its CPS in the open market on any trading day when (i) a Fund’s CPS are trading at a market price at or below their liquidation preference ($25.00 per share), provided the current rate of interest on its Liquidity Facility is less than or equal to 5.00% or (ii) a Fund’s CPS are trading at a market price which represents a premium of up to 1.00% above their liquidation preference (up to $25.25) provided the current rate of interest on its Liquidity Facility is less than or equal to 3.00% for AllianzGI Convertible & Income Fund or less than or equal to 2.75% for AllianzGI Convertible & Income Fund II, subject, in each case, to the terms and conditions of the Repurchase Plan and input from the portfolio management team as to market conditions and other factors. Any repurchases will be made consistently with the requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. On each day that shares are repurchased under the Repurchase Plan, a Fund may repurchase its shares in an amount up to 25% of the average daily trading volume of the CPS over the trailing four week period. It is currently expected that each Fund would borrow under its respective Liquidity Facility to replace any leverage reduced through the Repurchase Plan.
Note 11.  Indemnifications
Under the Funds’ organizational documents, the Funds, Trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide a variety of indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds and that have not occurred. However, the Funds have not had prior claims or losses pursuant to these arrangements and expect the risk of loss to be remote.
100

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
Note 12. Capital Transactions
At August 31, 2021, each Fund has one class of common stock with $0.00001 par value of which unlimited shares are authorized.
Note 13. Restricted Securities
Restricted securities are not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category. Each Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities. The following Funds held securities that were considered to be restricted at August 31, 2021:
Investment   Date of
Acquisition 		  Cost   Value   Percentage of
Net Assets
AllianzGI Convertible & Income Fund        
LiveStyle, Inc.   2/2/16—11/30/16   $ —   $ —   0.0%
LiveStyle, Inc. Series A   2/3/16—10/31/16   340   571   0.1
LiveStyle, Inc. Series B   2/3/16—11/30/16   7,507   7,657   1.3
Affinion Group Holdings   11/9/15—11/12/15   3,080   —   0.0
    
Investment   Date of
Acquisition 		  Cost   Value   Percentage of
Net Assets
AllianzGI Convertible & Income Fund II        
LiveStyle, Inc.   2/3/16—11/30/16   $ —   $ —   0.0%
LiveStyle, Inc. Series A   2/3/16—11/1/16   348   571   0.1
LiveStyle, Inc. Series B   2/3/16—11/30/16   7,507   7,657   1.8
Affinion Group Holdings   11/9/15—11/12/15   2,371   —   0.0
Note 14. Regulatory Matters and Litigation
From time to time, the Funds, the Adviser, the subadvisers, and/or their respective affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, and laws and regulations affecting their activities. At this time, the Funds and the Adviser believe that the outcomes of such matters are not likely, either individually, or in the aggregate, to be material to these financial statements.
Note 15. Recent Accounting Pronouncement
In March 2020, the FASB issued Accounting Standards Update, No. 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.
101

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
August 31, 2021
Note 16. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available for issuance, and has determined that the following are the only subsequent events requiring recognition or disclosure in these financial statements.
On September 1, 2021, the following monthly distributions were declared to common shareholders, payable October 1, 2021 to shareholders of record on September 13, 2021, with an ex-date of September 10, 2021:
AllianzGI Artificial Intelligence & Technology Opportunities Fund $0.1250 per share
AllianzGI Convertible & Income 2024 Target Term Fund $0.0460 per share
AllianzGI Convertible & Income Fund $0.04250 per share
AllianzGI Convertible & Income Fund II $0.03750 per share
On September 1, 2021, the following monthly distributions were declared to cumulative preferred shareholders, payable September 30, 2021 to shareholders of record on September 13, 2021:
AllianzGI Convertible & Income Fund $0.3515625 per share
AllianzGI Convertible & Income Fund II $0.34375 per share
On October 1, 2021, the following monthly distributions were declared to shareholders, payable November 1, 2021 to shareholders of record on October 12, 2021, with an ex-date of October 8, 2021:
AllianzGI Artificial Intelligence & Technology Opportunities Fund $0.1250 per share
AllianzGI Convertible & Income 2024 Target Term Fund $0.0460 per share
AllianzGI Convertible & Income Fund $0.04250 per share
AllianzGI Convertible & Income Fund II $0.03750 per share
102

CERTIFICATION
The Funds file the required annual Chief Executive Officer (“CEO”) certification regarding compliance with the NYSE’s listing standards no more than 30 days after each annual shareholder meeting for the Funds. The Funds have included the certifications of the Funds’ CEO and Principal Financial Officer required by Section 302 of the Sarbanes-Oxley Act in the Fund’s Form N-CSR filed with the SEC for the period of this report.
KEY INFORMATION
Shareholder Relations: 1-866-270-7788
For general information and literature, as well as updates on net asset value, share price, major industry groups and other key information.
REINVESTMENT PLAN
The Automatic Reinvestment and Cash Purchase Plan (the “Plan”) offers shareholders a convenient way to acquire additional shares of the Funds. Registered holders will be automatically placed in the Plan and may opt out by calling Shareholder Relations at the number listed above. If shares are held at a brokerage firm, contact your broker about participation in the Plan.
REPURCHASE OF SECURITIES
Notice is hereby given in accordance with Section 23(c) of the 1940 Act that the Funds may from time to time purchase its shares of common stock in the open market when shares are trading at a discount from their net asset value.
PROXY VOTING INFORMATION (FORM N-PX)
The subadviser votes proxies relating to portfolio securities in accordance with procedures that have been approved by each Fund’s Board. You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-866-270-7788. This information is also available through the SEC’s website at https://www.sec.gov.
PORTFOLIO HOLDINGS INFORMATION
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form NPORT-P. Form NPORT-P is available on the SEC’s website at https://www.sec.gov.
103

Results of Annual Meeting of Shareholders (Unaudited)
Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund
Virtus AllianzGI Convertible & Income 2024 Target Term Fund
Virtus AllianzGI Convertible & Income Fund
Virtus AllianzGI Convertible & Income Fund II
The Funds held their Annual Meeting of Shareholders on July 8, 2021. Shareholders voted as indicated below:
Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund
Election of Trustees   Votes For   Votes Withheld
F. Ford Drummond   27,446,376   2,699,742
James S. MacLeod   28,050,812   2,095,306
Philip R. McLoughlin   27,465,169   2,680,949
George R. Aylward*   28,093,521   2,052,597
Based on the foregoing, Messrs. Drummond and MacLeod were re-elected and Messrs. Aylward and McLoughlin were elected to the Board of Trustees. The Fund’s other Trustees who continue in office are Sarah E. Cogan, Deborah A DeCotis, Hans W. Kertess, William B. Ogden, IV, Alan Rappaport, and Davey S. Scoon.
*Interested Trustee
Virtus AllianzGI Convertible & Income 2024 Target Term Fund
Election of Trustees   Votes For   Votes Withheld
Hans W. Kertess   15,840,083   131,351
William B. Ogden, IV   15,836,130   135,304
Alan Rappaport   15,859,150   112,284
Davey S. Scoon   15,846,616   124,818
George R. Aylward*   15,841,607   129,827
Based on the foregoing, Messrs. Kertess, Ogden, Rappaport and Scoon were re-elected and Mr. Aylward was elected to the Board of Trustees. The Fund’s other Trustees who continue in office are Sarah E. Cogan, Deborah A DeCotis, F. Ford Drummond, and James S. MacLeod.
*Interested Trustee
104

Virtus AllianzGI Convertible & Income Fund
Election of Trustees   Votes For   Votes Withheld
Deborah A. DeCotis   67,357,305   2,309,445
James S. MacLeod   67,691,801   1,974,949
George R. Aylward*   67,834,256   1,832,494
F. Ford Drummond   3,351,462   67,483
Based on the foregoing, Ms. DeCotis and Messrs. Drummond and MacLeod were re-elected and Mr. Aylward was elected to the Board of Trustees. The Fund’s other Trustees who continue in office are Sarah E. Cogan, Hans W. Kertess, William B. Ogden, IV, Alan Rappaport, and Davey S. Scoon.
*Interested Trustee
Virtus AllianzGI Convertible & Income Fund II
Election of Trustees   Votes For   Votes Withheld
Hans W. Kertess   53,199,995   5,983,185
James S. MacLeod   53,308,828   5,874,352
George R. Aylward*   55,509,280   3,673,900
Philip R. McLoughlin   55,457,229   3,725,951
F. Ford Drummond   2,564,931   320,274
Based on the foregoing, Messrs. Drummond, Kertess and MacLeod were re-elected and Messrs. Aylward and McLoughlin were elected to the Board of Trustees. The Fund’s other Trustees who continue in office are Sarah E. Cogan, Deborah A DeCotis, William B. Ogden, IV, Alan Rappaport, and Davey S. Scoon.
*Interested Trustee
105

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Trustees
Alan Rappaport, Chairman of the Board of Trustees
George R. Aylward
Sarah E. Cogan
Deborah A. DeCotis
F. Ford Drummond
Hans W. Kertess
James S. MacLeod
Philip R. McLoughlin, Trustee, AIO and NCZ; Advisory Member, CBH and NCV
William B. Ogden, IV
Davey S. Scoon
Brian T. Zino, Advisory Member
Officers
George R. Aylward, President and Chief Executive Officer
Peter J. Batchelar, Senior Vice President
Angela Borreggine, Vice President, Chief Legal Officer, Counsel and Secretary
W. Patrick Bradley, Executive Vice President, Chief Financial Officer and Treasurer
Nancy J. Engberg, Senior Vice President and Chief Compliance Officer
Julia R. Short, Senior Vice President
Richard W. Smirl, Executive Vice President
Investment Adviser
Virtus Investment Advisers, Inc.
One Financial Plaza
Hartford, CT 06103-2608
Administrator
Virtus Fund Services, LLC
One Financial Plaza
Hartford, CT 06103
Transfer Agent, Dividend Paying Agent and Registrar
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219 
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286-1048
Legal Counsel
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, MA 02199
How to Contact Us
Shareholder Services 1-800-254-5197 or closedendfunds@virtus.com
Website Virtus.com
Important Notice to Shareholders
The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.

P.O. Box 9874
Providence, RI 02940-8074
For more information about Virtus Closed-End Funds,
please contact us at 1-800-254-5197 or closedendfunds@virtus.com, or visit Virtus.com.
8065 2Q-21

Item 2.

Code of Ethics.

Response not required for semiannual report.

 

Item 3.

Audit Committee Financial Expert.

Response not required for semiannual report.

 

Item 4.

Principal Accountant Fees and Services.

Response not required for semiannual report.

 

Item 5.

Audit Committee of Listed Registrants.

Response not required for semiannual report.

 

Item 6.

Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form.

 

(b)

Not applicable.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Response not required for semiannual report.

 

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

 

(a)

Response not required for semiannual report.

 

(b)

There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR.

 

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

On December 18, 2020, the Fund announced that the Board of Trustees approved a repurchase plan with respect to the 4,360,000 outstanding series A cumulative preferred shares (“CPS”) issued by the Fund. The program is approved for repurchases to occur from the announcement date until six months prior to the September 11, 2023 call date.

No repurchases were made during the period.

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Trustees that were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

 

Item 11.

Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, 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))), as amended are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended. There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during 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.

 

  (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 most recent six months of the period covered by this report that materially affected, or is reasonably likely to affect, the registrant’s internal control over financial reporting.

 

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Response not required for semiannual report.

 

Item 13.

Exhibits.

 

(a)(1)   Not applicable.
(a)(2)   Exhibit 99.302 Cert. - Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(a)(3)   Not applicable.
(a)(4)   Not applicable.
(b)   Exhibit 99.906 Cert. - Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Virtus AllianzGI Convertible & Income Fund II

 

By:  

/s/ George R. Aylward

  George R. Aylward, President and Chief Executive Officer
  (principal executive officer)
Date: 11/5/21
By:  

/s/ W. Patrick Bradley

  W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer
  (principal financial officer)
Date: 11/5/21

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/ George R. Aylward

  George R. Aylward, President and Chief Executive Officer
  (principal executive officer)
Date: 11/5/21
By:  

/s/ W. Patrick Bradley

  W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer
  (principal financial officer)
Date: 11/5/21

 

* 

Print the name and title of each signing officer under his or her signature.

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