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 811-22167

 

 

Virtus Strategy Trust

(Exact name of registrant as specified in charter)

 

 

101 Munson Street

Greenfield, MA 01301-9668

(Address of principal executive offices) (Zip code)

 

 

Jennifer Fromm, Esq.

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

One Financial Plaza

Hartford, CT 06103-2608

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (800) 243-1574

Date of fiscal year end: September 30

Date of reporting period: September 30, 2021

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 


Item 1. Reports to Stockholders.

(a) The Report to Shareholders is attached herewith.

(b) Not applicable.


ANNUAL REPORT
VIRTUS STRATEGY TRUST

September 30, 2021
Virtus AllianzGI Convertible Fund*
Virtus AllianzGI Core Plus Bond Fund
Virtus AllianzGI Emerging Markets Consumer Fund*
Virtus AllianzGI Global Allocation Fund*
Virtus AllianzGI Global Dynamic Allocation Fund*
Virtus AllianzGI Global Sustainability Fund
Virtus AllianzGI High Yield Bond Fund*
Virtus AllianzGI International Small-Cap Fund*
Virtus AllianzGI Preferred Securities and Income Fund
Virtus AllianzGI Short Duration High Income Fund*
Virtus AllianzGI Water Fund*
Virtus NFJ Emerging Markets Value Fund*
*Prospectus supplement applicable to this fund appears at the back of this annual report.

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 1-800-243-1574 or, with respect to requesting electronic delivery, by visiting www.virtus.com. An election made directly with the Fund will apply to all Virtus Mutual Funds in which you own shares directly. 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

2

6
Fund Fund
Summary
Schedule
of
Investments

10 44

12 48

15 53

18 55

22 66

26 80

29 82

31 87

34 89

37 92

39 96

42 98

101

107

112

116

126

154

155

156

157
Proxy Voting Procedures and Voting Record (Form N-PX)
The subadvisers vote proxies, if any, relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust (“Trustees”, or the “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 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at https://www.sec.gov.
PORTFOLIO  HOLDINGS INFORMATION
The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT-P. Form N-PORT-P is available on the SEC’s website at https://www.sec.gov.
This report is not authorized for distribution to prospective investors in the Funds presented in this book unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund’s record and other pertinent information.


Table of Contents
MESSAGE TO SHAREHOLDERS
To Virtus Strategy Trust Shareholders:
I am pleased to present this annual report, which reviews the performance of your Fund for the 12 months ended September 30, 2021.
During this fiscal year, markets expressed optimism about the economic reopening that was driven by the release of COVID-19 vaccines, monetary support, and fiscal stimulus. Doubts crept in during the period, however, as the Delta variant impacted productivity and cascading supply chain issues led to higher prices. Strong corporate profitability drove equity markets higher for much of the period, although concerns about inflation and interest rates hindered fixed income markets.
Domestic and international equity indexes delivered strong returns for the 12 months ended September 30, 2021. U.S. large-capitalization stocks returned 30.00%, as measured by the S&P 500® Index, but were outpaced by small-cap stocks, which gained 47.68%, as measured by the Russell 2000® Index. Within international equities, developed markets, as measured by the MSCI EAFE® Index (net), returned 25.73%, while emerging markets, as measured by the MSCI Emerging Markets Index (net), gained 18.20%.
In fixed income markets, the yield on the 10-year Treasury rose sharply to 1.52% on September 30, 2021, from 0.69% on September 30, 2020, based on fears of rising inflation. The broader U.S. fixed income market, as represented by the Bloomberg U.S. Aggregate Bond Index, was down 0.90% for the 12-month period, but non-investment grade bonds, as measured by the Bloomberg U.S. Corporate High Yield Bond Index, were up 11.28%.
On behalf of our investment managers, I thank you for entrusting the Virtus Funds with your assets. Please call our customer service team at 800-243-1574 if you have questions about your account or require assistance. We appreciate your business and remain committed to your long-term financial success.
Sincerely,
George R. Aylward
President, Virtus Funds
November 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. Investing involves risk, including the risk of loss of principal invested.
1


Table of Contents
VIRTUS STRATEGY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of a Virtus Strategy Trust Fund (each, a “Fund”), you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class C shares; and (2) ongoing costs, including investment advisory fees, distribution and service fees, and other expenses. Class P shares, Institutional Class shares, Class R6 shares and Administrative Class shares are sold without sales charges and do not incur distribution and service fees. Class R6 shares also do not incur shareholder servicing fees. For further information regarding applicable sales charges, see Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The Annualized Expense Ratios may be different from the expense ratios in the Financial Highlights which are for the fiscal year ended September 30, 2021.
Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the accompanying tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
    Beginning
Account Value
April 1, 2021
  Ending
Account Value
September 30, 2021
  Annualized
Expense
Ratio
  Expenses
Paid
During
Period*
AllianzGI Convertible Fund

               
  Class A $ 1,000.00   $ 1,027.80   0.96 %   $ 4.88
  Class C 1,000.00   1,024.10   1.73   8.78
  Class P 1,000.00   1,029.20   0.71   3.61
  Institutional Class 1,000.00   1,029.30   0.71   3.61
  Administrative Class 1,000.00   1,028.10   0.93   4.73
AllianzGI Core Plus Bond Fund

               
  Class P 1,000.00   1,024.70   0.36   1.83
  Institutional Class 1,000.00   1,025.10   0.32   1.62
  Class R6 1,000.00   1,024.90   0.26   1.32
AllianzGI Emerging Markets Consumer Fund

               
  Class A 1,000.00   914.80   1.39   6.67
  Institutional Class 1,000.00   916.70   1.04   5.00
AllianzGI Global Allocation Fund

               
  Class A 1,000.00   1,048.90   0.52   2.67
  Class C 1,000.00   1,044.80   1.27   6.51
  Class P 1,000.00   1,049.80   0.32   1.64
  Institutional Class 1,000.00   1,050.30   0.29   1.49
  Class R6 1,000.00   1,050.40   0.22   1.13
  Administrative Class 1,000.00   1,062.90   0.41   2.12
AllianzGI Global Dynamic Allocation Fund

               
  Class A 1,000.00   1,071.20   0.82   4.26
  Class C 1,000.00   1,067.20   1.58   8.19
  Class P 1,000.00   1,071.80   0.66   3.43
  Institutional Class 1,000.00   1,072.70   0.54   2.81
  Class R6 1,000.00   1,073.00   0.54   2.81
  Administrative Class 1,000.00   1,071.50   0.79   4.10
AllianzGI Global Sustainability Fund

               
  Class A 1,000.00   1,104.90   0.94   4.96
  Class P 1,000.00   1,105.80   0.79   4.17
  Institutional Class 1,000.00   1,106.50   0.69   3.64
2


Table of Contents
VIRTUS STRATEGY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
    Beginning
Account Value
April 1, 2021
  Ending
Account Value
September 30, 2021
  Annualized
Expense
Ratio
  Expenses
Paid
During
Period*
AllianzGI High Yield Bond Fund

               
  Class A $1,000.00   $1,040.60   1.07%   $ 5.47
  Class C 1,000.00   1,036.90   1.81   9.24
  Class P 1,000.00   1,042.50   0.80   4.10
  Institutional 1,000.00   1,042.70   0.83   4.25
  Administrative Class 1,000.00   1,063.30   0.97   5.02
AllianzGI International Small-Cap Fund

               
  Class A 1,000.00   1,014.50   1.25   6.31
  Class C 1,000.00   1,010.60   2.00   10.08
  Class P 1,000.00   1,015.30   1.10   5.56
  Institutional Class 1,000.00   1,015.30   1.04   5.25
  Class R6 1,000.00   1,015.60   1.00   5.05
AllianzGI Preferred Securities and Income Fund

               
  Class P 1,000.00   1,071.20   0.59   3.06
  Institutional Class 1,000.00   1,071.90   0.55   2.86
  Class R6 1,000.00   1,072.00   0.50   2.60
AllianzGI Short Duration High Income Fund

               
  Class A 1,000.00   1,012.30   0.86   4.34
  Class C 1,000.00   1,011.00   1.11   5.60
  Class P 1,000.00   1,013.70   0.68   3.43
  Institutional Class 1,000.00   1,014.30   0.60   3.03
  Class R6 1,000.00   1,014.50   0.55   2.78
AllianzGI Water Fund

               
  Class A 1,000.00   1,089.80   1.22   6.39
  Class C 1,000.00   1,085.60   1.97   10.30
  Class P 1,000.00   1,091.00   0.94   4.93
  Institutional Class 1,000.00   1,091.00   0.93   4.87
NFJ Emerging Markets Value Fund

               
  Class A 1,000.00   973.90   1.14   5.64
  Class C 1,000.00   970.30   1.89   9.34
  Class P 1,000.00   974.80   0.99   4.90
  Institutional Class 1,000.00   975.10   0.89   4.41
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
3


Table of Contents
VIRTUS STRATEGY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
    Beginning
Account Value
April 1, 2021
  Ending
Account Value
September 30, 2021
  Annualized
Expense
Ratio
  Expenses
Paid
During
Period*
AllianzGI Convertible Fund

               
  Class A $ 1,000.00   $ 1,020.26   0.96 %   $ 4.86
  Class C 1,000.00   1,016.39   1.73   8.74
  Class P 1,000.00   1,021.51   0.71   3.60
  Institutional Class 1,000.00   1,021.51   0.71   3.60
  Administrative Class 1,000.00   1,020.41   0.93   4.71
AllianzGI Core Plus Bond Fund

               
  Class P 1,000.00   1,023.26   0.36   1.83
  Institutional Class 1,000.00   1,023.46   0.32   1.62
  Class R6 1,000.00   1,023.76   0.26   1.32
AllianzGI Emerging Markets Consumer Fund

               
  Class A 1,000.00   1,018.10   1.39   7.03
  Institutional Class 1,000.00   1,019.85   1.04   5.27
AllianzGI Global Allocation Fund

               
  Class A 1,000.00   1,022.46   0.52   2.64
  Class C 1,000.00   1,018.70   1.27   6.43
  Class P 1,000.00   1,023.46   0.32   1.62
  Institutional Class 1,000.00   1,023.61   0.29   1.47
  Class R6 1,000.00   1,023.97   0.22   1.12
  Administrative Class 1,000.00   1,023.01   0.41   2.08
AllianzGI Global Dynamic Allocation Fund

               
  Class A 1,000.00   1,020.96   0.82   4.15
  Class C 1,000.00   1,017.15   1.58   7.99
  Class P 1,000.00   1,021.76   0.66   3.35
  Institutional Class 1,000.00   1,022.36   0.54   2.74
  Class R6 1,000.00   1,022.36   0.54   2.74
  Administrative Class 1,000.00   1,021.11   0.79   4.00
AllianzGI Global Sustainability Fund

               
  Class A 1,000.00   1,020.36   0.94   4.76
  Class P 1,000.00   1,021.11   0.79   4.00
  Institutional Class 1,000.00   1,021.61   0.69   3.50
AllianzGI High Yield Bond Fund

               
  Class A 1,000.00   1,019.70   1.07   5.42
  Class C 1,000.00   1,015.99   1.81   9.15
  Class P 1,000.00   1,021.06   0.80   4.05
  Institutional 1,000.00   1,020.91   0.83   4.20
  Administrative Class 1,000.00   1,020.21   0.97   4.91
AllianzGI International Small-Cap Fund

               
  Class A 1,000.00   1,018.80   1.25   6.33
  Class C 1,000.00   1,015.04   2.00   10.10
  Class P 1,000.00   1,019.55   1.10   5.57
  Institutional Class 1,000.00   1,019.85   1.04   5.27
  Class R6 1,000.00   1,020.05   1.00   5.06
AllianzGI Preferred Securities and Income Fund

               
  Class P 1,000.00   1,022.11   0.59   2.99
  Institutional Class 1,000.00   1,022.31   0.55   2.79
  Class R6 1,000.00   1,022.56   0.50   2.54
AllianzGI Short Duration High Income Fund

               
  Class A 1,000.00   1,020.76   0.86   4.36
  Class C 1,000.00   1,019.50   1.11   5.62
  Class P 1,000.00   1,021.66   0.68   3.45
  Institutional Class 1,000.00   1,022.06   0.60   3.04
  Class R6 1,000.00   1,022.31   0.55   2.79
4


Table of Contents
VIRTUS STRATEGY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
    Beginning
Account Value
April 1, 2021
  Ending
Account Value
September 30, 2021
  Annualized
Expense
Ratio
  Expenses
Paid
During
Period*
AllianzGI Water Fund

               
  Class A $1,000.00   $1,018.95   1.22%   $ 6.17
  Class C 1,000.00   1,015.19   1.97   9.95
  Class P 1,000.00   1,020.36   0.94   4.76
  Institutional Class 1,000.00   1,020.41   0.93   4.71
NFJ Emerging Markets Value Fund

               
  Class A 1,000.00   1,019.35   1.14   5.77
  Class C 1,000.00   1,015.59   1.89   9.55
  Class P 1,000.00   1,020.10   0.99   5.01
  Institutional Class 1,000.00   1,020.61   0.89   4.51
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
5


Table of Contents
VIRTUS STRATEGY TRUST
KEY INVESTMENT TERMS (Unaudited)
September 30, 2021
Alternative Credit Enhancement Securities® (“ACES”)
ACEs, a type of multiclass mortgage-related security in which interest and principal payments from multifamily mortgages are structured into separately traded securities.
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.
Asset-Backed Securities (“ABS”)
Asset-backed securities represent interests in pools of underlying assets such as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property, and receivables from credit card arrangements.
Additional tier 1 securities (“ATIs”)
AT1 bonds were introduced by regulators after the global financial crisis to shore up banks’ balance sheets. They have high coupons, and banks do not need to repay the principal. Because the bonds can be written off in certain circumstances, they are also known as “contingent convertibles.”
Bank of England
The Central Bank of the United Kingdom, responsible for controlling the money supply, interest rates, credit, and regulation of U.K. Banks with the goal of keeping the U.K. financial system stable.
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.
Collateralized Loan Obligation (“CLO”)
A collateralized loan obligation is a type of security backed by a pool of debt, typically low-rated corporate loans, structured so that there are several classes of bondholders with varying maturities, called tranches.
Dow Jones Sustainability World Index (net)
The Dow Jones Sustainability World Total Return Index tracks the performance of the top 10% of the 2500 largest companies in the S&P Global Broad Market Index that are the world’s sustainability leaders based on economic, environmental and social criteria.
Earnings before interest, taxes and depreciation (“EBITDA”)
A financial measure that reflects operating and nonoperating profit before the deduction of interest and income taxes. Depreciation and amortization expenses are not included in the costs.
European Central Bank (“ECB”)
The ECB is the central bank of the 19 European Union countries which use the euro. The bank main task is to maintain price stability, by making sure that inflation remains low, stable and predictable.
Exchange-Traded Fund (“ETF”)
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 Home Loan Mortgage Corporation (“Freddie Mac”)
A government-owned corporation that buys mortgages and packages them into mortgage-backed securities.
Federal National Mortgage Association (“Fannie Mae”)
A government-sponsored, publicly traded enterprise that makes mortgages available to low- and moderate-income borrowers. It does not provide loans, but backs or guarantees them in the secondary mortgage market.
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.
6


Table of Contents
VIRTUS STRATEGY TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued) September 30, 2021
Financial Times Stock Exchange (“FTSE”)
FTSE Russell provides a comprehensive range of reliable and accurate indexes, giving investors the tools they require to measure and analyze global markets across asset classes, styles or strategies.
FTSE/Johannesburg Stock Exchange (“FTSE/JSE”)
The FTSE/JSE Africa Index Series represents the South African equity market and its market segments. Market capitalization-weighted and alternatively-weighted indexes are available, including equally-weighted, shareholder-weighted, and capped indexes.
FTSE Milano Indice di Borsa (“FTSE MIB”)
The FTSE MIB Italia Series provides investors with a comprehensive and complementary set of market-cap weighted indexes measuring the performance of Italian companies listed on the Italian stock exchange, Borsa Italia. The indexes are designed for use as performance benchmarks and are suitable for the creation of structured products, index-tracking funds, exchange-traded funds and derivatives.
Global Depositary Receipt (“GDR”)
Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by an international bank or a trust. Foreign companies use GDRs in order to make it easier for foreign investors to buy their shares.
Government National Mortgage Association (“Ginnie Mae”)
A U.S. government corporation that guarantees the timely payment of principal and interest on mortgage-backed securities (MBSs) issued by approved Ginnie Mae lenders, with the goal of expanding the pool of homeowners by mostly aiding lending to homeowners who are traditionally underserved in the mortgage marketplace such as first-time home buyers and low-income borrowers.
Group of Seven (“G7”)
An inter-governmental political forum whose members include Canada, France, Germany, Italy, Japan, the U.K. and the U.S..
Intercontinental Exchange (“ICE”)
An American Fortune 500 company formed in 2000 that operates global exchanges and clearing houses, and provides mortgage technology, data and listing services. The company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange, equity options exchanges and over-the-counter energy, credit and equity markets.
ICE BofA 1-3 Year BB U.S. Cash Pay High Yield Index
The ICE BofA 1-3 Year BB U.S. Cash Pay High Yield Index is a subset of The ICE BofA U.S. Cash Pay High Yield Index including all securities with a remaining term to final maturity less than 3 years and rated BB1 through BB3, inclusive. The ICE BofA 1-3 Year U.S. Cash Pay High Yield Index tracks the performance of U.S. dollar denominated below investment grade corporate debt, currently in a coupon paying period, that is publicly issued in the U.S. domestic market.
ICE BofA Fixed Rate Preferred Securities Index
The ICE BofA Fixed Rate Preferred Securities Index tracks the performance of fixed rate U.S. dollar denominated preferred securities issued in the U.S. domestic market.
ICE BofA U.S. Convertibles Index
The ICE BofA U.S. 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 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.
ICE BofA U.S. High Yield Institutional Capital Securities Index (“HIPS”)
HIPS tracks the performance of U.S. dollar denominated investment grade hybrid capital corporate and preferred securities publicly issues in the U.S. domestic market.
Leveraged Loans
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.
7


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VIRTUS STRATEGY TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued) September 30, 2021
Markit CDX® Emerging Markets Index (“CDX.EM”)
CDX.EM is composed of Sovereign issuers from Latin America, Eastern Europe, the Middle East, Africa and Asia as published by Markit from time to time
Markit CDX® North American High Yield Index (“CDX.NA.HY”)
CDX.NA.HY is composed of 100 liquid North American entities with high yield credit ratings as published by Markit® from time to time.
Markit CDX® North American Investment Grade Index (“CDX.NA.IG”)
CDX.NA.IG is comprised of one hundred twenty five (125) of the most liquid North American entities with investment grade credit ratings as published by Markit® from time to time.
Mortgage-Backed Securities (“MBS”)
Mortgage-backed securities represent interests in pools of underlying home loans bought from banks which issue them.
MSCI AC World Index (net)
The MSCI All Country (“AC”) World Index (net) captures large and mid cap representation across Developed Markets and Emerging Markets countries. The index covers approximately 85% of the global investable equity opportunity set.
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 EAFE® Small Cap Index (net)
The MSCI EAFE® Small Cap Index is an equity index which captures small cap representation across Developed Markets countries around the world, excluding the US and Canada. With 2,376 constituents, the index covers approximately 14% of the free float adjusted market capitalization in each country.
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.
MSCI World ex USA Small Cap Index (net)
The MSCI World ex USA Small Cap Index captures small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the U.S.). With 2,574 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country.
Payment-in-Kind Security (“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.
S&P 500® Financials Index
The S&P 500® Financials Index comprises those companies included in the S&P 500 that are classified as members of the GICS financials sector.
S&P 500® Global Water Index
The S&P 500® Global Water Index is comprised of 50 of the largest publicly traded companies in water-related businesses that meet specific invest ability requirements. The Index is designed to provide liquid exposure to the leading publicly-listed companies in the global water industry, from both developed markets and emerging markets.
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.
8


Table of Contents
VIRTUS STRATEGY TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued) September 30, 2021
Secured Overnight Financing Rate (“SOFR”)
SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
Sponsored ADR
An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. Sponsored ADRs generally carry the same rights normally given to stockholders, such as voting rights. ADRs must be sponsored to be able to trade on a major U.S. exchange such as the New York Stock Exchange (“NYSE”).
Tokyo Stock Price Index (“TOPIX”)
Tokyo Stock Price Index is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange.
Treasury Inflation Protected Securities (“TIPS”)
TIPS are a type of Treasury security issued by the U.S. government. TIPS are indexed to inflation in order to protect investors from a decline in the purchasing power of their money.
9


Table of Contents
  Ticker Symbols:
  Class A : ANZAX
  Class C: ANZCX
  Class P: ANCMX
  Institutional Class: ANNPX
  Administrative Class: ANNAX
AllianzGI Convertible Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking maximum total return, consisting of capital appreciation and current income. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 25.71%, Class C shares at NAV returned 24.75%, Class P shares at NAV returned 26.03%, Institutional Class shares at NAV returned 26.02%, and Administrative Class shares at NAV returned 25.76%. For the same period, the ICE BofA U.S. Convertibles Index, the Fund’s style-specific benchmark appropriate for comparison, returned 27.30%.
    See footnote 5 on page 11.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
The convertible bond market advanced for the 12-month period, with the ICE BofA U.S. Convertibles Index returning 27.30%. By way of comparison, the 10-year U.S. Treasury returned -6.22% and the S&P 500® Index gained 30.00%.
Multiple factors influenced the market during the 12-month period. Stronger-than-expected quarterly earnings results, a rapid economic recovery, ongoing accommodation by the U.S. Federal Reserve (the Fed), additional U.S. fiscal stimulus, and positive vaccine-related dynamics all had a favorable impact on investor confidence. On the other hand, a confluence of macroeconomic risks late in the reporting period, including signs of inflation and higher interest rates, weighed on sentiment.
All sectors within the convertible bond market finished higher. Materials, energy, and consumer discretionary were the top-performing sectors, while telecommunications, utilities, and health care were the bottom-performing sectors.
Below-investment-grade issuers outperformed investment grade issuers.
Lastly, with $68 billion in convertible bond new issuance through September 2021, annual volume was on track to meet strategists’ upwardly revised targets.
What factors affected the Fund’s performance during its fiscal year?
The Fund produced a positive total return for the 12 months ended September 30, 2021.
The attribution for the period included several positive performers from a variety of industries. The majority of the Fund’s issuers exceeded earnings expectations, which contributed to absolute performance during the period.
Sector allocations that helped relative performance during the fiscal year included financials, utilities, and technology.
Sector allocations that hurt relative performance during the 12-month period included consumer discretionary, energy, and transportation.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including
actual or perceived changes in the financial condition or business prospects of such issuers.
Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the Fund.
Interest Rate: The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.
Counterparties: There is risk that a party upon whom the portfolio relies to complete a transaction will default.
Credit Risk: If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer’s ability to make such payments, the price of the security may decline.
Prepayments/Calls: If issuers prepay or call fixed rate obligations when interest rates fall, it may force the Fund to reinvest at lower interest rates.
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.
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.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Convertible Bonds and Notes   80%
Internet 18%  
Software 15  
Healthcare-Products 5  
All other Convertible Bonds and Notes 42  
Convertible Preferred Stocks   15
Short-Term Investment   5
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
10


Table of Contents
AllianzGI Convertible Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years 10 Years
Class A shares at NAV2 25.71 % 19.35% 14.89%
Class A shares at POP3,4 18.80 18.00 14.24
Class C shares at NAV2 and with CDSC4 24.75  18.47 14.05
Class P shares at NAV2 26.03  19.67 15.17
Institutional Class shares at NAV2 26.02  19.69 15.23
Administrative Class shares at NAV2 25.76  5 19.42 14.96
ICE BofA U.S. Convertibles Index 27.30 17.37 14.37
Fund Expense Ratios6: Class A shares: Gross 1.06%, Net 0.96%; Class C shares: Gross 1.79%, Net 1.73%; Class P shares: Gross 0.82%, Net 0.71%; Institutional Class shares: Gross 0.79%, Net 0.71%; Administrative Class Gross 1.00%, Net 0.93%.        
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, Class P shares, Institutional Class shares, and Administrative Class shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
11


Table of Contents
  Ticker Symbols:
  Class P: ACKPX
  Institutional Class: ACKIX
  Class R6: ACOSX
AllianzGI Core Plus Bond Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking total return, consisting of current income and capital appreciation. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class P shares at NAV returned 2.89%, Institutional Class shares at NAV returned 2.92%, and Class R6 shares at NAV returned 2.90%. For the same period, the Bloomberg U.S. Aggregate Bond Index, the Fund’s style-specific benchmark appropriate for comparison, returned -0.90%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
The market environment over the 12-month period was dominated by the tightening of credit spreads (the additional yield an investor receives above the yield from a U.S. Treasury bond of the same duration), which resulted from the reopening of the economy following the onset of the pandemic. In particular, the companies that were most severely affected by closures were the best performers for the reporting period. These “reopening” sectors included travel, airlines, hotels, air lessors, aircraft supply chain, and commercial real estate, both office and retail.
Investment grade fixed income sectors such as energy, subordinated financials, and airlines all benefitted from the reopening of global economies. The reopening both spurred economic activity and, importantly, reduced the risk premium attached to many of these sectors during a period of uncertainty, resulting in significant outperformance. On the commodity side, soaring oil and gas prices were a boon for companies in the energy sector, including
the midstream sector where the Fund had most of its exposure.
What factors affected the Fund’s performance during its fiscal year?
For the 12 months ended September 30, 2021, the Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index.
The Fund’s outperformance for the fiscal year was driven more by sector selection than security selection. Sector performance was led by both investment grade credit, including preferred securities, as well as active repositioning in high yield credit and an underweight in agency mortgage-backed securities. From a security selection standpoint, performance was led mostly by investment grade credit, including preferreds.
Overweights to investment grade sectors drove positive returns for the fiscal year. The Fund also benefitted from the addition of a basket of “rising stars,” companies that we believe will be upgraded from the high yield market into the investment grade market in the next 12-18 months. In tandem with the economic recovery, rating agencies upgraded debt at a record pace, which caused particularly strong outperformance for these companies.
The Fund’s overweights in both the high-quality AAA-rated asset-backed security (ABS) sector and the high-quality government sector underperformed the benchmark for the 12-month period, as riskier segments of the market dominated during the COVID-19 recovery. We maintained overweight positions in both sectors given that these sectors usually yield higher than U.S. Treasuries with less exposure to additional liquidity risk. Both sectors performed relatively well during the final three months of the fiscal year as markets normalized. The security selection overweight to Small Business Administration (SBA) loans within the government sector also performed poorly during the 12-month period for primarily the same reason.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Debt Instruments: Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer’s or counterparty’s deterioration or default.
Interest Rate: The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.
Variable Distribution Risk: Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates.
ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the Fund.
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.
Derivatives: Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.
Leverage: When a fund is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
12


Table of Contents
AllianzGI Core Plus Bond Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Corporate Bonds and Notes   39%
Financials 9%  
Utilities 5  
Communications 5  
All other Corporate Bonds and Notes 20  
Asset-Backed Securities   29
Mortgage-Backed Securities   15
U.S. Government Securities   14
Short-Term Investment   2
Preferred Stocks   1
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
13


Table of Contents
AllianzGI Core Plus Bond Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year Since
inception
Inception
date
Class P shares at NAV2   2.89 % 6.71 % 5/30/18
Institutional Class shares at NAV2   2.92  6.77  5/30/18
Class R6 shares at NAV2   2.90  6.80  5/30/18
Bloomberg U.S. Aggregate Bond Index   -0.90 4.79 3
Fund Expense Ratios4: Class P shares: Gross 0.76%, Net 0.35%; Institutional Class shares: Gross 0.76%, Net 0.30%; Class R6 shares: Gross 0.76%, Net 0.25%.        
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on September 30, 2018 (inception date of the Fund), for Class P shares, Institutional Class shares, and Class R6 shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 The since inception index return is from the Fund’s inception date.
4 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
14


Table of Contents
  Ticker Symbols:
  Class A : AMMAX
  Institutional Class: AERIX
AllianzGI Emerging Markets Consumer Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 6.30%, and Institutional Class shares at NAV returned 6.63%. For the same period, the MSCI Emerging Markets Index (net), the Fund’s style-specific benchmark appropriate for comparison, returned 18.20%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
Emerging markets (EM) equities advanced during the reporting period as the asset class rebounded thanks to improving sentiment and higher global growth expectations.
Favorable COVID-19 vaccine news and optimism over the outlook for a global economic recovery initially propelled EM stocks higher, leading to an outperformance of deep value and economically sensitive stocks, which stood to benefit from rising inflation trends. This tailwind translated to positive results in the asset class for the initial five months of the reporting period, with the MSCI Emerging Markets Index (net) reaching an all-time high in February of 2021. Performance was mixed in the latter half of the reporting period due primarily to developments in China, where regulatory crackdowns and signs of slowing economic activity impacted results. Concerns that the U.S. Federal Reserve (the Fed) was getting closer to raising interest rates weighed on market prospects, and several EM central banks raised rates to combat increasing inflationary pressures. The asset class underperformed in July of 2021 due to a crackdown
on the education sector in China and rising COVID-19 cases across many Asian countries. EM equities also lagged in September 2021 due to concerns around the potential default of a major Chinese homebuilder, which investors feared could have ripple effects for other areas of the market.
At a regional level, Eastern European stocks soared, with Russian equities among the strongest performers, helped by higher oil prices and an appreciation in the Russian ruble. Latin American markets outperformed the broader EM index as Mexican shares surged, helped in part by higher oil prices as well as hopes that the new U.S. administration would be less aggressive on trade and immigration. Brazilian stocks also rallied sharply initially as hopes of a global economic recovery lifted the outlook for oil and industrial metals prices. Meanwhile, Asian equities were impacted by regulatory announcements in China, while in contrast India advanced thanks to upbeat corporate earnings and the announcement of a pro-growth budget.
Sector performance for the benchmark index was divergent, with nine out of 11 sectors advancing. More economically sensitive segments of the market rallied significantly, led by strong gains in materials, energy, information technology, and utilities. In contrast, consumer discretionary stocks posted a double-digit decline due to weakness in key education and internet retailers within China, followed by more modest losses in the real estate sector.
What factors affected the Fund’s performance during its fiscal year?
The Fund seeks to capitalize on the long-term growth of the local emerging markets consumer, while limiting other risks including country and market capitalization. The Fund trailed its benchmark, the MSCI Emerging Markets Index (net), due to meaningful asset allocation headwinds.
During the reporting period, bottom-up stock selection was neutral relative to the benchmark, however, underperformance was attributable to the inability to own select non-consumer segments. Specifically, the Fund’s avoidance of semiconductors, energy, and materials hurt performance during the reporting period given the increased demand for computer chips, oil & gas, and metals & mining companies. However, more conservative stock selection in communication
services and consumer staples offset results modestly.
Positive bottom-up stock-picking in consumer discretionary and financials contributed to relative performance during the reporting period. From a country standpoint, stock selection in China detracted, as did a relative underweight in India and the inability to own key oil and gas companies in Russia. Conversely, an overweight allocation and positive stock-picking within South Korea contributed to results, as did the Fund’s investments in select EM-consumer-related companies based in Germany.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Focused Investments: To the extent the Portfolio focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
15


Table of Contents
AllianzGI Emerging Markets Consumer Fund (Continued)
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Banks 16%
Technology Hardware, Storage & Peripherals 12
Insurance 11
Internet & Direct Marketing Retail 8
Textiles, Apparel & Luxury Goods 7
Interactive Media & Services 6
Automobiles 5
Life Sciences Tools & Services 5
Beverages 4
Wireless Telecommunication Services 3
Other (includes short-term investment) 23
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
16


Table of Contents
AllianzGI Emerging Markets Consumer Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years Since
inception
Inception
date
Class A shares at NAV2   6.30 % 5.96 % 2.92 % 12/1/14
Class A shares at POP3,4   0.45 4.77 2.07 12/1/14
Institutional Class shares at NAV2   6.63  6.33  3.28  12/1/14
MSCI Emerging Markets Index (net)   18.20 9.23 6.04 5
Fund Expense Ratios6: Class A shares: Gross 1.95%, Net 1.40%; Institutional Class: Gross 1.67%, Net 1.05%.          
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on December 1, 2014 (inception date of the Fund), for Class A shares, and Institutional Class shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
17


Table of Contents
  Ticker Symbols:
  Class A : PALAX
  Class C: PALCX
  Class P: AGAPX
  Institutional Class: PALLX
  Class R6: AGASX
  Administrative Class: AGAMX
AllianzGI Global Allocation Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking after-inflation capital appreciation and current income. There is no guarantee that the Fund will meet its objectives.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 15.16%, Class C shares at NAV returned 14.29%, Class P shares at NAV returned 15.30%, Institutional Class shares at NAV returned 15.46%, Class R6 shares at NAV returned 15.46%, and Administrative Class shares at NAV returned 16.73%. For the same period, the 60% MSCI AC World Index (net) / 40% Bloomberg U.S. Aggregate Bond Index, the Fund’s style-specific benchmark appropriate for comparison, returned 15.52%, Bloomberg U.S. Aggregate Bond Index and MSCI AC World Index (net), both broad-based indexes, returned -0.90%, and 27.44%, respectively.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period ended September 30, 2021, global equity markets surged, with many western markets reaching new highs in early September of 2021. The rally began in November of 2020, following news that COVID-19 vaccines under development had far higher efficacy rates than expected. Joe Biden’s victory in the U.S. presidential election also lifted expectations of massive fiscal stimulus to support the world’s largest economy. As COVID-19 vaccination campaigns picked up speed in 2021, there was growing optimism about a swift global economic recovery from the pandemic. Robust corporate earnings growth further buoyed global stocks.
Global government bonds sold off as rising inflation led to speculation that central banks would soon start to taper their bond-buying programs and consider raising interest rates. U.S. bond yields rose the most, with the yield on the 10-year Treasury rising 0.85% over the 12 months, while U.K. and Australian government bond yields increased 0.70%. Bond yields also rose in the eurozone, although more modestly. Corporate bonds outperformed sovereign debt, with high yield bonds recording the strongest returns.
What factors affected the Fund’s performance during its fiscal year?
For the 12 months ended September 30, 2021, the Fund performed roughly in line with its blended benchmark (60% MSCI AC World Index (net) / 40% Bloomberg U.S. Aggregate Bond Index).
Top contributors to results included exposures in the Diversifying Trend Overlay strategy, which takes active positions across a diversified universe of asset classes, and the Fund’s long exposure to global equities, which was maintained throughout most of the reporting period. Also in the diversifying segment of the Fund were clean energy-oriented exposures, which contributed to results for the full fiscal year, despite giving back some performance in the final quarter. In the fixed income segment of the Fund, security selection within sustainably oriented fixed income exposures, including green bonds, also contributed.
Conversely, detractors for the period stemmed from security selection in the Fund’s core equity exposures. Within equities, the Global Sustainability strategy trailed its global equity benchmark, the MSCI All Country World Index (net), for the period, although it made back much of the relative performance toward the end of the period. Additionally, exposure to lower volatility equities trailed traditional indexes, as equities with higher volatility generally outperformed during the period.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Allocation: The Fund’s exposure to different asset classes may not be optimal for market conditions at a given time. Asset allocation does not guarantee a profit or protect against a loss in declining markets.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
Sustainable Investing: Because the Fund focuses on investments in companies that the Manager believes exhibit strong environmental, social, and corporate governance records, the Fund’s universe of investments may be smaller than that of other funds and broad equity benchmark indices.
Underlying Fund Risk: The Fund will be indirectly affected by factors, risks and performance specific to any other fund in which it invests.
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.
Debt Instruments: Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer’s or counterparty’s deterioration or default.
Interest Rate: The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.
Derivatives: Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
18


Table of Contents
AllianzGI Global Allocation Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Affiliated Mutual Fund   34%
Corporate Bonds and Notes   15
Banks 3%  
Electric Utilities 3  
Insurance 1  
All other Corporate Bonds and Notes 8  
Common Stocks   14
Pharmaceuticals 1  
Diversified Telecommunication Services 1  
Electric Utilities 1  
All other Common Stocks 11  
Exchange-Traded Funds   11
Mortgage-Backed Securities   9
U.S. Government Securities   7
Asset-Backed Securities   7
Other (includes short-term investment)   3
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
19


Table of Contents
AllianzGI Global Allocation Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years 10 Years Since
inception
Inception
date
Class A shares at NAV2   15.16 % 8.47 % 7.66 % — %
Class A shares at POP3,4   8.83 7.25 7.05
Class C shares at NAV2 and with CDSC4   14.29  7.66  6.86  — 
Class P shares at NAV2   15.30  8.73  7.91  — 
Institutional Class shares at NAV2   15.46  8.73  7.92  — 
Class R6 shares at NAV2   15.46  8.83  —  8.19  9/8/15
Administrative Class shares at NAV2   16.73  8.85  7.84  — 
60% MSCI AC World Index (net) / 40% Bloomberg U.S. Aggregate Bond Index   15.52 9.27 8.51 8.99 5
MSCI AC World Index (net)   27.44 13.20 11.90 12.40 5
Bloomberg U.S. Aggregate Bond Index   -0.90 2.94 3.01 3.38 5
Fund Expense Ratios6: Class A shares: Gross 1.64%, Net 0.91%; Class C shares: Gross 2.37%, Net 1.66%; Class P shares: Gross 1.43%, Net 0.71%; Institutional Class shares: Gross 1.39%, Net 0.68%; Class R6 shares: Gross 1.34%, Net 0.61%; Administrative Class shares: Gross 1.59%, Net 0.86%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, Class P shares, Institutional Class shares, and Administrative Class shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
20


Table of Contents
AllianzGI Global Allocation Fund (Continued)
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
21


Table of Contents
  Ticker Symbols:
  Class A : ASGAX
  Class C: ASACX
  Class P: AGSPX
  Institutional Class: AGAIX
  Class R6: ADYFX
  Administrative Class: AGFAX
AllianzGI Global Dynamic Allocation Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 25.22%, Class C shares at NAV returned 24.29%, Class P shares at NAV returned 25.38%, Institutional Class shares at NAV returned 25.59%, Class R6 shares at NAV returned 25.54%, and Administrative Class shares at NAV returned 25.27%. For the same period, the 60% MSCI AC World Index (net) / 40% Bloomberg U.S. Aggregate Bond Index, the Fund’s style-specific benchmark appropriate for comparison, returned 15.52%, Bloomberg U.S. Aggregate Bond Index and MSCI AC World Index (net), both broad-based indexes, returned -0.90%, and 27.44%, respectively.
    See footnote 5 on page 25.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period ended September 30, 2021, global equity markets surged, with many western markets reaching new highs in early September of 2021. The rally began in November of 2020, following news that COVID-19 vaccines under development had far higher efficacy rates than expected. Joe Biden’s victory in the U.S. presidential election also lifted expectations of massive fiscal stimulus to support the world’s largest economy. As COVID-19 vaccination campaigns picked up speed in 2021, there was growing optimism about a swift global economic recovery from the pandemic.
Robust corporate earnings growth further buoyed global stocks.
Global government bonds sold off as rising inflation led to speculation that central banks would soon start to taper their bond-buying programs and consider raising interest rates. U.S. bond yields rose the most, with the yield on the 10-year Treasury rising 0.85% over the 12 months, while U.K. and Australian government bond yields increased 0.70%. Bond yields also rose in the eurozone, although more modestly. Corporate bonds outperformed sovereign debt, with high yield bonds recording the strongest returns.
What factors affected the Fund’s performance during its fiscal year?
For the 12 months ended September 30, 2021, the Fund notably outperformed its blended benchmark (60% MSCI AC World Index (net) / 40% Bloomberg U.S. Aggregate Bond Index).
For the fiscal year, the Fund benefited from its overweight to global equities, with U.S. and European equity overweight positions providing the most significant contributions to performance. In addition to the favorable allocation effects, a tilt toward value-oriented U.S. equities and companies perceived as being more sensitive to the reopening of the U.S. economy also contributed to relative performance.
In the Fund’s fixed income portfolio, an overweight to credits, as well as security selection within credits, were top contributors. Within U.S. government bonds, an underweight to U.S. Treasuries and an overweight to U.S. TIPS (Treasury inflation-protected securities) also contributed positively to performance for the period. Conversely, in the opportunistic portion of the Fund, exposure to government bonds outside the U.S. moderately detracted from results as rates rose, particularly toward the end of the 12-month period.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Allocation: The Fund’s exposure to different asset classes may not be optimal for market conditions at a given time. Asset allocation does not guarantee a profit or protect against a loss in declining markets.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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.
Debt Instruments: Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer’s or counterparty’s deterioration or default.
Interest Rate: The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.
Derivatives: Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.
Prepayments/Calls: If issuers prepay or call fixed rate obligations when interest rates fall, it may force the Fund to reinvest at lower interest rates.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
22


Table of Contents
AllianzGI Global Dynamic Allocation Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Common Stocks   52%
Software 3%  
Semiconductors & Semiconductor Equipment 3  
Real Estate Management & Development 2  
All other Common Stocks 44  
Short-Term Investment   25
Corporate Bonds and Notes   17
Banks 3  
Electric Utilities 2  
Insurance 2  
All other Corporate Bonds and Notes 10  
Foreign Government Securities   6
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
23


Table of Contents
AllianzGI Global Dynamic Allocation Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years 10 Years Since
inception
Inception
date
Class A shares at NAV2   25.22 % 9.27 % 8.51 % — %
Class A shares at POP3,4   18.33 8.04 7.90
Class C shares at NAV2 and with CDSC4   24.29  8.44  7.68  — 
Class P shares at NAV2   25.38  5 9.72  8.82  — 
Institutional Class shares at NAV2   25.59  9.57  8.80  — 
Class R6 shares at NAV2   25.54  5 9.58  —  9.57  2/1/16
Administrative Class shares at NAV2   25.27  9.29  8.53  — 
60% MSCI AC World Index (net) / 40% Bloomberg U.S. Aggregate Bond Index   15.52 9.27 8.51 9.93 6
MSCI AC World Index (net)   27.44 13.20 11.90 14.02 6
Bloomberg U.S. Aggregate Bond Index   -0.90 2.94 3.01 3.41 6
Fund Expense Ratios7: Class A shares: Gross 1.70%, Net 0.92%; Class C shares: Gross 2.43%, Net 1.68%; Class P shares: Gross 1.46%, Net 0.78%; Institutional Class shares: Gross 1.47%, Net 0.64%; Class R6 shares: Gross 1.39%, Net 0.64%; Administrative Class shares: Gross 1.64%, Net 0.89%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, Class P shares, Institutional Class shares, and Administrative Class shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
24


Table of Contents
AllianzGI Global Dynamic Allocation Fund (Continued)
5 Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report.
6 The since inception index return is from the inception date of Class R6 shares.
7 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
25


Table of Contents
  Ticker Symbols:
  Class A : ASUAX
  Class P: ASTPX
  Institutional Class: ASTNX
AllianzGI Global Sustainability Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 24.61%, Class P shares at NAV returned 24.78%, and Institutional Class shares at NAV returned 24.95%. For the same period, the MSCI AC World Index (net), the Fund’s style-specific benchmark appropriate for comparison, returned 27.44% and Dow Jones Sustainability World Index (net), a broad-based index, returned 24.83%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period ended September 30, 2021, global equity markets surged, with many western markets reaching new highs in early September of 2021. The rally began in November of 2020, following news that COVID-19 vaccines under development had far higher efficacy rates than expected. Joe Biden’s victory in the U.S. presidential election also lifted expectations of massive fiscal stimulus to support the world’s largest economy. As COVID-19 vaccination campaigns picked up speed in 2021, there was growing optimism about a swift global economic recovery from the pandemic. Robust corporate earnings growth further buoyed global stocks.
Every sector in the MSCI AC World Index rallied during the fiscal year. Energy stocks soared as oil prices rallied sharply amid expectations of stronger demand. The financials sector was another leader, boosted by strengthening economic activity and higher long-term bond yields, which lifted the
outlook for banks’ profit margins. While defensive sectors such as consumer staples and utilities were among the weakest performers, they still recorded double-digit gains.
Economic news showed that the global economy was recovering from the pandemic-related shock. However, as supply chain blockages and rising wages pushed inflation rates higher, speculation grew that central banks would soon start to taper their pandemic stimulus measures, raise interest rates, or both. While rates rose in several markets, Group of Seven (G7) nations did not follow suit during the reporting period. In September of 2021, the U.S. Federal Reserve (the Fed) signalled that it might start to taper later in the year, and a greater number of U.S. policymakers predicted that rates would rise in 2022. In the same month, the European Central Bank (ECB) decided to trim its monthly asset purchases, while the Bank of England indicated that it might soon raise rates to combat inflation.
What factors affected the Fund’s performance during its fiscal year?
The Fund underperformed its benchmark over the fiscal year ended September 30, 2021. This was driven largely by the strong performance from more economically sensitive stocks with value characteristics. As a team, our preference is for quality companies that we believe offer sustainable earnings growth at reasonable valuations. This focus on valuation is designed to ensure that the Fund retains a core positioning, albeit with a clear tilt toward growth characteristics.
The fourth quarter of 2020 and the start of 2021 saw a clear trend, in which stocks whose revenues and earnings had all but ceased as a result of global lockdowns staged a sharp recovery following the discovery of a successful COVID-19 vaccine. Despite this reversal, more recently, supply chain bottlenecks, an emerging energy crisis, and labor shortages stoked inflation fears. At the same time, growth expectations for the global economy were tempered. Combined with the prospect of tapering and monetary policy tightening, bond yields rose sharply during the fiscal year. Some investors worried that this combination could lead to stagflation – a period of low to negative growth despite high inflation.
These conditions led to a pullback for growth stocks, as well as more economically sensitive names.
Energy stocks were a rare bright spot. However, portfolio construction designed to ensure that stock selection is the largest driver of returns continued to be the case, with picks in the communication services, health care, and industrials sectors making the largest positive contributions. Intuit, a provider of online tax and accounting software, reported consistently strong quarterly results, with year-on-year revenue growth of 41%, and earnings before interest, taxes and depreciation (EBITDA) of 21%. Agilent, the analytical and measurement company, also boosted returns thanks to strong earnings. Other strong performers included American Express (credit cards), Shell (energy), and Alphabet (the technology giant that owns Google, Youtube, and the Android operating system ).
Conversely, names in the financials and consumer staples sectors detracted from the Fund’s performance. Adidas in particular weakened returns. Chinese President Xi’s regulatory onslaught focused not only on technology platforms but also excessive consumption. Plans to clamp down on high incomes directly impacted the maker of sports apparel, which generates its fastest growth in the region. At the same time, rising COVID-19 infections in Vietnam caused by the Delta variant caused supply chain issues for Adidas. Given the idiosyncratic and short-term nature of these issues, we saw no challenge to the longer-term investment thesis, and we continued to hold the stock. Consumer staples names including Reckit Benckiser and Unilever also detracted from performance, as did SAP (a business software provider) and S&P Global (provider of financial data).
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
26


Table of Contents
AllianzGI Global Sustainability Fund (Continued)
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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.
Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Sustainable Investing: Because the Fund focuses on investments in companies that the Manager believes exhibit strong environmental, social, and corporate governance records, the Fund’s universe of investments may be smaller than that of other funds and broad equity benchmark indices.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Software 12%
Pharmaceuticals 8
Technology Hardware, Storage & Peripherals 7
IT Services 7
Capital Markets 5
Insurance 5
Interactive Media & Services 4
Semiconductors & Semiconductor Equipment 4
Building Products 4
Machinery 4
Other (includes short-term investment) 40
Total 100%
 
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
27


Table of Contents
AllianzGI Global Sustainability Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years Since
inception
Inception
date
Class A shares at NAV2   24.61 % 14.08 % 11.21 % 12/9/14
Class A shares at POP3,4   17.76 12.80 10.29 12/9/14
Class P shares at NAV2   24.78  14.25  11.37  12/9/14
Institutional Class shares at NAV2   24.95  14.35  11.47  12/9/14
MSCI AC World Index (net)   27.44 13.20 10.06 5
Dow Jones Sustainability World Index (net)   24.83 14.03 9.91 5
Fund Expense Ratios6: Class A shares: Gross 1.43%, Net 0.94%; Class P shares: Gross 1.20%, Net 0.79%; Institutional Class shares: Gross 1.13%, Net 0.69%.          
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on December 9, 2014 (inception date of the Fund), for Class A shares, Class P shares, and Institutional Class shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
28


Table of Contents
  Ticker Symbols:
  Class A : AYBAX
  Class C: AYBCX
  Class P: AYBPX
  Institutional: AYBIX
  Administrative Class: AYBVX
AllianzGI High Yield Bond Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking a high level of current income and capital growth. There is no guarantee that the Fund will meet its objectives.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 12.20%, Class C shares at NAV returned 11.32%, Class P shares at NAV returned 12.47%, Institutional Class shares at NAV returned 12.43%, and Administrative Class shares at NAV returned 14.60%. For the same period, the ICE BofA U.S. High Yield Index, the Fund’s style-specific benchmark appropriate for comparison, returned 11.46%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
High yield bonds produced a positive return for the 12-month period, with the ICE BofA U.S. High Yield Index returning 11.46%. By way of comparison, the 10-year U.S. Treasury returned -6.22%, and the S&P 500® Index gained 30.00%.
Over the fiscal year, high yield bond prices rose, yields fell, and credit spreads (the additional yield an investor receives above the risk-free rate) tightened against a backdrop of improving credit fundamentals, declining default rates, and a rising upgrade-to-downgrade ratio.
All high yield bond industries advanced for the period. Theaters & entertainment, printing &
publishing, and energy outperformed, while cable & satellite TV, utilities, and telecom-wireless underperformed.
Performance dispersion among credit quality categories widened over the 12-month period as the market recovery broadened and interest rates trended higher. For the period, issues rated BB, B, and CCC returned 9.7%, 10.0%, and 24.1%, respectively.
Lastly, high yield bond new issuance in 2021 was robust as of the end of September, and was on track to surpass 2020’s annual record.
What factors affected the Fund’s performance during its fiscal year?
The Fund produced a positive total return for the fiscal year ended September 30, 2021, and delivered a high level of income over the same period.
Nearly all industries and most issues in the Fund finished higher. The Fund’s underweight allocation to CCC-rated bonds, which outperformed higher-quality credits, had an adverse impact on relative performance.
Industry allocations that helped relative performance during the period included financial services, theaters & entertainment, and air transportation.
Industry allocations that hurt relative performance during the period included energy, support-services, and personal & household products.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
Interest Rate: The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer 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.
Counterparties: There is risk that a party upon whom the Fund relies to complete a transaction will default.
Credit Risk: If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer’s ability to make such payments, the price of the security may decline.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Corporate Bonds and Notes   88%
Oil, Gas & Consumable Fuels 10%  
Telecommunications 7  
Media 6  
All other Corporate Bonds and Notes 65  
Short-Term Investment   7
Preferred Stock   3
Common Stocks   2
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
29


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AllianzGI High Yield Bond Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years 10 Years
Class A shares at NAV2 12.20 % 4.83% 5.67%
Class A shares at POP3,4 7.99 4.03 5.27
Class C shares at NAV2 and with CDSC4 11.32  4.13 4.92
Class P shares at NAV2 12.47  5.21 5.99
Institutional Class shares at NAV2 12.43  5.17 6.00
Administrative Class shares at NAV2 14.60  5.49 5.92
ICE BofA U.S. High Yield Index 11.46 6.35 7.30
Fund Expense Ratios5: Gross 1.14%, Net 1.12%; Class C shares: Gross 1.76%, Net 1.76%; Class P shares: Gross 0.88%, Net 0.80%; Institutional Class shares: Gross 0.87%, Net 0.83%; Administrative Class shares: Gross 1.16%, Net 1.00%.        
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, Class P shares, Institutional Class shares, and Administrative Class shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 3.75% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
30


Table of Contents
  Ticker Symbols:
  Class A : AOPAX
  Class C: AOPCX
  Class P: ALOPX
  Institutional Class: ALOIX
  Class R6: AIISX
AllianzGI International Small-Cap Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking maximum long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 23.32%, Class C shares at NAV returned 22.36%, Class P shares at NAV returned 23.48%, Institutional Class shares at NAV returned 23.55%, and Class R6 shares at NAV returned 23.60%. For the same period, the MSCI World ex USA Small Cap Index, the Fund’s style-specific benchmark appropriate for comparison, returned 30.14% and MSCI EAFE® Small Cap Index (net), a broad-based index, returned 29.02%.
    See footnote 5 on page 33.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
International equity markets in general, and international small-cap stocks in particular, surged over the 12 months ended September 30, 2021, with many western markets reaching new highs in early September of 2021. The rally began in November of 2020, following news that COVID-19 vaccines under development had far higher efficacy rates than expected. Joe Biden’s victory in the U.S. presidential election also lifted expectations of massive fiscal stimulus to support the world’s largest economy. As COVID-19 vaccination campaigns picked up speed in 2021, there was growing optimism about a swift global economic recovery from the pandemic. Robust corporate earnings growth further buoyed global stocks.
Over the 12-month period, international small-cap stocks outperformed international large-caps.
What factors affected the Fund’s performance during its fiscal year?
For the 12-month period ended September 30, 2021, the Fund underperformed its benchmark, the MSCI World Ex USA Small Cap Index (net).
The Fund represents the stocks in which we have the highest conviction from three underlying regional small-cap strategies: Europe, Japan, and Asia ex-Japan. Stock selection is the key driver of relative returns, as the regional allocation of the Fund is neutral to the benchmark, and the Fund has risk controls to ensure that sector deviations do not become too large.
In absolute terms, all three small-cap markets performed strongly for the fiscal year. European small-caps registered the strongest gains, followed by small-caps from Asia ex-Japan, and finally Japan. In relative terms, the Japanese portfolio outperformed its local market. The Asia ex-Japan and the European portfolios lagged their respective indexes.
The Fund’s small-cap portfolio of quality companies, which is exposed to structural growth trends, was not as favorably positioned as the broader equity markets during the period. The Fund saw a negative contribution from stock selection, which detracted from performance in the consumer discretionary, industrials, and materials sectors. Health care was the most important contributor to performance, as a result of successful stock picking, followed by information technology and real estate. Sector allocation was a slight detractor. The Fund’s underweight positions in energy and materials, and an overweight in health care, weighed on relative performance. Nevertheless, the Fund’s underweight positions in consumer staples, real estate, and utilities companies were favorable.
Positive contributors to the Fund’s 12-month performance included the following stocks: ASM International (Netherlands), JEOL (Japan), Siltronic (Germany), Alchip Technologies (Taiwan), and Strorebrand (Norway). ASM International operates in more than 14 countries and produces equipment for front-end chip-making processes, such as epitaxy (film deposition), diffusion/oxidation, and chemical vapor deposition. JEOL manufactures electron optics instruments and analytical instruments. Siltronic manufactures hyper pure silicon wafers for use in
computers, smartphones, flat panel displays, navigation systems, automotive engine control systems, and many other applications. Alchip provides silicon design and manufacturing services and offers a range of system on chip (SoC) design solutions for low power, high performance, and cost considerations. Storebrand Technologies offers insurance, asset management, and banking services.
Detractors from the Fund’s 12-month performance included the following stocks: ASOS (U.K.), Marui Group (Hong Kong), Scout24 (Germany), HomeServe (U.K.), and Fuji Oil Holdings (Japan). ASOS is a leader in the growing online fashion market aimed at young adults, and has been increasing sales at a compound annual growth rate (CAGR) of more than 25% from 2012 to 2018. Marui Group operates department stores that sell clothing, accessories, home appliances, and food, and also provides consumer loan services in Japan. Scout24 operates as a platforms-service company, specializing in the real estate and automotive sectors, and serves clients in Europe. HomeServe provides home emergency and repair services. Fuji Oil develops and manufactures specialty vegetable oils and fats, oils- and fats-processed foods such as chocolate, and soy protein-related products.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
Equity Securities: The market price of equity securities may be adversely affected by financial
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
31


Table of Contents
AllianzGI International Small-Cap Fund (Continued)
market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Machinery 8%
Semiconductors & Semiconductor Equipment 8
Insurance 6
Commercial Services & Supplies 5
Trading Companies & Distributors 5
Electronic Equipment, Instruments & Components 5
Healthcare Equipment & Supplies 5
IT Services 5
Chemicals 4
Real Estate Management & Development 3
Other (includes short-term investment) 46
Total 100%
 
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
32


Table of Contents
AllianzGI International Small-Cap Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years 10 Years Since
inception
Inception
date
Class A shares at NAV2   23.32 % 8.62 % 9.83 % — %
Class A shares at POP3,4   16.54 7.39 9.21
Class C shares at NAV2 and with CDSC4   22.36  7.76  8.98  — 
Class P shares at NAV2   23.48  5 8.78  10.00  — 
Institutional Class shares at NAV2   23.55  8.83  10.08  — 
Class R6 shares at NAV2   23.60  8.89  —  9.14  2/1/16
MSCI World Ex USA Small Cap Index (net)   30.14 10.33 10.03 11.72 6
MSCI EAFE Small Cap Index (net)   29.02 10.38 10.73 11.41 6
Fund Expense Ratios7: Gross 1.85%, Net 1.25%; Class C shares: Gross 2.58%, Net 2.00%; Class P shares: Gross 1.60%, Net 1.10%; Institutional Class shares: Gross 1.62%, Net 1.04%; Class R6 shares: Gross 1.54%, Net 1.00%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, Class P shares, and Institutional Class shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report.
6 The since inception index return is from the inception date of Class R6 shares.
7 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
33


Table of Contents
AllianzGI Preferred Securities and Income Fund Fund Summary (Unaudited)
  Ticker Symbols:
  Class P: APUPX
  Institutional Class: APEIX
  Class R6: ARISX
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking total return consisting of high current income and capital appreciation. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class P shares at NAV returned 17.18%, Institutional Class shares at NAV returned 17.20%, and Class R6 shares at NAV returned 17.32%. For the same period, the ICE BofA Fixed Rate Preferred Securities Index, the Fund’s style-specific benchmark appropriate for comparison, returned 6.86% and S&P 500® Financials Index, a broad-based index, returned 59.13%.
    See footnote 3 on page 36.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
Despite the longer-term trend of the difference between senior and subordinated security yields narrowing, preferred market valuations still looked attractive on a relative basis, because yields on senior securities rallied even further, providing room for the spread between senior and subordinated securities to come down. Balanced new issuance and redemption trends combined with yield demand also created a supportive technical environment.
What factors affected the Fund’s performance during its fiscal year?
For the 12-month period ended September 30, 2021, the Fund outperformed its benchmark, the ICE BofAML Fixed Rate Preferred Securities Index. Returns for both the Fund and the benchmark reflected the rebound from the pandemic-driven market weakness. The Fund’s relative performance benefited from a strong rebound in lower-rated
securities, and opportunistic increases in the Fund’s exposure to sectors whose growth was impacted by the pandemic, such as pipelines and miscellaneous manufacturing. Out-of-benchmark exposures to floating rate securities, European bank additional tier 1 securities (AT1s ), and common equities also contributed positively to relative performance. Positive security selection in pipelines, banks, insurance, diversified financial services, and miscellaneous manufacturing also helped relative performance, along with exposure to securities with coupons indexed with a spread to five- and 10-year Treasuries versus those indexed to short-term, three-month London Interbank Offered Rates (LIBOR).
Fund performance benefited from an overweight allocation to below-investment-grade securities. Below-investment-grade preferred securities, as measured by the ICE BofA US High Yield Institutional Capital Securities Index (HIPS), outperformed the benchmark, which includes only investment grade securities. Given the concentrated nature of the benchmark’s positions in the three largest U.S. financial institutions, collectively 40%, the process of diversifying to large U.S. regional banks, diversified financials, and European AT1s results in a significant amount of exposure to BB-rated securities. The Fund’s overweight position in the pipeline sector also contributed to the allocation to below-investment-grade securities. An out-of-benchmark allocation to floating rate hybrids, securities which have passed their initial call date and transitioned to floating rate coupons, was among the top contributors to Fund performance, benefiting from the rebound of economic activity, which drove Treasury yields higher. A modest allocation to a few select higher dividend-yielding pipeline common equities also contributed to Fund performance. Detracting from performance over the 12-month period was the Fund’s positioning in securities with 10-year call structures, which lagged when rates climbed steeply in the first quarter of 2021. The Fund reduced its holdings in these securities during the fiscal year ended September 30, 2021.
Additionally, given the strong rebound in performance across markets following the introduction of COVID-19 vaccines, the Fund took profits on many of its overweight positions.
The preceding information is the opinion of portfolio management only through the end of the period
stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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.
Issuer Risk: The portfolio will be affected by factors specific to the issuers of securities and other instruments in which the portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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.
Preferred Stocks: Preferred stocks may decline in price, fail to pay dividends, or be illiquid.
Debt Instruments: Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer’s or counterparty’s deterioration or default.
Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Contingent Convertible Securities: Contingent convertible securities (“CoCos”) are subject to greater levels of credit and liquidity risk than fixed income securities generally. They may rank junior to other creditors in the event of a liquidation or other bankruptcy-related event and become further subordinated as a result of conversion from debt to equity.
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 investment terms, see the Key Investment Terms starting on page 6.
34


Table of Contents
AllianzGI Preferred Securities and Income Fund (Continued)
Liquidity: Certain securities may be difficult to sell at a time and price beneficial to the portfolio.
ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the portfolio.
Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Variable Distribution Risk: Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Corporate Bonds and Notes   62%
Financials 42%  
Energy 7  
Consumer, Cyclical 5  
All other Corporate Bonds and Notes 8  
Preferred Stocks   34
Short-Term Investment   3
U.S. Government Security   1
Total   100%
 
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
35


Table of Contents
AllianzGI Preferred Securities and Income Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year Since
inception
Inception
date
Class P shares at NAV2   17.18 % 8.53 % 5/30/18
Institutional Class shares at NAV2   17.20  3 8.60  5/30/18
Class R6 shares at NAV2   17.32  8.64  5/30/18
ICE BofA Fixed Rate Preferred Securities Index   6.86 6.71 4
S&P 500® Financials Index   59.13 12.43 4
Fund Expense Ratios5: Class P shares: Gross 1.07%, Net 0.60%; Institutional Class shares: Gross 1.13%, Net 0.55%; Class R6 shares: Gross 1.07%, Net 0.50%.        
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on May 30, 2018 (inception date of the Fund), for Class P shares, Institutional Class shares, and Class R6 shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report.
4 The since inception index return is from the Fund’s inception date.
5 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
36


Table of Contents
  Ticker Symbols:
  Class A : ASHAX
  Class C: ASHCX
  Class P: ASHPX
  Institutional Class: ASHIX
  Class R6: ASHSX
AllianzGI Short Duration High Income Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is diversified and has an investment objective of seeking a high level of current income with lower volatility than the broader high yield market. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 10.57%, Class C shares at NAV returned 10.26%, Class P shares at NAV returned 10.74%, Institutional Class shares at NAV returned 10.91%, and Class R6 shares at NAV returned 10.95%. For the same period, the ICE BofA 1-3 Year BB U.S. Cash Pay High Yield Index, the Fund’s style-specific benchmark appropriate for comparison, returned 6.40%.
    See footnote 3 on page 38.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
High yield bonds produced a positive return for the 12-month period, with the ICE BofA U.S. High Yield Index returning 11.46%. By way of comparison, the 10-year U.S. Treasury returned -6.22%, and the S&P 500® Index gained 30.00%.
Over the fiscal year, high yield bond prices rose, yields fell, and credit spreads (the additional yield an investor receives above the risk-free rate) tightened against a backdrop of improving credit fundamentals, declining default rates, and a rising upgrade-to-downgrade ratio.
All high yield bond industries advanced for the period. Theaters & entertainment, printing & publishing, and energy outperformed, while cable & satellite TV, utilities, and telecom-wireless underperformed.
Performance dispersion among credit quality categories widened over the 12-month period as the market recovery broadened and interest rates trended higher. For the period, issues rated BB, B, and CCC returned 9.7%, 10.0%, and 24.1%, respectively.
Lastly, high yield bond new issuance in 2021 was robust as of the end of September, and was on track to surpass 2020’s annual record.
What factors affected the Fund’s performance during its fiscal year?
The Fund produced a positive total return for the fiscal year ended September 30, 2021, and delivered a high level of income over the same period.
Performance during the reporting period benefited from industry weightings and active credit selection. Industry exposures that had the greatest positive impact on performance were financial services, energy, and aerospace. There were no industries that detracted from performance for the period.
The Fund remained focused on credit quality, liquidity, and minimizing premiums paid. Average duration in the Fund remained relatively low and well below the average yield and coupon during the fiscal year.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Debt Instruments: Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes
in interest rates or an issuer’s or counterparty’s deterioration or default.
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.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
Interest Rate: The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.
Credit Risk: If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer’s ability to make such payments, the price of the security may decline.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Corporate Bonds and Notes   89%
Diversified Financial Services 9%  
Oil, Gas & Consumable Fuels 9  
Pipelines 9  
All other Corporate Bonds and Notes 62  
Leveraged Loans   7
Short-Term Investment   4
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
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AllianzGI Short Duration High Income Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years Since
inception
Inception
date
Class A shares at NAV2   10.57 % 3 4.15 % 4.74 % 10/3/11
Class A shares at POP4,5   8.09 3.68 4.50 10/3/11
Class C shares at NAV2 and with CDSC5   10.26  3 3.89  4.43  10/3/11
Class P shares at NAV2   10.74  3 4.40  4.95  10/3/11
Institutional Class shares at NAV2   10.91  4.44  5.02  10/3/11
Class R6 shares at NAV2   10.95  —  4.48  2/1/17
ICE BofA 1-3 Year BB U.S. Cash Pay High Yield Index   6.40 4.52 6
Fund Expense Ratios7: Class A shares: Gross 1.00%, Net 0.86%; Class C shares: Gross 1.23%, Net 1.11%; Class P shares: Gross 0.77%, Net 0.65%; Institutional Class shares: Gross 0.75%, Net 0.60%; Class R6 shares: Gross 0.69%, Net 0.55%.          
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30

This chart assumes an initial investment of $10,000 made on October 3, 2011 (inception date of the Fund), for Class A shares, Class C shares, Class P shares, and Institutional Class shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report.
4 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 2.25% sales charge.
5 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
6 The since inception index returned 5.29% from the inception date of Class A shares, Class C shares, Class P shares, and Institutional Class shares and 4.56% from the inception date of Class R6 shares.
7 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
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  Ticker Symbols:
  Class A : AWTAX
  Class C: AWTCX
  Class P: AWTPX
  Institutional Class: AWTIX
AllianzGI Water Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Allianz Global Investors U.S. LLC
The Fund is non-diversified and has an investment objective of seeking long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 29.41%, Class C shares at NAV returned 28.48%, Class P shares at NAV returned 29.77%, and Institutional Class shares at NAV returned 29.76%. For the same period, the S&P 500® Global Water Index, the Fund’s style-specific benchmark appropriate for comparison, returned 37.41% and  MSCI AC World Index (net), a broad-based index, returned 27.44%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. 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. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period ended September 30, 2021, global equity markets surged, with many western markets reaching new highs in early September of 2021. The rally began in November of 2020, following news that COVID-19 vaccines under development had far higher efficacy rates than expected. Joe Biden’s victory in the U.S. presidential election also lifted expectations of massive fiscal stimulus to support the world’s largest economy. As COVID-19 vaccination campaigns picked up speed in 2021, there was growing optimism about a swift global economic recovery from the pandemic. Robust corporate earnings growth further buoyed global stocks.
Every sector in the MSCI AC World Index rallied during the fiscal year. Energy stocks soared as oil prices rallied sharply amid expectations of stronger demand. The financials sector was another leader, boosted by strengthening economic activity and
higher long-term bond yields, which lifted the outlook for banks’ profit margins. While defensive sectors such as consumer staples and utilities were among the weakest performers, they still recorded double-digit gains.
Economic news showed that the global economy was recovering from the pandemic-related shock. However, as supply chain blockages and rising wages pushed inflation rates higher, speculation grew that central banks would soon start to taper their pandemic stimulus measures, raise interest rates, or both. While rates rose in several markets, Group of Seven (G7) nations did not follow suit during the reporting period. In September of 2021, the U.S. Federal Reserve (the Fed) signalled that it might start to taper later in the year, and a greater number of U.S. policymakers predicted that rates would rise in 2022. In the same month, the European Central Bank (ECB) decided to trim its monthly asset purchases, while the Bank of England indicated that it might soon raise rates to combat inflation.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered strong absolute results during the fiscal year ended September 30, 2021.
Positive performance was driven by stock selection, particularly within the health care and industrials sectors. Sector allocation detracted from results during the period.
From an individual stock perspective, Xylem (smart water technology provider), Alfa Laval (fluid control), Arcadis (environmental engineering), Danaher (water diagnostic and treatment solutions), and Tetra Tech (environmental engineering) were the strongest absolute contributors to results.
In contrast, Fortune Brands (water efficiency building products), Kubota (water efficient agriculture equipment), Wienerberger (building materials), American States Water (U.S. Water utility), and Veolia (French water utility) were the largest absolute detractors from results. The Fund exited its position in American States Water during the reporting period.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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 Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Issuer Risk: The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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.
Water-Related Risk: Because the Fund focuses its investments in water-related companies, it is particularly affected by events or factors relating to this sector, which may increase risk and volatility.
Focused Investments: To the extent the Fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.
Foreign Investing: Investing in foreign securities subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Sustainable Investing: Because the Fund focuses on investments in companies that the Manager believes exhibit strong environmental, social, and corporate governance records, the Fund’s universe of investments may be smaller than that of other funds and broad equity benchmark indices.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
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AllianzGI Water Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain industries as a percentage of total investments as of September 30, 2021.
Machinery 36%
Water Utilities 11
Electronic Equipment, Instruments & Components 10
Building Products 10
Life Sciences Tools & Services 7
Healthcare Equipment & Supplies 5
Multi-Utilities 4
Commercial Services & Supplies 4
Chemicals 4
Construction & Engineering 4
Other (includes short-term investment) 5
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
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AllianzGI Water Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21

    1 Year 5 Years 10 Years
Class A shares at NAV2 29.41 % 11.83% 12.26%
Class A shares at POP3,4 22.29