AllianzGI NFJ Div Interest & Prem
The Fund will invest in a diversified portfolio of dividend-paying common stocks and income-producing convertible securities. The Fund will also employ a strategy of writing call options on equity indexes in an attempt to generate gains from option premiums. The Equity Component is expected to represent approximately 75%, and the Convertible Component approximately 25% of the net proceeds of the IPO. Under normal circumstances, the Fund will invest at least 80% of its net assets in securities and other instruments that provide dividends, interest or option premiums. The Equity Component will ordinarily consist principally of dividend-paying common stocks, but may also include preferred stocks and dividend-paying real estate investment trusts. The assets of the Equity Component will be invested principally in securities of U.S issuers but may include American Depository Receipts. The Fund considers an initial selection universe consisting of the 1,000 largest publicly traded companies in the US to identify 150 to 200 companies that exhibit the best fundamental characteristics. Up to 10% of the components assets may be invested in foreign securities other than ADRs, including emerging market securities. The Convertible component will ordinarily consist of convertible securities, including synthetic convertible securities, and may include convertible securities that are of below investment grade quality. Up to 20% of the Convertible Component may consist of US dollar-denominated securities of foreign issuers based in developed countries. The Fund will employ a strategy of writing call options on equity indexes in an attempt to generate gains from option premiums. The underlying value of the indexes would be approximately equal to and will not exceed the value of the Equity Component, i.e. approximately 75% of the Funds net assets, subject to future fluctuations in the assets attributable to the Equity Component and annual rebalancing. The Fund may invest up to 15% of its total assets in illiquid securities.