APKPX — AllianzGI PerformanceFee Structured US Fixed Income Fund

APKPX Fund Overview

APKPX — AllianzGI PerformanceFee Structured US Fixed Income Fund is a US mutual fund managed by Virtus Strategy Trust, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Virtus Strategy Trust
• Category: Money Market
• Assets under management: $8.74M
• Ticker: APKPX
• SEC CIK: 0001423227
• SEC series ID: S000059665
• Share class ID: C000195323

APKPX Investment Objective and Strategy

AllianzGI PerformanceFee Structured US Fixed Income Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Virtus Strategy Trust.

Investment objective

The Fund seeks to earn total return that exceeds the return of the Bloomberg Barclays U.S. Aggregate Bond Index.

Principal investment strategy

The Fund pursues its objective of seeking to earn total return that exceeds the return of the Bloomberg Barclays U.S. Aggregate Bond Index (the Index) by maintaining long exposure to the U.S. fixed income market while employing an option overlay strategy that has the potential to enhance returns and/or control risk. The Fund typically seeks passive, relatively low-cost exposure to the Index. To achieve this exposure, the Fund typically invests in exchange traded funds (ETFs) and bond total return swaps that offer investment returns similar to the Index. The Fund also may invest directly in some or all of the securities included in the Index, seeking to replicate approximately the relative weighting of the securities in the Index. Additionally, to achieve the desired exposure to the Index, the Fund may invest in bond index futures and other instruments that would result in similar market exposure.

The Funds option overlay strategy consists primarily of three option position types, which will typically involve options on equity and volatility indices: (i) range-bound spreads, (ii) directional spreads and (iii) a hedging position type. A range-bound spread typically consists of selling a call and a put with a breakeven level of the zone being informed by proprietary statistical analysis. A range-bound spread is intended to be successful when the underlying index for the options trades within a specified range over a given timeframe. A directional spread typically consists of call spreads or put spreads that are designed to be successful when the index makes a larger-than-normal move to either the upside or the downside. The option portfolios hedging positions typically consist of long out-of-the- money puts that are intended primarily to protect the option portfolio against short-term market dislocations.

Under each option position type, the number of contracts bought and sold can be different in a spread (normally called a ratio spread), allowing the portfolio managers to tailor the risk-reward profile of the position, or they can be the same. To effect its option overlay strategy, the Fund may take numerous positions involving diverse strike prices, expirations and underlying assets. The number of such positions may fluctuate over time. The Funds portfolio managers generally seek to optimize the Funds option overlay strategy based on considerations that include (i) targeted positive return potential, (ii) structural risk protections, (iii) collateral management and (iv) flexibility to restructure profit zones where necessary. In addition to the option position types described above, the Fund may opportunistically utilize numerous other option and non-option positions that are consistent with the Funds investment objective.

All options are expected to be held until expiration unless the portfolio managers conclude that market conditions, redemptions or other circumstances make earlier closeout appropriate or necessary. The portfolio managers strategic decisions are informed in part by proprietary statistical analysis, which includes historical look-backs at the price movement of relevant indices. The Fund normally invests at least 80% of its net assets (plus borrowings made for investment purposes) in fixed income securities of U.S. issuers. Interests in ETFs or other funds that invest primarily in fixed income securities of U.S. issuers are considered fixed income securities of U.S. issuers for purposes of this 80% policy. Under normal circumstances, the options that the Fund purchases or writes will be on U.S.

equity and volatility indices that may include, without limitation, the S&P 500 Index, the Russell 2000 Index, the Nasdaq-100 Index, the CBOE Volatility Index, the iPath S&P 500 VIX Short-Term Futures ETN. The Fund may also take long or short positions in CBOE Volatility Index Futures. The Fund currently defines U.S. issuers as those issuers that are deemed to be United States companies for purposes of their geographical eligibility for inclusion in the Index. While the Fund intends to obtain fixed income market exposure through ETF investments under normal conditions, it retains the flexibility to invest directly in common and preferred stock, bonds, U.S. government securities, cash instruments, index futures, volatility futures, exchange traded funds, exchange traded notes, swaps (including variance swaps) and money market instruments, and may purchase and write options with respect to any of the foregoing.

Additionally, while the Fund expects to use options in connection with the investments described above, it retains the ability to use options and other derivatives for a range of other purposes, including leverage and gaining indirect exposure to certain investments. The Fund expects to hold cash and cash equivalents from time to time as a result of receiving option premiums or for other reasons.

APKPX Costs and Fees

APKPX costs about $37 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.37%
• Gross expense ratio: 0.89%
• Portfolio turnover: 3%
• Brokerage commissions: 4.04 bps of average net assets (SEC N-CEN)

APKPX Cashflows

Over the 12 months to 2020-03, AllianzGI PerformanceFee Structured US Fixed Income Fund had net outflows of $18.57M, from monthly SEC N-PORT filings.

APKPX Debt Constituents

No individual debt constituents are reported in AllianzGI PerformanceFee Structured US Fixed Income Fund's latest SEC N-PORT filing.

APKPX Prospectus and SEC Filings

Official AllianzGI PerformanceFee Structured US Fixed Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-02-19
• Prospectus (485BPOS) — filed 2019-02-22
• Prospectus (485BPOS) — filed 2018-02-16
• Portfolio holdings (N-PORT) — filed 2020-05-12
• Portfolio holdings (N-PORT) — filed 2020-02-25
• Portfolio holdings (N-PORT) — filed 2019-11-18
• Annual census (N-CEN) — filed 2019-12-09
• Annual census (N-CEN) — filed 2018-12-14

Related Funds

Other Money Market funds tracked on ABC INVEST:

• Emerald Growth Fund (HSPCX)
• Barings Active Short Duration Bond Fund (BXDIX)
• IVA Worldwide Fund (IVWAX)
• Stadion Tactical Growth Fund (ETFDX)
• BBH Partner Fund - Select Short Term Assets (BBSTX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.