Investment Policy Change and Objective Clarification of Various Allianz funds

15 May 2019

Notification of changes to the underlying funds of various Allianz funds:

1. J48 Allianz Emerging Asia Equity
2. R44 Allianz Total Return Asian Equity
3. R62 Allianz GEM Equity High Dividend
4. R63 Allianz Japan Equity

We have been notified by Allianz Global Investors Fund (“The Company”) of the decision to change the investment policy and clarify the objective of the underlying funds into which the above named mirror funds invest. This change will become effective from 10 June 2019 (the “Effective Date”).

Investment Policy Changes to the underlying funds of the above named mirror funds

The Company have stated the following, which has been extracted from the Shareholder Circular of the underlying funds into which the above named mirror funds invest:

(a) In respect of the underlying funds into which the above named mirror funds invest, the maximum proportion and the expected proportion of the Net Asset Value of the underlying fund that can be subject to each of Securities Financing Transactions, TRS / contract for differences (“CFDs”) will be set out individually to comply with the applicable legal and/or regulatory requirements.

(b) In respect of the underlying funds into which the above named mirror funds invest, the aggregate maximum exposure of 50% of each underlying funds Net Asset Value to Securities Financing Transactions and TRS will no longer apply, and the aggregate maximum exposure to Securities Financing Transactions for the underlying funds will be increased in order to provide the Management Company with increased flexibility of engaging in the Securities Financing Transactions.

As a result of the above changes, the underlying funds of the above named mirror funds will be subject to a higher degree of the following risks:

(i) Risks relating to securities lending transactions - Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.

(ii) Risks relating to repurchase agreements (repo) - In the event of the failure of the counterparty with which collateral has been placed, the underlying funds may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to inaccurate pricing of the collateral or market movements.

(iii) Risks relating to reverse repurchase agreements (reverse repo) - In the event of the failure of the counterparty with which cash has been placed, the underlying funds may suffer loss as there may be delay in recovering cash placed out or difficulty in realizing collateral or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to inaccurate pricing of the collateral or market movements. movements.

Change of definition of Taiwan restriction

To reflect the applicable legal and regulatory requirements in Taiwan, with effect from 27 April 2019, the Taiwan Restriction applicable to the underlying funds will be amended to provide that the total amount invested directly in China A-Shares and China Interbank Bond Markets shall not exceed 20% of the underlying funds Net Asset Value (up from 10% of an underlying funds Net Asset Value previously), or such other percentage as may be stipulated by the Taiwan Financial Supervisory Commission from time to time.

Clarification of the objective of the underlying fund of R147 Allianz Total Return Asian Equity

Please see below the objective clarification, applicable to the underlying fund of R147 Allianz Total Return Asian Equity, before and with effect from the Effective Date.

Objective of the underlying fund of R44 Allianz Total Return Asian Equity before the Effective Date	Objective of the underlying fund of R44 Allianz Total Return Asian Equity with effect from the Effective Date
Long-term capital growth by investing in the equity markets of the Republic of Korea, Taiwan, Thailand, Hong Kong, Malaysia, Indonesia, the Philippines, Singapore and the PRC.	Long-term capital growth and income by investing in the equity markets of the Republic of Korea, Taiwan, Thailand, Hong Kong, Malaysia, Indonesia, the Philippines, Singapore and the PRC.

Should you have any questions regarding these changes, please contact International Funds & Investments.