00218197 Allianz Family of Funds 2018 Mutual Fund Tax Guide Dear Shareholder: This guide contains general tax information regarding the Allianz Family of Funds. Although it may help you with your tax return, it is not designed to provide tax guidance or advice. Due to the complexity of tax laws, you should consult a professional tax advisor to determine how the information contained in this guide may apply to your specific tax situation. In this guide, you will find the following: Cost Basis Explained... 2 Important Information about your Capital Gain and Dividend Distributions... 2 Other Important Key Terms... 2 2018 Treasury Interest Information... 2 2018 Corporate Dividends Received Deduction Information... 3 2018 Foreign Tax Credit Information... 4 Understanding your Tax Form... 5 1099-B... 5 1099-DIV... 6 1099-R... 7 For more information, please refer to the Internal Revenue Service (IRS) website at www.irs.gov or visit our Tax Center at us.allianzgi.com. Should you require additional assistance, you may contact an Investor Services Representative at 800-988-8380 (for investors in retail class shares) or 800-498-5413 (for investors in institutional class shares). Sincerely, Allianz Family of Funds Page 1 Allianz Family of Funds 2018 Mutual Fund Tax Guide
Cost Basis Explained Cost Basis Selling or exchanging shares of a mutual fund may result in a capital gain or loss that is required to be reported to the IRS. To calculate the gain or loss from such transactions, you will first need to determine the "cost basis" of the shares. Your cost basis is the original price you paid to acquire the shares, plus any added expenses such as commissions. If you made a redemption during 2018, certain transaction details including your cost basis may be found on your Form 1099-B. Changes to Cost Basis Reporting Effective January 1, 2012, the Internal Revenue Service (IRS) implemented new rules regarding cost basis reporting that affects mutual fund shares purchased and subsequently sold during and after 2012. As part of the requirement, mutual fund companies must provide cost basis information to shareholders and the IRS for these shares, also referred to as "covered shares". In order to provide you and the IRS with accurate cost basis reporting, you may have been asked to select a cost basis method for your account. A cost basis method is the process used for selecting shares to sell that were purchased at varying prices and times. The methods available at Allianz Funds are Average Cost (ACST), First in First out (FIFO), Last in First out (LIFO), High Cost (HIFO), Low Cost (LOFO), Loss/Gain Utilization (LGUT) and Specific Lot Identification (SLID). If you did not select a method, the default method of Average Cost may have been used to calculate your cost basis. Any shares that were acquired prior to 2012, or "non-covered shares", are exempt from this new reporting requirement. Because mutual funds are not required to report on these shares, you may use any acceptable method to calculate and report gains and losses when filing your tax return. For certain eligible accounts with non-covered shares, we have provided the cost basis. To learn more about cost basis and how these rules may affect your mutual fund investment, please consult a professional tax advisor. Important lnformation about your Capital Gain and Dividend Distributions In general, capital gain and dividend generated from mutual fund shares that are held in a taxable account or in certain non-retirement accounts are subject to income tax. This information is reported on the Form 1099-DIV. Dividend Distributions Dividend are paid to shareholders by a mutual fund when and interest are earned from the Fund's underlying securities. This information is reported on the Form 1099-DIV, regardless of whether the shareholder receives the amount in cash or the money is reinvested. Please refer to the section titled, "Understanding your Tax Form" for more information. Capital Gain Distributions Mutual Funds may realize a net capital gain as a result of selling securities within the fund's portfolio. Like dividend, these gains are passed through to shareholders in the form of a capital gain. For tax reporting purposes, capital gain are classified as either long-term or short-term. Long-term capital gains are net capital gains generated from the sale of a fund's underlying securities held for more than one year; these gains are taxed at lower tax rates than those which apply to ordinary income. Short-term capital gains are net capital gains generated from the sale of a fund's underlying securities held for one year or less. These gains are taxable as ordinary income. For more information on the tax treatment of dividend and capital gain, please consult a tax advisor for assistance or visit the website for Internal Revenue Service, www.irs.gov. Other Important Key Terms Backup Withholding Rule If you did not provide us with a valid social security or tax identification number, the IRS requires that we apply backup withholding tax to certain types of investment payments. The backup withholding amount of 28% is paid directly to the IRS on your behalf and is reported to you on your Form 1099-B or 1099-DIV. Wash-Sale Rule The Internal Revenue code generally prohibits taxpayers from claiming a loss on the sale of an investment in a wash sale. A wash sale occurs when the sale of an investment results in a loss, and within 30 days before or after the sale, a same investment is repurchased. Please be aware that a loss realized during the month of December due to a redemption may be disallowed if a subsequent repurchase occurs in the following January that falls within the "wash-sale" window. Page 2 Allianz Family of Funds 2018 Mutual Fund Tax Guide 2018 Treasury Interest Treasury Interest Information Income from U.S. Government securities may be exempt from state and/or local taxation. Indicated below is (are) the mutual fund(s) that generated ordinary attributable to U.S. government securities. The chart below reflects the percentage of income derived from U.S. government securities. Mutual Fund Income Generated by U.S. Government Securities for 2018 AllianzGI Advanced Core Bond Portfolio 24.24% AllianzGI Core Bond Fund 33.84% AllianzGI Core Plus Bond Fund 31.31% AllianzGI Global Allocation Fund 0.18% AllianzGI Global Dynamic Allocation Fund 5.89% AllianzGI PerformanceFee Managed Futures Strategy Fund 38.76% AllianzGI Short Term Bond Fund 8.25% In order to claim an exemption, certain states require that at least 50% of a fund's assets at the close of each quarter of the fund's tax year to consist of federal obligations. None of the mutual funds in the Allianz Family of Funds met this threshold during 2018. Please consult a tax advisor regarding how this information may affect your specific tax situation.
2018 Corporate Dividends Corporate Dividends Received Deduction Received Deduction Information For the benefit of our corporate shareholders, the percentage of paid out of ordinary income during 2018, that qualify for the corporate -received deduction are shown in the chart below. Mutual Fund Corporate Dividends Received AllianzGI Best Styles Global Equity Fund 31.79% AllianzGI Best Styles Global Managed Volatility Portfolio 29.02% AllianzGI Best Styles U.S. Equity Fund 35.12% AllianzGI Convertible Fund 6.56% AllianzGI Emerging Markets Consumer Fund 5.73% AllianzGI Emerging Markets Opportunities Fund 0.21% AllianzGI Focused Growth Fund 100.00% AllianzGI Global Allocation Fund 16.38% AllianzGI Global Dynamic Allocation Fund 30.94% AllianzGI Global Natural Resources Fund 82.44% AllianzGI Global Small-Cap Fund 11.97% AllianzGI Global Small-Cap Opportunities Portfolio 13.84% AllianzGI Global Sustainability Fund 37.19% AllianzGI Global Water Fund 75.05% AllianzGI Health Sciences Fund 70.61% AllianzGI Income & Growth Fund 9.58% AllianzGI Mid-Cap Fund 22.18% AllianzGI NFJ Dividend Value Fund 81.92% AllianzGI NFJ Emerging Markets Value Fund 0.95% AllianzGI NFJ International Value Fund 1.37% AllianzGI NFJ Large-Cap Value Fund 100.00% AllianzGI NFJ Mid-Cap Value Fund 100.00% AllianzGI NFJ Small-Cap Value Fund 63.27% AllianzGI Preferred Securities and Income Fund 10.26% AllianzGI Retirement 2020 Fund 15.19% AllianzGI Retirement 2025 Fund 16.51% AllianzGI Retirement 2030 Fund 21.48% AllianzGI Retirement 2035 Fund 21.80% AllianzGI Retirement 2040 Fund 23.59% AllianzGI Retirement 2045 Fund 24.21% AllianzGI Retirement 2050 Fund 18.37% AllianzGI Retirement 2055 Fund 23.59% AllianzGI Small-Cap Fund 30.98% AllianzGI Technology Fund 12.32% Page 3 Allianz Family of Funds 2018 Mutual Fund Tax Guide
2018 Foreign Tax Credit 2018 Foreign Tax Credit Information The following funds have elected to pass through the credit for taxes paid in foreign countries. As a result, you may be in the position to take either a foreign tax credit or a deduction with respect to the taxes paid by a fund. Please note that your ability to claim foreign tax credit may be subject to certain limitations. Please consult a tax advisor regarding how this information may affect your specific tax situation. The per share amounts of gross foreign sourced income and foreign taxes paid during 2018 are as follows: Page 4 Allianz Family of Funds 2018 Mutual Fund Tax Guide Mutual Fund Gross Foreign Source Income Foreign Tax AllianzGI Best Styles International Equity Fund $0.575253 $0.057096 AllianzGI Emerging Markets Consumer Fund 0.522342 0.065136 AllianzGI Emerging Markets Debt Fund March 22, 2018 0.336687 0.000322 June 21, 2018 0.303591 0.000291 September 20, 2018 0.240214 0.000230 December 20, 2018 0.144890 0.000139 AllianzGI Emerging Markets Opportunities Fund 0.774277 0.086841 AllianzGI Emerging Markets Small-Cap Fund 0.619950 0.074866 AllianzGI Europe Equity Dividend Fund March 22, 2018 0.209542 0.021640 June 21, 2018 0.204552 0.021125 September 20, 2018 0.243713 0.025169 December 20, 2018 0.352639 0.036418 AllianzGI International Growth Fund 0.176200 0.017758 AllianzGI International Small-Cap Fund 1.159244 0.119312 AllianzGI NFJ Emerging Markets Value Fund March 22, 2018 0.020616 0.002256 June 21, 2018 0.176135 0.019277 September 20, 2018 0.180232 0.019726 December 20, 2018 0.196307 0.021485 AllianzGI NFJ International Small-Cap Value Fund 0.823900 0.061392 AllianzGI NFJ International Value Fund March 22, 2018 0.113194 0.010512 June 21, 2018 0.518344 0.048138 September 20, 2018 0.065505 0.006083 December 20, 2018 0.222828 0.020694 AllianzGI Global Allocation Fund March 22, 2018 0.007432 0.000203 June 21, 2018 0.004302 0.000117 September 20, 2018 0.003926 0.000107 December 27, 2018 0.034383 0.000938 AllianzGI Multi Asset Income Fund January 18, 2018 0.013497 0.000638 February 22, 2018 0.012982 0.000614 March 22, 2018 0.013373 0.000633 April 19, 2018 0.012828 0.000607 May 17, 2018 0.012812 0.000606 June 21, 2018 0.012708 0.000601 July 19, 2018 0.012730 0.000602 August 16, 2018 0.012648 0.000598 September 20, 2018 0.013112 0.000620 October 18, 2018 0.014529 0.000687 November 15, 2018 0.012949 0.000613 December 27, 2018 0.020878 0.000988 AllianzGI Retirement 2020 Fund 0.009734 0.000844 AllianzGI Retirement 2025 Fund 0.006275 0.000561 AllianzGI Retirement 2030 Fund 0.010688 0.001291 AllianzGI Retirement 2035 Fund 0.010506 0.001269 AllianzGI Retirement 2040 Fund 0.009897 0.001195 AllianzGI Retirement 2045 Fund 0.007661 0.000925 AllianzGI Retirement 2050 Fund 0.007920 0.000956 AllianzGI Retirement 2055 Fund 0.006997 0.000845
Understanding your Tax Form Tax Form 1099-B 1099-DIV 1099-R If shares of a fund in an account other than a retirement account (401(k), IRA etc.) are sold, you will receive a 1099-B. This form will also contain cost basis information for shares purchased and subsequently sold on or after January 1, 2012. However, if your shares have been transferred to Allianz Funds or have been converted, we may be unable to provide you with cost basis information. Used to report all calendar year distribution payments. This information must be reported to the IRS whether the amounts are received or reinvested. You can expect to receive a 1099-DIV if you received a distribution of $10 or more from a fund. Reports any (including rollovers, recharacterizations, and conversions) taken from a retirement account, such as an IRA, or a qualified retirement plan, such as a pension, profit sharing, or 401(k) plan. Form 1099-B Each time mutual fund shares are sold or redeemed, a capital gain or loss may be realized if the selling price is different than the cost basis of the shares sold. Below is an example of some information you will find on a 1099-B form. Corrected (if checked) (OMS) No.1545-0715) FORM 1099-B PROCEEDS FROM BROKER & BARTER EXCHANGE TRANSACTION 2018 Short-term transactions for which basis is reported to the IRS; report on Form 8949, Part I with Box A checked. (1a) of Property Transaction Share Price Quantity Sold (1b) Date Acquired (1c) Date Sold or disposed (1d) Net proceeds (1e) Cost or other basis (1f/1g) Wash sale adjustments (4) Federal income tax (5) Non-covered security (14) name (15) identification no. (16) tax Cost basis method Gain/ (Loss) Fund: ABC Mutual Fund Fund-Acct. no: 123-00000000001 PAYER'S Fed. ID no: 11-1111111 CUSIP no: 123456789 SHARES REDEEMED 0.00 0.00 xx/xx/xxxx xx/xx/xxxx 0.00 0.00 0.00 0.00 YES XX 000000 0.00 ACST 0.00 Long-term transactions for which basis is reported to the IRS; report on Form 8949, Part II with Box D checked. (1a) of Property Transaction Share Price Quantity Sold (1b) Date Acquired (1c) Date Sold or disposed (1d) Net proceeds (1e) Cost or other basis (1f/1g) Wash sale adjustments (4) Federal income tax (5) Non-covered security (14) name (15) Identification no. (16) tax Cost basis method Gain/ (Loss) Fund: ABC Mutual Fund Fund-Acct. no: 123-00000000001 PAYER'S Fed. ID no: 11-1111111 CUSIP no: 123456789 SHARES REDEEMED 0.00 0.00 xx/xx/xxxx xx/xx/xxxx 0.00 0.00 0.00 0.00 YES XX 000000 0.00 ACST 0.00 Box 1a of Property Provides the name of the Allianz Fund being reported. This box also identifies the transaction type. 1b Date Acquired Shows the acquisition date of any shares sold. This box may be blank if shares were purchased on various dates or if the acquisition date cannot be determined. 1c Date sold or disposed Shows the trade date of the sale. 1d Net proceeds Reflects the net proceeds from the sale or exchange of fund shares. 1e 1f/1g 4 Cost or other basis Wash sale adjustments Federal income tax 5 Non-covered security Represents original the cost of your shares that were sold during 2018. The information presented in the box must be reported to the IRS for shares covered under the cost basis regulations. However, you are not required to use this information for "non-covered" shares, and it will not be reported to the IRS. If cost basis cannot be determined, this section will be left blank. Please refer to the section titled, "Cost Basis Explained" for more information. This box shows the amount of nondeductible loss in a wash sale transaction. Please note that any loss realized during December due to redemption, may be "disallowed" if a subsequent repurchase occurs in January of the following year, in which the repurchase falls within the "30-day wash sale window". Please note "wash-sale" rules are complex; you should consult a professional tax advisor for information on how this may affect your specific tax situation. If you did not provide us with a correct Social Security or Tax Identification number, we are required to withhold a percentage of the gross proceeds from the sale of any shares. This box indicates the portion of the gross proceeds paid to the IRS under the Backup Tax Withholding Rule. This amount should be included in your tax return as tax. Indicates "YES" if the shares sold were not covered under the cost basis regulations or will remain blank if the shares sold are covered. 14 16 tax information Provides state/local tax information. Gain/(Loss) The information provided in this section is for informational purposes only, and therefore is not provided to the IRS. It details whether the transaction resulted in the gain or loss. Please refer to the section titled, "Cost Basis Explained" for more information. Page 5 Allianz Family of Funds 2018 Mutual Fund Tax Guide
Form 1099-DIV The Form 1099-DIV is used to report all calendar year paid to you. This information is filed with the IRS, and therefore must be reported on your federal income tax return regardless of whether the were received as cash or reinvested. You can expect to receive a 1099-DIV if you received a distribution of $10 or more from an Allianz mutual fund (except if you hold a retirement plan account). Provided below is a sample 1099-DIV tax statement, and some other information you may find helpful. FORM 1099-DIV DIVIDENDS AND DISTRIBUTIONS 2018 (1a) Total ordinary (1b) Qualified (2a) Total capital gain (2b) Unrecap. sec. 1250 gain (2d) Collectibles (28%) gain (3) Nondividend (4) Federal income tax (6) Foreign tax paid (8) Cash liquidation (10) Exemptinterest (11) Specified private activity bond interests (12) (13) identification no. (14) tax Fund: ABC Mutual Fund Account Number: 123456789 PAYER'S FED. ID no. 987654321 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 xx xxxxx 0.00 1a 1b 2a 3 4 Box Total ordinary Qualified Total capital gain Non-dividend Federal income tax Shows total ordinary (including short-term capital gains) that are taxable. This portion indicates the amount identified in Box 1a that may be eligible for the reduced capital gain tax rate. Represents the amount of the fund's that are taxable as long-term capital gains. Represents the total paid from capital that are not subject to federal or state income tax. When you redeem or exchange shares, the cost basis is reduced by the amount in this box. Please consult your tax advisor to determine how this information affects your specific tax situation. Indicates the amount by the fund on certain that are deposited with the IRS on your behalf. You may be subject to backup withholding if you did not provide your social security or taxpayer identification number. This amount should be included as tax on your tax return. 6 Foreign tax paid Represents the portion of foreign taxes paid by a mutual fund on your behalf. You may have the option to claim foreign tax paid as an itemized deduction or credit. Please refer to the section titled, "Foreign Tax Credit Information" for details. 8 Cash liquidation Shows cash liquidation 12-14 Tax Information Provides state/local tax information Page 6 Allianz Family of Funds 2018 Mutual Fund Tax Guide
Form 1099-R The Form 1099-R reports taken from a retirement account, such as an IRA, or from a qualified retirement plan, such as a pension, profit sharing or 401(k) plan. You can expect to receive a 1099-R if you have done one of the following: received a full or partial distribution, executed a direct rollover, removed excess contributions from your self-directed retirement account or completed a conversion and/or recharacterization. Provided below is a sample 1099-R tax statement, and some other information you may find helpful. FORM 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2018 (1) Gross distribution (2a) Taxable amount (2b) Taxable amount not determined Total Distribution (4) Federal income tax (7) Distribution codes IRA/SEP/SIMPLE (12) tax Fund: ABC Mutual Fund Account Number: 123456789 PAYER'S FED. ID no. 987654321 /Payer's state no.: XX/123456789-123 0.00 0.00 X X 0.00 XX 0.00 1 2a 2b 4 7 12 Box Gross distribution Taxable amount Taxable amount not determined Total distribution Federal income tax Distribution code(s) IRA/SEP/ SIMPLE tax Represents the total amount distributed from your retirement account to you by Allianz Funds during 2018. Represents the taxable portion of the amount identified in Box 1. If this box is empty, please refer to Box 2b. If this box is checked, Allianz Funds did not have sufficient information required to calculate your taxable amount. Please consult with your tax advisor to determine how this information affects your specific tax situation. If this box is checked, the distribution was a total distribution that closed out your account. Represents the total amount of federal income tax during 2018. This amount should be included in your tax return as tax. Identifies the type of distribution you received. Please refer to the last page of your tax statement under the section titled, "Instructions for Recipient of Form 1099-R" for the descriptions associated with each code. If this box is checked, you have received a traditional IRA, SEP, or SIMPLE distribution. Indicates state or local taxes. Allianz Family of Funds does not provide legal or tax advice. Please consult with your tax advisor to determine how the information contained in this guide may affect your specific tax situation. Investors should consider the investment objectives, risks, charges and expenses of this Fund carefully before investing. This and other information is contained in the Fund's prospectus, or summary prospectus, which may be obtained by contacting your financial advisor, by visiting us.allianzgi.com or by calling one of the numbers above. Please read the prospectus carefully before you invest. Allianz Family of Funds are distributed by Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY 10019-7585, us.allianzgi.com. AllianzGI Best Styles Global Managed Volatility Portfolio, AllianzGI Global Small-Cap Opportunities Portfolio, and the AllianzGI Advanced Core Bond Portfolio (the "Portfolios") are investment portfolios of the AllianzGI Institutional Multi-Series Trust (the "Trust"). The Trust is an open-end investment company and operates as a "series investment company" that may consist of separate series of investment portfolios, including the Portfolios. Shares of each Portfolio are not registered for public offer or sale under the Securities Act of 1933, as amended (the "Securities Act"), and such shares are issued solely in private placement transactions that do not involve any "public offering" within the meaning of Section 4(a)(2) of the Securities Act. In issuing shares of the Portfolios, the Trust relies on the recently adopted Rule 506(c) of Regulation D under the Securities Act ("Regulation D"), which broadens the nature of information that may be made publicly available about a private placement by lifting any prohibition on "general solicitation" for certain qualifying Regulation D offerings. Page 7 Allianz Family of Funds 2018 Mutual Fund Tax Guide
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