ALLIANZ VARIABLE INSURANCE PRODUCTS TRUST

This report is submitted for the general information of the shareholder of the Fund. The report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus, which contains details concerning the sales charges and other pertinent information.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014 the AZL^® BlackRock Capital Appreciation Fund returned 9.11%. That compared to a 13.05% total return for its benchmark, the Russell 1000^® Growth Index¹.

U.S. equities posted solid gains for the 12-month period under review as the U.S. economy continued to gain strength, with better-than-expected job growth, improved consumer confidence and healthier business spending. Strong corporate fundamentals and the Federal Reserve’s accommodative monetary policy further supported stock market gains. Together, these forces helped the broad-market S&P 500 Index to post its third consecutive year of double-digit returns, ending the period up 13.69%.

The period started and ended with high market volatility, triggered in part by weakening global economic growth, shifting expectations about Federal Reserve policy, and geopolitical flare-ups, as well as the collapse of oil prices in recent months. The resulting flight to quality by investors benefited defensive sectors such as utilities and health care.

The Fund underperformed its benchmark during the 12-month period. The largest detractor from relative performance at the sector level was an overweight position in consumer discretionary, particularly among Internet and catalog retailers. The position in an American travel website was the largest individual detractor in the sector, as the company announced disappointing earnings and operational results late in the period. Stock selection in the information technology also detracted from performance, as did telecommunication services, where a Japanese Internet and telecom conglomerate represented the top portfolio detractor. Weak results in one of its subsidiaries dragged on investor confidence.*

Growth of $10,000 Investment

LOGO

The chart above represents a comparison of a hypothetical investment in the Fund versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains in the Fund.

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (4/29/05)
AZL^® BlackRock Capital Appreciation Fund		9.11	%		18.31	%		12.40	%		7.99	%
Russell 1000^® Growth Index		13.05	%		20.26	%		15.81	%		9.48	%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.Allianzlife.com.


Expense Ratio	Gross
AZL^® BlackRock Capital Appreciation Fund		1.11	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.70%. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The total return of the Fund does not reflect the effect of any insurance charges, the annual maintenance fee or the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Such charges, fees and tax payments would reduce the performance quoted.

The Fund’s performance is measured against the Russell 1000^® Growth Index, an unmanaged index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL BlackRock Capital Appreciation Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.

The Actual Expense 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.

The Hypothetical Expense table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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 this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


Shares			Fair Value

	Common Stocks (99.6%):
	Aerospace & Defense (2.1%):
	52,748	Precision Castparts Corp.	$	12,705,938

	Airlines (1.8%):
	142,471	Spirit Airlines, Inc.*		10,767,958

	Auto Components (0.7%):
	57,986	Delphi Automotive plc		4,216,742

	Beverages (0.6%):
	36,338	Constellation Brands, Inc., Class A*		3,567,301

	Biotechnology (8.3%):
	61,627	Gilead Sciences, Inc.*		5,808,961
	27,107	Regeneron Pharmaceuticals, Inc.*^		11,120,647
	132,093	United Therapeutics Corp.*^		17,104,723
	126,108	Vertex Pharmaceuticals, Inc.*		14,981,630

				49,015,961

	Chemicals (0.6%):
	33,526	Ecolab, Inc.		3,504,138

	Consumer Finance (1.4%):
	124,815	Discover Financial Services		8,174,134

	Diversified Financial Services (1.4%):
	86,425	Moody’s Corp.		8,280,379

	Food & Staples Retailing (1.5%):
	42,748	CVS Caremark Corp.		4,117,060
	92,877	Whole Foods Market, Inc.^		4,682,858

				8,799,918

	Food Products (0.8%):
	46,361	Hershey Co.		4,818,299

	Health Care Equipment & Supplies (0.5%):
	5,532	Intuitive Surgical, Inc.*		2,926,096

	Health Care Providers & Services (2.9%):
	140,870	Express Scripts Holding Co.*		11,927,463
	36,860	Humana, Inc.		5,294,202

				17,221,665

	Health Care Technology (0.8%):
	32,891	athenahealth, Inc.*^		4,792,219

	Hotels, Restaurants & Leisure (2.4%):
	116,896	Starbucks Corp.^		9,591,317
	32,812	Wynn Resorts, Ltd.		4,881,113

				14,472,430

	Insurance (1.0%):
	39,456	Berkshire Hathaway, Inc., Class B*		5,924,318

	Internet & Catalog Retail (6.4%):
	108,909	Alibaba Group Holding, Ltd., ADR*(a)		11,320,001
	3,070	Alibaba Group Holding, Ltd.*		319,096
	34,545	Netflix, Inc.*^		11,800,917
	192,543	TripAdvisor, Inc.*^		14,375,261

				37,815,275

	Internet Software & Services (15.4%):
	63,079	Baidu, Inc., ADR*		14,380,120
	331,764	Facebook, Inc., Class A*		25,884,228


Shares			Fair Value

	Common Stocks, continued
	Internet Software & Services, continued
	28,382	Google, Inc., Class A*	$	15,061,192
	68,082	LinkedIn Corp., Class A*		15,639,116
	386,534	Yahoo!, Inc.*		19,523,832

				90,488,488

	IT Services (7.0%):
	49,171	Alliance Data Systems Corp.*^		14,065,365
	105,167	Visa, Inc., Class A^		27,574,787

				41,640,152

	Media (9.7%):
	370,738	Liberty Global plc, Class A*		18,612,901
	93,335	Time Warner Cable, Inc.		7,972,676
	568,727	Twenty-First Century Fox, Inc.^		21,841,960
	94,768	Walt Disney Co. (The)		8,926,198

				57,353,735

	Multiline Retail (2.0%):
	165,217	Dollar General Corp.*		11,680,842

	Oil, Gas & Consumable Fuels (3.9%):
	98,726	Concho Resources, Inc.*		9,847,919
	841,419	Palantir Technologies, Inc.*(a)		6,748,180
	27,842	Pioneer Natural Resources Co.		4,144,282
	43,727	Range Resources Corp.^		2,337,208

				23,077,589

	Pharmaceuticals (10.1%):
	372,197	Abbvie, Inc.		24,356,571
	48,926	Mallinckrodt plc*		4,845,142
	75,543	Perrigo Co. plc		12,627,768
	128,683	Valeant Pharmaceuticals International, Inc.*		18,415,824

				60,245,305

	Real Estate Investment Trusts (REITs) (1.0%):
	76,236	Crown Castle International Corp.		5,999,773

	Road & Rail (3.2%):
	159,898	Union Pacific Corp.		19,048,649

	Software (5.8%):
	121,635	Oracle Corp.		5,469,926
	274,500	Salesforce.com, Inc.*^		16,280,595
	83,371	VMware, Inc., Class A*^		6,879,775
	67,630	Workday, Inc., Class A*^		5,519,284

				34,149,580

	Specialty Retail (1.2%):
	66,611	Home Depot, Inc. (The)		6,992,157

	Technology Hardware, Storage & Peripherals (4.4%):
	235,766	Apple, Inc.		26,023,851

	Textiles, Apparel & Luxury Goods (2.7%):
	141,945	Lululemon Athletica, Inc.*^		7,919,112
	106,973	Michael Kors Holdings, Ltd.*^		8,033,672

				15,952,784

	Total Common Stocks (Cost $488,834,383)			589,655,676


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Securities Held as Collateral for Securities on Loan (22.6%):
$	133,898,895	Allianz Variable Insurance Products Securities Lending Collateral Trust(b)	$	133,898,895

	Total Securities Held as Collateral for Securities on Loan (Cost $133,898,895)			133,898,895

	Unaffiliated Investment Company (0.2%):
	953,298	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(c)		953,298

	Total Unaffiliated Investment Company (Cost $953,298)			953,298

	Total Investment Securities (Cost $623,686,576)(d) — 122.4%			724,507,869
	Net other assets (liabilities) — (22.4)%			(132,362,034	)

	Net Assets — 100.0%		$	592,145,835

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	623,686,576

Investment securities, at value*	$	724,507,869
Interest and dividends receivable		242,544
Receivable for capital shares issued		64,610
Receivable for investments sold		3,271,789
Reclaims receivable		354
Prepaid expenses		4,947

Total Assets		728,092,113

Liabilities:
Payable for investments purchased		1,033,909
Payable for capital shares redeemed		479,577
Payable for collateral received on loaned securities		133,898,895
Manager fees payable		353,516
Administration fees payable		13,500
Distribution fees payable		126,255
Custodian fees payable		6,152
Administrative and compliance services fees payable		1,762
Trustee fees payable		35
Other accrued liabilities		32,677

Total Liabilities		135,946,278

Net Assets	$	592,145,835

Net Assets Consist of:
Capital	$	377,628,568
Accumulated net investment income/(loss)		—
Accumulated net realized gains/(losses) from investment transactions		113,696,013
Net unrealized appreciation/(depreciation) on investments		100,821,254

Net Assets	$	592,145,835

Shares of beneficial interest (unlimited number of shares authorized, no par value)		31,787,842
Net Asset Value (offering and redemption price per share)	$	18.63

*	Includes securities on loan of $130,413,335.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	3,997,735
Income from securities lending		130,624
Foreign withholding tax		(1,576	)

Total Investment Income		4,126,783

Expenses:
Manager fees		4,963,456
Administration fees		165,131
Distribution fees		1,551,077
Custodian fees		28,519
Administrative and compliance services fees		8,550
Trustee fees		32,973
Professional fees		34,343
Shareholder reports		33,593
Other expenses		16,538

Total expenses before reductions		6,834,180
Less expenses voluntarily waived/reimbursed by the Manager		(620,426	)
Less expenses paid indirectly		(7,550	)

Net expenses		6,206,204

Net Investment Income/(Loss)		(2,079,421	)

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		116,923,544
Change in net unrealized appreciation/depreciation on investments		(67,502,717	)

Net Realized/Unrealized Gains/(Losses) on Investments		49,420,827

Change in Net Assets Resulting From Operations	$	47,341,406

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL BlackRock Capital Appreciation Fund (the “Fund”), and 30 are presented in separate reports.

The Trust is authorized to issue an unlimited number of shares of the Fund without par value. Shares of the Fund are available through the variable annuity contracts and variable life insurance policies offered through the separate accounts of participating insurance companies.

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund may enter into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects the risk of loss to be remote.

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform with U.S. generally accepted accounting principles (“U.S. GAAP”). The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Investment transactions are recorded not later than on the business day following trade date. However, for financial reporting purposes, investment transactions are accounted for on trade date. Net realized gains and losses on investments sold and on foreign currency transactions are recorded on the basis of identified cost. Interest income is recorded on the accrual basis and includes, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date except in the case of foreign securities, in which case dividends are recorded as soon as such information becomes available.

The Fund may own shares of real estate investment trusts (“REITs”) which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital, are recorded as a reduction to the cost of the individual REIT.

The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the fair value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included in the net realized and unrealized gain or loss on investments and foreign currencies. Income received by the Fund from sources within foreign countries may be subject to withholding and other income or similar taxes imposed by such countries. The Funds accrue such taxes, as applicable, based on their current interpretation of tax rules in the foreign markets in which they invest.

Dividends to shareholders are recorded on the ex-dividend date. The Fund distributes its dividends from net investment income and net realized capital gains, if any, on an annual basis. The amount of dividends from net investment income and from net realized gains is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These “book/tax” differences are either temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital, net operating loss, reclassification of certain market discounts, gain/loss, paydowns, and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales and post October losses) do not require reclassification. Dividends to shareholders that exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.

Expenses directly attributable to the Fund are charged directly to the Fund, while expenses attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or some other reasonable method. Expenses which are attributable to more than one Trust are allocated across the Allianz Variable Insurance Products and Allianz Variable Insurance Products Fund of Funds Trusts based upon relative net assets or another reasonable basis. Allianz Investment Management LLC (the “Manager”), serves as the investment manager for the Trust and the Allianz Variable Insurance Products Fund of Funds Trust.

To generate additional income, the Fund may lend up to 33¹/₃% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $44.9 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $12,960 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

Certain Funds of the Trust participate in a commission recapture program. The Fund will utilize the recaptured commissions to pay for, in whole or part, certain expenses of the Fund, excluding investment advisory fees. Any amounts received by the Fund, if applicable, are disclosed as “Expenses paid indirectly” on the Statement of Operations. The Fund ceased participation in the program in June 2014.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Capital Management, Inc. (“BlackRock Capital”), BlackRock Capital provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Any amounts contractually waived or reimbursed by the Manager in a particular fiscal year will be subject to repayment by the Fund to the Manager to the extent that from time to time through the next three fiscal years the repayment will not cause the Fund’s expenses to exceed the lesser of the stated limit at the time of the waiver or the current stated limit. Any amounts recouped by the Manager during the year are reflected on the Statement of Operations as “Recoupment of prior expenses reimbursed by the Manager.” At December 31, 2014, there were no remaining contractual reimbursements that are subject to repayment by the Fund in subsequent years.

In addition, the Manager may voluntarily waive or reimburse additional fees in order to maintain more competitive expense ratios. Any voluntary waivers or reimbursements are not subject to repayment in subsequent years. Information on the total amount waived/reimbursed by the Manager or repaid to the Manager by the Fund during the year can be found on the Statement of Operations.

Pursuant to separate agreements between the Funds and the Manager, the Manager provides a Chief Compliance Officer (“CCO”) and certain compliance oversight and regulatory filing services to the Trust. Under these agreements the Manager is entitled to an amount equal to a portion of the compensation and certain other expenses related to the individuals performing the CCO and compliance oversight services, as well as $100 per hour for time incurred in connection with the preparation and filing of certain documents with the Securities and Exchange Commission. The fees are paid to the Manager on a quarterly basis. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administrative and compliance services fees.”

0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

Allianz Life Financial Services, LLC (“ALFS”), an affiliate of the Manager, serves as distributor of the Fund and receives 12b-1 fees directly from the Fund, plus a Trust-wide annual fee of $42,500, paid by the Manager from its profits and not by the Trust, for recordkeeping and reporting services.

The Trust has adopted a distribution and service plan in conformance with Rule 12b-1 of the 1940 Act. Pursuant to this plan, the Fund is authorized to pay certain fees for the sale and distribution of its shares and services provided to its shareholders at an annual rate not to exceed 0.25% of the Fund’s average daily net assets. These fees are reflected on the Statement of Operations as “Distribution fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $7,874 was paid from the Fund relating to these fees and expenses.

Certain Officers and Trustees of the Trust are affiliated with the Manager or the Administrator. Such Officers (except for the Trust’s CCO as noted above) and Trustees receive no compensation from the Trust for serving in their respective roles. For their service to the Trust and to the Allianz Variable Insurance Products Fund of Funds Trust, each non-interested Trustee receives a $163,000 annual Board retainer and the Lead Director receives an additional $24,450 annually. In addition, the Trustees are reimbursed for certain expenses associated with attending Board meetings. Compensation to the Trustees is allocated between the Trust and the Allianz Variable Insurance Products Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2014, actual Trustee compensation was $1,155,670 in total for both trusts.

The valuation techniques employed by the Fund, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund’s investments are summarized in the three broad levels listed below:

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Fund determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments.

Debt and other fixed income securities are generally valued at an evaluated bid price provided by an independent pricing source approved by the Trustees. To value debt securities, pricing services may use various pricing techniques which take into account appropriate factors such as market activity, yield, quality, coupon rate, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes. Short term securities of sufficient credit quality with sixty days or less remaining until maturity may be valued at amortized cost, which approximates fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Other assets and securities for which market quotations are not readily available, or are deemed unreliable are valued at fair value as determined in good faith by the Trustees or persons acting on the behalf of the Trustees. Fair value pricing may be used for significant events such as securities whose trading has been suspended, whose price has become stale or for which there is no currently available price at the close of the NYSE. Depending on the source and relative significance of valuation inputs, these instruments may be classified as Level 2 or Level 3 in the fair value hierarchy. The Fund utilizes a pricing service to assist in determining the fair value of securities when certain significant events occur that may affect the value of foreign securities.

In accordance with procedures adopted by the Trustees, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Fund’s net asset value is calculated. Management identifies possible fluctuation in international securities by monitoring the increase or decrease in the value of a designated benchmark index. In the event of an increase or decrease greater than predetermined levels, the Fund may use a systematic valuation model provided by an independent third party to fair value its international equity securities which are then typically categorized as Level 2 in the fair value hierarchy.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

A reconciliation of assets in which level 3 inputs are used in determining fair value, along with additional quantitative disclosures, are presented when there are significant level 3 instruments at the end of the period.

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”) or pursuant to the resale limitations provided by Rule 144A under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Trustees. Not all restricted securities are considered illiquid. The illiquid restricted securities held as of December 31, 2014 are identified below.

Foreign Securities and Currencies Risk: Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments which could adversely affect investments in those securities.

It is the Fund’s policy to continue to comply with the requirements of the Internal Revenue Code under Subchapter M, applicable to regulated investment companies, and to distribute all of its taxable income, including any net realized gains on investments, to its shareholders. Therefore, no provision is made for federal income taxes.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Cost for federal income tax purposes at December 31, 2014 is $625,827,590. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

Management has evaluated events and transactions subsequent to period end through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report.

We have audited the accompanying statement of assets and liabilities of AZL BlackRock Capital Appreciation Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $59,367,203.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request, by visiting the Securities and Exchange Commission’s (‘‘Commission’’) website at www.sec.gov, or by calling 800-624-0197.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 800-624-0197; (ii) on the Allianz Variable Insurance Products Trust’s website at https://www.allianzlife.com; and (iii) on the Commission’s website at http://www.sec.gov.

The Fund files complete Schedules of Portfolio Holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. Schedules of Portfolio Holdings for the Fund in this report are available without charge on the Commission’s website at http://www.sec.gov, or may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

The Allianz Variable Insurance Products Trust (the “Trust”) is a manager-of-managers fund. That means that the Trust’s Manager (“Allianz Investment Management LLC”) is responsible for monitoring the various Subadvisers that have day-to-day responsibility for the decisions made for each of the Trust’s investment portfolios. The Trust’s Manager is responsible for determining, in the first instance, which investment advisers to consider recommending for selection as a Subadviser.

In reviewing the services provided by the Manager and the terms of the investment management agreement, the Board receives and reviews information related to the Manager’s experience and expertise in the variable insurance marketplace. Currently, the Funds are offered only through variable annuities and variable life insurance policies, and not in the retail fund market. In addition, the Board receives information regarding the Manager’s expertise with regard to portfolio diversification and asset allocation requirements within variable insurance products issued by Allianz Life Insurance Company of North America and its subsidiary, Allianz Life Insurance Company of New York. Currently, the Funds are offered only through Allianz Life and Allianz of New York variable products.

The Trust’s Manager has adopted policies and procedures to assist it in the process of analyzing each potential Subadviser with expertise in particular asset classes for purposes of making the recommendation that a specific investment adviser be selected. The Trust’s Board reviews and considers the information provided by the Manager in deciding which investment advisers to select. After an investment adviser becomes a Subadviser, a similarly rigorous process is instituted by the Manager to monitor the investment performance and other responsibilities of the Subadviser. The Manager reports to the Trust’s Board on its analysis at the regular meetings of the Board, which are held at least quarterly. Where warranted, the Manager will add or remove a particular Subadviser from a “watch” list that it maintains. Watch list criteria include, for example: (a) Fund performance over various time periods; (b) Fund risk issues, such as changes in key personnel involved with Fund management, changes in investment philosophy or process, or “capacity” concerns; and (c) organizational risk issues, such as regulatory, compliance or legal concerns, or changes in the ownership of the Subadviser. The Manager may place a Fund on the watch list for other reasons, and if so, will explain its rationale to the Trustees. Funds which are on the watch list are subject to special scrutiny of the Manager and the Board of Trustees. Funds may be removed from such watch list, if for example, performance improves or regulatory matters are satisfactorily resolved. However, in some situations where Funds which have been on the watch list, the Manager has recommended the retention of a new Subadviser, and the Board of Trustees has subsequently approved new Subadvisory Agreements with such Subadvisers.

In assessing the Manager’s and Subadvisers’ (collectively, the “Advisory Organizations”), performance of their obligations, the Board considers whether there has occurred a circumstance or event that would constitute a reason for it to not renew an advisory contract. In this regard, the Board is mindful of the potential disruption of a Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew a contract.

As required by the Investment Company Act of 1940 (“1940 Act”), the Trust’s Board has reviewed and approved the Trust’s Investment Management Agreement with the Manager (the “Advisory Agreement”) and portfolio management agreements (the “Subadvisory Agreements”) with the Subadvisers. The Board’s decision to approve these contracts reflects the exercise of its business judgment on whether to approve new arrangements and continue the existing arrangements. During its review of these contracts, the Board considers many factors, among the most material of which are: the Fund’s investment objectives and long term performance; the Advisory Organizations’ management philosophy, personnel, and processes, including their compliance history and the adequacy of their compliance processes; the preferences and expectations of Fund shareholders (and underlying contract owners) and their relative sophistication; the continuing state of competition in the mutual fund industry; and comparable fees in the mutual fund industry.

The Board also considers the compensation and benefits received by the Advisory Organizations. This includes fees received for services provided to the Fund by affiliated persons of the Advisory Organizations and research services received by the Advisory Organizations from brokers that execute Fund trades, as well as advisory fees. The Board considered the fact that: (1) the Manager and the Trust are parties to an Administrative Service Agreement and a Compliance Services Agreement, under which the Manager is compensated by the Trust for performing certain administrative and compliance services including providing an employee of the Manager or one of its affiliates to act as the Trust’s Chief Compliance Officer; and (2) Allianz Life Financial Services, LLC, an affiliated person of the Manager, is a registered securities broker-dealer and receives (along with its affiliated persons) payments made by the Trust pursuant to Rule 12b-1.

The Board is aware that various courts have interpreted provisions of the 1940 Act and have indicated in their decisions that the following factors may be relevant to an adviser’s compensation: the nature and quality of the services provided by the adviser, including the performance of the fund; the adviser’s cost of providing the services; the extent to which the adviser may realize “economies of scale” as the fund grows larger; any indirect benefits that may accrue to the adviser and its affiliates as a result of the adviser’s relationship with the fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts bearing on the adviser’s service and fee. The Trust’s Board is aware of these factors and takes them into account in its review of the Trust’s advisory contracts.

The Board considered and weighed these circumstances in light of its experience in governing the Trust and working with the Advisory Organizations on matters relating to the Funds, and is assisted in its deliberations by the advice of legal counsel to the Independent Trustees. In this regard, the Board requests and receives a significant amount of information about the Funds and the Advisory Organizations. Some of this information is provided at each regular meeting of the Board; additional information is provided in connection with the particular meeting or meetings at which the Board’s formal review of an advisory contract occurs. In between regularly scheduled meetings, the Board may receive information on particular matters as the need arises. Thus, the Board’s evaluation of an advisory contract is informed by reports covering such matters as: an Advisory Organization’s investment philosophy, personnel, and processes; the Fund’s short- and long-term performance (in absolute terms as well as in relationship to its benchmark(s), certain competitor or “peer group” funds and similar funds managed by the particular Subadviser), and comments on the reasons for performance; the Fund’s expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities; the nature and extent of the advisory and other services provided to the Fund by the Advisory Organizations and their affiliates; compliance and audit reports concerning the Funds and the companies that service them; and relevant developments in the mutual fund industry and how the Funds and/or Advisory Organizations are responding to them.

The Board also receives financial information about Advisory Organizations, including reports on the compensation and benefits the Advisory Organizations derive from their relationships with the Funds. These reports cover not only the fees under the advisory contracts, but also fees, if any, received for providing other services to the Funds. The reports also discuss any indirect or “fall out” benefits an Advisory Organization may derive from its relationship with the Funds.

The Advisory and Subadvisory Agreements (collectively, the “Agreements”) were most recently considered at Board of Trustees meetings held in the fall of 2014. Information relevant to the approval of such Agreements was considered at a telephonic Board of Trustees meeting on October 14, 2014, and at an “in person” Board of Trustees meeting held October 21, 2014. The Agreements were approved at the Board meeting of October 21, 2014. At such meeting the Board also approved an Expense Limitation Agreement between the Manager and the Trust for the period ending April 30, 2016. In connection with such meetings, the Trustees requested and evaluated extensive materials from the Manager, including performance and expense information for other investment companies with similar investment objectives derived from data compiled by an independent third party provider and other sources believed to be reliable by the Manager. Prior to voting, the Trustees reviewed the proposed approval/continuance of the Agreements with management and with experienced counsel who are independent of the Manager and received a memorandum from such counsel discussing the legal standards for their consideration of the proposed approvals/continuances. The independent (“disinterested”) Trustees also discussed the proposed approvals/continuances in a private session with such counsel at which no representatives of the Manager were present. In reaching their determinations relating to the approval and/or continuance of

the Agreements, in respect of each Fund, the Trustees considered all factors they believed relevant. The Board based its decision to approve the Agreements on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. Not all of the factors and considerations discussed above and below are necessarily relevant to every Fund, and the Board did not assign relative weights to factors discussed herein or deem any one or group of them to be controlling in and of themselves.

An SEC Rule requires that shareholder reports include a discussion of certain factors relating to the selection of investment advisers and the approval of advisory fees. The “factors” enumerated by the SEC are set forth below in italics, as well as the Board’s conclusions regarding such factors:

(1) The nature, extent and quality of services provided by the Manager and Subadvisers. The Trustees noted that the Manager, subject to the control of the Board of Trustees, administers each Fund’s business and other affairs. Under the Advisory Agreement, the Manager holds the sole and exclusive responsibility to provide, or arrange for other to provide, the management of the Funds’ assets and the placement of orders for the purchase and sale of the securities of the Funds. As the Trust is a manager of managers fund, the Manager is authorized, under the Advisory Agreement, to retain one or more Subadvisers for each Fund to handle day-to-day management of the Funds’ investment portfolios; the Manager is responsible for determining, in the first instance, which investment advisers to recommend to the Board of Trustees for selection as a Subadviser. The Trustees were aware that, notwithstanding the retention of the Subadvisers to handle day-to-day portfolio management, the Manager remains responsible for substantial other matters, including continuously monitoring compliance by each Subadviser with the investment policies and restrictions of the respective Funds, with such other limitations or directions of the Board of Trustees, and with all legal requirements under federal or state law or regulation. The Manager also is responsible primarily to provide statistical information and other data to the Trustees regarding the Funds’ portfolio investments and to make available to the Funds’ administrator such information as is necessary for the conduct of its duties.

The Trustees also noted that the Manager provides the Trust and each Fund with such administrative and other services (exclusive of, and in addition to, any such services provided by any others retained by the Trust on behalf of the Funds) and executive and other personnel as are necessary for the operation of the Trust and the Funds. Except for the Trust’s Chief Compliance Officer, the Manager pays all of the compensation of Trustees and officers of the Trust who are employees of the Manager or its affiliates.

The Trustees considered the scope and quality of services provided by the Manager and the Subadvisers and noted that the scope of such services provided had expanded as a result of recent regulatory and other developments. The Trustees noted that, for example, the Manager and Subadvisers are responsible for maintaining and monitoring their own compliance programs, and these compliance programs are continuously refined and enhanced in light of new regulatory requirements. The Trustees considered the capabilities and resources which the Manager has dedicated to performing services on behalf of the Trust and its Funds. The quality of administrative and other services, including the Manager’s role in coordinating the activities of the Trust’s other service providers, also were considered. The Trustees concluded that, overall, they were satisfied with the nature, extent and quality of services provided (and expected to be provided) to the Trust and to each of the Funds under the Agreements.

(2) The investment performance of the Funds, the Manager and the Subadvisers. In connection with every in-person quarterly Board of Trustees meeting, Trustees receive extensive information on the performance results of each of the Funds. This includes, for example, performance information on all of the Funds for the previous quarter, and previous one, three and five-year periods, and since inception. (For Funds which have been in existence for less than five years, Trustees may receive performance information on comparable funds managed by the particular Subadviser for periods prior to the creation of a particular Fund.) Such performance information includes information on absolute total return, performance versus Subadvisers’ comparable fund(s), performance versus the appropriate benchmark(s), and performance versus peer groups. For example, in connection with the Board of Trustees meeting held October 21, 2014, the Manager reported that for the three year period ended June 30, 2014, 11 Funds were in the top 40%, nine were in the middle 20% and five were in the bottom 40%, and for the one year period ended June 30, 2014, nine Funds were in the top 40%, 11 were in the middle 20%, and eight were in the bottom 40%. The Manager also reported that for the five year period ended June 30, 2014, nine Funds were in the top 40%, six were in the middle 20%, and six were in the bottom 40%. At the Board of Trustees meeting held October 21, 2014, the Trustees determined that the overall investment performance of the Funds was acceptable.

(3) The costs of services to be provided and profits to be realized by the Manager and the Subadvisers and their affiliates from their relationship with the Funds. The Manager has supplied information to the Board of Trustees pertaining to the level of investment advisory fees to which the Funds are subject. The Manager has agreed to temporarily “cap” Fund expenses at certain levels, and information is provided to Trustees setting forth “contractual” advisory fees and “actual” fees after taking expense caps into account. Based upon the information provided, the “actual” advisory fees payable by the Funds overall are generally comparable to the average level of fees paid by Fund peer groups. For the 30 Funds reviewed by the Board of Trustees in the fall of 2014, 25 Funds paid “actual” advisory fees in a percentage amount within the 65th percentile or lower for each Fund’s applicable category. The Trustees recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The Board has concluded that the advisory fees to be paid to the Manager by the Funds are not unreasonable.

The Manager has also supplied information to the Board of Trustees pertaining to total Fund expenses (which includes advisory fees, the 25 basis point 12b-1 fee paid by the Funds, and other Fund expenses). As noted above, the Manager has agreed to “cap” Fund expenses at certain levels. Based upon the information provided, the overall total expense ratio ranking in 2014 for the 30 Funds was as follows: (1) 27 of the Funds had total expense rankings below the 65th percentile (with 19 Funds below the 50th percentile); (2) the AZL Russell 1000 Value Fund had a total expense ranking in the 66th percentile; the Manager reported that there is only a limited peer group for such Fund; (3) the AZL International Index Fund had a total expense ranking in the 66th percentile; the Manager reported that there is only a limited peer group for such Fund; and (4) the AZL Morgan Stanley Global Real Estate Fund had a total expense ranking in the 66th percentile; it was reported by the Manager that there is only a limited peer group for such Fund, and such Fund is the third smallest in its peer group.

The Manager has committed to providing the Funds with a high quality of service and working to reduce Fund expenses over time, particularly as the Funds grow larger. The Trustees concluded therefore that the expense ratios of the Funds were not unreasonable.

The Manager provided information concerning the profitability of the Manager’s investment advisory activities for the period from 2011 through June 30, 2014. The Trustees recognized that it is difficult to make comparisons of profitability from investment company advisory agreements because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocation of expenses and the adviser’s capital structure and cost of capital. In considering profitability information, the Trustees considered the possible effect of certain fall-out benefits to the Manager and its affiliates. The Trustees focused on profitability of the Manager’s relationships with the Funds before taxes and distribution expenses. The Trustees recognized that the Manager should, in the abstract, be entitled to earn a reasonable level of profits for the services it provides to each Fund and, based on their review, concluded that they were satisfied that the Manager’s level of profitability from its relationship with the Funds was not excessive.

The Manager, on behalf of the Board of Trustees, endeavored to obtain information on the profitability of each Subadviser in connection with its relationship with the Fund or Funds which it subadvises. The Manager was unable to obtain meaningful profitability information from some of the unaffiliated Subadvisers. The Manager assured the Board of Trustees that the Agreements with the Subadvisers which are not affiliated with it were negotiated on an “arm’s length” basis, so that arguably, such profitability information should be less relevant. The Trustees were also provided with certain information on the profitability for the Subadviser which is affiliated with the Manager. Trustees recognized the difficulty of allocating costs to multiple advisory accounts and products of a large advisory organization. Based upon the information provided, the Trustees determined that there was no evidence that the level of such profitability attributable to subadvising the Funds was excessive.

(4) and (5) The extent to which economies of scale would be realized as the Funds grow, and whether fee levels reflect these economies of scale. The Trustees noted that most of the advisory fee schedules for the Funds do not contain breakpoints that reduce the fee rate on assets above specified levels, although certain Subadvisory Agreements have such “breakpoints.” The Trustees recognized that breakpoints may be an appropriate way for the Manager to share its economies of scale, if any, with Funds that have substantial assets. However, they also recognized that there may not be a direct relationship between any economies of scale realized by Funds and those realized by the Manager as assets increase. The Trustees do not believe there is a uniform methodology for establishing breakpoints that give effect to Fund-specific service provided by the Manager. The Trustees noted that in the fund industry as a whole, as well as among funds similar to the Funds, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. Depending on the age, size, and other characteristics of a particular fund and its manager’s cost structure, different conclusions can be drawn as to whether there are economies of scale to be realized at any particular level of assets, notwithstanding the intuitive conclusion that such economies exist, or will be realized at some level of total assets. Moreover, because different managers have different cost structures and service models, it is difficult to draw meaningful conclusions from the breakpoints that may have been adopted by other funds. The Trustees also noted that the advisory agreements for many funds do not have breakpoints at all, or if breakpoints exist, they may be at asset levels significantly greater than those of the individual Funds. The Trustees also noted that the total assets in all of the Funds as of June 30, 2014 were approximately $8.0 billion, and that no single non-money market Fund had assets in excess of $625 million.

The Trustees noted that the Manager has agreed to temporarily “cap” Fund expenses at certain levels, which has the effect of reducing expenses as would the implementation of advisory fee breakpoints. The Manager has committed to continue to consider the continuation of fee “caps” and/or advisory fee breakpoints as the Funds grow larger. The Board receives quarterly reports on the level of Fund assets. It expects to consider whether or not to approve the Agreements at a meeting to be held prior to December 31, 2015, and will at that time, or prior thereto, consider: (a) the extent to which economies of scale can be realized, and (b) whether the advisory fee should be modified to reflect such economies of scale, if any.

Having taken these factors into account, the Trustees concluded that the absence of breakpoints in certain of the Funds’ advisory fee rate schedules was acceptable under each Fund’s circumstances.

The Trust is managed by the Trustees in accordance with the laws of the state of Delaware governing business trusts. There are currently nine Trustees, two of whom are “interested persons” of the Trust within the meaning of that term under the 1940 Act. The Trustees and Officers of the Trust, their addresses, ages, their positions held with the Trust, their terms of office with the Trust and length of time served, their principal occupation(s) during the past five years, the number of portfolios in the Trust they oversee, and their other directorships held during the past five years are as follows:


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014 the AZL^® BlackRock Global Allocation Fund returned 1.95%. That compared to a 4.18% total return for its benchmark, the Balanced Composite Index which is comprised of a 36% weighting in the S&P 500 Index¹, a 24% weighting in the FTSE World ex U.S. Index², 24% weighting in the BofA Merrill Lynch 5-Year U.S. Treasury Bond Index³ and a 16% weighting in the Citigroup (Non-USD) World Government Bond Index⁴.

U.S. equity markets outperformed most international equity markets for the 12-month period, while fixed income markets offered modest gains. Global equity markets started out on a negative note: Slowing growth in China, softer economic data in the U.S. and expectations that the Federal Reserve would soon end its stimulus efforts all weighed on investors. Stocks recovered quickly, however, with new data showing that growth in the U.S. remained strong and the European Central Bank exhibiting a willingness to act to combat low inflation in the eurozone.

Market volatility increased through the year due in part to geopolitical crises, particularly the Russia-Ukraine conflict, and the ground war in Gaza. Signs of a stronger U.S. economic recovery and flagging global growth helped support strength in the U.S. dollar. The appreciating dollar put pressure on commodity prices, particularly oil, later in the period. It also led many foreign equity markets to underperform in U.S. dollar terms, despite posting gains in local currency terms. Concerns around weak global growth, along with the strong U.S. currency, drove investors to seek safety in U.S. Treasuries later in the period, bidding up prices on those securities and driving down interest rates.

The Fund underperformed its composite benchmark for the period under review primarily due to a combination of stock selection, country and sector allocations, and exposure to cash securities. From a country perspective, a smaller-than-benchmark exposure to U.S. equities as well as stock selection in that country weighed on results. Stock selection in Canada and Europe, most notably in France and Germany, also dragged on relative performance. At the sector level, stock selection and overweight positions in the materials and industrials sectors hurt the Fund’s performance, as did selection in information technology and financials. A larger-than-benchmark holding of gold-related securities detracted from relative performance as commodities prices fell during the period. The Fund’s cash-equivalent holdings—which were used to help mitigate portfolio volatility and as a source of funds for new investments— dragged on results, given the low-interest rate environment and the fully invested nature of the benchmark.*

The Fund’s relative performance benefited from stock selection in Japan and an overweight allocation to that country. Strong corporate earnings and stimulus efforts by the Japanese central bank helped buoy the nation’s equity markets. From a sector perspective, an

overweight allocation to health care holdings, along with stock selection within that sector, helped boost relative performance. An underweight allocation to fixed income securities in general helped improve the Fund’s relative returns, as did a smaller-than-benchmark position in Japanese government bonds. The Fund’s overweight allocation to emerging market sovereign bonds also contributed positively to relative performance. From a currency perspective, the Fund benefited from a larger-than-benchmark exposure to U.S. currency-denominated securities as the U.S. dollar strengthened relative to other foreign currencies.*

The Fund uses derivatives, which may include options, futures, swaps and forward contracts both to enhance returns of the Fund and to hedge (or protect) against adverse movements in currency exchange rates, interest rates and movements in the securities markets. During the period, the Fund’s use of derivatives had a positive impact on the absolute performance of the Fund.*

Past performance does not guarantee future results.

The Fund’s portfolio composition is subject to change. There is no guarantee that any sectors mentioned will continue to perform well or that securities in such sectors will be held by the Fund in the future. The information contained in this commentary is for informational purposes only and should not be construed as a recommendation to purchase or sell securities in the sector mentioned. The Fund’s holdings and weightings are as of December 31, 2014.

¹	The Standard & Poor’s 500 Index (“S&P 500”) is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole.

The Financial Times Stock Exchange World ex U.S. Index (“FTSE World Index”) is part of a range of indexes designed to help United States investors benchmark their international investments. The index comprises large- (84%) and mid- (16%) cap stocks providing coverage of Developed and Emerging Markets (46 countries) excluding the United States. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.

³	The BofA Merrill Lynch 5-Year U.S. Treasury Bond Index is designed to track the total return of the current coupon 5-Year U.S. Treasury bond.

⁴	The Citigroup Non-U.S. Dollar World Government Bond Index is a market capitalization-weighted index that tracks 10 government bond indices, excluding the United States. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek high total investment return. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing in a portfolio of equity, debt and money market securities.

Investment Concerns

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

The performance of investments in real estate depends on the overall strength of the real estate market, the management of real estate investments trusts (REITs), REOCs, and foreign real estate companies, and property management, all of which can be affected by a variety of factors, including national and regional economic conditions.

The Fund is subject to the risk that principal value reacts in opposition to the movement of interest rates and that a rising interest rate environment increases the risk of loss of principal.

International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations.

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

The chart above represents a comparison of a hypothetical investment in the Fund versus a similar investment in the Fund’s benchmarks as well as the component indices of the Fund’s benchmark, and represents the reinvestment of dividends and capital gains in the Fund.

Average Annual Total Returns as of December 31, 2014


	1 Year			Since Inception (1/10/12)
AZL^® BlackRock Global Allocation Fund		1.95	%		7.68	%
Balanced Composite Index		4.18	%		9.18	%
S&P 500 Index		13.69	%		19.50	%
FTSE World ex U.S. Index		-3.74	%		9.43	%
BofA Merrill Lynch 5-Year U.S. Treasury Bond Index		2.93	%		0.92	%
Citigroup Non-U.S. Dollar World Government Bond Index		-2.68	%		-1.67	%


Expense Ratio¹	Gross
AZL^® BlackRock Global Allocation Fund		1.16	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 1.19% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

Acquired Fund Fees and Expenses are incurred indirectly by the Fund through the valuation of the Fund’s investments in the other investment companies. Accordingly, Acquired Fund Fees and Expenses affect the Fund’s total returns. Because these fees and expenses are not included in the Fund’s financial highlights, the Fund’s total annual fund operating expenses do not correlate to the ratios of expenses to average net assets shown in the financial highlights table. Without Acquired Fund Fees and Expenses the Fund’s gross ratio would be 1.14%.

The Fund’s performance is measured against a composite index (the “Balanced Composite Index”), which is comprised of 36% Standard & Poor’s 500 Index (“S&P 500”); 24% FTSE World ex U.S. Index; 24% BofA Merrill Lynch 5-Year U.S. Treasury Bond Index; and 16% Citigroup Non-U.S. Dollar World Government Bond. The S&P 500 is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The FTSE World ex U.S. Index is part of a range of indexes designed to help U.S. investors benchmark their international investments. The index comprises large- (84%) and mid- (16%) cap stocks providing coverage of Developed and Emerging Markets (46 countries) excluding the U.S. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization. The BofA Merrill Lynch 5-Year U.S. Treasury Bond Index is designed to track the total return of the current coupon 5-Year U.S. Treasury bond. The Citigroup Non-U.S. Dollar World Government Bond Index is a market capitalization-weighted index that tracks 10 government bond indices, excluding the United States. These indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL BlackRock Global Allocation Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

	Common Stocks (54.3%):
	Aerospace & Defense (1.1%):
	989	Boeing Co. (The)	$	128,550
	38,316	European Aeronautic Defence & Space Co. NV		1,902,823
	1,417	General Dynamics Corp.		195,008
	1,326	L-3 Communications Holdings, Inc.		167,354
	1,490	Northrop Grumman Corp.		219,611
	7,481	Precision Castparts Corp.		1,802,023
	1,856	Raytheon Co.^		200,764
	39,335	Safran SA		2,420,742
	14,421	United Technologies Corp.		1,658,415

				8,695,290

	Air Freight & Logistics (0.5%):
	12,245	Deutsche Post AG		400,592
	5,823	FedEx Corp.		1,011,222
	21,832	United Parcel Service, Inc., Class B		2,427,064

				3,838,878

	Airlines (0.4%):
	54,500	Japan Airlines Co., Ltd.		1,592,243
	28,986	United Continental Holdings, Inc.*		1,938,874

				3,531,117

	Auto Components (1.3%):
	20,600	Aisin Sieki Co., Ltd.		740,544
	15,601	BorgWarner, Inc.^		857,275
	48,200	Bridgestone Corp.		1,675,272
	134,683	Cheng Shin Rubber Industry Co., Ltd.		315,944
	14,952	Delphi Automotive plc		1,087,309
	46,900	DENSO Corp.		2,186,167
	23,600	Futaba Industrial Co., Ltd.^		110,441
	2,082	Hyundai Wia Corp.		331,521
	5,000	Koito Manufacturing Co., Ltd.		152,524
	2,059	Lear Corp.		201,947
	3,100	Stanley Electric Co., Ltd.		67,018
	38,900	Toyota Industries Corp.		1,988,016

				9,713,978

	Automobiles (1.9%):
	7,073	Bayerische Motoren Werke AG (BMW)		768,063
	1,900	Daihatsu Motor Co., Ltd.^		24,927
	108,000	Dongfeng Motor Corp., H Shares		150,993
	130,023	Ford Motor Co.		2,015,357
	120,100	Fuji Heavy Industries, Ltd.		4,230,034
	42,300	Honda Motor Co., Ltd.		1,230,277
	5,313	Hyundai Motor Co.		806,721
	45,400	Isuzu Motors, Ltd.		554,001
	9,127	Maruti Suzuki India, Ltd.		479,883
	63,300	Suzuki Motor Corp.		1,903,179
	27,300	Toyota Motor Corp.		1,702,728
	270	Volkswagen AG		58,825
	165,770	Yulon Motor Co., Ltd.		242,482

				14,167,470


Shares			Fair Value

	Common Stocks, continued
	Banks (4.4%):
	23,504	Axis Bank, Ltd.	$	185,708
	82,439	Banco Bilbao Vizcaya Argentaria SA		775,784
	214,213	Bank of America Corp.		3,832,271
	22,000	Bank of Yokohama, Ltd. (The)		119,425
	29,503	BNP Paribas SA		1,733,517
	19,000	Chiba Bank, Ltd. (The)		124,723
	75,000	Chuo Mitsui Trust Holdings, Inc.		286,277
	51,579	Citigroup, Inc.		2,790,940
	10,992	Commonwealth Bank of Australia		763,211
	26,241	Fifth Third Bancorp		534,660
	77,000	Fukuoka Financial Group, Inc.		397,615
	16,682	HDFC Bank, Ltd.		250,205
	259,946	HSBC Holdings plc		2,456,313
	31,485	ICICI Bank, Ltd.		174,895
	370,849	Intesa Sanpaolo SpA		1,072,680
	63,564	JPMorgan Chase & Co.		3,977,835
	9,846	Kotak Mahindra Bank, Ltd.		196,066
	623,354	Lloyds Banking Group plc*		736,008
	330,600	Mitsubishi UFJ Financial Group, Inc.		1,812,368
	94,004	Regions Financial Corp.		992,682
	13,000	Shizuoka Bank, Ltd. (The)		118,932
	8,086	Societe Generale		339,744
	46,800	Sumitomo Mitsui Financial Group, Inc.		1,691,283
	7,951	Svenska Handelsbanken AB, A Shares		371,499
	13,504	Toronto-Dominion Bank (The)		645,378
	29,962	U.S. Bancorp		1,346,792
	59,657	UniCredit SpA		380,179
	82,892	Wells Fargo & Co.		4,544,138
	17,557	Westpac Banking Corp.		471,882
	17,236	Yes Bank, Ltd.		209,115

				33,332,125

	Beverages (0.7%):
	2,692	Anheuser-Busch InBev NV		302,905
	51,823	Coca-Cola Co. (The)		2,187,967
	1,846	Constellation Brands, Inc., Class A*		181,222
	8,367	Diageo plc, Sponsored ADR		954,590
	6,528	Diageo plc		187,208
	21,800	Kirin Holdings Co., Ltd.		270,085
	9,502	Remy Cointreau SA		634,610
	13,805	SABMiller plc		714,353
	10,300	Suntory Beverage & Food, Ltd.		355,696

				5,788,636

	Biotechnology (1.0%):
	4,336	Alexion Pharmaceuticals, Inc.*		802,290
	13,796	Amgen, Inc.		2,197,565
	3,082	Biogen Idec, Inc.*		1,046,185
	12,697	Celgene Corp.*		1,420,286
	8,576	Gilead Sciences, Inc.*		808,374
	62,008	Mesoblast, Ltd.*^		220,168
	767	Regeneron Pharmaceuticals, Inc.*^		314,662
	8,926	Vertex Pharmaceuticals, Inc.*		1,060,409

				7,869,939


Shares			Fair Value

	Common Stocks, continued
	Building Products (0.2%):
	16,904	Compagnie de Saint-Gobain SA	$	711,562
	13,500	Daikin Industries, Ltd.		870,859

				1,582,421

	Capital Markets (0.6%):
	1,250	Ameriprise Financial, Inc.		165,313
	19,715	Bank of New York Mellon Corp. (The)		799,838
	25,666	Charles Schwab Corp. (The)		774,857
	34,739	Deutsche Bank AG, Registered Shares		1,049,888
	4,909	Goldman Sachs Group, Inc. (The)		951,510
	97,829	UBS Group AG*		1,682,159

				5,423,565

	Chemicals (1.9%):
	15,338	Akzo Nobel NV		1,063,482
	8,897	Arkema, Inc.		589,932
	90,000	Asahi Kasei Corp.		824,931
	3,482	BASF SE		294,311
	526	CF Industries Holdings, Inc.		143,356
	4,461	Dow Chemical Co. (The)		203,466
	17,683	FMC Corp.^		1,008,462
	31,400	Hitachi Chemical Co., Ltd.		556,321
	37,200	JSR Corp.^		638,898
	14,014	Koninklijke DSM NV		852,041
	45,000	Kuraray Co., Ltd.		513,136
	3,245	Linde AG		605,185
	7,201	LyondellBasell Industries NV, Class A		571,687
	22,700	Nitto Denko Corp.		1,269,676
	9,207	Potash Corp. of Saskatchewan, Inc.		325,554
	1,021	PPG Industries, Inc.		236,004
	30,800	Shin-Etsu Chemical Co., Ltd.		2,004,098
	7,584	Syngenta AG, Registered Shares		2,435,961
	247,000	Ube Industries, Ltd.^		369,113

				14,505,614

	Commercial Services & Supplies (0.0%):
	2,017	Cintas Corp.^		158,213
	3,100	Sohgo Security Services Co., Ltd.^		74,541

				232,754

	Communications Equipment (0.6%):
	102,128	Cisco Systems, Inc.		2,840,690
	18,395	El Towers SpA*		920,676
	1,869	Harris Corp.		134,232
	1,960	Motorola Solutions, Inc.^		131,477
	14,107	QUALCOMM, Inc.		1,048,573

				5,075,648

	Construction & Engineering (0.2%):
	4,791	Bouygues SA		172,864
	25,000	JGC Corp.		515,313
	4,000	Kinden Corp.		40,511
	2,000	Maeda Road Construction Co., Ltd.^		29,737
	84,000	Okumura Corp.^		377,720
	92,000	Toda Corp.^		363,380

				1,499,525


Shares			Fair Value

	Common Stocks, continued
	Consumer Finance (0.7%):
	26,951	American Express Co.	$	2,507,521
	15,015	Capital One Financial Corp.		1,239,488
	21,298	Discover Financial Services		1,394,806

				5,141,815

	Containers & Packaging (0.3%):
	16,318	Crown Holdings, Inc.*^		830,586
	20,018	Sealed Air Corp.		849,364

				1,679,950

	Distributors (0.0%):
	2,200	Canon Marketing Japan, Inc.		36,960

	Diversified Financial Services (0.2%):
	5,630	Deutsche Boerse AG		403,421
	83,371	ING Groep NV*		1,079,327

				1,482,748

	Diversified Telecommunication Services (1.0%):
	39,563	AT&T, Inc.^		1,328,921
	114,563	BT Group plc		711,070
	42,017	Deutsche Telekom AG, Registered Shares		673,380
	20,604	France Telecom SA		350,356
	11,200	Nippon Telegraph & Telephone Corp.		576,426
	24,588	Oi SA, ADR*		78,437
	332,000	Singapore Telecommunications, Ltd.		974,800
	327	Swisscom AG, Registered Shares^		171,760
	23,018	TDC A/S		175,445
	251,712	Telecom Italia SpA		266,914
	32,883	Telecom Italia SpA		27,482
	152,500	Telekom Malaysia Berhad		299,261
	8,280	Verizon Communications, Inc.		385,753
	56,872	Verizon Communications, Inc.		2,660,472

				8,680,477

	Electric Utilities (0.4%):
	19,181	American Electric Power Co., Inc.		1,164,669
	22,500	Chubu Electric Power Co., Inc.*		264,744
	1,898	Duke Energy Corp.		158,559
	156,961	Enel SpA		701,728
	8,232	Exelon Corp.^		305,243
	4,303	FirstEnergy Corp.		167,774
	5,142	NRG Yield, Inc.^		242,394
	11,138	PPL Corp.		404,644
	42,011	Terna – Rete Elettrica Nationale SpA		190,291

				3,600,046

	Electrical Equipment (0.7%):
	21,750	Eaton Corp. plc		1,478,130
	43,000	GS Yuasa Corp.^		182,937
	2,000	Mabuchi Motor Co., Ltd.		78,831
	93,000	Mitsubishi Electric Corp.		1,107,446
	16,186	Rockwell Automation, Inc.		1,799,883
	13,003	Schneider Electric SA		944,711
	2,009	Schneider Electric SE^		145,311
	40,500	Sumitomo Electric Industries, Ltd.		505,396

				6,242,645


Shares			Fair Value

	Common Stocks, continued
	Electronic Equipment, Instruments & Components (0.6%):
	3,065	Avnet, Inc.	$	131,856
	3,300	Hitachi High-Technologies Corp.		95,231
	232,000	Hitachi, Ltd.		1,697,888
	22,400	HOYA Corp.		750,099
	400	Keyence Corp.		177,205
	4,427	Keysight Technologies, Inc.*		149,500
	14,500	Kyocera Corp.		664,701
	5,700	Murata Manufacturing Co., Ltd.		622,735
	6,200	Omron Corp.		277,933
	2,753	TE Connectivity, Ltd.		174,127

				4,741,275

	Energy Equipment & Services (0.7%):
	95,700	Dropbox, Inc.*(a)(b)		1,827,985
	1,698	Helmerich & Payne, Inc.		114,479
	17,702	Ocean Rig UDW, Inc.		164,275
	30,284	Oceaneering International, Inc.		1,781,002
	149,099	SBM Offshore NV*		1,767,900

				5,655,641

	Food & Staples Retailing (0.1%):
	2,061	CVS Health Corp.		198,495
	3,600	FamilyMart Co., Ltd.		134,416
	11,194	Fresh Market, Inc. (The)*^		461,193
	3,225	Kroger Co. (The)		207,077

				1,001,181

	Food Products (1.0%):
	20,000	Ajinomoto Co., Inc.		370,657
	3,207	Archer-Daniels-Midland Co.		166,764
	57,961	Cosan, Ltd., A Shares		449,198
	6,008	Danone SA		395,198
	46,949	Nestle SA, Registered Shares		3,442,473
	27,712	SLC Agricola SA		147,049
	60,391	Unilever NV		2,372,044
	17,190	Unilever plc		698,185

				8,041,568

	Gas Utilities (0.3%):
	14,273	Gas Natural SDG SA		359,021
	79,899	Snam Rete Gas SpA		394,105
	259,000	Tokyo Gas Co., Ltd.		1,397,840

				2,150,966

	Health Care Equipment & Supplies (0.4%):
	1,032	Becton, Dickinson & Co.		143,613
	885	C.R. Bard, Inc.		147,459
	2,904	CareFusion Corp.*		172,323
	25,562	Getinge AB, B Shares		580,995
	17,050	Medtronic, Inc.^		1,231,010
	18,122	Mindray Medical International, Ltd., Sponsored ADR^		478,421
	5,116	Zimmer Holdings, Inc.		580,257

				3,334,078


Shares			Fair Value

	Common Stocks, continued
	Health Care Providers & Services (2.3%):
	17,679	Aetna, Inc.	$	1,570,426
	35,516	Al Noor Hospitals Group plc		545,346
	1,846	AmerisourceBergen Corp.		166,435
	1,413	Anthem, Inc.		177,572
	1,222,800	Bangkok Dusit Medical Services Public Co., Ltd., Class F		636,562
	87,500	Bumrungrad Hospital Public Co., Ltd.		374,655
	2,262	Cardinal Health, Inc.		182,611
	13,130	Catamaran Corp.*		679,478
	23,895	Envision Healthcare Holdings, Inc.*		828,918
	5,802	Fresenius SE & Co. KGaA		302,946
	23,930	HCA Holdings, Inc.*		1,756,223
	436,104	Healthscope, Ltd.*		965,350
	9,772	HealthSouth Corp.^		375,831
	7,337	Humana, Inc.		1,053,813
	633,400	IHH Healthcare Berhad		871,996
	105,242	Life Healthcare Group Holdings Pte, Ltd.		388,110
	11,050	McKesson, Inc.		2,293,758
	60,203	NMC Health plc		429,300
	382,799	PT Siloam International Hospital Tbk*		423,743
	102,000	Raffles Medical Group, Ltd.		299,349
	9,900	Ship Healthcare Holdings, Inc.^		224,985
	97,197	Sinopharm Group Co., H Shares		342,147
	137,245	Spire Healthcare Group plc*		807,289
	12,100	Tenet Healthcare Corp.*^		613,107
	15,574	UnitedHealth Group, Inc.		1,574,376

				17,884,326

	Hotels, Restaurants & Leisure (0.3%):
	18,709	McDonald’s Corp.		1,753,033
	12,153	SeaWorld Entertainment, Inc.		217,539
	1,889	Wyndham Worldwide Corp.		162,001

				2,132,573

	Household Durables (0.1%):
	3,000	Alpine Electronics, Inc.^		49,342
	31,698	Cyrela Brazil Realty SA Empreendimentos e Participacoes		131,936
	104,000	Haier Electronics Group Co., Ltd.		245,813
	41,778	MRV Engenharia e Participacoes SA		117,919
	7,300	Rinnai Corp.		491,643
	18,900	Sony Corp.		384,846

				1,421,499

	Household Products (0.8%):
	14,895	Colgate-Palmolive Co.		1,030,585
	1,043	Energizer Holdings, Inc.		134,088
	5,451	Kimberly-Clark Corp.		629,809
	50,384	Procter & Gamble Co. (The)		4,589,478

				6,383,960

	Independent Power and Renewable Electricity Producers (0.6%):
	51,570	AES Corp. (The)		710,119
	46,687	Calpine Corp.*		1,033,183


Shares			Fair Value

	Common Stocks, continued
	Independent Power and Renewable Electricity Producers, continued
	5,123	NextEra Energy Partners LP^	$	172,901
	11,954	NextEra Energy, Inc.		1,270,591
	32,297	NRG Energy, Inc.^		870,404
	9,032	TerraForm Power, Inc.*(a)(b)		264,963
	3,476	TerraForm Power, Inc., Class A		107,339

				4,429,500

	Industrial Conglomerates (1.4%):
	858	3M Co.		140,987
	170,219	Beijing Enterprises Holdings, Ltd.		1,330,826
	7,944	Danaher Corp.		680,880
	142,156	General Electric Co.		3,592,282
	197,000	Keppel Corp., Ltd.		1,314,863
	12,446	Koninklijke Philips Electronics NV		361,329
	25,119	Siemens AG, Registered Shares		2,848,413

				10,269,580

	Insurance (1.9%):
	1,398	ACE, Ltd.		160,602
	124,400	AIA Group, Ltd.		685,079
	8,082	Allstate Corp. (The)		567,761
	27,295	American International Group, Inc.		1,528,793
	44,805	AXA SA		1,034,718
	2,505	Axis Capital Holdings, Ltd.		127,980
	4	Berkshire Hathaway, Inc., Class A*^		904,000
	12,164	Berkshire Hathaway, Inc., Class B*		1,826,424
	1,093	Chubb Corp. (The)		113,093
	3,178	CNA Financial Corp.^		123,020
	102,653	Legal & General Group plc		394,223
	4,130	Lincoln National Corp.		238,177
	16,385	Marsh & McLennan Cos., Inc.		937,877
	14,847	MetLife, Inc.		803,074
	22,300	MS&AD Insurance Group Holdings, Inc.		529,755
	19,500	NKSJ Holdings, Inc.		490,117
	6,067	Prudential Financial, Inc.		548,821
	49,043	Prudential plc		1,128,447
	1,725	Reinsurance Group of America, Inc.		151,145
	35,500	Sony Financial Holdings, Inc.		523,570
	46,600	Tokio Marine Holdings, Inc.		1,513,577
	15,776	XL Group plc, Class B		542,221

				14,872,474

	Internet & Catalog Retail (0.2%):
	5,842	Amazon.com, Inc.*		1,813,065

	Internet Software & Services (2.2%):
	30,100	DeNA Co., Ltd.^		359,673
	44,191	eBay, Inc.*		2,479,999
	15,437	Facebook, Inc., Class A*		1,204,395
	4,936	Google, Inc., Class A*		2,619,338
	7,064	Google, Inc., Class C*		3,718,489
	63,300	Gree, Inc.^		381,582
	28,140	SINA Corp.*		1,052,717


Shares			Fair Value

	Common Stocks, continued
	Internet Software & Services, continued
	83,283	Twitter, Inc.*^	$	2,987,361
	17,133	Uber Technologies, Inc.*(a)(b)		2,283,315

				17,086,869

	IT Services (1.2%):
	1,652	Accenture plc, Class A		147,540
	523	Alliance Data Systems Corp.*		149,604
	3,055	Amdocs, Ltd.		142,531
	14,472	Atos Origin SA		1,145,077
	2,856	Computer Sciences Corp.		180,071
	2,987	Fidelity National Information Services, Inc.		185,791
	6,293	International Business Machines Corp.		1,009,649
	35,888	MasterCard, Inc., Class A		3,092,111
	10,391	Visa, Inc., Class A		2,724,520
	52,314	Worldline SA*		1,011,917

				9,788,811

	Leisure Products (0.1%):
	5,600	Namco Bandai Holdings, Inc.		118,882
	24,500	Nikon Corp.^		325,366
	22,500	Sega Sammy Holdings, Inc.		288,710
	7,700	Yamaha Corp.		114,389

				847,347

	Life Sciences Tools & Services (0.6%):
	24,519	Agilent Technologies, Inc.		1,003,808
	855	Mettler-Toledo International, Inc.*^		258,603
	13,897	PerkinElmer, Inc.^		607,716
	15,190	Thermo Fisher Scientific, Inc.		1,903,155
	4,825	Waters Corp.*		543,874

				4,317,156

	Machinery (1.1%):
	4,016	CNH Industrial NV		32,366
	29,402	Colfax Corp.*^		1,516,262
	75,747	Cummins India, Ltd.		1,044,108
	1,915	Dover Corp.^		137,344
	2,900	Fanuc, Ltd.		478,692
	164,090	Haitian International Holdings, Ltd.		344,105
	122,000	IHI Corp.		619,538
	17,100	Komatsu, Ltd.		379,162
	29,000	Kubota Corp.		421,187
	129,000	Mitsubishi Heavy Industries, Ltd.		713,381
	5,700	Nabtesco Corp.^		136,864
	11,448	PACCAR, Inc.		778,578
	1,065	Parker Hannifin Corp.^		137,332
	13,332	Samsung Heavy Industries Co., Ltd.		239,762
	1,000	SMC Corp.		260,451
	14,343	Stanley Black & Decker, Inc.		1,378,075
	3,200	THK Co., Ltd.		77,272

				8,694,479

	Media (1.0%):
	38,908	Comcast Corp., Class A		2,257,053
	10,852	DISH Network Corp., Class A*		791,002


Shares			Fair Value

	Common Stocks, continued
	Media, continued
	33,104	Grupo Televisa SAB*	$	225,750
	14,308	Liberty Broadband Corp., Class C*^		712,825
	7,085	Liberty Broadband Corp., Class A*		354,888
	45,381	Liberty Media Corp., Class C*		1,589,696
	20,948	Liberty Media Corp.*		738,836
	17,990	Manchester United plc, Class A*		286,041
	101,700	RAI Way SpA*		392,522
	2,382	RTL Group		226,333
	1,128	Time Warner Cable, Inc.		171,524
	2,200	TV Asahi Holdings Corp.		34,736
	1,429	Viacom, Inc., Class B		107,532
	56,459	Zon Multimedia Servicos de Telecommunicacoes e Multimedia SGPS SA		357,371

				8,246,109

	Metals & Mining (2.2%):
	177,923	Antofagasta plc		2,065,482
	63,228	Barrick Gold Corp., ADR		679,701
	40,304	BHP Billiton plc		861,989
	53,384	Constellium NV*		877,099
	60,918	Eldorado Gold Corp.		371,330
	136,556	First Quantum Minerals, Ltd.		1,941,059
	145,209	Freeport-McMoRan Copper & Gold, Inc.		3,392,084
	76,765	Goldcorp, Inc.		1,421,688
	303,956	Platinum Group Metals, Ltd.*		143,931
	73,949	Rio Tinto plc		3,406,600
	57,449	Southern Copper Corp.^		1,620,062

				16,781,025

	Multiline Retail (0.0%):
	2,175	Kohl’s Corp.^		132,762
	2,073	Macy’s, Inc.^		136,300
	2,800	Ryohin Keikaku Co., Ltd.		346,036

				615,098

	Multi-Utilities (0.6%):
	23,266	CenterPoint Energy, Inc.		545,122
	14,815	Dominion Resources, Inc.		1,139,274
	41,698	GDF Suez		973,754
	67,090	National Grid plc		956,306
	7,813	RWE AG		244,580
	9,816	Sempra Energy		1,093,110

				4,952,146

	Oil, Gas & Consumable Fuels (4.8%):
	28,501	Anadarko Petroleum Corp.		2,351,332
	19,173	Antero Midstream Partners LP*		527,258
	112,886	Athabasca Oil Corp.*		251,722
	42,054	BG Group plc		559,701
	59,649	Cameco Corp.		978,840
	2,987	Chevron Corp.		335,082
	3,655	Cimarex Energy Co.		387,430
	31,317	CONSOL Energy, Inc.^		1,058,828
	23,787	Diamondback Energy, Inc.*^		1,421,987


Shares			Fair Value

	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	30,140	Eclipse Resources Corp.*^	$	211,884
	3,818	EOG Resources, Inc.		351,523
	4,771	EQT Corp.		361,165
	19,714	Gulfport Energy Corp.*		822,862
	136,400	INPEX Corp.		1,513,657
	27,615	KazMunaiGas Exploration Production JSC, Registered Shares, GDR		400,372
	63,925	Lookout, Inc.*(a)(b)		730,222
	135,128	Lundin Petroleum AB*^		1,933,490
	3,387	Marathon Oil Corp.		95,818
	1,960	Marathon Petroleum Corp.		176,910
	15,127	Oasis Petroleum, Inc.*^		250,201
	154,200	Oil & Natural Gas Corp., Ltd.		830,962
	277,414	Ophir Energy plc*		602,282
	116,157	Palantir Technologies, Inc.*(a)(b)		931,579
	7,669	Parsley Energy, Inc., Class A*^		122,397
	71,761	Petroleo Brasileiro SA, Sponsored ADR		523,856
	49,178	Phillips 66		3,526,062
	4,315	Pioneer Natural Resources Co.		642,288
	52,935	Royal Dutch Shell plc, Sponsored ADR		3,543,997
	203,628	Statoil ASA		3,570,909
	22,665	Stone Energy Corp.*^		382,585
	4,475	Suncor Energy, Inc.		142,216
	32,673	Talisman Energy, Inc.		255,830
	10,686	Tesoro Corp.^		794,504
	20,473	Total SA		1,055,447
	41,344	Total SA, Sponsored ADR, Sponsored ADR^		2,116,812
	47,155	TransCanada Corp.^		2,318,166
	3,490	Valero Energy Corp.		172,755

				36,252,931

	Paper & Forest Products (0.0%):
	3,070	International Paper Co.		164,491

	Personal Products (0.3%):
	10,433	Beiersdorf AG^		850,841
	79,423	Hypermarcas SA*		497,664
	2,428	L’Oreal SA		407,582

				1,756,087

	Pharmaceuticals (4.2%):
	51,662	Abbvie, Inc.		3,380,761
	10,955	Actavis, Inc. plc*		2,819,927
	4,859	Allergan, Inc.		1,032,975
	31,100	Astellas Pharma, Inc.		432,910
	22,957	AstraZeneca plc		1,614,727
	5,926	AstraZeneca plc, Sponsored ADR^		417,072
	18,819	Bristol-Myers Squibb Co.		1,110,886
	23,382	Catalent, Inc.*^		651,890
	3,501	Eli Lilly & Co.		241,534
	59,309	Merck & Co., Inc.		3,368,158
	6,239	Mylan, Inc.*		351,692
	18,513	Novartis AG, Registered Shares		1,703,108
	15,800	Otsuka Holdings Co., Ltd.		473,951


Shares			Fair Value

	Common Stocks, continued
	Pharmaceuticals, continued
	4,641	Perrigo Co. plc	$	775,790
	115,919	Pfizer, Inc.		3,610,876
	16,221	Roche Holding AG		4,397,874
	6,890	Sanofi-Aventis SA, Sponsored ADR		314,253
	26,019	Sanofi-Aventis SA		2,370,983
	2,100	Sawai Pharmaceutical Co., Ltd.^		121,003
	20,453	Shire plc		1,446,938
	460,000	Sino Biopharmaceutical, Ltd.		416,134
	25,005	Teva Pharmaceutical Industries, Ltd., Sponsored ADR		1,438,037

				32,491,479

	Professional Services (0.1%):
	42,526	Qualicorp SA*		444,913

	Real Estate Investment Trusts (REITs) (0.4%):
	9,828	American Capital Agency Corp.		214,545
	7,794	American Tower Corp.		770,437
	10,532	Crown Castle International Corp.		828,869
	323,539	Fibra UNO Amdinistracion SA		953,695
	293,363	TF Administradora Industrial S de RL de C.V.		613,953

				3,381,499

	Real Estate Management & Development (1.4%):
	74,935	BR Malls Participacoes SA		463,338
	649,000	CapitaLand, Ltd.		1,612,926
	338,000	China Overseas Land & Investment, Ltd.		997,616
	38,000	Daikyo, Inc.*		58,855
	4,400	Daito Trust Construction Co., Ltd.		498,276
	646,000	Global Logistic Properties, Ltd.		1,208,475
	21,000	Nomura Real Estate Holdings, Inc.		360,923
	67,467	St. Joe Co. (The)*^		1,240,718
	144,000	Sun Hung Kai Properties, Ltd.		2,177,721
	180,000	Wharf Holdings, Ltd. (The)		1,292,765

				9,911,613

	Road & Rail (0.9%):
	16,462	Canadian National Railway Co.^		1,134,396
	24,792	CSX Corp.		898,214
	28,600	East Japan Railway Co.		2,143,088
	14,285	J.B. Hunt Transport Services, Inc.^		1,203,511
	25,000	Nippon Express Co., Ltd.		127,167
	7,000	Seino Holdings Co., Ltd.		70,426
	16,898	Union Pacific Corp.		2,013,059

				7,589,861

	Semiconductors & Semiconductor Equipment (0.4%):
	12,006	Infineon Technologies AG		128,702
	4,467	KLA-Tencor Corp.^		314,119
	19,400	ROHM Co., Ltd.		1,177,169
	596	Samsung Electronics Co., Ltd.		716,521
	142,000	Taiwan Semiconductor Manufacturing Co., Ltd.		626,646

				2,963,157


Shares			Fair Value

	Common Stocks, continued
	Software (1.7%):
	86,301	Activision Blizzard, Inc.	$	1,738,965
	2,269	Adobe Systems, Inc.*		164,956
	2,045	Check Point Software Technologies, Ltd.*		160,676
	11,900	Electronic Arts, Inc.*		559,479
	53,300	Gungho Online Enetertainment, Inc.^		194,328
	1,734	Intuit, Inc.		159,857
	44,916	Microsoft Corp.		2,086,348
	16,800	Nexon Co., Ltd.		156,673
	10,200	Nintendo Co., Ltd.		1,063,234
	80,656	Oracle Corp.		3,627,101
	9,978	SAP AG		705,416
	3,800	Trend Micro, Inc.^		103,985
	23,266	UbiSoft Entertainment SA*		425,895
	45,940	Veeva Systems, Inc., Class A*^		1,213,275
	4,253	VMware, Inc., Class A*^		350,958

				12,711,146

	Specialty Retail (0.2%):
	2,400	Autobacs Seven Co., Ltd.		34,177
	2,044	Lowe’s Cos., Inc.		140,627
	15,800	Sanrio Co., Ltd.^		393,046
	800	Shimamura Co., Ltd.^		68,938
	296,000	Yamada Denki Co., Ltd.^		988,125
	222,760	Zhongsheng Group Holdings, Ltd.^		200,913

				1,825,826

	Technology Hardware, Storage & Peripherals (0.2%):
	2,278	Apple, Inc.		251,446
	211,000	NEC Corp.		615,231
	1,630	Samsung SDI Co., Ltd.		169,489
	2,448	Seagate Technology plc		162,792
	2,403	Western Digital Corp.		266,012

				1,464,970

	Textiles, Apparel & Luxury Goods (0.5%):
	52,300	Coach, Inc.		1,964,388
	255	Hermes International SA		91,046
	8,056	Lululemon Athletica, Inc.*^		449,444
	4,361	LVMH Moet Hennessy Louis Vuitton SA		689,541

				3,194,419

	Tobacco (0.1%):
	5,733	Philip Morris International, Inc.		466,953

	Trading Companies & Distributors (0.7%):
	16,891	Fastenal Co.^		803,336
	68,000	Mitsubishi Corp.		1,247,320
	197,900	Mitsui & Co., Ltd.		2,646,002
	67,600	Sumitomo Corp.		694,435

				5,391,093

	Transportation Infrastructure (0.0%):
	615,711	Delta Topco, Ltd.*(a)(b)		365,178
	4,000	Kamigumi Co., Ltd.		35,580
	16,337	Novorossiysk Commercial Sea Trade Port JSC, Registered Shares, GDR		32,395

				433,153


Shares			Fair Value

	Common Stocks, continued
	Water Utilities (0.1%):
	14,148	American Water Works Co., Inc.	$	754,088

	Wireless Telecommunication Services (0.5%):
	27,132	America Movil SAB de C.V., Series L, Sponsored ADR^		601,788
	341,400	Axiata Group Berhad		687,886
	105,029	Far EasTone Telecommunications Co., Ltd.		241,816
	14,300	KDDI Corp.		894,904
	9,900	NTT DoCoMo, Inc.		144,942
	73,000	Taiwan Mobile Co., Ltd.		241,094
	156,902	Vodafone Group plc		537,552
	15,162	Vodafone Group plc, Sponsored ADR		518,086

				3,868,068

	Total Common Stocks (Cost $396,539,998)			422,648,074

	Preferred Stocks (1.9%):
	Auto Components (0.3%):
	61,095	Mobileye N.V., Series F, Preferred Shares*(a)(b)		2,354,112

	Automobiles (0.2%):
	8,234	Volkswagen AG, Preferred Shares		1,839,026

	Banks (0.8%):
	26,482	Citigroup Capital XIII, Series A, Preferred Shares^		703,891
	176,000	Deutsche Bank Capital Funding Trust VII, Preferred Shares(c)		179,186
	32,500	GMAC Capital Trust I, Series 2, Preferred Shares		857,349
	15,683	HSBC Holdings plc, Series 2, Preferred Shares		416,697
	38,941	Itau Unibanco Holding SA, Preferred Shares		507,060
	21,833	RBS Capital Fund Trust V, Series E, Preferred Shares		530,542
	27,501	RBS Capital Funding Trust VII, Series G, Preferred Shares		670,749
	14,719	Royal Bank of Scotland Group plc, Series T, Preferred Shares, Sponsored ADR		375,187
	12,375	Royal Bank of Scotland Group plc, Series M, Preferred Shares, Sponsored ADR^		305,168
	9,710	Royal Bank of Scotland Group plc, Series Q, Preferred Shares, Sponsored ADR		246,149
	7,409	U.S. Bancorp, Series G, Preferred Shares		200,932
	14,159	U.S. Bancorp, Series F, Preferred Shares^		416,983
	541,000	USB Capital IX, Preferred Shares		435,505

				5,845,398

	Diversified Financial Services (0.0%):
	41,670	Fannie Mae, Series S, Preferred Shares		161,263

	Food & Staples Retailing (0.1%):
	10,967	Companhia Brasileira de Destribuicao Grupo Pao de Acucar, Series A, Preferred Shares		407,073

	Health Care Providers & Services (0.0%):
	186,439	Invitae Corp., Series F, Preferred Shares(a)(b)		372,878


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Preferred Stocks, continued
	Machinery (0.0%):
	2,123	Stanley Black & Decker, Inc., Preferred Shares^	$	249,962

	Multi-Utilities (0.1%):
	7,500	Dominion Resources, Inc., Preferred Shares		390,075

	Real Estate Investment Trusts (REITs) (0.2%):
	2,976	American Tower Corp., Series A, Preferred Shares		342,121
	13,044	Health Care REIT, Inc., Series 2, Preferred Shares		861,311

				1,203,432

	Real Estate Management & Development (0.0%):
	15,600	Forestar Group, Inc., Preferred Shares		331,188

	Semiconductors & Semiconductor Equipment (0.2%):
	1,918	Samsung Electronics Co., Ltd., Preferred Shares		1,794,913

	Total Preferred Stocks (Cost $12,663,433)			14,949,320

	Warrants (0.0%):
	Paper & Forest Products (0.0%):
	157,250	TFS Corp., Ltd.*(c)		96,646

	Real Estate Management & Development (0.0%):
	11,666	Sun Hung Kai Properties, Ltd.*		29,489

	Total Warrants (Cost $—)			126,135

	Convertible Preferred Stocks (0.3%):
	Aerospace & Defense (0.0%):
	5,063	United Technologies Corp., 0.49%		310,514

	Banks (0.0%):
	272	Wells Fargo & Co., Series L, Class A, 0.02%		330,480

	Electric Utilities (0.1%):
	10,884	NextEra Energy, Inc., 0.33%		746,098

	Metals & Mining (0.0%):
	11,422	Cliffs Natural Resources, Inc., Series A, 4.18%		76,527

	Real Estate Investment Trusts (REITs) (0.2%):
	8,784	Crown Castle International Corp., Series A		904,665

	Total Convertible Preferred Stocks (Cost $2,318,154)			2,368,284

	Right (0.0%):
	Media (0.0%):
	4,279	Liberty Broadband Corp.*		40,651

	Total Right (Cost $—)			40,651

	Convertible Bonds (2.1%):
	Automobiles (0.1%):
$	800,000	Volkswagen International Finance NV, 5.50%, 11/9/15+(c)		1,070,525

	Banks (0.1%):
	753,000	JPMorgan Chase & Co., Series Q, 5.15%, 12/31/49, Callable 5/1/23 @ 100, Perpetual Bond^(d)		709,326


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Convertible Bonds, continued
	Biotechnology (0.4%):
$	143,000	BioMarin Pharmaceutical, Inc., 0.75%, 10/15/18	$	168,114
	155,000	BioMarin Pharmaceutical, Inc., 1.50%, 10/15/20^		189,972
	244,000	Cubist Pharmaceuticals, Inc., 2.50%, 11/1/17		845,308
	331,000	Gilead Sciences, Inc., Series D, 1.63%, 5/1/16		1,369,925

				2,573,319

	Energy Equipment and Services (0.0%):
	191,000	Suzlon Energy, Ltd., Series SUEL, 3.25%, 7/16/19, Callable 1/16/15 @ 100.85(c)(d)		173,170

	Food & Staples Retailing (0.1%):
	500,000	Olam International, Ltd., 6.00%, 10/15/16(c)		527,500

	Food Products (0.0%):
	400,000	REI Agro, Ltd., Registered Shares, 5.50%, 11/13/14(a)(e)		39,000

	Health Care Providers & Services (0.1%):
	80,000	Brookdale Senior Living, Inc., 2.75%, 6/15/18		108,950
	463,000	WellPoint, Inc., 2.75%, 10/15/42		796,939

				905,889

	Internet Software & Services (0.0%):
	380,000	SINA Corp., 1.00%, 12/1/18, Callable 12/1/16 @ 100		350,313
	375,000	Twitter, Inc., 1.00%, 9/15/21(c)		326,719

				677,032

	Oil, Gas & Consumable Fuels (0.2%):
	886,000	Cobalt International Energy, Inc., 2.63%, 12/1/19		534,923
	1,111,000	Cobalt International Energy, Inc., 3.13%, 5/15/24^		746,453
	70,000	Dana Gas Sukuk, Ltd., 7.00%, 10/31/17		61,600

				1,342,976

	Pharmaceuticals (0.2%):
	402,000	Mylan, Inc., 3.75%, 9/15/15		1,698,952

	Real Estate Management & Development (0.4%):
	750,000	CapitaLand, Ltd., 2.10%, 11/15/16+(c)		566,337
	1,500,000	CapitaLand, Ltd., Series CAPL, 2.95%, 6/20/22, Callable 6/20/17 @ 100+(c)		1,137,998
	500,000	CapitaLand, Ltd., 1.95%, 10/17/23, Callable 10/17/18 @ 100+(c)		381,994
	250,000	CapitaLand, Ltd., 1.95%, 10/17/23, Callable 10/17/18 @ 100+(c)		190,997
	406,000	Forest City Enterprises, Inc., 4.25%, 8/15/18		463,348

				2,740,674


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Convertible Bonds, continued
	Semiconductors & Semiconductor Equipment (0.1%):
$	246,000	Intel Corp., 3.25%, 8/1/39	$	427,733

	Software (0.1%):
	420,000	Salesforce.com, Inc., 0.25%, 4/1/18		478,538
	428,000	Take-Two Interactive Software, Inc., 1.75%, 12/1/16		647,350

				1,125,888

	Wireless Telecommunication Services (0.3%):
	500,000	Telecom Italia Finance SA, Registered Shares, 6.13%, 11/15/16+(c)		709,005
	300,000	Telefonica SA, Series TIT, 6.00%, 7/24/17+		372,772
	900,000	Telefonica SA, Series TEF, 4.90%, 9/25/17+(c)		1,094,905

				2,176,682

	Total Convertible Bonds (Cost $15,152,025)			16,188,666

	Floating Rate Loans (1.1%):
	Biotechnology (0.2%):
	1,609,718	Grifols Worldwide Operations USA, 3.17%, 3/3/21(d)		1,585,572

	Construction & Engineering (0.1%):
	304,147	Autobahn Tank & Rast Holding GmbH, 3.33%, 12/10/18(d)		366,919
	122,640	Autobahn Tank & Rast Holding GmbH, 3.58%, 12/10/19(d)		147,479

				514,398

	Energy Equipment & Services (0.3%):
	377,055	Drillships Financing Holdings, Inc., 6.00%, 3/31/21(d)		293,869
	478,006	Drillships Ocean Ventures, Inc., 5.50%, 7/9/21(d)		382,405
	405,533	Fieldwood Energy LLC, 9.38%, 9/20/20(d)		294,518
	1,299,698	Seadrill, Ltd., 4.00%, 2/21/21(d)		1,005,317

				1,976,109

	Hotels, Restaurants & Leisure (0.2%):
	1,728,577	Hilton Worldwide Finance LLC, 3.50%, 10/25/20(d)		1,706,244

	Media (0.2%):
	292,000	AP One Channel Center Owner LP, Series 4814, 5.00%, 7/15/19(b)(d)		292,000
	472,000	Charter Communications Operating LLC, 4.25%, 8/12/21(d)		474,657
	722,088	Univision Communications, Inc., 4.00%, 3/1/20(d)		705,120
	389,246	Univision Communications, Inc., 4.00%, 3/1/20(d)		380,098

				1,851,875

	Oil, Gas & Consumable Fuels (0.1%):
	104,864	Sheridan Production Partners, 4.25%, 12/2/20(d)		82,843


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Floating Rate Loans, continued
	Oil, Gas & Consumable Fuels, continued
$	753,671	Sheridan Production Partners, 4.25%, 12/2/20(d)	$	595,399
	39,120	Sheridan Production Partners, 4.25%, 12/2/20(d)		30,905

				709,147

	Pharmaceuticals (0.0%):
	188,674	Mallinckrodt International Finance SA, 3.25%, 2/24/21(d)		184,806

	Total Floating Rate Loans (Cost $9,380,783)			8,528,151

	Corporate Bonds (2.5%):
	Automobiles (0.1%):
	620,000	General Motors Financial Co., Inc., 3.50%, 7/10/19^		633,096

	Banks (0.4%):
	307,000	Bank of America Corp., 1.32%, 3/22/18, MTN(d)		309,243
	385,000	Bank of America Corp., 2.60%, 1/15/19		387,994
	430,000	CIT Group, Inc., 4.75%, 2/15/15(c)		430,323
	410,000	HSBC USA, Inc., 1.63%, 1/16/18		408,421
	290,000	JPMorgan Chase & Co., 6.13%, 6/27/17		319,997
	1,565,000	JPMorgan Chase & Co., Series X, 6.10%, 10/29/49, Callable 10/1/24 @ 100(d)		1,561,087

				3,417,065

	Beverages (0.0%):
	258,000	Anheuser-Busch InBev NV Worldwide, Inc., 1.38%, 7/15/17		257,771

	Capital Markets (0.6%):
	1,258,000	Ford Motor Credit Co. LLC, 1.72%, 12/6/17		1,244,999
	408,000	Ford Motor Credit Co. LLC, 2.38%, 1/16/18^		410,364
	395,000	Ford Motor Credit Co. LLC, 5.00%, 5/15/18		429,186
	662,000	Goldman Sachs Group, Inc. (The), Series L, 5.70%, 12/29/49, Callable 5/10/19 @ 100^(d)		669,613
	361,000	Merrill Lynch & Co., 6.88%, 4/25/18, MTN		414,637
	268,000	Morgan Stanley, Series G, 7.30%, 5/13/19		317,887
	489,000	Morgan Stanley, Series H, 5.45%, 12/29/49, Callable 7/15/19 @ 100^(d)		489,880

				3,976,566

	Communications Equipment (0.0%):
	110,000	Hughes Satellite Systems Corp., 7.63%, 6/15/21		121,000

	Consumer Finance (0.2%):
	578,000	Ally Financial, Inc., 2.75%, 1/30/17^		576,197
	431,000	Ally Financial, Inc., 3.50%, 1/27/19^		425,828
	370,000	Synchrony Financial, 3.75%, 8/15/21, Callable 6/15/21 @ 100		377,951

				1,379,976


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Corporate Bonds, continued
	Diversified Financial Services (0.3%):
$	558,000	Bank of America Corp., 2.00%, 1/11/18, MTN	$	557,576
	298,000	Citigroup, Inc., Series A, 5.95%, 12/29/49, Callable 1/30/23 @ 100^(d)		293,530
	272,000	General Electric Capital Corp., Series A, 5.55%, 5/4/20, MTN		312,603
	600,000	General Electric Capital Corp., Series B, 6.25%, 12/15/49, Callable 12/15/22 @ 100^(d)		653,251
	420,000	General Electric Capital Corp., 6.38%, 11/15/67, Callable 11/15/17 @ 100(d)		450,450
	222,000	Hyundai Capital America, Inc., 2.13%, 10/2/17(c)		223,082

				2,490,492

	Health Care Equipment & Supplies (0.1%):
	820,000	Medtronic, Inc., 3.15%, 3/15/22(c)		830,394

	IT Services (0.0%):
	130,000	SunGard Data Systems, Inc., 7.38%, 11/15/18, Callable 2/9/15 @ 105.53		135,200

	Media (0.1%):
	245,000	Cablevision Systems Corp., 5.88%, 9/15/22^		248,063
	200,000	NBCUniversal Enterprise, Inc., 5.25%, 12/31/99, Callable 3/19/21 @ 100(c)		207,500

				455,563

	Oil, Gas & Consumable Fuels (0.2%):
	399,000	Chesapeake Energy Corp., 3.48%, 4/15/19, Callable 4/15/15 @ 101(d)		391,020
	325,000	Reliance Holdings USA, Inc., 4.50%, 10/19/20(c)		339,608
	250,000	Reliance Holdings USA, Inc., 5.40%, 2/14/22(c)		270,827
	270,000	Sabine Pass Liquefaction LLC, 5.63%, 4/15/23^		264,600

				1,266,055

	Pharmaceuticals (0.2%):
	475,000	Forest Laboratories, Inc., 4.38%, 2/1/19(c)		501,776
	331,000	Forest Laboratories, Inc., 5.00%, 12/15/21, Callable 9/16/21 @ 100(c)		358,415
	513,000	Mylan, Inc., 2.55%, 3/28/19^		511,030

				1,371,221

	Real Estate Investment Trusts (REITs) (0.0%):
	162,000	American Tower Corp., 3.40%, 2/15/19^		164,887

	Specialty Retail (0.1%):
	393,000	Best Buy Co., Inc., 5.00%, 8/1/18		406,509

	Technology Hardware, Storage & Peripherals (0.0%):
	238,000	Xerox Corp., 6.35%, 5/15/18^		269,111

	Thrifts & Mortgage Finance (0.0%):
	365,000	Capital One Bank USA NA, Series BNKT, 2.15%, 11/21/18, Callable 10/21/18 @ 100		363,095


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Corporate Bonds, continued
	Transportation Infrastructure (0.1%):
$	516,343	Delta Topco, Ltd., 10.00%, 11/24/60(a)(b)	$	518,360

	Wireless Telecommunication Services (0.1%):
	1,070,000	AT&T, Inc., 2.38%, 11/27/18^		1,078,288

	Total Corporate Bonds (Cost $19,006,304)			19,134,649

	Foreign Bonds (9.2%):
	Banks (0.2%):
	610,000	Lloyds TSB Bank plc , Series E, 13.00%, 1/29/49, Callable 1/21/29 @ 100+(d)		1,619,378

	Metals & Mining (0.0%):
	270,000	Constellium NV , 7.00%, 1/15/23, Callable 1/15/18 @ 105.25+(c)		312,791

	Sovereign Bonds (9.0%):
	5,769,000	Australian Government, Series 122, 5.25%, 3/15/19+		5,284,244
	10,510,000	Australian Government, Series 143, 2.75%, 10/21/19+		8,765,953
	3,022,000	Brazil Nota do Tesouro Nacional, Series NTNF, 1.29%, 1/1/17+(f)(g)		1,083,288
	2,547,000	Brazil Nota do Tesouro Nacional, Series NTNF, 1.86%, 1/1/21+(f)(g)		865,774
	8,588,000	Government of Poland, 5.75%, 10/25/21+		2,948,779
	24,694,000,000	Indonesia Government, Series FR69, 7.88%, 4/15/19+		2,007,135
	6,272,000,000	Indonesia Government, Series FR70, 8.38%, 3/15/24+		525,622
	150,000,000	Japan Treasury Discount Bill, Series 482, 0.00%, 1/8/15+(f)		1,252,505
	160,000,000	Japan Treasury Discount Bill, Series 499, 0.00%, 2/4/15+(f)		1,336,005
	80,000,000	Japan Treasury Discount Bill, Series 478, 0.00%, 3/10/15+(f)		667,969
	160,000,000	Japan Treasury Discount Bill, Series 500, 0.00%, 3/23/15+(f)		1,336,005
	49,273,000	Mexican Bonos Desarr, 8.00%, 12/7/23+(d)(h)		3,839,063
	96,411,800	Mexican Bonos Desarr, Series M 20, 10.00%, 12/5/24+(d)(h)		8,561,039
	220,707,000	Mexican Cetes, Series BI, 0.00%, 1/22/15+(h)		1,494,024
	74,245,400	Mexican Cetes, Series BI, 0.00%, 2/5/15+(h)		501,988
	117,581,800	Mexican Cetes, Series BI, 0.00%, 2/19/15+(h)		794,156
	198,377,600	Mexican Cetes, Series BI, 0.00%, 3/5/15+(h)		1,338,028
	225,021,200	Mexican Cetes, Series BI, 0.00%, 3/19/15+(h)		1,515,798
	150,698,400	Mexican Cetes, Series BI, 0.00%, 4/1/15+(h)		1,014,059
	115,860,000	Mexican Cetes, Series BI, 0.00%, 4/16/15+(h)		778,647
	152,284,900	Mexican Cetes, Series BI, 0.00%, 4/30/15+(h)		1,022,225


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Foreign Bonds, continued
	Sovereign Bonds, continued
$	235,914,000	Mexican Cetes, Series BI, 0.00%, 5/28/15+(h)	$	1,580,010
	231,730,000	Mexican Cetes, Series BI, 0.00%, 6/11/15+(h)		1,549,318
	2,278,000	New Zealand Government, Series 319, 5.00%, 3/15/19+		1,875,365
	4,019,000	Nota do Tesouro Nacional, Series NTNB, 0.00%, 5/15/23+(g)		3,801,374
	4,555,000	Nota do Tesouro Nacional, Series NTNF, 0.97%, 1/1/25+(f)(g)		1,501,011
	7,328,000	Poland Government Bond, Series 1020, 5.25%, 10/25/20+		2,408,414
	6,124,618	United Kingdom Treasury, 2.25%, 9/7/23+(c)		10,000,895

				69,648,693

	Total Foreign Bonds (Cost $76,543,041)			71,580,862

	Yankee Dollars (2.8%):
	Banks (0.8%):
	275,000	Banco Estado Chile, 2.03%, 4/2/15		276,035
	450,000	Banco Santander Chile SA, 2.11%, 6/7/18(c)(d)		455,625
	1,172,000	BNP Paribas SA, 2.40%, 12/12/18^		1,183,159
	253,000	Export-Import Bank of Korea, 2.88%, 9/17/18		259,640
	1,275,000	HSBC Holdings plc, 6.38%, 12/29/49, Callable 9/17/24 @ 100^(d)		1,287,750
	221,000	Intesa Sanpaolo SpA, 3.88%, 1/16/18^		230,095
	1,065,000	Intesa Sanpaolo SpA, 3.88%, 1/15/19		1,102,694
	200,000	Lloyds Bank plc, 2.30%, 11/27/18		201,889
	250,000	Rabobank Nederland, 3.95%, 11/9/22		254,657
	553,000	State Bank of India, 3.62%, 4/17/19(c)		560,783
	460,000	Sumitomo Mitsui Banking Corp., 2.45%, 1/10/19		462,082
	366,000	UBS AG Stamford CT, 2.38%, 8/14/19		365,978

				6,640,387

	Capital Markets (0.2%):
	501,340	Dana Gas Sukuk, Ltd., 9.00%, 10/31/17, Callable 10/13/17 @ 103(c)		451,206
	1,098,330	Dana Gas Sukuk, Ltd., 7.00%, 10/31/17(c)		966,530

				1,417,736

	Diversified Financial Services (0.1%):
	400,000	CSG Guernsey I, Ltd., Registered Shares, 7.88%, 2/24/41, Callable 8/24/16 @ 100(c)(d)		424,000
	400,000	Odebrecht Finance, Ltd., 4.38%, 4/25/25(c)		343,000

				767,000

	Diversified Telecommunication Services (0.1%):
	489,000	Intelsat Jackson Holdings SA, 7.50%, 4/1/21, Callable 4/1/15 @ 103.75		523,230


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Yankee Dollars, continued
	Electric Utilities (0.0%):
$	85,000	Empresa Distribuidora Y Comercializadora Norte SA, 9.75%, 10/25/22, Callable 10/25/18 @ 104.88(c)	$	59,415

	Government (0.0%):
	178,000	Provincia de Buenos Aires, 10.88%, 1/26/21(c)		161,980

	Industrial Conglomerates (0.1%):
	400,000	Hutchison Whampoa International 11, Ltd., 3.50%, 1/13/17(c)		414,424

	Internet & Catalog Retail (0.3%):
	470,000	Alibaba Group Holding, Ltd., 3.13%, 11/28/21, Callable 9/28/21 @ 100(c)		464,349
	725,000	Alibaba Group Holding, Ltd., 3.60%, 11/28/24, Callable 8/28/24 @ 100(c)		719,086

				1,183,435

	Media (0.0%):
	200,000	Unitymedia Hessen, 5.50%, 1/15/23, Callable 1/15/18 @ 103(c)		209,000

	Oil Gas & Consumable Fuels (0.0%):
	229,000	Petrobras International Finance Co., 5.38%, 1/27/21		212,185

	Oil, Gas & Consumable Fuels (0.3%):
	240,000	Bumi Investment Pte, Ltd., 10.75%, 10/6/17, Callable 2/23/15 @ 105.38(c)(e)		53,400
	1,102,000	Petrobras Global Finance BV, 2.37%, 1/15/19(d)		977,562
	533,000	Petrobras Global Finance BV, 6.25%, 3/17/24^		507,171
	469,000	YPF SA, 8.88%, 12/19/18^(c)		484,993
	283,000	YPF SA, 8.75%, 4/4/24(c)		287,599

				2,310,725

	Paper & Forest Products (0.1%):
	425,000	TFS Corp., Ltd., 11.00%, 7/15/18, Callable 7/15/15 @ 108(c)		450,500

	Real Estate Investment Trusts (REITs) (0.1%):
	516,000	Trust F/1401, 5.25%, 12/15/24(c)		531,532

	Real Estate Management & Development (0.0%):
	200,000	Sun Hung Kai Properties, Ltd., Series E, 4.50%, 2/14/22(c)		212,822

	Road & Rail (0.0%):
	495,000	Inversiones Alsacia SA, 0.00%, 8/18/18(b)(j)		—
	388,779	Inversiones Alsacia SA, 8.00%, 12/31/18, Callable 1/23/15 @ 100(c)		283,809
	173,000	Viterra, Inc., 5.95%, 8/1/20(c)		191,002

				474,811

	Sovereign Bonds (0.6%):
	243,000	Federal Republic of Brazil, 4.88%, 1/22/21		258,188
	1,583,590	Republic of Argentina, Series X, 2.46%, 4/17/17(f)		1,520,247
	949,310	Republic of Argentina, 0.93%, 5/7/24(f)		925,577
	101,000	Republic of Colombia, 7.38%, 1/27/17		111,858


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Yankee Dollars, continued
	Sovereign Bonds, continued
$	178,000	Republic of Hungary, 4.75%, 2/3/15	$	178,417
	534,000	Republic of Hungary, 4.13%, 2/19/18		553,800
	1,028,000	Republic of Turkey, 6.75%, 4/3/18		1,143,650

				4,691,737

	Tobacco (0.0%):
	375,000	B.A.T. International Finance plc, 2.13%, 6/7/17(c)		378,485

	Wireless Telecommunication Services (0.1%):
	200,000	Colombia Telecomm SA ESP, 5.38%, 9/27/22, Callable 9/27/17 @ 102.69(c)		195,000
	572,000	Telecom Italia SpA, 5.30%, 5/30/24(c)		579,150

				774,150

	Total Yankee Dollars (Cost $21,711,149)			21,413,554

	U.S. Government Agency Mortgage (0.1%):
	768,000	Federal National Mortgage Association, 3.00%, 1/25/45		776,880

	Total U.S. Government Agency Mortgage (Cost $768,360)			776,880

	U.S. Treasury Obligations (24.3%):
	U.S. Treasury Bills (18.5%)
	4,230,000	0.01%, 1/2/15(f)		4,230,000
	15,000,000	0.02%, 1/8/15(f)		14,999,969
	10,507,000	0.02%, 1/15/15(f)		10,506,905
	2,000,000	0.02%, 1/22/15(f)		1,999,966
	1,521,000	0.00%, 2/5/15(f)		1,520,964
	12,500,000	0.04%, 2/12/15(f)		12,499,750
	34,484,000	0.02%, 2/19/15(f)		34,483,206
	12,000,000	0.03%, 2/26/15(f)		11,999,628
	13,000,000	0.03%, 3/5/15(f)		12,999,610
	8,000,000	0.02%, 3/12/15(f)		7,999,616
	2,715,000	0.02%, 3/19/15(f)		2,714,886
	4,000,000	0.04%, 3/26/15(f)		3,999,840
	3,000,000	0.04%, 4/2/15(f)		2,999,700
	5,000,000	0.03%, 4/9/15(f)		4,999,630
	7,250,000	0.06%, 5/14/15(f)		7,248,601
	8,500,000	0.06%, 5/21/15(f)		8,498,113

				143,700,384

	U.S. Treasury Notes (5.8%)
	3,956,800	0.25%, 3/31/15		3,958,193
	1,940,000	0.25%, 7/31/15(i)		1,941,364
	4,037,300	1.25%, 10/31/18		4,011,122
	5,250,000	1.63%, 7/31/19		5,258,201
	4,376,800	1.62%, 8/31/19		4,381,588
	5,647,500	2.25%, 4/30/21		5,763,539
	7,527,500	2.00%, 5/31/21		7,565,138
	6,847,700	2.38%, 8/15/24		6,974,492
	5,459,700	2.25%, 11/15/24		5,496,384

				45,350,021

	Total U.S. Treasury Obligations (Cost $188,683,250)			189,050,405

	Purchased Options (1.3%):
	Total Purchased Options (Cost $8,743,630)			10,448,717


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Exchange Traded Funds (0.7%):
$	4,500	ETFS Platinum Trus(i)	$	526,725
	5,330	ETFS Physical Palladium Share(i)		413,022
	112,395	iShares Gold Trus(i)		1,285,799
	28,438	SPDR Gold Trus(i)		3,229,988

	Total Exchange Traded Fund (Cost $6,514,097)			5,455,534

	Securities Held as Collateral for Securities on Loan (5.9%):
	45,894,168	Allianz Variable Insurance Products Securities Lending Collateral Trust(k)		45,894,168

	Total Securities Held as Collateral for Securities on Loan (Cost $45,894,168)			45,894,168

	Unaffiliated Investment Company (0.1%):
	729,538	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(f)		729,538

	Total Unaffiliated Investment Company (Cost $729,538)			729,538

	Total Investment Securities (Cost $804,647,930)(l) — 106.6%			829,333,588
	Net other assets (liabilities) — (6.6)%			(51,590,206	)

	Net Assets — 100.0%		$	777,743,382

Percentages indicated are based on net assets as of December 31, 2014.

ADR—American

Depositary Receipt

GDR—Global

Depositary Receipt

JPY—Notional

amount stated is in Japanese Yen.

MTN—Medium

Term Note

SPDR—

Standard & Poor’s Depository Receipts

*	Non-income producing security.

^	This security or a partial position of this security was on loan as of December 31, 2014. The total value of securities on loan as of December 31, 2014, was $44,326,021.

+	The principal amount is disclosed in local currency and the fair value is disclosed in U.S. Dollars.

(a)

Rule 144A, Section 4(2) or other security which is restricted to resale to institutional investors. The sub-adviser has deemed these securities to be illiquid based on procedures approved by the Board of Trustees. As of December 31, 2014, these securities represent 1.11% of the net assets of the fund.

(b)	Security was valued in good faith pursuant to procedures approved by the Board of Trustees as of December 31, 2014. The total of all such securities represent 1.11% of the net assets of the fund.

(c)	Rule 144A, Section 4(2) or other security which is restricted to resale to institutional investors. The sub-adviser has deemed these securities to be liquid based on procedures approved by the Board of Trustees.

(d)	Variable rate security. The rate presented represents the rate in effect at December 31, 2014. The date presented represents the final maturity date.

(e)	Defaulted bond.

(f)	The rate represents the effective yield at December 31, 2014.

(g)	Principal amount is stated in 1,000 Brazilian Real Units.

(h)	Principal amount is stated in 100 Mexican Peso Units.

(i)	All or a portion of these securities are held by the AZL Cayman Global Allocation Fund, Ltd. (the “Subsidiary”).

(j)	Escrow security due to bankruptcy.

(k)	Purchased with cash collateral held from securities lending. The value of the collateral could include collateral held for securities that were sold on or before December 31, 2014.

(l)	See Federal Tax Information listed in the Notes to the Financial Statements.

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:


Country	Percentage
Argentina		0.5	%
Australia		2.1	%
Belgium		—	%^NM
Bermuda		0.1	%
Brazil		1.3	%
Canada		1.3	%
Cayman Islands		0.5	%
Chile		0.1	%
China		0.1	%
Colombia		—	%^NM
Cyprus		—	%^NM
Denmark		—	%^NM
European Community		0.1	%
France		2.6	%
Germany		1.3	%
Guernsey		0.1	%
Hong Kong		0.9	%
Hungary		0.1	%
India		0.5	%
Indonesia		0.4	%
Ireland (Republic of)		0.4	%
Israel		0.2	%
Italy		0.7	%
Japan		8.9	%
Jersey		0.2	%
Kazakhstan		—	%^NM
Korea, Republic Of		0.3	%
Luxembourg		0.2	%
Malaysia		0.2	%
Mexico		3.3	%
Netherlands		1.9	%
New Zealand		0.2	%
Norway		0.4	%
Poland		0.7	%
Portugal		—	%^NM
Republic of Korea (South)		0.2	%
Russian Federation		—	%^NM
Singapore		1.0	%
South Africa		—	%^NM
Spain		0.3	%
Sweden		0.4	%
Switzerland		1.8	%
Taiwan		0.2	%
Thailand		0.1	%
Turkey		0.1	%
United Arab Emirates		0.1	%
United Kingdom		5.1	%
United States		61.1	%

		100.0	%

Not meaningful, amount is less than 0.05%.

Cash of $849,000 has been segregated to cover margin requirements for the following open contracts as of December 31, 2014:


Description	Type		Expiration Date		Number of Contracts			Notional Value			Unrealized Appreciation/ (Depreciation)
S&P 500 Index E-Mini March Futures (U.S. Dollar)		Short		3/20/15		(135	)	$	(13,853,700	)	$	(124,563	)
DJ EURO STOXX 50 March Futures (Euro)		Long		3/23/15		14			530,689			512
Tokyo Price Index March Futures (Japanese Yen)		Long		3/12/15		27			3,173,221			(68,119	)
FTSE 100 Index March Futures (British Pounds)		Long		3/23/15		2			203,294			6,988
ASX SPI 200 Index March Futures (Australian Dollar)		Long		3/20/15		1			109,840			4,550
S&P/Toronto Stock Exchange 60 Index March Futures (Canadian Dollar)		Long		3/19/15		1			146,638			8,333
German Stock Index March Futures (Euro)		Long		3/20/15		3			893,229			26,461
CAC 40 10 Euro January Futures (Euro)		Long		1/16/15		3			155,243			1,564
NASDAQ 100 E-Mini March Futures (U.S. Dollar)		Long		3/20/15		2			169,310			5,967
NIKKEI 225 Index March Futures (Japanese Yen)		Long		3/12/15		60			4,336,172			23,759

Total											$	(114,548	)

Description

Counterparty

Put/Call

Strike Price

Expiration
Date

Contracts

Fair Value

Abbvie, Inc.

Barclays Bank

Call

USD

55.00

06/19/15

36,800

417,774

Aetna, Inc.

Barclays Bank

Call

USD

80.00

06/19/15

30,000

332,207

Anadarko Petroleum Corp.

Barclays Bank

Call

USD

85.00

02/20/15

30,275

109,172

Anadarko Petroleum Corp.

Citigroup Global Markets

Call

USD

85.00

02/20/15

8,325

30,020

Anadarko Petroleum Corp.

Deutsche Bank

Call

USD

95.00

02/20/15

30,975

33,339

Apache Corp.

Citigroup Global Markets

Call

USD

110.00

01/16/15

10,800

Bank of America Corp.

Goldman Sachs

Call

USD

20.00

01/15/16

58,700

48,155

Citigroup, Inc.

Goldman Sachs

Call

USD

70.00

01/15/16

40,400

27,931

Coach, Inc.

Bank of America

Call

USD

60.00

02/20/15

13,282

Coca-Cola Co. (The)

Deutsche Bank

Call

USD

45.00

01/16/15

59,130

3,222

Delphi Automotive plc

Morgan Stanley

Call

USD

72.50

01/16/15

1,900

2,776

Devon Energy Corp.

Citigroup Global Markets

Call

USD

75.00

04/17/15

14,652

12,939

Devon Energy Corp.

Barclays Bank

Call

USD

75.00

04/17/15

14,653

12,940

Electronic Arts, Inc.

Citigroup Global Markets

Call

USD

37.00

01/16/15

17,554

176,701

EQT Corp.

Deutsche Bank

Call

USD

100.00

03/20/15

11,550

3,254

EQT Corp.

Citigroup Global Markets

Call

USD

100.00

03/20/15

9,167

2,583

Euro Stoxx 50 Index

Goldman Sachs

Call

EUR

3500.00

03/16/18

424

103,849

Euro Stoxx 50 Index

Morgan Stanley

Call

EUR

3450.00

03/17/17

495

100,792

Euro Stoxx 50 Index

UBS Warburg

Call

EUR

3600.00

06/15/18

206

43,865

Euro Stoxx 50 Index

Citigroup Global Markets

Call

EUR

3500.00

06/16/17

462

86,873

Euro Stoxx 50 Index

Bank of America

Call

EUR

3600.00

09/15/17

477

86,019

Euro Stoxx 50 Index

Deutsche Bank

Call

EUR

3426.55

09/21/18

225

63,264

Euro Stoxx 50 Index

Barclays Bank

Call

EUR

3500.00

12/15/17

488

110,818

Euro Stoxx 50 Index

Goldman Sachs

Call

EUR

3293.01

12/16/16

1,161

277,013

Description

Counterparty

Put/Call

Strike Price

Expiration
Date

Contracts

Fair Value

Euro Stoxx 50 Index

JPMorgan Chase

Call

EUR

3325.00

12/18/15

515

77,844

Gilead Sciences, Inc.

Citigroup Global Markets

Call

USD

95.00

01/15/16

7,700

106,567

GLDR Gold Shares(a)

JPMorgan Chase

Call

USD

120.00

09/18/15

16,400

67,622

Goldman Sachs Group, Inc.

Deutsche Bank

Call

USD

220.00

01/15/16

5,500

34,506

Google, Inc.

Deutsche Bank

Call

USD

600.00

01/16/15

1,437

Hewlett-Packard Co.

UBS Warburg

Call

USD

41.00

02/20/15

3,567

3,181

Humana, Inc.

Goldman Sachs

Call

USD

125.00

06/19/15

18,048

405,881

International Business Machines Corp.

Deutsche Bank

Call

USD

182.00

01/15/16

7,500

35,670

International Business Machines Corp.

Barclays Bank

Call

USD

182.00

01/15/16

7,500

35,670

Johnson & Johnson

Deutsche Bank

Call

USD

110.00

07/17/15

76,700

169,717

JPMorgan Chase & Co.

Goldman Sachs

Call

USD

75.00

01/15/16

36,700

32,204

Marathon Petroleum Corp.

Citigroup Global Markets

Call

USD

90.00

04/17/15

7,233

45,999

Marathon Petroleum Corp.

Deutsche Bank

Call

USD

90.00

04/17/15

14,559

92,590

Marathon Petroleum Corp.

Goldman Sachs

Call

USD

100.00

04/17/15

18,250

43,351

MetLife, Inc.

Goldman Sachs

Call

USD

57.50

01/15/16

60,533

158,701

MS Japan Custom Index

Morgan Stanley

Call

JPY

131.28

12/11/15

1,352,770

122,256

MS Japan Custom Index

Morgan Stanley

Call

JPY

139.99

12/11/15

349,532

31,932

Mylan, Inc.

Bank of America

Call

USD

47.00

01/16/15

18,200

172,130

Mylan, Inc.

Deutsche Bank

Call

USD

47.00

01/16/15

14,158

133,902

Mylan, Inc.

Goldman Sachs

Call

USD

55.00

01/16/15

18,200

40,066

Nikkei 225

Citigroup Global Markets

Call

JPY

18000.00

03/13/15

30,220

126,442

Oracle Corp.

Deutsche Bank

Call

USD

42.00

01/16/15

9,647

29,192

Pfizer, Inc.

Citigroup Global Markets

Call

USD

33.00

01/15/16

151,300

181,085

Phillips 66

Citigroup Global Markets

Call

USD

75.00

05/15/15

18,767

66,066

Phillips 66

UBS Warburg

Call

USD

75.00

05/15/15

7,507

26,427

Phillips 66

Deutsche Bank

Call

USD

75.00

05/15/15

3,737

13,155

Prudential Financial, Inc.

Citigroup Global Markets

Call

USD

90.00

01/15/16

46,970

384,302

Siemens AG

Deutsche Bank

Call

USD

150.00

01/16/15

18,114

—

SPDR Gold Shares(a)

JPMorgan Chase

Call

USD

133.44

03/20/15

9,230

1,699

Stoxx Europe 600 Index

Credit Suisse First Boston

Call

EUR

355.61

03/17/17

4,134

103,266

Stoxx Europe 600 Index

JPMorgan Chase

Call

EUR

372.06

09/15/17

3,057

62,851

Stoxx Europe 600 Index

JPMorgan Chase

Call

EUR

348.12

09/16/16

4,376

107,779

Stoxx Europe 600 Index

Credit Suisse First Boston

Call

EUR

347.97

12/16/16

3,668

97,033

Taiwan Stock Exchange

Citibank

Call

TWD

9000.77

09/21/16

6,700

123,543

Topix Index

Morgan Stanley

Call

JPY

1350.00

03/13/15

212,691

161,491

Topix Index

Goldman Sachs

Call

JPY

1288.50

06/12/15

261,314

327,687

Topix Index

Morgan Stanley

Call

JPY

1346.15

06/12/15

139,308

129,496

Topix Index

Bank of America

Call

JPY

1344.04

09/11/15

146,667

155,217

Topix Index

BNP Paribas

Call

JPY

1357.29

09/11/15

117,540

116,689

Topix Index

Morgan Stanley

Call

JPY

1660.07

09/11/15

117,540

22,449

Topix Index

Bank of America

Call

JPY

1314.84

12/11/15

247,207

314,033

Topix Index

Citigroup Global Markets

Call

JPY

1325.00

12/11/15

258,942

315,292

Visa, Inc.

Deutsche Bank

Call

USD

220.00

01/16/15

4,800

203,453

Wells Fargo & Co.

Goldman Sachs

Call

USD

60.00

01/15/16

18,400

29,195

Chicago Board Options Exchange Index

Morgan Stanley

Put

USD

16.00

02/18/15

7,941

10,633

CONSOL Energy, Inc.

UBS Warburg

Put

USD

38.00

04/17/15

18,350

94,313

IBOV BC

Morgan Stanley

Put

USD

55443.54

02/18/15

144,480

Russell 2000 Index

Deutsche Bank

Put

USD

1150.00

01/16/15

3,579

16,819

Russell 2000 Index

Bank of America

Put

USD

1165.00

02/20/15

3,447

70,794

S&P 500 Index

Morgan Stanley

Put

USD

2050.00

02/20/15

1,706

74,469

Topix Index

Morgan Stanley

Put

JPY

1161.53

09/11/15

117,540

23,917

Transocean, Ltd.

Deutsche Bank

Put

USD

36.00

01/16/15

11,744

208,308

Transocean, Ltd.

Goldman Sachs

Put

USD

37.00

01/16/15

35,100

657,648

Transocean, Ltd.

Bank of America

Put

USD

38.00

01/16/15

21,131

417,034

Transocean, Ltd.

Citigroup Global Markets

Put

USD

26.00

05/15/15

59,581

523,816

Total

9,235,457


Description	Counterparty	Put/Call		Strike Price			Expiration Date		Contracts		Fair Value
Abbvie, Inc.	Barclays Bank		Call		USD	65.00		06/19/15		36,800	$	(171,105	)
Aetna, Inc.	Barclays Bank		Call		USD	90.00		06/19/15		30,000		(145,196	)
Anadarko Petroleum Corp.	Barclays Bank		Call		USD	95.00		02/20/15		30,975		(33,339	)
Cimarex Energy Co.	Citigroup Global Markets		Call		USD	130.00		03/20/15		3,655		(6,037	)
Delphi Automotive plc	Morgan Stanley		Call		USD	82.50		01/16/15		1,900		(36	)
Diamondback Energy, Inc.	Goldman Sachs		Call		USD	65.00		01/16/15		7,375		(6,790	)
eBay, Inc.	Citigroup Global Markets		Call		USD	57.50		01/16/15		7,014		(2,763	)
EOG Resources, Inc.	Goldman Sachs		Call		USD	100.00		04/17/15		3,769		(14,392	)
Gilead Sciences, Inc.	Citigroup Global Markets		Call		USD	110.00		01/15/16		7,700		(63,848	)
GLDR Gold Shares(a)	JPMorgan Chase		Call		USD	140.00		09/18/15		16,400		(15,739	)
Humana, Inc.	Goldman Sachs		Call		USD	155.00		06/19/15		18,048		(101,666	)
Johnson & Johnson	Deutsche Bank		Call		USD	117.50		07/17/15		76,700		(60,597	)
Lululemon Athletica, Inc.	Citigroup Global Markets		Call		USD	52.50		03/20/15		8,056		(46,436	)
Marathon Petroleum Corp.	Deutsche Bank		Call		USD	100.00		04/17/15		18,250		(43,351	)
MetLife, Inc.	Goldman Sachs		Call		USD	67.50		01/15/16		60,533		(37,523	)
Mylan, Inc.	Bank of America		Call		USD	55.00		01/16/15		18,200		(40,066	)
Nikkei 225	Citigroup Global Markets		Call		JPY	19500.00		03/13/15		30,220		(34,637	)
Pfizer, Inc.	Citigroup Global Markets		Call		USD	37.50		01/15/16		151,300		(55,547	)
Prudential Financial, Inc.	Citigroup Global Markets		Call		USD	105.00		01/15/16		46,970		(136,578	)
Russell 2000 Index	Deutsche Bank		Call		USD	1230.00		01/16/15		3,579		(19,828	)
Russell 2000 Index	Bank of America		Call		USD	1255.00		02/20/15		3,447		(31,666	)
S&P 500 Index	Morgan Stanley		Call		USD	2155.00		02/20/15		1,706		(10,623	)
Tesoro Corp.	Citigroup Global Markets		Call		USD	75.00		02/20/15		10,686		(47,239	)
Topix Index	Goldman Sachs		Call		JPY	1490.61		06/12/15		261,314		(95,683	)
Topix Index	BNP Paribas		Call		JPY	1660.07		09/11/15		117,540		(22,449	)
Topix Index	Citigroup Global Markets		Call		JPY	1600.00		12/11/15		258,942		(93,363	)
Topix Index	Bank of America		Call		JPY	1627.28		12/11/15		247,207		(78,521	)
UnitedHealth Group, Inc.	Barclays Bank		Call		USD	87.50		03/20/15		7,375		(104,233	)
Coach, Inc.	Bank of America		Put		USD	42.50		02/20/15		13,282		(70,641	)
CONSOL Energy, Inc.	Barclays Bank		Put		USD	38.00		04/17/15		18,350		(94,313	)
CONSOL Energy, Inc.	UBS Warburg		Put		USD	39.00		04/17/15		29,252		(172,381	)
Delphi Automotive plc	Morgan Stanley		Put		USD	65.00		01/16/15		1,900		(402	)
Diamondback Energy, Inc.	Goldman Sachs		Put		USD	65.00		01/16/15		7,375		(45,799	)
EOG Resources, Inc.	Barclays Bank		Put		USD	100.00		04/17/15		7,310		(86,607	)
Euro Stoxx 50 Index	Deutsche Bank		Put		EUR	2586.07		09/21/18		225		(88,336	)
General Electric Co.	Deutsche Bank		Put		USD	23.00		06/19/15		73,725		(42,265	)
Gilead Sciences, Inc.	Citigroup Global Markets		Put		USD	85.00		01/15/16		7,700		(67,707	)
IBOV BC	Morgan Stanley		Put		USD	50617.48		02/18/15		27		(54,821	)
MS Japan Custom Index	Morgan Stanley		Put		JPY	128.68		12/11/15		1,352,770		(107,784	)
MS Japan Custom Index	Morgan Stanley		Put		JPY	137.22		12/11/15		349,532		(30,981	)
Nikkei 225	Citigroup Global Markets		Put		JPY	15500.00		03/13/15		30,220		(47,690	)
Russell 2000 Index	Deutsche Bank		Put		USD	1050.00		01/16/15		3,579		(2,040	)
Russell 2000 Index	Bank of America		Put		USD	1085.00		02/20/15		3,447		(27,065	)
S&P 500 Index	Morgan Stanley		Put		USD	1935.00		02/20/15		1,706		(32,850	)
Taiwan Stock Exchange	Citibank		Put		TWD	8100.70		09/21/16		6,700		(85,059	)
Tokyo Stock Exchange Price Index	Bank of America		Put		JPY	1300.00		09/11/15		146,667		(69,610	)
Topix Index	Goldman Sachs		Put		JPY	1136.91		06/12/15		261,314		(29,181	)
Topix Index	Morgan Stanley		Put		JPY	1187.78		06/12/15		139,308		(22,538	)
Topix Index	BNP Paribas		Put		JPY	1161.53		09/11/15		117,540		(23,917	)
Topix Index	Morgan Stanley		Put		JPY	1275.00		09/11/15		121,984		(50,113	)
Topix Index	Citigroup Global Markets		Put		JPY	1170.00		12/11/15		258,942		(75,548	)
Topix Index	Bank of America		Put		JPY	1171.64		12/11/15		247,207		(72,814	)
Transocean, Ltd.	Citigroup Global Markets		Put		USD	32.00		01/16/15		29,406		(404,204	)
Transocean, Ltd.	Goldman Sachs		Put		USD	32.00		01/16/15		14,699		(202,046	)
Transocean, Ltd.	Goldman Sachs		Put		USD	38.00		01/16/15		21,131		(417,034	)

Total											$	(3,942,997	)

Over-the-counter interest rate swaptions purchased as of December 31, 2014 were as follows:

Description

Counterparty

Put/Call

Exercise
Rate

Expiration
Date

Notional
Amount

Fair Value

10-Year Interest Rate, Pay 6-Month USD LIBOR

Deutsche Bank

Call

USD

2.25

02/17/15

1,394

388,096

10-Year Interest Rate, Pay 6-Month USD LIBOR

Bank of America

Call

USD

2.30

02/17/15

759

61,175

5-Year Interest Rate, Pay 6-Month USD LIBOR

Deutsche Bank

Call

USD

1.65

03/09/15

4,590

106,596

5-Year Interest Rate, Pay 6-Month USD LIBOR

Goldman Sachs

Call

USD

1.73

03/19/15

230,256

84,974

5-Year Interest Rate, Pay 6-Month USD LIBOR

Goldman Sachs

Call

USD

1.75

03/19/15

1,528

63,234

5-Year Interest Rate, Pay 6-Month USD LIBOR

Deutsche Bank

Call

USD

1.67

03/31/15

3,900

122,985

10-Year Interest Rate, Pay 6-Month JPY LIBOR

Goldman Sachs

Put

JPY

1.35

01/25/16

30,000

6,297

10-Year Interest Rate, Pay 6-Month JPY LIBOR

Goldman Sachs

Put

JPY

1.35

01/25/16

13,882

2,914

10-Year Interest Rate, Pay 6-Month JPY LIBOR

Deutsche Bank

Put

JPY

1.25

07/29/16

1,937,701

9,024

5-Year Interest Rate, Pay 6-Month JPY LIBOR

Deutsche Bank

Put

JPY

1.07

04/04/18

1,006,980

5,028

Total

850,323

Over-the-counter interest rate swaptions written as of December 31, 2014 were as follows:

Exchange-traded currency options purchased as of December 31, 2014 were as follows:

At December 31, 2014, the Fund’s open forward currency contracts were as follows:


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
Australian Dollar	Morgan Stanley	1/16/15		2,168,000	$	1,918,008	$	1,767,362	$	150,646
Australian Dollar	Deutsche Bank	1/23/15		2,140,754		1,858,175		1,744,218		113,957
Australian Dollar	Morgan Stanley	1/23/15		940,000		781,065		765,882		15,183
Australian Dollar	Deutsche Bank	2/6/15		2,127,401		1,823,821		1,731,577		92,244
Brazilian Real	Morgan Stanley	1/16/15		4,683,262		1,815,218		1,754,726		60,492
Brazilian Real	BNP Paribas	2/6/15		5,042,887		1,908,811		1,878,896		29,915
Brazilian Real	Deutsche Bank	2/13/15		1,430,620		522,696		532,097		(9,401	)
British Pound	HSBC Bank	1/15/15		444,000		696,299		691,847		4,452
Chilean Peso	Morgan Stanley	8/24/15		458,662,190		763,000		741,282		21,718
Chilean Peso	UBS Warburg	8/26/15		460,660,910		766,000		744,394		21,606
Chilean Peso	JPMorgan Chase	9/15/15		468,006,000		770,000		755,061		14,939
Chinese Renminbi	Deutsche Bank	1/30/15		10,246,207		1,672,000		1,645,448		26,552
Chinese Renminbi	JPMorgan Chase	1/30/15		4,087,158		668,000		656,360		11,640
Chinese Renminbi	JPMorgan Chase	6/9/15		7,350,064		1,169,000		1,167,610		1,390
European Euro	BNP Paribas	1/8/15		1,285,000		1,636,583		1,554,856		81,727
European Euro	Deutsche Bank	1/8/15		1,339,800		1,705,532		1,621,164		84,368
European Euro	BNP Paribas	1/9/15		1,502,000		1,901,998		1,817,445		84,553
European Euro	Deutsche Bank	1/9/15		2,363,500		2,993,621		2,859,874		133,747
European Euro	BNP Paribas	1/15/15		1,498,000		1,910,054		1,812,714		97,340
European Euro	UBS Warburg	1/15/15		1,495,000		1,906,230		1,809,084		97,146
European Euro	JPMorgan Chase	1/22/15		528,100		656,201		639,094		17,107
European Euro	Morgan Stanley	1/23/15		1,274,400		1,586,628		1,542,263		44,365
European Euro	Morgan Stanley	1/30/15		1,321,600		1,626,863		1,599,497		27,366
European Euro	UBS Warburg	1/30/15		1,284,600		1,581,342		1,554,716		26,626
European Euro	Deutsche Bank	2/5/15		824,800		1,024,443		998,272		26,171
European Euro	Morgan Stanley	2/5/15		1,337,600		1,660,844		1,618,924		41,920
European Euro	Credit Suisse First Boston	2/12/15		2,153,000		2,693,446		2,605,936		87,510
European Euro	Deutsche Bank	2/12/15		2,201,100		2,752,509		2,664,155		88,354
European Euro	UBS Warburg	2/12/15		1,334,300		1,667,368		1,615,003		52,365
European Euro	Credit Suisse First Boston	2/13/15		1,317,000		1,633,896		1,594,073		39,823
European Euro	JPMorgan Chase	2/13/15		1,398,300		1,736,164		1,692,477		43,687
Japanese Yen	Credit Suisse First Boston	1/8/15		324,640,128		2,909,626		2,710,951		198,675
Japanese Yen	UBS Warburg	1/8/15		174,802,944		1,536,000		1,459,715		76,285
Japanese Yen	BNP Paribas	1/9/15		205,051,417		1,859,436		1,712,324		147,112
Japanese Yen	UBS Warburg	1/9/15		157,227,800		1,372,282		1,312,964		59,318
Japanese Yen	Credit Suisse First Boston	1/15/15		175,494,774		1,533,000		1,465,585		67,415
Japanese Yen	Credit Suisse First Boston	1/16/15		274,985,900		2,546,166		2,296,472		249,694
Japanese Yen	Deutsche Bank	1/22/15		154,375,325		1,335,265		1,289,294		45,971
Japanese Yen	Morgan Stanley	1/22/15		153,515,670		1,326,453		1,282,115		44,338
Japanese Yen	Deutsche Bank	1/23/15		159,548,882		1,383,268		1,332,514		50,754
Japanese Yen	JPMorgan Chase	1/23/15		153,837,060		1,334,233		1,284,810		49,423
Japanese Yen	Credit Suisse First Boston	1/29/15		82,763,425		709,599		691,258		18,341
Japanese Yen	JPMorgan Chase	1/29/15		228,299,966		1,942,000		1,906,809		35,191
Japanese Yen	Credit Suisse First Boston	1/30/15		83,827,000		700,438		700,147		291
Japanese Yen	JPMorgan Chase	1/30/15		314,738,755		2,630,078		2,628,788		1,290
Japanese Yen	Morgan Stanley	2/4/15		160,000,000		1,341,393		1,336,421		4,972
Japanese Yen	Credit Suisse First Boston	2/5/15		140,851,348		1,186,616		1,176,489		10,127
Japanese Yen	UBS Warburg	2/5/15		213,404,400		1,796,137		1,782,503		13,634
Japanese Yen	BNP Paribas	2/6/15		173,572,532		1,464,142		1,449,811		14,331
Japanese Yen	JPMorgan Chase	2/6/15		241,106,288		2,050,223		2,013,904		36,319
Japanese Yen	Credit Suisse First Boston	2/12/15		149,504,150		1,275,633		1,248,835		26,798
Japanese Yen	HSBC Bank	2/12/15		163,526,060		1,395,155		1,365,962		29,193


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Japanese Yen	HSBC Bank	3/10/15		80,000,000	$	750,089	$	668,419	$	81,670
Japanese Yen	Morgan Stanley	3/23/15		160,000,000		1,341,910		1,337,043		4,867
Japanese Yen	JPMorgan Chase	5/7/15		377,979,550		3,118,000		3,160,316		(42,316	)
Korean Won	Credit Suisse First Boston	5/5/15		1,738,304,400		1,554,000		1,577,918		(23,918	)
Korean Won	Deutsche Bank	5/5/15		2,106,297,120		1,916,000		1,911,958		4,042
Mexican Peso	BNP Paribas	1/22/15		22,070,700		1,661,387		1,494,263		167,124
Mexican Peso	Credit Suisse First Boston	2/5/15		7,424,540		555,127		502,236		52,891
Mexican Peso	UBS Warburg	2/6/15		15,393,725		1,125,305		1,041,250		84,055
Mexican Peso	Deutsche Bank	2/19/15		11,758,180		879,675		794,700		84,975
Mexican Peso	HSBC Bank	3/5/15		19,837,760		1,485,807		1,339,608		146,199
Mexican Peso	HSBC Bank	3/19/15		14,897,770		1,107,624		1,005,133		102,491
Mexican Peso	JPMorgan Chase	3/19/15		7,604,350		555,691		513,056		42,635
Mexican Peso	Credit Suisse First Boston	4/1/15		15,069,840		1,100,261		1,015,912		84,349
Mexican Peso	UBS Warburg	4/16/15		11,586,000		776,490		780,336		(3,846	)
Mexican Peso	JPMorgan Chase	4/30/15		15,228,490		1,115,804		1,024,784		91,020
Mexican Peso	BNP Paribas	5/28/15		23,591,400		1,608,304		1,584,829		23,475
Mexican Peso	JPMorgan Chase	6/11/15		23,173,000		1,548,459		1,555,382		(6,923	)

					$	103,632,891	$	99,931,121	$	3,701,770

Long Contracts:
British Pound	HSBC Bank	1/15/15		444,000	$	715,746	$	691,847	$	(23,899	)
British Pound	Brown Brothers Harriman	1/26/15		139,400		217,984		217,195		(789	)
Chilean Peso	JPMorgan Chase	9/15/15		468,006,000		749,197		755,061		5,864
Chinese Renminbi	Deutsche Bank	1/30/15		6,183,207		998,580		992,967		(5,613	)
Chinese Renminbi	Deutsche Bank	1/30/15		4,063,000		651,539		652,481		942
Chinese Renminbi	JPMorgan Chase	1/30/15		4,087,158		653,579		656,361		2,782
European Euro	BNP Paribas	1/8/15		1,285,000		1,580,479		1,554,856		(25,623	)
European Euro	Brown Brothers Harriman	1/26/15		689,900		856,473		834,934		(21,539	)
Indian Rupee	Credit Suisse First Boston	6/26/15		47,611,585		746,000		728,272		(17,728	)
Indian Rupee	Credit Suisse First Boston	6/26/15		42,139,033		661,627		644,563		(17,064	)
Indian Rupee	Credit Suisse First Boston	8/5/15		48,714,560		752,000		740,159		(11,841	)
Japanese Yen	BNP Paribas	1/9/15		205,051,417		1,709,895		1,712,325		2,430
Japanese Yen	Credit Suisse First Boston	1/15/15		175,494,774		1,470,397		1,465,585		(4,812	)
Japanese Yen	Credit Suisse First Boston	1/16/15		274,985,900		2,270,969		2,296,472		25,503
Japanese Yen	Deutsche Bank	1/22/15		46,184,000		387,023		385,714		(1,309	)
Japanese Yen	JPMorgan Chase	1/29/15		228,299,966		1,921,393		1,906,809		(14,584	)
Japanese Yen	Credit Suisse First Boston	1/30/15		83,827,000		695,478		700,147		4,669
Japanese Yen	Credit Suisse First Boston	2/5/15		140,851,348		1,168,634		1,176,489		7,855
Japanese Yen	UBS Warburg	2/5/15		213,404,400		1,781,577		1,782,503		926
Japanese Yen	JPMorgan Chase	2/6/15		241,106,288		1,992,853		2,013,904		21,051
Mexican Peso	UBS Warburg	2/6/15		11,317,746		784,000		765,546		(18,454	)

					$	22,765,423	$	22,674,190	$	(91,233	)

At December 31, 2014, the Fund’s open forward cross currency contracts were as follows:

At December 31, 2014, the Fund’s open over-the-counter credit default swap agreements were as follows:


Underlying Instrument	Counterparty	Expiration Date	Implied Credit Spread at December 31, 2014 (%)(c)		Notional Amount ($)(d)		Fixed Rate (%)		Value ($)		Upfront Premiums Paid/ (Received) ($)		Unrealized Appreciation/ (Depreciation) ($)
Transocean, Inc.	JPMorgan Chase	6/20/19		6.58		222,736		1.00		43,382		4,770		38,612
Transocean, Inc.	JPMorgan Chase	6/20/19		6.58		63,000		1.00		12,271		1,354		10,917
Transocean, Inc.	Barclays Bank	6/20/19		6.58		159,000		1.00		30,969		3,449		27,520
Transocean, Inc.	Barclays Bank	6/20/19		6.58		254,000		1.00		49,472		5,967		43,505
Transocean, Inc.	Barclays Bank	6/20/19		6.58		105,719		1.00		20,591		2,354		18,237
Transocean, Inc.	Barclays Bank	6/20/19		6.58		352,400		1.00		68,637		7,847		60,790
Transocean, Inc.	Citibank	6/20/19		6.58		246,673		1.00		48,045		4,897		43,148
Transocean, Inc.	Barclays Bank	6/20/19		6.75		125,000		1.00		24,346		3,870		20,476

										297,713		34,508		263,205

At December 31, 2014, the Fund’s open centrally cleared credit default swap agreements were as follows:

At December 31, 2014, the Fund’s open centrally cleared interest rate swap agreements were as follows:


Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate (%)	Expiration Date		Clearing Agent		Notional Amount (Local)			Upfront Premiums Paid/ (Received)		Value ($)			Unrealized Appreciation/ (Depreciation) ($)
Receive	3-Month U.S. Dollar LIBOR BBA	1.18		2/1/17		JPMorgan Chase		36,640,000	USD		424		(160,060	)		(160,484	)
Receive	3-Month U.S. Dollar LIBOR BBA	1.03		3/11/17		JPMorgan Chase		20,300,000	USD		274		7,709			7,435
Receive	3-Month U.S. Dollar LIBOR BBA	1.02		3/11/17		JPMorgan Chase		38,680,000	USD		522		25,266			24,744
Receive	3-Month U.S. Dollar LIBOR BBA	0.99		3/17/17		JPMorgan Chase		38,670,000	USD		526		53,144			52,618
Pay	3-Month U.S. Dollar LIBOR BBA	2.19		2/1/20		JPMorgan Chase		14,660,000	USD		209		261,970			261,761
Pay	3-Month U.S. Dollar LIBOR BBA	1.88		3/11/20		JPMorgan Chase		8,260,000	USD		126		3,102			2,976
Pay	6-Month Australian Bank Bill Rate	2.89		6/11/20		JPMorgan Chase		963,198	AUD		12		5,882			5,870
Pay	3-Month U.S. Dollar LIBOR BBA	2.39		3/11/25		JPMorgan Chase		8,510,000	USD		152		34,640			34,488
Pay	3-Month U.S. Dollar LIBOR BBA	2.29		3/17/25		JPMorgan Chase		8,510,000	USD		153		(45,795	)		(45,948	)

													185,858			183,460

At December 31, 2014, the Fund’s open over-the-counter interest rate swap agreements were as follows:

Consolidated Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	804,647,930

Investment securities, at value*	$	829,333,588
Cash		60,471
Segregated cash for collateral		1,558,225
Deposits with brokers for securities sold short		1,000,895
Interest and dividends receivable		1,731,561
Foreign currency, at value (cost $66,894)		66,847
Unrealized appreciation on forward currency contracts		3,899,788
Unrealized appreciation on swap agreements		439,004
Receivable for capital shares issued		142,649
Proceeds paid on swap agreements		34,508
Receivable for investments sold		841,932
Reclaims receivable		109,498
Receivable for variation margin on swaps		37,275
Receivable for variation margin on futures contracts		165,934
Prepaid expenses		18,226

Total Assets		839,440,401

Liabilities:
Cash received as collateral for derivatives		5,640,000
Written options (Proceeds received $3,023,316)		4,175,267
Unrealized depreciation on forward currency contracts		249,659
Payable for collateral received on loaned securities		45,894,168
Payable for investments purchased		3,896,295
Securities sold short (Proceeds received $998,461)		1,017,147
Dividend payable on securities sold short		1,747
Payable for variation margin on futures contracts		10,279
Payable for variation margin on swaps		4,730
Manager fees payable		494,919
Administration fees payable		41,168
Distribution fees payable		164,973
Custodian fees payable		82,261
Administrative and compliance services fees payable		2,279
Trustee fees payable		46
Other accrued liabilities		22,081

Total Liabilities		61,697,019

Net Assets	$	777,743,382

Net Assets Consist of:
Capital	$	702,832,557
Accumulated net investment income/(loss)		13,218,014
Accumulated net realized gains/(losses) from investment transactions		34,060,252
Net unrealized appreciation/(depreciation) on investments		27,632,559

Net Assets	$	777,743,382

Shares of beneficial interest (unlimited number of shares authorized, no par value)		64,990,839
Net Asset Value (offering and redemption price per share)	$	11.97

*	Includes securities on loan of $44,326,021.

Consolidated Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	11,113,894
Interest		5,604,047
Income from securities lending		320,340
Foreign withholding tax		(633,322	)

Total Investment Income		16,404,959

Expenses:
Manager fees		5,448,538
Administration fees		342,089
Distribution fees		1,816,179
Custodian fees		346,246
Administrative and compliance services fees		9,998
Trustee fees		38,616
Professional fees		46,958
Shareholder reports		9,126
Dividends on securities sold short		17,332
Other expenses		17,878

Total expenses before reductions		8,092,960
Less expenses paid indirectly		(2,782	)

Net expenses		8,090,178

Net Investment Income/(Loss)		8,314,781

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains (losses) on securities transactions		35,405,316
Net realized gains (losses) on futures contracts		(3,388,486	)
Net realized gains (losses) on options contracts		(1,031,132	)
Net realized gains (losses) on swap agreements		40,619
Net realized gains (losses) on forward currency contracts		8,777,270
Change in net unrealized appreciation/depreciation on investments		(34,975,914	)

Net Realized/Unrealized Gains/(Losses) on Investments		4,827,673

Change in Net Assets Resulting From Operations	$	13,142,454

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL BlackRock Global Allocation Fund (the “Fund”), and 30 are presented in separate reports.

Investment transactions are recorded not later than on the business day following trade date. However, for financial reporting purposes, investment transactions are accounted for on trade date. Net realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income is recorded on the accrual basis and includes, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date except in the case of foreign securities, in which case dividends are recorded as soon as such information becomes available.

The Fund’s primary vehicle for gaining exposure to the commodities markets is through investment in the AZL Cayman Global Allocation Fund, Ltd. (the “Subsidiary”), a wholly-owned and controlled subsidiary of the Fund formed in the Cayman Islands, which invests primarily in commodity-related instruments.

As of December 31, 2014, the Fund’s aggregate investment in the Subsidiary was $7,386,202, representing 0.95% of the Fund’s net assets. The Fund’s operations have been consolidated with the operations of the Subsidiary.

The Fund may invest in floating rate loans, which usually take the form of loan participations and assignments. These loans are made by banks and other large financial institutions to various companies and are typically senior in the borrowing companies’ capital structure. Coupon rates are floating, not fixed and are tied to a benchmark lending rate. Loans involve a risk of loss in case of default or insolvency of the financial intermediaries who are parties to the transactions. A Fund records an investment when the borrower withdraws money and records the interest as earned.

differ from U.S. GAAP. These “book/tax” differences are either temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital, net operating loss, reclassification of certain market discounts, gain/loss, paydowns, and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales and post October losses) do not require reclassification. Dividends to shareholders that exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.

To generate additional income, the Fund may lend up to 33¹/₃% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Consolidated Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $22.9 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $31,704 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Consolidated Statement of Operations.

Certain Funds of the Trust participate in a commission recapture program. The Fund will utilize the recaptured commissions to pay for, in whole or part, certain expenses of the Fund, excluding investment advisory fees. Any amounts received by the Fund, if applicable, are disclosed as “Expenses paid indirectly” on the Consolidated Statement of Operations. The Fund ceased participation in the program in June 2014.

All open derivative positions at period end are reflected on the Fund’s Consolidated Schedule of Portfolio Investments. The following is a description of the derivative instruments utilized by the Fund, including the primary underlying risk exposures related to each instrument type.

During the year ended December 31, 2014, the Fund entered into forward currency contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies. In addition to the foreign currency risk related to the use of these contracts, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or the seller, is the unrealized appreciation of the contract. The forward currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The contract amount of forward currency contracts outstanding was $128.2 million as of December 31, 2014. The monthly average amount for these contracts was $99.9 million for the year ended December 31, 2014.

During the year ended December 31, 2014, the Fund used futures contracts to gain exposure to, or economically hedge against changes in the value of equity securities. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Consolidated Statement of Assets and Liabilities. The primary risks associated with

the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $23.6 million as of December 31, 2014. The monthly average notional amount for these contracts was $46.5 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Consolidated Statement of Operations.

The Fund may purchase or write put and call options on a security or an index of securities. During the year ended December 31, 2014, the Fund purchased and wrote call and put options to increase or decrease its exposure to underlying instruments (including equity risk, interest rate risk and/or foreign currency exchange rate risk) and/or, in the case of options written, to generate gains from options premiums.

Purchased Options Contracts — The Fund pays a premium which is included in “Investments, at value” on the Consolidated Statement of Assets and Liabilities and marked to market to reflect the current value of the option. Premiums paid for purchasing put options that expire are treated as realized losses. When a put option is exercised or closed, premiums paid for purchasing put options are offset against proceeds to determine the realized gain/loss on the transaction. The Fund bears the risk of loss of the premium and change in value should the counterparty not perform under the contract.

Written Options Contracts — The Fund receives a premium which is recorded as a liability and is subsequently adjusted to the current value of the options written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are either exercised or closed are offset against the proceeds received or the amount paid on the transaction to determine realized gains or losses. The risk associated with writing an option is that the Fund bears the market risk of an unfavorable change in the price of an underlying asset and is required to buy or sell an underlying asset under the contractual terms of the option at a price different from the current value.

Realized gains and losses, if any, are reported as “Net realized gains/(losses) on options contracts” on the Consolidated Statement of Operations.

The Fund had the following transactions in purchased call and put options during the year ended December 31, 2014:

The Fund had the following transactions in written call and put options during the year ended December 31, 2014:

The Fund may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are privately negotiated in the over-the-counter (“OTC”) market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”). The Fund may enter into swap agreements to manage its exposure to market, interest rate and credit risk. The value of swap agreements are equal to the Fund’s obligations (or rights) under swap agreements, which will generally be equal to the net amounts to be paid or received under the agreements based upon the relative values of the positions held by each party to the agreements. In connection with these arrangements, securities may be indentified as collateral in accordance with the terms of the swap agreements to provide assets of value and recourse in the event of default or bankruptcy by the counterparty.

Swaps are marked to market daily using pricing sources approved by the Trustees and the change in value, if any, is recorded as unrealized gain or loss. For OTC swaps, payments received or made at the beginning of the measurement period are recorded as realized gain or loss upon termination or maturity of the OTC swap. A liquidation payment received or made at the termination of the OTC swap is recorded as a realized gain or loss. Net periodic payments received or paid by the Fund are included as part of realized gains (losses). Upon entering a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or assets determined to be liquid (the amount is subject to the clearing organization that clears the trade). Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable, as applicable, for variation margin on centrally cleared swaps.

each counterparty to a centrally cleared swap agreement and, in effect, guarantees the parties’ performance under the contract as each party to a trade looks only to a clearing house for performance of financial obligations. However, there can be no assurance that the clearing house, or its members will satisfy its obligations to the Fund.

The notional amounts reflect the extent of the total investment exposure each Fund has under the swap agreement. The Fund bears the risk of loss of the amount expected to be received under a swap agreement (i.e., any unrealized appreciation) in the event of the default or bankruptcy of the swap agreement counterparty. The notional amount and related unrealized appreciation (depreciation) of each swap agreement at period end is disclosed in the swap tables in the Consolidated Schedule of Portfolio Investments. The Fund is party to International Swap Dealers Association, Inc. Master Agreements (“ISDA Master Agreements”) with select counterparties that govern transactions, such as OTC swap contracts, entered into by the Fund, through the Subsidiary, and those counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding OTC swap transactions under the applicable ISDA Master Agreement.

Interest rate swaps involve the exchange of commitments to pay and receive interest based on a notional amount and are subject to interest rate risk exposure. Interest rate swaps do not involve the delivery of securities, other underlying assets or principal. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that a Fund is contractually obligated to make. If the other party to an interest rate swap defaults, a Fund’s risk of loss consists of the net amount of interest payments that the Fund is contractually entitled to receive. As of December 31, 2014, the Fund entered into OTC and centrally cleared interest rate swap agreements to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). The gross notional amount of interest rate swaps outstanding was $175.7 million as of December 31, 2014. The monthly average gross notional amount for interest rate swaps was $57.8 million for the year ended December 31, 2014.

Total return swap agreements involve commitments to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty. The gross notional amount of total return swaps outstanding was $1.1 million as of December 31, 2014. The monthly average gross notional amount for total return swaps was $1.2 million to the year ended December 31, 2014.

Credit default swap agreements may have as reference obligations one or more securities that are not currently held by the Fund. The protection “buyer” in a credit default contract is generally obligated to pay the protection “seller” an upfront, periodic, or daily stream of payments over the term of the contract provided that no credit event, such as a default, on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the “par value” (full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. A Fund may be either the buyer or seller in the transaction. If the Fund is a buyer and no credit event occurs, the Fund may recover nothing if the swap is held through its termination date. However, if a credit event occurs, the buyer generally may elect to receive the full notional value of the swap in exchange for an equal face amount of deliverable obligations of the reference entity whose value may have significantly decreased. As a seller, a Fund generally receives an upfront payment or a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.

Credit default swap agreements involve greater risks than if a Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. A Fund will enter into credit default swap agreements only with counterparties that meet certain standards of creditworthiness. A buyer generally also will lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller, coupled with the upfront, periodic, or daily payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value to the seller. The Fund’s obligations under a credit default swap agreement will be accrued daily (offset against any amounts owing to the Fund). In connection with credit default swaps in which a Fund is the buyer, the Fund will segregate or “earmark” cash or assets determined to be liquid, or enter into certain offsetting positions, with a value at least equal to the Fund’s exposure (any accrued but unpaid net amounts owed by the Fund to any counterparty), on a marked-to-market basis. In connection with credit default swaps in which a Fund is the seller, the Fund will segregate or “earmark” cash or assets determined to be liquid, or enter into offsetting positions, with a value at least equal to the full notional amount of the swap (minus any amounts owed to the Fund). Such segregation or “earmarking” will ensure that the Fund has assets available to satisfy its obligations with respect to the transaction and will limit any potential leveraging of the Fund’s portfolio. Such segregation or “earmarking” will not limit the Fund’s exposure to loss. As of December 31, 2014, the Fund entered into OTC and centrally cleared credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk). The gross notional amount of OTC and centrally cleared credit default swaps outstanding was $2.4 million as of December 31, 2014. The monthly average gross notional amount for credit default swaps was $3.3 million for the year ended December 31, 2014.

The following is a summary of the fair values of derivative instruments on the Fund’s Consolidated Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Consolidated Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

Effective January 1, 2013, the Fund adopted Financial Accounting Standards Board Accounting Standards Update (“ASU”) No. 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”) which amended Accounting Standards Codification Subtopic 210-20, Balance Sheet Offsetting. ASU 2013-01 clarified the scope of ASU No. 2011-11 “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of that entity’s financial statements to understand the effect of those arrangements on its financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards. ASU 2013-01 clarifies the scope of ASU 2011-11 as applying to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are offset either in accordance with other requirements of U.S. GAAP or subject to an enforceable master netting arrangement or similar agreement.

The Fund is generally subject to master netting agreements that allow for amounts owed between the Fund and the counterparty to be netted. The party that has the larger payable pays the excess of the larger amount over the smaller amount to the other party. The master netting agreements do not apply to amounts owed to/from different counterparties. The amounts shown in the Consolidated Statement of Assets and Liabilities do not take into consideration the effects of legally enforceable master netting agreements. The table below presents the gross and net amounts of these assets and liabilities with any offsets to reflect the Fund’s ability to reflect the master netting agreements at December 31, 2014. For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to master netting arrangements in the Consolidated Statement of Assets and Liabilities. This table also summarizes the fair values of derivative instruments on the Fund’s Consolidated Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014.

As of December 31, 2014, the Fund’s derivative assets and liabilities by type are as follows:

The following table presents the Fund’s derivative assets by counterparty net of amounts available for offset under a MNA and net of the related collateral received by the Fund as of December 31, 2014:

The following table presents the Fund’s derivative liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Consolidated Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Any amounts contractually waived or reimbursed by the Manager in a particular fiscal year will be subject to repayment by the Fund to the Manager to the extent that from time to time through the next three fiscal years the repayment will not cause the Fund’s expenses to exceed the lesser of the stated limit at the time of the waiver or the current stated limit. Any amounts recouped by the Manager during the year are reflected on the Consolidated Statement of Operations as “Recoupment of prior expenses reimbursed by the Manager.” At December 31, 2014, there were no remaining contractual reimbursements that are subject to repayment by the Fund in subsequent years.

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Consolidated Statement of Operations as “Administration fees.”

The Trust has adopted a distribution and service plan in conformance with Rule 12b-1 of the 1940 Act. Pursuant to this plan, the Fund is authorized to pay certain fees for the sale and distribution of its shares and services provided to its shareholders at an annual rate not to exceed 0.25% of the Fund’s average daily net assets. These fees are reflected on the Consolidated Statement of Operations as “Distribution fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $8,906 was paid from the Fund relating to these fees and expenses.

Options are generally valued at the average of the closing bid and ask quotations on the principal exchange on which the option is traded, which are then typically categorized as Level 1 in the fair value hierarchy. Forward currency contracts are generally valued at the foreign currency exchange rate as of the close of the NYSE and are typically categorized as Level 2 in the fair value hierarchy.

Non exchange-traded derivatives, such as swaps and certain options, are generally valued by approved independent pricing services utilizing techniques which take into account factors such as yields, quality, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes and are typically categorized as Level 2 in the fair value hierarchy.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

A reconciliation of assets in which Level 3 inputs are used in determining fair value, along with additional quantitative disclosures, are presented when there are significant Level 3 investments at the end of the period.

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

For the year ended December 31, 2014, purchases and sales on long-term U.S. government securities were as follows:

Commodities-Related Investment Risk: Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, embargoes, tariffs and international economic, political and regulatory developments. The U.S. Commodities Futures Trading Commission has proposed changes to certain of its rules governing investment in commodities by mutual funds, such as the Fund. In the event these changes are adopted, or if there are changes in the tax treatment of the Fund’s direct and indirect investments in commodities, the Fund may be unable to obtain exposure to commodity markets, or may be limited in the extent to which or manner in which it can obtain such exposure.

Derivatives Risk: The Fund may invest in derivatives as a principal strategy. A derivative is a financial contract whose value depends on, or is derived from, the value of an underlying asset, reference rate, or risk. Use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of other risks, such as liquidity risk, interest rate risk, market risk, credit risk, and selection risk. Derivatives also involve the risk of mispricing or improper valuation and the risk that changes in the value may not correlate perfectly with the underlying asset, rate, or index. Using derivatives may result in losses, possibly in excess of the principal amount invested. Also, suitable derivative transactions may not be available in all circumstances. The counterparty to a derivatives contract could default. As required by applicable law, a Fund that invests in derivatives segregates cash or liquid securities, or both, to the extent that its obligations under the instrument are not covered through ownership of the underlying security, financial instrument, or currency.

Emerging Markets Risk: Emerging markets may have less developed trading markets and exchanges which may make it more difficult to sell securities at an acceptable price and their prices may be more volatile than securities of companies in more developed markets. Settlements of trades may be subject to greater delays so that the Fund may not receive the proceeds of a sale of a security on a timely basis. Emerging countries may also have less developed legal and accounting systems and investments may be subject to greater risks of government restrictions, nationalization, or confiscation.

Security Quality Risk (also known as “High Yield Risk”): The Fund may invest in high yield, high risk debt securities and unrated securities of similar credit quality (commonly known as “junk bonds”) may be subject to greater levels of credit and liquidity risk than funds that do not invest in such securities. These securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the Fund’s ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, the Fund may lose the value of its entire investment.

Cost for federal income tax purposes at December 31, 2014 is $806,832,652. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates presumptions of control of the fund, under section 2 (a)(9) of the 1940 Act. As of December 31, 2014, the Fund had an individual shareholder account which is affiliated with the Investment Adviser representing ownership in excess of 90% of the Fund.

We have audited the accompanying consolidated statement of assets and liabilities of AZL BlackRock Global Allocation Fund and Subsidiary (the “Fund”) of the Allianz Variable Insurance Products Trust, including the consolidated schedule of portfolio investments, as of December 31, 2014, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the years in the two-year period then ended, and the consolidated financial highlights for each of the periods in the three-year period then ended. These consolidated financial statements and consolidated financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements and consolidated financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements and consolidated financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the three-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2014, 23.84% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $9,167,742.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $5,892,645.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Robert DeChellis, Age 47 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	43	None
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Advisory Management, Allianz Investment Management LLC from December 2005 to November 2010	43	None


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Dreyfus Research Growth Fund returned 8.45%. That compared to a 13.05% total return for its benchmark, the Russell 1000^® Growth Index¹.

Global equities produced mixed returns for 2014 as investors responded to a mix of encouraging U.S. data, increasing volatility and rising geopolitical risk. Equities gained modestly in the first quarter as policymakers around the world acted to support the global economy. U.S. stocks rallied on positive economic news and the European Central Bank (ECB) maintained its record-low interest rate. As volatility subsided and interest rates remained low in the second quarter, markets charged higher.

Global equity returns were subdued through the late summer as geopolitical risks rose and economic data disappointed. Despite these conditions, U.S. stocks posted third-quarter gains following better-than-expected growth indicators, including improvements in consumer spending, tourism and manufacturing. In Asia, the Bank of Japan provided assurances that it would take further action to bolster the economy. By the end of the period under review, U.S. stocks had tallied another solid quarterly gain after more encouraging growth data. Low inflation continued to pose challenges for ECB policymakers. Emerging-market equities struggled as stocks in Russia declined thanks to a falling ruble and weak oil prices, and Brazil grappled with a corruption scandal that threatened several key public-works projects.

The Fund underperformed its benchmark during the period. Investors moved away from momentum stocks, weakening relative returns in March and April. For the year, industrials, consumer staples and consumer discretionary were the worst relative performers by sector. Holdings in an

engineering construction company, which fell on concerns that low oil prices would negatively affect the company’s pending projects, detracted from relative performance. Additionally, shares in a specialty food retailer dropped after disappointing earnings, as did a position in a media streaming service, which experienced weak subscriber growth. The Fund sold its position in the latter two holdings.*

The Fund’s relative performance was bolstered by a lack of exposure to telecommunication services, and high-performing health care stocks. For example, shares in one pharmaceutical company rose with the continued success of one of its drugs, while shares of another appreciated as confidence in its cystic fibrosis program grew. Also, shares of a science tools company rose as the company announced strong quarterly reports, bolstered by ongoing demand for its next-generation sequencing tools.*

Past performance does not guarantee future results.

¹	The Russell 1000^® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek long-term growth of capital and income. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets, plus any borrowings for investment purposes, in stocks that are included in a widely recognized index of stock market performance.

Investment Concerns

Growth based investments can perform differently from the market as a whole and can be more volatile than other types of securities.

Investing in a single industry or sector, or concentrating investments in a limited number of industries or sectors, tends to increase the risk that economic, political, or regulatory developments affecting certain industries or sectors will have a large impact on the value of the portfolio.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® Dreyfus Research Growth Fund		8.45	%		20.20	%		15.63	%		7.64	%
Russell 1000^® Growth Index		13.05	%		20.26	%		15.81	%		8.49	%


Expense Ratio	Gross
AZL^® Dreyfus Research Growth Fund		1.07	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager has voluntarily reduced the management fee to 0.70%. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

As a shareholder of the AZL Dreyfus Research Growth Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (98.1%):
	Aerospace & Defense (4.5%):
	67,874	Honeywell International, Inc.	$	6,781,969
	20,502	Precision Castparts Corp.		4,938,522
	33,052	Raytheon Co.		3,575,235

				15,295,726

	Air Freight & Logistics (1.1%):
	21,725	FedEx Corp.		3,772,764

	Auto Components (0.8%):
	37,519	Delphi Automotive plc		2,728,382

	Beverages (4.0%):
	96,223	Coca-Cola Enterprises, Inc.		4,254,981
	98,147	PepsiCo, Inc.		9,280,781

				13,535,762

	Biotechnology (9.0%):
	23,895	Alexion Pharmaceuticals, Inc.*		4,421,292
	14,398	Biogen Idec, Inc.*		4,887,401
	55,206	Celgene Corp.*		6,175,342
	76,375	Gilead Sciences, Inc.*		7,199,107
	7,790	Regeneron Pharmaceuticals, Inc.*		3,195,848
	38,892	Vertex Pharmaceuticals, Inc.*		4,620,370

				30,499,360

	Capital Markets (2.5%):
	32,222	Ameriprise Financial, Inc.		4,261,361
	11,536	BlackRock, Inc., Class A		4,124,812

				8,386,173

	Chemicals (2.0%):
	71,956	Dow Chemical Co. (The)		3,281,913
	28,704	Praxair, Inc.		3,718,890

				7,000,803

	Commercial Services & Supplies (1.2%):
	89,978	Tyco International plc		3,946,435

	Construction & Engineering (1.0%):
	54,777	Fluor Corp.		3,321,130

	Construction Materials (0.8%):
	24,559	Martin Marietta Materials, Inc.		2,709,349

	Consumer Finance (0.8%):
	42,954	Discover Financial Services		2,813,057

	Diversified Financial Services (1.3%):
	20,205	IntercontinentalExchange Group, Inc.		4,430,754

	Energy Equipment & Services (1.9%):
	77,835	Schlumberger, Ltd.		6,647,887

	Food & Staples Retailing (2.6%):
	30,702	Costco Wholesale Corp.		4,352,009
	47,289	CVS Caremark Corp.		4,554,403

				8,906,412

	Food Products (1.1%):
	107,158	Mondelez International, Inc., Class A		3,892,514


Shares			Fair Value
	Common Stocks, continued
	Health Care Providers & Services (2.7%):
	25,629	McKesson, Inc.	$	5,320,068
	39,322	UnitedHealth Group, Inc.		3,975,061

				9,295,129

	Household Products (1.6%):
	78,891	Colgate-Palmolive Co.		5,458,468

	Industrial Conglomerates (1.2%):
	49,485	Danaher Corp.		4,241,359

	Insurance (1.3%):
	78,725	Marsh & McLennan Cos., Inc.		4,506,219

	Internet & Catalog Retail (1.7%):
	5,042	Priceline.com, Inc.*		5,748,939

	Internet Software & Services (8.3%):
	45,081	Akamai Technologies, Inc.*		2,838,300
	121,732	Facebook, Inc., Class A*		9,497,530
	11,751	Google, Inc., Class C*		6,185,726
	11,751	Google, Inc., Class A*		6,235,786
	15,245	LinkedIn Corp., Class A*		3,501,929

				28,259,271

	IT Services (4.7%):
	35,861	Accenture plc, Class A		3,202,746
	65,817	Cognizant Technology Solutions Corp., Class A*		3,465,923
	35,184	Visa, Inc., Class A		9,225,245

				15,893,914

	Life Sciences Tools & Services (1.0%):
	19,091	Illumina, Inc.*		3,523,817

	Machinery (1.2%):
	29,418	Cummins, Inc.		4,241,193

	Media (4.8%):
	38,661	AMC Networks, Inc., Class A*		2,465,412
	120,154	Comcast Corp., Class A		6,970,133
	163,952	Interpublic Group of Cos., Inc. (The)		3,405,283
	47,415	Viacom, Inc., Class B		3,567,979

				16,408,807

	Multiline Retail (0.9%):
	42,487	Dollar General Corp.*		3,003,831

	Oil, Gas & Consumable Fuels (2.5%):
	53,122	EOG Resources, Inc.		4,890,943
	82,216	Kinder Morgan, Inc.		3,478,559

				8,369,502

	Personal Products (1.4%):
	62,856	Estee Lauder Co., Inc. (The), Class A		4,789,627

	Pharmaceuticals (3.7%):
	21,679	Actavis, Inc. plc*		5,580,391
	54,598	Bristol-Myers Squibb Co.		3,222,920
	23,523	Perrigo Co. plc		3,932,105

				12,735,416


Shares			Fair Value
	Common Stocks, continued
	Software (9.2%):
	48,795	Adobe Systems, Inc.*	$	3,547,397
	88,832	Fortinet, Inc.*		2,723,589
	59,667	Intuit, Inc.		5,500,701
	206,196	Microsoft Corp.		9,577,804
	113,512	Oracle Corp.		5,104,635
	81,682	Salesforce.com, Inc.*		4,844,559

				31,298,685

	Specialty Retail (3.3%):
	75,980	Home Depot, Inc. (The)		7,975,620
	26,514	Ulta Salon, Cosmetics & Fragrance, Inc.*		3,389,550

				11,365,170

	Technology Hardware, Storage & Peripherals (9.5%):
	215,657	Apple, Inc.		23,804,220
	145,342	EMC Corp.		4,322,471
	43,752	SanDisk Corp.		4,286,821

				32,413,512

	Textiles, Apparel & Luxury Goods (4.5%):
	53,487	Michael Kors Holdings, Ltd.*		4,016,874
	54,301	Nike, Inc., Class B		5,221,041
	33,658	PVH Corp.		4,313,946
	27,097	Under Armour, Inc., Class A*		1,839,886

				15,391,747

	Total Common Stocks (Cost $237,466,638)			334,831,114

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investments in non-affiliates, at cost	$	237,466,638
Investments in affiliates, at cost		6,976,164

Total Investment securities, at cost	$	244,442,802

Investments in non-affiliates, at value	$	334,831,114
Investments in affiliates, at value		6,976,164

Total Investment securities, at value		341,807,278
Interest and dividends receivable		241,601
Prepaid expenses		2,938

Total Assets		342,051,817

Liabilities:
Payable for capital shares redeemed		267,417
Manager fees payable		205,008
Administration fees payable		7,890
Distribution fees payable		73,217
Custodian fees payable		2,710
Administrative and compliance services fees payable		930
Trustee fees payable		19
Other accrued liabilities		16,018

Total Liabilities		573,209

Net Assets	$	341,478,608

Net Assets Consist of:
Capital	$	200,826,345
Accumulated net investment income/(loss)		599,506
Accumulated net realized gains/(losses) from investment transactions		42,688,281
Net unrealized appreciation/(depreciation) on investments		97,364,476

Net Assets	$	341,478,608

Shares of beneficial interest (unlimited number of shares authorized, no par value)		22,545,048
Net Asset Value (offering and redemption price per share)	$	15.15

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	4,072,580
Dividends from affiliates		1

Total Investment Income		4,072,581

Expenses:
Manager fees		2,648,258
Administration fees		93,396
Distribution fees		870,252
Custodian fees		11,964
Administrative and compliance services fees		4,578
Trustee fees		17,664
Professional fees		18,856
Shareholder reports		16,297
Other expenses		8,323

Total expenses before reductions		3,689,588
Less expenses voluntarily waived/reimbursed by the Manager		(211,556	)
Less expenses paid indirectly		(4,973	)

Net expenses		3,473,059

Net Investment Income/(Loss)		599,522

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		42,895,777
Change in net unrealized appreciation/depreciation on investments		(15,932,685	)

Net Realized/Unrealized Gains/(Losses) on Investments		26,963,092

Change in Net Assets Resulting From Operations	$	27,562,614

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Dreyfus Research Growth Fund (the “Fund”), and 30 are presented in separate reports.

During the year ended December 31, 2014, the Fund did not enter into any futures contracts. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a portfolio management agreement with The Dreyfus Corporation (“Dreyfus”), Dreyfus provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $4,362 was paid from the Fund relating to these fees and expenses.

During the year ended December 31, 2014, the Fund paid approximately $641 to affiliated broker/dealers of the Subadvisor on the execution of purchases and sales of the Fund’s portfolio investments.

For the year ended December 31, 2014, there were no level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $244,666,414. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

Effective close of business on April 27, 2015, The Boston Company will replace The Dreyfus Corporation as the subadviser to the AZL^® Dreyfus Research Growth Fund. In addition, the following name change will be effective on April 27, 2015.

We have audited the accompanying statement of assets and liabilities of AZL Dreyfus Research Growth Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $17,640,894.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Enhanced Bond Index Fund had a total return of 5.35%. That compared to a 5.97% total return for its benchmark, the Barclays U.S. Aggregate Bond Index¹.

Fixed-income markets performed relatively well during the 12- month period as a decline in long-term yields pushed prices higher. Investors started the period with an appetite for risk, which supported higher prices on securities such as corporate bonds. As the period progressed, however, that sentiment changed. Investors grew increasingly concerned about long-term growth prospects for the global economy because of persistent factors such as muted inflation, weak wage growth, declining oil prices and a lag in the U.S. housing recovery. Poor economic growth abroad drove international investors to seek safety in U.S. Treasuries, which drove up prices and pushed down yields. Investors abandoned riskier assets in the second half of the period, causing spreads to widen. The resulting drop in prices in investment grade corporate bonds offset earlier gains, leading the asset class to post a loss for the year and dragging on the Fund’s absolute return.

Despite a strong absolute return, the Fund slightly underperformed its benchmark for the year. The Fund’s allocation to Treasury Inflation Protected Securities (TIPS) was the largest detractor from relative performance. The drop in energy prices in conjunction with renewed fears about global growth in the second half of the period limited inflation concerns and led TIPS to underperform. The portfolio’s duration positioning also weighed on relative performance. The Fund favored a shorter duration stance than the benchmark throughout the second half of the period in anticipation of a rise in interest rates. When rates fell, the strategy underperformed. An underweight allocation to corporate bonds also dragged on performance early in the period as these bonds benefited from the positive outlook that prevailed in the period’s first half.*

The largest positive contributor to relative performance involved the portfolio’s yield curve positioning, which involved a tactical “flattener trade” in anticipation that the yield curve on Treasuries would flatten. The strategy contributed to relative performance as long-term yields fell and short-term yields rose. An overweight position in commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) boosted the Fund’s relative performance, as those sectors outperformed duration-adjusted Treasuries. A preference for auto collateral in the ABS sector also contributed to relative performance, as did an underweight to corporate bonds given that asset class’s underperformance.*

The Fund held derivatives to hedge risk and adjust its duration and yield curve exposure rather than to generate performance. Forward contracts were used to hedge against the portfolio’s currency exposure from non-dollar bonds, while Treasury futures served to adjust the Fund’s duration and yield curve exposure.*

Past performance does not guarantee future results.

¹	The Barclays U.S. Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to exceed the total return of the Barclays U.S. Aggregate Bond Index. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets in investment-grade debt securities (those of medium and high quality) of all types and repurchase agreements for those securities.

Investment Concerns

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.

Mortgage-backed investments involve risk of loss due to prepayments and, like any bond, due to default. Because of the sensitivity of mortgage-related securities to changes in interest rates, the Fund’s performance may be more volatile than if it did not hold these securities.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

The performance of the Fund is expected to be lower than that of the Index because of Fund fees and expenses. Securities in which the Fund will invest may involve substantial risk and may be subject to sudden severe price declines.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (7/10/09)
AZL^® Enhanced Bond Index Fund		5.35	%		2.36	%		3.98	%		3.70	%
Barclays U.S. Aggregate Bond Index		5.97	%		2.66	%		4.45	%		4.57	%


Expense Ratio¹	Gross
AZL^® Enhanced Bond Index Fund		0.69	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 0.70% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Barclays U.S. Aggregate Bond Index, which is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Enhanced Bond Index Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Principal Amount			Fair Value
	Asset Backed Securities (8.9%):
$	2,991,825	American Homes 4 Rent LLC, Class A, Series 2014-SFR2, 3.79%, 10/17/36(a)	$	3,052,446
	2,635,000	American Homes 4 Rent LLC, Class A, Series 2014-SFR3, 3.68%, 12/17/36(a)		2,663,819
	2,360,000	AmeriCredit Automobile Receivables Trust, Class A3, Series 2013-5, 0.90%, 9/8/18		2,359,202
	3,210,000	AmeriCredit Automobile Receivables Trust, Class A2A, Series 2014-4, 0.72%, 4/9/18		3,208,587
	225,458	Auto ABS Compartiment, Class A, Series 2012-2, 2.80%, 4/27/25(a)		274,841
	2,160,000	Cabela’s Master Credit Card Trust, Class A2, Series 2013-2A, 0.81%, 8/16/21(a)(b)		2,174,118
	598,901	Capital Auto Receivables Asset Trust, Class A2, Series 2013-1, 0.62%, 7/20/16		598,988
	2,560,000	Chrysler Capital Auto Receivables Trust, Class A3, Series 2013-BA, 0.85%, 5/15/18(a)		2,559,191
	1,270,000	Chrysler Capital Auto Receivables Trust, Class B, Series 2013-BA, 1.78%, 6/17/19(a)		1,272,851
	2,210,000	Citibank Credit Card Issuance Trust, Class A1, Series 2014-A1, 2.88%, 1/23/23		2,266,313
	1,983,817	CNH Equipment Trust, Class A3, Series 2013-A, 0.69%, 6/15/18		1,983,444
	1,920,000	Credit Acceptance Auto Loan Trust, Class A, Series 2013-1A, 1.21%, 10/15/20(a)		1,920,564
	2,840,000	Credit Acceptance Auto Loan Trust, Class A, Series 2014-1A, 1.55%, 10/15/21(a)		2,834,400
	3,190,000	Credit Acceptance Auto Loan Trust, Class A, Series 2014-2A, 1.88%, 3/15/22(a)		3,190,115
	557,814	First Investors Auto Owner Trust, Class A2, Series 2013-1A, 0.90%, 10/15/18(a)		557,707
	1,314,913	Ford Credit Auto Owner Trust, Class A3, Series 2013-A, 0.55%, 7/15/17		1,314,616
	2,025,000	Ford Credit Floorplan Master Owner Trust, Class A, Series 2012-2, 1.92%, 1/15/19		2,047,232
	1,595,000	Golden Credit Card Trust, Class A, Series 2013-1A, 0.40%, 2/15/18(a)(b)		1,594,455
	3,290,000	Golden Credit Card Trust, Class A, Series 2014-1A, 0.48%, 3/15/19(a)(b)		3,287,681
	2,190,000	GoldenTree Loan Opportunities VII, Ltd., Class A, Series 2013-7A, 1.38%, 4/25/25(a)(b)		2,148,075
	2,340,000	Invitation Homes Trust, Class A, Series 2014-SFR2, 1.25%, 9/17/31(a)(b)		2,310,933
	2,345,000	Invitation Homes Trust, Class A, Series 2014-SFR3, 1.35%, 12/17/31(a)(b)		2,331,927
	2,140,000	Nextgear Floorplan Master Owner Trust, Class A, Series 2014-1A, 1.92%, 10/15/19(a)		2,135,236
	1,830,000	Nissan Master Owner Trust Receivables, Class A, Series 2013-A, 0.45%, 2/15/18(b)		1,827,914
	2,205,000	Nomad CLO, Ltd., Class A1, Series 2013-1A, 1.43%, 1/15/25(a)(b)		2,171,200
	2,975,000	OneMain Financial Issuance Trust, Class A, Series 2014-2A, 2.47%, 9/18/24(a)		2,986,662
	1,735,000	PFS Financing Corp., Class A, Series 2013-AA, 0.71%, 2/15/18(a)(b)		1,734,565
	616,758	Prestige Auto Receivables Trust, Class A2, Series 2013-1A, 1.09%, 2/15/18(a)		617,534


Principal Amount			Fair Value
	Asset Backed Securities, continued
$	2,300,000	Prestige Auto Receivables Trust, Class C, Series 2014-1A, 2.39%, 5/15/20(a)	$	2,290,982
	2,000,000	Santander Drive Auto Receivables Trust, Class B, Series 2013-5, 1.55%, 10/15/18		2,006,394
	142,728	Santander Drive Auto Receivables Trust, Class C, Series 2011-3, 3.09%, 5/15/17		143,602
	1,330,000	Santander Drive Auto Receivables Trust, Class B, Series 2012-5, 1.56%, 8/15/18		1,332,990
	501,017	Santander Drive Auto Receivables Trust, Class B, Series 2012-3, 1.94%, 12/15/16		501,750
	1,200,000	Santander Drive Auto Receivables Trust, Class C, Series 2012-6, 1.94%, 4/16/18		1,208,195
	1,785,000	Santander Drive Auto Receivables Trust, Class B, Series 2013-2, 1.33%, 3/15/18		1,788,734
	1,900,000	Santander Drive Auto Receivables Trust, Class C, Series 2013-4, 3.25%, 1/15/20		1,956,669
	2,468,946	Santander Drive Auto Receivables Trust, Class A3, Series 2013-A, 1.02%, 1/16/18(a)		2,472,491
	2,075,000	Santander Drive Auto Receivables Trust, Class B, Series 2013-A, 1.89%, 10/15/19(a)		2,093,275
	1,431,481	Santander Drive Auto Receivables Trust, Class R, Series 2014-S6, 1.43%, 12/16/19(a)		1,437,551
	3,342,022	Silver Bay Realty 2014-1 Trust, Class A, Series 2014-1, 1.15%, 9/17/31(a)(b)		3,291,136
	393,040	SLM Student Loan Trust, Class A2, Series 2004-B, 0.44%, 6/15/21(b)		390,276
	2,217,540	SLM Student Loan Trust, Class A4, Series 2006-A, 0.43%, 12/15/23(b)		2,198,473
	606,486	SLM Student Loan Trust, Class A1, Series 2012-A, 1.56%, 4/15/16(a)(b)		612,795
	2,140,000	Sway Residential Trust, Class A, Series 2014-1, 1.46%, 1/17/20(a)(b)		2,133,859
	1,115,000	World Financial Network Credit Card Master Trust, Class A, Series 2012-A, 3.14%, 1/17/23		1,159,187

	Total Asset Backed Securities (Cost $84,306,658)			84,442,975

	Collateralized Mortgage Obligations (6.6%):
	1,309,695	Banc of America Commercial Mortgage, Inc., Class A1A, Series 2007-3, 5.78%, 6/10/49(b)		1,411,833
	146,865	Banc of America Large Loan, Class A4B, Series 2010-UB4, 4.94%, 12/20/41(a)(b)		146,880
	50,000	Bear Stearns Commercial Mortgage Securities, Inc., Class AM, Series 2005-PW10, 5.45%, 12/15/15(b)		51,618
	1,777,756	Bear Stearns Commercial Mortgage Securities, Inc., Class A1A, Series 2006-PW14, 5.19%, 12/11/38		1,885,169
	3,310,434	Bear Stearns Commercial Mortgage Securities, Inc., Class A1A, Series 2007-PW15, 5.32%, 2/11/44		3,533,007
	625,000	Bear Stearns Commercial Mortgage Securities, Inc., Class AM, Series 2007-PW16, 5.90%, 6/1/40(b)		681,198
	2,540,000	BHMS Mortgage Trust, Class AFL, Series 2014-ATLS, 1.66%, 7/5/33(a)(b)		2,527,861
	1,170,000	Citigroup Commercial Mortgage Trust, Class A, Series 2014-388G, 0.91%, 6/15/33(a)(b)		1,171,114


Principal Amount			Fair Value
	Collateralized Mortgage Obligations, continued
$	2,030,609	Commercial Mortgage Loan Trust, Class A1A, Series 2008-LS1, 6.24%, 12/10/49(b)	$	2,217,398
	590,000	Commercial Mortgage Pass-Through Certificates, Class AM, Series 2006-C8, 5.35%, 12/10/16		631,506
	1,115,000	Commercial Mortgage Trust, Class A4, Series 2014-UBS3, 3.82%, 6/10/47		1,181,962
	2,360,000	Commercial Mortgage Trust, Class A3, Series 2014-CR21, 3.53%, 12/10/47		2,448,744
	428,000	Commercial Mortgage Trust, Class B, Series 2012-LTRT, 3.80%, 10/5/30(a)		414,154
	1,901,684	Commercial Mortgage Trust, Class A, Series 2013-FL3, 1.68%, 10/13/28(a)(b)		1,906,034
	1,510,000	Commercial Mortgage Trust, Class C, Series 2014-CR17, 4.90%, 5/10/47(b)		1,594,223
	1,975,000	Commercial Mortgage Trust, Class A, Series 2014-TWC, 1.00%, 2/13/32(a)(b)		1,967,890
	2,245,000	Commerical Mortgage Trust, Class B, Series 2014-FL5, 2.30%, 10/15/31(a)(b)		2,237,331
	2,068,247	Connecticut Avenue Securities, Class 1M1, Series 2014-C04, 2.11%, 11/25/24(b)		2,070,407
	855,000	Credit Suisse Commercial Mortgage Trust, Class AM, Series 2006-C5, 5.34%, 12/15/39		907,695
	100,000	Credit Suisse Mortgage Capital Certificates, Class AM, Series 2006-C3, 6.00%, 6/15/16(b)		105,544
	1,940	Credit Suisse Mortgage Capital Certificates, Class A2, Series 2007-C2, 5.45%, 1/15/49(b)		1,925
	2,022,602	DBRR Trust, Class A, Series 2013-EZ3, 1.64%, 12/18/49(a)(b)		2,033,031
	1,320,000	DBUBS Mortgage Trust, Class A2, Series 2011-LC1A, 4.53%, 7/1/19(a)		1,424,795
	1,022,737	DBUBS Mortgage Trust, Class A1, Series 2011-LC1A, 3.74%, 6/10/17(a)		1,047,764
	9,266,892	Government National Mortgage Association, Class XA, Series 2014-GC20, 1.38%, 4/10/47(b)		706,971
	10,721,826	GS Mortgage Securities Trust, Class XA, Series 2013-GC10, 1.88%, 2/10/46(b)		1,040,307
	1,100,000	GS Mortgage Securities Trust, Class A, Series 2012-SHOP, 2.93%, 6/5/31(a)		1,127,600
	1,065,000	GS Mortgage Securities Trust, Class B, Series 2014-GC22, 4.39%, 6/10/47		1,126,721
	1,500,000	Hilton USA Trust, Class AFX, Series 2013-HLT, 2.66%, 11/5/30(a)		1,501,892
	2,185,000	JPMBB Commercial Mortgage Securities Trust, Class A4, Series 2014-C22, 3.80%, 9/15/47		2,310,908
	14,553	JPMorgan Chase Commercial Mortgage Securities Corp., Class A2, Series 2007-LD11, 5.96%, 6/15/49(b)		14,522
	600,000	JPMorgan Chase Commercial Mortgage Securities Corp., Class A, Series 2012-WLDN, 3.90%, 5/5/30(a)		627,168
	11,423,526	JPMorgan Chase Commercial Mortgage Securities Corp., Class XA, Series 2013-LC11, 1.71%, 4/15/46(b)		981,327


Principal Amount			Fair Value
	Collateralized Mortgage Obligations, continued
$	1,082,674	Lanark Master Issuer plc, Class 1A, Series 2012-2A, 1.63%, 12/22/54(a)(b)	$	1,092,306
	1,200,000	LB Commercial Conduit Mortgage Trust, Class AM, Series 2007-C3, 6.10%, 7/15/44(b)		1,305,208
	1,500,387	Merrill Lynch Mortgage Trust, Class A1A, Series 2007-C1, 6.03%, 6/12/50(b)		1,598,243
	1,229,668	ML-CFC Commercial Mortgage Trust, Class A1A, Series 2006-4, 5.17%, 12/12/49(b)		1,296,787
	2,101,835	ML-CFC Commercial Mortgage Trust, Class A1A, Series 2006-3, 5.41%, 7/12/46(b)		2,228,983
	1,395,000	Morgan Stanley BAML Trust, Class C, Series 2013-C13, 5.06%, 11/15/46(b)		1,477,569
	1,196,234	Morgan Stanley Capital I Trust, Class A1A, Series 2007-IQ13, 5.31%, 3/15/44		1,271,069
	2,715,000	Morgan Stanley Capital I Trust, Class A, Series 2014-MP, 3.47%, 8/11/29(a)		2,810,084
	573,886	Morgan Stanley Re-REMIC Trust, Class B, Series 2011-IO, 0.02%, 3/23/51(a)		568,865
	623,231	Morgan Stanley Re-REMIC Trust, Class A, Series 2012-XA, 2.00%, 7/28/49(a)		624,789
	63,421	Morgan Stanley Re-REMIC Trust, Class AXB1, Series 2012-IO, 1.00%, 3/29/51(a)		63,358
	1,010,000	Motel 6 Trust, Class B, Series 2012-MTL6, 2.74%, 10/5/25(a)		1,006,185
	616,662	RBSCF Trust, Class WBTA, Series 2010-RR3, 6.14%, 4/16/17(a)(b)		642,496
	403,058	STRIPS, Class A, Series 2012-1A, 1.50%, 12/25/44(a)		403,058
	18,395,765	WF-RBS Commercial Mortgage Trust, Class XA, Series 2014-C20, 1.40%, 5/15/47(b)		1,401,279
	1,545,000	WF-RBS Commercial Mortgate Trust, Class A5, Series 2014-LC14, 4.05%, 3/15/47(b)		1,662,843

	Total Collateralized Mortgage Obligations (Cost $62,781,979)			62,489,621

	Corporate Bonds (18.0%):
	Aerospace & Defense (0.0%):
	345,000	Boeing Co. (The), 2.85%, 10/30/24, Callable 7/30/24 @ 100		342,831

	Aerospace/Defense (0.2%):
	785,000	Precision Castparts Corp., 3.90%, 1/15/43, Callable 7/15/42 @ 100		789,551
	390,000	United Technologies Corp., 3.10%, 6/1/22^		397,928
	1,040,000	United Technologies Corp., 4.50%, 6/1/42		1,132,341

				2,319,820

	Air Freight & Logistics (0.1%):
	500,000	FedEx Corp., 3.88%, 8/1/42^		481,868

	Banks (3.5%):
	1,650,000	Bank of America Corp., 1.50%, 10/9/15		1,656,766
	430,000	Bank of America Corp., Series 1, 3.75%, 7/12/16		445,376
	1,245,000	Bank of America Corp., 6.50%, 8/1/16		1,341,271
	820,000	Bank of America Corp., 5.63%, 10/14/16		878,126
	1,315,000	Bank of America Corp., 0.49%, 10/14/16(b)		1,305,293
	1,050,000	Bank of America Corp., Series L, 1.35%, 11/21/16		1,047,015


Principal Amount			Fair Value
	Corporate Bonds, continued
	Banks, continued
$	1,065,000	Bank of America Corp., 1.32%, 3/22/18, MTN(b)	$	1,072,781
	2,695,000	Bank of America Corp., 2.60%, 1/15/19		2,715,955
	390,000	Bank of America Corp., 4.00%, 4/1/24		406,078
	700,000	Bank of America Corp., 4.20%, 8/26/24		713,108
	1,155,000	Bank of America Corp., 4.25%, 10/22/26, MTN^		1,152,407
	1,260,000	Citigroup, Inc., 1.30%, 4/1/16		1,261,788
	1,035,000	Citigroup, Inc., 1.03%, 4/1/16(b)		1,038,629
	1,180,000	Citigroup, Inc., 2.50%, 7/29/19^		1,180,948
	395,000	Fifth Third Bank, Series BKNT, 2.88%, 10/1/21, Callable 9/1/21 @ 100		394,960
	1,630,000	HSBC USA, Inc., 3.50%, 6/23/24^		1,681,911
	1,350,000	JPMorgan Chase & Co., Series G, 0.85%, 2/26/16(b)		1,352,673
	730,000	JPMorgan Chase & Co., 2.00%, 8/15/17^		736,942
	775,000	JPMorgan Chase & Co., 1.13%, 1/25/18^(b)		781,086
	1,095,000	JPMorgan Chase & Co., 2.20%, 10/22/19^		1,085,558
	2,205,000	JPMorgan Chase & Co., 3.63%, 5/13/24^		2,257,044
	1,565,000	Wells Fargo & Co., 1.25%, 7/20/16		1,570,190
	1,300,000	Wells Fargo & Co., 1.40%, 9/8/17^		1,298,944
	1,170,000	Wells Fargo & Co., 0.86%, 4/23/18(b)		1,171,916
	1,080,000	Wells Fargo & Co., 3.30%, 9/9/24, MTN^		1,086,758
	1,040,000	Wells Fargo & Co., 4.10%, 6/3/26, MTN		1,062,939
	360,000	Wells Fargo & Co., 5.38%, 11/2/43		409,577
	580,000	Wells Fargo & Co., Series K, 7.98%, 3/29/49, Callable 3/15/18 @ 100(b)		640,175
	435,000	Wells Fargo & Co., Series S, 5.90%, 12/31/49, Callable 6/15/24 @ 100(b)		438,263

				32,184,477

	Beverages (0.1%):
	460,000	Anheuser-Busch InBev NV Worldwide, Inc., 5.00%, 4/15/20^		514,313

	Biotechnology (0.2%):
	450,000	Amgen, Inc., 3.63%, 5/15/22, Callable 2/15/22 @ 100		463,262
	545,000	Amgen, Inc., 5.15%, 11/15/41, Callable 5/15/41 @ 100		614,297
	395,000	Amgen, Inc., 5.38%, 5/15/43, Callable 11/15/42 @ 100^		458,888
	310,000	Gilead Sciences, Inc., 3.50%, 2/1/25, Callable 11/1/24 @ 100		318,184

				1,854,631

	Capital Markets (2.0%):
	1,045,000	Ford Motor Credit Co. LLC, 1.72%, 12/6/17		1,034,200
	1,055,000	Ford Motor Credit Co. LLC, 8.13%, 1/15/20		1,306,785
	370,000	General Electric Capital Corp., 4.38%, 9/16/20		405,237
	555,000	General Electric Capital Corp., Series G, 6.15%, 8/7/37, MTN^		723,901
	905,000	Goldman Sachs Group, Inc. (The), 0.70%, 3/22/16(b)		902,982
	1,175,000	Goldman Sachs Group, Inc. (The), 2.38%, 1/22/18, MTN		1,186,866


Principal Amount			Fair Value
	Corporate Bonds, continued
	Capital Markets, continued
$	915,000	Goldman Sachs Group, Inc. (The), 1.43%, 4/30/18(b)	$	925,736
	932,000	Goldman Sachs Group, Inc. (The), 2.90%, 7/19/18		956,120
	192,000	Goldman Sachs Group, Inc. (The), 2.63%, 1/31/19^		193,172
	3,000,000	Goldman Sachs Group, Inc. (The), 2.55%, 10/23/19^		2,989,045
	190,000	Goldman Sachs Group, Inc. (The), 3.63%, 1/22/23		192,398
	360,000	Goldman Sachs Group, Inc. (The), 4.80%, 7/8/44, Callable 1/8/44 @ 100		385,588
	2,525,000	Morgan Stanley, 6.00%, 4/28/15, MTN		2,565,865
	470,000	Morgan Stanley, 2.38%, 7/23/19^		468,267
	870,000	Morgan Stanley, 3.75%, 2/25/23		892,464
	290,000	Morgan Stanley, Series F, 3.88%, 4/29/24^		297,550
	730,000	Morgan Stanley, 3.70%, 10/23/24^		739,943
	320,000	Morgan Stanley, Series G, 4.35%, 9/8/26, MTN		321,912
	1,740,000	State Street Capital Trust IV, 1.24%, 6/15/37, Callable 2/9/15 @ 100(b)		1,444,200
	264,670	SteelRiver Transmission Co. LLC, 4.71%, 6/30/17(a)		275,580

				18,207,811

	Chemicals (0.2%):
	233,000	Dow Chemical Co. (The), 4.25%, 10/1/34, Callable 4/1/34 @ 100^		228,840
	555,000	Eastman Chemical Co., 2.40%, 6/1/17		563,664
	410,000	Eastman Chemical Co., 2.70%, 1/15/20, Callable 12/15/19 @ 100		412,327
	690,000	Eastman Chemical Co., 3.80%, 3/15/25, Callable 12/15/24 @ 100		702,407
	70,000	Eastman Chemical Co., 4.65%, 10/15/44, Callable 4/15/44 @ 100^		71,631

				1,978,869

	Consumer Finance (0.5%):
	1,135,000	American Express Credit Corp., 1.13%, 6/5/17^		1,131,427
	975,000	Capital One Bank USA NA, Series BKNT, 1.15%, 11/21/16, Callable 10/21/16 @ 100		971,488
	290,000	Capital One Bank USA NA, 1.30%, 6/5/17, Callable 5/5/17 @ 100		287,505
	2,575,000	Capital One Bank USA NA, Series BKNT, 2.25%, 2/13/19, Callable 1/13/19 @ 100		2,556,352

				4,946,772

	Diversified Financial Services (0.6%):
	310,000	Bayer US Finance LLC, 3.38%, 10/8/24(a)		315,447
	1,155,000	Caterpillar Financial Services Corp., 1.10%, 5/29/15, MTN^		1,158,662
	795,000	Citigroup, Inc., 5.30%, 5/6/44^		871,057
	1,090,000	Daimler Finance NA LLC, 1.88%, 1/11/18^(a)		1,093,788
	1,090,000	General Electric Capital Corp., 0.95%, 4/2/18(b)		1,100,127
	720,000	JPMorgan Chase & Co., 6.00%, 1/15/18		805,563


Principal Amount			Fair Value
	Corporate Bonds, continued
	Diversified Financial Services, continued
$	125,000	JPMorgan Chase & Co., 4.50%, 1/24/22	$	136,469
	130,000	JPMorgan Chase & Co., 3.25%, 9/23/22		130,757
	515,000	JPMorgan Chase & Co., 3.88%, 9/10/24^		515,438

				6,127,308

	Diversified Telecommunication Services (0.7%):
	860,000	AT&T, Inc., 0.90%, 2/12/16		859,773
	3,000,000	AT&T, Inc., 3.74%, 11/27/22, Callable 5/27/15 @ 70(a)(c)		2,270,569
	550,000	Verizon Communications, Inc., 2.45%, 11/1/22, Callable 8/1/22 @ 100		516,043
	1,195,000	Verizon Communications, Inc., 5.15%, 9/15/23		1,319,558
	780,000	Verizon Communications, Inc., 4.40%, 11/1/34, Callable 5/1/34 @ 100		775,305
	925,000	Verizon Communications, Inc., 6.55%, 9/15/43		1,185,063

				6,926,311

	Education Services (0.1%):
	700,000	Massachusetts Institute of Technology, 4.68%, 7/1/14		809,572

	Electric Utilities (0.7%):
	425,000	Alabama Power Co., 4.15%, 8/15/44, Callable 2/15/44 @ 100		446,196
	430,000	Carolina Power & Light Co., 4.10%, 3/15/43, Callable 9/15/42 @ 100^		456,378
	610,000	CenterPoint Energy Houston Electric LLC, 4.50%, 4/1/44, Callable 10/1/43 @ 100		680,842
	355,000	DTE Electric Co., Series A, 4.00%, 4/1/43, Callable 10/1/42 @ 100^		366,242
	445,000	Exelon Corp., 5.63%, 6/15/35		520,266
	1,350,000	Oncor Electric Delivery Co. LLC, 6.38%, 1/15/15		1,351,938
	180,000	Oncor Electric Delivery Co. LLC, 7.00%, 9/1/22		227,997
	635,000	Pacific Gas & Electric Co., 5.13%, 11/15/43, Callable 5/15/43 @ 100		727,372
	250,000	Pacific Gas & Electric Co., 4.75%, 2/15/44, Callable 8/15/43 @ 100^		274,951
	350,000	PPL Capital Funding, Inc., 5.00%, 3/15/44, Callable 9/15/43 @ 100		389,527
	220,000	Southern California Edison Co., Series 06-E, 5.55%, 1/15/37		273,861
	185,000	Virginia Electric & Power Co., Series A, 6.00%, 5/15/37		243,742
	25,000	Virginia Electric & Power Co., 6.35%, 11/30/37		34,769
	200,000	Virginia Electric & Power Co., 4.00%, 1/15/43, Callable 7/15/42 @ 100		202,857

				6,196,938

	Electrical Equipment (0.3%):
	840,000	Eaton Corp., 1.50%, 11/2/17^		835,134
	255,000	Eaton Corp., 4.00%, 11/2/32		259,376
	1,720,000	General Electric Co., 2.70%, 10/9/22		1,720,698

				2,815,208


Principal Amount			Fair Value
	Corporate Bonds, continued
	Electronic Equipment, Instruments & Components (0.0%):
$	111,000	Agilent Technologies, Inc., 6.50%, 11/1/17	$	123,207

	Food Products (0.2%):
	630,000	Kraft Foods Group, Inc., 2.25%, 6/5/17		640,392
	1,425,000	Wm. Wrigley Jr. Co., 1.40%, 10/21/16(a)		1,426,153

				2,066,545

	Health Care Equipment & Supplies (0.3%):
	210,000	Baxter International, Inc., 3.20%, 6/15/23, Callable 3/15/23 @ 100		211,605
	170,000	Becton, Dickinson & Co., 1.80%, 12/15/17^		170,627
	125,000	Becton, Dickinson & Co., 2.68%, 12/15/19		126,644
	180,000	Becton, Dickinson & Co., 3.73%, 12/15/24, Callable 9/15/24 @ 100		185,324
	505,000	Becton, Dickinson & Co., 4.69%, 12/15/44, Callable 6/15/44 @ 100		543,865
	270,000	CareFusion Corp., 3.88%, 5/15/24, Callable 2/15/24 @ 100		278,638
	1,035,000	Medtronic, Inc., 3.50%, 3/15/25(a)		1,058,773
	665,000	Medtronic, Inc., 4.63%, 3/15/45(a)		720,853

				3,296,329

	Health Care Providers & Services (0.4%):
	380,000	Aetna, Inc., 4.13%, 11/15/42, Callable 5/15/42 @ 100		381,815
	725,000	UnitedHealth Group, Inc., 1.40%, 10/15/17		724,290
	200,000	UnitedHealth Group, Inc., 3.88%, 10/15/20, Callable 7/15/20 @ 100		211,870
	610,000	UnitedHealth Group, Inc., 2.88%, 12/15/21		616,941
	410,000	UnitedHealth Group, Inc., 4.25%, 3/15/43, Callable 9/15/42 @ 100^		429,830
	325,000	WellPoint, Inc., 3.30%, 1/15/23		324,683
	600,000	WellPoint, Inc., 3.50%, 8/15/24, Callable 5/15/24 @ 100		604,351
	300,000	WellPoint, Inc., 5.10%, 1/15/44		337,125

				3,630,905

	Household Products (0.0%):
	460,000	Procter & Gamble Co. (The), 1.90%, 11/1/19^		460,922

	Independent Power and Renewable Electricity Producers (0.6%):
	220,000	Carolina Power & Light Co., 5.70%, 4/1/35		268,227
	300,000	Columbus Southern Power Co., 6.05%, 5/1/18		338,998
	65,000	Florida Power & Light Co., 5.95%, 2/1/38		86,396
	845,000	Florida Power Corp., 6.40%, 6/15/38		1,168,324
	40,000	MidAmerican Energy Holdings Co., 5.95%, 5/15/37		49,779
	450,000	MidAmerican Energy Holdings Co., 6.50%, 9/15/37		588,956
	850,000	PacifiCorp, 5.65%, 7/15/18		960,242
	395,000	PacifiCorp, 5.75%, 4/1/37		507,424
	630,000	PacifiCorp, 4.10%, 2/1/42, Callable 8/1/41 @ 100		664,678
	350,000	Progress Energy Carolinas, Inc., 5.30%, 1/15/19		392,158
	865,000	Public Service Electric & Gas Co., 2.38%, 5/15/23, Callable 2/15/23 @ 100^		831,876

				5,857,058


Principal Amount			Fair Value
	Corporate Bonds, continued
	Industrial Conglomerates (0.1%):
$	495,000	3M Co., 3.88%, 6/15/44	$	509,048

	Insurance (1.0%):
	410,000	ACE INA Holdings, Inc., 4.15%, 3/13/43^		430,621
	125,000	American International Group, Inc., Series MP, 5.45%, 5/18/17, MTN		136,387
	1,080,000	American International Group, Inc., 4.88%, 6/1/22		1,213,212
	690,000	American International Group, Inc., 4.13%, 2/15/24		734,513
	695,000	American International Group, Inc., 4.50%, 7/16/44, Callable 1/16/44 @ 100		734,275
	405,000	Berkshire Hathaway Finance Corp., 4.30%, 5/15/43^		429,352
	410,000	Hartford Financial Services Group, Inc. (The), 4.30%, 4/15/43^		420,465
	555,000	Loews Corp., 4.13%, 5/15/43, Callable 11/15/42 @ 100		526,457
	1,710,000	MetLife Institutional Funding II LLC, 1.63%, 4/2/15(a)		1,714,575
	1,125,000	MetLife, Inc., 6.75%, 6/1/16		1,212,858
	905,000	New York Life Global Funding, 1.65%, 5/15/17(a)		911,889
	90,000	Prudential Financial, Inc., Series D, 4.75%, 9/17/15, MTN		92,351
	720,000	Prudential Financial, Inc., 3.50%, 5/15/24^		731,850

				9,288,805

	IT Services (0.0%):
	450,000	MasterCard, Inc., 3.38%, 4/1/24^		461,906

	Life Sciences Tools & Services (0.0%):
	280,000	Thermo Fisher Scientific, Inc., 5.30%, 2/1/44, Callable 8/1/43 @ 100^		321,579

	Machinery (0.1%):
	605,000	Deere & Co., 2.60%, 6/8/22, Callable 3/8/22 @ 100		595,184

	Media (1.0%):
	875,000	Comcast Corp., 4.20%, 8/15/34, Callable 2/15/34 @ 100^		914,940
	200,000	Comcast Corp., 6.50%, 11/15/35		266,999
	330,000	Comcast Corp., 6.45%, 3/15/37		439,039
	935,000	Comcast Corp., 4.65%, 7/15/42		1,023,369
	575,000	Cox Communications, Inc., 4.70%, 12/15/42(a)		574,491
	575,000	DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 3.50%, 3/1/16		589,998
	730,000	DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 5.20%, 3/15/20		807,197
	190,000	DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 3.80%, 3/15/22		193,300
	150,000	DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 4.45%, 4/1/24, Callable 1/1/24 @ 100^		156,946
	185,000	DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 3.95%, 1/15/25, Callable 10/15/24 @ 100		186,456


Principal Amount			Fair Value
	Corporate Bonds, continued
	Media, continued
$	89,000	DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 5.15%, 3/15/42	$	91,969
	111,000	Discovery Communications, Inc., 4.88%, 4/1/43		114,443
	1,135,000	NBCUniversal Enterprise, Inc., 0.92%, 4/15/18(a)(b)		1,144,443
	280,000	NBCUniversal Media LLC, 5.15%, 4/30/20		317,744
	816,000	NBCUniversal Media LLC, 4.45%, 1/15/43^		864,644
	525,000	Omnicom Group, Inc., 5.90%, 4/15/16		555,619
	820,000	Scripps Networks Interactive, Inc., 2.70%, 12/15/16		842,226
	385,000	Viacom, Inc., 2.75%, 12/15/19, Callable 11/11/19 @ 100^		385,763

				9,469,586

	Metals & Mining (0.3%):
	870,000	Freeport-McMoRan, Inc., 4.00%, 11/14/21^		861,998
	1,505,000	Freeport-McMoRan, Inc., 3.88%, 3/15/23, Callable 12/15/22 @ 100		1,418,968
	675,000	Freeport-McMoRan, Inc., 4.55%, 11/14/24, Callable 8/14/24 @ 100^		655,444
	340,000	Freeport-McMoRan, Inc., 5.40%, 11/14/34, Callable 5/14/34 @ 100^		331,468

				3,267,878

	Multiline Retail (0.1%):
	640,000	Target Corp., 3.50%, 7/1/24^		664,431
	390,000	Target Corp., 4.00%, 7/1/42^		396,172

				1,060,603

	Multi-Utilities (0.2%):
	155,000	CenterPoint Energy Resources Corp., 6.25%, 2/1/37		196,588
	900,000	DTE Energy Co., Series F, 3.85%, 12/1/23, Callable 9/1/23 @ 100		945,427
	505,000	Duke Energy Carolinas LLC, 6.10%, 6/1/37		656,879
	470,000	Northwest Florida Timber Finance LLC, 4.75%, 3/4/29(a)		475,381

				2,274,275

	Oil, Gas & Consumable Fuels (1.8%):
	2,025,000	Anadarko Petroleum Corp., 6.38%, 9/15/17		2,251,398
	435,000	Anadarko Petroleum Corp., 3.45%, 7/15/24, Callable 4/15/24 @ 100^		424,664
	225,000	Anadarko Petroleum Corp., 4.50%, 7/15/44, Callable 1/15/44 @ 100		218,357
	270,000	Chevron Corp., 2.19%, 11/15/19^		270,999
	175,000	ConocoPhillips Co., 3.35%, 11/15/24, Callable 8/15/24 @ 100^		176,811
	220,000	ConocoPhillips Co., 4.30%, 11/15/44, Callable 5/15/44 @ 100		230,139
	225,000	Continental Resources, Inc., 4.90%, 6/1/44, Callable 12/1/43 @ 100		194,999
	216,000	El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/1/20		244,248
	220,000	El Paso Pipeline Partners Operating Co. LLC, 4.30%, 5/1/24, Callable 2/1/24 @ 100		220,426


Principal Amount			Fair Value
	Corporate Bonds, continued
	Oil, Gas & Consumable Fuels, continued
$	1,390,000	Energy Transfer Partners LP, 6.50%, 2/1/42, Callable 8/1/41 @ 100	$	1,597,737
	500,000	Enterprise Products Operating LLC, 3.90%, 2/15/24, Callable 11/15/23 @ 100		509,244
	370,000	Enterprise Products Operating LLC, 3.75%, 2/15/25, Callable 11/15/24 @ 100		371,409
	200,000	Enterprise Products Operating LLC, 4.85%, 8/15/42, Callable 2/15/42 @ 100^		207,833
	220,000	Enterprise Products Operating LLC, 5.10%, 2/15/45, Callable 8/15/44 @ 100		236,542
	1,415,000	Enterprise Products Operating LLC, Series A, 8.38%, 8/1/66, Callable 8/1/16 @ 100		1,519,356
	530,000	EOG Resources, Inc., 2.45%, 4/1/20, Callable 3/1/20 @ 100		527,251
	165,000	Kinder Morgan Energy Partners LP, 3.95%, 9/1/22, Callable 6/1/22 @ 100		163,608
	60,000	Kinder Morgan Energy Partners LP, 3.50%, 9/1/23, Callable 6/1/23 @ 100^		56,961
	220,000	Kinder Morgan Energy Partners LP, 4.15%, 2/1/24		219,437
	454,000	Kinder Morgan Energy Partners LP, 5.50%, 3/1/44, Callable 9/1/43 @ 100		461,509
	2,435,000	Kinder Morgan Energy Partners LP, 5.40%, 9/1/44, Callable 5/15/24 @ 100^		2,439,988
	685,000	Kinder Morgan, Inc., 4.30%, 6/1/25, Callable 3/1/25 @ 100^		685,319
	375,000	Marathon Petroleum Corp., 4.75%, 9/15/44, Callable 3/15/44 @ 100^		354,152
	515,000	Noble Energy, Inc., 5.25%, 11/15/43, Callable 5/15/43 @ 100		523,007
	1,045,000	Phillips 66, 4.65%, 11/15/34, Callable 5/15/34 @ 100^		1,071,123
	335,000	Plains All American Pipeline LP, 4.90%, 2/15/45, Callable 8/15/44 @ 100		340,443
	480,000	Williams Partners LP, 4.00%, 11/15/21^		481,175
	1,140,000	Williams Partners LP, 3.90%, 1/15/25, Callable 10/15/24 @ 100^		1,095,627

				17,093,762

	Paper & Forest Products (0.1%):
	400,000	Georgia-Pacific LLC, 7.70%, 6/15/15		411,589
	67,000	International Paper Co., 3.65%, 6/15/24, Callable 3/15/24 @ 100^		66,952
	191,000	International Paper Co., 4.80%, 6/15/44, Callable 12/15/43 @ 100^		195,050

				673,591

	Pharmaceuticals (0.7%):
	795,000	Abbvie, Inc., 2.00%, 11/6/18^		792,333
	535,000	Abbvie, Inc., 4.40%, 11/6/42		551,943
	400,000	Bristol-Myers Squibb Co., 4.50%, 3/1/44, Callable 9/1/43 @ 100		437,116
	1,020,000	Merck & Co., Inc., 0.59%, 5/18/18^(b)		1,021,720
	265,000	Mylan, Inc., 5.40%, 11/29/43, Callable 5/29/43 @ 100		294,102
	390,000	Novartis Capital Corp., 4.40%, 5/6/44		437,050


Principal Amount			Fair Value
	Corporate Bonds, continued
	Pharmaceuticals, continued
$	710,000	Pfizer, Inc., 3.40%, 5/15/24^	$	738,668
	400,000	Roche Holding, Inc., 4.00%, 11/28/44^(a)		419,866
	995,000	Watson Pharmaceuticals, Inc., 1.88%, 10/1/17		991,143
	1,174,000	Watson Pharmaceuticals, Inc., 3.25%, 10/1/22, Callable 7/1/22 @ 100		1,143,030

				6,826,971

	Property & Casualty Insurance (0.0%):
	325,000	ACE INA Holdings, Inc., 3.35%, 5/15/24		328,412

	Real Estate Investment Trusts (REITs) (0.7%):
	1,670,000	ARC Properties Operating Partnership LP, 4.60%, 2/6/24, Callable 11/6/23 @ 100		1,540,646
	835,000	Boston Properties LP, 3.85%, 2/1/23, Callable 11/1/22 @ 100		866,794
	380,000	ERP Operating LP, 4.50%, 7/1/44, Callable 1/1/44 @ 100		396,033
	1,225,000	HCP, Inc., 3.88%, 8/15/24, Callable 5/15/24 @ 100		1,244,376
	620,000	Simon Property Group LP, 3.75%, 2/1/24, Callable 11/1/23 @ 100^		651,197
	955,000	Simon Property Group LP, 4.25%, 10/1/44^		988,225
	485,000	UDR, Inc., 3.75%, 7/1/24, Callable 4/1/24 @ 100		488,262

				6,175,533

	Road & Rail (0.2%):
	370,000	Burlington North Santa Fe LLC, 4.45%, 3/15/43, Callable 9/15/42 @ 100		386,556
	445,000	Burlington North Santa Fe LLC, 4.90%, 4/1/44, Callable 10/1/43 @ 100		500,331
	240,000	Union Pacific Corp., 4.85%, 6/15/44, Callable 12/15/43 @ 100^		275,437
	505,000	Union Pacific Railroad Co., Series 14-1, 3.23%, 5/14/26		507,613

				1,669,937

	Software (0.3%):
	1,401,000	Oracle Corp., 3.40%, 7/8/24, Callable 4/8/24 @ 100		1,431,923
	1,040,000	Oracle Corp., 4.30%, 7/8/34, Callable 1/8/34 @ 100		1,113,499

				2,545,422

	Specialty Retail (0.2%):
	215,000	Home Depot, Inc., 4.40%, 3/15/45, Callable 9/15/44 @ 100		234,977
	465,000	Lowe’s Cos., Inc., 4.65%, 4/15/42, Callable 10/15/41 @ 100		517,186
	510,000	Lowe’s Cos., Inc., 5.00%, 9/15/43, Callable 3/15/43 @ 100		596,631
	815,000	Penske Truck Leasing Co. LP, 3.13%, 5/11/15(a)		821,600

				2,170,394

	Technology Hardware, Storage & Peripherals (0.1%):
	860,000	Apple, Inc., 2.85%, 5/6/21		879,745
	410,000	Apple, Inc., 3.45%, 5/6/24		429,378

				1,309,123


Principal Amount			Fair Value
	Corporate Bonds, continued
	Tobacco (0.2%):
$	680,000	Altria Group, Inc., 5.38%, 1/31/44^	$	774,055
	155,000	Philip Morris International, Inc., 4.50%, 3/20/42		163,643
	20,000	Philip Morris International, Inc., 3.88%, 8/21/42		18,988
	370,000	Philip Morris International, Inc., 4.13%, 3/4/43		362,695
	425,000	Philip Morris International, Inc., 4.88%, 11/15/43		473,803
	442,000	Reynolds American, Inc., 6.15%, 9/15/43^		512,575

				2,305,759

	Trading Companies & Distributors (0.1%):
	825,000	GATX Corp., 2.50%, 7/30/19		818,775

	Wireless Telecommunication Services (0.1%):
	535,000	Crown Castle Towers LLC, 6.11%, 1/15/20(a)		614,523

	Total Corporate Bonds (Cost $166,988,271)			170,922,761

	Convertible Preferred Stock(0.1%):
	Banks (0.1%):
	38,500	Wells Fargo & Co., Callable 9/15/23 @ 25		987,525

	Total Convertible Preferred Stock (Cost $986,755)			987,525

	Yankee Dollars (8.2%):
	Banks (3.5%):
	1,965,000	Asian Development Bank, Series G, 0.75%, 1/11/17		1,963,219
	1,045,000	Barclays Bank plc, 2.75%, 11/8/19^		1,038,615
	210,000	Barclays Bank plc, 5.14%, 10/14/20^		225,853
	2,235,000	Barclays Bank plc, 3.75%, 5/15/24		2,303,729
	675,000	BPCE SA, 5.70%, 10/22/23^(a)		724,793
	430,000	BPCE SA, 4.50%, 3/15/25(a)		420,165
	790,000	Caixa Economica Federal, 2.38%, 11/6/17(a)		745,563
	920,000	Credit Agricole SA, 3.88%, 4/15/24(a)		950,555
	710,000	HSBC Holdings plc, 5.25%, 3/14/44^		795,310
	1,115,000	ING Bank NV, 3.75%, 3/7/17(a)		1,166,850
	314,000	ING Bank NV, 5.80%, 9/25/23(a)		348,314
	1,914,000	KFW, 0.50%, 7/15/16		1,911,397
	1,465,000	Kommunalbanken AS, 0.25%, 1/26/15(a)(b)		1,465,041
	1,856,000	Kommunalbanken AS, 0.36%, 10/31/16(a)(b)		1,857,514
	1,110,000	National Bank of Canada, 1.50%, 6/26/15		1,113,953
	805,000	Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV, Series G, 1.50%, 2/12/18(a)		805,657
	1,740,000	Nederlandse Waterschapsbank NV, Series E, 3.00%, 3/17/15(a)		1,749,025
	1,185,000	Nordea Bank AB, 2.38%, 4/4/19(a)		1,195,453
	555,000	Nordea Eiendomskreditt AS, 2.13%, 9/22/16^(a)		565,141
	2,610,000	Oesterreichische Kontrollbank AG, Series G, 1.13%, 7/6/15		2,619,566
	386,000	Oriental Republic of Uruguay, 4.50%, 8/14/24^		405,300
	2,005,000	Royal Bank of Canada, 1.13%, 7/22/16		2,013,676
	2,670,000	Royal Bank of Canada, 2.20%, 9/23/19		2,689,544
	710,000	Royal Bank of Scotland Group plc, 1.88%, 3/31/17		709,438


Principal Amount			Fair Value
	Yankee Dollars, continued
	Banks, continued
$	674,000	Societe Generale SA, 5.00%, 1/17/24(a)	$	677,694
	1,490,000	Westpac Banking Corp., 2.45%, 11/28/16^(a)		1,527,190

				31,988,555

	Capital Markets (0.1%):
	1,355,000	Credit Suisse Guernsey, Ltd., 2.60%, 5/27/16(a)		1,387,340

	Chemicals (0.0%):
	275,000	Agrium, Inc., 5.25%, 1/15/45, Callable 7/15/44 @ 100		297,032

	Diversified Financial Services (0.3%):
	2,190,000	CDP Financial, Inc., 4.40%, 11/25/19(a)		2,411,466

	Energy Equipment & Services (0.1%):
	600,000	Schlumberger Investment SA, 3.30%, 9/14/21, Callable 6/14/21 @ 100(a)		615,811

	Government (0.1%):
	689,000	Province of Manitoba Canada, 3.05%, 5/14/24		714,067

	Hotels, Restaurants & Leisure (0.2%):
	1,595,000	Carnival Corp., 1.20%, 2/5/16		1,594,073

	Insurance (0.0%):
	250,000	AIA Group, Ltd., 4.88%, 3/11/44^(a)		283,113
	185,000	Aon plc, 4.60%, 6/14/44, Callable 3/14/44 @ 100^		192,117
	310,000	Manulife Financial Corp., 3.40%, 9/17/15		315,582

				790,812

	Internet & Catalog Retail (0.1%):
	885,000	Alibaba Group Holding, Ltd., 2.50%, 11/28/19, Callable 10/28/19 @ 100(a)		873,068

	Machinery (0.1%):
	580,000	Ingersoll-Rand Luxembourg Finance SA, 3.55%, 11/1/24, Callable 8/1/24 @ 100		576,464

	Media (0.0%):
	370,000	British Sky Broadcasting Group plc, 3.75%, 9/16/24(a)		372,266

	Metals & Mining (0.1%):
	385,000	BHP Billiton Finance USA, Ltd., 5.00%, 9/30/43		436,406
	848,000	Rio Tinto Finance (USA) plc, 4.13%, 8/21/42, Callable 2/21/42 @ 100^		823,367

				1,259,773

	Multi-National (0.8%):
	1,885,000	African Development Bank, 0.75%, 10/18/16		1,885,285
	1,640,000	FMS Wertmanagement, 0.63%, 4/18/16		1,640,489
	1,415,000	FMS Wertmanagement, 1.13%, 9/5/17		1,414,181
	2,790,000	FMS Wertmanagement, 1.63%, 11/20/18		2,795,027

				7,734,982

	Oil, Gas & Consumable Fuels (1.2%):
	945,000	BP Capital Markets plc, 0.74%, 5/10/18(b)		934,786
	575,000	BP Capital Markets plc, 4.74%, 3/11/21		625,893
	575,000	BP Capital Markets plc, 2.75%, 5/10/23		537,697
	555,000	Ecopetrol SA, 4.13%, 1/16/25		527,250


Principal Amount			Fair Value
	Yankee Dollars, continued
	Oil, Gas & Consumable Fuels, continued
$	525,000	Ensco plc, 4.50%, 10/1/24, Callable 7/1/24 @ 100^	$	510,288
	774,000	Petrobras Global Finance BV, 6.25%, 3/17/24^		736,492
	1,080,000	Petrobras International Finance Co., 3.88%, 1/27/16		1,059,803
	50,000	Petroleos Mexicanos, 8.00%, 5/3/19		59,125
	107,000	Petroleos Mexicanos, 6.00%, 3/5/20		120,108
	2,923,000	Petroleos Mexicanos, 4.88%, 1/24/22		3,061,579
	270,000	Petroleos Mexicanos, 4.88%, 1/18/24		280,530
	295,000	Shell International Finance BV, 4.55%, 8/12/43		322,721
	800,000	Statoil ASA, 2.45%, 1/17/23		763,067
	1,100,000	Statoil ASA, 3.70%, 3/1/24		1,138,869
	175,000	Transocean, Inc., 3.80%, 10/15/22, Callable 7/15/22 @ 100^		141,807

				10,820,015

	Personal Products (0.2%):
	690,000	GlaxoSmithKline Capital plc, 2.85%, 5/8/22		690,037
	670,000	Takeda Pharmaceutical Co., Ltd., 1.63%, 3/17/17(a)		672,075

				1,362,112

	Pharmaceuticals (0.1%):
	1,115,000	Actavis Funding SCS, 3.85%, 6/15/24, Callable 3/15/24 @ 100		1,120,696
	445,000	Actavis Funding SCS, 4.85%, 6/15/44, Callable 12/15/43 @ 100		451,558

				1,572,254

	Sovereign Bonds (1.1%):
	620,000	Canada Government, 1.63%, 2/27/19		621,897
	1,349,000	Federal Republic of Brazil, 4.88%, 1/22/21^		1,433,313
	1,070,000	Federal Republic of Brazil, 2.63%, 1/5/23		973,700
	2,811,000	Federal Republic of Brazil, 4.25%, 1/7/25^		2,810,999
	1,270,000	Republic of Colombia, 4.00%, 2/26/24		1,298,575
	430,000	Republic of South Africa, 5.38%, 7/24/44		454,188
	262,000	United Mexican States, 3.50%, 1/21/21		267,502
	1,826,000	United Mexican States, 3.63%, 3/15/22^		1,865,258
	562,000	United Mexican States, 4.00%, 10/2/23		583,075
	1,519,000	United Mexican States, 3.60%, 1/30/25		1,513,684

				11,822,191

	Wireless Telecommunication Services (0.2%):
	1,296,000	Vodafone Group plc, 2.95%, 2/19/23^		1,249,187
	74,000	Vodafone Group plc, 6.15%, 2/27/37		89,291
	555,000	Vodafone Group plc, 4.38%, 2/19/43		540,896

				1,879,374

	Total Yankee Dollars (Cost $77,568,042)			78,071,655

	Municipal Bonds (1.0%):
	California (0.1%):
	700,000	California State, GO, 5.00%, 9/1/42, Callable 9/1/22 @ 100		796,607
	360,000	California State Health Facilities Financing Authority Revenue, Series A, 5.00%, 8/15/52, Callable 8/15/23 @ 100		402,379

				1,198,986


Principal Amount			Fair Value
	Municipal Bonds, continued
	Illinois (0.2%):
	1,320,000	Illinois State, GO, 5.50%, 7/1/24, Callable 7/1/23 @ 100		1,529,180

	Nevada (0.1%):
	1,100,000	Las Vegas Valley Nevada Water District, GO, 5.00%, 6/1/39, Callable 12/1/24 @ 100		1,268,894

	Massachusetts (0.1%):
	450,000	Massachusetts State School Building Authority Sales Tax Revenue, Series B, 5.00%, 10/15/41, Callable 10/15/21 @ 100		512,177

	Missouri (0.1%):
	460,000	Metropolitan Saint Louis Sewer District West Water System Revenue, Series A, 5.00%, 5/1/42, Callable 5/1/22 @ 100		523,600

	New Jersey (0.2%):
	2,005,000	New Jersey State Transportation Trust Fund Authority Revenue, Series AA, 5.00%, 6/15/36, Callable 6/15/23 @ 100		2,204,677
	420,000	New Jersey State Health Care Facilities Financing Authority Revenue, 5.00%, 7/1/44		470,119

				2,674,796

	New York (0.2%):
	895,000	New York State Urban Development Corp. Revenue, Series E, 5.00%, 3/15/24, Callable 3/15/23 @ 100		1,081,885
	670,000	New York City Municipal Finance Authority Water & Sewer System Revenue, Series EE, 5.00%, 6/15/47, Callable 6/15/23 @ 100		753,308

				1,835,193

	Total Municipal Bonds (Cost $9,173,394)			9,542,826

	U.S. Government Agency Mortgages (36.0%):
	Federal Farm Credit Bank (0.2%)
	2,120,000	2.35%, 4/24/23, Callable 1/15/15 @ 100		2,088,713

	Federal Home Loan Mortgage Corporation (4.6%)
	1,299,000	1.00%, 9/27/17		1,295,148
	1,135,327	Class BW, Series 3738, 3.50%, 10/15/28		1,179,183
	591,000	4.47%, 9/15/29(c)		365,866
	1,694,000	4.65%, 12/17/29(c)		1,042,559
	197,000	4.74%, 3/15/31(c)		117,017
	190,000	6.75%, 3/15/31		285,651
	160,592	5.00%, 7/1/35, Pool #G01840		177,901
	213,025	5.00%, 7/1/35, Pool #G01838		235,972
	490,824	6.00%, 4/1/39, Pool #G07613		558,805
	92,302	4.00%, 10/1/40, Pool #A95923		99,356
	94,649	4.00%, 11/1/40, Pool #A94779		101,874
	95,406	4.00%, 11/1/40, Pool #A95144		102,700
	90,260	4.00%, 11/1/40, Pool #A94977		97,156
	139,197	3.13%, 3/1/41, Pool #1B8062(b)		145,638
	1,951,766	5.50%, 6/1/41, Pool #G07553		2,181,885
	180,120	4.00%, 10/1/41, Pool #Q04022		193,859
	87,937	4.00%, 10/1/41, Pool #Q03841		94,591
	347,693	5.00%, 10/1/41, Pool #G07642		384,712
	1,586,307	Class BU, Series 4150, 4.00%, 2/15/42		1,679,780
	543,485	3.50%, 4/1/42, Pool #C03811		567,842


Principal Amount			Fair Value
	U.S. Government Agency Mortgages, continued
	Federal Home Loan Mortgage Corporation, continued
$	367,386	3.50%, 4/1/42, Pool #C03805	$	383,419
	296,865	2.03%, 7/1/42, Pool #2B0646(b)		306,836
	98,765	3.50%, 8/1/42, Pool #Q10031		103,098
	583,304	3.50%, 11/1/42, Pool #Q12841		607,606
	562,483	3.00%, 1/1/43, Pool #Q14866		569,351
	97,142	3.50%, 2/1/43, Pool #Q15442		101,633
	655,087	3.00%, 3/1/43, Pool #Q16567		663,015
	373,038	3.00%, 3/1/43, Pool #Q16403		377,625
	545,769	3.00%, 3/1/43, Pool #Q16673		552,314
	179,926	3.00%, 4/1/43, Pool #Q17095		182,238
	1,026,750	3.50%, 7/1/43, Pool #Q20262		1,071,637
	377,807	3.50%, 7/1/43, Pool #Q20206		394,791
	3,727,697	3.00%, 7/1/43, Pool #V80169		3,771,412
	378,096	3.50%, 7/1/43, Pool #Q20021		395,624
	854,640	3.50%, 8/1/43, Pool #V80355		894,175
	2,050,779	3.00%, 8/1/43, Pool #G07550		2,075,582
	168,519	4.00%, 9/1/43, Pool #Q21579		181,643
	740,096	3.50%, 12/1/43, Pool #G07591		772,401
	48,970	3.50%, 1/1/44, Pool #Q24368		51,175
	700,000	5.50%, 1/15/44		781,977
	1,100,000	3.50%, 1/15/44		1,143,742
	4,800,000	4.50%, 1/15/44		5,202,563
	200,000	5.00%, 1/15/44		220,695
	37,441	3.50%, 4/1/44, Pool #Q25812		39,128
	34,160	3.50%, 5/1/44, Pool #Q26452		35,699
	54,421	3.50%, 5/1/44, Pool #Q26218		56,923
	23,800	3.50%, 5/1/44, Pool #Q25988		24,865
	98,021	3.50%, 5/1/44, Pool #Q26362		102,421
	47,875	3.50%, 6/1/44, Pool #Q26707		50,029
	196,041	3.50%, 7/1/44, Pool #Q27230		204,626
	41,768	3.50%, 7/1/44, Pool #Q27319		43,701
	196,480	3.50%, 7/1/44, Pool #Q27351		205,082
	1,061,586	4.00%, 8/1/44, Pool #G07786		1,144,075
	197,216	3.50%, 8/1/44, Pool #Q27843		206,100
	88,878	3.50%, 9/1/44, Pool #Q28604		92,993
	195,123	3.50%, 9/1/44, Pool #Q28605		203,885
	199,137	3.50%, 9/1/44, Pool #Q28268		207,864
	9,100,000	4.00%, 1/15/45		9,700,031

				44,029,469

	Federal National Mortgage Association (18.3%)
	192,718	4.00%, 7/1/19, Pool #AE0968		204,180
	24,089	Class NT, Series 2009-70, 4.00%, 8/25/19		24,950
	388,204	4.00%, 7/1/24, Pool #AL1938		414,769
	436,856	5.50%, 7/1/25, Pool #AE0096		488,161
	3,385,115	3.50%, 12/1/25, Pool# AH1359		3,598,979
	505,474	4.00%, 9/1/26, Pool #AL2683		541,396
	5,142,717	4.00%, 5/1/27, Pool# AL5956		5,484,623
	6,040,863	2.50%, 5/1/28, Pool #310125		6,163,363
	2,982,911	3.50%, 9/1/28, Pool #AL4245		3,171,679
	926,631	3.50%, 10/1/28, Pool #AV0198		985,145
	1,187,619	3.50%, 11/1/28, Pool #AV1360		1,262,502
	844,390	Class CD, Series 2011-56, 3.50%, 1/25/29		871,023
	4,900,000	2.50%, 1/25/29		4,988,813
	829,481	3.50%, 2/1/29, Pool #AL4922		881,852
	965,852	3.00%, 4/1/29, Pool #AW0937		1,007,359


Principal Amount			Fair Value
	U.S. Government Agency Mortgages, continued
	Federal National Mortgage Association, continued
$	677,441	3.00%, 5/1/29, Pool #AW2544	$	707,166
	1,255,813	3.00%, 6/1/29, Pool #AS2676		1,309,908
	874,225	3.00%, 9/1/29, Pool #AS3220		911,954
	614,885	3.50%, 9/1/29, Pool #AX0105		653,957
	4,000,000	3.50%, 12/1/29, Pool# AL6161		4,230,849
	2,605,000	5.67%, 1/15/30(c)		1,593,880
	1,700,000	2.00%, 1/25/30		1,693,095
	100,000	4.50%, 1/25/30		105,070
	6,200,000	3.00%, 1/25/30		6,444,367
	1,100,000	5.00%, 1/25/30		1,159,159
	1,200,000	5.50%, 1/25/30		1,267,687
	3,901,000	5.20%, 5/15/30(c)		2,372,245
	382,955	5.50%, 1/1/33, Pool #676661		431,720
	381,648	5.00%, 2/1/33, Pool #AB0107		423,019
	256,418	5.50%, 5/1/33, Pool #555424		289,038
	2,012,115	5.00%, 9/1/33, Pool #741878		2,228,875
	175,078	5.00%, 7/1/34, Pool #725589		193,868
	1,580,239	5.00%, 2/1/35, Pool #AB0117		1,753,488
	2,838,363	5.00%, 2/1/35, Pool #931574		3,143,356
	2,524,394	5.00%, 2/1/35, Pool #AB0112		2,795,924
	598,199	5.50%, 2/1/35, Pool #735989		674,041
	94,443	5.00%, 2/1/35, Pool #AB0108		104,575
	49,265	6.00%, 4/1/35, Pool #735504		56,317
	2,600,773	5.00%, 4/1/36, Pool #AB0111		2,880,401
	1,390,395	5.50%, 9/1/36, Pool #995113		1,563,686
	124,886	5.50%, 2/1/38, Pool #961545		139,551
	50,529	6.00%, 3/1/38, Pool #889529		58,062
	157,470	6.00%, 5/1/38, Pool #889466		181,039
	374,875	5.50%, 5/1/38, Pool #889692		418,896
	274,095	5.50%, 5/1/38, Pool #889441		306,282
	262,532	5.50%, 6/1/38, Pool #995018		293,361
	72,304	5.50%, 9/1/38, Pool #889995		80,795
	177,243	6.00%, 10/1/38, Pool #889983		201,117
	188,146	5.50%, 10/1/39, Pool #AD0362		211,517
	182,839	5.50%, 12/1/39, Pool #AD0571		206,119
	1,149,728	6.00%, 4/1/40, Pool #AL4141		1,303,739
	231,203	6.50%, 5/1/40, Pool #AL1704		263,300
	571,493	4.50%, 7/1/40, Pool #AD7127		620,661
	1,589,891	4.50%, 8/1/40, Pool #AD8036		1,727,532
	126,442	6.00%, 9/1/40, Pool #AE0823		143,460
	2,680,000	Class CY, Series 2010-136, 4.00%, 12/25/40		2,888,048
	537,643	4.00%, 1/1/41, Pool #AE0835		579,794
	169,559	2.90%, 2/1/41, Pool #AH6958(b)		179,014
	1,600,328	5.00%, 4/1/41, Pool #AH6283		1,774,447
	2,087,810	5.00%, 4/1/41, Pool #AH6176		2,314,285
	254,952	6.00%, 6/1/41, Pool #AL4142		289,411
	327,124	3.24%, 7/1/41, Pool #AL0533(b)		349,751
	178,523	4.00%, 12/1/41, Pool #AJ4188		192,592
	2,369,714	5.00%, 1/1/42, Pool #AX5297		2,626,706
	97,107	3.50%, 1/1/42, Pool #AK2073		101,680
	49,101	3.50%, 5/1/42, Pool #AO3128		51,363
	171,006	4.00%, 5/1/42, Pool #AT6144		184,777
	45,019	3.50%, 5/1/42, Pool #AO3360		47,095
	83,241	3.50%, 6/1/42, Pool #AL2168		87,186
	82,196	3.50%, 6/1/42, Pool #AO3107		86,075


Principal Amount			Fair Value
	U.S. Government Agency Mortgages, continued
	Federal National Mortgage Association, continued
$	365,581	2.02%, 7/1/42, Pool #AP0006(b)	$	379,538
	107,202	2.29%, 7/1/42, Pool #AO6482(b)		111,000
	80,116	3.50%, 7/1/42, Pool #AO8011		83,814
	2,404,272	4.00%, 7/1/42, Pool #AL4244		2,597,875
	3,884,112	4.50%, 7/1/42, Pool #AL6003		4,215,054
	97,411	3.50%, 10/1/42, Pool #AQ0393		102,163
	337,108	4.00%, 11/1/42, Pool #AL5227		363,625
	321,770	3.00%, 12/1/42, Pool #AB7425		326,150
	384,138	3.00%, 12/1/42, Pool #AB7271		389,384
	964,818	3.00%, 1/1/43, Pool #AB7497		977,863
	975,644	3.00%, 1/1/43, Pool #AB7458		988,969
	662,335	3.00%, 1/1/43, Pool #AB7755		671,361
	1,048,748	3.00%, 1/1/43, Pool #AB7567		1,063,050
	1,341,982	3.00%, 2/1/43, Pool #AL3162		1,361,117
	362,425	3.00%, 2/1/43, Pool #AB8558		367,591
	364,672	3.00%, 2/1/43, Pool #AB7762		369,887
	482,846	3.50%, 2/1/43, Pool #AL2935		505,650
	711,833	3.00%, 3/1/43, Pool #AR9194		721,998
	263,529	4.00%, 3/1/43, Pool #AL3377		284,400
	665,511	3.00%, 3/1/43, Pool #AB8701		674,600
	260,549	3.00%, 3/1/43, Pool #AR9218		264,000
	85,800	3.00%, 3/1/43, Pool #AB8712		86,964
	235,148	3.00%, 3/1/43, Pool #AB8830		238,351
	183,329	3.00%, 3/1/43, Pool #AR7576		185,834
	147,126	3.00%, 3/1/43, Pool #AR7568		149,034
	279,562	3.00%, 4/1/43, Pool #AR8630		283,228
	622,884	3.00%, 4/1/43, Pool #AB9016		631,377
	115,207	3.00%, 4/1/43, Pool #AT2037		116,727
	186,774	3.00%, 4/1/43, Pool #AB8923		189,220
	178,157	3.00%, 4/1/43, Pool #AB8924		180,591
	186,583	3.00%, 4/1/43, Pool #AT2043		189,136
	87,596	3.00%, 4/1/43, Pool #AB9033		88,792
	342,501	3.00%, 4/1/43, Pool #AT2040		347,043
	714,967	3.00%, 5/1/43, Pool #AT2719		725,168
	322,825	3.00%, 5/1/43, Pool #AB9462		327,643
	2,615,223	3.00%, 5/1/43, Pool #AT5974		2,652,494
	266,211	3.00%, 5/1/43, Pool #AT6654		270,012
	272,882	3.00%, 5/1/43, Pool #AL3759		276,776
	1,108,521	4.00%, 5/1/43, Pool #AL3692		1,195,921
	447,943	3.00%, 5/1/43, Pool #AB9173		454,341
	382,214	3.00%, 6/1/43, Pool #AB9662		387,912
	24,301	3.00%, 6/1/43, Pool #AB9564		24,662
	124,941	3.00%, 6/1/43, Pool #AT7676		126,719
	486,361	3.50%, 6/1/43, Pool #AR8582		508,834
	24,157	4.00%, 7/1/43, Pool #AU0878		26,066
	1,545,652	3.50%, 7/1/43, Pool #AU1633		1,619,194
	991,798	3.50%, 7/1/43, Pool #AT7940		1,040,148
	346,030	3.50%, 7/1/43, Pool #AT8464		362,485
	2,825,644	3.50%, 7/1/43, Pool #AL4014		2,959,789
	319,255	3.50%, 7/1/43, Pool #AT4327		334,869
	2,742,456	3.50%, 7/1/43, Pool #AL4009		2,876,373
	820,202	3.50%, 7/1/43, Pool #AL4010		858,882
	814,695	4.00%, 8/1/43, Pool #AL5096		878,628
	2,751,930	4.50%, 8/1/43, Pool #AL5097		2,988,360
	187,335	3.50%, 8/1/43, Pool #AU0613		196,169


Principal Amount			Fair Value
	U.S. Government Agency Mortgages, continued
	Federal National Mortgage Association, continued
$	92,580	3.50%, 8/1/43, Pool #AU3270	$	96,960
	22,583	3.50%, 8/1/43, Pool #AT7333		23,652
	187,139	3.50%, 8/1/43, Pool #AU0570		195,973
	22,295	3.50%, 8/1/43, Pool #AU3032		23,350
	920,642	3.50%, 8/1/43, Pool #AS0209		964,137
	94,690	3.50%, 8/1/43, Pool #AU3267		99,298
	35,906	3.50%, 9/1/43, Pool #AT7267		37,616
	40,308	3.50%, 10/1/43, Pool #AU7247		42,278
	1,819,809	4.00%, 11/1/43, Pool #890567		1,965,793
	313,584	4.00%, 12/1/43, Pool #AS1200		338,368
	943,221	3.50%, 12/1/43, Pool #AL4682		989,285
	175,413	3.50%, 1/1/44, Pool #AS1539		183,760
	2,677,409	2.91%, 1/1/44, Pool #AV7743(b)		2,765,231
	166,442	3.50%, 1/1/44, Pool #AS1703		174,319
	108,312	3.50%, 1/1/44, Pool #AS1453		113,577
	380,405	4.00%, 1/1/44, Pool #AV2356		411,147
	92,914	4.00%, 1/1/44, Pool #AS1460		100,321
	4,852,156	4.00%, 1/1/44, Pool #AL4685		5,234,671
	600,000	5.50%, 1/25/44		671,156
	2,300,000	6.00%, 1/25/44		2,608,254
	1,200,000	2.50%, 1/25/44		1,172,156
	10,400,000	4.50%, 1/25/44		11,288,876
	335,411	4.00%, 2/1/44, Pool #AL4915		362,425
	846,248	4.00%, 2/1/44, Pool #AL4840		914,606
	1,040,453	4.00%, 2/1/44, Pool #AS1773		1,124,458
	325,047	4.00%, 5/1/44, Pool #AS2316		350,721
	42,612	4.00%, 5/1/44, Pool #AV8073		45,975
	118,403	4.00%, 5/1/44, Pool #AW1006		127,736
	47,481	3.50%, 6/1/44, Pool #AW6405		49,742
	23,087	3.50%, 6/1/44, Pool #AS2591		24,180
	34,679	3.50%, 6/1/44, Pool #AV8080		36,331
	63,928	4.00%, 7/1/44, Pool #AV8811		68,973
	24,809	4.00%, 7/1/44, Pool #AX0365		26,769
	52,341	3.50%, 7/1/44, Pool #AW9544		54,834
	36,447	4.00%, 7/1/44, Pool #AW4579		39,324
	98,168	3.50%, 8/1/44, Pool #AW8558		102,726
	99,692	3.50%, 8/1/44, Pool #AW7923		104,324
	26,435	3.50%, 8/1/44, Pool #AW4287		27,695
	481,731	4.00%, 8/1/44, Pool #AL5735		519,792
	363,878	3.50%, 8/1/44, Pool #AS3031		381,214
	25,299	4.00%, 8/1/44, Pool #AX1260		27,297
	51,668	4.00%, 8/1/44, Pool #AX1378		55,751
	225,415	3.50%, 8/1/44, Pool #AS3034		236,440
	70,496	4.00%, 8/1/44, Pool #AV8823		76,068
	24,855	3.50%, 8/1/44, Pool #AW9207		26,072
	1,488,951	3.50%, 9/1/44, Pool #AX0832		1,558,115
	2,191,338	4.00%, 9/1/44, Pool #AS3259		2,368,527
	1,191,794	4.00%, 9/1/44, Pool# AL6051		1,273,450
	45,193	4.00%, 9/1/44, Pool #AV8836		48,751
	25,103	4.00%, 9/1/44, Pool #AX4057		27,088
	132,821	4.00%, 9/1/44, Pool #AX3209		143,332
	108,919	3.50%, 9/1/44, Pool #AX0830		114,251
	24,895	4.00%, 9/1/44, Pool #AX4214		26,864
	31,472	4.00%, 9/1/44, Pool #AX0584		33,924
	55,060	4.00%, 9/1/44, Pool #AW9087		59,408


Principal Amount			Fair Value
	U.S. Government Agency Mortgages, continued
	Federal National Mortgage Association, continued
$	49,782	3.50%, 9/1/44, Pool #AW8191	$	52,157
	49,302	3.50%, 9/1/44, Pool #AW8188		51,709
	99,400	3.50%, 9/1/44, Pool #AX0983		104,015
	67,799	4.00%, 9/1/44, Pool #AW8760		73,156
	30,996	4.00%, 9/1/44, Pool #AW8776		33,445
	123,765	4.00%, 10/1/44, Pool #AX3063		133,552
	36,566	4.00%, 10/1/44, Pool #AX4698		39,457
	25,341	4.00%, 10/1/44, Pool #AX4717		27,346
	27,457	4.00%, 10/1/44, Pool #AX5017		29,630
	305,990	4.00%, 10/1/44, Pool #AL5987		330,210
	24,933	4.00%, 10/1/44, Pool #AW8061		26,907
	24,933	4.00%, 10/1/44, Pool #AW9115		26,903
	49,642	4.00%, 10/1/44, Pool #AV8847		53,571
	25,088	4.00%, 10/1/44, Pool #AX1180		27,074
	170,826	4.00%, 10/1/44, Pool# AL5986		184,665
	124,153	4.00%, 11/1/44, Pool #AX4403		134,000
	539,018	4.00%, 11/1/44, Pool #AX2569		581,766
	54,322	4.00%, 11/1/44, Pool #AW8073		58,631
	260,994	4.00%, 11/1/44, Pool #AV8862		281,693
	301,816	4.00%, 11/1/44, Pool #AS3698		325,753
	25,894	4.00%, 11/1/44, Pool #AX9361		27,948
	73,130	4.00%, 11/1/44, Pool #AX6852		79,067
	239,373	4.00%, 11/1/44, Pool #AS3696		258,358
	77,023	4.00%, 11/1/44, Pool #AX6014		83,131
	25,139	4.00%, 11/1/44, Pool #AX4776		27,133
	307,251	4.00%, 11/1/44, Pool #AX6846		331,619
	183,429	4.00%, 11/1/44, Pool #AS3684		197,976
	460,018	4.00%, 12/1/44, Pool #AS3949		497,361
	28,411	4.00%, 12/1/44, Pool #AX9746		30,664
	159,908	4.00%, 12/1/44, Pool #AX6909		172,590
	981,814	4.00%, 12/1/44, Pool #AS3945		1,058,758
	38,927	4.00%, 12/1/44, Pool #AX6976		42,014
	1,250,432	3.50%, 12/31/49, Pool #AL4543		1,308,095

				174,208,620

	Government National Mortgage Association (12.9%)
	54,711	4.50%, 9/15/33, Pool #615516		60,306
	194,881	5.00%, 12/15/33, Pool #783571		216,738
	56,867	6.50%, 8/20/38, Pool #4223		64,336
	71,512	6.50%, 10/15/38, Pool #673213		81,603
	32,541	6.50%, 11/20/38, Pool #4292		36,870
	63,406	6.50%, 12/15/38, Pool #782510		72,353
	614,951	5.00%, 1/15/39, Pool #782557		680,615
	430,367	5.00%, 4/15/39, Pool #782619		476,195
	43,087	5.00%, 6/15/39, Pool #782696		48,065
	349,839	5.00%, 10/20/39, Pool #4559		390,627
	100,814	4.50%, 1/15/40, Pool #728627		110,420
	260,607	5.00%, 5/15/40, Pool #782958		289,477
	283,754	4.50%, 7/15/40, Pool #745793		310,703
	50,089	4.00%, 9/20/40, Pool #G24800		53,880
	474,192	4.50%, 10/15/40, Pool #783609		519,478
	93,260	4.00%, 10/20/40, Pool #G24833		100,322
	1,299,440	4.00%, 12/20/40, Pool #G24882		1,398,087
	979,925	4.00%, 1/20/41, Pool #004922		1,054,425
	139,590	4.50%, 2/15/41, Pool #738019		152,752
	16,614	4.00%, 2/20/41, Pool #4945		17,875


Principal Amount			Fair Value
	U.S. Government Agency Mortgages, continued
	Government National Mortgage Association, continued
$	25,391	5.00%, 4/20/41, Pool #5018	$	28,333
	425,270	4.50%, 6/20/41, Pool #783590		466,209
	55,491	5.00%, 6/20/41, Pool #5083		61,920
	955,902	4.50%, 7/20/41, Pool #5115		1,047,736
	283,632	4.50%, 7/20/41, Pool #783584		310,881
	28,362	5.00%, 7/20/41, Pool #5116		31,647
	323,146	4.50%, 11/15/41, Pool #783610		353,976
	188,926	3.50%, 10/20/42, Pool #MA0462		198,632
	188,975	3.50%, 1/20/43, Pool #MA0699		198,684
	4,512,865	3.50%, 4/20/43, Pool #MA0934		4,743,792
	93,338	4.00%, 7/20/43, Pool #MA1158		100,183
	3,300,000	4.50%, 1/20/44		3,605,637
	57,095	4.00%, 8/20/44, Pool #AJ2723		61,762
	28,489	4.00%, 8/20/44, Pool #AJ4687		30,818
	78,246	4.00%, 8/20/44, Pool #AI4167		84,641
	24,827	4.00%, 8/20/44, Pool #AI4166		26,988
	37,980,993	4.00%, 10/20/44, Pool #MA2304		40,805,643
	23,779,384	3.50%, 10/20/44, Pool #MA2303		24,998,457
	11,476,147	4.00%, 11/20/44, Pool #MA2372		12,330,609
	7,500,000	4.00%, 12/20/44, Pool #MA2446		8,054,297
	2,800,000	4.00%, 1/15/45		3,003,842
	2,100,000	3.50%, 1/15/45		2,204,344
	500,000	5.00%, 1/15/45		550,654
	400,000	4.50%, 1/15/45		437,047
	1,100,000	3.00%, 2/15/45		1,124,888
	10,900,000	3.00%, 2/20/45		11,146,613

				122,143,360

	Total U.S. Government Agency Mortgages (Cost $339,010,007)			342,470,162

	U.S. Treasury Obligations (24.1%):
	U.S. Treasury Bonds (2.1%)
	2,600,000	4.75%, 2/15/37^		3,586,578
	4,080,000	3.75%, 8/15/41^		4,917,355
	890,000	2.88%, 5/15/43		910,303
	350,000	3.75%, 11/15/43		420,738
	8,745,200	3.13%, 8/15/44^		9,414,750
	620,000	3.00%, 11/15/44		651,582

				19,901,306

	U.S. Treasury Inflation Index Bonds (0.4%)
	1,535,000	2.38%, 1/15/25		2,270,050
	1,705,000	1.38%, 2/15/44		1,965,935

				4,235,985

	U.S. Treasury Inflation Index Notes (3.3%)
	21,050,000	0.13%, 4/15/19		21,094,785
	10,354,647	0.13%, 7/15/24		9,971,513

				31,066,298

	U.S. Treasury Notes (18.3%)
	11,250,000	0.88%, 8/15/17		11,222,753
	1,665,000	0.88%, 10/15/17^		1,658,626
	4,170,000	0.63%, 11/30/17		4,116,574
	73,540,000	1.00%, 12/15/17^		73,367,621
	4,390,000	2.63%, 1/31/18		4,584,464
	5,910,000	0.75%, 2/28/18		5,828,738


Shares or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (17.4%):
$	165,341,312	Allianz Variable Insurance Products Securities Lending Collateral Trust(d)	$	165,341,312

	Total Securities Held as Collateral for Securities on Loan (Cost $165,341,312)			165,341,312

	Unaffiliated Investment Company (5.4%):
	51,423,686	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(c)		51,423,686

	Total Unaffiliated Investment Company (Cost $51,423,686)			51,423,686

	Total Investment Securities (Cost $1,183,858,347)(e) — 125.7%			1,193,626,443
	Net other assets (liabilities) — (25.7)%			(244,200,680	)

	Net Assets — 100.0%		$	949,425,763


Security Description	Coupon Rate	Maturity Date	Par Amount			Proceeds Received			Fair Value			Unrealized Appreciation/ Deprecation
Federal Home Loan Mortgage Corporation	3.00%	1/15/44	$	(5,200,000	)	$	(5,204,062	)	$	(5,252,812	)	$	(48,750	)
Federal National Mortgage Association	4.00%	1/25/45		(15,075,000	)		(16,057,217	)		(16,088,853	)		(31,636	)
Federal National Mortgage Association	5.00%	1/25/45		(5,600,000	)		(6,192,723	)		(6,187,016	)		5,707
Federal National Mortgage Association	3.00%	1/25/45		(3,875,000	)		(3,880,450	)		(3,919,805	)		(39,355	)
Federal National Mortgage Association	3.50%	1/25/30		(9,400,000	)		(9,920,373	)		(9,930,218	)		(9,845	)
Federal National Mortgage Association	3.50%	1/25/45		(13,667,500	)		(14,131,981	)		(14,247,303	)		(115,322	)
Government National Mortgage Association	4.00%	1/20/45		(52,600,000	)		(56,241,750	)		(56,396,447	)		(154,697	)
Government National Mortgage Association	3.50%	1/20/45		(18,600,000	)		(19,394,656	)		(19,524,187	)		(129,531	)

Total						$	(131,023,212	)	$	(131,546,641	)	$	(523,429	)

At December 31, 2014, the Fund’s open forward currency contracts were as follows:


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
European Euro	JPMorgan Chase	1/21/15		317,553	$	405,150	$	384,291	$	20,859

Total					$	405,150	$	384,291	$	20,859

Long Contracts:
European Euro	Goldman Sachs	1/21/15		29,000	$	36,434	$	35,095	$	(1,339	)
European Euro	JPMorgan Chase	1/21/15		30,000		37,310		36,305		(1,005	)

Total					$	73,744	$	71,400	$	(2,344	)

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	1,183,858,347

Investment securities, at value*	$	1,193,626,443
Cash		6,924
Interest and dividends receivable		4,172,663
Foreign currency, at value (cost $83,286)		89,656
Unrealized appreciation on forward currency contracts		20,859
Receivable for investments sold		135,809,401
Receivable for variation margin on futures contracts		118,937
Prepaid expenses		7,697

Total Assets		1,333,852,580

Liabilities:
Unrealized depreciation on forward currency contracts		2,344
Payable for investments purchased		86,911,850
Payable for capital shares redeemed		82,392
Payable for collateral received on loaned securities		165,341,312
Securities sold short (Proceeds received $131,023,212)		131,546,641
Payable for variation margin on futures contracts		9,195
Manager fees payable		279,912
Administration fees payable		26,084
Distribution fees payable		199,938
Custodian fees payable		7,111
Administrative and compliance services fees payable		1,881
Trustee fees payable		38
Other accrued liabilities		18,119

Total Liabilities		384,426,817

Net Assets	$	949,425,763

Net Assets Consist of:
Capital	$	918,256,923
Accumulated net investment income/(loss)		14,170,123
Accumulated net realized gains/(losses) from investment transactions		7,079,621
Net unrealized appreciation/(depreciation) on investments		9,919,096

Net Assets	$	949,425,763

Shares of beneficial interest (unlimited number of shares authorized, no par value)		85,312,707
Net Asset Value (offering and redemption price per share)	$	11.13

*	Includes securities on loan of $161,434,424.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Interest	$	18,539,161
Dividends		43,372
Income from securities lending		193,354

Total Investment Income		18,775,887

Expenses:
Manager fees		3,063,876
Administration fees		305,141
Distribution fees		2,188,488
Custodian fees		37,834
Administrative and compliance services fees		10,983
Trustee fees		42,035
Professional fees		47,436
Shareholder reports		10,046
Other expenses		20,128

Total expenses		5,725,967

Net Investment Income/(Loss)		13,049,920

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		14,262,823
Net realized gains/(losses) on futures contracts		2,763,411
Net realized gains/(losses) on forward currency contracts		20,700
Change in net unrealized appreciation/depreciation on investments		15,133,180

Net Realized/Unrealized Gains/(Losses) on Investments		32,180,114

Change in Net Assets Resulting From Operations	$	45,230,034

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Enhanced Bond Index Fund (the “Fund”), and 30 are presented in separate reports.

The Fund may purchase securities on a when-issued basis. When-issued securities are securities purchased for delivery beyond the normal settlement date at a stated price and yield and thereby involve risk that the yield obtained in the transaction will be less than that available in the market when the delivery takes place. A Fund will not pay for such securities or start earning interest on them until they are received. When a Fund agrees to purchase securities on a when-issued basis, the Fund will segregate or designate cash or liquid assets equal to the amount of the commitment. Securities purchased on a when-issued basis are recorded as an asset and are subject to changes in the value based upon changes in the general level of interest rates. A Fund may sell when-issued securities before they are delivered, which may result in a capital gain or loss.

The Fund may engage in short sales against the box (i.e., where the Fund owns or has an unconditional right to acquire at no additional cost a security substantially similar to the security sold short) for hedging purposes to limit exposure to a possible market decline in the value of its portfolio securities. In a short sale, the Fund sells a borrowed security and has a corresponding obligation to the lender to return the identical security. The Fund may also incur an interest expense if a security that has been sold short has an interest payment. When a Fund engages in a short sale, the Fund records a liability for securities sold short and records an asset equal to the proceeds received. The amount of the liability is subsequently marked to market to reflect the market value of the securities sold short. To borrow the security, a Fund also may be required to pay a premium, which would increase the cost of the security sold.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $19,271 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

All open derivative positions at period end are reflected on the Fund’s Schedule of Portfolio Investments. The following is a description of the derivative instruments utilized by the Fund, including the primary underlying risk exposures related to each instrument type.

During the year ended December 31, 2014, the Fund entered into forward currency contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or the seller, is the unrealized appreciation of the contract. The forward currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The contract amount of forward currency contracts outstanding was $0.5 million as of December 31, 2014. The monthly average amount for these contracts was $0.5 million for the year ended December 31, 2014.

During the year ended December 31, 2014, the Fund used futures contracts to provide market exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $143.3 million as of December 31, 2014. The monthly average notional amount for these contracts was $70.5 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Fund is generally subject to master netting agreements that allow for amounts owed between the Fund and the counterparty to be netted. The party that has the larger payable pays the excess of the larger amount over the smaller amount to the other party. The master netting agreements do not apply to amounts owed to/from different counterparties. The amounts shown in the Statement of Assets and Liabilities do not take into consideration the effects of legally enforceable master netting agreements. The table below presents the gross and net amounts of these assets and liabilities with any offsets to reflect the Fund’s ability to reflect the master netting agreements at December 31, 2014. For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to master netting arrangements in the Statement of Assets and Liabilities. This table also summarizes the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014.

As of December 31, 2014, the Fund’s derivative assets and liabilities by type are as follows:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Financial Management, Inc. (“BlackRock Financial”), BlackRock Financial provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $10,760 was paid from the Fund relating to these fees and expenses.

Forward currency contracts are generally valued at the foreign currency exchange rate as of the close of the NYSE and are typically categorized as Level 2 in the fair value hierarchy.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

For the year ended December 31, 2014, purchases and sales on long-term U.S. government securities were as follows:

Mortgage-Related and Other Asset-Backed Risk: The Fund may invest in a variety of mortgage-related and other asset-backed securities, which are subject to certain additional risks. Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, a Fund that holds mortgage-related securities may exhibit additional volatility. This is known as extension risk. In addition, adjustable and fixed rate mortgage-related securities are subject to call risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of a Fund because the Fund will have to reinvest that money at the lower prevailing interest rates. If a Fund purchases mortgage-backed or asset-backed securities that are subordinated to other interests in the same mortgage pool, the Fund may receive payments only after the pool’s obligations to other investors have been satisfied. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may limit substantially the pool’s ability to make payments of principal or interest to the Fund as a holder of such subordinated securities, reducing the values of those securities or in some cases rendering them worthless. An unexpectedly high or low rate of prepayments on a pool’s underlying mortgages may have a similar effect on subordinated securities. A mortgage pool may issue securities subject to various levels of subordination. The risk of non-payment affects securities at each level, although the risk is greater in the case of more highly subordinated securities. A Fund’s investments in other asset-backed securities are subject to risks similar to those associated with mortgage-related securities, as well as additional risks associated with the nature of the assets and the servicing of those assets.

Cost for federal income tax purposes at December 31, 2014 is $1,184,498,919. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $8,685,941 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Enhanced Bond Index Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Federated Clover Small Value Fund returned 7.54%. That compared to a 4.22% total return for its benchmark, the Russell 2000^® Value Index¹.

The Fund’s sub-advisor, Federated Global Investment Management Corp., employs a bottom-up stock selection process. As a result, the portfolio frequently contains industry and security allocations that may be significantly different than those of the index.*

Stocks performed relatively well during much of the 12-month period. The U.S. economy continued to strengthen amid improving corporate profits and a healthier job market. However, investors remained concerned about continued weakness in international economies such as Europe, Russia and Japan. Late in the period, plunging oil prices led investors to seek out relatively safe areas of the market. Small-cap stocks underperformed the broader equity market in that environment. In particular, the steep decline in energy prices led to weak performance among many small-cap stocks in the energy sector, including oil and gas exploration firms.

The Fund outperformed its benchmark during the period. Stock selection in the materials sector was among the largest contributors to relative returns. In particular, shares of a plastics company and a mining firm that specializes in platinum and palladium added to results. Consumer staples holdings also helped relative returns. Shares of an organic food company advanced amid increased consumer demand for healthy eating options, and holdings of a meat processor added to returns as the company was acquired during the period.*

The Fund benefited from strong stock selection in the financial sector, particularly among shares of banks, REITs² and insurance firms. An underweight position in REITs dragged on performance, however, as such stocks were strong gainers during the period.*

Fund Objective

The Fund’s investment objective is to seek capital appreciation. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets, plus any borrowings for investment purposes, in investments of small-capitalization companies.

Investment Concerns

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® Federated Clover Small Value Fund		7.54	%		17.51	%		14.66	%		7.32	%
Russell 2000^® Value Index		4.22	%		18.29	%		14.26	%		6.89	%


Expense Ratio¹	Gross
AZL^® Federated Clover Small Value Fund		1.12	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 1.35% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Russell 2000^® Value Index, an unmanaged index that measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Federated Clover Small Value Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (97.4%):
	Aerospace & Defense (3.9%):
	65,900	Curtiss-Wright Corp.^	$	4,651,880
	44,940	Esterline Technologies Corp.*^		4,929,018
	83,175	Hexcel Corp.*^		3,450,931
	51,425	Triumph Group, Inc.^		3,456,789

				16,488,618

	Auto Components (0.8%):
	59,650	Tenneco, Inc.*^		3,376,787

	Banks (13.8%):
	127,743	Capital Bank Financial Corp.*^		3,423,512
	46,735	City Holding Co.^		2,174,580
	275,100	F.N.B. Corp.^		3,664,332
	155,150	First Midwest Bancorp, Inc.^		2,654,617
	178,075	Great Western Bancorp, Inc.*^		4,058,329
	681,623	Investors Bancorp, Inc.^		7,651,218
	101,550	PacWest Bancorp		4,616,463
	200,075	Popular, Inc.*		6,812,554
	302,103	Synovus Financial Corp.^		8,183,969
	193,725	Talmer Bancorp, Inc., Class A^		2,719,899
	297,700	TCF Financial Corp.^		4,730,453
	142,500	Umpqua Holdings Corp.^		2,423,925
	163,750	Webster Financial Corp.^		5,326,788

				58,440,639

	Commercial Banks (0.3%):
	52,350	Ameris Bancorp		1,342,254

	Commercial Services & Supplies (0.9%):
	31,375	UniFirst Corp.		3,810,494

	Communications Equipment (2.2%):
	218,675	Ciena Corp.*^		4,244,481
	220,275	SeaChange International, Inc.*^		1,405,354
	56,850	ViaSat, Inc.*^		3,583,256

				9,233,091

	Construction & Engineering (1.3%):
	61,150	Granite Construction, Inc.^		2,324,923
	123,900	Tutor Perini Corp.*^		2,982,273

				5,307,196

	Containers & Packaging (1.9%):
	257,825	Berry Plastics Group, Inc.*		8,134,379

	Diversified Consumer Services (0.5%):
	189,625	Bridgepoint Education, Inc.*^		2,146,555

	Diversified Financial Services (1.2%):
	90,300	FXCM, Inc.^		1,496,271
	141,275	PHH Corp.*^		3,384,949

				4,881,220

	Electric Utilities (3.5%):
	120,675	IDACORP, Inc.^		7,987,479
	179,575	Portland General Electric Co.^		6,793,322

				14,780,801


Shares			Fair Value
	Common Stocks, continued
	Electronic Equipment, Instruments & Components (1.3%):
	33,450	Anixter International, Inc.*^	$	2,958,987
	93,225	Insight Enterprises, Inc.*		2,413,595

				5,372,582

	Energy Equipment & Services (1.2%):
	240,625	Helix Energy Solutions Group, Inc.*^		5,221,563

	Food Products (1.7%):
	646,025	Rite AID Corp.*^		4,858,108
	71,725	WhiteWave Foods Co., Class A*		2,509,658

				7,367,766

	Gas Utilities (1.8%):
	135,250	Atmos Energy Corp.		7,538,835

	Health Care Equipment & Supplies (1.9%):
	62,425	Alere, Inc.*		2,372,150
	111,334	Merit Medical Systems, Inc.*		1,929,418
	144,700	Wright Medical Group, Inc.*^		3,888,089

				8,189,657

	Health Care Providers & Services (3.4%):
	82,225	Capital Senior Living Corp.*		2,048,225
	51,750	IPC The Hospitalist Co.*		2,374,808
	67,550	Magellan Health Services, Inc.*		4,055,026
	48,100	Owens & Minor, Inc.^		1,688,791
	52,375	WellCare Health Plans, Inc.*^		4,297,892

				14,464,742

	Hotels Restaurants & Leisure (0.9%):
	284,725	Belmond, Ltd., Class A*		3,522,049

	Household Durables (1.8%):
	158,325	KB Home^		2,620,279
	92,950	La-Z-Boy, Inc.^		2,494,778
	47,700	Tempur-Pedic International, Inc.*^		2,619,207

				7,734,264

	Independent Power and Renewable Electricity Producers (1.4%):
	197,650	Dynegy, Inc.*		5,998,678

	Insurance (6.5%):
	109,550	American Equity Investment Life Holding Co.^		3,197,765
	81,572	Argo Group International Holdings, Ltd.		4,524,798
	300,475	CNO Financial Group, Inc.^		5,174,178
	140,775	Fidelity & Guaranty Life^		3,416,609
	100,525	First American Financial Corp.^		3,407,798
	60,250	Hanover Insurance Group, Inc. (The)^		4,297,030
	272,075	Maiden Holdings, Ltd.		3,479,839

				27,498,017

	IT Services (1.8%):
	97,725	CSG Systems International, Inc.^		2,449,966
	90,625	Evertec, Inc.		2,005,531
	100,600	Unisys Corp.*^		2,965,688

				7,421,185

	Life Sciences Tools & Services (0.6%):
	135,950	Bruker Corp.*^		2,667,339


Shares			Fair Value
	Common Stocks, continued
	Machinery (2.2%):
	103,550	Barnes Group, Inc.^	$	3,832,386
	51,525	Greenbrier Companies, Inc.^		2,768,438
	94,750	Terex Corp. ^		2,641,630

				9,242,454

	Media (2.2%):
	74,450	Carmike Cinemas, Inc.*^		1,955,802
	83,525	Cinemark Holdings, Inc.^		2,971,819
	132,425	Lions Gate Entertainment Corp.^		4,240,249

				9,167,870

	Metals & Mining (1.6%):
	364,550	Stillwater Mining Co.*^		5,373,467
	58,550	US Silica Holdings, Inc.^		1,504,150

				6,877,617

	Oil, Gas & Consumable Fuels (2.4%):
	176,825	Newfield Exploration Co.*		4,795,494
	394,875	SandRidge Energy, Inc.*^		718,673
	92,900	Teekay Shipping Corp.		4,727,681

				10,241,848

	Pharmaceuticals (1.2%):
	82,550	Impax Laboratories, Inc.*^		2,615,184
	86,200	Medicines Co. (The)*^		2,385,154

				5,000,338

	Professional Services (1.4%):
	49,500	Dun & Bradstreet Corp.^		5,987,521

	Real Estate Investment Trusts (REITs) (14.0%):
	266,450	Colony Financial, Inc.^		6,346,838
	57,725	EPR Properties^		3,326,692
	342,775	FelCor Lodging Trust, Inc.^		3,708,826
	272,400	irst Potomac Realty Trust		3,366,864
	73,050	Highwoods Properties, Inc.^		3,234,654
	132,625	LaSalle Hotel Properties^		5,367,334
	448,625	Lexington Realty Trust^		4,925,903
	509,975	MFA Financial, Inc.^		4,074,700
	385,687	New Residential Investment Corp.		4,925,223
	345,587	NorthStar Realty Finance Corp.		6,075,418
	204,475	Starwood Property Trust, Inc.^		4,751,999
	139,010	Starwood Waypoint Residential Trust^		3,665,694
	80,050	Sun Communities, Inc.^		4,839,823

				58,609,968

	Road & Rail (1.7%):
	248,350	Swift Transportation Co.*^		7,110,261

	Semiconductors & Semiconductor Equipment (3.8%):
	397,875	Atmel Corp.*^		3,340,161
	328,175	Brooks Automation, Inc.		4,184,230
	74,175	Fairchild Semiconductor International, Inc.*^		1,252,074
	70,775	MKS Instruments, Inc.^		2,590,365
	52,875	Tessera Technologies, Inc.^		1,890,810
	82,100	Veeco Instruments, Inc.*^		2,863,648

				16,121,288


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Software (0.6%):
	42,025	Verint Systems, Inc.*^	$	2,449,217

	Specialty Retail (2.1%):
	77,825	GNC Holdings, Inc., Class A^		3,654,662
	55,700	Men’s Wearhouse, Inc. (The)^		2,459,155
	81,025	Rent-A-Center, Inc.^		2,942,828

				9,056,645

	Technology Hardware, Storage & Peripherals (1.0%):
	1,275,366	Quantum Corp.*		2,244,644
	451,450	Violin Memory, Inc.*^		2,162,446

				4,407,090

	Textiles, Apparel & Luxury Goods (2.5%):
	48,375	Deckers Outdoor Corp.*^		4,404,059
	62,300	Kate Spade & Co.*^		1,994,223
	32,550	Skechers U.S.A., Inc., Class A*^		1,798,388
	110,225	Vera Bradley, Inc.*^		2,246,386

				10,443,056

	Thrifts & Mortgage Finance (4.6%):
	235,553	Flushing Financial Corp.		4,774,659
	174,200	Provident Financial Services, Inc.		3,146,052
	376,875	Radian Group, Inc.^		6,301,349
	70,075	WSFS Financial Corp.		5,388,067

				19,610,127

	Tobacco (1.0%):
	202,437	Vector Group, Ltd.^		4,313,932

	Trading Companies & Distributors (0.5%):
	69,825	H&E Equipment Services, Inc.^		1,961,384

	Total Common Stocks (Cost $363,129,069)			411,539,327

	Securities Held as Collateral for Securities on Loan (29.1%):
$	122,822,444	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		122,822,444

	Total Securities Held as Collateral for Securities on Loan (Cost $122,822,444)			122,822,444

	Unaffiliated Investment Company (1.6%):
	6,723,415	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		6,723,415

	Total Unaffiliated Investment Company (Cost $6,723,415)			6,723,415

	Total Investment Securities (Cost $492,674,928)(c) — 128.1%			541,085,186
	Net other assets (liabilities) — (28.1)%			(118,535,486	)

	Net Assets — 100.0%		$	422,549,700

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	492,674,928

Investment securities, at value*	$	541,085,186
Interest and dividends receivable		885,848
Receivable for investments sold		5,778,552
Prepaid expenses		3,727

Total Assets		547,753,313

Liabilities:
Cash overdraft		1
Payable for investments purchased		1,647,189
Payable for capital shares redeemed		327,075
Payable for collateral received on loaned securities		122,822,444
Manager fees payable		267,904
Administration fees payable		9,690
Distribution fees payable		89,302
Custodian fees payable		5,165
Administrative and compliance services fees payable		1,516
Trustee fees payable		30
Other accrued liabilities		33,297

Total Liabilities		125,203,613

Net Assets	$	422,549,700

Net Assets Consist of:
Capital	$	319,081,181
Accumulated net investment income/(loss)		4,872,809
Accumulated net realized gains/(losses) from investment transactions		50,185,452
Net unrealized appreciation/(depreciation) on investments		48,410,258

Net Assets	$	422,549,700

Shares of beneficial interest (unlimited number of shares authorized, no par value)		19,040,801
Net Asset Value (offering and redemption price per share)	$	22.19

*	Includes securities on loan of $118,745,782.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	6,777,334
Income from securities lending		177,942
Foreign withholding tax		(19,385	)

Total Investment Income		6,935,891

Expenses:
Manager fees		3,348,139
Administration fees		116,926
Distribution fees		1,116,046
Administrative and compliance services fees		2,657
Trustee fees		10,261
Professional fees		6,782
Other expenses		5,226

Total expenses before reductions		4,606,037
Less expenses paid indirectly		(20,170	)

Net expenses		4,585,867

Net Investment Income/(Loss)		2,350,024

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		53,397,943
Change in net unrealized appreciation/depreciation on investments		(23,855,458	)

Net Realized/Unrealized Gains/(Losses) on Investments		29,542,485

Change in Net Assets Resulting From Operations	$	31,892,509

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Federated Clover Small Value Fund (the “Fund”), and 30 are presented in separate reports.

To generate additional income, the Fund may lend up to 33 ¹/₃% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $48.5 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $17,632 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a portfolio management agreement with Federated Global Investment Management Corp. (“Federated”), Federated provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $5,510 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $495,933,174. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Federated Clover Small Value Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 24.34% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $44,214,364.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $8,256,454.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Franklin Templeton Founding Strategy Plus Fund returned 2.14%. That compared to a 10.56% total return for its benchmark, the Balanced Composite Index, which is comprised of a 60% weighting in the S&P 500 Index¹ and a 40% weighting in the Barclays U.S. Aggregate Bond Index².

The AZL Franklin Templeton Founding Strategy Plus Fund (“the Fund”) invests in a portfolio of four underlying sleeves. The Fund’s portfolio is allocated equally among the following sleeves:

•

The AZL Templeton Growth Strategy seeks U.S. and international equities selling at prices that are low relative to managers’ appraisal of value.

•

The AZL Franklin Income Strategy primarily invests in equity and fixed-income securities identified by the portfolio managers as undervalued.

•

The AZL Mutual Shares Strategy focuses on undervalued dividend-paying stocks and bonds.

•

The AZL Templeton Global Bond Strategy invests predominantly in bonds issued by governments and government agencies around the world.

The global economy grew moderately during 2014. U.S. economic growth accelerated while growth rates in much of the rest of the world declined. The U.S. Federal Reserve Board ended its asset purchase program in October, while keeping interest rates low. The European Central Bank reduced its main interest rate and implemented an asset purchase program. Japan’s economy entered a recession, and the Bank of Japan expanded its stimulus measures. Global developed market stocks advanced overall during the 12-month period amid a generally accommodative monetary policy environment and continued strength in corporate earnings. Meanwhile, emerging market stocks overall fell amid headwinds such as soft domestic demand, weak exports, plummeting crude oil prices, regional geopolitical tensions and concerns about possible U.S. interest rate increases.

The Fund’s absolute performance benefited from its component funds’ equity holdings in the health care and information technology sectors. However, the energy and industrials sectors weighed on absolute returns. And while holdings in the U.S. performed well, European stocks declined.*

The Fund underperformed its composite benchmark. Relative performance was hurt by the AZL Templeton Growth Strategy’s stock selection in the energy, industrials and consumer staples sectors. In addition, an overweighting and stock selection in Europe, particularly the Netherlands and U.K., were detrimental. Detractors for the AZL Franklin Mutual Shares Strategy included holdings in a U.K.-based

retailer, a natural resources company and an offshore contract oil driller. Additionally, the AZL Templeton Global Bond Strategy’s interest rate strategies and select bond duration exposures in Europe and the U.S. detracted from relative performance.*

Investments for AZL Franklin Mutual Shares Strategy in a U.S. technology leader, an Israel-based pharmaceutical firm and a regional grocery retailer were key contributors to the Fund’s performance. Driven by modest earnings growth and U.S. economic and employment growth, the AZL Franklin Income Strategy’s equities also performed well.*

The AZL Franklin Income Strategy’s fixed income assets remained positioned largely in high yield corporate bonds, which performed positively as long-term interest rates declined. Among fixed income investments, communications, consumer non-cyclical and technology positions benefited performance.*

Some of the sleeves employed currency positions during the period, to varying effect. For instance, the AZL Franklin Mutual Shares Strategy held currency forwards during the period with the goal of somewhat hedging the currency risk of the Fund’s non-U.S. dollar investments. The hedges had a positive impact on the Fund’s performance. Net negative exposures to the yen and euro within the AZL Templeton Global Bond Strategy were significant relative contributors. However, exposure to several other currencies that also depreciated had a negative effect on relative returns, and overall currency exposures detracted from the Fund’s relative performance.*

Past performance does not guarantee future results.

¹	The Standard & Poor’s 500 Index (“S&P 500”) is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole.

²	The Barclays U.S. Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek long-term capital appreciation, with income as a secondary goal. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing in a combination of subportfolios or strategies.

Investment Concerns

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

The chart above represents a comparison of a hypothetical investment in the Fund versus a similar investment in the Fund’s benchmark, as well as the two component indices of the Fund’s benchmark, and represents the reinvestment of dividends and capital gains in the Fund.

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (10/23/09)
AZL^® Franklin Templeton Founding Strategy Plus Fund		2.14	%		11.46	%		8.38	%		8.57	%
Balanced Composite Index		10.56	%		13.18	%		11.29	%		11.36	%
S&P 500 Index		13.69	%		20.41	%		15.45	%		15.67	%
Barclays U.S. Aggregate Bond Index		5.97	%		2.66	%		4.45	%		4.33	%


Expense Ratio	Gross
AZL^® Franklin Templeton Founding Strategy Plus Fund		1.05	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Funds have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against a composite index (the “Balanced Composite Index”), which is comprised of 60% of the Standard & Poor’s 500 Index (“S&P 500”) and 40% of the Barclays U.S. Aggregate Bond Index. The S&P 500 is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The Barclays U.S. Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. These indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Franklin Templeton Founding Strategy Plus Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

	Common Stocks (57.9%):
	Aerospace & Defense (1.0%):
	87,790	BAE Systems plc	$	640,791
	19,530	BE Aerospace, Inc.*^		1,133,131
	6,360	Boeing Co. (The)		826,673
	21,753	Huntington Ingalls Industries, Inc.		2,446,342
	9,765	KLX, Inc.*^		402,806
	7,200	Lockheed Martin Corp.		1,386,504
	6,370	Raytheon Co.^		689,043
	2,000	United Technologies Corp.		230,000

				7,755,290

	Air Freight & Logistics (0.3%):
	204,142	TNT Express NV^		1,356,129
	7,540	United Parcel Service, Inc., Class B		838,222

				2,194,351

	Airlines (0.7%):
	205,190	Deutsche Lufthansa AG, Registered Shares		3,435,863
	296,020	International Consolidated Airlines Group SA*		2,211,938

				5,647,801

	Auto Components (0.3%):
	26,971	Compagnie Generale des Establissements Michelin SCA, Class B		2,444,966

	Automobiles (1.2%):
	40,000	Ford Motor Co.		620,000
	147,382	General Motors Co.		5,145,106
	265,200	Nissan Motor Co., Ltd.		2,310,342
	26,700	Toyota Motor Corp.		1,665,305

				9,740,753

	Banks (5.6%):
	10,830	Bank of America Corp.		193,749
	289,820	Barclays plc		1,089,445
	37,480	BNP Paribas SA		2,202,225
	23,852	CIT Group, Inc.		1,140,841
	124,160	Citigroup, Inc.		6,718,297
	24,979	Citizens Financial Group, Inc.^		620,978
	9,886	Columbia Banking System, Inc.		272,952
	51,180	Commerzbank AG*		679,831
	5,306	Commonwealth Bank of Australia		368,413
	153,240	Credit Agricole SA		1,969,774
	111,000	DBS Group Holdings, Ltd.		1,714,563
	38,540	HSBC Holdings plc		364,177
	249,352	HSBC Holdings plc		2,372,539
	104,950	JPMorgan Chase & Co.		6,567,771
	80,600	KB Financial Group, Inc.		2,632,706
	48,622	PNC Financial Services Group, Inc.^		4,435,785
	9,100	Royal Bank of Canada		628,656
	7,304	Societe Generale		306,887
	95,633	SunTrust Banks, Inc.^		4,007,023
	364,398	UniCredit SpA		2,322,219
	60,611	Wells Fargo & Co.		3,322,695

				43,931,526


Shares			Fair Value

	Common Stocks, continued
	Beverages (0.5%):
	6,095	Coca-Cola Enterprises, Inc.	$	269,521
	37,254	PepsiCo, Inc.		3,522,738

				3,792,259

	Biotechnology (0.5%):
	23,270	Amgen, Inc.		3,706,678
	1,251	FCB Financial Holdings, Inc., Class A*		30,825
	5,250	Gilead Sciences, Inc.*		494,865

				4,232,368

	Capital Markets (0.8%):
	130,427	Credit Suisse Group AG		3,270,639
	74,040	Morgan Stanley		2,872,752

				6,143,391

	Chemicals (1.4%):
	12,000	Agrium, Inc.		1,136,640
	37,598	Akzo Nobel NV		2,606,912
	10,000	BASF SE		845,237
	62,170	Dow Chemical Co. (The)		2,835,574
	27,620	E.I. du Pont de Nemours & Co.		2,042,223
	15,000	LyondellBasell Industries NV, Class A		1,190,850
	16,000	Mosaic Co. (The)		730,400

				11,387,836

	Commercial Services & Supplies (0.3%):
	230	CEVA Group plc*		177,979
	28,550	Republic Services, Inc., Class A		1,149,138
	216,304	Serco Group plc^		537,843
	16,210	Waste Management, Inc.^		831,897

				2,696,857

	Communications Equipment (1.1%):
	256,049	Cisco Systems, Inc.		7,122,003
	145,920	Telefonaktiebolaget LM Ericsson, B Shares		1,768,396

				8,890,399

	Construction & Engineering (0.2%):
	31,440	FLSmidth & Co. A/S^		1,379,428

	Construction Materials (0.3%):
	111,618	CRH plc		2,685,131

	Consumer Finance (0.2%):
	44,980	Ally Financial, Inc.*		1,062,427
	5,950	Capital One Financial Corp.		491,173

				1,553,600

	Containers & Packaging (0.3%):
	47,384	MeadWestvaco Corp.^		2,103,376

	Diversified Consumer Services (0.0%):
	7,063	Cengage Learning Holdings II, LP*		162,626

	Diversified Financial Services (0.5%):
	307,744	ING Groep NV*		3,984,077

	Diversified Telecommunication Services (1.8%):
	76,170	AT&T, Inc.		2,558,551
	10,000	CenturyLink, Inc.^		395,800


Shares			Fair Value

	Common Stocks, continued
	Diversified Telecommunication Services, continued
	27,407	China Telecom Corp., Ltd., Sponsored ADR	$	1,609,065
	403,330	Koninklijke (Royal) KPN NV		1,271,461
	548,520	Singapore Telecommunications, Ltd.		1,610,534
	205,627	Telefonica SA		2,940,932
	84,310	Telstra Corp., Ltd.		409,326
	34,930	Verizon Communications, Inc.		1,634,025
	21,203	Verizon Communications, Inc.		987,817
	31,132	Vivendi		776,501

				14,194,012

	Electric Utilities (1.6%):
	15,000	American Electric Power Co., Inc.		910,800
	30,897	Duke Energy Corp.		2,581,135
	14,000	Entergy Corp.^		1,224,720
	85,050	Exelon Corp.^		3,153,654
	16,000	FirstEnergy Corp.^		623,840
	124,100	HK Electric Investments, Ltd.(a)		81,864
	22,920	PPL Corp.		832,684
	65,960	Southern Co. (The)^		3,239,296

				12,647,993

	Electrical Equipment (0.0%):
	101,615	Dongfang Electric Corp., Ltd.		186,203

	Electronic Equipment, Instruments & Components (0.1%):
	49,730	Flextronics International, Ltd.*		555,981

	Energy Equipment & Services (0.9%):
	55,109	Baker Hughes, Inc.		3,089,961
	7,189	Ensco plc, Class A, Sponsored ADR^		215,311
	7,500	Halliburton Co.		294,975
	95,250	Noble Corp. plc		1,578,292
	20,710	Paragon Offshore plc^		57,367
	23,389	Saipem SpA*^		245,609
	7,000	Schlumberger, Ltd.		597,870
	6,210	Technip-Coflexip SA		370,778
	44,144	Transocean, Ltd.^		809,160

				7,259,323

	Food & Staples Retailing (1.9%):
	47,016	CVS Health Corp.		4,528,111
	51,529	Kroger Co. (The)		3,308,677
	57,540	Metro AG*^		1,761,460
	514,704	Tesco plc		1,497,565
	49,803	Walgreens Boots Alliance, Inc.		3,794,989

				14,890,802

	Gas Utilities (0.0%):
	2,870	AGL Resources, Inc.		156,444

	Health Care Equipment & Supplies (1.9%):
	100,680	Getinge AB, B Shares		2,288,342
	141,740	Medtronic, Inc.^		10,233,628
	26,110	Stryker Corp.		2,462,956

				14,984,926


Shares			Fair Value

	Common Stocks, continued
	Health Care Providers & Services (0.3%):
	24,186	CIGNA Corp.	$	2,488,981

	Hotels, Restaurants & Leisure (0.0%):
	5,000	Las Vegas Sands Corp.^		290,800

	Household Products (0.0%):
	2,533	Energizer Holdings, Inc.		325,642

	Independent Power and Renewable Electricity Producers (0.5%):
	15,370	Dynegy, Inc.*		466,480
	16,670	NextEra Energy, Inc.		1,771,854
	61,463	NRG Energy, Inc.^		1,656,428

				3,894,762

	Industrial Conglomerates (0.7%):
	115,820	General Electric Co.		2,926,771
	37,630	Koninklijke Philips Electronics NV		1,092,464
	14,360	Siemens AG, Registered Shares		1,628,378

				5,647,613

	Insurance (3.6%):
	27,677	ACE, Ltd.		3,179,533
	5,453	Alleghany Corp.*		2,527,466
	31,483	Allstate Corp. (The)		2,211,681
	138,736	American International Group, Inc.		7,770,602
	251,567	Aviva plc		1,884,802
	86,573	AXA SA		1,999,299
	58,751	MetLife, Inc.		3,177,842
	4,840	Muenchener Rueckversicherungs-Gesellschaft AG		969,539
	27,000	NN Group NV*^		804,437
	22,760	Swiss Re AG		1,904,979
	980	White Mountains Insurance Group, Ltd.		617,508
	4,951	Zurich Insurance Group AG		1,550,838

				28,598,526

	Life Sciences Tools & Services (0.1%):
	34,300	QIAGEN NV*		803,147

	Machinery (0.6%):
	12,807	Caterpillar, Inc.		1,172,225
	134,634	CNH Industrial NV		1,085,211
	8,060	Deere & Co.		713,068
	3,788	Federal Signal Corp.		58,487
	41,856	Navistar International Corp.*^		1,401,339

				4,430,330

	Marine (0.3%):
	1,345	A.P. Moeller — Maersk A/S, Class B		2,673,970

	Media (3.5%):
	109,077	British Sky Broadcasting Group plc		1,517,971
	47,115	CBS Corp., Class B		2,607,344
	80,502	Comcast Corp., Class A^		4,634,097
	83,860	News Corp., Class A*		1,315,763
	59,790	Reed Elsevier NV		1,428,736
	169,909	Reed Elsevier plc		2,890,375
	25,671	Time Warner Cable, Inc.		3,903,532


Shares			Fair Value

	Common Stocks, continued
	Media, continued
	19,939	Time Warner, Inc.	$	1,703,189
	5,213	Tribune Co.#*(b)		—
	3,393	Tribune Co.*^		202,800
	2,462	Tribune Co., B Shares*(c)		147,154
	1,618	Tribune Publishing Co.		37,052
	63,920	Twenty-First Century Fox, Inc.^		2,454,848
	123,684	Twenty-First Century Fox, Inc., Class B		4,562,702
	7,740	Walt Disney Co. (The)		729,031

				28,134,594

	Metals & Mining (1.8%):
	28,081	Anglo American plc		519,489
	27,100	Barrick Gold Corp., ADR		291,325
	65,240	BHP Billiton plc		1,395,300
	127,985	Freeport-McMoRan Copper & Gold, Inc.		2,989,730
	33,460	Goldcorp, Inc.		619,679
	105,428	Mining and Metallurgical Co. Norilsk Nickel, Sponsored ADR		1,457,026
	8,511	POSCO		2,147,635
	67,180	Rio Tinto plc, Registered Shares, Sponsored ADR^		3,094,311
	60,616	ThyssenKrupp AG*		1,558,890

				14,073,385

	Multiline Retail (0.9%):
	16,021	Kohl’s Corp.^		977,922
	156,610	Marks & Spencer Group plc		1,156,148
	64,120	Target Corp.^		4,867,349

				7,001,419

	Multi-Utilities (0.9%):
	17,270	Dominion Resources, Inc.		1,328,063
	55,430	PG&E Corp.		2,951,092
	22,060	Public Service Enterprise Group, Inc.		913,505
	11,070	Sempra Energy		1,232,755
	3,650	TECO Energy, Inc.^		74,789
	27,390	Xcel Energy, Inc.		983,849

				7,484,053

	Oil, Gas & Consumable Fuels (6.0%):
	13,280	Anadarko Petroleum Corp.		1,095,600
	40,280	Apache Corp.^		2,524,348
	75,548	BG Group plc		1,005,475
	401,711	BP plc		2,550,447
	80,765	BP plc, Sponsored ADR^		3,078,762
	39,300	Canadian Oil Sands, Ltd.		352,567
	26,620	Chevron Corp.		2,986,231
	543,000	China Shenhua Energy Co., Ltd.		1,599,292
	33,229	CONSOL Energy, Inc.^		1,123,472
	7,500	Devon Energy Corp.		459,075
	124,593	Eni SpA		2,175,785
	15,580	Exxon Mobil Corp.		1,440,371
	133,040	Galp Energia SGPS SA		1,345,798
	12,340	HollyFrontier Corp.		462,503


Shares			Fair Value

	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	1,595,700	Kunlun Energy Co., Ltd.	$	1,511,173
	84,406	Marathon Oil Corp.		2,387,846
	22,280	Murphy Oil Corp.^		1,125,586
	5,000	Occidental Petroleum Corp.		403,050
	137,722	Petroleo Brasileiro SA, Sponsored ADR		1,043,933
	56,209	Royal Dutch Shell plc, Sponsored ADR		3,763,192
	97,577	Royal Dutch Shell plc, A Shares		3,263,296
	460	Royal Dutch Shell plc, A Shares		15,246
	54,908	Royal Dutch Shell plc, B Shares		1,886,074
	22,490	Spectra Energy Corp.^		816,387
	3,020	Talisman Energy, Inc.		23,647
	108,613	Talisman Energy, Inc.		850,440
	461,554	Talisman Energy, Inc.		3,616,135
	52,650	Total SA		2,714,271
	23,740	Total SA, Sponsored ADR, Sponsored ADR^		1,215,488
	23,280	Williams Cos., Inc. (The)		1,046,203

				47,881,693

	Paper & Forest Products (0.4%):
	56,446	International Paper Co.		3,024,377

	Personal Products (0.1%):
	107,548	Avon Products, Inc.		1,009,876

	Pharmaceuticals (5.6%):
	5,957	Actavis, plc*		1,533,391
	56,919	Eli Lilly & Co.		3,926,842
	117,242	GlaxoSmithKline plc		2,508,090
	38,211	Hospira, Inc.*		2,340,424
	10,000	Johnson & Johnson Co.		1,045,700
	172,224	Merck & Co., Inc.		9,780,600
	21,980	Merck KGaA		2,084,898
	177,360	Pfizer, Inc.		5,524,764
	14,010	Roche Holding AG		3,798,423
	21,470	Sanofi-Aventis SA		1,956,456
	15,000	Sanofi-Aventis SA, Sponsored ADR		684,150
	155,012	Teva Pharmaceutical Industries, Ltd., Sponsored ADR		8,914,740

				44,098,478

	Real Estate Investment Trusts (REITs) (0.1%):
	2,556	Alexander’s, Inc.^		1,117,432

	Real Estate Management & Development (0.0%):
	13,131	Canary Wharf Group plc*(c)		110,688
	2,292	Forestar Group, Inc.*		35,297

				145,985

	Semiconductors & Semiconductor Equipment (1.3%):
	49,140	Intel Corp.(a)		1,783,291
	6,094	Samsung Electronics Co., Ltd.		7,326,305
	19,910	Texas Instruments, Inc.		1,064,488
	12,300	Xilinx, Inc.		532,467

				10,706,551


Shares			Fair Value

	Common Stocks, continued
	Software (2.6%):
	42,508	CA, Inc.	$	1,294,369
	287,440	Microsoft Corp.		13,351,587
	14,870	Oracle Corp.		668,704
	12,060	SAP AG		852,607
	145,068	Symantec Corp.		3,721,720

				19,888,987

	Sovereign Bonds (0.1%):
	85,800	Bangkok Bank Public Co., Ltd.		503,801

	Specialty Retail (0.5%):
	34,252	Best Buy Co., Inc.		1,335,143
	503,764	Kingfisher plc		2,654,314

				3,989,457

	Technology Hardware, Storage & Peripherals (2.0%):
	60,749	Apple, Inc.		6,705,474
	126,490	Hewlett-Packard Co.		5,076,044
	166,600	Konica Minolta Holdings, Inc.		1,797,343
	210,925	Xerox Corp.		2,923,421

				16,502,282

	Tobacco (1.7%):
	55,557	Altria Group, Inc.		2,737,293
	67,257	British American Tobacco plc		3,653,883
	51,028	Imperial Tobacco Group plc		2,234,402
	52,720	Lorillard, Inc.		3,318,197
	13,457	Philip Morris International, Inc.		1,096,073

				13,039,848

	Wireless Telecommunication Services (0.9%):
	49,000	China Mobile, Ltd.		575,697
	7,130	Mobile TeleSystems, Sponsored ADR		51,193
	164,437	Turkcell Iletisim Hizmetleri AS, Sponsored ADR*		2,486,287
	1,238,869	Vodafone Group plc		4,244,415

				7,357,592

	Total Common Stocks (Cost $393,051,079)			460,715,300

	Preferred Stocks (0.4%):
	Automobiles (0.2%):
	5,955	Volkswagen AG, Preferred Shares		1,330,022

	Banks (0.0%):
	6,800	GMAC Capital Trust I		179,384

	Capital Markets (0.0%):
	10,000	Morgan Stanley, Series I		253,100

	Metals & Mining (0.1%):
	20,000	Alcoa, Inc., Series 1		1,009,000

	Multi-Utilities (0.1%):
	9,300	Dominion Resources, Inc.		483,693

	Total Preferred Stocks (Cost $3,425,443)			3,255,199

	Convertible Preferred Stocks (0.3%):
	Banks (0.3%):
	800	Bank of America Corp., Series L		930,376
	416	Wells Fargo & Co., Series L, Class A, 0.02%		505,440

				1,435,816


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Convertible Preferred Stocks, continued
	Commercial Services & Supplies (0.0%):
$	6	CEVA Group plc, Series A-1	$	6,000
	49	CEVA Group plc, Series A-2		37,626

				43,626

	Multi-Utilities (0.0%):
	2,500	Dominion Resources, Inc., Series B		150,300
	2,500	Dominion Resources, Inc., Series A		150,025

				300,325

	Oil, Gas & Consumable Fuels (0.0%):
	100	Chesapeake Energy Corp., Series A^		102,375
	3,500	SandRidge Energy, Inc., 0.51%		192,938

				295,313

	Real Estate Investment Trusts (REITs) (0.0%):
	2,500	FelCor Lodging Trust, Inc., Series A, 30.53%^		63,867

	Total Convertible Preferred Stocks (Cost $1,873,266)			2,138,947

	Convertible Bonds (0.7%):
	Automobiles (0.4%):
	1,000,000	Fiat Chrysler Automobiles NV, Series FCAU, 7.88%, 12/15/16		1,075,000
	1,500,000	Volkswagen International Finance NV, 5.50%, 11/9/15+(a)		2,007,235

				3,082,235

	Banks (0.1%):
	1,000,000	JPMorgan Chase & Co., Series Q, 5.15%, 12/31/49, Callable 5/1/23 @ 100, Perpetual Bond^(d)		942,000

	Construction Materials (0.0%):
	300,000	Cemex SAB de C.V., 3.75%, 3/15/18		361,688

	Oil, Gas & Consumable Fuels (0.2%):
	2,000,000	Cobalt International Energy, Inc., 3.13%, 5/15/24^		1,343,750

	Total Convertible Bonds (Cost $6,159,638)			5,729,673

	Floating Rate Loans (0.6%):
	Diversified Financial Services (0.1%):
	3,860,813	Lehman Brothers Holdings, Inc., 0.00%, 12/31/49(d)		953,157

	Electric Utilities (0.0%):
	149,307	Texas Competitive Electric Holdings Co. LLC, 4.65%, 10/10/17(d)(e)		96,366

	Hotels, Restaurants & Leisure (0.1%):
	368,078	Caesars Entertainment Operating Co., Inc., 9.75%, 3/1/17(d)		321,608
	89,801	Caesars Entertainment Operating Co., Inc., 4.45%, 1/28/18(d)		78,184
	429,156	Caesars Entertainment Operating Co., Inc., 5.45%, 1/28/18(d)		374,245

				774,037

	Machinery (0.1%):
	483,718	Navistar International Corp., 5.75%, 8/17/17(d)		480,090


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Floating Rate Loans, continued
	Media (0.1%):
$	43,780	Cengage Learning Acquisitions, Inc., 7.00%, 3/31/20(d)	$	43,287
	224	iHeartCommunications, Inc., 3.81%, 1/19/16(d)		220
	3,371	iHeartCommunications, Inc., 3.81%, 1/29/16(d)		3,332
	430,631	iHeartCommunications, Inc., 6.91%, 1/30/19(d)		405,100
	138,444	iHeartCommunications, Inc., 7.66%, 7/30/19(d)		131,694

				583,633

	Oil Gas & Consumable Fuels (0.0%):
	459,113	Walter Energy, Inc., 7.25%, 4/1/18(d)		354,793

	Oil, Gas & Consumable Fuels (0.1%):
	1,000,000	Fieldwood Energy LLC, 8.38%, 9/30/20(d)		726,250
	25,502	NGPL PipeCo LLC, 6.75%, 9/15/17(d)		24,705

				750,955

	Specialty Retail (0.1%):
	883,802	Toys “R” US, 9.75%, 4/24/20(d)		804,260

	Total Floating Rate Loans (Cost $6,026,588)			4,797,291

	Corporate Bonds (6.8%):
	Aerospace & Defense (0.0%):
	100,000	TransDigm Group, Inc., 6.00%, 7/15/22, Callable 7/15/17 @ 104.5		99,750
	100,000	TransDigm Group, Inc., 6.50%, 7/15/24, Callable 7/15/19 @ 103.25		100,500

				200,250

	Auto Components (0.2%):
	100,000	Goodyear Tire & Rubber Co., 8.25%, 8/15/20, Callable 8/15/15 @ 104.13^		106,000
	1,600,000	Goodyear Tire & Rubber Co., 6.50%, 3/1/21, Callable 3/1/16 @ 104.88^		1,696,000

				1,802,000

	Automobiles (0.1%):
	200,000	Chrysler GP / Chrysler CG Co. Issuer, 8.00%, 6/15/19, Callable 6/15/15 @ 104^		210,250
	400,000	Chrysler GP / Chrysler CG Co. Issuer, 8.25%, 6/15/21, Callable 6/15/15 @ 104.13		443,000

				653,250

	Banks (0.1%):
	250,000	JPMorgan Chase & Co., Series 1, 7.90%, 4/29/49, Callable 4/30/18 @ 100(d)		269,075
	200,000	Wells Fargo & Co., Series S, 5.90%, 12/31/49, Callable 6/15/24 @ 100(d)		201,500

				470,575

	Commercial Services & Supplies (0.1%):
	475,000	CEVA Group plc, 4.00%, 5/1/18, Callable 2/9/15 @ 101(a)		413,250


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Corporate Bonds, continued
	Consumer Finance (0.1%):
$	500,000	OneMain Financial Holdings, Inc., 7.25%, 12/15/21, Callable 12/15/17 @ 103.63^(a)	$	512,500

	Diversified Consumer Services (0.1%):
	500,000	Laureate Education, Inc., 9.25%, 9/1/19, Callable 9/1/15 @ 106.94(a)		515,000

	Diversified Telecommunication Services (0.3%):
	200,000	CenturyLink, Inc., Series W, 6.75%, 12/1/23^		219,000
	1,700,000	Verizon Communications, Inc., 5.15%, 9/15/23		1,877,196

				2,096,196

	Electric Utilities (0.2%):
	1,000,000	Dynegy Finance I, Inc., 6.75%, 11/1/19, Callable 5/1/17 @ 103.38(a)		1,017,500
	330,000	NGL Energy Partners, LP, 6.88%, 10/15/21, Callable 10/15/16 @ 105(a)		325,050
	200,000	NRG Yield Operating LLC, 5.38%, 8/15/24, Callable 8/15/19 @ 102.69(a)		203,000

				1,545,550

	Food & Staples Retailing (0.1%):
	300,000	JBS USA LLC / JBS USA Finance Corp., 8.25%, 2/1/20, Callable 2/1/15 @ 106.19(a)		315,750
	161,000	JBS USA LLC / JBS USA Finance Corp., 7.25%, 6/1/21, Callable 6/1/15 @ 105.44(a)		165,830
	200,000	US Foods, Inc., 8.50%, 6/30/19, Callable 2/9/15 @ 106.38		212,000
	300,000	WhiteWave Foods Co., 5.38%, 10/1/22		309,000

				1,002,580

	Health Care Providers & Services (0.4%):
	100,000	Community Health Systems, Inc., 5.13%, 8/1/21, Callable 2/1/17 @ 103.85		103,750
	300,000	Community Health Systems, Inc., 6.88%, 2/1/22, Callable 2/1/18 @ 103.44^		317,813
	800,000	HCA, Inc., 7.50%, 2/15/22		914,000
	500,000	HCA, Inc., 5.88%, 5/1/23^		526,875
	1,400,000	Tenet Healthcare Corp., 8.13%, 4/1/22		1,564,500

				3,426,938

	Hotels, Restaurants & Leisure (0.1%):
	500,000	MGM Resorts International, 10.00%, 11/1/16^		556,250
	200,000	MGM Resorts International, 6.75%, 10/1/20		210,000

				766,250

	Household Products (0.2%):
	300,000	Reynolds Group Issuer LLC / Reynolds Group Issuer, Inc., 7.88%, 8/15/19, Callable 8/15/15 @ 103.94		316,125
	200,000	Reynolds Group Issuer LLC / Reynolds Group Issuer, Inc., 9.88%, 8/15/19, Callable 8/15/15 @ 104.94		212,000


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Corporate Bonds, continued
	Household Products, continued
$	500,000	Reynolds Group Issuer LLC / Reynolds Group Issuer, Inc., 5.75%, 10/15/20, Callable 10/15/15 @ 104.31	$	512,500
	600,000	Reynolds Group Issuer LLC / Reynolds Group Issuer, Inc., 8.25%, 2/15/21, Callable 2/15/16 @ 104.13^		615,000

				1,655,625

	Independent Power and Renewable Electricity Producers (0.5%):
	1,000,000	AES Corp., 4.88%, 5/15/23, Callable 5/15/18 @ 102.44^		992,500
	350,000	Calpine Corp., 7.88%, 1/15/23, Callable 1/15/17 @ 103.94(a)		385,875
	500,000	Calpine Corp., 5.38%, 1/15/23, Callable 10/15/18 @ 102.69^		505,000
	500,000	Calpine Corp., 5.75%, 1/15/25, Callable 10/15/19 @ 102.88^		506,250
	115,000	RRI Energy, Inc., 7.88%, 6/15/17^		114,425
	2,581,000	Texas Competitive Electric Holdings Co. LLC, 11.50%, 10/1/20, Callable 4/1/16 @ 105.75(a)(e)		1,826,058

				4,330,108

	IT Services (0.0%):
	200,000	SRA International, Inc., 11.00%, 10/1/19, Callable 10/1/15 @ 105.5		212,500

	Machinery (0.1%):
	245,000	Aviation Capital Group Corp., 6.75%, 4/6/21(a)		277,463
	400,000	Navistar International Corp., 8.25%, 11/1/21, Callable 2/9/15 @ 104.13		394,500

				671,963

	Media (1.1%):
	325,000	Cablevision Systems Corp., 8.63%, 9/15/17		361,563
	100,000	Cablevision Systems Corp., 7.75%, 4/15/18		110,000
	100,000	CBS Outdoor Americas Capital LLC / CBS Outdoor Americas Capital Corp., 5.25%, 2/15/22, Callable 2/15/17 @ 103.94^(a)		100,750
	100,000	CBS Outdoor Americas Capital LLC / CBS Outdoor Americas Capital Corp., 5.63%, 2/15/24, Callable 2/15/19 @ 102.81(a)		100,500
	500,000	CCO Holdings LLC / CCO Holdings Capital Corp., 6.50%, 4/30/21, Callable 4/30/15 @ 104.88		525,000
	700,000	CSC Holdings LLC, 6.75%, 11/15/21^		773,500
	175,000	Cumulus Media Holdings, Inc., 7.75%, 5/1/19, Callable 5/1/15 @ 103.88^		176,750
	1,000,000	Dish DBS Corp., 5.88%, 7/15/22^		1,025,000
	500,000	Dish DBS Corp., 5.00%, 3/15/23		483,750
	1,548,000	iHeartCommunications, Inc., 9.00%, 12/15/19, Callable 7/15/15 @ 104.5		1,524,779
	1,000,000	iHeartCommunications, Inc., 9.00%, 3/1/21, Callable 3/1/16 @ 104.5		980,000


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Corporate Bonds, continued
	Media, continued
$	1,500,000	iHeartCommunications, Inc., 9.00%, 9/15/22, Callable 9/15/17 @ 106.75(a)	$	1,470,000
	200,000	Sirius XM Radio, Inc., 6.00%, 7/15/24, Callable 7/15/19 @ 103(a)		205,000
	1,000,000	Univision Communications, Inc., 5.13%, 5/15/23, Callable 5/15/18 @ 102.56(a)		1,010,000
	200,000	Visant Corp., 10.00%, 10/1/17, Callable 2/9/15 @ 105^		173,500

				9,020,092

	Metals & Mining (0.1%):
	500,000	Dynacast International LLC / Dynacast Finance, Inc., 9.25%, 7/15/19, Callable 7/15/15 @ 104.63		536,250
	500,000	Molycorp, Inc., 10.00%, 6/1/20, Callable 6/1/16 @ 105^		277,500

				813,750

	Multiline Retail (0.1%):
	842,243	J.C. Penney Co., Inc., 6.00%, 5/22/18(d)		824,699

	Oil, Gas & Consumable Fuels (1.6%):
	200,000	Alpha Natural Resources, Inc., 7.50%, 8/1/20, Callable 8/1/16 @ 105.63^(a)		126,000
	200,000	Antero Resources Finance Corp., 5.38%, 11/1/21, Callable 11/1/16 @ 104.03		193,500
	250,000	Arch Coal, Inc., 7.00%, 6/15/19, Callable 6/15/15 @ 103.5		73,750
	750,000	Arch Coal, Inc., 7.25%, 6/15/21, Callable 6/15/16 @ 103.63		218,438
	500,000	Bill Barrett Corp., 7.00%, 10/15/22, Callable 10/15/17 @ 103.5^		402,500
	200,000	BreitBurn Energy / BreitBurn Finance, 7.88%, 4/15/22, Callable 1/15/17 @ 103.94^		154,500
	800,000	California Resources Corp., 6.00%, 11/15/24, Callable 8/15/24 @ 100^(a)		676,000
	345,000	Chesapeake Energy Corp., 6.50%, 8/15/17		367,425
	200,000	Chesapeake Energy Corp., 7.25%, 12/15/18		219,000
	1,700,000	Chesapeake Energy Corp., 5.75%, 3/15/23^(a)		1,750,999
	500,000	CONSOL Energy, Inc., 5.88%, 4/15/22, Callable 4/15/17 @ 104.41^(a)		465,000
	350,000	Denbury Resources, Inc., 5.50%, 5/1/22, Callable 5/1/17 @ 104.13^		320,250
	500,000	Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17, Callable 2/9/15 @ 104.63^		325,000
	500,000	EP Energy/EP Finance, Inc., 9.38%, 5/1/20, Callable 5/1/16 @ 104.69		505,000
	400,000	EXCO Resources, Inc., 7.50%, 9/15/18, Callable 2/9/15 @ 103.75		305,750
	500,000	Halcon Resources Corp., 9.75%, 7/15/20, Callable 7/15/16 @ 104.88		375,000
	400,000	Halcon Resources Corp., 8.88%, 5/15/21, Callable 11/15/16 @ 104.44^		301,000
	1,300,000	Kinder Morgan (Delaware), Inc., 5.63%, 11/15/23, Callable 8/15/23 @ 100(a)		1,391,553


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Corporate Bonds, continued
	Oil, Gas & Consumable Fuels, continued
$	100,000	Linn Energy LLC / Linn Energy Finance Corp., 8.63%, 4/15/20, Callable 4/15/15 @ 104.31	$	87,000
	325,000	Midstates Petroleum Co., Inc. / Midstates Petroleum Co. LLC, 10.75%, 10/1/20, Callable 10/1/16 @ 105.38		172,250
	315,000	NGPL PipeCo LLC, 7.12%, 12/15/17^(a)		309,488
	469,000	NGPL PipeCo LLC, 9.63%, 6/1/19, Callable 6/1/15 @ 107.22^(a)		470,173
	200,000	Peabody Energy Corp., 6.25%, 11/15/21^		171,000
	100,000	Regency Energy Partners LP / Regency Energy Finance Corp., 5.88%, 3/1/22, Callable 12/1/21 @ 100		99,750
	100,000	Rice Energy, Inc., 6.25%, 5/1/22, Callable 5/1/17 @ 104.69^(a)		93,000
	300,000	Sabine Pass Liquefaction LLC, 5.75%, 5/15/24, Callable 2/15/24 @ 100		294,375
	500,000	Samson Investment Co., 9.75%, 2/15/20, Callable 2/15/16 @ 104.88		207,188
	900,000	Sanchez Energy Corp., 7.75%, 6/15/21, Callable 6/15/17 @ 103.88^		836,999
	500,000	SandRidge Energy, Inc., 8.75%, 1/15/20, Callable 1/15/15 @ 104.38^		337,500
	300,000	SandRidge Energy, Inc., 7.50%, 3/15/21, Callable 3/15/16 @ 103.75^		192,000
	400,000	W&T Offshore, Inc., 8.50%, 6/15/19, Callable 6/15/15 @ 104.25		262,000
	506,000	Walter Energy, Inc., 9.50%, 10/15/19, Callable 10/15/16 @ 107.12^(a)		384,560
	217,000	Walter Energy, Inc., 11.00%, 4/1/20, Callable 4/1/17 @ 105.5(a)		70,525

				12,158,473

	Professional Services (0.0%):
	100,000	United Rentals (North America), Inc., 8.38%, 9/15/20, Callable 9/15/15 @ 104.19		107,250

	Real Estate Investment Trusts (REITs) (0.1%):
	1,000,000	iStar Financial, Inc., 5.00%, 7/1/19, Callable 7/1/16 @ 102.5		970,000

	Semiconductors & Semiconductor Equipment (0.1%):
	256,000	Freescale Semiconductor, Inc., 8.05%, 2/1/20, Callable 6/1/15 @ 104.03^		270,080
	480,000	Freescale Semiconductor, Inc., 10.75%, 8/1/20, Callable 8/1/15 @ 105.38		524,400

				794,480

	Software (0.4%):
	500,000	BMC Software Finance, Inc., 8.13%, 7/15/21, Callable 7/15/16 @ 106.1(a)		470,000
	1,389,000	First Data Corp., 8.25%, 1/15/21, Callable 1/15/16 @ 104.13^(a)		1,486,230
	600,000	First Data Corp., 12.63%, 1/15/21, Callable 1/15/16 @ 112.63^		712,500


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Corporate Bonds, continued
	Software, continued
$	326,000	First Data Corp., 11.75%, 8/15/21, Callable 5/15/16 @ 108.81	$	374,085
	141,000	First Data Corp., 8.75%, 1/15/22, Callable 1/15/16 @ 104.38(a)		151,575
	200,000	Infor (US), Inc., 9.38%, 4/1/19, Callable 4/1/15 @ 107.03		214,000

				3,408,390

	Specialty Retail (0.1%):
	400,000	Academy, Ltd., 9.25%, 8/1/19, Callable 2/9/15 @ 106.94(a)		420,000
	105,000	Toys “R” US Delaware, Inc., 8.25%, 10/15/19(d)		103,425

				523,425

	Trading Companies & Distributors (0.0%):
	250,000	HD Supply, Inc., 5.25%, 12/15/21, Callable 12/15/17 @ 103.94(a)		254,375

	Wireless Telecommunication Services (0.6%):
	507,448	Avaya, Inc., 4.65%, 10/26/17(d)		485,881
	124,796	Avaya, Inc., 6.50%, 3/31/18(d)		122,715
	339,000	Avaya, Inc., 7.00%, 4/1/19, Callable 4/1/15 @ 103.5^(a)		330,525
	1,326,000	Avaya, Inc., 10.50%, 3/1/21, Callable 3/1/17 @ 107.88^(a)		1,133,731
	100,000	Frontier Communications Corp., 8.50%, 4/15/20^		111,500
	500,000	Sprint Communications, Inc., 9.00%, 11/15/18(a)		568,700
	700,000	Sprint Nextel Corp., 9.13%, 3/1/17^		769,965
	500,000	Sprint Nextel Corp., 11.50%, 11/15/21		601,250
	900,000	T-Mobile USA, Inc., 6.54%, 4/28/20, Callable 4/28/16 @ 103.27		929,250

				5,053,517

	Total Corporate Bonds (Cost $55,174,121)			54,202,986

	Equity-Linked Securities (0.7%):
	Banks (0.4%):
	7,000	Barclays Bank plc, 6.00%(a)		594,020
	6,000	Credit Suisse NY, 6.00%, MTN(a)		325,980
	60,000	Goldman Sachs Group, Inc. (The), 1.00%(a)		1,066,980
	8,000	JPMorgan Chase & Co., 7.00%(a)		677,360

				2,664,340

	Capital Markets (0.1%):
	27,000	Bank of America Corp., 7.00%(a)		611,550

	Diversified Financial Services (0.1%):
	20,000	Citigroup, Inc., 6.00%(a)		602,600
	13,000	Citigroup, Inc., 7.00%(a)		571,350

				1,173,950

	Semiconductors & Semiconductor Equipment (0.1%):
	30,000	Bank of America Corp., 6.50%		1,064,100

	Total Equity-Linked Securities (Cost $5,568,941)			5,513,940


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Foreign Bonds (16.0%):
	Chemicals (0.0%):
$	100,000	Kerling plc, 10.63%, 2/1/17, Callable 2/1/17 @ 102.66+(a)	$	122,249

	Sovereign Bonds (16.0%):
	12,085,000	Bank Negara Monetary Notes, Series 0214, 3.03%, 1/8/15+(f)		3,455,895
	3,200,000	Bank Negara Monetary Notes, Series 0414, 3.22%, 1/20/15+(f)		914,084
	1,140,000	Bank Negara Monetary Notes, Series 3414, 3.10%, 1/22/15+(f)		325,590
	190,000	Bank Negara Monetary Notes, Series 5914, 3.32%, 2/10/15+(f)		54,169
	2,150,000	Bank Negara Monetary Notes, Series 0914, 3.09%, 2/17/15+(f)		612,571
	3,600,000	Bank Negara Monetary Notes, Series 3614, 3.21%, 3/3/15+(f)		1,024,373
	1,400,000	Bank Negara Monetary Notes, Series 1114, 3.00%, 3/5/15+(f)		398,293
	150,000	Bank Negara Monetary Notes, Series 1214, 2.89%, 3/12/15+(f)		42,647
	5,660,000	Bank Negara Monetary Notes, Series 1314, 3.05%, 3/24/15+(f)		1,607,404
	220,000	Bank Negara Monetary Notes, Series 4514, 3.16%, 4/7/15+(f)		62,397
	810,000	Bank Negara Monetary Notes, Series 1614, 2.93%, 4/16/15+(f)		229,541
	1,250,000	Bank Negara Monetary Notes, Series 4814, 3.24%, 4/23/15+(f)		353,999
	17,220,000	Bank Negara Monetary Notes, Series 1914, 2.91%, 4/28/15+(f)		4,874,773
	690,000	Bank Negara Monetary Notes, Series 2014, 2.96%, 5/5/15+(f)		195,148
	8,425,000	Bank Negara Monetary Notes, Series 2214, 3.06%, 5/19/15+(f)		2,380,095
	930,000	Bank Negara Monetary Notes, 3.31%, 5/28/15+(f)		262,503
	320,000	Bank Negara Monetary Notes, Series 2514, 3.07%, 6/3/15+(f)		90,272
	220,000	Bank Negara Monetary Notes, Series 5814, 3.30%, 6/4/15+(f)		62,056
	680,000	Bank Negara Monetary Notes, Series 2814, 3.08%, 6/16/15+(f)		191,589
	80,000	Bank Negara Monetary Notes, Series 3014, 3.19%, 6/30/15+(f)		22,510
	500,000	Bank Negara Monetary Notes, Series 3014, 3.36%, 6/30/15+(f)		140,684
	1,290,000	Bank Negara Monetary Notes, Series 3314, 3.04%, 7/16/15+(f)		362,505
	540,000	Bank Negara Monetary Notes, Series 3514, 3.01%, 8/4/15+(f)		151,371
	510,000	Bank Negara Monetary Notes, Series 3714, 3.26%, 8/11/15+(f)		142,913


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Foreign Bonds, continued
	Sovereign Bonds, continued
$	2,510,000	Bank Negara Monetary Notes, Series 3714, 3.40%, 8/11/15+(f)	$	703,358
	400,000	Bank Negara Monetary Notes, Series 4014, 3.16%, 8/18/15+(f)		112,012
	370,000	Bank Negara Monetary Notes, Series 4314, 3.32%, 9/8/15+(f)		103,397
	320,000	Bank Negara Monetary Notes, Series 4714, 3.15%, 9/22/15+(f)		89,301
	400,000	Bank Negara Monetary Notes, Series 5014, 3.19%, 10/1/15+(f)		111,526
	120,000	Bank Negara Monetary Notes, Series 5414, 3.23%, 10/27/15+(f)		33,371
	240,000	Bank Negara Monetary Notes, Series 5714, 3.23%, 11/3/15+(f)		66,697
	365,000	Brazil Nota do Tesouro Nacional, Series NTNB, 6.00%, 5/15/15+(g)		351,301
	75,000	Brazil Nota do Tesouro Nacional, Series NTNB, 10.00%, 8/15/16+(g)		72,609
	3,200,000	Brazil Nota do Tesouro Nacional, Series NTNF, 1.29%, 1/1/17+(f)(g)		1,147,096
	230,000	Brazil Nota do Tesouro Nacional, Series NTNB, 6.00%, 8/15/18+(g)		220,806
	4,910,000	Brazil Nota do Tesouro Nacional, Series NTNF, 0.94%, 1/1/19+(g)		1,707,043
	630,000	Brazil Nota do Tesouro Nacional, Series NTNF, 1.04%, 1/1/21+(f)(g)		214,149
	910,000	Brazil Nota do Tesouro Nacional, Series NTNB, 6.00%, 8/15/22+(g)		873,529
	1,790,000	Brazil Nota do Tesouro Nacional, Series NTNF, 1.01%, 1/1/23+(g)		597,342
	140,000	Brazil Nota do Tesouro Nacional, Series NTNB, 6.00%, 5/15/45+(g)		130,327
	1,922,000	Canada Treasury Bill, 0.86%, 2/12/15+(f)		1,653,069
	840,000	Canada Treasury Bill, 0.86%, 3/12/15+(f)		721,952
	230,000	Canada Treasury Bill, 0.89%, 4/23/15+(f)		197,457
	1,672,000	Canadian Government, 1.00%, 2/1/15+		1,439,446
	260,000	Canadian Government, 1.50%, 8/1/15+		224,493
	7,800,000	Hungary Government Bond, Series 15/A, 8.00%, 2/12/15+		30,023
	15,720,000	Hungary Government Bond, Series 15/C, 7.75%, 8/24/15+		62,566
	12,500,000	Hungary Government Bond, Series 16/C, 5.50%, 2/12/16+		49,906
	1,257,570,000	Hungary Government Bond, Series 16/D, 5.50%, 12/22/16+		5,138,533
	491,980,000	Hungary Government Bond, Series 17/B, 6.75%, 2/24/17+		2,059,764
	309,150,000	Hungary Government Bond, Series 17/A, 6.75%, 11/24/17+		1,321,462
	141,790,000	Hungary Government Bond, Series 18/B, 4.00%, 4/25/18+		561,048


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Foreign Bonds, continued
	Sovereign Bonds, continued
$	333,880,000	Hungary Government Bond, Series 18/A, 5.50%, 12/20/18+	$	1,398,424
	204,600,000	Hungary Government Bond, Series 19/A, 6.50%, 6/24/19+		894,488
	9,040,000	Hungary Government Bond, Series 20/A, 7.50%, 11/12/20+		42,248
	19,760,000	Hungary Government Bond, Series 22/A, 7.00%, 6/24/22+		92,838
	387,060,000	Hungary Government Bond, Series 23/A, 6.00%, 11/24/23+		1,755,131
	15,660,000	Hungary Government Bond, Series 25/B, 5.50%, 6/24/25+		69,069
	561,000,000	Indonesia Government, Series FR69, 7.88%, 4/15/19+		45,598
	47,000,000	Indonesia Government, Series FR31, 11.00%, 11/15/20+		4,331
	5,300,000,000	Indonesia Government, Series FR34, 12.80%, 6/15/21+		530,600
	120,000,000	Indonesia Government, Series FR53, 8.25%, 7/15/21+		9,935
	3,200,000,000	Indonesia Government, Series FR44, 10.00%, 9/15/24+		291,179
	3,300,000,000	Indonesia Government, Series FR47, 10.00%, 2/15/28+		302,545
	921,000	Irish Government, 5.90%, 10/18/19+		1,400,830
	324,000	Irish Government, 4.50%, 4/18/20+		472,290
	1,251,000	Irish Government, 5.00%, 10/18/20+		1,893,809
	958,580	Irish Government, 5.40%, 3/13/25+		1,598,038
	732,800,000	Korea Monetary Stab Bond, Series 0113, 2.06%, 1/13/15+(f)		666,348
	1,013,290,000	Korea Monetary Stab Bond, Series 1502, 2.74%, 2/2/15+		922,469
	434,060,000	Korea Monetary Stab Bond, Series 1504, 2.47%, 4/2/15+		395,342
	1,618,900,000	Korea Monetary Stab Bond, Series 1506, 2.76%, 6/2/15+		1,477,119
	368,750,000	Korea Monetary Stab Bond, Series 1506, 2.66%, 6/9/15+		336,730
	2,757,580,000	Korea Monetary Stab Bond, Series 1508, 2.80%, 8/2/15+		2,519,387
	6,041,000,000	Korea Monetary Stab Bond, Series 1510, 2.81%, 10/2/15+		5,526,365
	508,900,000	Korea Monetary Stab Bond, Series 1510, 2.13%, 10/8/15+		464,771
	2,618,100,000	Korea Monetary Stab Bond, Series 1512, 2.90%, 12/2/15+		2,399,542
	211,700,000	Korea Monetary Stab Bond, Series 1602, 2.78%, 2/2/16+		194,018
	3,372,650,000	Korea Monetary Stab Bond, Series 1604, 2.80%, 4/2/16+		3,095,338
	797,300,000	Korea Monetary Stab Bond, Series 1606, 2.79%, 6/2/16+		732,424


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Foreign Bonds, continued
	Sovereign Bonds, continued
$	1,750,600,000	Korea Monetary Stab Bond, Series 1608, 2.46%, 8/2/16+	$	1,601,528
	426,200,000	Korea Monetary Stab Bond, Series 1610, 2.22%, 10/2/16+		388,584
	767,500,000	Korea Monetary Stab Bond, Series 1612, 2.07%, 12/2/16+		697,897
	314,700,000	Korea Treasury Bond, Series 1506, 3.25%, 6/10/15+		287,774
	2,224,930,000	Korea Treasury Bond, Series 1512, 2.75%, 12/10/15+		2,036,922
	1,053,800,000	Korea Treasury Bond, Series 1606, 2.75%, 6/10/16+		967,496
	1,117,200,000	Korea Treasury Bond, Series 1612, 3.00%, 12/10/16+		1,033,639
	96,000	Letra do Tesouro Nacional, Series LTN, 10.13%, 1/1/15+(f)(g)		36,112
	160,000	Letra do Tesouro Nacional, Series LTN, 11.32%, 10/1/15+(f)(g)		54,992
	2,050,000	Letra do Tesouro Nacional, Series LTN, 11.91%, 1/1/16+(f)(g)		682,884
	1,500,000	Letra do Tesouro Nacional, Series LTN, 12.38%, 7/1/16+(f)(g)		470,013
	150,000	Letra do Tesouro Nacional, Series LTN, 12.15%, 10/1/16+(f)(g)		45,553
	3,160,000	Letra do Tesouro Nacional, Series LTN, 13.41%, 1/1/17+(f)(g)		932,567
	1,820,000	Letra do Tesouro Nacional, Series LTN, 14.77%, 1/1/18+(f)(g)		478,110
	1,915,000	Malaysian Government, Series 0409, 3.74%, 2/27/15+		548,198
	2,485,000	Malaysian Government, Series 0110, 3.84%, 8/12/15+		712,659
	3,105,000	Malaysian Government, Series 2/05, 4.72%, 9/30/15+		895,661
	13,730,000	Malaysian Government, Series 0312, 3.20%, 10/15/15+		3,916,640
	6,000,000	Malaysian Government, Series 0113, 3.17%, 7/15/16+		1,706,182
	16,796,000	Mexican Cetes, Series BI, 0.00%, 3/19/15+(h)		113,142
	182,810,000	Mexican Cetes, Series BI, 0.00%, 4/1/15+(h)		1,230,177
	43,258,000	Mexican Cetes, Series BI, 0.00%, 4/16/15+(h)		290,719
	33,120,000	Mexican Cetes, Series BI, 0.00%, 5/28/15+(h)		221,818
	33,834,000	Mexican Cetes, Series BI, 0.00%, 6/11/15+(h)		226,210
	12,010,000	Mexican Cetes, Series BI, 0.00%, 7/23/15+(h)		80,042
	44,372,000	Mexican Cetes, Series BI, 0.00%, 9/17/15+(h)		294,202
	25,153,000	Mexican Cetes, Series BI, 0.00%, 10/1/15+(h)		166,553
	4,168,000	Mexican Cetes, Series BI, 0.00%, 11/12/15+(h)		27,468
	8,604,000	Mexican Cetes, Series BI, 0.00%, 12/10/15+(h)		56,516
	1,908,400	Mexican Udibonos, 5.00%, 6/16/16+(d)(h)		137,429
	1,623,273	Mexican Udibonos, 3.50%, 12/14/17+(d)(h)		117,449


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Foreign Bonds, continued
	Sovereign Bonds, continued
$	980,288	Mexican Udibonos, 4.00%, 6/13/19+(d)(h)	$	72,523
	790,555	Mexican Udibonos, 2.50%, 12/10/20+(d)(h)		54,875
	22,590,000	Mexico Bonos Desarr, Series M, 6.00%, 6/18/15+(d)(h)		1,551,787
	21,310,000	Mexico Bonos Desarr, Series M 10, 8.00%, 12/17/15+(d)(h)		1,508,528
	28,886,000	Mexico Bonos Desarr, Series M, 6.25%, 6/16/16+(d)(h)		2,031,502
	2,407,000	Mexico Bonos Desarr, Series M 10, 7.25%, 12/15/16+(d)(h)		174,058
	1,010,000	Monetary Authority of Singapore Bill, Series 84, 0.00%, 1/2/15+(f)		762,667
	540,000	Monetary Authority of Singapore Bill, 0.27%, 1/9/15+(f)		407,710
	3,100,000	Monetary Authority of Singapore Bill, Series 168, 0.59%, 1/20/15+(f)		2,340,088
	2,641,000	Monetary Authority of Singapore Bill, Series 84, 0.62%, 1/30/15+(f)		1,993,236
	2,286,000	Monetary Authority of Singapore Bill, Series 84, 0.63%, 2/13/15+(f)		1,724,866
	1,690,000	Monetary Authority of Singapore Bill, Series 87, 0.64%, 2/23/15+(f)		1,274,928
	3,030,000	Philippine Government International Bond, Series 7-48, 7.00%, 1/27/16+		70,887
	14,210,000	Philippine Government International Bond, Series 3-20, 1.63%, 4/25/16+		314,363
	1,830,000	Philippine Government International Bond, Series 1042, 9.13%, 9/4/16+		45,414
	1,800,000	Philippine Treasury Bill, Series 364, 1.20%, 4/8/15+(f)		40,035
	960,000	Philippine Treasury Bill, Series 182, 1.36%, 5/6/15+(f)		21,292
	1,470,000	Philippine Treasury Bill, Series 364, 1.40%, 6/3/15+(f)		32,577
	440,000	Philippine Treasury Bill, Series 364, 1.43%, 7/8/15+(f)		9,733
	520,000	Philippine Treasury Bill, Series 364, 1.28%, 8/5/15+(f)		11,482
	1,800,000	Philippine Treasury Bill, Series 364, 1.49%, 9/2/15+(f)		39,676
	3,580,000	Philippine Treasury Bill, 1.49%, 10/7/15+(f)		78,638
	1,120,000	Philippine Treasury Bill, Series 364, 1.36%, 11/4/15+(f)		24,623
	2,780,000	Philippine Treasury Bill, Series 364, 1.43%, 12/2/15+(f)		60,926
	1,201,000	Poland Government Bond, Series 0415, 5.50%, 4/25/15+		343,575
	1,146,000	Poland Government Bond, Series 0715, 2.91%, 7/25/15+(f)		320,997
	15,863,000	Poland Government Bond, Series 1015, 6.25%, 10/24/15+		4,642,162


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Foreign Bonds, continued
	Sovereign Bonds, continued
$	7,419,000	Poland Government Bond, Series 0116, 2.95%, 1/25/16+(f)	$	2,058,623
	3,145,000	Poland Government Bond, Series 0416, 5.00%, 4/25/16+		925,424
	6,340,000	Poland Government Bond, Series 0716, 2.88%, 7/25/16+(f)		1,742,834
	12,465,000	Poland Government Bond, Series 1016, 4.75%, 10/25/16+		3,706,860
	3,343,000	Poland Government Bond, Series 0117, 2.69%, 1/25/17+(d)		944,895
	160,000	Poland Government Bond, Series 0417, 4.75%, 4/25/17+		48,148
	3,391,000	Poland Government Bond, Series 0121, 2.69%, 1/25/21+(d)		943,805
	15,500	Portugal Obrigacoes do Tesouro, 4.95%, 10/25/23+(a)		22,185
	38,700	Portugal Obrigacoes do Tesouro, 5.65%, 2/15/24+(a)		57,922
	2,250,000	Portugal Obrigacoes do Tesouro, 3.88%, 2/15/30+(a)		2,847,575
	180,000	Republic of Hungary, 4.38%, 7/4/17+(a)		233,398
	260,000	Republic of Hungary, 5.75%, 6/11/18+(a)		358,616
	70,000	Republic of Hungary, 6.00%, 1/11/19+		98,261
	350,000	Singapore Government , 1.13%, 4/1/16+		266,003
	200,000	Singapore Treasury Bill, 0.84%, 3/27/15+(f)		150,788
	34,500,000	Swedish Government Bond, Series 1049, 4.50%, 8/12/15+		4,545,573
	100,000	Ukraine Government, 4.95%, 10/13/15+(a)		81,669

				126,923,034

	Total Foreign Bonds (Cost $135,515,888)			127,045,283

	Yankee Dollars (3.3%):
	Chemicals (0.0%):
	300,000	INEOS Finance plc, 8.38%, 2/15/19, Callable 2/15/15 @ 106.28(a)		318,750
	200,000	INEOS Group Holdings SA, 5.88%, 2/15/19, Callable 2/15/16 @ 102.94(a)		189,500

				508,250

	Construction & Engineering (0.0%):
	400,000	Abengoa Finance SAU, 8.88%, 11/1/17(a)		380,000

	Construction Materials (0.1%):
	300,000	Cemex SAB de C.V., 5.88%, 3/25/19, Callable 3/25/16 @ 102.94(a)		304,500
	500,000	Cemex SAB de C.V., 7.25%, 1/15/21, Callable 1/15/18 @ 103.63(a)		523,750

				828,250

	Containers & Packaging (0.2%):
	700,000	Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc., 6.25%, 1/31/19, Callable 1/31/16 @ 103.13(a)		684,250


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Yankee Dollars, continued
	Containers & Packaging, continued
$	800,000	Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc., 6.75%, 1/31/21, Callable 1/31/17 @ 103.38^(a)	$	796,000

				1,480,250

	Diversified Telecommunication Services (0.0%):
	400,000	Intelsat Jackson Holding SA, 5.50%, 8/1/23, Callable 8/1/18 @ 102.75		397,560

	Energy Equipment & Services (0.2%):
	300,000	CGGVeritas, 6.50%, 6/1/21, Callable 6/1/16 @ 103.25^		228,000
	2,000,000	Ocean Rig UDW, Inc., 7.25%, 4/1/19, Callable 4/1/17 @ 105.44(a)		1,400,000

				1,628,000

	Independent Power and Renewable Electricity Producers (0.1%):
	1,000,000	InterGen NV, 7.00%, 6/30/23, Callable 6/30/18 @ 103.5^(a)		950,000

	Marine (0.1%):
	200,000	Stena AB, 7.00%, 2/1/24^(a)		183,000
	400,000	Stena International SA, 5.75%, 3/1/24^(a)		376,000

				559,000

	Media (0.1%):
	300,000	Altice SA, 7.75%, 5/15/22, Callable 5/15/17 @ 106(a)		300,563
	500,000	Numericable Group SA, 6.00%, 5/15/22, Callable 5/15/17 @ 104.5(a)		502,750

				803,313

	Metals & Mining (0.2%):
	230,000	First Quantum Minerals, Ltd., 6.75%, 2/15/20, Callable 2/15/17 @ 103.38^(a)		208,150
	230,000	First Quantum Minerals, Ltd., 7.00%, 2/15/21, Callable 2/15/18 @ 103.5^(a)		207,000
	222,222	FMG Resources Pty, Ltd., 6.88%, 2/1/18, Callable 2/9/15 @ 103.44^(a)		201,667
	250,000	FMG Resources Pty, Ltd., 8.25%, 11/1/19, Callable 11/1/15 @ 104^(a)		227,500

				844,317

	Oil, Gas & Consumable Fuels (0.0%):
	500,000	Niska Gas Storage Canada ULC / Niska Gas Storage Canada Finance Corp., 6.50%, 4/1/19, Callable 10/1/16 @ 103.25^(a)		376,250

	Real Estate Investment Trusts (REITs) (0.1%):
	500,000	Algeco Scotsman Global Finance plc, 8.50%, 10/15/18, Callable 10/15/15 @ 104.25^(a)		482,500

	Sovereign Bonds (1.8%):
	200,000	Financing of Infrastructure, 7.40%, 4/20/18(a)		119,322
	430,000	Republic of Hungary, 4.13%, 2/19/18		445,944
	1,077,000	Republic of Hungary, 6.25%, 1/29/20		1,210,279
	542,000	Republic of Hungary, 6.38%, 3/29/21		619,574


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Yankee Dollars, continued
	Sovereign Bonds, continued
$	800,000	Republic of Hungary, 5.38%, 2/21/23	$	862,000
	240,000	Republic of Iceland, 5.88%, 5/11/22(a)		268,972
	100,000	Republic of Lithuania, 7.38%, 2/11/20(a)		120,613
	230,000	Republic of Lithuania, 7.38%, 2/11/20(a)		277,409
	150,000	Republic of Lithuania, 6.13%, 3/9/21(a)		174,470
	1,840,000	Republic of Portugal, 5.13%, 10/15/24(a)		1,932,953
	200,000	Republic of Serbia, 5.25%, 11/21/17(a)		205,400
	300,000	Republic of Serbia, 4.88%, 2/25/20(a)		299,550
	320,000	Republic of Serbia, 7.25%, 9/28/21(a)		358,426
	1,400,000	Republic of Slovenia, 5.50%, 10/26/22(a)		1,552,250
	1,025,000	Republic of Slovenia, 5.85%, 5/10/23(a)		1,158,916
	484,700	Russia Foreign Bond, 7.50%, 3/31/30(a)		502,634
	200,000	Ukraine Government, 6.25%, 6/17/16(a)		129,700
	100,000	Ukraine Government, 6.58%, 11/21/16(a)		62,000
	760,000	Ukraine Government, 9.25%, 7/24/17(a)		463,600
	1,400,000	Ukraine Government, 6.75%, 11/14/17(a)		866,320
	620,000	Ukraine Government, 7.75%, 9/23/20(a)		372,000
	1,430,000	Ukraine Government, 7.95%, 2/23/21(a)		872,300
	1,240,000	Ukraine Government, 7.80%, 11/28/22(a)		756,400
	2,400,000	Ukraine Government, 7.50%, 4/17/23(a)		1,415,999

				15,047,031

	Wireless Telecommunication Services (0.4%):
	500,000	Telecom Italia SpA, 5.30%, 5/30/24(a)		506,250
	1,000,000	Virgin Media Secured Finance plc, 5.50%, 1/15/25, Callable 1/15/19 @ 102.75(a)		1,032,500
	500,000	Wind Acquisition Finance SA, 7.38%, 4/23/21, Callable 4/23/17 @ 103.69(a)		471,900

				2,010,650

	Total Yankee Dollars (Cost $28,789,781)			26,295,371

	Municipal Bond (0.1%):
	Puerto Rico (0.1%):
	569,000	Puerto Rico Commonwealth, GO, Series A, 8.00%, 7/1/35, Callable 7/1/20 @ 100		495,030

	Total Municipal Bond (Cost $530,442)			495,030

	U.S. Treasury Obligations (1.0%):
	U.S. Treasury Bills (1.0%)
	3,000,000	0.04%, 1/2/15(f)		3,000,000
	1,000,000	0.06%, 1/8/15(f)		999,998
	1,000,000	0.06%, 1/22/15(f)		999,983
	1,000,000	0.04%, 4/9/15(f)		999,926
	1,000,000	0.06%, 4/30/15^(f)		999,853
	1,000,000	0.06%, 5/14/15(f)		999,807

				7,999,567

	Total U.S. Treasury Obligations (Cos$7,999,432)			7,999,567

	U.S. Government Agency Mortgages (2.5%):
	20,000,000	Federal Home Loan Bank, 0.00%, 1/2/15(f)		20,000,000

	Total U.S. Government Agency Mortgages (Cost $20,000,000)			20,000,000

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

At December 31, 2014, the Fund’s open forward currency contracts were as follows:


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
British Pound	Bank of America	2/19/15		3,367,179	$	5,580,553	$	5,245,316	$	335,237
British Pound	Credit Suisse First Boston	2/19/15		3,094,491		5,145,824		4,820,533		325,291
British Pound	Deutsche Bank	2/19/15		212,211		331,895		330,578		1,317
British Pound	HSBC Bank	2/19/15		185,296		292,921		288,650		4,271
British Pound	State Street	2/19/15		3,515,514		5,818,955		5,476,391		342,564
European Euro	Deutsche Bank	1/7/15		312,372		426,054		377,968		48,086
European Euro	Bank of America	1/20/15		1,386,664		1,872,103		1,678,074		194,029
European Euro	Barclays Bank	1/20/15		18,218		22,849		22,047		802
European Euro	Credit Suisse First Boston	1/20/15		94,869		120,128		114,807		5,321
European Euro	Deutsche Bank	1/20/15		121,479		155,558		147,008		8,550
European Euro	HSBC Bank	1/20/15		136,727		175,175		165,459		9,716
European Euro	State Street	1/20/15		381,903		505,190		462,160		43,030
European Euro	Barclays Bank	1/21/15		97,000		132,211		117,386		14,825
European Euro	Deutsche Bank	1/26/15		1,650,000		2,239,380		1,996,870		242,510
European Euro	Deutsche Bank	1/30/15		2,630,000		3,594,684		3,183,027		411,657
European Euro	Deutsche Bank	2/3/15		2,280,000		3,090,426		2,759,493		330,933
European Euro	Deutsche Bank	2/9/15		1,411,000		1,908,660		1,707,805		200,855
European Euro	Goldman Sachs	2/9/15		181,000		252,267		219,074		33,193
European Euro	JPMorgan Chase	2/19/15		30,000		41,142		36,313		4,829
European Euro	Barclays Bank	2/20/15		210,000		288,555		254,192		34,363
European Euro	Goldman Sachs	2/23/15		17,000		23,395		20,578		2,817
European Euro	Deutsche Bank	2/25/15		277,730		381,740		336,185		45,555
European Euro	Barclays Bank	2/26/15		170,862		234,619		206,825		27,794
European Euro	Bank of America	2/27/15		76,694		104,864		92,837		12,027
European Euro	Deutsche Bank	3/5/15		43,000		59,282		52,054		7,228
European Euro	Barclays Bank	3/9/15		141,063		193,749		170,772		22,977
European Euro	Deutsche Bank	3/9/15		660,000		906,147		799,002		107,145
European Euro	HSBC Bank	3/9/15		15,000		20,621		18,159		2,462
European Euro	Citibank	3/10/15		1,704,605		2,359,216		2,063,632		295,584
European Euro	Morgan Stanley	3/10/15		43,000		59,554		52,057		7,497
European Euro	Deutsche Bank	3/16/15		134,000		185,857		162,234		23,623
European Euro	JPMorgan Chase	3/16/15		15,000		20,787		18,160		2,627
European Euro	Barclays Bank	3/17/15		10,012		13,962		12,122		1,840
European Euro	Citibank	3/17/15		10,643		14,850		12,886		1,964
European Euro	Barclays Bank	3/23/15		9,076		12,638		10,989		1,649
European Euro	Deutsche Bank	3/23/15		173,000		240,816		209,466		31,350
European Euro	Deutsche Bank	3/26/15		78,000		107,418		94,444		12,974
European Euro	Barclays Bank	3/27/15		200,000		276,200		242,168		34,032
European Euro	Deutsche Bank	3/31/15		4,566		6,285		5,529		756
European Euro	Goldman Sachs	3/31/15		130,000		165,705		157,415		8,290
European Euro	Barclays Bank	4/2/15		17,912		24,691		21,690		3,001
European Euro	Deutsche Bank	4/7/15		192,660		265,773		233,307		32,466
European Euro	HSBC Bank	4/10/15		73,000		100,643		88,404		12,239
European Euro	Deutsche Bank	4/13/15		77,961		107,607		94,415		13,192
European Euro	Standard Charter	4/13/15		37,000		51,143		44,809		6,334
European Euro	JPMorgan Chase	4/14/15		99,000		137,219		119,896		17,323
European Euro	Deutsche Bank	4/15/15		370,000		513,264		448,099		65,165
European Euro	HSBC Bank	4/16/15		78,849		109,491		95,493		13,998
European Euro	Barclays Bank	4/22/15		16,935		23,372		20,511		2,861
European Euro	JPMorgan Chase	4/22/15		5,188		7,177		6,284		893
European Euro	Barclays Bank	4/30/15		11,783		16,337		14,272		2,065
European Euro	Standard Charter	4/30/15		380,000		525,867		460,283		65,584


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
European Euro	Barclays Bank	5/5/15		228,900	$	317,223	$	277,274	$	39,949
European Euro	Barclays Bank	5/7/15		112,000		155,432		135,672		19,760
European Euro	Goldman Sachs	5/7/15		317,570		440,832		384,691		56,141
European Euro	Deutsche Bank	5/12/15		1,425,000		1,973,340		1,726,277		247,063
European Euro	Citibank	5/13/15		136,787		188,451		165,709		22,742
European Euro	Goldman Sachs	5/13/15		142,000		195,654		172,024		23,630
European Euro	Standard Charter	5/13/15		56,000		77,032		67,840		9,192
European Euro	Goldman Sachs	5/14/15		87,000		119,837		105,396		14,441
European Euro	Bank of America	5/18/15		1,201,984		1,500,917		1,456,202		44,715
European Euro	Barclays Bank	5/18/15		266,076		365,248		322,351		42,897
European Euro	Credit Suisse First Boston	5/18/15		1,222,355		1,526,170		1,480,881		45,289
European Euro	Deutsche Bank	5/18/15		1,231,873		1,537,755		1,492,412		45,343
European Euro	HSBC Bank	5/18/15		52,599		65,096		63,724		1,372
European Euro	State Street	5/18/15		21,956		27,325		26,600		725
European Euro	JPMorgan Chase	5/20/15		327,027		410,450		396,201		14,249
European Euro	Deutsche Bank	5/21/15		130,000		163,254		157,500		5,754
European Euro	Goldman Sachs	5/21/15		289,000		396,742		350,134		46,608
European Euro	Barclays Bank	5/22/15		363,741		498,734		440,690		58,044
European Euro	JPMorgan Chase	5/26/15		172,504		235,816		209,006		26,810
European Euro	Barclays Bank	5/29/15		72,758		99,061		88,156		10,905
European Euro	Goldman Sachs	6/1/15		760,000		1,034,121		920,874		113,247
European Euro	Barclays Bank	6/5/15		237,868		323,964		288,231		35,733
European Euro	HSBC Bank	6/8/15		1,113,075		1,449,602		1,348,786		100,816
European Euro	Deutsche Bank	6/10/15		285,500		390,079		345,966		44,113
European Euro	Deutsche Bank	6/15/15		124,000		168,066		150,270		17,796
European Euro	Barclays Bank	6/22/15		28,929		39,356		35,060		4,296
European Euro	Deutsche Bank	6/22/15		420,000		571,116		509,016		62,100
European Euro	Barclays Bank	7/16/15		82,000		112,001		99,420		12,581
European Euro	Morgan Stanley	7/16/15		277,000		378,205		335,844		42,361
European Euro	Deutsche Bank	7/17/15		514,000		698,912		623,203		75,709
European Euro	Barclays Bank	7/20/15		129,000		174,889		156,416		18,473
European Euro	Deutsche Bank	7/20/15		360,000		488,160		436,510		51,650
European Euro	JPMorgan Chase	7/20/15		910,000		1,233,568		1,103,401		130,167
European Euro	Deutsche Bank	7/21/15		470,000		637,250		569,899		67,351
European Euro	Deutsche Bank	7/22/15		71,000		96,269		86,093		10,176
European Euro	Morgan Stanley	7/22/15		366,000		495,469		443,803		51,666
European Euro	Deutsche Bank	7/23/15		93,795		127,062		113,736		13,326
European Euro	Deutsche Bank	7/27/15		207,975		280,467		252,210		28,257
European Euro	Goldman Sachs	7/27/15		197,000		265,783		238,901		26,882
European Euro	Citibank	7/28/15		60,360		81,421		73,200		8,221
European Euro	Barclays Bank	7/29/15		19,995		26,919		24,248		2,671
European Euro	Deutsche Bank	7/29/15		9,978		13,442		12,101		1,341
European Euro	JPMorgan Chase	7/31/15		380,000		510,895		460,859		50,036
European Euro	Barclays Bank	8/4/15		97,592		130,904		118,368		12,536
European Euro	HSBC Bank	8/4/15		380,000		509,970		460,895		49,075
European Euro	UBS Warburg	8/4/15		380,000		509,960		460,895		49,065
European Euro	Barclays Bank	8/5/15		229,000		307,839		277,755		30,084
European Euro	JPMorgan Chase	8/5/15		269,500		362,305		326,878		35,427
European Euro	Citibank	8/10/15		44,168		59,068		53,576		5,492
European Euro	Deutsche Bank	8/11/15		180,000		241,192		218,349		22,843
European Euro	JPMorgan Chase	8/11/15		239,500		320,780		290,525		30,255
European Euro	Goldman Sachs	8/12/15		61,000		81,907		73,997		7,910
European Euro	Morgan Stanley	8/14/15		66,000		82,431		80,066		2,365
European Euro	Morgan Stanley	8/17/15		66,000		88,607		80,070		8,537
European Euro	Barclays Bank	8/18/15		237,000		318,058		287,531		30,527
European Euro	Deutsche Bank	8/20/15		133,000		178,396		161,364		17,032
European Euro	JPMorgan Chase	8/20/15		263,000		352,913		319,087		33,826


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
European Euro	Barclays Bank	8/26/15		75,988	$	101,112	$	92,204	$	8,908
European Euro	Deutsche Bank	8/31/15		28,980		38,330		35,168		3,162
European Euro	Deutsche Bank	9/2/15		49,000		64,753		59,465		5,288
European Euro	Deutsche Bank	9/8/15		137,800		181,789		167,249		14,540
European Euro	JPMorgan Chase	9/8/15		1,125,000		1,463,738		1,365,421		98,317
European Euro	Barclays Bank	9/21/15		19,406		25,254		23,559		1,695
European Euro	Deutsche Bank	9/23/15		229,000		295,742		278,020		17,722
European Euro	Barclays Bank	9/24/15		45,864		59,136		55,683		3,453
European Euro	Citibank	9/28/15		13,451		17,348		16,332		1,016
European Euro	Deutsche Bank	9/28/15		107,000		137,798		129,917		7,881
European Euro	Barclays Bank	9/29/15		200,000		255,361		242,841		12,520
European Euro	HSBC Bank	9/30/15		180,000		229,362		218,561		10,801
European Euro	Deutsche Bank	10/1/15		1,320,000		1,683,818		1,602,810		81,008
European Euro	Deutsche Bank	10/9/15		420,000		532,791		510,064		22,727
European Euro	Barclays Bank	10/14/15		1,688,000		2,156,167		2,050,172		105,995
European Euro	JPMorgan Chase	10/14/15		3,156,000		4,032,529		3,833,142		199,387
European Euro	Deutsche Bank	10/15/15		320,000		406,096		388,666		17,430
European Euro	Barclays Bank	10/16/15		1,172,000		1,494,886		1,423,516		71,370
European Euro	Deutsche Bank	10/21/15		570,000		732,678		692,392		40,286
European Euro	Barclays Bank	10/22/15		3,724,000		4,771,245		4,523,712		247,533
European Euro	Deutsche Bank	10/26/15		319,000		404,923		387,534		17,389
European Euro	Barclays Bank	10/27/15		175,515		222,899		213,227		9,672
European Euro	Deutsche Bank	10/30/15		1,747,075		2,230,927		2,122,581		108,346
European Euro	Deutsche Bank	11/3/15		7,376		9,342		8,962		380
European Euro	Barclays Bank	11/6/15		49,418		62,081		60,048		2,033
European Euro	Citibank	11/9/15		1,793,000		2,245,060		2,178,800		66,260
European Euro	Deutsche Bank	11/9/15		3,620,000		4,538,756		4,398,916		139,840
European Euro	Citibank	11/12/15		1,801,000		2,257,337		2,188,649		68,688
European Euro	JPMorgan Chase	11/12/15		278,508		348,984		338,454		10,530
European Euro	Deutsche Bank	11/16/15		335,703		420,116		407,992		12,124
European Euro	Deutsche Bank	11/19/15		93,863		117,333		114,082		3,251
European Euro	Deutsche Bank	11/20/15		1,113,000		1,396,993		1,352,773		44,220
European Euro	Deutsche Bank	12/4/15		100,000		124,770		121,576		3,194
European Euro	Standard Charter	12/9/15		76,800		94,873		93,379		1,494
European Euro	Bank of America	12/15/15		433,000		538,414		526,536		11,878
European Euro	JPMorgan Chase	12/15/15		97,000		121,088		117,954		3,134
European Euro	Deutsche Bank	12/17/15		525,093		655,631		638,548		17,083
Japanese Yen	Deutsche Bank	1/7/15		5,989,000		57,509		50,012		7,497
Japanese Yen	Goldman Sachs	1/8/15		23,997,000		231,383		200,390		30,993
Japanese Yen	Citibank	1/13/15		1,520,000		14,533		12,694		1,839
Japanese Yen	Standard Charter	1/14/15		4,550,000		43,549		37,997		5,552
Japanese Yen	Barclays Bank	1/15/15		101,530,000		979,037		847,893		131,144
Japanese Yen	HSBC Bank	1/15/15		5,640,000		54,231		47,101		7,130
Japanese Yen	JPMorgan Chase	1/15/15		66,000,000		636,362		551,177		85,185
Japanese Yen	Deutsche Bank	1/16/15		38,540,000		372,846		321,857		50,989
Japanese Yen	Standard Charter	1/16/15		7,340,000		71,040		61,298		9,742
Japanese Yen	JPMorgan Chase	1/20/15		33,615,000		323,785		280,737		43,048
Japanese Yen	Goldman Sachs	1/27/15		7,610,000		73,615		63,559		10,056
Japanese Yen	Deutsche Bank	1/28/15		7,248,281		70,992		60,539		10,453
Japanese Yen	HSBC Bank	1/28/15		9,353,364		91,399		78,121		13,278
Japanese Yen	Deutsche Bank	1/30/15		121,466,500		1,191,642		1,014,523		177,119
Japanese Yen	JPMorgan Chase	2/6/15		100,100,000		991,397		836,112		155,285
Japanese Yen	Standard Charter	2/6/15		100,170,000		991,807		836,697		155,110
Japanese Yen	Barclays Bank	2/9/15		100,180,000		991,778		836,801		154,977
Japanese Yen	JPMorgan Chase	2/9/15		100,400,000		991,800		838,638		153,162
Japanese Yen	Citibank	2/10/15		5,590,000		55,059		46,694		8,365
Japanese Yen	Goldman Sachs	2/12/15		3,771,000		36,934		31,500		5,434


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Japanese Yen	HSBC Bank	2/12/15		53,860,000	$	528,441	$	449,902	$	78,539
Japanese Yen	JPMorgan Chase	2/12/15		53,831,000		528,776		449,660		79,116
Japanese Yen	Citibank	2/13/15		71,350,000		700,059		596,004		104,055
Japanese Yen	JPMorgan Chase	2/13/15		35,730,000		349,800		298,462		51,338
Japanese Yen	Citibank	2/17/15		35,630,000		349,177		297,636		51,541
Japanese Yen	Goldman Sachs	2/18/15		36,744,860		361,981		306,951		55,030
Japanese Yen	JPMorgan Chase	2/18/15		37,560,000		369,893		313,761		56,132
Japanese Yen	HSBC Bank	2/24/15		4,020,000		39,403		33,583		5,820
Japanese Yen	Barclays Bank	2/25/15		17,870,000		174,469		149,287		25,182
Japanese Yen	JPMorgan Chase	2/25/15		4,000,000		39,039		33,416		5,623
Japanese Yen	Barclays Bank	2/26/15		35,700,000		349,086		298,243		50,843
Japanese Yen	Deutsche Bank	2/27/15		11,991,000		117,640		100,175		17,465
Japanese Yen	JPMorgan Chase	3/3/15		9,700,000		95,259		81,039		14,220
Japanese Yen	HSBC Bank	3/4/15		4,600,000		45,076		38,431		6,645
Japanese Yen	Barclays Bank	3/9/15		64,145,400		627,287		535,943		91,344
Japanese Yen	JPMorgan Chase	3/16/15		44,142,850		431,188		368,850		62,338
Japanese Yen	Citibank	3/17/15		2,260,084		22,088		18,885		3,203
Japanese Yen	Citibank	3/19/15		46,322,000		456,311		387,072		69,239
Japanese Yen	Morgan Stanley	3/19/15		7,060,000		69,922		58,994		10,928
Japanese Yen	Deutsche Bank	3/24/15		20,538,000		201,124		171,628		29,496
Japanese Yen	Barclays Bank	3/25/15		25,522,830		249,904		213,287		36,617
Japanese Yen	Citibank	4/15/15		3,500,000		34,576		29,256		5,320
Japanese Yen	Morgan Stanley	4/16/15		68,447,040		673,280		572,144		101,136
Japanese Yen	Barclays Bank	4/17/15		32,710,000		321,923		273,424		48,499
Japanese Yen	JPMorgan Chase	4/21/15		19,660,000		192,815		164,347		28,468
Japanese Yen	JPMorgan Chase	4/22/15		24,420,000		239,547		204,140		35,407
Japanese Yen	Citibank	5/12/15		5,590,000		55,198		46,741		8,457
Japanese Yen	Goldman Sachs	5/13/15		7,475,000		73,638		62,504		11,134
Japanese Yen	Standard Charter	5/13/15		5,588,000		55,098		46,725		8,373
Japanese Yen	Citibank	5/14/15		5,587,000		54,964		46,717		8,247
Japanese Yen	Bank of America	5/18/15		84,777,550		835,000		708,927		126,073
Japanese Yen	Bank of America	5/19/15		84,522,875		835,000		706,806		128,194
Japanese Yen	Barclays Bank	5/19/15		84,752,500		835,000		708,726		126,274
Japanese Yen	Citibank	5/19/15		84,652,200		835,000		707,887		127,113
Japanese Yen	HSBC Bank	5/19/15		84,820,600		835,000		709,295		125,705
Japanese Yen	JPMorgan Chase	5/20/15		5,564,000		47,420		46,528		892
Japanese Yen	Goldman Sachs	6/1/15		48,990,000		482,670		409,734		72,936
Japanese Yen	Citibank	6/9/15		51,300,000		502,291		429,096		73,195
Japanese Yen	HSBC Bank	6/9/15		76,900,000		752,866		643,225		109,641
Japanese Yen	Barclays Bank	6/10/15		60,420,000		591,729		505,386		86,343
Japanese Yen	Citibank	6/10/15		95,140,000		930,355		795,803		134,552
Japanese Yen	HSBC Bank	6/10/15		64,350,000		630,453		538,258		92,195
Japanese Yen	Deutsche Bank	6/11/15		21,300,000		208,537		178,167		30,370
Japanese Yen	JPMorgan Chase	6/11/15		59,620,000		583,583		498,700		84,883
Japanese Yen	Citibank	6/17/15		2,416,000		23,749		20,210		3,539
Japanese Yen	JPMorgan Chase	6/17/15		25,100,000		246,755		209,968		36,787
Japanese Yen	Deutsche Bank	6/22/15		69,330,000		680,841		579,998		100,843
Japanese Yen	Barclays Bank	6/30/15		16,411,000		161,960		137,305		24,655
Japanese Yen	Deutsche Bank	7/13/15		26,073,000		257,181		218,209		38,972
Japanese Yen	Morgan Stanley	7/23/15		50,187,445		497,122		420,123		76,999
Japanese Yen	Citibank	7/24/15		74,785,000		739,991		626,045		113,946
Japanese Yen	JPMorgan Chase	7/24/15		115,000,000		1,137,319		962,696		174,623
Japanese Yen	JPMorgan Chase	7/27/15		40,100,000		396,794		335,711		61,083
Japanese Yen	Barclays Bank	7/29/15		8,700,000		85,754		72,838		12,916
Japanese Yen	Citibank	8/5/15		46,922,100		458,559		392,905		65,654
Japanese Yen	Barclays Bank	8/11/15		2,240,000		21,980		18,759		3,221
Japanese Yen	Citibank	8/11/15		2,240,000		21,988		18,759		3,229


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Japanese Yen	Deutsche Bank	8/12/15		2,240,000	$	22,072	$	18,760	$	3,312
Japanese Yen	JPMorgan Chase	8/31/15		22,800,000		220,423		191,031		29,392
Japanese Yen	Barclays Bank	9/18/15		2,251,755		21,121		18,874		2,247
Japanese Yen	JPMorgan Chase	9/29/15		2,255,332		20,760		18,909		1,851
Japanese Yen	Deutsche Bank	10/7/15		399,565,980		3,656,016		3,350,616		305,400
Japanese Yen	JPMorgan Chase	10/7/15		329,300,000		3,039,926		2,761,392		278,534
Japanese Yen	HSBC Bank	10/9/15		163,800,000		1,520,221		1,373,630		146,591
Japanese Yen	Barclays Bank	10/13/15		82,900,000		769,901		695,265		74,636
Japanese Yen	Deutsche Bank	10/13/15		81,800,000		760,152		686,039		74,113
Japanese Yen	JPMorgan Chase	10/19/15		33,615,000		318,032		281,960		36,072
Japanese Yen	JPMorgan Chase	10/20/15		63,490,000		600,520		532,562		67,958
Japanese Yen	Barclays Bank	10/22/15		26,770,000		251,574		224,560		27,014
Japanese Yen	Deutsche Bank	10/28/15		20,662,500		192,523		173,351		19,172
Japanese Yen	JPMorgan Chase	11/5/15		91,650,000		825,862		769,053		56,809
Japanese Yen	Barclays Bank	11/6/15		536,000,000		4,752,194		4,497,782		254,412
Japanese Yen	Citibank	11/12/15		94,163,000		823,830		790,266		33,564
Japanese Yen	HSBC Bank	11/12/15		3,336,000		29,243		27,997		1,246
Japanese Yen	JPMorgan Chase	11/12/15		36,450,000		320,265		305,908		14,357
Japanese Yen	Deutsche Bank	11/16/15		45,848,000		399,738		384,816		14,922
Japanese Yen	Deutsche Bank	11/18/15		6,194,000		53,406		51,990		1,416
Japanese Yen	Citibank	11/19/15		7,667,000		66,206		64,356		1,850
Japanese Yen	Citibank	11/20/15		8,613,000		74,314		72,298		2,016
Japanese Yen	HSBC Bank	11/24/15		1,616,000		13,824		13,566		258
Japanese Yen	Morgan Stanley	12/16/15		41,392,500		350,514		347,657		2,857
Japanese Yen	Deutsche Bank	12/21/15		69,210,000		592,450		581,364		11,086
Japanese Yen	HSBC Bank	12/21/15		69,320,000		592,732		582,288		10,444
Japanese Yen	Barclays Bank	12/22/15		34,730,000		293,720		291,739		1,981
Japanese Yen	Citibank	12/22/15		54,180,000		458,841		455,123		3,718
Korean Won	Bank of America	2/12/15		723,226,042		690,422		657,468		32,954
Korean Won	Credit Suisse First Boston	2/12/15		909,682,762		876,322		826,972		49,350
Korean Won	HSBC Bank	2/12/15		955,832,073		922,729		868,925		53,804
Korean Won	HSBC Bank	2/12/15		32,868,512		29,716		29,881		(165	)
Malaysian Ringgit	JPMorgan Chase	1/8/15		86,100		26,656		24,619		2,037
Malaysian Ringgit	JPMorgan Chase	1/9/15		46,000		14,241		13,152		1,089
Malaysian Ringgit	JPMorgan Chase	1/12/15		14,000		4,333		4,002		331
Malaysian Ringgit	JPMorgan Chase	2/4/15		2,661,000		822,515		759,241		63,274
Malaysian Ringgit	HSBC Bank	2/18/15		1,235,558		374,128		352,133		21,995
Malaysian Ringgit	HSBC Bank	2/23/15		720,000		217,951		205,117		12,834
Malaysian Ringgit	HSBC Bank	3/11/15		2,909,811		880,027		827,859		52,168
Malaysian Ringgit	JPMorgan Chase	3/12/15		735,120		226,749		209,129		17,620
Malaysian Ringgit	HSBC Bank	3/31/15		500,000		151,057		142,013		9,044
Malaysian Ringgit	JPMorgan Chase	4/2/15		2,190,750		674,928		622,148		52,780
Malaysian Ringgit	HSBC Bank	4/10/15		340,000		102,657		96,505		6,152
Malaysian Ringgit	Deutsche Bank	5/19/15		2,093,018		643,135		592,535		50,600
Malaysian Ringgit	JPMorgan Chase	7/2/15		988,250		302,875		278,958		23,917
Malaysian Ringgit	Deutsche Bank	7/3/15		177,180		54,303		50,009		4,294
Swiss Franc	Bank of America	2/12/15		505,362		559,817		508,873		50,944
Swiss Franc	Credit Suisse First Boston	2/12/15		15,425		16,458		15,532		926
Swiss Franc	Deutsche Bank	2/12/15		8,722		9,527		8,783		744
Swiss Franc	Deutsche Bank	2/12/15		18,943		20,130		19,075		1,055
Swiss Franc	HSBC Bank	2/12/15		50,597		53,139		50,948		2,191
Swiss Franc	State Street	2/12/15		51,424		53,748		51,786		1,962

					$	155,650,494	$	142,203,602	$	13,446,892

Long Contracts:
Brazilian Real	Deutsche Bank	10/30/15		435,000	$	159,985	$	150,493	$	(9,492	)
British Pound	Bank of America	2/19/15		235,979		378,690		367,603		(11,087	)


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
British Pound	Barclays Bank	2/19/15		76,394	$	122,865	$	119,005	$	(3,860	)
British Pound	Credit Suisse First Boston	2/19/15		422,337		679,245		657,907		(21,338	)
British Pound	Deutsche Bank	2/19/15		255,408		414,909		397,868		(17,041	)
British Pound	HSBC Bank	2/19/15		803,172		1,269,162		1,251,164		(17,998	)
British Pound	State Street	2/19/15		499,191		804,192		777,628		(26,564	)
Chilean Peso	Morgan Stanley	1/12/15		8,700,000		15,774		14,328		(1,446	)
Chilean Peso	Deutsche Bank	1/30/15		111,647,000		185,325		183,509		(1,816	)
Chilean Peso	Deutsche Bank	2/2/15		110,603,000		184,590		181,749		(2,841	)
Chilean Peso	Deutsche Bank	2/3/15		91,616,000		152,897		150,536		(2,361	)
Chilean Peso	Barclays Bank	2/10/15		4,400,000		7,569		7,226		(343	)
Chilean Peso	Morgan Stanley	2/12/15		10,560,000		18,346		17,339		(1,007	)
Chilean Peso	Deutsche Bank	2/17/15		3,930,000		6,840		6,450		(390	)
Chilean Peso	Deutsche Bank	2/18/15		4,400,000		7,530		7,221		(309	)
Chilean Peso	JPMorgan Chase	2/20/15		2,150,000		3,685		3,528		(157	)
Chilean Peso	Morgan Stanley	2/23/15		5,200,000		9,104		8,530		(574	)
Chilean Peso	JPMorgan Chase	2/24/15		7,300,000		12,789		11,974		(815	)
Chilean Peso	Barclays Bank	2/25/15		153,759,000		256,308		252,188		(4,120	)
Chilean Peso	Morgan Stanley	2/25/15		5,600,000		9,767		9,185		(582	)
Chilean Peso	Deutsche Bank	2/26/15		3,890,000		6,772		6,380		(392	)
Chilean Peso	Deutsche Bank	3/3/15		700,000		1,208		1,148		(60	)
Chilean Peso	JPMorgan Chase	3/12/15		990,530,400		1,708,547		1,622,625		(85,922	)
Chilean Peso	JPMorgan Chase	3/20/15		4,300,000		7,294		7,039		(255	)
Chilean Peso	Morgan Stanley	5/11/15		4,500,000		7,680		7,335		(345	)
Chilean Peso	Barclays Bank	6/4/15		12,000,000		21,116		19,521		(1,595	)
Chilean Peso	Morgan Stanley	6/5/15		2,500,000		4,380		4,067		(313	)
Chilean Peso	Deutsche Bank	7/10/15		162,750,000		285,652		263,975		(21,677	)
Chilean Peso	Morgan Stanley	7/20/15		305,012,200		531,658		494,327		(37,331	)
Chilean Peso	Morgan Stanley	7/28/15		8,010,000		13,782		12,973		(809	)
Chilean Peso	Deutsche Bank	8/12/15		4,400,000		7,435		7,118		(317	)
Chilean Peso	Morgan Stanley	8/18/15		4,010,000		6,757		6,484		(273	)
Chilean Peso	JPMorgan Chase	8/20/15		2,150,000		3,624		3,476		(148	)
Chilean Peso	Deutsche Bank	8/27/15		2,610,000		4,355		4,217		(138	)
Chilean Peso	JPMorgan Chase	8/28/15		3,900,000		6,509		6,301		(208	)
Chilean Peso	Deutsche Bank	9/8/15		700,000		1,156		1,130		(26	)
European Euro	Bank of America	1/20/15		10,199		12,720		12,343		(377	)
European Euro	Credit Suisse First Boston	1/20/15		18,463		22,901		22,344		(557	)
European Euro	Deutsche Bank	1/20/15		176,775		221,464		213,924		(7,540	)
European Euro	HSBC Bank	1/20/15		49,110		61,080		59,431		(1,649	)
European Euro	State Street	1/20/15		48,004		59,755		58,093		(1,662	)
European Euro	Deutsche Bank	1/26/15		658,000		805,063		796,327		(8,736	)
Indian Rupee	JPMorgan Chase	1/14/15		5,537,000		89,309		87,465		(1,844	)
Indian Rupee	Deutsche Bank	1/20/15		8,080,848		129,450		127,483		(1,967	)
Indian Rupee	JPMorgan Chase	1/20/15		5,537,000		89,059		87,351		(1,708	)
Indian Rupee	Deutsche Bank	1/27/15		4,760,000		75,978		74,980		(998	)
Indian Rupee	JPMorgan Chase	1/27/15		26,253,400		422,013		413,545		(8,468	)
Indian Rupee	Deutsche Bank	1/30/15		15,866,666		255,066		249,770		(5,296	)
Indian Rupee	Deutsche Bank	2/2/15		7,933,333		127,479		124,814		(2,665	)
Indian Rupee	JPMorgan Chase	2/4/15		14,490,000		232,577		227,883		(4,694	)
Indian Rupee	Citibank	2/9/15		25,456,000		407,018		399,966		(7,052	)
Indian Rupee	HSBC Bank	2/13/15		8,549,600		137,079		134,230		(2,849	)
Indian Rupee	HSBC Bank	2/20/15		8,645,260		138,373		135,552		(2,821	)
Indian Rupee	JPMorgan Chase	2/23/15		26,253,400		417,875		411,401		(6,474	)
Indian Rupee	JPMorgan Chase	3/13/15		5,537,000		88,155		86,425		(1,730	)
Indian Rupee	HSBC Bank	10/8/15		258,409,000		3,950,000		3,884,291		(65,709	)
Korean Won	Bank of America	2/12/15		14,573,214		13,535		13,248		(287	)
Korean Won	Bank of America	2/12/15		37,119,000		34,691		33,744		(947	)
Korean Won	HSBC Bank	2/12/15		161,840,975		146,966		147,127		161


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Korean Won	JPMorgan Chase	5/15/15		258,825,900	$	249,015	$	234,912	$	(14,103	)
Korean Won	JPMorgan Chase	5/18/15		44,818,000		43,045		40,675		(2,370	)
Korean Won	JPMorgan Chase	5/20/15		213,852,600		205,095		194,080		(11,015	)
Korean Won	JPMorgan Chase	5/21/15		270,144,000		259,879		245,164		(14,715	)
Korean Won	Deutsche Bank	6/29/15		316,000,000		305,196		286,621		(18,575	)
Korean Won	HSBC Bank	9/30/15		317,000,000		301,445		287,488		(13,957	)
Malaysian Ringgit	JPMorgan Chase	1/8/15		86,100		25,695		24,619		(1,076	)
Malaysian Ringgit	JPMorgan Chase	1/9/15		46,000		13,738		13,152		(586	)
Malaysian Ringgit	JPMorgan Chase	1/12/15		14,000		4,185		4,002		(183	)
Malaysian Ringgit	JPMorgan Chase	2/4/15		2,661,000		786,371		759,241		(27,130	)
Malaysian Ringgit	HSBC Bank	2/18/15		1,235,558		365,636		352,133		(13,503	)
Malaysian Ringgit	HSBC Bank	2/23/15		720,000		214,286		205,117		(9,169	)
Malaysian Ringgit	HSBC Bank	3/11/15		2,909,811		876,740		827,859		(48,881	)
Malaysian Ringgit	JPMorgan Chase	3/12/15		735,120		219,819		209,129		(10,690	)
Malaysian Ringgit	HSBC Bank	3/31/15		500,000		148,907		142,013		(6,894	)
Malaysian Ringgit	JPMorgan Chase	4/2/15		1,202,500		360,775		341,496		(19,279	)
Malaysian Ringgit	JPMorgan Chase	4/2/15		988,250		303,293		280,652		(22,641	)
Malaysian Ringgit	HSBC Bank	4/10/15		340,000		102,087		96,505		(5,582	)
Malaysian Ringgit	Deutsche Bank	5/19/15		2,093,018		635,017		592,535		(42,482	)
Malaysian Ringgit	JPMorgan Chase	7/2/15		988,250		301,719		278,958		(22,761	)
Malaysian Ringgit	Deutsche Bank	7/3/15		177,180		54,167		50,010		(4,157	)
Mexican Peso	Citibank	1/12/15		3,813,785		284,187		258,364		(25,823	)
Mexican Peso	Citibank	1/20/15		2,130,000		144,517		144,226		(291	)
Mexican Peso	HSBC Bank	3/10/15		10,223,640		772,062		690,167		(81,895	)
Mexican Peso	Citibank	3/13/15		1,070,200		80,660		72,232		(8,428	)
Mexican Peso	JPMorgan Chase	3/13/15		28,297,935		2,079,507		1,909,947		(169,560	)
Mexican Peso	Citibank	3/17/15		10,351,100		706,098		698,464		(7,634	)
Mexican Peso	Citibank	3/24/15		2,637,800		192,963		177,913		(15,050	)
Mexican Peso	HSBC Bank	5/19/15		51,197,819		3,832,000		3,441,282		(390,718	)
Mexican Peso	Citibank	6/8/15		2,731,280		205,085		183,359		(21,726	)
Mexican Peso	Citibank	6/9/15		2,728,000		205,693		183,127		(22,566	)
Mexican Peso	Citibank	6/12/15		5,548,030		414,899		372,363		(42,536	)
Mexican Peso	Citibank	6/15/15		2,384,400		178,513		160,003		(18,510	)
Mexican Peso	Citibank	6/22/15		2,146,000		160,293		143,943		(16,350	)
Mexican Peso	Citibank	7/10/15		3,689,235		277,115		247,166		(29,949	)
Mexican Peso	HSBC Bank	9/4/15		11,644,900		866,275		777,225		(89,050	)
Mexican Peso	Deutsche Bank	10/14/15		19,592,000		1,432,583		1,304,109		(128,474	)
Mexican Peso	Citibank	10/22/15		6,418,829		463,554		427,027		(36,527	)
Mexican Peso	HSBC Bank	11/9/15		27,672,950		1,991,003		1,838,757		(152,246	)
Mexican Peso	Citibank	12/11/15		3,316,000		225,348		219,856		(5,492	)
Mexican Peso	Citibank	12/17/15		4,769,000		315,252		316,063		811
Mexican Peso	Citibank	12/17/15		5,058,000		335,300		335,217		(83	)
Mexican Peso	HSBC Bank	12/17/15		5,003,000		331,000		331,572		572
Mexican Peso	Citibank	12/18/15		4,161,750		275,479		275,800		321
Mexican Peso	HSBC Bank	12/18/15		3,143,000		207,504		208,287		783
Phillipine Peso	JPMorgan Chase	6/25/15		6,140,000		139,362		136,331		(3,031	)
Phillipine Peso	Deutsche Bank	6/26/15		16,461,720		373,062		365,497		(7,565	)
Phillipine Peso	JPMorgan Chase	6/29/15		5,340,000		121,121		118,548		(2,573	)
Phillipine Peso	JPMorgan Chase	7/1/15		9,520,000		217,630		211,331		(6,299	)
Phillipine Peso	Deutsche Bank	7/20/15		28,970,800		661,796		642,737		(19,059	)
Phillipine Peso	JPMorgan Chase	9/25/15		3,020,000		67,216		66,863		(353	)
Singapore Dollar	JPMorgan Chase	1/26/15		348,966		281,311		263,355		(17,956	)
Singapore Dollar	HSBC Bank	2/9/15		123,000		98,716		92,809		(5,907	)
Singapore Dollar	Barclays Bank	2/12/15		34,819		27,802		26,272		(1,530	)
Singapore Dollar	Deutsche Bank	2/12/15		246,000		196,172		185,614		(10,558	)
Singapore Dollar	Barclays Bank	2/17/15		103,000		82,535		77,714		(4,821	)
Singapore Dollar	HSBC Bank	2/17/15		77,000		61,636		58,097		(3,539	)


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Singapore Dollar	HSBC Bank	2/18/15		77,000	$	60,918	$	58,096	$	(2,822	)
Singapore Dollar	Deutsche Bank	2/23/15		77,000		61,658		58,094		(3,564	)
Singapore Dollar	Deutsche Bank	2/27/15		172,000		137,424		129,764		(7,660	)
Singapore Dollar	HSBC Bank	3/13/15		499,540		394,270		376,818		(17,452	)
Singapore Dollar	HSBC Bank	3/16/15		215,700		170,741		162,703		(8,038	)
Singapore Dollar	JPMorgan Chase	4/30/15		1,750,000		1,372,872		1,319,467		(53,405	)
Singapore Dollar	HSBC Bank	5/7/15		3,474,156		2,693,144		2,619,290		(73,854	)
Singapore Dollar	Citibank	5/18/15		260,154		208,332		196,121		(12,211	)
Singapore Dollar	Deutsche Bank	5/19/15		77,000		61,632		58,047		(3,585	)
Singapore Dollar	HSBC Bank	5/19/15		167,000		133,664		125,894		(7,770	)
Singapore Dollar	JPMorgan Chase	5/19/15		60,863		48,706		45,882		(2,824	)
Singapore Dollar	JPMorgan Chase	5/20/15		229,983		183,824		173,373		(10,451	)
Singapore Dollar	Deutsche Bank	5/28/15		66,000		50,861		49,751		(1,110	)
Singapore Dollar	Deutsche Bank	5/29/15		66,000		52,579		49,750		(2,829	)
Singapore Dollar	JPMorgan Chase	6/15/15		156,000		118,902		117,574		(1,328	)
Singapore Dollar	HSBC Bank	6/22/15		190,000		144,608		143,191		(1,417	)
Singapore Dollar	HSBC Bank	9/21/15		252,000		199,683		189,857		(9,826	)
Swiss Franc	Bank of America	2/12/15		59,434		61,413		59,846		(1,567	)
Swiss Franc	Credit Suisse First Boston	2/12/15		97,478		101,342		98,155		(3,187	)
Swiss Franc	Deutsche Bank	2/12/15		72,524		75,076		73,027		(2,049	)
Swiss Franc	HSBC Bank	2/12/15		1,793		1,854		1,805		(49	)
Swiss Franc	HSBC Bank	2/12/15		53,100		55,544		53,469		(2,075	)
Swiss Franc	State Street	2/12/15		102,720		106,408		103,423		(2,985	)

					$	45,831,917	$	43,536,679	$	(2,295,238	)

At December 31, 2014, the Fund’s open forward cross currency contracts were as follows:


Purchase/Sale	Counterparty	Amount Purchased	Amount Sold		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
European Euro/Hungarian Forint	JPMorgan Chase	84,776 EUR		26,454,170 HUF	$	114,789	$	116,406	$	1,617
European Euro/Hungarian Forint	Deutsche Bank	282,728 EUR		88,267,600 HUF		382,823		388,052		5,229
European Euro/Hungarian Forint	JPMorgan Chase	282,893 EUR		88,280,000 HUF		383,050		388,444		5,394
European Euro/Polish Zloty	Deutsche Bank	55,635 EUR		233,000 PLN		75,310		76,895		1,585
European Euro/Polish Zloty	Barclays Bank	55,606 EUR		233,000 PLN		75,271		76,823		1,552
European Euro/Polish Zloty	Deutsche Bank	55,611 EUR		233,000 PLN		75,282		76,859		1,577
European Euro/Polish Zloty	Morgan Stanley	21,594 EUR		91,000 PLN		29,255		29,835		580
European Euro/Swedish Krona	Deutsche Bank	1,112,265 EUR		10,280,000 SEK		1,394,801		1,421,190		26,389
Hungarian Forint/Euopean Euro	JPMorgan Chase	44,021,000 HUF		138,444 EUR		193,541		194,025		484
Hungarian Forint/European Euro	JPMorgan Chase	26,454,170 HUF		82,915 EUR		115,687		116,322		635
Hungarian Forint/European Euro	Deutsche Bank	88,267,600 HUF		276,614 EUR		386,003		388,176		2,173
Hungarian Forint/European Euro	JPMorgan Chase	44,259,000 HUF		139,192 EUR		194,587		195,074		487
Polish Zloty/European Euro	Deutsche Bank	233,000 PLN		54,509 EUR		74,401		74,179		(222	)
Polish Zloty/European Euro	Barclays Bank	233,000 PLN		54,477 EUR		74,396		74,209		(187	)
Polish Zloty/European Euro	Morgan Stanley	91,000 PLN		21,321 EUR		29,245		28,995		(250	)
Polish Zloty/European Euro	Deutsche Bank	233,000 PLN		54,721 EUR		74,430		73,932		(498	)
Swedish Krona/European Euro	Deutsche Bank	10,280,000 SEK		1,097,435 EUR		1,403,382		1,394,942		(8,440	)

					$	5,076,253	$	5,114,358	$	38,105

At December 31, 2014, the Fund’s open over-the-counter interest rate swap agreements were as follows:

At December 31, 2014, the Fund’s open centrally cleared interest rate swap agreements were as follows:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	799,741,688

Investment securities, at value*	$	853,815,656
Cash		178,925
Segregated cash for collateral		183,776
Interest and dividends receivable		3,817,323
Foreign currency, at value (cost $1,327,669)		1,287,991
Unrealized appreciation on forward currency contracts		13,497,407
Receivable for investments sold		1,206,460
Receivable for variation margin on swaps		12
Reclaims receivable		178,453
Prepaid expenses		6,845

Total Assets		874,172,848

Liabilities:
Unrealized depreciation on forward currency contracts		2,307,648
Payable for investments purchased		387,053
Payable for capital shares redeemed		1,116,426
Unrealized depreciation on swap agreements		845,633
Payable for collateral received on loaned securities		73,231,722
Manager fees payable		474,883
Administration fees payable		23,424
Distribution fees payable		169,601
Custodian fees payable		63,260
Administrative and compliance services fees payable		2,204
Trustee fees payable		44
Other accrued liabilities		37,662

Total Liabilities		78,659,560

Net Assets	$	795,513,288

Net Assets Consist of:
Capital	$	692,032,124
Accumulated net investment income/(loss)		20,075,863
Accumulated net realized gains/(losses) from investment transactions		19,068,211
Net unrealized appreciation/(depreciation) on investments		64,337,090

Net Assets	$	795,513,288

Shares of beneficial interest (unlimited number of shares authorized, no par value)		57,990,314
Net Asset Value (offering and redemption price per share)	$	13.72

*	Includes securities on loan of $70,346,825.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	16,875,722
Interest		11,351,916
Income from securities lending		275,580
Foreign withholding tax		(725,658	)

Total Investment Income		27,777,560

Expenses:
Manager fees		5,475,790
Administration fees		279,946
Distribution fees		1,955,633
Custodian fees		291,739
Administrative and compliance services fees		10,719
Trustee fees		39,443
Professional fees		44,844
Shareholder reports		35,840
Other expenses		22,396

Total expenses before reductions		8,156,350
Less expenses paid indirectly		(769	)

Net expenses		8,155,581

Net Investment Income/(Loss)		19,621,979

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		18,351,802
Net realized gains/(losses) on options contracts		(161,366	)
Net realized gains/(losses) on swap agreements		(231,391	)
Net realized gains/(losses) on forward currency contracts		2,606,346
Change in net unrealized appreciation/depreciation on investments		(25,275,309	)

Net Realized/Unrealized Gains/(Losses) on Investments		(4,709,918	)

Change in Net Assets Resulting From Operations	$	14,912,061

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Franklin Templeton Founding Strategy Plus Fund (the “Fund”), and 30 are presented in separate reports.

The Fund may invest in structured notes, the values of which are based on the price movements of a reference security or index. Structured notes are derivative debt securities, the interest rate or principal of which is determined by an unrelated indicator. The terms of the structured notes may provide that in certain circumstances no principal is due at maturity and therefore, may result in a loss of invested capital. Structured notes may be positively or negatively indexed, so that appreciation of the reference may produce an increase or a decrease in the interest rate or the value of the structured note at maturity may be calculated as a specified multiple of the change in the value of the reference; therefore, the value of such security may be very volatile. Structured notes may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference. Structured notes may also be more volatile, less liquid, and more difficult to accurately price than less complex securities or more traditional debt securities.

Dividends to shareholders are recorded on the ex-dividend date. The Fund distributes its dividends from net investment income and net realized capital gains, if any, on an annual basis. The amount of dividends from net investment income and from net realized gains is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These “book/tax” differences are either temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital, net operating loss, and reclassification of certain distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales and post October losses) do not require reclassification. Dividends to shareholders that exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.

To generate additional income, the Fund may lend up to 33 1/3% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $39.7 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $27,328 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund entered into forward currency contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or the seller, is the unrealized appreciation of the contract. The forward currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The contract amount of forward currency contracts outstanding was $206.6 million as of December 31, 2014. The monthly average amount for these contracts was $ 190 million for the year ended December 31, 2014.

The Fund may purchase or write put and call options on a security or an index of securities. During the year ended December 31, 2014, the Fund used purchased call options to hedge against security prices (equity risk).

A stock index fluctuates with changes in the fair values of the stocks included in the index, and therefore options on stock indexes and options on stocks involve elements of equity price risk.

Purchased Options Contracts — The Fund pays a premium which is included in “Investments, at value” on the Statement of Assets and Liabilities and marked to market to reflect the current value of the option. Premiums paid for purchasing put options that expire are treated as realized losses. When a put option is exercised or closed, premiums paid for purchasing put options are offset against proceeds to determine the realized gain/loss on the transaction. The Fund bears the risk of loss of the premium and change in value should the counterparty not perform under the contract.

Realized gains and losses, if any, are reported as “Net realized gains/(losses) on options contracts” on the Statement of Operations.

The Fund had the following transactions in purchased call and put options during the year ended December 31, 2014:

Fund’s obligations (or rights) under swap agreements, which will generally be equal to the net amounts to be paid or received under the agreements based upon the relative values of the positions held by each party to the agreements. In connection with these arrangements, securities may be identified as collateral in accordance with the terms of the swap agreements to provide assets of value and recourse in the event of default or bankruptcy by the counterparty.

of realized gains (losses). Upon entering a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or assets determined to be liquid (the amount is subject to the clearing organization that clears the trade). Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable, as applicable, for variation margin on centrally cleared swaps.

The notional amounts reflect the extent of the total investment exposure each Fund has under the swap agreement. The Fund bears the risk of loss of the amount expected to be received under a swap agreement (i.e., any unrealized appreciation) in the event of the default or bankruptcy of the swap agreement counterparty. The notional amount and related unrealized appreciation (depreciation) of each swap agreement at period end is disclosed in the swap tables in the Schedule of Portfolio Investments. The Fund is party to International Swap Dealers Association, Inc. Master Agreements (“ISDA Master Agreements”) with select counterparties that govern transactions, such as OTC swap contracts, entered into by the Fund, through the Subsidiary, and those counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding OTC swap transactions under the applicable ISDA Master Agreement.

Interest rate swaps involve the exchange of commitments to pay and receive interest based on a notional amount and are subject to interest rate risk exposure. Interest rate swaps do not involve the delivery of securities, other underlying assets or principal. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that a Fund is contractually obligated to make. If the other party to an interest rate swap defaults, a Fund’s risk of loss consists of the net amount of interest payments that the Fund is contractually entitled to receive. As of December 31, 2014, the Fund entered into interest rate swap agreements to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). The gross notional amount of interest rate swaps outstanding was $17.9 million as of December 31, 2014. The monthly average gross notional amount of interest rate swaps was $9.5 million for the year ended December 31, 2014.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Fund is generally subject to master netting agreements that allow for amounts owed between the Fund and the counterparty to be netted. The party that has the larger payable pays the excess of the larger amount over the smaller amount to the other party. The master netting agreements do not apply to amounts owed to/from different counterparties. The amounts shown in the Statement of Assets and Liabilities do not take into consideration the effects of legally enforceable master netting agreements. The table below presents the gross and net amounts of these assets and liabilities with any offsets to reflect the Fund’s ability to reflect the master netting agreements at December 31, 2014. For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to master netting arrangements in the Statement of Assets and Liabilities. This table also summarizes the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014.

As of December 31, 2014, the Fund’s derivative assets and liabilities by type are as follows:

The Manager provides investment advisory and management services for the Fund. The Manager has retained three independent money management organizations (the “Subadviser”), Franklin Advisers, Inc. (“Advisers”), Franklin Mutual Advisers, LLC (“Franklin Mutual”) and Templeton Global Advisors Limited (“Global Advisors”) to make investment decisions on behalf of the Fund. Pursuant to subadvisory agreements with the Manager and Advisers, the Manager and Franklin Mutual, and the Manager and Global Advisors, and the Trust, Advisers, Franklin Mutual and Global Advisors provide investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $9,228 was paid from the Fund relating to these fees and expenses.

certain expenses associated with attending Board meetings. Compensation to the Trustees is allocated between the Trust and the Allianz Variable Insurance Products Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2014, actual Trustee compensation was $1,155,670 in total for both trusts.

Forward currency contracts are generally valued at the foreign currency exchange rate as of the close of the NYSE and are typically categorized as Level 2 in the fair value hierarchy.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the Fund’s ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, the Fund may lose the value of its entire investment.

Cost for federal income tax purposes at December 31, 2014 is $800,248,483. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Franklin Templeton Founding Strategy Plus Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 29.88% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $10,611,994.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $2,444,673.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Gateway Fund returned 3.09%. That compared to a 13.69% total return for its benchmark, the S&P 500 Index¹. The Fund’s performance reflects its hedged-equity strategy, which seeks to reduce wide swings in the portfolio’s value that can be caused by stock market volatility.

The Fund’s objective is to capture the majority of returns of equity market investments, but at a reduced level of risk. To pursue this strategy, the Fund holds a broadly diversified portfolio of stocks while also using index options to generate cash inflow and reduce the risk associated with un-hedged equity market investments. Selling index call options reduces the Fund’s volatility and provides steady cash flow that is an important source of the Fund’s return. However, the use of these options limits the Fund’s ability to profit from increases in the value of its equity portfolio. The Fund also purchases put options to attempt protect against sudden, short-term stock market declines.*

The period was marked by an improving U.S. economy and strong corporate earnings, though central bank policy and geopolitical tensions contributed to market choppiness. The S&P 500 experienced five brief but sharp pullbacks with losses ranging from 3.85% to 7.28%. Meanwhile, volatility remained low in the equity and equity index options markets.

The low levels of volatility during much of the period dragged on the Fund’s returns. The Chicago Board Options Exchange Volatility Index² (the VIX) averaged just 14.17 while falling as low as 10.32 and spending little time above its long-term average of 20. A lower VIX results in less cash flow for the sale of call options, and that reduced cash flow acts as a headwind against the Fund’s performance.*

As expected, the nature of the Fund’s strategy also limits relative returns in times when the S&P 500 posts strong gains in a short period of time, such as during the fourth quarter of 2014. When the S&P 500 rises far above the level of premiums the Fund earned from selling call options, the Fund’s relative returns suffer. As a result, when the S&P 500 advanced 11.03% from October 15, 2014, through the end of the period, the Fund gained just 3.19%.*

The roughly one-month period between mid-September and mid-October was the weakest for the period. During this period, the S&P 500 returned -7.28%. The Fund’s hedging strategy helped to minimize losses, leading to a return of -3.43%—less than half that of the index.*

Past performance does not guarantee future results.

¹	The Standard & Poor’s 500^® Index (“S&P 500”) is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. Investors cannot invest directly in an index.

²	Chicago Board Options Exchange Market Volatility Index^® (VIX^®) is a key measure of market expectations of near-term volatility conveyed by the S&P 500 Index options.

Fund Objective

The Fund’s investment objective is to seek to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing in a broadly diversified portfolio of common stocks, while also selling index call options.

Investment Concerns

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

The chart above represents a comparison of a hypothetical investment in the Fund versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains in the Fund.

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			Since Inception (4/30/10)
AZL^® Gateway Fund		3.09	%		5.20	%		4.41	%
S&P 500 Index		13.69	%		20.41	%		14.95	%


Expense Ratio	Gross
AZL^® Gateway Fund		1.11	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.25% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Standard & Poor’s 500 Index (“S&P 500”), an unmanaged index that is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, which is a measure of the U.S. Stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Gateway Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

	Common Stocks+ (98.7%):
	Aerospace & Defense (2.2%):
	9,900	Boeing Co. (The)	$	1,286,802
	13,855	Honeywell International, Inc.		1,384,392
	7,320	Raytheon Co.		791,804
	11,210	United Technologies Corp.		1,289,150

				4,752,148

	Air Freight & Logistics (0.8%):
	15,195	United Parcel Service, Inc., Class B		1,689,228

	Airlines (0.3%):
	6,380	American Airlines Group, Inc.		342,159
	5,430	United Continental Holdings, Inc.*		363,213

				705,372

	Auto Components (0.3%):
	4,775	Cooper Tire & Rubber Co.		165,454
	4,520	TRW Automotive Holdings Corp.*		464,882

				630,336

	Automobiles (0.5%):
	55,930	Ford Motor Co.		866,915
	710	Tesla Motors, Inc.*		157,911

				1,024,826

	Banks (5.8%):
	7,645	Associated Banc-Corp.		142,426
	132,325	Bank of America Corp.		2,367,294
	39,828	Citigroup, Inc.		2,155,093
	2,290	FirstMerit Corp.		43,258
	45,405	JPMorgan Chase & Co.		2,841,445
	2,940	Old National Bancorp		43,747
	32,135	U.S. Bancorp		1,444,468
	64,905	Wells Fargo & Co.		3,558,093

				12,595,824

	Beverages (2.2%):
	51,675	Coca-Cola Co. (The)		2,181,719
	3,643	Monster Beverage Corp.*		394,719
	24,440	PepsiCo, Inc.		2,311,046

				4,887,484

	Biotechnology (3.3%):
	3,045	Alexion Pharmaceuticals, Inc.*		563,416
	10,465	Amgen, Inc.		1,666,970
	3,265	Biogen Idec, Inc.*		1,108,304
	12,050	Celgene Corp.*		1,347,913
	20,940	Gilead Sciences, Inc.*		1,973,805
	3,650	Vertex Pharmaceuticals, Inc.*		433,620

				7,094,028

	Capital Markets (2.2%):
	2,400	Affiliated Managers Group, Inc.*		509,376
	25,980	Charles Schwab Corp. (The)		784,336
	8,600	Eaton Vance Corp.		351,998
	5,975	Goldman Sachs Group, Inc. (The)		1,158,134
	9,270	Legg Mason, Inc.		494,740
	23,805	Morgan Stanley		923,634


Shares			Fair Value

	Common Stocks+, continued
	Capital Markets, continued
	9,420	TD Ameritrade Holding Corp.	$	337,048
	3,600	Waddell & Reed Financial, Inc., Class A		179,352

				4,738,618

	Chemicals (2.2%):
	17,955	Dow Chemical Co. (The)		818,928
	15,570	E.I. du Pont de Nemours & Co.		1,151,246
	5,685	Eastman Chemical Co.		431,264
	8,215	LyondellBasell Industries NV, Class A		652,189
	8,835	Monsanto Co.		1,055,517
	7,875	Olin Corp.		179,314
	2,965	Potash Corp. of Saskatchewan, Inc.		104,724
	9,510	RPM International, Inc.		482,252

				4,875,434

	Commercial Services & Supplies (0.7%):
	4,360	ADT Corp. (The)		157,963
	270	R.R. Donnelley & Sons Co.		4,537
	15,750	Tyco International plc		690,795
	12,015	Waste Management, Inc.		616,610

				1,469,905

	Communications Equipment (1.8%):
	65,755	Cisco Systems, Inc.		1,828,975
	6,354	Motorola Solutions, Inc.		426,226
	21,875	QUALCOMM, Inc.		1,625,969
	1,735	Telefonaktiebolaget LM Ericsson, Sponsored ADR		20,994

				3,902,164

	Consumer Finance (1.0%):
	15,200	American Express Co.		1,414,208
	11,000	Discover Financial Services		720,390

				2,134,598

	Containers & Packaging (0.4%):
	5,475	Avery Dennison Corp.		284,043
	10,700	MeadWestvaco Corp.		474,973
	3,090	Sonoco Products Co.		135,033

				894,049

	Distributors (0.3%):
	6,850	Genuine Parts Co.		730,005

	Diversified Financial Services (2.4%):
	27,765	Berkshire Hathaway, Inc., Class B		4,168,914
	6,555	CME Group, Inc.		581,100
	3,448	FNFV Group*		54,272
	2,220	IntercontinentalExchange, Inc.		486,824

				5,291,110

	Diversified Telecommunication Services (1.9%):
	50,830	AT&T, Inc.		1,707,380
	24,259	Frontier Communications Corp.		161,808
	48,180	Verizon Communications, Inc.		2,253,860

				4,123,048


Shares			Fair Value

	Common Stocks+, continued
	Electric Utilities (1.5%):
	15,125	American Electric Power Co., Inc.	$	918,390
	17,076	Duke Energy Corp.		1,426,530
	2,580	Hawaiian Electric Industries, Inc.		86,378
	11,885	OGE Energy Corp.		421,680
	12,395	Pepco Holdings, Inc.		333,797

				3,186,775

	Electrical Equipment (0.8%):
	8,445	Eaton Corp. plc		573,922
	12,975	Emerson Electric Co.		800,947
	2,505	Hubbell, Inc., Class B		267,609

				1,642,478

	Electronic Equipment, Instruments & Components (0.4%):
	23,645	Corning, Inc.		542,180
	7,235	TE Connectivity, Ltd.		457,614

				999,794

	Energy Equipment & Services (1.6%):
	9,955	Baker Hughes, Inc.		558,177
	430	CARBO Ceramics, Inc.		17,222
	3,265	Diamond Offshore Drilling, Inc.		119,858
	19,950	Halliburton Co.		784,633
	6,830	Patterson-UTI Energy, Inc.		113,310
	22,551	Schlumberger, Ltd.		1,926,081
	1,885	Seventy Seven Energy, Inc.*		10,198

				3,529,479

	Food & Staples Retailing (2.3%):
	21,820	CVS Caremark Corp.		2,101,485
	14,770	Walgreens Boots Alliance, Inc.		1,125,474
	21,455	Wal-Mart Stores, Inc.		1,842,555

				5,069,514

	Food Products (1.2%):
	14,175	ConAgra Foods, Inc.		514,269
	13,445	Kraft Foods Group, Inc.		842,464
	33,525	Mondelez International, Inc., Class A		1,217,795

				2,574,528

	Gas Utilities (0.3%):
	2,161	AGL Resources, Inc.		117,796
	3,605	National Fuel Gas Co.		250,656
	761	ONE Gas, Inc.		31,368
	3,090	WGL Holdings, Inc.		168,776

				568,596

	Health Care Equipment & Supplies (2.2%):
	25,375	Abbott Laboratories		1,142,383
	9,155	Baxter International, Inc.		670,970
	35,295	Boston Scientific Corp.*		467,659
	9,380	Covidien plc		959,385
	620	Intuitive Surgical, Inc.*		327,943
	18,185	Medtronic, Inc.		1,312,956

				4,881,296


Shares			Fair Value

	Common Stocks+, continued
	Health Care Providers & Services (2.4%):
	8,584	Aetna, Inc.	$	762,517
	4,430	Anthem, Inc.		556,718
	12,425	Express Scripts Holding Co.*		1,052,025
	4,355	HCA Holdings, Inc.*		319,613
	4,120	Patterson Cos., Inc.		198,172
	4,360	Quest Diagnostics, Inc.		292,382
	14,835	UnitedHealth Group, Inc.		1,499,670
	3,965	Universal Health Services, Inc., Class B		441,146

				5,122,243

	Hotels, Restaurants & Leisure (1.1%):
	6,770	International Game Technology		116,783
	2,190	Las Vegas Sands Corp.		127,370
	17,480	McDonald’s Corp.		1,637,876
	2,945	Melco Crown Entertainment, Ltd., Sponsored ADR		74,803
	14,555	MGM Resorts International*		311,186
	1,852	Restaurant Brands International, Inc.*		72,310
	12,505	Wendy’s Co. (The)		112,920

				2,453,248

	Household Durables (0.9%):
	13,305	Leggett & Platt, Inc.		566,927
	14,735	Newell Rubbermaid, Inc.		561,256
	9,100	Toll Brothers, Inc.*		311,857
	1,085	Tupperware Brands Corp.		68,355
	2,095	Whirlpool Corp.		405,885

				1,914,280

	Household Products (2.1%):
	14,265	Colgate-Palmolive Co.		986,995
	5,820	Kimberly-Clark Corp.		672,443
	32,295	Procter & Gamble Co. (The)		2,941,752

				4,601,190

	Industrial Conglomerates (2.2%):
	12,125	3M Co.		1,992,380
	108,735	General Electric Co.		2,747,733

				4,740,113

	Insurance (3.0%):
	6,580	AFLAC, Inc.		401,972
	12,325	Allstate Corp. (The)		865,831
	19,390	American International Group, Inc.		1,086,034
	6,685	Aon plc		633,938
	6,020	Arthur J. Gallagher & Co.		283,422
	7,165	FNF Group		246,834
	9,580	Lincoln National Corp.		552,479
	17,570	Marsh & McLennan Cos., Inc.		1,005,707
	9,905	Principal Financial Group, Inc.		514,466
	6,120	Travelers Cos., Inc. (The)		647,802
	7,040	XL Group plc,		241,965

				6,480,450


Shares			Fair Value

	Common Stocks+, continued
	Internet & Catalog Retail (1.2%):
	5,155	Amazon.com, Inc.*	$	1,599,854
	577	Lands’ End, Inc.*		31,135
	810	Priceline.com, Inc.*		923,570

				2,554,559

	Internet Software & Services (3.9%):
	5,245	Akamai Technologies, Inc.*		330,225
	690	Baidu, Inc., Sponsored ADR*		157,299
	15,750	eBay, Inc.*		883,890
	26,440	Facebook, Inc., Class A*		2,062,849
	3,045	Google, Inc., Class C*		1,602,888
	4,195	Google, Inc., Class A*		2,226,118
	625	LinkedIn Corp., Class A*		143,569
	6,285	VeriSign, Inc.*		358,245
	14,415	Yahoo!, Inc.*		728,102

				8,493,185

	IT Services (3.2%):
	13,720	Automatic Data Processing, Inc.		1,143,836
	5,915	Broadridge Financial Solutions, Inc.		273,155
	11,935	Cognizant Technology Solutions Corp., Class A*		628,497
	9,350	Fidelity National Information Services, Inc.		581,570
	10,555	International Business Machines Corp.		1,693,444
	12,770	Paychex, Inc.		589,591
	7,000	Visa, Inc., Class A		1,835,400
	15,190	Western Union Co.		272,053

				7,017,546

	Leisure Products (0.1%):
	10,305	Mattel, Inc.		318,888

	Life Sciences Tools & Services (0.1%):
	890	Illumina, Inc.*		164,276

	Machinery (2.1%):
	10,210	Caterpillar, Inc.		934,522
	4,710	Cummins, Inc.		679,041
	5,600	Deere & Co.		495,432
	4,780	Parker Hannifin Corp.		616,381
	5,649	Pentair, Ltd.		375,207
	3,910	Snap-On, Inc.		534,653
	2,595	SPX Corp.		222,962
	5,980	Stanley Black & Decker, Inc.		574,558
	3,225	Timken Co.		137,643

				4,570,399

	Media (3.7%):
	37,660	Comcast Corp., Class A		2,184,657
	2,048	Liberty Global plc, Series C*		98,939
	2,719	Liberty Global plc, Class A*		136,507
	7,651	News Corp., Class B*		115,377
	8,555	Omnicom Group, Inc.		662,756
	78,395	Sirius XM Holdings, Inc.*		274,383
	14,330	Time Warner Cable, Inc.		1,224,069
	5,085	Time Warner Cable, Inc.		773,225


Shares			Fair Value

	Common Stocks+, continued
	Media, continued
	2,823	Time, Inc.	$	69,474
	26,705	Walt Disney Co. (The)		2,515,343

				8,054,730

	Metals & Mining (0.6%):
	16,405	Freeport-McMoRan Copper & Gold, Inc.		383,221
	10,475	Nucor Corp.		513,798
	4,239	Southern Copper Corp.		119,540
	12,760	Steel Dynamics, Inc.		251,882
	1,587	TimkenSteel Corp.		58,767
	2,295	Worthington Industries, Inc.		69,057

				1,396,265

	Multiline Retail (0.9%):
	8,295	Macy’s, Inc.		545,396
	7,440	Nordstrom, Inc.		590,662
	1,555	Sears Holdings Corp.*		51,284
	9,105	Target Corp.		691,160

				1,878,502

	Multi-Utilities (1.5%):
	15,300	Ameren Corp.		705,789
	24,020	CenterPoint Energy, Inc.		562,789
	13,450	Consolidated Edison, Inc.		887,834
	3,445	Integrys Energy Group, Inc.		268,193
	21,100	Public Service Enterprise Group, Inc.		873,751

				3,298,356

	Oil, Gas & Consumable Fuels (6.7%):
	5,698	California Resources Corp.*		31,396
	6,020	Cheniere Energy, Inc.*		423,808
	26,865	Chevron Corp.		3,013,716
	5,190	Concho Resources, Inc.*		517,703
	24,200	ConocoPhillips		1,671,252
	10,740	CONSOL Energy, Inc.		363,119
	11,550	Continental Resources, Inc.*		443,058
	53,320	Exxon Mobil Corp.		4,929,433
	4,730	Gulfport Energy Corp.*		197,430
	14,235	Occidental Petroleum Corp.		1,147,483
	6,730	ONEOK, Inc.		335,087
	13,855	Phillips 66		993,404
	16,025	Southwestern Energy Co.*		437,322
	970	Statoil ASA, Sponsored ADR		17,082

				14,521,293

	Personal Products (0.0%):
	1,145	Herbalife, Ltd.		43,167

	Pharmaceuticals (6.1%):
	22,000	Abbvie, Inc.		1,439,680
	4,310	Actavis, Inc. plc*		1,109,437
	23,360	Bristol-Myers Squibb Co.		1,378,941
	15,725	Eli Lilly & Co.		1,084,868
	470	GlaxoSmithKline plc, Sponsored ADR		20,088
	35,325	Johnson & Johnson Co.		3,693,935


Shares			Fair Value

	Common Stocks+, continued
	Pharmaceuticals, continued
	36,580	Merck & Co., Inc.	$	2,077,378
	77,080	Pfizer, Inc.		2,401,042

				13,205,369

	Professional Services (0.1%):
	2,080	Dun & Bradstreet Corp.		251,597

	Real Estate Investment Trusts (REITs) (1.7%):
	16,980	American Capital Agency Corp.		370,673
	28,500	Annaly Capital Management, Inc.		308,085
	33,930	Duke Realty Corp.		685,386
	7,895	Hatteras Financial Corp.		145,505
	3,710	Healthcare Realty Trust, Inc.		101,357
	11,610	Liberty Property Trust		436,884
	10,190	Mack-Cali Realty Corp.		194,221
	19,300	Senior Housing Properties Trust		426,723
	13,363	Ventas, Inc.		958,128

				3,626,962

	Road & Rail (0.9%):
	3,700	Avis Budget Group, Inc.*		245,421
	1,610	Canadian Pacific Railway, Ltd.		310,231
	33,040	CSX Corp.		1,197,039
	7,085	Hertz Global Holdings, Inc.*		176,700

				1,929,391

	Semiconductors & Semiconductor Equipment (2.7%):
	14,645	Advanced Micro Devices, Inc.*		39,102
	7,810	Altera Corp.		288,501
	4,965	Analog Devices, Inc.		275,657
	25,740	Applied Materials, Inc.		641,441
	58,720	Intel Corp.		2,130,949
	8,210	Linear Technology Corp.		374,376
	4,725	Microchip Technology, Inc.		213,145
	14,630	Micron Technology, Inc.*		512,196
	11,215	NVIDIA Corp.		224,861
	2,435	Skyworks Solutions, Inc.		177,049
	14,930	Texas Instruments, Inc.		798,232
	6,355	Xilinx, Inc.		275,108

				5,950,617

	Software (3.7%):
	5,700	Activision Blizzard, Inc.		114,855
	10,005	Adobe Systems, Inc.*		727,364
	7,065	Autodesk, Inc.*		424,324
	99,050	Microsoft Corp.		4,600,872
	4,650	Nuance Communications, Inc.*		66,356
	40,870	Oracle Corp.		1,837,923
	14,155	Symantec Corp.		363,147

				8,134,841


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Common Stocks+, continued
	Specialty Retail (2.6%):
	370	Abercrombie & Fitch Co., Class A	$	10,597
	1,445	American Eagle Outfitters, Inc.		20,057
	5,770	Foot Locker, Inc.		324,159
	5,690	Gap, Inc. (The)		239,606
	19,355	Home Depot, Inc. (The)		2,031,693
	5,365	L Brands, Inc.		464,341
	19,815	Lowe’s Cos., Inc.		1,363,272
	4,325	Tiffany & Co.		462,170
	10,045	TJX Cos., Inc. (The)		688,886

				5,604,781

	Technology Hardware, Storage & Peripherals (4.5%):
	71,700	Apple, Inc.		7,914,246
	26,205	EMC Corp.		779,337
	23,540	Hewlett-Packard Co.		944,660
	5,525	Seagate Technology plc		367,413

				10,005,656

	Textiles, Apparel & Luxury Goods (0.2%):
	6,160	Michael Kors Holdings, Ltd.*		462,616

	Thrifts & Mortgage Finance (0.1%):
	16,515	New York Community Bancorp, Inc.		264,240

	Tobacco (1.5%):
	30,040	Altria Group, Inc.		1,480,070
	16,580	Philip Morris International, Inc.		1,350,441
	6,625	Reynolds American, Inc.		425,789
	3,522	Vector Group, Ltd.		75,054

				3,331,354

	Trading Companies & Distributors (0.1%):
	2,845	GATX Corp.		163,701

	Wireless Telecommunication Services (0.2%):
	3,590	SBA Communications Corp., Class A*		397,628

	Total Common Stocks (Cost $154,681,303)			214,942,080

	Purchased Options (0.4%):
	Total Purchased Options (Cost $1,371,118)			828,073

	Unaffiliated Investment Company (2.9%):
	6,340,456	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(a)		6,340,456

	Total Unaffiliated Investment Company (Cost $6,340,456)			6,340,456

	Total Investment Securities (Cost $162,392,877)(b) — 102.0%			222,110,609
	Net other assets (liabilities) — (2.0)%			(4,358,081	)

	Net Assets — 100.0%		$	217,752,528

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	162,392,877

Investment securities, at value	$	222,110,609
Cash		1,002
Interest and dividends receivable		307,104
Reclaims receivable		2,350
Prepaid expenses		1,837

Total Assets		222,422,902

Liabilities:
Payable for capital shares redeemed		23,302
Written Options (Premiums received $4,598,555)		4,437,655
Manager fees payable		148,417
Administration fees payable		5,178
Distribution fees payable		46,380
Custodian fees payable		2,378
Administrative and compliance services fees payable		508
Trustee fees payable		10
Other accrued liabilities		6,546

Total Liabilities		4,670,374

Net Assets	$	217,752,528

Net Assets Consist of:
Capital	$	197,912,125
Accumulated net investment income/(loss)		2,484,287
Accumulated net realized gains/(losses) from investment transactions		(42,522,516	)
Net unrealized appreciation/(depreciation) on investments		59,878,632

Net Assets	$	217,752,528

Shares of beneficial interest (unlimited number of shares authorized, no par value)		18,347,855
Net Asset Value (offering and redemption price per share)	$	11.87

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	4,800,585
Foreign withholding tax		(1,294	)

Total Investment Income		4,799,291

Expenses:
Manager fees		1,713,999
Administration fees		60,272
Distribution fees		535,624
Custodian fees		11,983
Administrative and compliance services fees		2,655
Trustee fees		10,299
Professional fees		11,280
Shareholder reports		5,822
Other expenses		4,809

Total expenses		2,356,743

Net Investment Income/(Loss)		2,442,548

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		8,872,640
Net realized gains/(losses) on options contracts		(19,332,201	)
Change in net unrealized appreciation/depreciation on investments		14,315,683

Net Realized/Unrealized Gains/(Losses) on Investments		3,856,122

Change in Net Assets Resulting From Operations	$	6,298,670

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Gateway Fund (the “Fund”), and 30 are presented in separate reports.

The Fund may purchase or write put and call options on a security or an index of securities. During the year ended December 31, 2014, the Fund used purchased and written call options to hedge against security prices (equity risk). A stock index fluctuates with changes in the fair values of the stocks included in the index, and therefore options on stock indexes and options on stocks involve elements of equity price risk.

Realized gains and losses, if any, are reported as “Net realized gains/(losses) on options contracts” on the Statement of Operations.

The Fund had the following transactions in purchased call and put options during the year ended December 31, 2014:

The Fund had the following transactions in written call and put options during the year ended December 31, 2014:

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Gateway Investment Advisers, LLC (“Gateway”), Gateway provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $2,667 was paid from the Fund relating to these fees and expenses.

The Fund generally values index options at the average of the closing bid and ask quotations on the principal exchange on which the option is traded and are typically categorized as Level 1 in the fair value hierarchy. For options where market quotations are not readily available, fair value procedures as described below may be applied. Other assets and securities for which market quotations are not readily available, or are deemed unreliable are valued at fair value as determined in good faith by the Trustees or persons acting on the behalf of the Trustees. Fair value pricing may be used for significant events such as securities whose trading has been suspended, whose price has become stale or for which there is no currently available price at the close of the NYSE. Depending on the source and relative significance of valuation inputs, these instruments may be classified as Level 2 or Level 3 in the fair value hierarchy. The Fund utilizes a pricing service to assist in determining the fair value of securities when certain significant events occur that may affect the value of foreign securities.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $162,950,538. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

As of the end of its tax year ended December 31, 2014, the Fund has capital loss carry forwards (“CLCFs”) as summarized in the tables below. CLCFs subject to expiration are applied as short-term capital loss regardless of whether the originating capital loss was short-term or long-term. CLCFs that are not subject to expiration must be utilized before those that are subject to expiration. The Board does not intend to authorize a distribution of any realized gain for the Fund until any applicable CLCF has been offset or expires.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Gateway Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® International Index Fund returned -6.18%. That compared to a -4.48% total return for its benchmark, the MSCI EAFE Index¹.

The Fund attempts to replicate the performance of the MSCI EAFE index, which tracks the performance of 21 international equity markets.

Equity markets in most countries represented in the index declined for the period in U.S. dollar terms. International stocks started the period on a negative note: Slowing growth in China, softer economic data in the U.S. and expectations that the Federal Reserve would soon end its stimulus efforts all weighed on investors. Global equity markets declined sharply in January, but soon rebounded—particularly in Europe—on signs that the global economic recovery was strengthening and hopes that the European Central Bank (ECB) would soon take measures to combat very low inflation in the eurozone. The ECB eventually took aggressive action in June, moving to a negative deposit rate. The resulting rebound in equity markets came with an increase in volatility.

A combination of high valuations and persistent uncertainty about global central bank policies left equities vulnerable to bad news. Tensions between Russia and Ukraine weighed on global markets early in the period, while later geopolitical crises—including a ground war in Gaza, the downing of civilian airplane in the Ukraine, and Scotland’s flirtation with independence from the United Kingdom—added to concerns. These factors caused many investors to retreat from risk assets such as stocks.

U.S. economic growth strengthened considerably in the second half of 2014, even as the broader global economy showed signs of slowing. In Europe, most developed economies posted sluggish growth, while equity prices whipsawed under the influence of geopolitical turmoil and hopes for central bank stimulus. The eurozone faced dangerously low inflation rates, while the ongoing Russia-Ukraine crisis and Greece’s failure to successfully elect a new president drove volatility higher.

The impact of currency fluctuations was notable in Asia. Developed Asian economies performed well in local currency terms, but generated negative results on a U.S. dollar basis. The Japanese economy continued to struggle to find firm footing, even as the nation’s equity markets benefited from central bank stimulus. Strong corporate earnings helped push Japanese stocks higher, but the weakening of the yen against the U.S. dollar resulted in Japanese equities having the largest negative effect on the performance of the index.

Later in the year, the strengthening U.S. dollar put pressure on commodity prices. Oil prices in particular declined sharply as global supply fell out of balance with demand. Lower prices harmed oil-exporting economies, but most developed markets benefited from the resulting boost to consumer spending. On an absolute basis (in U.S. dollar terms), Israeli stocks generated the strongest returns for the year.

The Fund’s underperformance of its benchmark was primarily due to the Fund adjusting valuations of international securities to account for anticipated market movement, although fees and expenses also detracted. The Fund’s daily net asset value (NAV) is adjusted based on fair market values to avoid market timing by investors. Meanwhile, the benchmark’s NAV reflects local closing prices. The difference in timing between the close of domestic and international markets can create a short-term difference in performance that corrects itself when trading reopens the next day. Any difference does not impact long-term performance, but it can appear as tracking error when the difference occurs on the last day of the period.

Health care and utilities were the only sectors posting gains in U.S. dollar terms. Utilities shares benefited from the low-interest rate environment, as stocks in that sector offered attractive yields to income-seeking investors. Energy stocks fell due to the steep decline in oil prices, and had the greatest negative effect on the index’s performance. Shares in the materials sector also posted large losses amid falling prices in other commodities.*

Past performance does not guarantee future results.

The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek to match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE^® Index”) as closely as possible. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets in a statistically selected sampling of equity securities of companies included in the MSCI EAFE Index and in derivative instruments linked to the MSCI EAFE Index, primarily futures contracts.

Investment Concerns

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (5/1/09)
AZL^® International Index Fund		-6.18	%		10.35	%		4.66	%		9.48	%
MSCI EAFE Index (gross of withholding taxes)		-4.48	%		11.56	%		5.81	%		10.97	%
MSCI EAFE Index (net of withholding taxes)		-4.90	%		11.06	%		5.33	%		10.48	%


Expense Ratio	Gross
AZL^® International Index Fund		0.76	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contact limiting operating expenses, excluding certain expenses (such as interest expense), to 0.77% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index, which is an unmanaged free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The index noted as “gross of withholding taxes” does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The index noted as “net of withholding taxes” reflects the reinvestment of dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL International Index Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (98.0%):
	Aerospace & Defense (0.9%):
	215,081	BAE Systems plc	$	1,569,905
	76,147	Cobham plc		381,785
	40,110	European Aeronautic Defence & Space Co. NV		1,991,916
	29,968	Finmeccanica SpA*		278,221
	56,599	Meggitt plc		452,360
	131,047	Rolls-Royce Holdings plc		1,765,126
	18,663	Safran SA		1,148,552
	117,000	Singapore Technologies Engineering, Ltd.		299,621
	6,454	Thales SA		348,191
	13,420	Zodiac Aerospace		452,839

				8,688,516

	Air Freight & Logistics (0.4%):
	34,900	Bollore^		158,373
	66,624	Deutsche Post AG		2,179,588
	43,571	Royal Mail plc		290,099
	32,834	TNT Express NV^		218,118
	43,939	Toll Holdings, Ltd.		209,082
	24,800	Yamato Holdings Co., Ltd.		488,404

				3,543,664

	Airlines (0.2%):
	91,000	All Nippon Airways Co., Ltd.		224,023
	89,000	Cathay Pacific Airways, Ltd.		193,682
	16,758	Deutsche Lufthansa AG, Registered Shares		280,609
	11,214	easyJet plc		289,414
	69,322	International Consolidated Airlines Group SA*		513,057
	8,470	Japan Airlines Co., Ltd.		247,455
	39,055	Qantas Airways, Ltd.*		75,709
	1,900	Ryanair Holdings plc, ADR*^		135,413
	39,000	Singapore Airlines, Ltd.		341,071

				2,300,433

	Auto Components (1.1%):
	12,700	Aisin Sieki Co., Ltd.		456,549
	44,600	Bridgestone Corp.		1,550,147
	12,753	Compagnie Generale des Establissements Michelin SCA, Class B		1,156,081
	7,535	Continental AG		1,599,886
	33,200	DENSO Corp.		1,547,564
	115,141	GKN plc		610,653
	6,600	Koito Manufacturing Co., Ltd.		201,331
	12,000	NGK Spark Plug Co., Ltd.		362,428
	9,600	NHK SPRING Co., Ltd.		83,771
	7,000	NOK Corp.		177,812
	8,587	Nokian Renkaat OYJ^		210,303
	15,275	Pirelli & C. SpA		205,117
	9,000	Stanley Electric Co., Ltd.		194,568
	13,500	Sumitomo Rubber Industries, Ltd.		201,034
	15,000	The Yokohama Rubber Co., Ltd.^		137,064
	3,700	Toyoda Gosei Co., Ltd.		74,725
	10,900	Toyota Industries Corp.		557,053
	5,282	Valeo SA		657,833

				9,983,919


Shares			Fair Value
	Common Stocks, continued
	Automobiles (3.5%):
	22,972	Bayerische Motoren Werke AG (BMW)	$	2,494,551
	12,000	Daihatsu Motor Co., Ltd.^		157,433
	66,273	Daimler AG, Registered Shares		5,528,542
	60,814	Fiat Chrysler Automobiles NV*^		697,785
	40,200	Fuji Heavy Industries, Ltd.		1,415,882
	112,500	Honda Motor Co., Ltd.		3,272,011
	39,500	Isuzu Motors, Ltd.		482,005
	37,600	Mazda Motor Corp.		902,706
	42,800	Mitsubishi Motors Corp.		392,158
	170,200	Nissan Motor Co., Ltd.		1,482,731
	26,690	PSA Peugeot Citroen SA*		325,549
	13,217	Renault SA		965,725
	24,800	Suzuki Motor Corp.		745,637
	188,100	Toyota Motor Corp.		11,731,981
	2,081	Volkswagen AG		453,385
	19,100	Yamaha Motor Co., Ltd.		384,192

				31,432,273

	Banks (13.5%):
	77,000	Aozora Bank, Ltd.		239,013
	189,741	Australia & New Zealand Banking Group, Ltd.		4,934,484
	299,489	Banca Monte dei Paschi di Siena SpA*		170,273
	408,686	Banco Bilbao Vizcaya Argentaria SA		3,845,900
	2,415,085	Banco Commercial Portugues SA*^		189,889
	241,519	Banco de Sabadell SA		632,643
	23,948	Banco Popolare SC*		286,647
	125,391	Banco Popular Espanol SA		620,773
	850,642	Banco Santander SA		7,112,076
	69,291	Bank Hapoalim BM		327,321
	89,523	Bank Leumi Le*		307,620
	87,600	Bank of East Asia, Ltd. (The)		351,395
	1,884,536	Bank of Ireland*		701,692
	26,000	Bank of Kyoto, Ltd. (The)		217,507
	22,737	Bank of Queensland, Ltd.		224,633
	2,163	Bank of Queensland, Ltd.*		21,370
	82,000	Bank of Yokohama, Ltd. (The)		445,128
	311,293	Bankia SA*		461,442
	46,043	Bankinter SA		367,086
	1,130,378	Barclays plc		4,249,137
	29,210	Bendigo and Adelaide Bank, Ltd.		303,504
	72,913	BNP Paribas SA		4,284,173
	255,500	BOC Hong Kong Holdings, Ltd.		850,757
	53,000	Chiba Bank, Ltd. (The)		347,912
	12,700	Chugoku Bank, Ltd. (The)		173,439
	226,030	Chuo Mitsui Trust Holdings, Inc.		862,761
	67,383	Commerzbank AG*		895,058
	111,591	Commonwealth Bank of Australia		7,748,127
	70,657	Credit Agricole SA		908,237
	156,625	Criteria Caixacorp SA		813,440
	44,898	Danske Bank A/S		1,208,638
	120,000	DBS Group Holdings, Ltd.		1,853,581
	67,310	DnB NOR ASA		993,123


Shares			Fair Value
Common Stocks, continued
	Banks, continued
	18,715	Erste Group Bank AG	$	429,018
	57,000	Fukuoka Financial Group, Inc.		294,338
	26,000	Gunma Bank, Ltd. (The)		168,681
	28,000	Hachijuni Bank, Ltd. (The)		180,264
	53,000	Hang Seng Bank, Ltd.		881,349
	33,000	Hiroshima Bank, Ltd. (The)		156,884
	84,000	Hokuhoku Financial Group, Inc.		169,802
	1,317,938	HSBC Holdings plc		12,453,616
	60,208	Intesa Sanpaolo		148,185
	803,775	Intesa Sanpaolo SpA		2,324,917
	17,400	Iyo Bank, Ltd. (The)		188,635
	45,000	Joyo Bank, Ltd. (The)		223,346
	17,218	KBC Groep NV		955,495
	3,930,243	Lloyds Banking Group plc*		4,640,525
	877,700	Mitsubishi UFJ Financial Group, Inc.		4,811,602
	8,445	Mizrahi Tefahot Bank, Ltd.*		88,726
	1,588,639	Mizuho Financial Group, Inc.		2,669,834
	162,842	National Australia Bank, Ltd.		4,435,914
	66,332	Natixis		436,136
	209,566	Nordea Bank AB^		2,421,984
	199,899	Oversea-Chinese Banking Corp., Ltd.		1,571,495
	8,407	Raiffeisen International Bank-Holding AG^		125,595
	153,087	Resona Holdings, Inc.		772,776
	173,570	Royal Bank of Scotland Group plc*		1,053,531
	41,600	Seven Bank, Ltd.		175,114
	103,000	Shinsei Bank, Ltd.		179,849
	35,000	Shizuoka Bank, Ltd. (The)		320,201
	103,532	Skandinaviska Enskilda Banken AB, Class A		1,310,494
	49,992	Societe Generale		2,100,480
	170,361	Standard Chartered plc		2,554,590
	87,569	Sumitomo Mitsui Financial Group, Inc.		3,164,615
	13,700	Suruga Bank, Ltd.		251,058
	34,368	Svenska Handelsbanken AB, A Shares		1,605,797
	61,767	Swedbank AB, A Shares		1,537,961
	58,312	UBI Banca – Unione di Banche Italiane SCPA		415,037
	300,005	UniCredit SpA		1,911,857
	88,073	United Overseas Bank, Ltd.		1,628,711
	213,995	Westpac Banking Corp.		5,751,574
	15,000	Yamaguchi Financial Group, Inc.^		154,554

				111,613,319

	Beverages (2.4%):
	55,346	Anheuser-Busch InBev NV		6,227,552
	26,500	Asahi Breweries, Ltd.		818,092
	7,581	Carlsberg A/S, Class B		588,817
	41,751	Coca-Cola Amatil, Ltd.		315,872
	13,540	Coca-Cola HBC AG		257,592
	172,924	Diageo plc		4,959,048
	7,264	Heineken Holding NV		455,272
	15,792	Heineken NV^		1,121,720
	56,000	Kirin Holdings Co., Ltd.		693,796
	14,487	Pernod Ricard SA		1,606,084


Shares			Fair Value
Common Stocks, continued
	Beverages, continued
	1,764	Remy Cointreau SA	$	117,812
	66,675	SABMiller plc		3,450,160
	9,100	Suntory Beverage & Food, Ltd.		314,255
	46,255	Treasury Wine Estates, Ltd.		179,894

				21,105,966

	Biotechnology (0.4%):
	7,171	Actelion, Ltd., Registered Shares		825,252
	32,479	CSL, Ltd.		2,286,321
	10,048	Grifols SA		399,940

				3,511,513

	Building Products (0.6%):
	74,000	Asahi Glass Co., Ltd.^		361,411
	23,171	Assa Abloy AB, Class B		1,225,325
	31,613	Compagnie de Saint-Gobain SA		1,330,727
	16,400	Daikin Industries, Ltd.		1,057,932
	2,607	Geberit AG, Registered Shares		886,213
	18,300	Lixil Group Corp.		387,074
	18,000	TOTO, Ltd.		209,397

				5,458,079

	Capital Markets (1.8%):
	69,769	3i Group plc		484,822
	60,954	Aberdeen Asset Management plc		407,070
	105,107	Credit Suisse Group AG		2,635,704
	117,300	Daiwa Securities Group, Inc.		913,640
	95,028	Deutsche Bank AG, Registered Shares		2,871,953
	38,492	ICAP plc		268,455
	40,414	Investec plc		337,567
	15,596	Julius Baer Group, Ltd.		711,939
	20,082	Macquarie Group, Ltd.		947,611
	43,892	Mediobanca SpA		355,339
	248,300	Nomura Holdings, Inc.		1,413,208
	1,256	Partners Group Holding AG		364,359
	14,490	SBI Holdings, Inc.		157,366
	8,833	Schroders plc		366,043
	251,373	UBS Group AG*		4,322,331

				16,557,407

	Chemicals (3.5%):
	23,720	Air Liquide SA		2,926,430
	10,000	Air Water, Inc.		158,552
	16,633	Akzo Nobel NV		1,153,273
	4,498	Arkema, Inc.		298,248
	85,000	Asahi Kasei Corp.		779,102
	63,219	BASF SE		5,343,503
	9,085	Croda International plc		374,292
	18,000	Daicel Chemical Industries, Ltd.		210,784
	568	Ems-Chemie Holding AG		230,679
	636	Givaudan SA, Registered Shares		1,137,547
	6,600	Hitachi Chemical Co., Ltd.		116,934
	123,366	Incitec Pivot, Ltd.		318,932
	28,383	Israel Chemicals, Ltd.		205,057


Shares			Fair Value
Common Stocks, continued
	Chemicals, continued
	163	Israel Corp., Ltd. (The)*	$	77,597
	14,211	Johnson Matthey plc		744,906
	11,800	JSR Corp.		202,661
	11,663	K+S AG, Registered Shares^		323,831
	23,000	Kaneka Corp.		123,694
	16,000	Kansai Paint Co., Ltd.		247,315
	12,193	Koninklijke DSM NV		741,325
	22,300	Kuraray Co., Ltd.		254,287
	6,273	Lanxess AG		291,806
	12,682	Linde AG		2,365,164
	90,000	Mitsubishi Chemical Holdings Corp.		438,347
	25,000	Mitsubishi Gas Chemical Co., Inc.		125,608
	56,000	Mitsui Chemicals, Inc.		159,094
	12,000	Nippon Paint Holdings Co., Ltd.^		348,364
	11,100	Nitto Denko Corp.		620,855
	16,112	Novozymes A/S, B Shares		676,119
	24,762	Orica, Ltd.^		379,403
	28,200	Shin-Etsu Chemical Co., Ltd.		1,834,920
	154	Sika AG, Bearer Shares		451,820
	4,146	Solvay SA		560,023
	101,000	Sumitomo Chemical Co., Ltd.		399,951
	8,392	Symrise AG		508,863
	6,434	Syngenta AG, Registered Shares		2,066,584
	10,000	Taiyo Nippon Sanso Corp.^		110,363
	62,000	Teijin, Ltd.		165,140
	101,000	Toray Industries, Inc.		809,042
	7,101	Umicore		285,974
	12,073	Yara International ASA		540,295

				29,106,684

	Commercial Services & Supplies (0.5%):
	17,509	Aggreko plc		407,882
	16,312	Babcock International Group plc		266,847
	105,428	Brambles, Ltd.		907,710
	41,000	Dai Nippon Printing Co., Ltd.		370,095
	13,832	Edenred		384,029
	104,235	G4S plc		448,527
	6,457	ISS A/S*		185,924
	6,600	Park24 Co., Ltd.		97,210
	14,300	SECOM Co., Ltd.		821,702
	21,326	Securitas AB, B Shares		258,562
	1,867	Societe BIC SA		247,748
	37,000	Toppan Printing Co., Ltd.		240,913

				4,637,149

	Communications Equipment (0.7%):
	197,922	Alcatel-Lucent*		702,575
	260,199	Nokia OYJ		2,047,662
	209,976	Telefonaktiebolaget LM Ericsson, B Shares		2,544,687

				5,294,924

	Construction & Engineering (0.8%):
	11,849	ACS, Actividades de Construccion y Servicios SA		410,222
	11,215	Bouygues SA		404,649


Shares			Fair Value
Common Stocks, continued
	Construction & Engineering, continued
	9,000	Chiyoda Corp.	$	74,036
	28,141	Ferrovial SA^		554,415
	15,000	JGC Corp.		309,188
	58,000	Kajima Corp.		239,744
	5,932	Koninklijke Boskalis Westminster NV		324,273
	6,904	Leighton Holdings, Ltd.		125,584
	46,000	Obayashi Corp.		295,691
	5,805	OCI NV*		201,441
	38,000	Shimizu Corp.		258,793
	26,975	Skanska AB, B Shares		577,072
	69,000	TAISEI Corp.		392,831
	33,719	Vinci SA		1,844,908

				6,012,847

	Construction Materials (0.6%):
	53,332	Boral, Ltd.		228,708
	50,501	CRH plc		1,214,874
	50,748	Fletcher Building, Ltd.		327,216
	9,587	HeidelbergCement AG		681,922
	15,755	Holcim, Ltd., Registered Shares^		1,119,102
	2,219	Imerys SA		163,619
	29,548	James Hardie Industries SE		314,544
	13,073	Lafarge SA		917,411
	77,000	Taiheiyo Cement Corp.		242,335

				5,209,731

	Consumer Finance (0.1%):
	30,000	ACOM Co., Ltd.*^		91,295
	7,900	Aeon Credit Service Co., Ltd.^		154,464
	10,400	Credit Saison Co., Ltd.		193,532

				439,291

	Containers & Packaging (0.1%):
	84,320	Amcor, Ltd.		927,672
	46,579	Rexam plc		327,424
	9,800	Toyo Seikan Kaisha, Ltd.		120,918

				1,376,014

	Distributors (0.0%):
	7,000	Jardine Cycle & Carriage, Ltd.		224,829
	386,000	Li & Fung, Ltd.		361,027

				585,856

	Diversified Consumer Services (0.0%):
	4,900	Benesse Holdings, Inc.		145,582

	Diversified Financial Services (1.3%):
	13,974	ASX, Ltd.		417,017
	13,471	Deutsche Boerse AG		965,272
	2,685	Eurazeo		187,530
	6,343	EXOR SpA		258,747
	149,750	First Pacific Co., Ltd.		147,836
	5,367	Groupe Bruxelles Lambert SA		456,771
	15,821	Hargreaves Lansdown plc		246,646
	70,900	Hong Kong Exchanges & Clearing, Ltd.		1,559,877
	12,449	Industrivarden AB, C Shares		216,365


Shares			Fair Value
Common Stocks, continued
	Diversified Financial Services, continued
	266,243	ING Groep NV*	$	3,446,802
	31,335	Investor AB, B Shares		1,136,309
	17,300	Japan Exchange Group, Inc.		403,129
	16,766	Kinnevik Investment AB, Class B		544,105
	15,016	London Stock Exchange Group plc		515,832
	34,700	Mitsubishi UFJ Lease & Finance Co., Ltd.		164,003
	89,900	ORIX Corp.		1,124,017
	2,449	Pargesa Holding SA		188,712
	54,000	Singapore Exchange, Ltd.		317,587

				12,296,557

	Diversified Telecommunication Services (3.3%):
	10,188	Belgacom SA		368,862
	142,170	Bezeq The Israeli Telecommunication Corp., Ltd.		253,170
	560,832	BT Group plc		3,480,972
	218,723	Deutsche Telekom AG, Registered Shares		3,505,336
	9,694	Elisa OYJ		263,807
	128,022	France Telecom SA		2,176,919
	175,820	HKT Trust & HKT, Ltd.		228,789
	1,876	Iliad SA		450,597
	28,073	Inmarsat plc		347,851
	222,344	Koninklijke (Royal) KPN NV		700,919
	25,776	Nippon Telegraph & Telephone Corp.		1,326,603
	277,000	PCCW, Ltd.		188,724
	552,000	Singapore Telecommunications, Ltd.		1,620,751
	1,605	Swisscom AG, Registered Shares^		843,041
	54,444	TDC A/S		414,976
	125,177	Telecom Corp. of New Zealand, Ltd.		303,196
	680,689	Telecom Italia SpA^		721,799
	433,869	Telecom Italia SpA RSP		362,600
	37,982	Telefonica Deutschland Holding AG		202,817
	289,990	Telefonica SA		4,147,514
	3,471	Telenet Group Holding NV*		194,922
	52,436	Telenor ASA		1,058,010
	163,818	TeliaSonera AB		1,054,202
	298,238	Telstra Corp., Ltd.		1,447,950
	18,376	TPG Telecom, Ltd.		100,276
	83,648	Vivendi		2,086,365

				27,850,968

	Electric Utilities (2.1%):
	114,914	AusNet Services		124,112
	41,000	Cheung Kong Infrastructure Holdings, Ltd.		302,186
	42,900	Chubu Electric Power Co., Inc.*		504,779
	21,800	Chugoku Electric Power Co., Inc. (The)		285,535
	131,000	CLP Holdings, Ltd.		1,134,355
	29,786	Contact Energy, Ltd.		148,189
	138,634	E.ON AG		2,380,337
	161,507	EDP – Energias de Portugal SA		624,542
	17,048	Electricite de France		468,063
	456,327	Enel SpA		2,040,108
	30,119	Fortum OYJ		650,777
	11,200	Hokuriku Electric Power Co.		143,052


Shares			Fair Value
Common Stocks, continued
	Electric Utilities, continued
	94,000	Hongkong Electric Holdings, Ltd.	$	908,196
	7,525	Iberdrola SA		50,596
	350,122	Iberdrola SA		2,355,403
	46,700	Kansai Electric Power Co., Inc. (The)*		444,365
	28,700	Kyushu Electric Power Co., Inc.*^		287,481
	49,648	Mighty River Power, Ltd.		115,137
	6,231	Red Electrica Corporacion SA		546,936
	66,914	Scottish & Southern Energy plc		1,679,646
	11,900	Shikoku Electric Power Co., Inc.*		144,282
	102,361	Terna – Rete Elettrica Nationale SpA		463,650
	31,000	Tohoku Electric Power Co., Inc.		360,170
	98,600	Tokyo Electric Power Co., Inc. (The)*		401,850

				16,563,747

	Electrical Equipment (1.4%):
	151,373	ABB, Ltd.		3,202,762
	14,320	Alstom SA*		461,887
	37,000	Fuji Electric Holdings Co., Ltd.		147,625
	17,924	Legrand SA		938,190
	3,400	Mabuchi Motor Co., Ltd.		134,013
	134,000	Mitsubishi Electric Corp.		1,595,675
	15,000	Nidec Corp.		973,100
	6,048	Osram Licht AG*		238,278
	14,919	Prysmian SpA		271,512
	36,156	Schneider Electric SA^		2,626,850
	53,200	Sumitomo Electric Industries, Ltd.		663,878
	15,153	Vestas Wind Systems A/S*^		547,496

				11,801,266

	Electronic Equipment, Instruments & Components (1.4%):
	21,100	Citizen Holdings Co., Ltd.		162,356
	31,500	Fujifilm Holdings Corp.		950,790
	4,800	Hamamatsu Photonics K.K.		229,405
	18,215	Hexagon AB, B Shares		563,668
	2,300	Hirose Electric Co., Ltd.^		267,802
	5,200	Hitachi High-Technologies Corp.		150,062
	336,100	Hitachi, Ltd.		2,459,742
	29,400	HOYA Corp.		984,505
	7,600	IBIDEN Co., Ltd.		111,708
	23,600	Japan Display, Inc.*^		72,196
	3,070	Keyence Corp.		1,360,046
	22,100	Kyocera Corp.		1,013,096
	13,900	Murata Manufacturing Co., Ltd.		1,518,600
	25,000	Nippon Electric Glass Co., Ltd.		112,720
	14,400	Omron Corp.		645,522
	19,796	Rexel SA		353,452
	17,000	Shimadzu Corp.		173,039
	8,400	TDK Corp.		495,008
	17,100	Yaskawa Electric Corp.^		218,765
	15,100	Yokogawa Electric Corp.		166,246

				12,008,728


Shares			Fair Value
Common Stocks, continued
	Energy Equipment & Services (0.5%):
	26,412	AMEC plc	$	345,636
	18,997	Petrofac, Ltd.		206,010
	17,660	Saipem SpA*^		185,449
	27,844	Seadrill, Ltd.^		320,742
	18,110	Subsea 7 SA^		184,808
	7,375	Technip-Coflexip SA		440,336
	33,584	Tenaris SA		507,212
	24,064	Transocean, Ltd.^		441,151
	14,329	WorleyParsons, Ltd.		118,161

				2,749,505

	Food & Staples Retailing (1.6%):
	46,000	Aeon Co., Ltd.^		463,087
	42,908	Carrefour SA		1,303,478
	3,732	Casino Guichard-Perrachon SA		343,393
	4,894	Colruyt SA		226,905
	6,919	Delhaize Group		502,550
	41,668	Distribuidora Internacional de Alimentacion SA		280,141
	3,700	FamilyMart Co., Ltd.		138,150
	5,357	ICA Gruppen AB		209,816
	82,141	J Sainsbury plc		312,241
	15,701	Jeronimo Martins SGPS SA		157,355
	60,657	Koninklijke Ahold NV		1,078,113
	4,400	LAWSON, Inc.		266,105
	57,202	Metcash, Ltd.		85,999
	11,067	Metro AG*^		338,792
	51,400	Seven & I Holdings Co., Ltd.		1,854,345
	564,438	Tesco plc		1,642,270
	77,343	Wesfarmers, Ltd.		2,617,654
	149,018	William Morrison Supermarkets plc		424,048
	85,972	Woolworths, Ltd.		2,141,496

				14,385,938

	Food Products (4.0%):
	38,000	Ajinomoto Co., Inc.		704,248
	6,188	Aryzta AG		475,614
	24,458	Associated British Foods plc		1,188,162
	146	Barry Callebaut AG, Registered Shares		149,575
	5,300	Calbee, Inc.		182,990
	39,887	Danone SA		2,623,715
	458,382	Golden Agri-Resources, Ltd.		159,009
	11,026	Kerry Group plc, Class A		760,661
	10,000	Kikkoman Corp.		245,379
	69	Lindt & Spruengli AG		340,741
	7	Lindt & Spruengli AG, Registered Shares		401,897
	4,126	Meiji Holdings Co., Ltd.		375,839
	221,941	Nestle SA, Registered Shares		16,273,528
	12,000	Nippon Meat Packers, Inc.		262,522
	15,345	Nisshin Seifun Group, Inc.		148,707
	4,100	Nissin Foods Holdings Co., Ltd.		196,239
	31,089	Tate & Lyle plc		291,998
	6,000	Toyo Suisan Kaisha, Ltd.		193,767
	112,127	Unilever NV		4,404,135


Shares			Fair Value
Common Stocks, continued
	Food Products, continued
	88,377	Unilever plc	$	3,589,499
	255,000	WH Group, Ltd.*		145,578
	131,000	Wilmar International, Ltd.		319,656
	6,000	Yakult Honsha Co., Ltd.^		316,693
	8,000	Yamazaki Baking Co., Ltd.^		98,725

				33,848,877

	Gas Utilities (0.6%):
	75,257	APA Group		458,109
	11,088	Enagas		350,925
	23,534	Gas Natural SDG SA		591,971
	438,829	Hong Kong & China Gas Co., Ltd.		999,350
	127,000	Osaka Gas Co., Ltd.		474,755
	135,981	Snam Rete Gas SpA		670,732
	28,000	Toho Gas Co., Ltd.		137,240
	161,000	Tokyo Gas Co., Ltd.		868,928

				4,552,010

	Health Care Equipment & Supplies (0.8%):
	3,915	Cochlear, Ltd.		247,027
	7,790	Coloplast A/S, Class B		655,785
	27,094	Elekta AB, B Shares^		276,708
	13,935	Essilor International SA Cie Generale d’Optique		1,551,014
	13,459	Getinge AB, B Shares		305,908
	16,900	Olympus Co., Ltd.*		595,586
	61,772	Smith & Nephew plc		1,133,957
	3,787	Sonova Holding AG, Registered Shares		555,316
	9,600	Sysmex Corp.		425,958
	20,100	Terumo Corp.		457,848
	1,418	William Demant Holding A/S*^		107,649

				6,312,756

	Health Care Providers & Services (0.5%):
	10,800	Alfresa Holdings Corp.		130,544
	3,756	Celesio AG		121,434
	14,940	Fresenius Medical Care AG & Co., KgaA		1,117,990
	26,360	Fresenius SE & Co. KgaA		1,376,360
	78,492	Healthscope, Ltd.*		173,748
	11,100	Medipal Holdings Corp.		128,925
	4,300	Miraca Holdings, Inc.		185,338
	8,808	Ramsay Health Care, Ltd.		408,336
	29,544	Ryman Healthcare, Ltd.		196,071
	27,471	Sonic Healthcare, Ltd.		412,447
	4,700	Suzuken Co., Ltd.		129,916

				4,381,109

	Health Care Technology (0.0%):
	12,500	M3, Inc.^		207,899

	Hotels, Restaurants & Leisure (1.3%):
	11,993	Accor SA		537,297
	12,228	Carnival plc		552,049
	114,470	Compass Group plc		1,950,824
	24,349	Crown, Ltd.		250,083
	3,662	Flight Centre, Ltd.^		96,833


Shares			Fair Value
Common Stocks, continued
	Hotels, Restaurants & Leisure, continued
	158,000	Galaxy Entertainment Group, Ltd.	$	879,629
	407,757	Genting Singapore plc		330,464
	16,669	InterContinental Hotels Group plc		667,880
	4,629	McDonald’s Holdings Co., Ltd.^		101,285
	35,141	Merlin Entertainments plc		216,920
	60,400	MGM China Holdings, Ltd.		152,280
	3,500	Oriental Land Co., Ltd.^		802,753
	169,300	Sands China, Ltd.		823,532
	81,333	Shangri-La Asia, Ltd.		111,929
	136,000	SJM Holdings, Ltd.		215,098
	6,348	Sodexo, Inc.		622,344
	49,758	Tabcorp Holdings, Ltd.		167,820
	104,744	Tatts Group, Ltd.		294,602
	30,714	TUI AG*		493,494
	12,669	Whitbread plc		934,819
	63,000	William Hill plc		354,242
	103,600	Wynn Macau, Ltd.^		288,855

				10,845,032

	Household Durables (0.8%):
	13,600	Casio Computer Co., Ltd.^		208,893
	16,240	Electrolux AB, Series B		476,817
	26,794	Husqvarna AB, B Shares		197,183
	10,800	Iida Group Holdings Co., Ltd.		131,188
	150,400	Panasonic Corp.		1,767,296
	21,578	Persimmon plc		527,775
	2,300	Rinnai Corp.		154,901
	31,000	Sekisui Chemical Co., Ltd.		373,256
	39,600	Sekisui House, Ltd.^		518,759
	104,000	Sharp Corp.*^		230,515
	71,700	Sony Corp.		1,459,972
	100,500	Techtronic Industries Co., Ltd.		322,107

				6,368,662

	Household Products (0.6%):
	7,926	Henkel AG & Co. KgaA		771,706
	44,761	Reckitt Benckiser Group plc		3,610,488
	26,500	Unicharm Corp.		637,819

				5,020,013

	Independent Power and Renewable Electricity Producers (0.0%):
	7,700	Electric Power Development Co., Ltd.		260,672
	122,358	Enel Green Power SpA		254,190
	88,932	Meridian Energy, Ltd.		121,891

				636,753

	Industrial Conglomerates (1.4%):
	329	Delek Group, Ltd.		82,690
	77,000	Hankyu Hanshin Holdings, Inc.		414,330
	146,000	Hutchison Whampoa, Ltd.		1,671,679
	35,000	Keihan Electric Railway Co., Ltd.^		186,963
	98,200	Keppel Corp., Ltd.		655,429
	66,266	Koninklijke Philips Electronics NV		1,923,816
	105,390	NWS Holdings, Ltd.		193,297


Shares			Fair Value
Common Stocks, continued
	Industrial Conglomerates, continued
	55,283	Orkla ASA	$	377,027
	7,500	Seibu Holdings, Inc.^		153,040
	63,000	SembCorp Industries, Ltd.		211,325
	54,574	Siemens AG, Registered Shares		6,188,515
	26,718	Smiths Group plc		452,149
	2,053	Wendel		229,414

				12,739,674

	Insurance (5.6%):
	13,109	Admiral Group plc		268,422
	126,896	AEGON NV		951,988
	15,076	Ageas NV		534,588
	829,000	AIA Group, Ltd.		4,565,358
	30,734	Allianz SE, Registered Shares +		5,105,962
	206,349	AMP, Ltd.		918,028
	80,397	Assicurazioni Generali SpA		1,642,754
	200,374	Aviva plc		1,501,252
	125,768	AXA SA		2,904,461
	3,163	Baloise Holding AG, Registered Shares		404,086
	11,102	CNP Assurances		196,569
	74,500	Dai-ichi Life Insurance Co., Ltd. (The)		1,130,705
	13,649	Delta Lloyd NV		299,939
	100,611	Direct Line Insurance Group plc		453,732
	14,068	Gjensidige Forsikring ASA		229,306
	4,189	Hannover Rueckversicherung AG, Registered Shares		379,926
	164,881	Insurance Australia Group, Ltd.		835,727
	406,290	Legal & General Group plc		1,560,295
	63,211	Mapfre SA^		212,842
	185,079	Medibank Private, Ltd.*		364,058
	35,311	MS&AD Insurance Group Holdings, Inc.		838,842
	11,910	Muenchener Rueckversicherungs-Gesellschaft AG		2,385,788
	22,425	NKSJ Holdings, Inc.		563,635
	8,431	NN Group NV*^		251,193
	339,678	Old Mutual plc		998,842
	176,656	Prudential plc		4,064,735
	93,865	QBE Insurance Group, Ltd.		851,185
	100,978	Resolution, Ltd.		570,826
	72,460	RSA Insurance Group plc*		487,588
	30,648	Sampo OYJ, A Shares		1,436,902
	10,667	SCOR SE		322,775
	13,900	Sony Financial Holdings, Inc.		205,004
	164,480	Standard Life plc		1,013,142
	88,880	Suncorp-Metway, Ltd.		1,012,553
	2,177	Swiss Life Holding AG, Registered Shares		514,611
	24,246	Swiss Re AG		2,029,355
	38,336	T&D Holdings, Inc.		461,274
	47,200	Tokio Marine Holdings, Inc.		1,533,063
	1,487	Tryg A/S		166,285
	69,878	UnipolSai SpA		187,221
	2,681	Vienna Insurance Group Weiner Staeditische Versicherung AG^		119,317


Shares			Fair Value
Common Stocks, continued
	Insurance, continued
	10,287	Zurich Insurance Group AG	$	3,222,273

				47,696,407

	Internet & Catalog Retail (0.1%):
	55,600	Rakuten, Inc.		774,226

	Internet Software & Services (0.1%):
	11,400	Kakaku.com, Inc.		163,924
	2,600	mixi, Inc.^		97,051
	8,224	United Internet AG, Registered Shares		372,898
	95,500	Yahoo! Japan Corp.^		344,660

				978,533

	IT Services (0.3%):
	29,736	Amadeus IT Holding SA		1,181,486
	5,688	Atos Origin SA		450,055
	9,987	Cap Gemini SA		711,270
	34,820	Computershare, Ltd.		332,928
	1,200	Itochu Techno-Solutions Corp.		42,528
	7,200	Nomura Research Institute, Ltd.		221,120
	8,600	NTT Data Corp.		321,539
	2,700	Otsuka Corp.		85,462

				3,346,388

	Leisure Products (0.2%):
	11,400	Namco Bandai Holdings, Inc.		242,010
	23,100	Nikon Corp.		306,774
	3,200	Sankyo Co., Ltd.		110,304
	11,700	Sega Sammy Holdings, Inc.		150,129
	5,300	Shimano, Inc.		685,670
	11,800	Yamaha Corp.		175,298

				1,670,185

	Life Sciences Tools & Services (0.0%):
	3,538	Lonza Group AG, Registered Shares		398,843
	15,784	QIAGEN NV*		369,588

				768,431

	Machinery (2.5%):
	21,201	Alfa Laval AB^		401,363
	23,000	AMADA Co., Ltd.		197,231
	4,684	Andritz AG		257,385
	27,394	Atlas Copco AB, B Shares		702,404
	46,809	Atlas Copco AB, A Shares		1,303,891
	67,292	CNH Industrial NV		542,404
	13,300	Fanuc, Ltd.		2,195,381
	12,900	GEA Group AG^		571,104
	17,500	Hino Motors, Ltd.		228,974
	6,900	Hitachi Construction Machinery Co., Ltd.		146,317
	100,000	IHI Corp.		507,818
	19,581	IMI plc		383,275
	13,200	JTEKT Corp.		223,605
	96,000	Kawasaki Heavy Industries, Ltd.		438,476
	64,100	Komatsu, Ltd.		1,421,304
	21,883	Kone OYJ, B Shares^		993,775


Shares			Fair Value
Common Stocks, continued
	Machinery, continued
	77,000	Kubota Corp.	$	1,118,323
	8,300	Kurita Water Industries, Ltd.		173,427
	8,600	Makita Corp.		389,160
	2,458	MAN AG		274,102
	72,910	Melrose Industries plc		299,965
	7,570	Metso Corp. OYJ		225,754
	21,000	Minebea Co., Ltd.		307,427
	209,000	Mitsubishi Heavy Industries, Ltd.		1,155,790
	7,900	Nabtesco Corp.		189,689
	18,000	NGK Insulators, Ltd.		370,778
	34,000	NSK, Ltd.		402,744
	72,307	Sandvik AB		704,496
	1,465	Schindler Holding AG, Registered Shares		210,184
	3,061	Schindler Holding AG^		441,814
	66,000	SembCorp Marine, Ltd.^		162,621
	26,798	SKF AB, B Shares		564,121
	3,800	SMC Corp.		989,712
	1,669	Sulzer AG, Registered Shares		177,363
	37,000	Sumitomo Heavy Industries, Ltd.		198,874
	7,200	THK Co., Ltd.		173,862
	6,864	Vallourec SA		187,411
	105,749	Volvo AB, B Shares		1,142,827
	9,900	Wartsila Corp. OYJ^		444,201
	15,272	Weir Group plc (The)		437,060
	134,250	Yangzijiang Shipbuilding Holdings, Ltd.		121,956
	12,422	Zardoya Otis SA		137,449

				21,515,817

	Marine (0.4%):
	485	A.P. Moeller – Maersk A/S, Class B		964,219
	270	A.P. Moller – Maersk A/S, Class A		516,701
	3,866	Kuehne & Nagel International AG, Registered Shares		525,669
	70,000	Mitsui O.S.K. Lines, Ltd.		207,965
	116,000	Nippon Yusen Kabushiki Kaisha		328,155

				2,542,709

	Media (1.5%):
	6,203	Altice SA*		489,432
	2,825	Axel Springer AG^		170,352
	72,482	British Sky Broadcasting Group plc		1,008,697
	15,177	Dentsu, Inc.		638,808
	10,353	Eutelsat Communications SA		334,646
	15,400	Hakuhodo DY Holdings, Inc.		147,633
	265,562	ITV plc		884,575
	4,332	JC Decaux SA		148,740
	1,514	Kabel Deutschland Holding AG*		205,870
	8,346	Lagardere S.C.A.		216,580
	6,471	Numericable-SFR*		319,049
	57,072	Pearson plc		1,049,723
	14,837	ProSiebenSat.1 Media AG, Registered Share		624,992
	12,723	Publicis Groupe		911,154
	3,720	REA Group, Ltd.		136,639


Shares			Fair Value
Common Stocks, continued
	Media, continued
	47,536	Reed Elsevier NV	$	1,135,916
	78,408	Reed Elsevier plc		1,333,823
	2,665	RTL Group		253,223
	20,594	SES, Class A		738,641
	98,768	Singapore Press Holdings, Ltd.^		313,814
	7,400	Toho Co., Ltd.		167,937
	21,220	Wolters Kluwer NV		647,890
	91,077	WPP plc		1,889,268

				13,767,402

	Metals & Mining (3.1%):
	167,224	Alumina, Ltd.*		242,272
	95,219	Anglo American plc		1,761,520
	27,562	Antofagasta plc		319,963
	70,168	ArcelorMittal^		759,916
	145,391	BHP Billiton plc		3,109,504
	221,063	BHP Billiton, Ltd.		5,244,222
	19,830	Boliden AB		316,161
	101,346	Fortescue Metals Group, Ltd.^		223,280
	14,577	Fresnillo plc		172,961
	732,381	Glencore International plc		3,370,550
	15,000	Hitachi Metals, Ltd.		255,489
	27,328	Iluka Resources, Ltd.		131,338
	34,600	JFE Holdings, Inc.		770,272
	203,000	Kobe Steel, Ltd.		351,216
	2,600	Maruichi Steel Tube, Ltd.^		55,396
	83,000	Mitsubishi Materials Corp.		275,957
	54,054	Newcrest Mining, Ltd.*		481,214
	520,480	Nippon Steel Corp.		1,291,898
	90,109	Norsk Hydro ASA		507,156
	5,847	Randgold Resources, Ltd.		395,566
	87,589	Rio Tinto plc		4,034,952
	29,861	Rio Tinto, Ltd.		1,400,354
	36,000	Sumitomo Metal & Mining Co., Ltd.		537,276
	31,516	ThyssenKrupp AG*		810,512
	7,663	Voestalpine AG		302,045
	2,900	Yamato Kogyo Co., Ltd.		81,547

				27,202,537

	Multiline Retail (0.4%):
	4,000	Don Quijote Co., Ltd.		273,262
	37,408	Harvey Norman Holdings, Ltd.^		101,978
	22,200	Isetan Mitsukoshi Holdings, Ltd.		272,201
	16,100	J. Front Retailing Co., Ltd.		187,521
	112,307	Marks & Spencer Group plc		829,088
	14,500	MARUI GROUP Co., Ltd.		131,158
	10,579	Next plc		1,115,692
	5,241	Pinault Printemps Redoute		1,007,503
	18,000	Takashimaya Co., Ltd.		144,382

				4,062,785

	Multi-Utilities (1.2%):
	47,896	AGL Energy, Ltd.		520,551


Shares			Fair Value
Common Stocks, continued
	Multi-Utilities, continued
	343,426	Centrica plc	$	1,477,910
	100,263	GDF Suez		2,341,395
	259,620	National Grid plc		3,700,642
	33,570	RWE AG		1,050,882
	19,522	Suez Environnement Co.		338,379
	28,666	Veolia Environnement		509,006

				9,938,765

	Oil, Gas & Consumable Fuels (5.2%):
	235,489	BG Group plc		3,134,145
	1,267,967	BP plc		8,050,271
	9,550	Caltex Australia, Ltd.		264,207
	175,823	Eni SpA		3,070,422
	4,512	Fuchs Petrolub AG^		181,697
	26,084	Galp Energia SGPS SA		263,859
	6,000	Idemitsu Kosan Co., Ltd.		99,436
	59,300	INPEX Corp.		658,064
	159,770	JX Holdings, Inc.		622,550
	13,881	Lundin Petroleum AB*^		198,617
	8,464	Neste Oil OYJ		205,066
	10,104	OMV AG		267,337
	77,079	Origin Energy, Ltd.		727,221
	68,846	Repsol YPF SA		1,279,569
	271,363	Royal Dutch Shell plc, A Shares		8,993,626
	167,972	Royal Dutch Shell plc, B Shares		5,769,789
	65,620	Santos, Ltd.		443,239
	11,800	Showa Shell Sekiyu K.K.^		116,316
	76,852	Statoil ASA		1,347,710
	19,000	TonenGeneral Sekiyu K.K.		162,447
	147,325	Total SA		7,595,063
	59,861	Tullow Oil plc		378,710
	50,694	Woodside Petroleum, Ltd.		1,575,594

				45,404,955

	Paper & Forest Products (0.2%):
	61,000	Oji Paper Co., Ltd.		218,942
	36,657	Stora Enso OYJ, R Shares^		326,249
	40,555	Svenska Cellulosa AB, B Shares		876,406
	37,305	UPM-Kymmene OYJ		612,501

				2,034,098

	Personal Products (0.6%):
	6,870	Beiersdorf AG^		560,268
	35,500	Kao Corp.		1,400,694
	17,303	L’Oreal SA		2,904,606
	24,700	Shiseido Co., Ltd.		345,942

				5,211,510

	Pharmaceuticals (9.3%):
	146,500	Astellas Pharma, Inc.		2,039,270
	86,902	AstraZeneca plc		6,112,426
	56,916	Bayer AG		7,780,031
	14,900	Chugai Pharmaceutical Co., Ltd.		366,330
	45,000	Daiichi Sankyo Co., Ltd.		629,227


Shares			Fair Value
Common Stocks, continued
	Pharmaceuticals, continued
	10,500	Dainippon Sumitomo Pharma Co., Ltd.	$	102,074
	17,600	Eisai Co., Ltd.^		682,076
	333,782	GlaxoSmithKline plc		7,140,403
	3,900	Hisamitsu Pharmaceutical Co., Inc.		122,454
	15,000	Kyowa Hakko Kogyo Co., Ltd.		141,221
	8,990	Merck KGaA		852,740
	15,200	Mitsubishi Tanabe Pharma Corp.		222,779
	158,312	Novartis AG, Registered Shares		14,563,950
	138,136	Novo Nordisk A/S, B Shares		5,845,848
	5,700	Ono Pharmaceutical Co., Ltd.		505,173
	6,800	Orion OYJ, Class B^		211,077
	27,400	Otsuka Holdings Co., Ltd.		821,916
	48,353	Roche Holding AG		13,109,575
	81,853	Sanofi-Aventis SA		7,458,864
	5,200	Santen Pharmaceutical Co., Ltd.		278,329
	21,300	Shionogi & Co., Ltd.		551,877
	40,585	Shire plc		2,871,168
	2,100	Taisho Pharmaceutical Holdings Co., Ltd.		128,128
	54,600	Takeda Pharmacuetical Co., Ltd.		2,266,044
	58,985	Teva Pharmaceutical Industries, Ltd.		3,394,418
	8,882	UCB SA		673,977

				78,871,375

	Professional Services (0.4%):
	11,833	Adecco SA, Registered Shares^		810,852
	27,668	ALS, Ltd.^		119,693
	14,704	Bureau Veritas SA		324,651
	46,010	Capita Group plc		770,995
	67,852	Experian plc		1,144,368
	10,611	Intertek Group plc		384,589
	8,289	Randstad Holding NV^		398,584
	9,400	Recruit Holdings Co., Ltd.*^		266,172
	371	SGS SA, Registered Shares^		756,676

				4,976,580

	Real Estate Investment Trusts (REITs) (1.6%):
	133,000	Ascendas Real Estate Investment Trust		238,804
	67,767	British Land Co. plc		813,990
	135,000	CapitaCommercial Trust		178,746
	157,000	CapitaMall Trust		241,646
	4,842	Corio NV		236,274
	62,079	Dexus Property Group		350,954
	94,343	Federation Centres		219,517
	2,139	Fonciere des Regions SA		197,909
	2,110	Gecina SA		264,053
	115,163	GPT Group		406,767
	53,325	Hammerson plc		498,341
	2,354	ICADE		188,472
	52	Japan Prime Realty Investment Corp.		180,551
	84	Japan Real Estate Investment Corp.		404,327
	168	Japan Retail Fund Investment Corp.		354,343
	7,322	Klepierre		315,345
	55,179	Land Securities Group plc		987,244


Shares			Fair Value
Common Stocks, continued
	Real Estate Investment Trusts (REITs), continued
	60,321	Liberty International plc	$	311,894
	159,500	Link REIT (The)		995,757
	122,990	Macquarie Goodman Group		566,841
	266,668	Mirvac Group		385,029
	94	Nippon Building Fund, Inc.		471,034
	109	Nippon Prologis REIT, Inc.		236,344
	159,952	Novion Property Group^		275,305
	369,204	Scentre Group		1,049,590
	48,266	SERGO plc		276,638
	157,515	Stockland Trust Group		526,060
	163,000	Suntec REIT		241,004
	6,790	Unibail-Rodamco SE		1,735,233
	171	United Urban Investment Corp.		268,641
	137,646	Westfield Corp.		1,006,114

				14,422,767

	Real Estate Management & Development (2.1%):
	7,260	AEON Mall Co., Ltd.		128,406
	74,028	BGP Holdings plc*(a)		—
	173,000	CapitaLand, Ltd.		429,947
	96,000	Cheung Kong Holdings, Ltd.		1,602,052
	26,000	City Developments, Ltd.		200,793
	4,900	Daito Trust Construction Co., Ltd.		554,898
	41,400	Daiwa House Industry Co., Ltd.		784,070
	16,630	Deutsche Annington Immobilien SE^		565,610
	19,447	Deutsche Wohnen AG		462,011
	211,000	Global Logistic Properties, Ltd.		394,719
	162,000	Hang Lung Properties, Ltd.		451,525
	74,130	Henderson Land Development Co., Ltd.		514,624
	18,800	Hulic Co., Ltd.		186,928
	43,000	Hysan Development Co., Ltd.		191,087
	7,136	IMMOEAST AG NPV(BR)*		—
	60,788	Immofinanz Immobilien Anlagen AG*		153,849
	56,000	Keppel Land, Ltd.		143,995
	51,500	Kerry Properties, Ltd.		186,082
	37,338	Lend Lease Group		497,025
	87,000	Mitsubishi Estate Co., Ltd.		1,841,606
	66,000	Mitsui Fudosan Co., Ltd.		1,775,401
	357,332	New World Development Co., Ltd.^		408,770
	8,100	Nomura Real Estate Holdings, Inc.		139,213
	7,200	NTT Urban Development Corp.		72,238
	217,600	Sino Land Co., Ltd.		349,318
	26,000	Sumitomo Realty & Development Co., Ltd.		885,850
	113,000	Sun Hung Kai Properties, Ltd.		1,708,906
	45,000	Swire Pacific, Ltd., Class A		583,003
	82,000	Swire Properties, Ltd.		242,025
	3,821	Swiss Prime Site AG^		280,056
	29,000	Tokyo Tatemono Co., Ltd.		211,232
	30,800	Tokyu Fudosan Holdings Corp.		212,258
	31,996	UOL Group, Ltd.		167,954
	103,300	Wharf Holdings, Ltd. (The)		741,904
	60,000	Wheelock & Co., Ltd.		278,617

				17,345,972


Shares			Fair Value
Common Stocks, continued
	Road & Rail (0.9%):
	71,622	Asciano, Ltd.	$	350,578
	152,127	Aurizon Holdings, Ltd.		569,830
	9,900	Central Japan Railway Co.		1,485,464
	142,000	ComfortDelGro Corp., Ltd.		278,076
	12,264	DSV A/S		372,631
	23,213	East Japan Railway Co.		1,739,424
	31,000	Keihin Electric Express Railway Co., Ltd.		229,636
	38,000	Keio Corp.		272,763
	20,000	Keisei Electric Railway Co., Ltd.		243,926
	126,000	Kintetsu Corp.		415,650
	102,500	MTR Corp., Ltd.		418,678
	54,000	Nagoya Railroad Co., Ltd.*^		201,095
	63,000	Nippon Express Co., Ltd.		320,460
	42,000	Odakyu Electric Railway Co., Ltd.		372,761
	69,000	Tobu Railway Co., Ltd.		294,917
	82,000	Tokyu Corp.		508,793
	11,100	West Japan Railway Co.		526,072

				8,600,754

	Semiconductors & Semiconductor Equipment (0.8%):
	10,800	Advantest Corp.^		134,584
	96,769	ARM Holdings plc		1,489,892
	17,400	ASM Pacific Technology, Ltd.^		165,441
	24,680	ASML Holding NV		2,643,820
	77,822	Infineon Technologies AG		834,234
	6,900	ROHM Co., Ltd.		418,684
	42,738	STMicroelectronics NV		318,685
	12,000	Tokyo Electron, Ltd.		910,796

				6,916,136

	Software (0.9%):
	3,500	Colopl, Inc.*		78,353
	8,965	Dassault Systemes SA		545,531
	28,100	Gungho Online Enetertainment, Inc.^		102,450
	6,900	Konami Corp.		127,246
	9,400	Nexon Co., Ltd.		87,662
	4,247	NICE Systems, Ltd.		215,337
	7,300	Nintendo Co., Ltd.		760,943
	2,700	Oracle Corp.		110,022
	72,775	Sage Group plc		524,744
	63,420	SAP AG		4,483,611
	7,400	Trend Micro, Inc.^		202,497

				7,238,396

	Specialty Retail (1.0%):
	2,000	ABC-Mart, Inc.^		96,930
	66,038	Dixons Carphone plc		475,587
	3,700	Fast Retailing Co., Ltd.		1,348,253
	65,359	Hennes & Mauritz AB, B Shares		2,713,002
	1,200	Hikari Tsushin, Inc.		73,055
	74,721	Industria de Diseno Textil SA		2,140,723
	164,751	Kingfisher plc		868,067
	4,700	Nitori Co., Ltd.		252,613
	2,700	Sanrio Co., Ltd.^		67,166


Shares			Fair Value
Common Stocks, continued
	Specialty Retail, continued
	1,600	Shimamura Co., Ltd.^	$	137,876
	18,724	Sports Direct International*		205,326
	16,500	USS Co., Ltd.		253,961
	59,900	Yamada Denki Co., Ltd.^		199,962

				8,832,521

	Technology Hardware, Storage & Peripherals (0.8%):
	15,300	Brother Industries, Ltd.		277,631
	78,100	Canon, Inc.		2,481,016
	129,000	Fujitsu, Ltd.		687,280
	5,694	Gemalto NV^		465,063
	32,000	Konica Minolta Holdings, Inc.		345,228
	175,000	NEC Corp.		510,263
	47,300	Ricoh Co., Ltd.		480,582
	22,677	Seek, Ltd.^		316,401
	8,900	Seiko Epson Corp.		373,893
	278,000	Toshiba Corp.		1,177,359

				7,114,716

	Textiles, Apparel & Luxury Goods (1.5%):
	14,193	Adidas AG^		989,109
	10,500	ASICS Corp.		250,969
	30,994	Burberry Group plc		785,249
	3,787	Christian Dior SA		646,959
	35,933	Compagnie Financiere Richemont SA, Registered Shares		3,183,810
	1,783	Hermes International SA		635,696
	2,887	Hugo Boss AG		354,406
	11,734	Luxottica Group SpA		642,333
	19,223	LVMH Moet Hennessy Louis Vuitton SA		3,039,451
	7,995	Pandora A/S		648,616
	2,141	Swatch Group AG (The)^		950,971
	3,471	Swatch Group AG (The), Registered Shares		300,312
	56,500	Yue Yuen Industrial Holdings, Ltd.		203,441

				12,631,322

	Tobacco (1.4%):
	128,296	British American Tobacco plc		6,969,960
	65,885	Imperial Tobacco Group plc		2,884,956
	76,300	Japan Tobacco, Inc.		2,095,402
	13,886	Swedish Match AB, Class B		433,405

				12,383,723

	Trading Companies & Distributors (1.1%):
	34,213	Ashtead Group plc		604,785
	10,309	Brenntag AG		580,012
	23,152	Bunzl plc		631,042
	103,800	ITOCHU Corp.		1,109,980
	116,200	Marubeni Corp.		696,653
	94,700	Mitsubishi Corp.		1,737,075
	117,000	Mitsui & Co., Ltd.		1,564,337
	294,090	Noble Group, Ltd.		252,539
	75,600	Sumitomo Corp.		776,617
	14,500	Toyota Tsushu Corp.		335,188


Shares			Fair Value
Common Stocks, continued
	Trading Companies & Distributors, continued
	16,389	Travis Perkins plc	$	471,783
	18,632	Wolseley plc		1,060,559

				9,820,570

	Transportation Infrastructure (0.4%):
	27,114	Abertis Infraestructuras SA		535,601
	2,204	Aeroports de Paris		267,109
	27,758	Atlantia SpA		644,647
	61,151	Auckland International Airport, Ltd.		201,189
	2,627	Fraport AG		152,171
	30,998	Groupe Eurotunnel SA		400,093
	380,000	Hutchison Port Holdings Trust		261,862
	16,000	Kamigumi Co., Ltd.		142,321
	4,863	Koninklijke Vopak NV		251,893
	8,000	Mitsubishi Logistics Corp.		115,680
	81,034	Sydney Airport		309,644
	125,963	Transurban Group		880,334

				4,162,544

	Water Utilities (0.1%):
	16,268	Severn Trent plc		504,324
	47,472	United Utilities Group plc		672,640

				1,176,964

	Wireless Telecommunication Services (1.6%):
	40,100	KDDI Corp.		2,509,485
	4,381	Millicom International Cellular SA, SDR		326,034
	104,300	NTT DoCoMo, Inc.		1,527,014
	66,100	SoftBank Corp.		3,934,416
	41,202	StarHub, Ltd.		129,057
	20,816	Tele2 AB		252,170
	1,823,970	Vodafone Group plc		6,248,995

				14,927,171

	Total Common Stocks (Cost $750,582,676)			845,908,920


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Preferred Stocks (0.6%):
	Automobiles (0.4%):
	3,648	Bayerische Motoren Werke AG (BMW), Preferred Shares	$	299,361
	10,676	Porsche Automobil Holding SE, Preferred Shares		867,333
	11,219	Volkswagen AG, Preferred Shares		2,505,712

				3,672,406

	Household Products (0.2%):
	12,436	Henkel AG & Co. KGaA, Preferred Shares^		1,345,099

	Total Preferred Stocks (Cost $3,641,486)			5,017,505

	Rights (0.0%):
	Commercial Banks (0.0%):
	401,556	Banco Bilbao Vizcaya Argentaria SA*		38,382

	Oil, Gas & Consumable Fuels (0.0%):
	68,846	Repsol SA*		38,067

	Total Rights (Cost $—)			76,449

	Securities Held as Collateral for Securities on Loan (3.3%):
	$28,840,160	Allianz Variable Insurance Products Securities Lending Collateral Trust(b)		28,840,160

	Total Securities Held as Collateral for Securities on Loan (Cost $28,840,160)			28,840,160

	Unaffiliated Investment Company (0.3%):
	2,428,736	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(c)		2,428,736

	Total Unaffiliated Investment Company (Cost $2,428,736)			2,428,736

	Total Investment Securities (Cost $785,493,058)(d) — 102.2%			882,271,770
	Net other assets (liabilities) — (2.2)%			(18,969,926	)

	Net Assets — 100.0%		$	863,301,844

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investments in non-affiliates, at cost	$	781,692,099
Investments in affiliates, at cost		3,800,959

Total Investment securities, at cost	$	785,493,058

Investments in non-affiliates, at value^*	$	877,165,808
Investments in affiliates, at value		5,105,962

Total Investment securities, at value		882,271,770
Segregated cash for collateral		1,098,446
Interest and dividends receivable		823,081
Foreign currency, at value (cost $11,746,902)		11,677,557
Receivable for capital shares issued		1,703,120
Receivable for variation margin on futures contracts		11,548
Reclaims receivable		330,220
Prepaid expenses		7,309

Total Assets		897,923,051

Liabilities:
Payable for investments purchased		5,118,070
Payable for capital shares redeemed		36,236
Payable for collateral received on loaned securities		28,840,160
Payable for variation margin on futures contracts		2,505
Manager fees payable		257,696
Administration fees payable		27,348
Distribution fees payable		184,069
Custodian fees payable		64,217
Administrative and compliance services fees payable		2,276
Trustee fees payable		46
Other accrued liabilities		88,584

Total Liabilities		34,621,207

Net Assets	$	863,301,844

Net Assets Consist of:
Capital	$	849,894,779
Accumulated net investment income/(loss)		21,347,325
Accumulated net realized gains/(losses) from investment transactions		(104,941,106	)
Net unrealized appreciation/(depreciation) on investments		97,000,846

Net Assets	$	863,301,844

Shares of beneficial interest (unlimited number of shares authorized, no par value)		56,492,499
Net Asset Value (offering and redemption price per share)	$	15.28

*	Includes securities on loan of $27,265,099.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	33,387,143
Dividends from affiliates		209,812
Interest		27
Income from securities lending		690,987
Foreign withholding		(3,670,379	)

Total Investment Income		30,617,590

Expenses:
Manager fees		2,956,173
Administration fees		334,283
Distribution fees		2,111,557
Custodian fees		300,393
Administrative and compliance services fees		11,820
Trustee fees		45,504
Professional fees		52,558
Shareholder reports		18,752
Recoupment of prior expenses reimbursed by the manager		162,211
Other expenses		310,173

Total expenses		6,303,424

Net Investment Income/(Loss)		24,314,166

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		(2,070,091	)
Net realized gains/(losses) on futures contracts		326,979
Change in net unrealized appreciation/depreciation on investments		(76,247,381	)

Net Realized/Unrealized Gains/(Losses) on Investments		(77,990,493	)

Change in Net Assets Resulting From Operations	$	(53,676,327	)

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL International Index Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $68,373 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide equity exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $10.6 million as of December 31, 2014. The monthly average notional amount for these contracts was $13.3 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $10,408 was paid from the Fund relating to these fees and expenses.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $793,441,715. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL International Index Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Invesco Equity and Income Fund returned 8.50% compared to a 13.69% and 5.97% total return for its benchmarks, the S&P 500 Index¹ and the Barclays U.S. Aggregate Bond Index², respectively.

The 12 months through December 31, 2014, were characterized by steady improvement in the U.S. economy and strong returns for U.S. stocks. Equity markets were volatile for the first four months of the year as investors worried that stocks had risen too far, too fast in 2013. Political upheaval in Ukraine and signs of economic sluggishness in the U.S. and China added to investor uncertainty. However, investors began to show confidence in the economic recovery and stocks rallied through the summer. The Federal Reserve reduced its monthly security purchases throughout the year, finally ending all purchases by October. That action had little impact on the market because it was widely expected. However, stocks suffered again in mid-September when the price of oil began to freefall, finishing 2014 at the lowest point in several years. After another sell-off in the equity markets in December, the S&P 500 Index rallied at the end of the month and finished the year on a positive note.

The Fund maintains a cash allocation to use for investment opportunities. While this allocation was within our typical target range throughout the period, holding cash detracted from relative performance in a strong equity market. Stock selection within health care also hurt performance relative to our equity benchmark. Underweight positions and stock selection in consumer staples and financials dampened relative performance as well. In particular, the Fund’s lack of exposure to REITs³ in the financial sector—adopted because we believed REITs were overvalued— hurt performance when investor demand for yield drove up the prices of those investments.*

Stock selection within utilities boosted relative performance versus the equity benchmark, mainly through holdings of electric utility companies. An allocation to and security selection within convertible bonds also contributed to relative performance versus the S&P 500.

The fixed-income portion of the Fund’s portfolio slightly underperformed the Barclays U.S. Aggregate Index. The Fund’s mandate is to hold higher-grade, shorter-duration bonds than the index in order to provide potential return and mitigate volatility. This allocation posted positive returns but detracted from relative performance when falling bond yields caused lower-duration bonds to experience less price appreciation than higher-duration bonds.*

We used currency forward contracts during the period solely for the purpose of hedging the currency exposure of non-U.S.-based companies held in the portfolio. The use of currency forward contracts had a positive impact on the Fund’s performance relative to the S&P 500 for the period.*

Past performance does not guarantee future results.

¹	The Standard & Poor’s 500 Index (“S&P 500”) is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole.

²	The Barclays U.S. Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek the highest possible income consistent with safety of principal, with long-term growth of capital as an important secondary objective. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 65% of its total assets in income-producing equity securities.

Investment Concerns

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.

The Fund is subject to the risk that principal value reacts in opposition to the movement of interest rates and that a rising interest rate environment increases the risk of loss of principal.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

The chart above represents a comparison of a hypothetical investment in the Fund versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains in the Fund.

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® Invesco Equity and Income Fund		8.50	%		14.82	%		10.60	%		6.71	%
S&P 500 Index		13.69	%		20.41	%		15.45	%		7.67	%
Barclays U.S. Aggregate Bond Index		5.97	%		2.66	%		4.45	%		4.71	%


Expense Ratio¹	Gross
AZL^® Invesco Equity and Income Fund		1.07	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.70% on the first $100 million of assets, 0.675% on the next $100 million, and 0.65% on assets above $200 million. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

Acquired Fund Fees and Expenses are incurred indirectly by the Fund through the valuation of the Fund’s investments in the other investment companies. Accordingly, Acquired Fees and Expenses affect the Fund’s total returns. Because these fees and expenses are not included in the Fund’s financial highlights, the Fund’s total annual fund operating expenses do not correlate to the ratios of expenses to average net assets shown in the financial highlights table. Without Acquired Fund Fees and expenses the Fund’s gross ratio would be 1.06%.

The Fund’s performance is measured against the Standard & Poor’s 500 Index (“S&P 500”) and the Barclays U.S. Aggregate Bond Index. The S&P 500 is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The Barclays U.S. Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. These indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Invesco Equity and Income Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (64.4%):
	Aerospace & Defense (0.7%):
	65,783	General Dynamics Corp.	$	9,053,056

	Automobiles (0.8%):
	290,187	General Motors Co.		10,130,428

	Banks (11.2%):
	1,137,728	Bank of America Corp.		20,353,954
	194,449	BB&T Corp.^		7,562,122
	751,253	Citigroup, Inc.		40,650,299
	246,495	Citizens Financial Group, Inc.^		6,127,866
	186,611	Comerica, Inc.		8,740,859
	387,124	Fifth Third Bancorp		7,887,652
	132,046	First Horizon National Corp.^		1,793,185
	618,298	JPMorgan Chase & Co.		38,693,088
	170,418	PNC Financial Services Group, Inc.^		15,547,234

				147,356,259

	Biotechnology (0.9%):
	75,205	Amgen, Inc.		11,979,404

	Capital Markets (4.9%):
	374,964	Charles Schwab Corp. (The)		11,320,163
	50,119	Goldman Sachs Group, Inc. (The)		9,714,566
	560,324	Morgan Stanley		21,740,570
	128,159	Northern Trust Corp.		8,637,917
	172,359	State Street Corp.		13,530,182

				64,943,398

	Chemicals (0.3%):
	93,757	Dow Chemical Co. (The)		4,276,257

	Commercial Services & Supplies (0.7%):
	215,081	Tyco International plc		9,433,453

	Communications Equipment (0.9%):
	440,960	Cisco Systems, Inc.		12,265,302

	Consumer Finance (0.4%):
	156,228	Synchrony Financial*		4,647,783

	Diversified Financial Services (1.4%):
	78,518	CME Group, Inc.		6,960,621
	266,178	Voya Financial, Inc.		11,280,623

				18,241,244

	Diversified Telecommunication Services (1.0%):
	138,734	France Telecom SA		2,359,069
	620,612	Koninklijke (Royal) KPN NV		1,956,422
	1,296,092	Telecom Italia SpA		1,374,369
	90,448	Telefonica SA		1,293,612
	151,784	Verizon Communications, Inc.		7,100,456

				14,083,928

	Electric Utilities (0.4%):
	148,055	FirstEnergy Corp.^		5,772,664

	Electronic Equipment, Instruments & Components (0.9%):
	495,936	Corning, Inc.		11,371,812

	Energy Equipment & Services (1.1%):
	162,026	Baker Hughes, Inc.		9,084,798
	179,267	Ensco plc, Class A, ADR^		5,369,047

				14,453,845


Shares			Fair Value
	Common Stocks, continued
	Food & Staples Retailing (0.2%):
	31,893	Wal-Mart Stores, Inc.	$	2,738,971

	Food Products (2.2%):
	200,772	Archer-Daniels-Midland Co.		10,440,144
	283,978	Mondelez International, Inc., Class A		10,315,501
	173,366	Unilever NV, NYS		6,768,209

				27,523,854

	Health Care Equipment & Supplies (0.6%):
	109,466	Medtronic, Inc.^		7,903,445

	Health Care Providers & Services (1.8%):
	73,676	Anthem, Inc.^		9,258,863
	42,130	Express Scripts Holding Co.*		3,567,147
	101,187	UnitedHealth Group, Inc.		10,228,994

				23,055,004

	Hotels, Restaurants & Leisure (1.1%):
	307,887	Carnival Corp.		13,956,518

	Household Products (0.8%):
	122,627	Procter & Gamble Co. (The)		11,170,093

	Industrial Conglomerates (1.9%):
	1,001,489	General Electric Co.		25,307,627

	Insurance (2.2%):
	95,721	Aon plc		9,077,222
	214,982	Marsh & McLennan Cos., Inc.^		12,305,570
	169,986	Willis Group Holdings plc		7,617,073

				28,999,865

	Internet Software & Services (1.0%):
	242,615	eBay, Inc.*		13,615,554

	IT Services (0.7%):
	191,783	Amdocs, Ltd.		8,947,636

	Machinery (1.6%):
	114,558	Caterpillar, Inc.		10,485,494
	166,125	Ingersoll-Rand plc		10,530,663

				21,016,157

	Media (3.9%):
	253,370	Comcast Corp., Class A^		14,697,994
	187,816	Thomson Reuters Corp.^		7,578,938
	64,368	Time Warner Cable, Inc.		9,787,798
	63,847	Time Warner Cable, Inc.		5,453,811
	181,728	Viacom, Inc., Class B		13,675,032

				51,193,573

	Metals & Mining (0.4%):
	221,728	Freeport-McMoRan Copper & Gold, Inc.		5,179,566

	Multiline Retail (1.2%):
	208,358	Target Corp.^		15,816,456

	Multi-Utilities (0.5%):
	125,950	PG&E Corp.		6,705,578

	Oil, Gas & Consumable Fuels (5.5%):
	83,537	Anadarko Petroleum Corp.^		6,891,803
	147,852	Apache Corp.^		9,265,885


Shares			Fair Value
	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	261,759	Canadian Natural Resources, Ltd.	$	8,095,035
	93,136	Exxon Mobil Corp.		8,610,423
	96,551	Occidental Petroleum Corp.		7,782,976
	644,206	Royal Dutch Shell plc, A Shares		21,350,542
	204,702	Total SA		10,553,026

				72,549,690

	Pharmaceuticals (5.1%):
	170,598	Eli Lilly & Co.^		11,769,556
	72,412	Hospira, Inc.*		4,435,235
	228,592	Merck & Co., Inc.		12,981,739
	6,023	Novartis AG, ADR		558,091
	120,962	Novartis AG, Registered Shares		11,127,929
	209,330	Pfizer, Inc.		6,520,630
	88,740	Sanofi-Aventis SA		8,086,443
	203,977	Teva Pharmaceutical Industries, Ltd., ADR		11,730,717

				67,210,340

	Road & Rail (0.5%):
	192,003	CSX Corp.		6,956,269

	Semiconductors & Semiconductor Equipment (2.8%):
	633,524	Applied Materials, Inc.^		15,787,418
	201,626	Broadcom Corp., Class A		8,736,455
	329,665	Intel Corp.^		11,963,543

				36,487,416

	Software (2.9%):
	129,231	Adobe Systems, Inc.*		9,395,094
	105,549	Citrix Systems, Inc.*		6,734,026
	223,394	Microsoft Corp.		10,376,651
	461,284	Symantec Corp.^		11,834,241

				38,340,012

	Technology Hardware, Storage & Peripherals (0.6%):
	187,182	NetApp, Inc.^		7,758,694

	Tobacco (0.7%):
	110,621	Philip Morris International, Inc.		9,010,080

	Wireless Telecommunication Services (0.6%):
	248,712	Vodafone Group plc, ADR		8,498,489

	Total Common Stocks (Cost $659,257,933)			847,949,720

	Convertible Preferred Stocks (0.6%):
	Banks (0.2%):
	13,608	KeyCorp, Series A^		1,746,077
	32,000	Wells Fargo & Co.		820,800

				2,566,877

	Capital Markets (0.3%):
	42,000	AMG Capital Trust II, 1.04%		2,593,500
	23,135	State Street Corp., Series D, 0.91%		598,271

				3,191,771

	Oil, Gas & Consumable Fuels (0.1%):
	27,346	El Paso Energy Capital Trust I		1,656,998

	Total Convertible Preferred Stocks (Cost $6,257,722)			7,415,646


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Convertible Bonds (7.2%):
	Air Freight & Logistics (0.2%):
$	2,153,000	UTI Worldwide, Inc., 4.50%, 3/1/19(a)	$	2,377,719

	Biotechnology (0.2%):
	1,987,000	BioMarin Pharmaceutical, Inc., 1.50%, 10/15/20		2,435,317

	Capital Markets (0.7%):
	1,200,000	Goldman Sachs Group, Inc. (The), 1.00%, 3/15/17, Callable 3/13/15 @ 100(a)		1,662,264
	4,530,000	Goldman Sachs Group, Inc. (The), 1.00%, 9/28/20(a)		5,100,191
	2,239,000	Jefferies Group, 3.88%, 11/1/29, Callable 11/1/17 @ 100		2,313,167

				9,075,622

	Communications Equipment (0.3%):
	1,340,000	Ciena Corp., 4.00%, 12/15/20		1,660,763
	2,734,000	JDS Uniphase Corp., 0.63%, 8/15/33, Callable 8/20/18 @ 200^		2,887,787

				4,548,550

	Energy Equipment & Services (0.2%):
	2,258,000	Helix Energy Solutions Group, Inc., 3.25%, 3/15/32, Callable 3/20/18 @ 100		2,507,791

	Health Care Equipment & Supplies (0.2%):
	1,899,000	NuVasive, Inc., 2.75%, 7/1/17		2,414,104

	Health Care Providers & Services (1.2%):
	2,281,000	Brookdale Senior Living, Inc., 2.75%, 6/15/18^		3,106,437
	2,875,000	HealthSouth Corp., 2.00%, 12/1/43, Callable 12/1/18 @ 100		3,196,641
	1,642,000	Omnicare, Inc., Series OCR, 3.25%, 12/15/35, Callable 1/15/18 @ 100		1,899,589
	1,407,000	Omnicare, Inc., 3.50%, 2/15/44, Callable 2/15/19 @ 93.09^		1,681,365
	4,397,000	WellPoint, Inc., 2.75%, 10/15/42		7,568,335

				17,452,367

	Insurance (0.4%):
	726,000	Old Republic International Corp., 3.75%, 3/15/18^		841,253
	1,295,000	Radian Group, Inc., 3.00%, 11/15/17		1,978,922
	1,141,000	Radian Group, Inc., 2.25%, 3/1/19		1,834,870

				4,655,045

	Internet & Catalog Retail (0.2%):
	1,462,000	Liberty Interactive LLC, 0.75%, 3/30/43, Callable 4/5/23 @ 200		2,077,868

	Media (0.5%):
	5,810,000	Liberty Media Corp., 1.38%, 10/15/23^(a)		5,730,113
	836,000	Live National Entertainment, Inc., 2.50%, 5/15/19(a)		883,025

				6,613,138


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Convertible Bonds, continued
	Oil, Gas & Consumable Fuels (0.4%):
$	2,123,000	Cobalt International Energy, Inc., 2.63%, 12/1/19	$	1,281,761
	1,989,000	Peabody Energy Corp., 4.75%, 12/15/41^		1,044,225
	3,337,000	Stone Energy Corp., 1.75%, 3/1/17^		2,901,105

				5,227,091

	Pharmaceuticals (0.4%):
	1,327,000	Jazz Pharmaceuticals, Inc., 1.88%, 8/15/21^(a)		1,501,169
	2,366,000	Salix Pharmaceuticals, Ltd., 1.50%, 3/15/19		4,313,514

				5,814,683

	Semiconductors & Semiconductor Equipment (0.9%):
	2,824,000	Lam Research Corp., 1.25%, 5/15/18^		3,992,430
	2,730,000	Micron Technology, Inc., Series G, 3.00%, 11/15/43, Callable 11/20/18 @ 83.04^		3,591,655
	3,464,000	NVIDIA Corp., 1.00%, 12/1/18(a)		3,981,435

				11,565,520

	Software (0.5%):
	4,408,000	Citrix Systems, Inc., 0.50%, 4/15/19^(a)		4,642,175
	2,055,000	NetSuite, Inc., 0.25%, 6/1/18		2,301,600

				6,943,775

	Technology Hardware, Storage & Peripherals (0.4%):
	4,379,000	SanDisk Corp., 0.50%, 10/15/20		5,260,274

	Thrifts & Mortgage Finance (0.5%):
	3,438,000	MGIC Investment Corp., 5.00%, 5/1/17		3,844,113
	1,557,000	MGIC Investment Corp., 2.00%, 4/1/20		2,278,086

				6,122,199

	Total Convertible Bonds (Cost $83,386,635)			95,091,063

	Corporate Bonds (8.0%):
	Aerospace & Defense (0.0%):
	380,000	L-3 Communications Holdings Corp., 3.95%, 5/28/24, Callable 2/28/24 @ 100		383,144
	200,000	Precision Castparts Corp., 2.50%, 1/15/23, Callable 10/15/22 @ 100		192,583

				575,727

	Air Freight & Logistics (0.1%):
	360,000	FedEx Corp., 4.90%, 1/15/34		402,072
	745,000	FedEx Corp., 5.10%, 1/15/44		860,226
	160,000	United Parcel Service, Inc., 2.45%, 10/1/22^		156,849

				1,419,147

	Airlines (0.1%):
	410,000	American Airlines 14-1, Series A, 3.70%, 10/1/26		413,608
	87,127	Continental Airlines 2010-A, Series A, 4.75%, 1/12/21		92,790
	277,852	Continental Airlines 2012-A, Series A, 4.15%, 4/11/24		285,492
	59,795	Delta Air Lines, Inc., 6.20%, 7/2/18		65,775
	490,000	United Airlines 2014-2, Series A, 3.75%, 3/3/28		493,675

				1,351,340


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Automobiles (0.0%):
$	550,000	Ford Motor Co., 4.75%, 1/15/43^	$	580,316

	Banks (0.5%):
	330,000	Bank of America Corp., 1.25%, 1/11/16, MTN^		330,579
	295,000	Bank of America Corp., 5.75%, 12/1/17		325,945
	175,000	Bank of America Corp., 5.65%, 5/1/18, MTN		194,420
	995,000	JPMorgan Chase & Co., Series X, 6.10%, 10/29/49, Callable 10/1/24 @ 100^(b)		992,513
	570,000	JPMorgan Chase & Co., Series V, 5.00%, 12/29/49, Callable 7/1/19 @ 100^		557,709
	130,000	PNC Funding Corp., 5.13%, 2/8/20^		146,077
	1,945,000	Regions Financial Corp., 5.75%, 6/15/15		1,985,395
	250,000	U.S. Bank NA, 3.78%, 4/29/20, Callable 4/29/15 @ 100(b)		252,244
	110,000	Wells Fargo & Co., 1.50%, 1/16/18		109,398
	405,000	Wells Fargo & Co., 4.10%, 6/3/26, MTN^		413,933
	1,200,000	Wells Fargo & Co., 4.65%, 11/4/44, MTN		1,238,233

				6,546,446

	Beverages (0.1%):
	135,000	Anheuser-Busch InBev NV Worldwide, Inc., 3.63%, 4/15/15		136,189
	175,000	Anheuser-Busch InBev NV Worldwide, Inc., 0.80%, 7/15/15		175,281
	175,000	Brown-Forman Corp., 2.25%, 1/15/23, Callable 10/15/22 @ 100		166,316
	990,000	PepsiCo, Inc., 3.60%, 3/1/24, Callable 12/1/23 @ 100^		1,034,226

				1,512,012

	Biotechnology (0.2%):
	335,000	Celgene Corp., 4.00%, 8/15/23		352,597
	1,220,000	Celgene Corp., 4.63%, 5/15/44, Callable 11/15/43 @ 100		1,265,464
	560,000	Gilead Sciences, Inc., 2.05%, 4/1/19^		560,080

				2,178,141

	Capital Markets (0.4%):
	380,000	Apollo Management Holdings LP, 4.00%, 5/30/24(a)		386,737
	120,000	Bear Stearns Co., Inc., 7.25%, 2/1/18		138,306
	180,000	Charles Schwab Corp. (The), 4.45%, 7/22/20		197,712
	1,470,000	Ford Motor Credit Co. LLC, 2.75%, 5/15/15		1,479,836
	240,000	Ford Motor Credit Co. LLC, 2.50%, 1/15/16^		242,685
	75,000	General Electric Capital Corp., Series G, 6.00%, 8/7/19, MTN^		87,238
	115,000	Goldman Sachs Group, Inc. (The), 6.15%, 4/1/18		129,078
	520,000	Goldman Sachs Group, Inc. (The), 2.63%, 1/31/19^		523,175
	175,000	Goldman Sachs Group, Inc. (The), 5.25%, 7/27/21		197,516


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Capital Markets, continued
$	140,000	Goldman Sachs Group, Inc. (The), 6.75%, 10/1/37	$	176,033
	200,000	KKR Group Finance Co. III LLC, 5.13%, 6/1/44, Callable 1/1/44 @ 100(a)		215,660
	235,000	Morgan Stanley, 4.00%, 7/24/15		239,423
	295,000	Morgan Stanley, 3.45%, 11/2/15		300,756
	365,000	Morgan Stanley, 6.38%, 7/24/42		484,732
	90,000	National Rural Utilities Cooperative Finance Corp., 3.05%, 2/15/22, Callable 11/15/21 @ 100^		90,838

				4,889,725

	Chemicals (0.1%):
	749,000	Eastman Chemical Co., 2.70%, 1/15/20, Callable 12/15/19 @ 100		753,250
	275,000	Monsanto Co., 2.13%, 7/15/19		273,984
	190,000	Monsanto Co., 3.38%, 7/15/24, Callable 4/15/24 @ 100^		193,053
	200,000	Monsanto Co., 3.60%, 7/15/42, Callable 1/15/42 @ 100		182,186

				1,402,473

	Commercial Services & Supplies (0.0%):
	430,000	Pitney Bowes, Inc., 4.63%, 3/15/24, Callable 12/15/23 @ 100^		440,154

	Communications Equipment (0.0%):
	290,000	Juniper Networks, Inc., 4.50%, 3/15/24^		292,728

	Consumer Finance (0.2%):
	318,000	American Express Co., 3.63%, 12/5/24, Callable 11/4/24 @ 100^		320,651
	1,600,000	American Express Credit Corp., 2.75%, 9/15/15, MTN		1,624,684
	1,275,000	Santander Holdings USA, 3.00%, 9/24/15, Callable 8/24/15 @ 100		1,290,282

				3,235,617

	Containers & Packaging (0.1%):
	905,000	Packaging Corp. of America, 4.50%, 11/1/23, Callable 8/1/23 @ 100^		947,997

	Diversified Financial Services (0.6%):
	551,000	Bayer US Finance LLC, 3.00%, 10/8/21^(a)		555,480
	710,000	Citigroup, Inc., 6.01%, 1/15/15		711,010
	550,000	Citigroup, Inc., 2.65%, 3/2/15		551,621
	665,000	Citigroup, Inc., 3.50%, 5/15/23^		647,371
	595,000	Citigroup, Inc., 6.68%, 9/13/43		769,367
	220,000	Citigroup, Inc., 5.30%, 5/6/44^		241,047
	600,000	General Electric Capital Corp., 5.25%, 12/31/99, Callable 6/15/23 @ 100, Perpetual Bond(b)		600,562
	925,000	Glencore Funding LLC, 3.13%, 4/29/19^(a)		927,220
	65,000	JPMorgan Chase & Co., 6.30%, 4/23/19		75,502
	215,000	JPMorgan Chase & Co., 4.50%, 1/24/22^		234,727
	710,000	JPMorgan Chase & Co., 3.88%, 9/10/24^		710,604


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Diversified Financial Services, continued
$	185,000	JPMorgan Chase & Co., Series S, 6.75%, 12/31/49, Callable 2/1/24 @ 100, Perpetual Bond^(b)	$	195,175
	785,000	Moody’s Corp., 4.50%, 9/1/22, Callable 6/1/22 @ 100^		841,950
	500,000	Moody’s Corp., 4.88%, 2/15/24, Callable 11/15/23 @ 100^		550,387

				7,612,023

	Diversified Telecommunication Services (0.2%):
	405,000	Verizon Communications, Inc., 5.15%, 9/15/23		447,214
	1,375,000	Verizon Communications, Inc., 6.40%, 9/15/33		1,693,703
	305,000	Verizon Communications, Inc., 4.40%, 11/1/34, Callable 5/1/34 @ 100		303,164
	498,000	Verizon Communications, Inc., 5.01%, 8/21/54^(a)		515,205

				2,959,286

	Electrical Equipment (0.0%):
	405,000	Eaton Corp., 0.95%, 11/2/15		405,359

	Energy Equipment & Services (0.1%):
	960,000	Rowan Cos., Inc., 5.85%, 1/15/44, Callable 7/15/43 @ 100^		885,347

	Food & Staples Retailing (0.2%):
	85,000	Corn Products International, Inc., 6.63%, 4/15/37		107,636
	335,000	CVS Caremark Corp., 3.38%, 8/12/24, Callable 5/12/24 @ 100^		338,251
	1,085,000	Kroger Co. (The), 3.30%, 1/15/21, Callable 12/15/20 @ 100		1,101,049
	780,000	Sysco Corp., 3.50%, 10/2/24, Callable 7/2/24 @ 100		802,632
	315,000	Wal-Mart Stores, Inc., 3.30%, 4/22/24, Callable 1/22/24 @ 100		325,242

				2,674,810

	Food Products (0.3%):
	2,185,000	Bunge, Ltd. Finance Corp., 5.10%, 7/15/15		2,232,450
	795,000	General Mills, Inc., 2.20%, 10/21/19^		788,321
	132,000	Mondelez International, Inc., 6.50%, 2/9/40		175,921
	214,000	Tyson Foods, Inc., 3.95%, 8/15/24, Callable 5/15/24 @ 100^		221,216
	193,000	Tyson Foods, Inc., 4.88%, 8/15/34, Callable 2/15/34 @ 100		211,715
	199,000	Tyson Foods, Inc., 5.15%, 8/15/44, Callable 2/15/43 @ 100^		223,512

				3,853,135

	Health Care Equipment & Supplies (0.3%):
	297,000	Becton, Dickinson & Co., 2.68%, 12/15/19		300,906
	465,000	CareFusion Corp., 3.88%, 5/15/24, Callable 2/15/24 @ 100^		479,876
	370,000	CareFusion Corp., 4.88%, 5/15/44, Callable 11/15/43 @ 100		394,109


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Health Care Equipment & Supplies, continued
$	525,000	Edwards Lifesciences Corp., 2.88%, 10/15/18	$	532,211
	1,017,000	Medtronic, Inc., 3.15%, 3/15/22(a)		1,029,891
	361,000	Medtronic, Inc., 4.38%, 3/15/35(a)		382,969
	290,000	Medtronic, Inc., 4.00%, 4/1/43, Callable 10/1/42 @ 100		276,498
	465,000	Medtronic, Inc., 4.63%, 3/15/44, Callable 9/15/43 @ 100		500,548

				3,897,008

	Health Care Providers & Services (0.3%):
	220,000	Aetna, Inc., 3.95%, 9/1/20		232,303
	840,000	Express Scripts Holding Co., 2.25%, 6/15/19		831,005
	950,000	McKesson Corp., 2.28%, 3/15/19^		948,016
	1,555,000	WellPoint, Inc., 1.25%, 9/10/15		1,561,292

				3,572,616

	Hotels, Restaurants & Leisure (0.0%):
	305,000	Wyndham Worldwide Corp., 2.95%, 3/1/17, Callable 2/1/17 @ 100		311,477
	225,000	Wyndham Worldwide Corp., 5.63%, 3/1/21		251,594

				563,071

	Household Durables (0.0%):
	635,000	MDC Holdings, Inc., 6.00%, 1/15/43, Callable 10/15/42 @ 100		527,050

	Household Products (0.1%):
	695,000	Tupperware Brands Corp., 4.75%, 6/1/21, Callable 6/1/21 @ 100		743,959

	Independent Power and Renewable Electricity Producers (0.1%):
	175,000	Louisville Gas & Electric Co., 1.63%, 11/15/15		176,324
	520,000	Oglethorpe Power Corp., 4.55%, 6/1/44		548,231
	125,000	Ohio Power Co., Series M, 5.38%, 10/1/21		144,598

				869,153

	Insurance (0.6%):
	1,000,000	American Financial Group, Inc., 9.88%, 6/15/19		1,284,564
	345,000	American International Group, Inc., 2.30%, 7/16/19, Callable 6/16/19 @ 100^		345,351
	205,000	Berkley (WR) Corp., 4.63%, 3/15/22^		219,827
	115,000	CNA Financial Corp., 5.88%, 8/15/20^		131,277
	870,000	Farmers Exchange Capital III, 5.45%, 10/15/54, Callable 10/15/34 @ 100(a)(b)		896,100
	675,000	Hartford Financial Services Group, Inc. (The), 4.00%, 3/30/15		680,336
	660,000	Liberty Mutual Group, Inc., 4.85%, 8/1/44(a)		670,873
	320,000	Lincoln National Corp., 4.00%, 9/1/23^		331,993
	210,000	Markel Corp., 5.00%, 3/30/43		222,998
	295,000	Marsh & McLennan Cos., Inc., 4.05%, 10/15/23, Callable 7/15/23 @ 100		311,685
	860,000	Nationwide Financial Services, Inc., 5.30%, 11/18/44(a)		907,260
	75,000	Pacific Life Corp., 6.00%, 2/10/20(a)		85,251


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Insurance, continued
$	80,000	Prudential Financial, Inc., Series D, 4.75%, 9/17/15, MTN	$	82,090
	35,000	Prudential Financial, Inc., 6.63%, 12/1/37, MTN		46,192
	280,000	Prudential Financial, Inc., 5.10%, 8/15/43, MTN^		315,381
	560,000	Reinsurance Group of America, Inc., 4.70%, 9/15/23		601,752
	440,000	Travelers Cos., Inc. (The), 4.60%, 8/1/43^		493,947

				7,626,877

	Internet & Catalog Retail (0.1%):
	846,000	Amazon.com, Inc., 4.80%, 12/5/34, Callable 6/5/34 @ 100		888,078
	795,000	QVC, Inc., 5.45%, 8/15/34, Callable 2/15/34 @ 100		775,739

				1,663,817

	IT Services (0.0%):
	315,000	Computer Sciences Corp., 4.45%, 9/15/22		322,218

	Machinery (0.0%):
	655,000	Deere & Co., 2.60%, 6/8/22, Callable 3/8/22 @ 100		644,373

	Media (0.9%):
	135,000	Comcast Corp., 5.70%, 5/15/18		152,017
	415,000	Comcast Corp., 4.25%, 1/15/33		439,455
	245,000	Comcast Corp., 6.45%, 3/15/37		325,953
	1,520,000	Cox Communications, Inc., 8.38%, 3/1/39(a)		2,166,997
	240,000	Cox Communications, Inc., 4.70%, 12/15/42(a)		239,787
	2,185,000	DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 5.15%, 3/15/42		2,257,891
	1,445,000	Discovery Communications, Inc., 3.70%, 6/1/15		1,461,441
	200,000	Interpublic Group of Cos., Inc., 2.25%, 11/15/17		200,379
	65,000	NBCUniversal Media LLC, 5.15%, 4/30/20		73,762
	75,000	NBCUniversal Media LLC, 5.95%, 4/1/41		96,444
	2,000,000	Time Warner Cable, Inc., 5.00%, 2/1/20		2,203,970
	160,000	Time Warner Cable, Inc., 5.88%, 11/15/40, Callable 5/15/40 @ 100		190,777
	40,000	Time Warner, Inc., 5.88%, 11/15/16		43,358
	328,000	Viacom, Inc., 4.85%, 12/15/34, Callable 6/15/34 @ 100		335,664

				10,187,895

	Metals & Mining (0.0%):
	350,000	Barrick NA Finance LLC, 5.70%, 5/30/41		343,627
	215,000	Newmont Mining Corp., 3.50%, 3/15/22, Callable 12/15/21 @ 100^		202,046
	72,000	Southern Copper Corp., 5.25%, 11/8/42^		64,321

				609,994


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Multiline Retail (0.0%):
$	330,000	Dollar General Corp., 3.25%, 4/15/23, Callable 1/15/23 @ 100	$	300,381

	Multi-Utilities (0.0%):
	250,000	Dominion Resources, Inc., 5.75%, 10/1/54, Callable 10/1/24 @ 100^(b)		260,854

	Oil, Gas & Consumable Fuels (1.0%):
	335,000	Chevron Corp., 1.72%, 6/24/18, Callable 5/24/18 @ 100^		336,693
	808,000	ConocoPhillips Co., 2.88%, 11/15/21, Callable 9/15/21 @ 100		816,056
	867,000	ConocoPhillips Co., 4.15%, 11/15/34, Callable 5/15/34 @ 100		889,614
	405,000	Devon Energy Corp., 2.25%, 12/15/18, Callable 11/15/18 @ 100^		403,540
	385,000	Devon Energy Corp., 3.25%, 5/15/22, Callable 2/15/22 @ 100^		378,207
	385,000	Enable Midstream Partners LP, 2.40%, 5/15/19, Callable 4/15/19 @ 100(a)		374,452
	55,000	Enterprise Products Operating LP, 5.25%, 1/31/20		60,792
	75,000	Enterprise Products Partners LP, 6.50%, 1/31/19^		85,962
	350,000	Enterprise Products Partners LP, 2.55%, 10/15/19, Callable 9/15/19 @ 100		346,476
	503,000	Kinder Morgan (Delaware), Inc., 5.30%, 12/1/34, Callable 6/1/34 @ 100^		510,573
	1,670,000	Marathon Oil Corp., 0.90%, 11/1/15		1,665,128
	640,000	Noble Energy, Inc., 5.25%, 11/15/43, Callable 5/15/43 @ 100		649,950
	190,000	Phillips 66, 1.95%, 3/5/15		190,481
	175,000	Plains All American Pipeline LP, 3.65%, 6/1/22, Callable 3/1/22 @ 100		175,946
	365,000	Southwestern Energy Co., 4.10%, 3/15/22, Callable 12/15/21 @ 100^		358,208
	45,000	Spectra Energy Capital Corp., 7.50%, 9/15/38		54,313
	470,000	Sunoco Logistics Partners LP, 5.50%, 2/15/20		514,174
	710,000	Sunoco Logistics Partners LP, 5.30%, 4/1/44, Callable 10/1/43 @ 100^		715,645
	45,000	Texas East Transmission, 7.00%, 7/15/32		60,414
	215,000	Valmont Industries, Inc., 5.00%, 10/1/44, Callable 4/1/44 @ 100		217,447
	830,000	Western Gas Partners LP, 5.45%, 4/1/44, Callable 10/1/43 @ 100		874,066
	1,200,000	Williams Partners LP, 3.80%, 2/15/15		1,203,428
	755,000	Williams Partners LP, 5.40%, 3/4/44, Callable 9/4/43 @ 100		739,143

				11,620,708

	Paper & Forest Products (0.0%):
	125,000	International Paper Co., 6.00%, 11/15/41, Callable 5/15/41 @ 100		146,341


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Personal Products (0.0%):
$	18,000	Avon Products, Inc., 2.38%, 3/15/16	$	17,820

	Pharmaceuticals (0.2%):
	885,000	AbbVie, Inc., 1.20%, 11/6/15		887,601
	110,000	Express Scripts, Inc., 3.13%, 5/15/16		113,074
	85,000	GlaxoSmithKline plc, 5.65%, 5/15/18^		95,755
	75,000	Medco Health Solutions, Inc., 2.75%, 9/15/15		75,984
	95,000	Merck & Co., Inc., 5.00%, 6/30/19^		107,245
	567,000	Walgreens Boots Alliance, Inc., 3.30%, 11/18/21, Callable 9/18/21 @ 100		570,945
	418,000	Walgreens Boots Alliance, Inc., 4.50%, 11/18/34, Callable 5/18/34 @ 100		435,306
	213,000	Zoetis, Inc., 4.70%, 2/1/43, Callable 8/1/42 @ 100		216,786

				2,502,696

	Real Estate Investment Trusts (REITs) (0.2%):
	55,000	American Tower Corp., 4.63%, 4/1/15		55,491
	510,000	American Tower Corp., 3.40%, 2/15/19^		519,088
	115,000	Digital Realty Trust LP, 4.50%, 7/15/15^		116,092
	410,000	HCP, Inc., 4.20%, 3/1/24, Callable 12/1/23 @ 100		426,885
	475,000	HCP, Inc., 3.88%, 8/15/24, Callable 5/15/24 @ 100		482,513
	125,000	Realty Income Corp., 2.00%, 1/31/18, Callable 12/31/17 @ 100		125,230
	185,000	Senior Housing Properties Trust, 4.30%, 1/15/16, Callable 10/15/15 @ 100		188,862
	240,000	Ventas Realty LP / Capital Corp., 2.70%, 4/1/20, Callable 1/1/20 @ 100^		237,491
	95,000	Ventas Realty LP / Capital Corp., 4.25%, 3/1/22		99,818
	155,000	Ventas Realty LP / Capital Corp., 5.70%, 9/30/43, Callable 3/30/43 @ 100^		185,945

				2,437,415

	Real Estate Management & Development (0.0%):
	510,000	Piedmont Operating Partnership LP, 4.45%, 3/15/24, Callable 12/15/23 @ 100		524,249

	Road & Rail (0.3%):
	1,370,000	Burlington Northern Santa Fe LLC, 5.15%, 9/1/43, Callable 3/1/43 @ 100^		1,579,773
	140,000	CSX Corp., 5.50%, 4/15/41, Callable 10/15/40 @ 100^		168,898
	845,000	ERAC USA Finance LLC, 2.35%, 10/15/19(a)		838,702
	105,000	Ryder System, Inc., 3.15%, 3/2/15, MTN		105,399
	18,000	Union Pacific Corp., 3.65%, 2/15/24, Callable 11/15/23 @ 100		19,051
	140,000	Union Pacific Corp., 3.25%, 1/15/25, Callable 10/1/24 @ 100^		143,740
	465,000	Union Pacific Corp., 4.85%, 6/15/44, Callable 12/15/43 @ 100^		533,659
	400,000	Union Pacific Corp., 4.15%, 1/15/45, Callable 7/15/44 @ 100		416,887

				3,806,109


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Software (0.1%):
$	75,000	Adobe Systems, Inc., 4.75%, 2/1/20	$	82,330
	545,000	Oracle Corp., 4.30%, 7/8/34, Callable 1/8/34 @ 100^		583,516

				665,846

	Specialty Retail (0.3%):
	520,000	Advance Auto Parts, Inc., 4.50%, 12/1/23, Callable 9/1/23 @ 100		551,007
	638,546	CVS Pass-Through Trust, 6.04%, 12/10/28		744,611
	1,400,000	O’Reilly Automotive, Inc., 4.88%, 1/14/21, Callable 10/14/20 @ 100		1,537,146
	365,000	Penske Truck Leasing Co. LP, 2.50%, 3/15/16(a)		370,023
	337,000	Ross Stores, Inc., 3.38%, 9/15/24, Callable 6/15/24 @ 100^		337,298
	355,000	Target Corp., 2.90%, 1/15/22^		359,199
	15,000	Wal-Mart Stores, Inc., 6.50%, 8/15/37		20,640

				3,919,924

	Textiles, Apparel & Luxury Goods (0.0%):
	195,000	Cintas Corp., 2.85%, 6/1/16		199,928

	Tobacco (0.2%):
	410,000	Altria Group, Inc., 4.13%, 9/11/15^		419,320
	310,000	Philip Morris International, Inc., 3.60%, 11/15/23^		323,535
	500,000	Philip Morris International, Inc., 3.25%, 11/10/24^		500,244
	925,000	Philip Morris International, Inc., 4.88%, 11/15/43^		1,031,217

				2,274,316

	Trading Companies & Distributors (0.0%):
	395,000	Air Lease Corp., 4.25%, 9/15/24, Callable 6/15/24 @ 100		397,963

	Wireless Telecommunication Services (0.1%):
	1,000	AT&T, Inc., 8.00%, 11/15/31		1,474
	28,000	AT&T, Inc., 5.35%, 9/1/40^		30,319
	730,000	Crown Castle Towers LLC, 6.11%, 1/15/20(a)		838,508
	25,000	SBC Communications, Inc., 6.15%, 9/15/34		29,691
	120,000	Verizon Communications, Inc., 6.40%, 2/15/38		148,063

				1,048,055

	Total Corporate Bonds (Cost $101,977,219)			105,112,419

	Yankee Dollars (1.8%):
	Aerospace & Defense (0.0%):
	275,000	Heathrow Funding, Ltd., 2.50%, 6/25/15(a)		275,165

	Airlines (0.1%):
	827,888	Virgin Australia Holdings, Ltd., 5.00%, 10/23/23(a)		852,726

	Banks (0.8%):
	430,000	Banco Inbursa SA, 4.13%, 6/6/24^(a)		421,400
	175,000	Barclays Bank plc, 6.75%, 5/22/19		205,923
	615,000	BBVA Bancomer SA, 4.38%, 4/10/24(a)		618,075


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Yankee Dollars, continued
	Banks, continued
$	490,000	BNP Paribas, 4.25%, 10/15/24^	$	495,044
	564,000	Credit Suisse AG, 6.50%, 8/8/23(a)		619,115
	320,000	Credit Suisse, NY, 3.63%, 9/9/24		325,516
	105,000	HBOS plc, Series G, 6.75%, 5/21/18, MTN(a)		117,022
	200,000	HSBC Holdings plc, 4.25%, 3/14/24		208,116
	375,000	ING Bank NV, 3.75%, 3/7/17(a)		392,438
	435,000	Lloyds Bank plc, 2.30%, 11/27/18		439,109
	2,425,000	Mizuho Finance Group (Cayman) 3, Ltd., 4.60%, 3/27/24(a)		2,512,716
	125,000	National Australia Bank, 3.75%, 3/2/15(a)		125,622
	1,200,000	Santander U.S. Debt SA, 3.72%, 1/20/15(a)		1,201,643
	995,000	Societe Generale SA, 5.00%, 1/17/24(a)		1,000,453
	100,000	Standard Chartered plc, 3.85%, 4/27/15(a)		100,954
	545,000	Standard Chartered plc, 5.70%, 3/26/44(a)		566,906
	35,000	UBS AG Stamford CT, Series BKNT, 5.88%, 12/20/17		39,081
	120,000	UBS AG Stamford CT, Series BKNT, 5.75%, 4/25/18		134,993

				9,524,126

	Beverages (0.0%):
	80,000	FBG Finance, Ltd., 5.13%, 6/15/15(a)		81,584

	Chemicals (0.1%):
	650,000	Montell Finance Co. BV, 8.10%, 3/15/27(a)		871,042

	Diversified Financial Services (0.1%):
	830,000	BP Capital Markets plc, 2.24%, 5/10/19^		828,993

	Diversified Telecommunication Services (0.0%):
	465,000	British Telecommunications plc, 1.25%, 2/14/17		462,685
	320,000	Telefonica Emisiones SAU, 7.05%, 6/20/36		420,954

				883,639

	Electric Utilities (0.2%):
	50,000	Electricite de France SA, 4.60%, 1/27/20(a)		55,049
	765,000	Electricite de France SA, 4.88%, 1/22/44(a)		849,029
	785,000	Electricite de France SA, 5.63%, 12/31/49, Callable 1/22/24 @ 100, Perpetual Bond(a)(b)		827,194

				1,731,272

	Food Products (0.1%):
	685,000	Grupo Bimbo SAB de C.V., 3.88%, 6/27/24(a)		687,692

	Industrial Conglomerates (0.0%):
	350,000	Pentair Finance SA, 5.00%, 5/15/21, Callable 2/15/21 @ 100		389,322

	Insurance (0.0%):
	100,000	AEGON NV, 4.63%, 12/1/15		103,467

	Internet Software & Services (0.1%):
	455,000	Baidu, Inc., 3.25%, 8/6/18		465,107
	490,000	Tencent Holdings, Ltd., 3.38%, 5/2/19(a)		498,055

				963,162

	Media (0.0%):
	400,000	Grupo Televisa SAB, 5.00%, 5/13/45		406,896


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Yankee Dollars, continued
	Metals & Mining (0.1%):
$	205,000	ArcelorMittal, 4.25%, 8/5/15	$	208,075
	145,000	ArcelorMittal, 9.85%, 6/1/19		175,088
	30,000	ArcelorMittal, 7.25%, 3/1/41^		30,300
	265,000	Gold Fields Holdings Co., Ltd., 4.88%, 10/7/20(a)		222,600
	100,000	Rio Tinto Finance (USA), Ltd., 9.00%, 5/1/19		126,516
	110,000	Rio Tinto Finance (USA), Ltd., 7.13%, 7/15/28		143,290
	380,000	Vale Overseas, Ltd., 5.63%, 9/15/19		404,328
	65,000	Vale SA, 5.63%, 9/11/42		60,542
	230,000	Xstrata Finance Canada, 1.80%, 10/23/15(a)		231,497
	230,000	Xstrata Finance Canada, 2.70%, 10/25/17^(a)		232,692

				1,834,928

	Oil, Gas & Consumable Fuels (0.0%):
	150,000	Husky Energy, Inc., 3.95%, 4/15/22, Callable 1/15/22 @ 100		150,522
	70,000	Noble Holding International, Ltd., 2.50%, 3/15/17		66,965
	390,000	Petrobras Global Finance Co., 5.63%, 5/20/43		317,947
	40,000	Shell International Finance BV, 3.10%, 6/28/15		40,507
	315,000	Suncor Energy, Inc., 3.60%, 12/1/24, Callable 9/1/24 @ 100		311,269

				887,210

	Pharmaceuticals (0.1%):
	850,000	Actavis Funding SCS, 4.85%, 6/15/44, Callable 12/15/43 @ 100		862,525
	310,000	Perrigo Co. plc, 2.30%, 11/8/18		309,756

				1,172,281

	Real Estate Management & Development (0.0%):
	430,000	Dexus Diversified Trust / Dexus Office Trust, 5.60%, 3/15/21(a)		488,204

	Technology Hardware, Storage & Peripherals (0.1%):
	665,000	Seagate HDD Cayman, 5.75%, 12/1/34, Callable 6/1/34 @ 100(a)		701,332

	Thrifts & Mortgage Finance (0.0%):
	180,000	Nationwide Building Society, 6.25%, 2/25/20(a)		211,144

	Wireless Telecommunication Services (0.0%):
	200,000	America Movil SAB de C.V., 2.38%, 9/8/16		202,744
	335,000	America Movil SAB de C.V., 4.38%, 7/16/42		320,930
	75,000	Deutsche Telekom International Finance BV, 6.00%, 7/8/19		87,007
	355,000	Rogers Communications, Inc., 4.50%, 3/15/43, Callable 9/15/42 @ 100		356,929

				967,610

	Total Yankee Dollars (Cost $23,275,744)			23,861,795


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	U.S. Government Agency Mortgages (0.1%):
$	950,000	Federal Home Loan Mortgage Corporation, 4.88%, 6/13/18^	$	1,061,981
	725,000	Federal National Mortgage Association, 6.63%, 11/15/30		832,187

				1,894,168

	Total U.S. Government Agency Mortgages (Cost $1,744,674)			1,894,168

	U.S. Treasury Obligations (10.4%):
	U.S. Treasury Bonds (0.1%)
	1,220,000	3.13%, 8/15/44^		1,313,406

	U.S. Treasury Notes (10.3%)
	11,470,000	2.25%, 1/31/15^		11,489,270
	21,879,000	0.63%, 12/31/16		21,849,945
	200,000	0.63%, 5/31/17		198,859
	8,000,000	0.75%, 6/30/17^		7,970,000
	43,495,000	1.00%, 12/15/17^		43,393,047
	13,200,000	0.75%, 2/28/18^		13,018,500
	6,200,000	1.25%, 1/31/19		6,140,424
	16,793,200	1.63%, 12/31/19		16,768,279
	6,000	3.63%, 2/15/20		6,578
	400,000	2.63%, 11/15/20		417,531
	14,279,900	2.25%, 11/15/24^		14,375,847

				135,628,280

	Total U.S. Treasury Obligations (Cost $136,969,611)			136,941,686

	Securities Held as Collateral for Securities on Loan (17.0%):
	224,257,658	Allianz Variable Insurance Products Securities Lending Collateral Trust(c)		224,257,658

	Total Securities Held as Collateral for Securities on Loan (Cost $224,257,658)			224,257,658

	Unaffiliated Investment Company (7.4%):
	96,897,938	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(d)		96,897,938

	Total Unaffiliated Investment Company (Cost $96,897,938)			96,897,938

	Total Investment Securities (Cost $1,334,025,134)(e) — 116.9%			1,539,422,093
	Net other assets (liabilities) — (16.9)%			(222,327,339	)

	Net Assets — 100.0%		$	1,317,094,754

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

At December 31, 2014, the Fund’s open forward currency contracts were as follows:


Type of Contract	Counterparty	Delivery Date		Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
British Pound	Bank of New York Mellon		1/9/15		6,720,703	$	10,564,340	$	10,472,822	$	91,518
British Pound	State Street		1/9/15		6,724,180		10,572,630		10,478,240		94,390
Canadian Dollar	Bank of New York Mellon		1/9/15		6,888,230		6,047,028		5,929,297		117,731
Canadian Dollar	State Street		1/9/15		6,907,539		6,063,979		5,945,918		118,061
European Euro	Bank of New York Mellon		1/9/15		10,348,477		12,912,415		12,521,828		390,587
European Euro	State Street		1/9/15		10,362,760		12,930,393		12,539,111		391,282
Israeli Shekel	Bank of New York Mellon		1/9/15		16,898,963		4,309,641		4,339,638		(29,997	)
Israeli Shekel	State Street		1/9/15		16,958,438		4,321,722		4,354,911		(33,189	)
Swiss Franc	Bank of New York Mellon		1/9/15		4,424,887		4,593,658		4,452,811		140,847
Swiss Franc	State Street		1/9/15		4,434,139		4,602,259		4,462,121		140,138

						$	76,918,065	$	75,496,697	$	1,421,368

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	1,334,025,134

Investment securities, at value*	$	1,539,422,093
Cash		41,852
Interest and dividends receivable		3,395,115
Foreign currency, at value (cost $414,715)		406,890
Unrealized appreciation on forward currency contracts		1,484,554
Receivable for capital shares issued		227,562
Receivable for investments sold		3,107,460
Reclaims receivable		62,046
Prepaid expenses		10,841

Total Assets		1,548,158,413

Liabilities:
Unrealized depreciation on forward currency contracts		63,186
Payable for investments purchased		4,963,090
Payable for capital shares redeemed		689,544
Payable for collateral received on loaned securities		224,257,658
Manager fees payable		728,721
Administration fees payable		31,915
Distribution fees payable		277,827
Custodian fees payable		10,688
Administrative and compliance services fees payable		2,729
Trustee fees payable		55
Other accrued liabilities		38,246

Total Liabilities		231,063,659

Net Assets	$	1,317,094,754

Net Assets Consist of:
Capital	$	1,030,996,528
Accumulated net investment income/(loss)		26,606,519
Accumulated net realized gains/(losses) from investment transactions		52,688,515
Net unrealized appreciation/(depreciation) on investments		206,803,192

Net Assets	$	1,317,094,754

Shares of beneficial interest (unlimited number of shares authorized, no par value)		79,822,140
Net Asset Value (offering and redemption price per share)	$	16.50

*	Includes securities on loan of $217,877,596.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	22,684,270
Interest		7,557,508
Income from securities lending		448,732
Foreign withholding tax		(378,930	)

Total Investment Income		30,311,580

Expenses:
Manager fees		9,004,823
Administration fees		357,559
Distribution fees		3,001,608
Custodian fees		58,642
Administrative and compliance services fees		15,865
Trustee fees		60,590
Professional fees		68,548
Shareholder reports		43,714
Other expenses		28,085

Total expenses before reductions		12,639,434
Less expenses voluntarily waived/reimbursed by the Manager		(1,125,638	)
Less expenses paid indirectly		(1,248	)

Net expenses		11,512,548

Net Investment Income/(Loss)		18,799,032

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		57,472,407
Net realized gains/(losses) on forward currency contracts		6,039,733
Change in net unrealized appreciation/depreciation on investments		15,194,631

Net Realized/Unrealized Gains/(Losses) on Investments		78,706,771

Change in Net Assets Resulting From Operations	$	97,505,803

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Invesco Equity and Income Fund (the “Fund”), and 30 are presented in separate reports.

Dividends to shareholders are recorded on the ex-dividend date. The Fund distributes its dividends from net investment income and net realized capital gains, if any, on an annual basis. The amount of dividends from net investment income and from net realized gains is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These “book/tax” differences are either temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital, net operating loss, and reclassification of certain distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales and post October losses) do not require reclassification. Dividends to shareholders that exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $44,464 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund entered into forward currency contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or the seller, is the unrealized appreciation of the contract. The forward currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The contract amount of forward currency contracts outstanding was $76.9 million as of December 31, 2014. The monthly average amount for these contracts was $65.7 million for the year ended December 31, 2014.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Invesco Advisers, Inc. (“Invesco”), Invesco provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $14,673 was paid from the Fund relating to these fees and expenses.

Forward currency contracts are generally valued at the foreign currency exchange rate as of the close of the NYSE and are typically categorized as Level 2 in the fair value hierarchy.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

For the year ended December 31, 2014, purchases and sales on long-term U.S. government securities were as follows:

Cost for federal income tax purposes at December 31, 2014 is $1,336,953,404. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Invesco Equity and Income Fund (the Fund) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $32,152,401.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Invesco Growth and Income Fund returned 10.00%. That compared to a 13.45% total return for its benchmark, the Russell 1000^® Value Index¹.

Sectors within the Russell 1000^® Value Index were mixed for the reporting period. Some sectors, such as information technology, utilities and health care, returned more than 20%, while others, such as materials and telecommunication services, posted low single-digit returns. Energy was the only sector to post negative returns during the period.

In this environment, stock selection and underweight positions in consumer staples and financials hurt relative performance. In particular, a lack of exposure to REITs² in the financial sector—adopted because we believed REITs were overvalued—hurt performance when investor demand for yield drove up the prices of those investments.*

Weak stock selection within the consumer discretionary sector also detracted from performance versus the benchmark. The Fund also held a cash position for liquidity purposes. While this allocation was within our typical target range throughout the period, holding cash dampened performance in a strong equity market.*

Stock selection and an underweight position in energy were among the largest contributors to relative performance when energy stocks tumbled on the falling price of oil. Stock selection and an underweight to industrials also helped relative performance, as industrials only posted mid-single digit returns.*

We used currency forward contracts during the period solely for the purpose of hedging the currency exposure of non-U.S.-based companies held in the portfolio. The use of currency forward contracts had a large positive impact on the Fund’s performance relative to its benchmark during the period.*

Past performance does not guarantee future results.

¹	The Russell 1000^® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek income and long-term growth of capital. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing primarily in income-producing equity securities, including common stocks and convertible securities.

Investment Concerns

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

The Fund is subject to the risk that principal value reacts in opposition to the movement of interest rates and that a rising interest rate environment increases the risk of loss of principal.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® Invesco Growth and Income Fund		10.00	%		18.91	%		13.12	%		7.17	%
Russell 1000^® Value Index		13.45	%		20.89	%		15.42	%		7.30	%


Expense Ratio	Gross
AZL^® Invesco Growth and Income Fund		1.05	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.675% on the first $100 million of assets and 0.65% on assets above $100 million. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Russell 1000^® Value Index, an unmanaged index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Invesco Growth and Income Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (96.7%):
	Aerospace & Defense (1.0%):
	30,488	General Dynamics Corp.	$	4,195,759

	Automobiles (1.1%):
	136,007	General Motors Co.		4,748,004

	Banks (16.5%):
	526,508	Bank of America Corp.		9,419,228
	92,320	BB&T Corp.^		3,590,325
	347,658	Citigroup, Inc.		18,811,774
	116,740	Citizens Financial Group, Inc.^		2,902,156
	90,439	Comerica, Inc.		4,236,163
	179,150	Fifth Third Bancorp		3,650,181
	62,308	First Horizon National Corp.^		846,143
	305,427	JPMorgan Chase & Co.		19,113,622
	80,913	PNC Financial Services Group, Inc.		7,381,693

				69,951,285

	Biotechnology (1.4%):
	35,845	Amgen, Inc.		5,709,750

	Capital Markets (7.4%):
	174,717	Charles Schwab Corp. (The)		5,274,706
	23,794	Goldman Sachs Group, Inc. (The)		4,611,991
	288,554	Morgan Stanley		11,195,895
	65,374	Northern Trust Corp.		4,406,208
	79,610	State Street Corp.		6,249,385

				31,738,185

	Chemicals (0.5%):
	44,186	Dow Chemical Co. (The)		2,015,323

	Commercial Services & Supplies (1.0%):
	98,468	Tyco International plc		4,318,806

	Communications Equipment (1.4%):
	206,257	Cisco Systems, Inc.		5,737,038

	Consumer Finance (0.5%):
	74,482	Synchrony Financial*		2,215,840

	Diversified Financial Services (2.0%):
	36,657	CME Group, Inc.		3,249,643
	123,069	Voya Financial, Inc.		5,215,664

				8,465,307

	Diversified Telecommunication Services (1.6%):
	63,880	France Telecom SA		1,086,232
	288,818	Koninklijke (Royal) KPN NV		910,472
	596,794	Telecom Italia SpA		632,837
	46,216	Telefonica SA		660,994
	72,138	Verizon Communications, Inc.		3,374,616

				6,665,151

	Electric Utilities (0.7%):
	70,488	FirstEnergy Corp.^		2,748,327

	Electronic Equipment, Instruments & Components (1.2%):
	227,414	Corning, Inc.		5,214,603


Shares			Fair Value
	Common Stocks, continued
	Energy Equipment & Services (1.7%):
	86,050	Baker Hughes, Inc.	$	4,824,824
	81,430	Ensco plc, Class A, ADR^		2,438,829

				7,263,653

	Food & Staples Retailing (0.3%):
	14,772	Wal-Mart Stores, Inc.		1,268,619

	Food Products (3.1%):
	92,565	Archer-Daniels-Midland Co.		4,813,380
	135,958	Mondelez International, Inc., Class A		4,938,674
	80,167	Unilever NV, NYS		3,129,720

				12,881,774

	Health Care Equipment & Supplies (0.9%):
	51,930	Medtronic, Inc.^		3,749,346

	Health Care Providers & Services (2.7%):
	34,682	Anthem, Inc.^		4,358,487
	19,711	Express Scripts Holding Co.*		1,668,930
	51,840	UnitedHealth Group, Inc.		5,240,506

				11,267,923

	Hotels, Restaurants & Leisure (1.7%):
	158,395	Carnival Corp.		7,180,045

	Household Products (1.2%):
	57,666	Procter & Gamble Co. (The)		5,252,796

	Industrial Conglomerates (2.9%):
	477,037	General Electric Co.		12,054,725

	Insurance (3.2%):
	44,602	Aon plc		4,229,608
	100,172	Marsh & McLennan Cos., Inc.		5,733,845
	78,685	Willis Group Holdings plc		3,525,875

				13,489,328

	Internet Software & Services (1.6%):
	116,797	eBay, Inc.*		6,554,648

	IT Services (1.2%):
	108,145	Amdocs, Ltd.		5,045,505

	Machinery (2.3%):
	52,304	Caterpillar, Inc.		4,787,385
	79,593	Ingersoll-Rand plc		5,045,401

				9,832,786

	Media (5.9%):
	120,295	Comcast Corp., Class A		6,978,313
	92,628	Thomson Reuters Corp.^		3,737,817
	31,504	Time Warner Cable, Inc.		4,790,498
	35,652	Time Warner Cable, Inc.		3,045,394
	85,857	Viacom, Inc., Class B		6,460,739

				25,012,761

	Metals & Mining (0.6%):
	105,367	Freeport-McMoRan Copper & Gold, Inc.		2,461,373

	Multiline Retail (1.8%):
	97,481	Target Corp.^		7,399,783


Shares			Fair Value
	Common Stocks, continued
	Multi-Utilities (0.8%):
	61,830	PG&E Corp.	$	3,291,829

	Oil, Gas & Consumable Fuels (8.7%):
	43,018	Anadarko Petroleum Corp.		3,548,985
	73,685	Apache Corp.^		4,617,839
	142,826	Canadian Natural Resources, Ltd.		4,416,969
	45,187	Exxon Mobil Corp.		4,177,538
	49,787	Occidental Petroleum Corp.		4,013,330
	321,438	Royal Dutch Shell plc, A Shares		10,653,230
	102,021	Total SA		5,259,500

				36,687,391

	Pharmaceuticals (7.7%):
	82,844	Eli Lilly & Co.		5,715,408
	33,162	Hospira, Inc.*		2,031,173
	109,631	Merck & Co., Inc.		6,225,944
	4,570	Novartis AG, ADR		423,456
	64,177	Novartis AG, Registered Shares		5,903,979
	99,769	Pfizer, Inc.		3,107,804
	41,129	Sanofi-Aventis SA		3,747,885
	99,051	Teva Pharmaceutical Industries, Ltd., ADR		5,696,423

				32,852,072

	Road & Rail (0.8%):
	88,784	CSX Corp.		3,216,644

	Semiconductors & Semiconductor Equipment (4.0%):
	290,129	Applied Materials, Inc.^		7,230,015
	97,348	Broadcom Corp., Class A		4,218,089
	154,200	Intel Corp.		5,595,918

				17,044,022


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Software (4.6%):
	62,098	Adobe Systems, Inc.*	$	4,514,525
	52,057	Citrix Systems, Inc.*		3,321,237
	116,267	Microsoft Corp.		5,400,602
	236,185	Symantec Corp.		6,059,326

				19,295,690

	Technology Hardware, Storage & Peripherals (0.8%):
	85,917	NetApp, Inc.		3,561,260

	Tobacco (1.0%):
	51,555	Philip Morris International, Inc.		4,199,155

	Wireless Telecommunication Services (0.9%):
	114,522	Vodafone Group plc, ADR		3,913,217

	Total Common Stocks (Cost $290,257,300)			408,499,723

	Securities Held as Collateral for Securities on Loan (9.0%):
$	38,060,158	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		38,060,158

	Total Securities Held as Collateral for Securities on Loan (Cost $38,060,158)			38,060,158

	Unaffiliated Investment Company (3.1%):
	12,965,089	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		12,965,089

	Total Unaffiliated Investment Company (Cost $12,965,089)			12,965,089

	Total Investment Securities (Cost $341,282,547)(c) — 108.8%			459,524,970
	Net other assets (liabilities) — (8.8)%			(37,218,292	)

	Net Assets — 100.0%		$	422,306,678

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

At December 31, 2014, the Fund’s open forward currency contracts were as follows:


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
British Pound	Bank of New York Mellon	1/9/15		3,288,850	$	5,169,776	$	5,124,991	$	44,785
British Pound	State Street	1/9/15		3,290,551		5,173,832		5,127,641		46,191
Canadian Dollar	Bank of New York Mellon	1/9/15		3,612,004		3,170,900		3,109,165		61,735
Canadian Dollar	State Street	1/9/15		3,622,129		3,179,789		3,117,881		61,908
European Euro	Bank of New York Mellon	1/9/15		4,961,247		6,190,446		6,003,191		187,255
European Euro	State Street	1/9/15		4,968,094		6,199,063		6,011,476		187,587
Israeli Shekel	Bank of New York Mellon	1/9/15		8,253,581		2,104,861		2,119,512		(14,651	)
Israeli Shekel	State Street	1/9/15		8,282,629		2,110,762		2,126,971		(16,209	)
Swiss Franc	Bank of New York Mellon	1/9/15		2,407,790		2,499,626		2,422,985		76,641
Swiss Franc	State Street	1/9/15		2,412,825		2,504,307		2,428,051		76,256

					$	38,303,362	$	37,591,864	$	711,498

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	341,282,547

Investment securities, at value*	$	459,524,970
Cash		19,898
Interest and dividends receivable		656,578
Foreign currency, at value (cost $210,982)		205,739
Unrealized appreciation on forward currency contracts		742,358
Receivable for investments sold		1,447,967
Reclaims receivable		38,253
Prepaid expenses		3,572

Total Assets		462,639,335

Liabilities:
Unrealized depreciation on forward currency contracts		30,860
Payable for investments purchased		1,686,909
Payable for capital shares redeemed		195,652
Payable for collateral received on loaned securities		38,060,158
Manager fees payable		236,271
Administration fees payable		10,592
Distribution fees payable		90,057
Custodian fees payable		5,887
Administrative and compliance services fees payable		933
Trustee fees payable		19
Other accrued liabilities		15,319

Total Liabilities		40,332,657

Net Assets	$	422,306,678

Net Assets Consist of:
Capital	$	252,711,437
Accumulated net investment income/(loss)		11,095,072
Accumulated net realized gains/(losses) from investment transactions		39,555,900
Net unrealized appreciation/(depreciation) on investments		118,944,269

Net Assets	$	422,306,678

Shares of beneficial interest (unlimited number of shares authorized, no par value)		25,815,033
Net Asset Value (offering and redemption price per share)	$	16.36

*	Includes securities on loan of $36,807,005

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	12,458,020
Income from securities lending		78,534
Foreign withholding tax		(209,011	)

Total Investment Income		12,327,543

Expenses:
Manager fees		3,198,821
Administration fees		121,704
Distribution fees		1,072,867
Custodian fees		30,871
Administrative and compliance services fees		5,743
Trustee fees		22,276
Professional fees		23,860
Shareholder reports		19,169
Other expenses		10,372

Total expenses before reductions		4,505,683
Less expenses voluntarily waived/reimbursed by the Manager		(384,361	)
Less expenses paid indirectly		(709	)

Net expenses		4,120,613

Net Investment Income/(Loss)		8,206,930

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		39,703,278
Net realized gains/(losses) on forward currency contracts		3,224,877
Change in net unrealized appreciation/depreciation on investments		(10,247,694	)

Net Realized/Unrealized Gains/(Losses) on Investments		32,680,461

Change in Net Assets Resulting From Operations	$	40,887,391

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Invesco Growth and Income Fund (the “Fund”), and 30 are presented in separate reports.

To generate additional income, the Fund may lend up to 33 ¹/₃% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $16.7 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $7,781 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund entered into forward currency contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or the seller, is the unrealized appreciation of the contract. The forward currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The contract amount of forward currency contracts outstanding was $38.3 million as of December 31, 2014. The monthly average amount for these contracts was $36.2 million for the year ended December 31, 2014.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Invesco Advisers, Inc. (“Invesco”), Invesco provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $5,347 was paid from the Fund relating to these fees and expenses.

non-interested Trustee receives a $163,000 annual Board retainer and the Lead Director receives an additional $24,450 annually. In addition, the Trustees are reimbursed for certain expenses associated with attending Board meetings. Compensation to the Trustees is allocated between the Trust and the Allianz Variable Insurance Products Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2014, actual Trustee compensation was $1,155,670 in total for both trusts.

Forward currency contracts are generally valued at the foreign currency exchange rate as of the close of the NYSE and are typically categorized as Level 2 in the fair value hierarchy.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $342,110,625. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Invesco Growth and Income Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $13,527,318.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Invesco International Equity Fund returned 0.25%, that compared to a -4.48% and -2.29% total return for its benchmarks, the MSCI EAFE Index¹ and the MSCI ACWI Ex-US Growth Index^2, respectively.

While 2014 began on an optimistic note, global equity markets pulled back at various points during the year in reaction to economic and geopolitical concerns. These issues included worries about the potential effect of the U.S. Federal Reserve reducing the scope of its asset purchase program, an Argentine sovereign bond default, and eurozone banking concerns. Global equity markets fell as tensions in Ukraine and the Middle East weakened the outlook for global growth. Advanced economies such as the U.K. and the U.S. saw a modest but stronger rebound than Europe, where a nascent recovery stalled. Meanwhile, the Bank of Japan remained committed to extraordinary monetary stimulus. Equity market performance in emerging markets was mixed. China continued to face headwinds and struggled to balance structural reforms with its growth objectives. However, many countries in Asia, including India, Indonesia and the Philippines, experienced strong gains.

In this environment, we continued to construct the portfolio with a bottom-up approach, selecting stocks on an individual basis. This stock selection helped the Fund outperform its benchmark during the period. An overweight position and stock selection in information technology were the leading contributors to relative performance. Stock selection in health care, financials, and materials also boosted relative performance.*

Geographically, exposure to Europe and the Asia/Pacific region were the primary drivers of relative returns, due to strong stock selection. Top country-level contributors were the U.K., Singapore, and Ireland. In each country, stock selection was the primary driver.*

Fund Objective

The Fund’s investment objective is to seek to provide long-term growth of capital. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets, plus any borrowings for investment purposes, in a diversified portfolio of equity securities of foreign issuers that are considered by the Fund’s subadviser to have strong earnings growth.

Investment Concerns

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

The value of convertible securities may be affected by interest rates, default by the issuer on principal or interest payments, and the value of underlying stock into which the securities may be converted.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® Invesco International Equity Fund		0.25	%		11.23	%		7.49	%		6.69	%
MSCI EAFE Index (gross of withholding taxes)		-4.48	%		11.56	%		5.81	%		4.91	%
MSCI EAFE Index (net of withholding taxes)		-4.90	%		11.06	%		5.33	%		4.43	%
MSCI ACWI Ex-US Growth Index (gross of withholding taxes)		-2.29	%		9.84	%		5.54	%		5.77	%
MSCI ACWI Ex-US Growth Index (net of withholding taxes)		-2.65	%		9.46	%		5.19	%		5.43	%


Expense Ratio¹	Gross
AZL^® Invesco International Equity Fund		1.26	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.85%. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 1.45% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index and the Morgan Stanley Capital International All Country World Index Ex-US Growth (“MSCI ACWI Ex-US Growth”) Index. The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI ACWI Ex-US Growth Index is unmanaged and captures large- and mid-cap securities exhibiting overall growth style characteristics across developed and emerging markets countries. The Indexes noted as “gross of withholding taxes” does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Indexes noted as “net of withholding taxes” reflects the reinvestment of dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Invesco International Equity Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (92.5%):
	Air Freight & Logistics (0.8%):
	137,537	Deutsche Post AG	$	4,499,490

	Auto Components (1.8%):
	82,400	DENSO Corp.		3,840,942
	28,639	Hyundai Mobis Co., Ltd.		6,096,251

				9,937,193

	Automobiles (3.7%):
	1,664,500	Great Wall Motor Co.		9,394,384
	171,800	Toyota Motor Corp.		10,715,335

				20,109,719

	Banks (7.2%):
	1,782,574	Akbank T.A.S.		6,576,783
	764,201	Banco Bradesco SA, ADR		10,217,367
	8,104,000	Industrial & Commercial Bank of China		5,887,694
	973,900	Kasikornbank Public Co., Ltd.		6,727,039
	516,352	United Overseas Bank, Ltd.		9,548,766

				38,957,649

	Beverages (3.4%):
	76,823	Anheuser-Busch InBev NV		8,644,152
	86,796	Carlsberg A/S, Class B		6,741,457
	38,112	Fomento Economico Mexicano SAB de C.V., ADR*		3,354,999

				18,740,608

	Biotechnology (0.8%):
	59,405	CSL, Ltd.		4,181,746

	Capital Markets (3.6%):
	899,853	Aberdeen Asset Management plc		6,009,495
	135,519	Julius Baer Group, Ltd.		6,186,282
	441,326	UBS Group AG*		7,588,552

				19,784,329

	Chemicals (1.3%):
	22,424	Syngenta AG, Registered Shares		7,202,530

	Commercial Services & Supplies (1.1%):
	704,180	Brambles, Ltd.		6,062,823

	Communications Equipment (1.1%):
	479,409	Telefonaktiebolaget LM Ericsson, B Shares		5,809,931

	Containers & Packaging (1.8%):
	921,907	Amcor, Ltd.		10,142,643

	Diversified Financial Services (4.4%):
	2,130,166	Bm&f Bovespa SA		7,896,333
	119,455	Deutsche Boerse AG		8,559,613
	220,266	Investor AB, B Shares		7,987,562

				24,443,508

	Electrical Equipment (2.3%):
	335,533	ABB, Ltd.		7,099,234
	77,451	Schneider Electric SA		5,627,066

				12,726,300

	Electronic Equipment, Instruments & Components (0.7%):
	9,085	Keyence Corp.		4,024,763


Shares			Fair Value
	Common Stocks, continued
	Food Products (1.9%):
	193,848	BRF-Brasil Foods SA	$	4,628,074
	150,648	Unilever NV		5,917,168

				10,545,242

	Health Care Equipment & Supplies (1.1%):
	331,103	Smith & Nephew plc		6,078,105

	Hotels Restaurants & Leisure (1.6%):
	523,347	Compass Group plc		8,919,002

	Hotels, Restaurants & Leisure (1.5%):
	1,456,000	Galaxy Entertainment Group, Ltd.		8,105,952

	Industrial Conglomerates (2.8%):
	877,000	Hutchison Whampoa, Ltd.		10,041,527
	804,841	Keppel Corp., Ltd.		5,371,854

				15,413,381

	Insurance (1.1%):
	11,625	Fairfax Financial Holdings, Ltd.		6,093,041

	Internet Software & Services (3.0%):
	47,180	Baidu, Inc., ADR*		10,755,625
	1,483,700	Yahoo! Japan Corp.^		5,354,684

				16,110,309

	IT Services (1.1%):
	148,350	Amadeus IT Holding SA		5,894,317

	Life Sciences Tools & Services (0.0%):
	160,422	Art Advanced Research Technologies, Inc.*(a)		—
	165,100	Art Advanced Research Technologies, Inc.*(a)		—
	50,591	Art Advanced Research Technologies, Inc.*(a)		—

				—

	Machinery (2.2%):
	33,400	Fanuc, Ltd.		5,513,211
	292,100	Komatsu, Ltd.		6,476,800

				11,990,011

	Media (12.1%):
	995,755	British Sky Broadcasting Group plc		13,857,434
	218,079	Grupo Televisa SA, ADR		7,427,771
	550,301	Informa plc		4,014,995
	157,642	ProSiebenSat.1 Media AG, Registered Shares		6,640,489
	143,400	Publicis Groupe		10,269,546
	700,993	Reed Elsevier plc		11,924,809
	580,606	WPP plc		12,043,882

				66,178,926

	Multiline Retail (0.9%):
	46,138	Next plc		4,865,847

	Multi-Utilities (0.7%):
	867,819	Centrica plc		3,734,598

	Oil, Gas & Consumable Fuels (5.2%):
	154,717	Cenovus Energy, Inc.		3,192,911
	1,624,000	CNOOC, Ltd.		2,197,083
	355,612	EnCana Corp.		4,950,707


Shares			Fair Value
	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	212,861	Royal Dutch Shell plc, B Shares	$	7,311,713
	350,790	Suncor Energy, Inc.		11,144,340

				28,796,754

	Pharmaceuticals (7.3%):
	70,872	Novartis AG, Registered Shares		6,519,887
	113,126	Novo Nordisk A/S, B Shares		4,787,437
	36,638	Roche Holding AG		9,933,377
	75,313	Shire plc		5,327,985
	223,805	Teva Pharmaceutical Industries, Ltd., ADR^		12,871,026

				39,439,712

	Road & Rail (1.0%):
	78,298	Canadian National Railway Co.		5,394,237

	Semiconductors & Semiconductor Equipment (5.7%):
	117,745	Avago Technologies, Ltd.		11,843,970
	7,154	Samsung Electronics Co., Ltd.		8,600,654
	457,306	Taiwan Semiconductor Manufacturing Co., Ltd., ADR^		10,234,508

				30,679,132

	Software (3.8%):
	245,206	CGI Group, Inc., Class A*		9,350,128
	161,350	SAP AG		11,406,979

				20,757,107


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Specialty Retail (1.4%):
	1,456,156	Kingfisher plc	$	7,672,432

	Textiles, Apparel & Luxury Goods (0.8%):
	64,861	Adidas AG^		4,520,159

	Tobacco (3.3%):
	213,929	British American Tobacco plc		11,622,159
	238,700	Japan Tobacco, Inc.		6,555,339

				18,177,498

	Total Common Stocks (Cost $386,685,949)			505,988,994

	Securities Held as Collateral for Securities on Loan (3.0%):
$	16,684,360	Allianz Variable Insurance Products Securities Lending Collateral Trust(b)		16,684,360

	Total Securities Held as Collateral for Securities on Loan (Cost $16,684,360)			16,684,360

	Unaffiliated Investment Company (6.9%):
	37,691,322	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(c)		37,691,322

	Total Unaffiliated Investment Company (Cost $37,691,322)			37,691,322

	Total Investment Securities (Cost $441,061,631)(d) — 102.4%			560,364,676
	Net other assets (liabilities) — (2.4)%			(12,930,690	)

	Net Assets — 100.0%		$	547,433,986

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	441,061,631

Investment securities, at value*	$	560,364,676
Cash		41,211
Interest and dividends receivable		575,326
Foreign currency, at value (cost $2,486,823)		2,397,987
Receivable for investments sold		1,483,993
Reclaims receivable		215,158
Prepaid expenses		4,650

Total Assets		565,083,001

Liabilities:
Payable for investments purchased		196,338
Payable for capital shares redeemed		160,406
Payable for collateral received on loaned securities		16,684,360
Manager fees payable		398,047
Administration fees payable		14,255
Distribution fees payable		117,073
Custodian fees payable		46,715
Administrative and compliance services fees payable		1,676
Trustee fees payable		34
Other accrued liabilities		30,111

Total Liabilities		17,649,015

Net Assets	$	547,433,986

Net Assets Consist of:
Capital	$	396,536,801
Accumulated net investment income/(loss)		5,345,753
Accumulated net realized gains/(losses) from investment transactions		26,350,657
Net unrealized appreciation/(depreciation) on investments		119,200,775

Net Assets	$	547,433,986

Shares of beneficial interest (unlimited number of shares authorized, no par value)		29,763,442
Net Asset Value (offering and redemption price per share)	$	18.39

*	Includes securities on loan of $16,287,606.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	15,558,170
Income from securities lending		229,965
Foreign withholding tax		(1,368,868	)

Total Investment Income		14,419,267

Expenses:
Manager fees		5,190,941
Administration fees		176,073
Distribution fees		1,441,927
Custodian fees		205,736
Administrative and compliance services fees		8,501
Trustee fees		33,148
Professional fees		37,097
Shareholder reports		27,780
Other expenses		20,754

Total expenses before reductions		7,141,957
Less expenses voluntarily waived/reimbursed by the Manager		(288,394	)
Less expenses paid indirectly		(13,800	)

Net expenses		6,839,763

Net Investment Income/(Loss)		7,579,504

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		45,532,166
Change in net unrealized appreciation/depreciation on investments		(50,756,874	)

Net Realized/Unrealized Gains/(Losses) on Investments		(5,224,708	)

Change in Net Assets Resulting From Operations	$	2,354,796

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Invesco International Equity Fund (the “Fund”), and 30 are presented in separate reports.

To generate additional income, the Fund may lend up to 33 ¹/₃% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $14.8 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $22,750 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a portfolio management agreement with Invesco Advisers, Inc. (“Invesco”), Invesco provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $7,191 was paid from the Fund relating to these fees and expenses.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $447,263,566. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $14,146,699 in capital loss carry forwards to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Invesco International Equity Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® JPMorgan International Opportunities Fund returned -7.39%. That compared to a -4.48% total return for its benchmark, the MSCI EAFE Index¹.

Volatility continued to vex global equity markets over the period, as investors juggled good and bad news. U.S. markets surged on the heels of continued economic recovery and improved corporate balance sheets. In Japan, the central bank expanded its bond buyback program and President Shinzo Abe again delayed an increase of the national sales tax. The European Central Bank also confirmed intentions to grow its balance sheets and possibly broaden its asset-purchase programs.

However, investors faced a series of uncertainties in 2014, including anxiety about global growth and the end of the U.S. Fed’s bond repurchase program, as well as fears of Ebola and another European debt crisis. In addition, currency movement whittled away at gains for U.S.-based investors as the recovery of the U.S. economy and the prospect of rising rates strengthened the dollar compared to most other currencies. Finally, emerging markets fared only slightly worse than their developed counterparts, with performance varied by country.

The Fund underperformed its benchmark for the year, largely due to stock selection. At the sector level, the performance of individual stocks in banks, autos, and energy lagged relative to the benchmark. Stock selection in Japan and the Pacific Rim, in addition to an underweight position in the latter, also detracted from relative performance. Specifically, a company that owns and operates casinos in Macau negatively affected the Fund’s relative performance, thanks to a cooling Chinese economy and a government campaign against corruption that has high rollers cutting back on gambling.*

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® JPMorgan International Opportunities Fund		-7.39	%		10.36	%		4.28	%		5.16	%
MSCI EAFE Index (gross of withholding taxes)		-4.48	%		11.56	%		5.81	%		4.91	%
MSCI EAFE Index (net of withholding taxes)		-4.90	%		11.06	%		5.33	%		4.43	%


Expense Ratio	Gross
AZL^® JPMorgan International Opportunities Fund		1.29	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.85%. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.39% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index, which is an unmanaged free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Index noted as “gross of withholding taxes” does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Index noted as “net of withholding taxes” does reflect the reinvestment of dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL JPMorgan International Opportunities Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

Common Stocks (97.3%):
Aerospace & Defense (1.6%):
	134,345	European Aeronautic Defence & Space Co. NV	$	6,671,751
	54,554	Thales SA		2,943,168

				9,614,919

	Air Freight & Logistics (1.3%):
	394,700	Yamato Holdings Co., Ltd.		7,773,105

	Airlines (1.2%):
	229,400	Japan Airlines Co., Ltd.		6,702,027

	Auto Components (2.3%):
	26,792	Continental AG		5,688,674
	60,406	Valeo SA		7,523,114

				13,211,788

	Automobiles (3.2%):
	105,211	Daimler AG, Registered Shares		8,776,778
	247,800	Mazda Motor Corp.		5,949,217
	54,746	Renault SA		4,000,122

				18,726,117

	Banks (11.7%):
	395,602	Australia & New Zealand Banking Group, Ltd.		10,288,191
	164,299	BNP Paribas SA		9,653,769
	345,012	Danske Bank A/S		9,287,600
	1,610,967	HSBC Holdings plc		15,222,541
	1,040,659	Intesa Sanpaolo SpA		3,010,104
	2,216,900	Mitsubishi UFJ Financial Group, Inc.		12,153,174
	220,972	Sumitomo Mitsui Financial Group, Inc.		7,985,605

				67,600,984

	Beverages (1.8%):
	165,190	SABMiller plc		8,547,910
	50,200	Suntory Beverage & Food, Ltd.		1,733,585

				10,281,495

	Building Products (1.9%):
	88,398	Compagnie de Saint-Gobain SA		3,721,051
	119,900	Daikin Industries, Ltd.^		7,734,519

				11,455,570

	Capital Markets (1.5%):
	502,814	UBS Group AG*		8,645,831

	Chemicals (2.2%):
	75,144	Air Liquide SA		9,270,813
	27,886	Solvay SA		3,766,717

				13,037,530

	Diversified Financial Services (2.3%):
	511,162	ING Groep NV*		6,617,542
	568,600	ORIX Corp.		7,109,194

				13,726,736

	Diversified Telecommunication Services (2.1%):
	1,942,560	Koninklijke (Royal) KPN NV		6,123,741
	111,500	Nippon Telegraph & Telephone Corp.		5,738,527

				11,862,268


Shares			Fair Value

Common Stocks, continued
	Electric Utilities (0.7%):
	231,676	E.ON AG	$	3,977,862

	Electrical Equipment (0.9%):
	70,962	Schneider Electric SA		5,155,619

Electronic Equipment, Instruments & Components (2.4%):
	947,000	Hitachi, Ltd.		6,930,601
	16,000	Keyence Corp.		7,088,190

				14,018,791

	Food & Staples Retailing (1.4%):
	168,800	Seven & I Holdings Co., Ltd.		6,089,754
	2,447,500	Sun Art Retail Group, Ltd.^		2,427,325

				8,517,079

	Food Products (3.4%):
	240,665	Nestle SA, Registered Shares		17,646,440
	111,000	Nippon Meat Packers, Inc.		2,428,326

				20,074,766

	Gas Utilities (1.0%):
	966,000	Enn Energy Holdings, Ltd.		5,463,429

	Health Care Equipment & Supplies (1.6%):
	497,521	Smith & Nephew plc		9,133,065

	Hotels, Restaurants & Leisure (2.2%):
	182,316	InterContinental Hotels Group plc		7,304,893
	1,054,800	Sands China, Ltd.		5,130,900

				12,435,793

	Household Durables (1.4%):
	270,616	Electrolux AB, Series B		7,945,467

	Insurance (5.1%):
	206,915	Assicurazioni Generali SpA		4,227,901
	311,217	AXA SA		7,187,182
	557,105	Prudential plc		12,818,610
	67,574	Swiss Re AG		5,655,847

				29,889,540

	Machinery (0.9%):
	398,600	DMG Mori Seiki Co., Ltd.		4,953,670

	Media (2.7%):
	222,800	Dentsu, Inc.		9,377,765
	91,151	Publicis Groupe		6,527,750

				15,905,515

	Metals & Mining (3.2%):
	248,290	First Quantum Minerals, Ltd.		3,529,288
	906,410	Norsk Hydro ASA		5,101,500
	210,338	Rio Tinto plc		9,689,617

				18,320,405

	Multi-Utilities (2.0%):
	302,281	GDF Suez		7,059,027
	239,995	Suez Environnement Co.		4,159,884

				11,218,911


Shares			Fair Value

Common Stocks, continued
	Oil, Gas & Consumable Fuels (5.6%):
	589,903	BG Group plc	$	7,851,075
	640,408	Oil Search, Ltd.		4,136,553
	522,640	Royal Dutch Shell plc, A Shares^		17,478,803
	207,608	Statoil ASA		3,640,704

				33,107,135

	Paper & Forest Products (1.0%):
	418,943	Stora Enso OYJ, R Shares^		3,728,614
	137,773	UPM-Kymmene OYJ		2,262,058

				5,990,672

	Pharmaceuticals (10.8%):
	149,051	AstraZeneca plc		10,483,799
	88,409	Bayer AG		12,084,910
	194,004	Novartis AG, Registered Shares		17,847,445
	66,028	Roche Holding AG		17,901,661
	74,488	Shire plc		5,269,620

				63,587,435

	Real Estate Management & Development (3.8%):
	2,438,000	China Overseas Land & Investment, Ltd.		7,195,819
	406,000	Daiwa House Industry Co., Ltd.		7,689,187
	282,000	Mitsui Fudosan Co., Ltd.		7,585,803

				22,470,809

	Semiconductors & Semiconductor Equipment (3.3%):
	301,304	ARM Holdings plc		4,638,989
	79,965	ASML Holding NV		8,566,169
	4,804	Samsung Electronics Co., Ltd.		5,775,446

				18,980,604

	Software (1.6%):
	133,676	SAP AG		9,450,507

	Specialty Retail (1.0%):
	1,062,644	Kingfisher plc		5,599,032


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
Common Stocks, continued
	Textiles, Apparel & Luxury Goods (1.6%):
	102,369	Compagnie Financiere Richemont SA, Registered Shares	$	9,070,310

	Tobacco (2.5%):
	199,458	British American Tobacco plc		10,835,991
	118,000	Japan Tobacco, Inc.		3,240,595

				14,076,586

	Trading Companies & Distributors (1.8%):
	179,540	Wolseley plc		10,219,665

	Wireless Telecommunication Services (2.3%):
	3,845,364	Vodafone Group plc		13,174,372

	Total Common Stocks (Cost $527,490,954)			565,375,409

	Preferred Stock (1.5%):
	Household Products (1.5%):
	78,005	Henkel AG & Co. KGaA, Preferred Shares^		8,437,156

	Total Preferred Stock (Cost $5,646,367)			8,437,156

	Securities Held as Collateral for Securities on Loan (4.7%):
$	27,438,799	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		27,438,799

	Total Securities Held as Collateral for Securities on Loan (Cost $27,438,799)			27,438,799

	Unaffiliated Investment Company (1.2%):
	7,026,454	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		7,026,454

	Total Unaffiliated Investment Company (Cost $7,026,454)			7,026,454

	Total Investment Securities (Cost $567,602,574)(c) — 104.7%			608,277,818
	Net other assets (liabilities) — (4.7)%			(27,544,445	)

	Net Assets — 100.0%		$	580,733,373

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

At December 31, 2014, the Fund’s open forward currency contracts were as follows:


Type of Contract	Counterparty	Delivery Date	Contract Amount (LocalCurrency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
Australian Dollar	Goldman Sachs	3/11/15		5,323,313	$	4,392,015	$	4,322,677	$	69,338
British Pound	State Street	3/11/15		5,869,282		9,147,136		9,141,473		5,663
Canadian Dollar	State Street	3/11/15		3,755,576		3,275,457		3,228,622		46,835
European Euro	State Street	3/11/15		6,702,685		8,217,894		8,114,500		103,394
European Euro	UBS Warburg	3/11/15		970,951		1,210,179		1,175,467		34,712
Hong Kong Dollar	BNP Paribas	3/11/15		43,931,617		5,666,760		5,665,745		1,015
Japanese Yen	BNP Paribas	3/11/15		335,276,466		2,830,828		2,801,346		29,482
Japanese Yen	State Street	3/11/15		213,957,815		1,799,533		1,787,689		11,844
Norwegian Krone	BNP Paribas	3/11/15		30,475,011		4,234,093		4,083,796		150,297
Swedish Krona	Australia and New Zealand Banking Group	3/11/15		9,975,074		1,310,668		1,280,807		29,861
Swiss Franc	State Street	3/11/15		21,211,404		21,640,536		21,370,402		270,134

					$	63,725,099	$	62,972,524	$	752,575

Long Contracts:
Australian Dollar	Barclays Bank	3/11/15		41,551,247	$	34,283,103	$	33,740,760	$	(542,343	)
Danish Krone	Barclays Bank	3/11/15		13,268,166		2,187,322		2,157,713		(29,609	)
European Euro	BNP Paribas	3/11/15		4,394,323		5,411,107		5,319,918		(91,189	)
Japanese Yen	Barclays Bank	3/11/15		391,094,395		3,233,067		3,267,724		34,657
Japanese Yen	Credit Suisse First Boston	3/11/15		348,013,469		2,879,481		2,907,768		28,287
Singapore Dollar	Goldman Sachs	3/11/15		12,439,280		9,400,552		9,383,533		(17,019	)
Swedish Krona	Barclays Bank	3/11/15		89,661,057		11,814,047		11,512,542		(301,505	)

					$	69,208,679	$	68,289,958	$	(918,721	)

At December 31, 2014, the Fund’s open forward cross currency contracts were as follows:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	567,602,574

Investment securities, at value*	$	608,277,818
Interest and dividends receivable		445,837
Unrealized appreciation on forward currency contracts		849,999
Reclaims receivable		566,524
Prepaid expenses		5,074

Total Assets		610,145,252

Liabilities:
Foreign currency, at value (cost $44,710)		44,456
Unrealized depreciation on forward currency contracts		981,665
Payable for capital shares redeemed		275,866
Payable for collateral received on loaned securities		27,438,799
Manager fees payable		427,484
Administration fees payable		23,646
Distribution fees payable		125,730
Custodian fees payable		52,110
Administrative and compliance services fees payable		2,136
Trustee fees payable		43
Other accrued liabilities		39,944

Total Liabilities		29,411,879

Net Assets	$	580,733,373

Net Assets Consist of:
Capital	$	520,524,415
Accumulated net investment income/(loss)		12,259,056
Accumulated net realized gains/(losses) from investment transactions		7,465,786
Net unrealized appreciation/(depreciation) on investments		40,484,116

Net Assets	$	580,733,373

Shares of beneficial interest (unlimited number of shares authorized, no par value)		33,975,166
Net Asset Value (offering and redemption price per share)	$	17.09

*	Includes securities on loan of $26,106,901.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	25,203,836
Income from securities lending		525,853
Foreign withholding tax		(2,239,352	)

Total Investment Income		23,490,337

Expenses:
Manager fees		6,020,060
Administration fees		196,514
Distribution fees		1,584,223
Custodian fees		226,442
Administrative and compliance services fees		10,451
Trustee fees		40,756
Professional fees		45,223
Shareholder reports		32,122
Other expenses		22,275

Total expenses before reductions		8,178,066
Less expenses voluntarily waived/reimbursed by the Manager		(633,684	)
Less expenses paid indirectly		(2,283	)

Net expenses		7,542,099

Net Investment Income/(Loss)		15,948,238

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		33,882,169
Net realized gains/(losses) on futures contracts		(726,607	)
Net realized gains/(losses) on forward currency contracts		(144,857	)
Change in net unrealized appreciation/depreciation on investments		(95,854,784	)

Net Realized/Unrealized Gains/(Losses) on Investments		(62,844,079	)

Change in Net Assets Resulting From Operations	$	(46,895,841	)

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL JPMorgan International Opportunities Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $52,045 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund entered into forward currency contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or the seller, is the unrealized appreciation of the contract. The forward currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The contract amount of forward currency contracts outstanding was $136.9 million as of December 31, 2014. The monthly average amount for these contracts was $193.7 million for the year ended December 31, 2014.

During the year ended December 31, 2014, the Fund used futures contracts to provide market exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The monthly average notional amount for these contracts was $3.4 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with J.P. Morgan Investment Management Inc. (“JPMIM”), JPMIM provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $7,931 was paid from the Fund relating to these fees and expenses.

Futures contracts are valued at the last sales price as of close of the primary exchange and are typically categorized as Level 1 in the fair value hierarchy.

Forward currency contracts are generally valued at the foreign currency exchange rate as of the close of the NYSE and are typically categorized as Level 2 in the fair value hierarchy.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $570,210,394. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $24,525,058 in capital loss carry forwards to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL JPMorgan International Opportunities Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® JPMorgan U.S. Equity Fund returned 14.18%. That compared to a 13.69% total return for its benchmark, the S&P 500 Index¹.

Volatile markets ended in positive territory in 2014, with the S&P 500 hitting 56 new highs over the period and finishing the year close to its record. Overall, large-cap stocks outperformed small caps and defensive sectors outperformed cyclical ones. The market did have three major pullbacks, but equities rebounded each time on the strength of economic and market fundamentals. The year began with concerns about the Federal Reserve’s (the Fed) ability to fight off inflation, though most of the Fed’s actions over the period were in line with expectations.

In March, the Fed chair implied that rate hikes may occur in the second quarter of 2015, which prompted many investors to move out of equities with high growth expectations and into stocks with more attractive valuations and higher dividend yields. As crude oil prices began to fall in the late summer, so too did energy stocks. The price of oil per barrel finished the year down 50% from its mid-June high. The year’s biggest equity sell-off began in September as the possibility of another recession in Europe rose to the forefront. Markets then surged in November on the strength of U.S. economic data as vehicle sales outpaced the prior year, and nonfarm payrolls exceeded economic forecasts.

The Fund outperformed its benchmark. Over the year, the semiconductor, software and services, and health services and systems sectors contributed to relative performance. An overweight position in a semiconductor company, which benefited from an acquisition and the continued strength of non-mobile businesses, contributed to the Fund’s performance. Shares of a media company also rallied on the news of a takeover bid from a rival corporation. Additionally an overweight position in an airline boosted relative returns.*

Fund Objective

The Fund’s investment objective is to seek to provide high total return from a portfolio of selected equity securities. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets, plus any borrowings for investment purposes, primarily in large- and medium-capitalization U.S. companies.

Investment Concerns

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® JPMorgan U.S. Equity Fund		14.18	%		22.34	%		15.13	%		7.60	%
S&P 500 Index		13.69	%		20.41	%		15.45	%		7.67	%


Expense Ratio	Gross
AZL^® JPMorgan U.S. Equity Fund		1.11	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager has voluntarily reduced the management fee to 0.75% on the first $100 million of assets and 0.70% on assets above $100 million. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

As a shareholder of the AZL JPMorgan U.S. Equity Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (98.7%):
	Aerospace & Defense (3.5%):
	120,070	Honeywell International, Inc.	$	11,997,395
	4,807	L-3 Communications Holdings, Inc.		606,691
	46,019	United Technologies Corp.		5,292,185

				17,896,271

	Airlines (1.6%):
	52,518	Delta Air Lines, Inc.		2,583,360
	80,407	United Continental Holdings, Inc.*		5,378,425

				7,961,785

	Auto Components (0.4%):
	44,434	Johnson Controls, Inc.		2,147,940

	Automobiles (2.1%):
	305,999	General Motors Co.		10,682,425

	Banks (6.8%):
	494,925	Bank of America Corp.		8,854,208
	5,401	BB&T Corp.^		210,045
	155,594	Citigroup, Inc.		8,419,191
	9,128	SVB Financial Group*		1,059,487
	290,552	Wells Fargo & Co.^		15,928,060

				34,470,991

	Beverages (1.4%):
	101,886	Coca-Cola Co. (The)		4,301,626
	28,303	Constellation Brands, Inc., Class A*		2,778,506

				7,080,132

	Biotechnology (3.5%):
	5,653	Alexion Pharmaceuticals, Inc.*		1,045,975
	19,967	Biogen Idec, Inc.*		6,777,798
	39,519	Celgene Corp.*		4,420,595
	30,085	Gilead Sciences, Inc.*		2,835,812
	25,145	Vertex Pharmaceuticals, Inc.*		2,987,226

				18,067,406

	Building Products (0.9%):
	63,789	Fortune Brands Home & Security, Inc.^		2,887,728
	75,780	Masco Corp.^		1,909,656

				4,797,384

	Capital Markets (5.4%):
	6,103	Affiliated Managers Group, Inc.*		1,295,301
	18,796	Ameriprise Financial, Inc.		2,485,771
	14,835	BlackRock, Inc., Class A		5,304,403
	85,682	Charles Schwab Corp. (The)		2,586,740
	17,554	Goldman Sachs Group, Inc. (The)		3,402,492
	92,943	Invesco, Ltd.		3,673,107
	200,189	Morgan Stanley^		7,767,332
	31,975	TD Ameritrade Holding Corp.^		1,144,066

				27,659,212

	Chemicals (1.9%):
	20,453	Axiall Corp.^		868,639
	44,290	Dow Chemical Co. (The)		2,020,067


Shares			Fair Value
	Common Stocks, continued
	Chemicals, continued
	30,841	E.I. du Pont de Nemours & Co.	$	2,280,384
	103,956	Mosaic Co. (The)		4,745,591

				9,914,681

	Communications Equipment (0.9%):
	62,907	QUALCOMM, Inc.		4,675,877

	Construction & Engineering (0.9%):
	74,696	Fluor Corp.^		4,528,818

	Construction Materials (0.1%):
	2,323	Martin Marietta Materials, Inc.^		256,273

	Consumer Finance (0.1%):
	29,239	Santander Consumer USA Holdings, Inc.^		573,377

	Containers & Packaging (0.2%):
	26,304	Sealed Air Corp.^		1,116,079

	Diversified Financial Services (0.2%):
	5,221	IntercontinentalExchange Group, Inc.		1,144,913

	Diversified Telecommunication Services (1.0%):
	112,092	Verizon Communications, Inc.		5,243,664

	Electric Utilities (0.7%):
	8,570	Edison International		561,164
	52,842	Exelon Corp.^		1,959,381
	22,523	PPL Corp.		818,261

				3,338,806

	Electrical Equipment (0.6%):
	20,003	Eaton Corp. plc^		1,359,404
	25,962	Emerson Electric Co.^		1,602,634

				2,962,038

	Energy Equipment & Services (2.9%):
	42,310	Baker Hughes, Inc.		2,372,322
	23,856	Halliburton Co.		938,256
	141,382	Schlumberger, Ltd.		12,075,437

				15,386,015

	Food & Staples Retailing (1.0%):
	6,103	Costco Wholesale Corp.		865,100
	43,192	CVS Caremark Corp.		4,159,822

				5,024,922

	Food Products (0.8%):
	28,033	General Mills, Inc.^		1,495,000
	64,439	Mondelez International, Inc., Class A		2,340,747

				3,835,747

	Health Care Equipment & Supplies (1.7%):
	40,509	Abbott Laboratories		1,823,715
	223,108	Boston Scientific Corp.*		2,956,181
	7,868	Covidien plc		804,739
	33,128	Stryker Corp.		3,124,964

				8,709,599

	Health Care Providers & Services (3.8%):
	7,814	CIGNA Corp.		804,139
	31,075	Humana, Inc.^		4,463,302


Shares			Fair Value
	Common Stocks, continued
	Health Care Providers & Services, continued
	19,805	McKesson, Inc.	$	4,111,122
	98,105	UnitedHealth Group, Inc.^		9,917,434

				19,295,997

	Hotels, Restaurants & Leisure (1.7%):
	18,490	Carnival Corp.		838,152
	10,658	Dunkin’ Brands Group, Inc.^		454,564
	36,237	Royal Caribbean Cruises, Ltd.^		2,987,016
	27,186	Starbucks Corp.		2,230,611
	23,315	Yum! Brands, Inc.		1,698,498

				8,208,841

	Household Durables (1.9%):
	67,714	D.R. Horton, Inc.		1,712,487
	48,053	Harman International Industries, Inc.^		5,127,736
	54,661	PulteGroup, Inc.^		1,173,025
	51,852	Toll Brothers, Inc.*^		1,776,968

				9,790,216

	Household Products (1.7%):
	21,767	Colgate-Palmolive Co.		1,506,059
	80,587	Procter & Gamble Co. (The)		7,340,670

				8,846,729

	Independent Power and Renewable Electricity Producers (0.5%):
	22,487	NextEra Energy, Inc.		2,390,143

	Industrial Conglomerates (0.2%):
	13,323	Danaher Corp.		1,141,914

	Insurance (4.5%):
	99,293	ACE, Ltd.		11,406,780
	36,386	American International Group, Inc.		2,037,980
	114,273	Marsh & McLennan Cos., Inc.^		6,540,986
	51,384	MetLife, Inc.		2,779,361
	9,362	Willis Group Holdings plc^		419,511

				23,184,618

	Internet & Catalog Retail (0.7%):
	3,169	Priceline.com, Inc.*		3,613,325

	Internet Software & Services (3.9%):
	87,464	Facebook, Inc., Class A*		6,823,941
	11,218	Google, Inc., Class C*		5,905,155
	13,217	Google, Inc., Class A*		7,013,734

				19,742,830

	IT Services (3.7%):
	82,675	Accenture plc, Class A^		7,383,704
	6,986	Alliance Data Systems Corp.*		1,998,345
	33,218	Cognizant Technology Solutions Corp., Class A*^		1,749,260
	40,960	Fidelity National Information Services, Inc.		2,547,712
	22,631	Visa, Inc., Class A		5,933,848

				19,612,869

	Machinery (1.6%):
	22,001	Ingersoll-Rand plc		1,394,643
	84,638	PACCAR, Inc.^		5,756,230


Shares			Fair Value
	Common Stocks, continued
	Machinery, continued
	1,500	Pall Corp.^	$	151,815
	7,067	SPX Corp.		607,197

				7,909,885

	Media (5.2%):
	41,410	CBS Corp., Class B		2,291,629
	18,058	Charter Communications, Inc., Class A*		3,008,824
	49,007	Comcast Corp., Class A		2,842,896
	31,201	DISH Network Corp., Class A*		2,274,241
	111,709	Time Warner Cable, Inc.		9,542,183
	19,625	Twenty-First Century Fox, Inc., Class B		723,966
	158,540	Twenty-First Century Fox, Inc.^		6,088,729

				26,772,468

	Metals & Mining (1.3%):
	280,487	Alcoa, Inc.		4,428,890
	79,200	United States Steel Corp.^		2,117,808

				6,546,698

	Multiline Retail (0.2%):
	12,333	Dollar Tree, Inc.*		867,997

	Multi-Utilities (0.3%):
	19,282	CenterPoint Energy, Inc.		451,777
	15,646	Dominion Resources, Inc.^		1,203,178

				1,654,955

	Oil, Gas & Consumable Fuels (4.7%):
	15,196	Anadarko Petroleum Corp.		1,253,670
	64,298	California Resources Corp.*^		354,282
	11,829	Chevron Corp.		1,326,977
	2,581	Concho Resources, Inc.*		257,455
	11,642	EQT Corp.		881,299
	31,669	Exxon Mobil Corp.		2,927,799
	15,952	Marathon Oil Corp.		451,282
	10,929	Marathon Petroleum Corp.		986,452
	167,210	Occidental Petroleum Corp.		13,478,798
	22,307	Phillips 66		1,599,412
	1,100	Pioneer Natural Resources Co.		163,735
	14,475	Southwestern Energy Co.*		395,023

				24,076,184

	Pharmaceuticals (6.2%):
	6,247	Actavis, Inc. plc*		1,608,040
	3,709	Allergan, Inc.		788,496
	77,418	Bristol-Myers Squibb Co.		4,569,985
	164,846	Johnson & Johnson Co.		17,237,945
	114,471	Merck & Co., Inc.		6,500,808
	5,293	Perrigo Co. plc		884,778

				31,590,052

	Real Estate Investment Trusts (REITs) (0.4%):
	3,925	Boston Properties, Inc.		505,108
	23,982	ProLogis, Inc.		1,031,946
	4,555	Vornado Realty Trust		536,169

				2,073,223


Shares			Fair Value
	Common Stocks, continued
	Road & Rail (0.9%):
	80,767	CSX Corp.	$	2,926,189
	14,655	Union Pacific Corp.		1,745,850

				4,672,039

	Semiconductors & Semiconductor Equipment (4.5%):
	6,662	Applied Materials, Inc.^		166,017
	89,481	Avago Technologies, Ltd.		9,000,894
	46,793	Broadcom Corp., Class A		2,027,541
	17,068	Freescale Semiconductor Holdings I, Ltd.*^		430,626
	82,272	KLA-Tencor Corp.^		5,785,367
	67,829	Lam Research Corp.^		5,381,553

				22,791,998

	Software (4.4%):
	61,070	Adobe Systems, Inc.*		4,439,789
	12,045	Citrix Systems, Inc.*		768,471
	231,660	Microsoft Corp.		10,760,607
	147,832	Oracle Corp.		6,648,005

				22,616,872

	Specialty Retail (2.7%):
	16,168	Home Depot, Inc. (The)		1,697,155
	116,613	Lowe’s Cos., Inc.		8,022,974
	59,774	TJX Cos., Inc. (The)		4,099,301

				13,819,430

	Technology Hardware, Storage & Peripherals (3.7%):
	162,830	Apple, Inc.		17,973,176
	26,718	Hewlett-Packard Co.		1,072,193

				19,045,369

	Textiles, Apparel & Luxury Goods (0.7%):
	26,160	Lululemon Athletica, Inc.*^		1,459,466
	8,624	PVH Corp.		1,105,338
	5,815	Ralph Lauren Corp.^		1,076,705

				3,641,509

	Tobacco (0.7%):
	42,688	Philip Morris International, Inc.		3,476,938

	Total Common Stocks (Cost $393,734,002)			504,857,454


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (11.1%):
$	56,533,568	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)	$	56,533,568

	Total Securities Held as Collateral for Securities on Loan (Cost $56,533,568)			56,533,568

	Unaffiliated Investment Company (0.3%):
	1,429,661	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		1,429,661

	Total Unaffiliated Investment Company (Cost $1,429,661)			1,429,661

	Total Investment Securities (Cost $451,697,231)(c) — 110.1%			562,820,683
	Net other assets (liabilities) — (10.1)%			(51,500,011	)

	Net Assets — 100.0%		$	511,320,672

Cash of $110,000 has been segregated to cover margin requirements for the following open contracts as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	451,697,231

Investment securities, at value*	$	562,820,683
Cash		36,290
Segregated cash for collateral		110,000
Interest and dividends receivable		628,982
Receivable for investments sold		5,454,894
Prepaid expenses		4,338

Total Assets		569,055,187

Liabilities:
Payable for investments purchased		256,676
Payable for capital shares redeemed		458,010
Payable for collateral received on loaned securities		56,533,568
Payable for variation margin on futures contracts		25,515
Manager fees payable		309,250
Administration fees payable		11,698
Distribution fees payable		108,929
Custodian fees payable		9,456
Administrative and compliance services fees payable		1,327
Trustee fees payable		27
Other accrued liabilities		20,059

Total Liabilities		57,734,515

Net Assets	$	511,320,672

Net Assets Consist of:
Capital	$	415,976,834
Accumulated net investment income/(loss)		5,024,825
Accumulated net realized gains/(losses) from investment transactions		(20,769,167	)
Net unrealized appreciation/(depreciation) on investments		111,088,180

Net Assets	$	511,320,672

Shares of beneficial interest (unlimited number of shares authorized, no par value)		31,029,717
Net Asset Value (offering and redemption price per share)	$	16.48

*	Includes securities on loan of $54,715,781.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	10,204,380
Income from securities lending		27,092
Foreign withholding tax		(2,142	)

Total Investment Income		10,229,330

Expenses:
Manager fees		4,029,373
Administration fees		134,536
Distribution fees		1,259,177
Custodian fees		42,367
Administrative and compliance services fees		6,303
Trustee fees		24,386
Professional fees		26,441
Shareholder reports		21,489
Other expenses		12,162

Total expenses before reductions		5,556,234
Less expenses voluntarily waived/reimbursed by the Manager		(453,669	)
Less expenses paid indirectly		(20,559	)

Net expenses		5,082,006

Net Investment Income/(Loss)		5,147,324

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		82,409,034
Net realized gains/(losses) on futures contracts		229,549
Change in net unrealized appreciation/depreciation on investments		(20,760,338	)

Net Realized/Unrealized Gains/(Losses) on Investments		61,878,245

Change in Net Assets Resulting From Operations	$	67,025,569

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL JPMorgan U.S. Equity Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $2,692 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide equity exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $2.2 million as of December 31, 2014. The monthly average notional amount for these contracts was $0.8 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with J.P. Morgan Investment Management Inc. (“JPMIM”), JPMIM provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $6,265 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $455,424,392. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $82,147,971 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL JPMorgan U.S. Equity Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

As a shareholder of the AZL MetWest Total Return Bond Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Principal Amount			Fair Value
	Asset Backed Securities (6.6%):
$	955,000	Flagship CLO, Class A1, Series 2013-7A, 1.70%, 1/20/26(a)(b)	$	947,615
	2,114,454	Goal Capital Funding Trust, Class A3, Series 2005-2, 0.40%, 5/28/30(a)		2,084,304
	1,000,000	Limerock CLO, Class A1, Series 2014-3A, 1.76%, 10/20/26(a)(b)		994,055
	1,000,000	Magnetite CLO, Ltd., Class A1, Series 2014-9A, 1.70%, 7/25/26(a)(b)		992,464
	1,000,000	Magnetite CLO, Ltd., Class A1, Series 2014-11A, 1.68%, 1/18/27(a)(b)(c)		994,303
	952,003	Navient Student Loan Trust, Class A, Series 2014-2, 0.80%, 3/25/43(a)		943,465
	913,067	Navient Student Loan Trust, Class A, Series 2014-3, 0.78%, 3/25/43(a)		903,962
	619,092	Navient Student Loan Trust, Class A, Series 2014-4, 0.78%, 3/25/43(a)		612,730
	2,080,000	Navient Student Loan Trust, Class A3, Series 2014-8, 0.75%, 5/27/31(a)		2,079,967
	1,872,000	SLC Student Loan Trust, Class A4A, Series 2008-1, 1.84%, 12/15/32(a)		1,948,754
	1,101,376	SLM Student Loan Trust, Class B, Series 2003-7, 0.81%, 9/15/39(a)		1,023,602
	1,928,730	SLM Student Loan Trust, Class A5, Series 2003-11, 0.29%, 12/15/22(a)(b)		1,919,459
	2,082,950	SLM Student Loan Trust, Class A5B, Series 2004-10, 0.63%, 4/25/23(a)(b)		2,083,881
	1,512,467	SLM Student Loan Trust, Class A, Series 2008-9, 1.73%, 4/25/23(a)		1,553,389
	2,009,236	SLM Student Loan Trust, Class A, Series 2012-2, 0.87%, 1/25/29(a)		2,016,505
	1,242,384	SLM Student Loan Trust, Class A, Series 2012-3, 0.82%, 12/26/25(a)		1,244,526
	2,027,015	SLM Student Loan Trust, Class A, Series 2013-4, 0.71%, 6/25/27(a)		2,032,158
	2,100,000	SLM Student Loan Trust, Class A2, Series 2014-2, 0.52%, 10/25/21(a)		2,091,782
	830,000	SLM Student Loan Trust, Class A5, Series 2006-5, 0.34%, 1/25/27(a)		817,920

	Total Asset Backed Securities (Cost $27,283,079)			27,284,841

	Collateralized Mortgage Obligations (19.3%):
	1,150,000	Ameriquest Mortgage Securities, Inc., Class M2, Series 2005-R5, 0.63%, 7/25/35(a)		1,096,137
	2,095,000	Ameriquest Mortgage Securities, Inc., Class M2, Series 2005-R5, 0.65%, 4/25/35(a)		2,075,429
	1,782,428	Bank of America Mortgage Securities, Inc., Class 2A3, Serie 2005-F, 2.64%, 7/25/35(a)		1,713,350
	989,573	BCAP LLC Trust, Class 5A3, Series 2011-RR10, 0.32%, 1/26/47(a)(b)		987,522
	1,031,101	CD Commercial Mortgage Trust, Class A1A, Series 2007-CD4, 5.29%, 12/11/49(a)		1,085,692
	2,321,517	Centex Home Equity, Class M1, Series 2005-D, 0.60%, 10/25/35(a)		2,315,962
	201,641	Citigroup Commercial Mortgage Trust, Class A4, Series 2005-C3, 4.86%, 5/15/43		201,424
	2,200,000	Citigroup Mortgage Loan Trust, Inc., Class A4, Series 2006-WFH3, 0.41%, 10/25/36(a)		2,118,358


Principal Amount			Fair Value
	Collateralized Mortgage Obligations, continued
$	2,295,434	Citigroup Mortgage Loan Trust, Inc., Class 1A1A, Series 2007-AR5, 2.67%, 4/25/37(a)	$	2,075,660
	1,167,411	Credit Suisse Mortgage Capital Certificates, Class A2E, Series 2007-CB2, 5.68%, 2/25/37(a)		874,079
	1,718,151	Credit Suisse Mortgage Capital Certificates, Class AAB, Series 2007-C1, 5.34%, 2/15/40		1,772,448
	1,684,329	Federal Home Loan Mortgage Corporation, Class A, Series KF01, 0.52%, 4/25/19(a)		1,685,129
	998,309	Federal Home Loan Mortgage Corporation, Class A, Series KF04, 0.47%, 6/25/21(a)		996,870
	2,099,769	Federal Home Loan Mortgage Corporation, Class A, Series KF05, 0.51%, 9/25/21(a)		2,099,769
	2,025,000	Federal Home Loan Mortgage Corporation, Class A2, Series K041, 3.17%, 10/25/24		2,100,986
	1,590,769	Federal National Mortgage Association, Class FA, Series 2013-M14, 0.52%, 8/25/18(a)		1,592,707
	1,974,112	First Franklin Mortgage Loan Trust, Class M1, Series 2005-FFH3, 0.68%, 9/25/35(a)		1,964,188
	2,195,000	First Franklin Mortgage Loan Trust, Class M1, Series 2005-FF8, 0.66%, 9/25/35(a)		2,086,398
	2,331,037	First Horizon Alternative Mortgage Securities Trust, Class 2A1, Series 05-AA12, 2.25%, 2/25/36(a)		1,856,997
	1,808,014	First Horizon Alternative Mortgage Securities Trust, Class 2A1, Series 2005-AR3, 2.67%, 8/25/35(a)		1,668,141
	2,345,298	First Horizon Alternative Mortgage Securities Trust, Class 1A1, Series 2006-AA1, 2.25%, 3/25/36(a)		1,951,621
	2,092,429	First Horizon Alternative Mortgage Securities Trust, Class 2A1, Series 2006-AA1, 2.23%, 4/25/36(a)		1,747,297
	1,988,899	GE Commercial Mortgage Corp. Trust, Class A3A, Series 2005-C4, 5.49%, 11/10/45(a)		1,990,858
	1,383,692	GMAC Commercial Mortgage Securities, Inc., Class A5, Series 2005-C1, 4.70%, 5/10/43		1,390,772
	2,242,745	GMAC Mortgage Corp. Loan Trust, Class 1A1, Series 2006-AR1, 2.96%, 4/19/36(a)		1,977,565
	2,041,621	GMAC Mortgage Corp. Loan Trust, Class 3A1, Series 2005-AR5, 2.88%, 9/19/35(a)		1,958,471
	1,058,851	GS Mortgage Securities Trust, Class A4A, Series 2005-GG4, 4.75%, 7/10/39		1,059,872
	675,000	JPMorgan Chase Commercial Mortgage Securities Corp., Class A4, Series 2005-CB13, 5.42%, 1/12/43(a)		689,885
	944,097	JPMorgan Chase Commercial Mortgage Securities Corp., Class A4, Series 2005-LDP5, 5.40%, 11/15/15(a)		959,905
	2,175,000	JPMorgan Chase Commercial Mortgage Securities Corp., Class A4, Series 2006-LDP7, 6.06%, 4/15/45(a)		2,271,070
	1,253,208	JPMorgan Chase Commercial Mortgage Securities Corp., Class A1, Series 2010-C1, 3.85%, 6/15/43(b)		1,259,451
	2,111,817	LB-UBS Commercial Mortgage Trust, Class A2, Series 2006-C7, 5.30%, 11/15/38		2,140,206


Principal Amount			Fair Value
	Collateralized Mortgage Obligations, continued
$	724,847	LB-UBS Commercial Mortgage Trust, Class A5, Series 2005-C2, 5.15%, 4/15/30(a)	$	725,950
	1,315,904	Merrill Lynch First Franklin Mortgage Loan Trust, Class 2A2, Series 2007-4, 0.29%, 7/25/37(a)		823,318
	2,239,383	Merrill Lynch Mortgage Trust, Class A1A, Series 2007-C1, 6.03%, 6/12/50(a)		2,385,437
	2,016,682	Morgan Stanley Mortgage Loan Trust, Class 1A2, Series 2005-6AR, 0.44%, 11/25/35(a)		2,002,644
	2,061,791	Morgan Stanley Remic Trust, Class 3A, Series 2014-R8, 0.87%, 6/26/47(a)(b)		1,974,369
	2,068,014	MortgageIT Trust, Class 2A, Series 2005-2, 1.80%, 5/25/35(a)		2,034,946
	2,130,000	Newcastle Mortgage Securities Trust, Class A4, Series 2006-1, 0.45%, 3/25/36(a)		2,072,654
	1,837,480	Nomura Asset Acceptance Corp., Class 3A1, Series 2005-AR3, 2.96%, 7/25/35(a)		1,750,596
	2,600,265	Residential Accredit Loans, Inc., Class A2, Series 2006-QA10, 0.35%, 12/25/36(a)		1,990,204
	1,216,030	Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2005-C22, 5.27%, 12/15/44(a)		1,241,991
	1,756,987	WaMu Mortgage Pass-Through Certificates, Class 2A1A, Series 2005-AR6, 0.40%, 4/25/45(a)		1,633,612
	2,011,598	WaMu Mortgage Pass-Through Certificates, Class 2A1A, Series 2005-AR8, 0.46%, 7/25/45(a)		1,853,285
	2,185,996	WaMu Mortgage Pass-Through Certificates, Class 4A1, Series 2007-HY1, 2.36%, 2/25/37(a)		1,915,181
	2,069,285	WaMu Mortgage Pass-Through Certificates, Class A2, Series 2005-AR3, 2.40%, 3/25/35(a)		2,060,874
	2,008,062	Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2006-AR2, 2.62%, 3/25/36(a)		1,999,748
	2,067,715	Wells Fargo Mortgage Backed Securities Trust, Class 1A1, Series 2006-AR12, 2.51%, 9/25/36(a)		1,920,912

	Total Collateralized Mortgage Obligations (Cost $80,536,595)			80,149,940

	Corporate Bonds (14.7%):
	Airlines (0.9%):
	1,626,768	Continental Airlines 2009-2, Series A, 7.25%, 11/10/19		1,878,917
	592,304	U.S. Airways 2001-1G PTT, Class G, Series 2001, 7.08%, 9/20/22		650,054
	1,083,662	U.S. Airways 2010-1A PTT, Series A, 6.25%, 10/22/24		1,216,411

				3,745,382

	Automobiles (0.1%):
	400,000	General Motors Co., 5.20%, 4/1/45		422,000

	Banks (1.7%):
	2,500,000	Bank of America NA, 5.30%, 3/15/17		2,685,413
	350,000	Bank of America NA, Series BKNT, 6.10%, 6/15/17		384,654
	1,000,000	JPMorgan Chase & Co., 1.10%, 10/15/15		1,001,798
	1,000,000	U.S. Bank NA, 3.78%, 4/29/20, Callable 4/29/15 @ 100(a)		1,008,976
	550,000	Wells Fargo & Co., 3.30%, 9/9/24, MTN		553,441
	1,400,000	Wells Fargo & Co., 4.10%, 6/3/26, MTN		1,430,880

				7,065,162


Principal Amount			Fair Value
	Corporate Bonds, continued
	Capital Markets (1.6%):
$	2,000,000	Bear Stearns Co., Inc., 7.25%, 2/1/18	$	2,305,099
	750,000	Goldman Sachs Group, Inc., 1.60%, 11/23/15, MTN		753,928
	1,500,000	Goldman Sachs Group, Inc., 5.95%, 1/18/18		1,666,452
	1,750,000	Morgan Stanley, 0.97%, 1/5/18(a)		1,750,445

				6,475,924

	Consumer Finance (0.7%):
	1,250,000	Capital One Financial Corp., 1.00%, 11/6/15		1,248,810
	1,660,000	Ford Motor Credit Co. LLC, 8.00%, 12/15/16		1,857,792

				3,106,602

	Diversified Financial Services (1.2%):
	575,000	Berkshire Hathaway, Inc., 4.50%, 2/11/43		628,826
	2,000,000	Citigroup, Inc., 0.93%, 11/24/17(a)		2,000,498
	700,000	Citigroup, Inc., 5.50%, 9/13/25		774,554
	1,000,000	General Electric Capital Corp., Series G, 6.88%, 1/10/39, MTN		1,414,507

				4,818,385

	Diversified Telecommunication Services (0.4%):
	1,500,000	Verizon Communications, Inc., 4.86%, 8/21/46(b)		1,540,841

	Electric Utilities (2.3%):
	780,000	American Transmission Systems, Inc., 5.00%, 9/1/44, Callable 3/1/44 @ 100(b)		834,417
	1,000,000	CenterPoint Energy Houston Electric LLC, 4.50%, 4/1/44, Callable 10/1/43 @ 100		1,116,134
	800,000	Cleco Power LLC, 6.00%, 12/1/40		958,124
	1,000,000	Duke Energy Progress, Inc., 4.15%, 12/1/44, Callable 6/1/44 @ 100		1,062,999
	936,000	Duquesne Light Holdings, Inc., 6.40%, 9/15/20(b)		1,093,067
	750,000	El Paso Electric Co., 5.00%, 12/1/44, Callable 6/1/44 @ 100		780,288
	400,000	IPALCO Enterprises, Inc., 7.25%, 4/1/16(b)		422,000
	1,000,000	IPALCO Enterprises, Inc., 5.00%, 5/1/18, Callable 4/1/18 @ 100		1,055,000
	750,000	Jersey Central Power & Light Co., 6.40%, 5/15/36		893,927
	1,500,000	Oncor Electric Delivery Co. LLC, 4.10%, 6/1/22, Callable 3/1/22 @ 100		1,610,952

				9,826,908

	Health Care Equipment & Supplies (0.2%):
	625,000	Medtronic, Inc., 2.50%, 3/15/20(b)		626,639

	Health Care Providers & Services (0.6%):
	1,000,000	Catholic Health Initiatives, 4.35%, 11/1/42		992,812
	800,000	CHS/Community Health Systems, Inc., 5.13%, 8/15/18, Callable 8/15/15 @ 102.6		828,000
	750,000	HCA, Inc., 6.50%, 2/15/20		840,375

				2,661,187

	Household Products (0.2%):
	800,000	Reynolds Group Issuer LLC / Reynolds Group Issuer, Inc., 5.75%, 10/15/20, Callable 10/15/15 @ 104.31		820,000

	Insurance (0.7%):
	1,900,000	Farmers Exchange Capital III, 5.45%, 10/15/54, Callable 10/15/34 @ 100(a)(b)		1,957,000


Shares or Principal Amount			Fair Value
	Corporate Bonds, continued
	Insurance, continued
$	900,000	Nationwide Financial Services, Inc., 5.30%, 11/18/44(b)	$	949,459

				2,906,459

	Media (0.2%):
	775,000	CCO Holdings LLC / CCO Holdings Capital Corp., 6.50%, 4/30/21, Callable 4/30/15 @ 104.88		813,750

	Multi-Utilities (0.2%):
	625,000	Berkshire Hathaway Energy Co., 4.50%, 2/1/45, Callable 8/1/44 @ 100(b)		653,968

	Oil, Gas & Consumable Fuels (1.7%):
	350,000	Anadarko Petroleum Corp., 4.50%, 7/15/44, Callable 1/15/44 @ 100		339,666
	1,100,000	Boardwalk Pipeline Partners LP, 4.95%, 12/15/24, Callable 9/15/24 @ 100		1,093,607
	775,000	Chesapeake Energy Corp., 6.63%, 8/15/20		823,438
	1,400,000	Energy Transfer Partners LP, 5.95%, 10/1/43, Callable 4/1/43 @ 100		1,535,517
	850,000	KeySpan Gas East Corp., 5.82%, 4/1/41(b)		1,092,266
	400,000	MarkWest Energy Partners LP, 4.88%, 12/1/24, Callable 9/1/24 @ 100		391,000
	780,000	Rockies Express Pipeline LLC, 6.85%, 7/15/18(b)		803,400
	250,000	Rockies Express Pipeline LLC, 6.00%, 1/15/19(b)		250,625
	775,000	Sabine Pass Liquefcation LLC, 6.25%, 3/15/22		786,625

				7,116,144

	Real Estate Investment Trusts (REITs) (1.8%):
	875,000	HCP, Inc., 5.38%, 2/1/21, Callable 11/3/20 @ 100		977,118
	1,600,000	Health Care REIT, Inc., 5.25%, 1/15/22, Callable 10/15/21 @ 100		1,777,891
	1,150,000	SL Green Realty Corp., 5.00%, 8/15/18, Callable 6/15/18 @ 100		1,233,464
	2,000,000	Ventas Realty LP / Capital Corp., 3.13%, 11/30/15		2,040,409
	1,500,000	WEA Finance LLC, 2.70%, 9/17/19, Callable 8/17/19 @ 100(b)		1,499,564

				7,528,446

	Wireless Telecommunication Services (0.2%):
	725,000	Sprint Communications, Inc., 9.00%, 11/15/18(b)		824,615

	Total Corporate Bonds (Cost $60,444,066)			60,952,412

	Preferred Stock(0.2%):
	Diversified Financial Services (0.2%):
	800,000	ZFS Finance USA Trust II, 6.45%, 12/15/65, Callable 6/15/16 @ 100(a)(b)		842,936

	Total Preferred Stock (Cost $843,199)			842,936

	Yankee Dollars (1.6%):
	Aerospace & Defense (0.3%):
$	1,300,000	Heathrow Funding, Ltd., 2.50%, 6/25/15(b)		1,300,780

	Banks (1.3%):
	2,000,000	Credit Suisse, NY, 0.65%, 12/7/15(a)		2,001,052
	1,100,000	HBOS plc, Series G, 6.75%, 5/21/18, MTN(b)		1,225,946
	800,000	Royal Bank of Scotland plc, 4.88%, 3/16/15		806,155
	1,250,000	Royal Bank Scotland Group plc, 2.55%, 9/18/15		1,262,515

				5,295,668

	Total Yankee Dollars (Cost $6,607,390)			6,596,448


Shares or Principal Amount			Fair Value
	Municipal Bond (0.3%):
	New York (0.3%):
$	1,125,000	New York NY, Build America Bonds, GO, 5.05%, 10/1/24	$	1,278,799

	Total Municipal Bond (Cost $1,273,528)			1,278,799

	U.S. Government Agency Mortgages (33.6%):
	Federal Home Loan Bank (8.8%)
	16,400,000	0.09%, 2/6/15(d)		16,399,606
	10,000,000	0.09%, 2/20/15(d)		9,999,660
	10,500,000	0.09%, 3/6/15(d)		10,499,444

				36,898,710

	Federal Home Loan Mortgage Corporation (1.0%)
	4,015,252	3.50%, 4/1/44, Pool#G07848		4,195,904
	Federal National Mortgage Association (21.2%)
	859,597	5.34%, 6/1/18, Pool#AD0149		947,154
	1,078,110	4.77%, 2/1/20, Pool#AD0791		1,199,342
	1,142,619	4.12%, 4/1/20, Pool#464959		1,250,498
	1,458,726	4.60%, 4/1/20, Pool#AD0910		1,612,465
	1,005,587	3.43%, 10/1/20, Pool#466386		1,068,962
	1,986,469	3.42%, 10/1/20		2,104,329
	1,886,165	3.67%, 10/1/20, Pool#AE0918		2,035,977
	2,681,492	3.76%, 12/1/20, Pool#FN0001		2,894,219
	1,000,000	3.94%, 1/1/21, Pool #466969		1,087,333
	1,137,679	4.62%, 4/1/21, Pool #467731		1,278,708
	990,624	3.93%, 7/1/21, Pool #468518		1,075,196
	1,245,000	3.06%, 5/1/22, Pool #471258		1,295,267
	2,000,000	2.50%, 1/25/29		2,036,250
	1,000,000	3.50%, 1/25/30		1,056,406
	1,000,000	3.00%, 1/25/30		1,039,414
	1,030,616	3.00%, 10/1/33, Pool #MA1676		1,064,544
	6,730,000	4.50%, 1/25/44		7,305,205
	14,560,000	3.50%, 1/25/45		15,177,664
	16,865,000	4.00%, 1/25/45		17,999,237
	24,195,000	3.00%, 1/25/45		24,474,756

				88,002,926

	Government National Mortgage Association (2.6%)
	1,000,000	4.50%, 1/20/44		1,092,617
	5,000,000	4.00%, 1/20/45		5,360,879
	3,000,000	3.50%, 1/20/45		3,149,063
	1,000,000	3.00%, 2/20/45		1,022,625

				10,625,184

	Total U.S. Government Agency Mortgages (Cost $139,219,349)			139,722,724

	U.S. Treasury Obligations (41.5%):
	U.S. Treasury Bonds (2.8%)
	10,105,000	3.13%, 8/15/44		10,878,659
	900,000	3.00%, 11/15/44		945,844

				11,824,503

	U.S. Treasury Inflation Index Bonds (1.3%)
	4,695,000	1.38%, 2/15/44		5,413,527

	U.S. Treasury Inflation Index Notes (0.8%)
	3,244,821	0.13%, 7/15/24		3,124,759

	U.S. Treasury Notes (36.6%)
	95,500,000	0.50%, 7/31/16		95,544,789
	18,760,000	1.50%, 10/31/19		18,645,676
	11,670,000	2.38%, 8/15/24		11,886,082


Shares or Principal Amount			Fair Value
	U.S. Treasury Obligations, continued
	U.S. Treasury Notes, continued
$	26,065,000	2.25%, 11/15/24	$	26,240,130

				152,316,677

	Total U.S. Treasury Obligations (Cost $171,864,261)			172,679,466

	Commercial Paper (1.0%):
	3,950,000	Macquarie Bank, Ltd., 0.22%(b)(d)		3,948,896

	Total Commercial Paper (Cost $3,948,697)			3,948,896

	Unaffiliated Investment Company (0.2%):
	931,427	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00% (d)		931,427

	Total Unaffiliated Investment Company (Cost $931,427)			931,427

	Total Investment Securities (Cost $492,951,591)(e) — 119.0%			494,387,889
	Net other assets (liabilities) — (19.0)%			(78,801,965	)

	Net Assets — 100.0%		$	415,585,924

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	492,951,591

Investment securities, at value	$	494,387,889
Interest and dividends receivable		1,726,585
Receivable for investments sold		16,711,058
Prepaid expenses		3,201

Total Assets		512,828,733

Liabilities:
Cash overdraft		12,103
Payable for investments purchased		96,922,404
Manager fees payable		194,319
Administration fees payable		402
Distribution fees payable		88,327
Administrative and compliance services fees payable		2,448
Other accrued liabilities		22,806

Total Liabilities		97,242,809

Net Assets	$	415,585,924

Net Assets Consist of:
Capital	$	412,585,317
Accumulated net investment income/(loss)		401,870
Accumulated net realized gains/(losses) from investment transactions		1,162,439
Net unrealized appreciation/(depreciation) on investments		1,436,298

Net Assets	$	415,585,924

Shares of beneficial interest (unlimited number of shares authorized, no par value)		41,273,178
Net Asset Value (offering and redemption price per share)	$	10.07

Statement of Operations

For the Period Ended December 31, 2014(a)


Investment Income:
Interest	$	726,419

Total Investment Income		726,419

Expenses:
Manager fees		307,769
Administration fees		652
Distribution fees		128,236
Administrative and compliance services fees		2,152
Trustee fees		10
Professional fees		20,284
Shareholder reports		6,974
Other expenses		715

Total expenses before reductions		466,792
Less expenses voluntarily waived/reimbursed by the Manager		(25,648	)

Net expenses		441,144

Net Investment Income/(Loss)		285,275

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		1,150,798
Change in net unrealized appreciation/depreciation on investments		1,436,298

Net Realized/Unrealized Gains/(Losses) on Investments		2,587,096

Change in Net Assets Resulting From Operations	$	2,872,371

(a)	For the period November 17, 2014 (commencement of operations) to December 31, 2014.

(Selected data for a share of beneficial interest outstanding throughout the period indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL MetWest Total Return Bond Fund (the “Fund”), and 30 are presented in separate reports.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Metropolitan West Asset Management, LLC (“MetWest”), MetWest provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the period ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $326 was paid from the Fund relating to these fees and expenses.

of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes. Short term securities of sufficient credit quality with sixty days or less remaining until maturity may be valued at amortized cost, which approximates fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

For the year ended December 31, 2014, purchases and sales on long-term U.S. government securities were as follows:

Cost for federal income tax purposes at December 31, 2014 is $492,976,760. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MetWest Total Return Bond Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statements of operations and changes in net assets, and the financial highlights for the period November 17, 2014 to December 31, 2014. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial highlights based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations, the changes in its net assets, and the financial highlights for the period November 17, 2014 to December 31, 2014, in conformity with U.S. generally accepted accounting principles.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® MFS Investors Trust Fund returned 10.75%. That compared to a 13.69% total return for its benchmark, the S&P 500 Index¹.

U.S. stocks performed well during the period, despite a temporary setback at the start of the year. Stocks fell early in the first quarter due to concerns about slowing global growth, a soft December 2013 labor market report, and a pause in U.S. economic growth, which was partially caused by extreme weather events. The stock market soon recovered, however, as investors regained their appetite for riskier investments from February into the summer. Any market setbacks during this time were short-lived as improving economic growth in the U.S., coupled with easier monetary policy abroad, helped support increased demand for stocks.

Near the end of the year the U.S. equity market approached all-time highs. At this point, a rapid and severe decline in energy prices created a great deal of stock-market volatility.

The Fund performed well in absolute terms during the period but underperformed its benchmark. Stock selection and an underweight position in the technology sector detracted from the Fund’s relative performance. In particular, a smaller-than-benchmark position in a strong-performing consumer electronics maker weighed on relative results. An overweight position in an Internet services and products company also dragged on performance as the stock underperformed the benchmark.*

Stock selection in the health care, basic materials, and consumer staples sectors also weighed on relative performance, with holdings of an international food producer notably underperforming the benchmark. Currency exposure was another factor in the Fund’s underperformance. The U.S. dollar strengthened throughout the period, causing the Fund to be hurt by its greater-than-benchmark exposure to holdings of securities denominated in foreign currencies.*

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (4/29/05)
AZL^® MFS Investors Trust Fund		10.75	%		20.18	%		13.51	%		10.58	%
S&P 500 Index		13.69	%		20.41	%		15.45	%		8.40	%


Expense Ratio	Gross
AZL^® MFS Investors Trust Fund		1.06	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.70% on assets above $100 million. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Standard & Poor’s 500 (“S&P 500”) Index, which is an unmanaged index that is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index

As a shareholder of the AZL MFS Investors Trust Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

	Common Stocks (98.9%):
	Aerospace & Defense (5.0%):
	61,692	Honeywell International, Inc.	$	6,164,265
	20,834	Precision Castparts Corp.		5,018,494
	64,121	United Technologies Corp.		7,373,915

				18,556,674

	Air Freight & Logistics (0.8%):
	28,151	United Parcel Service, Inc., Class B^		3,129,547

	Auto Components (0.5%):
	24,241	Delphi Automotive plc		1,762,806

	Banks (6.4%):
	277,862	Bank of America Corp.		4,970,951
	177,041	JPMorgan Chase & Co.		11,079,225
	140,787	Wells Fargo & Co.		7,717,943

				23,768,119

	Beverages (1.7%):
	90,541	Diageo plc		2,596,500
	34,701	Pernod Ricard SA		3,847,085

				6,443,585

	Capital Markets (5.3%):
	16,579	BlackRock, Inc., Class A		5,927,987
	23,530	Franklin Resources, Inc.^		1,302,856
	35,438	Goldman Sachs Group, Inc. (The)		6,868,948
	89,158	Morgan Stanley		3,459,330
	29,296	State Street Corp.		2,299,736

				19,858,857

	Chemicals (3.7%):
	7,676	FMC Corp.^		437,762
	14,409	Linde AG		2,687,245
	23,049	Praxair, Inc.		2,986,228
	16,257	Sherwin Williams Co.^		4,276,242
	37,730	W.R. Grace & Co.*		3,599,065

				13,986,542

	Construction & Engineering (0.6%):
	37,687	Fluor Corp.^		2,284,963

	Consumer Finance (1.9%):
	74,538	American Express Co.		6,935,016

	Containers & Packaging (1.2%):
	84,376	Crown Holdings, Inc.*^		4,294,738

	Diversified Financial Services (1.0%):
	75,521	NASDAQ OMX Group, Inc. (The)		3,621,987

	Electric Utilities (0.7%):
	42,432	American Electric Power Co., Inc.		2,576,471

	Energy Equipment & Services (2.8%):
	58,769	Cameron International Corp.*		2,935,512
	38,319	National-Oilwell Varco, Inc.^		2,511,044
	56,694	Schlumberger, Ltd.		4,842,235

				10,288,791

	Food Products (2.5%):
	56,809	Danone SA		3,736,822


Shares			Fair Value

	Common Stock, continued
	Food Products, continued
	27,353	General Mills, Inc.^	$	1,458,735
	115,302	Mondelez International, Inc., Class A		4,188,346

				9,383,903

	Health Care Equipment & Supplies (3.5%):
	75,810	Abbott Laboratories		3,412,966
	36,768	Covidien plc		3,760,631
	40,254	St. Jude Medical, Inc.^		2,617,718
	36,254	Stryker Corp.		3,419,840

				13,211,155

	Health Care Providers & Services (0.9%):
	16,748	McKesson, Inc.		3,476,550

	Hotels, Restaurants & Leisure (1.1%):
	43,075	McDonald’s Corp.		4,036,128

	Household Durables (0.9%):
	85,837	Newell Rubbermaid, Inc.		3,269,531

	Household Products (2.9%):
	44,361	Colgate-Palmolive Co.		3,069,338
	85,329	Procter & Gamble Co. (The)		7,772,618

				10,841,956

	Industrial Conglomerates (2.8%):
	122,010	Danaher Corp.		10,457,477

	Insurance (0.9%):
	27,645	ACE, Ltd.		3,175,858

	Internet Software & Services (2.8%):
	8,843	Google, Inc., Class C*		4,654,955
	11,032	Google, Inc., Class A*		5,854,241

				10,509,196

	IT Services (8.6%):
	64,074	Accenture plc, Class A^		5,722,448
	106,929	Cognizant Technology Solutions Corp., Class A*		5,630,881
	82,595	Fidelity National Information Services, Inc.		5,137,409
	65,601	MasterCard, Inc., Class A		5,652,182
	36,262	Visa, Inc., Class A		9,507,896

				31,650,816

	Life Sciences Tools & Services (1.7%):
	50,093	Thermo Fisher Scientific, Inc.		6,276,152

	Media (6.9%):
	117,332	Comcast Corp., Class A		6,806,429
	76,226	Time Warner Cable, Inc.		6,511,225
	122,154	Twenty-First Century Fox, Inc.^		4,691,324
	80,351	Walt Disney Co. (The)		7,568,260

				25,577,238

	Multiline Retail (2.1%):
	60,549	Kohl’s Corp.^		3,695,911
	55,288	Target Corp.^		4,196,912

				7,892,823

	Multi-Utilities (0.9%):
	92,041	CMS Energy Corp.		3,198,425


Shares			Fair Value

	Common Stocks, continued
	Oil, Gas & Consumable Fuels (3.2%):
	58,104	EOG Resources, Inc.	$	5,349,635
	73,792	Noble Energy, Inc.		3,499,955
	35,635	Occidental Petroleum Corp.		2,872,537

				11,722,127

	Pharmaceuticals (8.1%):
	54,848	Abbvie, Inc.		3,589,253
	8,529	Actavis, Inc. plc*		2,195,450
	57,784	Bristol-Myers Squibb Co.		3,410,990
	25,970	Eli Lilly & Co.		1,791,670
	49,506	Endo International plc*		3,570,373
	74,495	Johnson & Johnson Co.		7,789,942
	65,572	Pfizer, Inc.		2,042,568
	39,195	Valeant Pharmaceuticals International, Inc.*		5,609,196

				29,999,442

	Real Estate Investment Trusts (REITs) (1.8%):
	66,683	American Tower Corp.		6,591,615

	Road & Rail (1.3%):
	71,504	Canadian National Railway Co.		4,927,341

	Semiconductors & Semiconductor Equipment (2.4%):
	109,858	Altera Corp.^		4,058,155
	108,817	Microchip Technology, Inc.		4,908,734

				8,966,889

	Software (1.1%):
	39,907	Citrix Systems, Inc.*		2,546,067
	37,069	Oracle Corp.		1,666,993

				4,213,060

	Specialty Retail (3.2%):
	63,562	Bed Bath & Beyond, Inc.*^		4,841,518
	37,684	L Brands, Inc.		3,261,550
	40,217	Ross Stores, Inc.^		3,790,854

				11,893,922


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Common Stocks, continued
	Technology Hardware, Storage & Peripherals (4.2%):
	35,629	Apple, Inc.	$	3,932,729
	270,811	EMC Corp.^		8,053,919
	93,101	Hewlett-Packard Co.		3,736,143

				15,722,791

	Textiles, Apparel & Luxury Goods (2.4%):
	163	Hermes International SA		57,967
	18,429	LVMH Moet Hennessy Louis Vuitton SA		2,913,907
	23,914	Nike, Inc., Class B		2,299,331
	47,735	V.F. Corp.		3,575,352

				8,846,557

	Trading Companies & Distributors (1.1%):
	15,473	W.W. Grainger, Inc.^		3,943,913

	Total Common Stocks (Cost $235,431,431)			367,292,961

	Preferred Stock (0.3%):
	Electric Utilities (0.3%):
	20,030	Exelon Corp., Preferred Shares^		1,051,575

	Total Preferred Stock (Cost $1,013,350)			1,051,575

	Securities Held as Collateral for Securities on Loan (12.7%):
$	47,071,960	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		47,071,960

	Total Securities Held as Collateral for Securities on Loan (Cost $47,071,960)			47,071,960

	Unaffiliated Investment Company (0.9%):
	3,440,489	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		3,440,489

	Total Unaffiliated Investment Company (Cost $3,440,489)			3,440,489

	Total Investment Securities (Cost $286,957,230)(c) — 112.8%			418,856,985
	Net other assets (liabilities) — (12.8)%			(47,531,994	)

	Net Assets — 100.0%		$	371,324,991

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	286,957,230

Investment securities, at value*	$	418,856,985
Cash		13,213
Interest and dividends receivable		403,583
Foreign currency, at value (cost $365)		364
Reclaims receivable		390
Prepaid expenses		3,041

Total Assets		419,277,576

Liabilities:
Payable for capital shares redeemed		541,386
Payable for collateral received on loaned securities		47,071,960
Manager fees payable		225,482
Administration fees payable		8,568
Distribution fees payable		79,013
Custodian fees payable		5,767
Administrative and compliance services fees payable		1,121
Trustee fees payable		22
Other accrued liabilities		19,266

Total Liabilities		47,952,585

Net Assets	$	371,324,991

Net Assets Consist of:
Capital	$	193,102,040
Accumulated net investment income/(loss)		2,561,773
Accumulated net realized gains/(losses) from investment transactions		43,761,460
Net unrealized appreciation/(depreciation) on investments		131,899,718

Net Assets	$	371,324,991

Shares of beneficial interest (unlimited number of shares authorized, no par value)		16,181,191
Net Asset Value (offering and redemption price per share)	$	22.95

*	Includes securities on loan of $45,717,004.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	6,657,557
Income from securities lending		74,841
Foreign withholding tax		(120,289	)

Total Investment Income		6,612,109

Expenses:
Manager fees		2,850,388
Administration fees		102,515
Distribution fees		950,129
Custodian fees		24,807
Administrative and compliance services fees		5,164
Trustee fees		19,920
Professional fees		21,143
Shareholder reports		18,074
Other expenses		9,499

Total expenses before reductions		4,001,639
Less expenses voluntarily waived/reimbursed by the Manager		(140,030	)
Less expenses paid indirectly		(895	)

Net expenses		3,860,714

Net Investment Income/(Loss)		2,751,395

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		44,563,564
Change in net unrealized appreciation/depreciation on investments		(9,693,290	)

Net Realized/Unrealized Gains/(Losses) on Investments		34,870,274

Change in Net Assets Resulting From Operations	$	37,621,669

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL MFS Investors Trust Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $7,416 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a portfolio management agreement with Massachusetts Financial Services Company (“MFS”), MFS provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $4,769 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $288,572,111. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MFS Investors Trust Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $7,435,736.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® MFS Mid Cap Value Fund returned 10.90%, which compared to a 14.75% total return for its benchmark, the Russell Midcap^® Value Index¹.

The Fund changed subadvisors from Columbia Management Investment Advisers to MFS Investment Management on February 4, 2014.

U.S. stocks performed well during the period, despite a temporary setback at the start of the year. Stocks fell early in the first quarter due to concerns about slowing global growth, a soft December 2013 labor market report and a pause in U.S. economic growth, which was partially caused by extreme weather events. The stock market soon recovered, however, as investors regained their appetite for riskier investments from February into the summer. Any market setbacks during this time were short-lived as improving economic growth in the U.S., coupled with easier monetary policy abroad, helped support increased demand for stocks.

Near the end of the year the U.S. equity market approached all-time highs. At this point a rapid and severe decline in energy prices created a great deal of stock-market volatility.

The Fund underperformed its benchmark for the period, due primarily to its overweight position in the energy sector. Stock selection in this sector also detracted from relative performance, with off-benchmark holdings of an independent energy company, a drilling services provider and an offshore drilling company all suffering from the precipitous decline in energy prices. Stock selection in the basic materials and financial services sectors also dragged on results. Holdings of a diversified chemical company and a graphite and steel producer were notable detractors; they were not held by the benchmark and they underperformed for the period.*

Fund Objective

Investment Concerns

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high- grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (5/1/06)
AZL^® MFS Mid Cap Value Fund		10.90	%		20.18	%		15.48	%		3.73	%
Russell Midcap^® Value Index		14.75	%		21.98	%		17.43	%		8.43	%


Expense Ratio	Gross
AZL^® MFS Mid Cap Value Fund		1.06	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.30% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Russell Midcap^® Value Index, an unmanaged index that measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap companies with lower price-to-book ratios and lower expected growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL MFS Mid Cap Value Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

	Common Stocks (99.3%):
	Aerospace & Defense (0.9%):
	11,874	Mtu Aero Engines AG	$	1,036,639
	18,863	Triumph Group, Inc.		1,267,971

				2,304,610

	Airlines (1.2%):
	19,670	Alaska Air Group, Inc.		1,175,479
	34,830	Delta Air Lines, Inc.		1,713,288

				2,888,767

	Auto Components (2.3%):
	53,842	Allison Transmission Holdings, Inc.		1,825,244
	29,696	BorgWarner, Inc.		1,631,795
	24,123	Delphi Automotive plc		1,754,225

				5,211,264

	Automobiles (0.6%):
	21,488	Harley-Davidson, Inc.		1,416,274

	Banks (7.5%):
	56,581	BB&T Corp.^		2,200,435
	29,158	Comerica, Inc.		1,365,761
	115,549	Fifth Third Bancorp		2,354,312
	26,694	First Republic Bank		1,391,291
	191,317	Huntington Bancshares, Inc.		2,012,655
	127,908	KeyCorp		1,777,921
	11,100	M&T Bank Corp.^		1,394,382
	53,659	PrivateBancorp, Inc.		1,792,211
	32,299	SunTrust Banks, Inc.		1,353,328
	102,936	TCF Financial Corp.		1,635,653

				17,277,949

	Beverages (1.6%):
	29,394	Coca-Cola Enterprises, Inc.		1,299,803
	31,328	Molson Coors Brewing Co., Class B		2,334,562

				3,634,365

	Building Products (1.4%):
	31,397	Armstrong World Industries, Inc.*		1,605,014
	33,847	Fortune Brands Home & Security, Inc.^		1,532,254

				3,137,268

	Capital Markets (1.7%):
	6,822	Affiliated Managers Group, Inc.*		1,447,901
	14,134	State Street Corp.		1,109,519
	35,260	TD Ameritrade Holding Corp.		1,261,603

				3,819,023

	Chemicals (6.0%):
	21,741	Akzo Nobel NV		1,507,444
	23,676	Albemarle Corp.^		1,423,638
	73,230	Axalta Coating Systems, Ltd.*^		1,905,445
	26,407	Celanese Corp., Series A		1,583,364
	21,467	FMC Corp.^		1,224,263
	32,044	H.B. Fuller Co.^		1,426,919
	15,314	Rockwood Holdings, Inc.		1,206,743
	22,418	Sensient Technologies Corp.		1,352,702
	23,684	Valspar Corp. (The)		2,048,192

				13,678,710


Shares			Fair Value

	Common Stocks, continued
	Commercial Services & Supplies (0.9%):
	45,195	Tyco International plc	$	1,982,253

	Consumer Finance (1.0%):
	35,692	Discover Financial Services		2,337,469

	Containers & Packaging (2.8%):
	52,552	Crown Holdings, Inc.*		2,674,897
	92,966	Graphic Packaging Holding Co.*		1,266,197
	23,393	Greif, Inc., Class A		1,104,851
	54,064	Owens-Illinois, Inc.*		1,459,187

				6,505,132

	Diversified Financial Services (1.3%):
	62,520	NASDAQ OMX Group, Inc. (The)		2,998,459

	Diversified Telecommunication Services (1.2%):
	269,618	Colt Group SA*		557,663
	223,208	Frontier Communications Corp.^		1,488,797
	113,265	Windstream Holdings, Inc.^		933,304

				2,979,764

	Electric Utilities (2.1%):
	33,729	Northeast Utilities		1,805,176
	30,564	OGE Energy Corp.		1,084,411
	29,445	Pinnacle West Capital Corp.		2,011,388

				4,900,975

	Electrical Equipment (1.4%):
	26,956	Eaton Corp. plc		1,831,930
	17,211	Regal-Beloit Corp.		1,294,267

				3,126,197

	Electronic Equipment, Instruments & Components (1.4%):
	62,187	Ingram Micro, Inc., Class A*		1,718,849
	44,726	Keysight Technologies, Inc.*		1,510,397

				3,229,246

	Energy Equipment & Services (1.3%):
	25,381	Cameron International Corp.*		1,267,781
	24,647	Ensco plc, Class A, ADR^		738,178
	112,432	Pacific Drilling SA*		521,684
	16,777	Tidewater, Inc.^		543,743

				3,071,386

	Food & Staples Retailing (0.5%):
	15,233	Empire Co., Ltd., Class A		1,149,131

	Food Products (4.9%):
	19,772	Bunge, Ltd.		1,797,473
	77,790	Flowers Foods, Inc.^		1,492,790
	23,738	Ingredion, Inc.^		2,013,932
	19,117	J.M. Smucker Co. (The)^		1,930,435
	50,069	Pinnacle Foods, Inc.		1,767,436
	164,596	Rite AID Corp.*		1,237,762
	33,019	Snyders-Lance, Inc.^		1,008,730

				11,248,558

	Health Care Equipment & Supplies (3.1%):
	6,901	Cooper Cos., Inc. (The)^		1,118,583
	34,661	DENTSPLY International, Inc.^		1,846,391


Shares			Fair Value

	Common Stocks, continued
	Health Care Equipment & Supplies, continued
	27,823	St. Jude Medical, Inc.	$	1,809,330
	11,237	STERIS Corp.^		728,719
	13,880	Teleflex, Inc.^		1,593,702

				7,096,725

	Health Care Providers & Services (2.4%):
	20,610	AmerisourceBergen Corp.		1,858,198
	33,001	Quest Diagnostics, Inc.^		2,213,047
	12,355	Universal Health Services, Inc., Class B		1,374,617

				5,445,862

	Hotels, Restaurants & Leisure (0.5%):
	7,390	Wynn Resorts, Ltd.		1,099,336

	Household Durables (1.4%):
	82,119	Newell Rubbermaid, Inc.		3,127,913

	Independent Power and Renewable Electricity Producers (2.0%):
	136,300	AES Corp. (The)		1,876,851
	34,317	Dynegy, Inc.*		1,041,521
	60,464	NRG Energy, Inc.^		1,629,505

				4,547,877

	Insurance (7.5%):
	37,436	Arthur J. Gallagher & Co.		1,762,487
	11,074	Everest Re Group, Ltd.		1,885,902
	15,261	Hanover Insurance Group, Inc. (The)		1,088,415
	29,890	Hartford Financial Services Group, Inc. (The)		1,246,114
	34,141	HCC Insurance Holdings, Inc.		1,827,226
	36,812	Lincoln National Corp.		2,122,949
	69,593	Symetra Financial Corp.^		1,604,119
	67,786	Third Point Reinsurance, Ltd.*		982,219
	57,809	UnumProvident Corp.		2,016,378
	38,827	Validus Holdings, Ltd.		1,613,650
	40,149	XL Group plc, Class B		1,379,921

				17,529,380

	IT Services (1.5%):
	29,087	Fidelity National Information Services, Inc.		1,809,211
	85,755	Sabre Corp.^		1,738,254

				3,547,465

	Leisure Products (0.6%):
	44,121	Mattel, Inc.		1,365,324

	Life Sciences Tools & Services (1.6%):
	37,236	Agilent Technologies, Inc.		1,524,442
	51,762	PerkinElmer, Inc.		2,263,552

				3,787,994

	Machinery (4.0%):
	9,137	Cummins, Inc.		1,317,281
	20,909	Joy Global, Inc.^		972,687
	30,361	Oshkosh Corp.		1,477,063
	26,228	Pentair, Ltd.		1,742,064
	13,935	SPX Corp.		1,197,295
	24,483	Stanley Black & Decker, Inc.		2,352,326

				9,058,716


Shares			Fair Value

	Common Stocks, continued
	Media (2.1%):
	17,948	AMC Networks, Inc., Class A*	$	1,144,544
	32,637	Cinemark Holdings, Inc.		1,161,224
	81,038	Interpublic Group of Cos., Inc. (The)		1,683,160
	37,863	Quebecor, Inc., Class B		1,041,192

				5,030,120

	Metals & Mining (0.3%):
	27,817	United States Steel Corp.^		743,827

	Multiline Retail (1.1%):
	24,823	Burlington Stores, Inc.*		1,173,135
	24,021	Kohl’s Corp.^		1,466,242

				2,639,377

	Multi-Utilities (3.4%):
	54,662	CMS Energy Corp.		1,899,505
	18,265	DTE Energy Co.		1,577,548
	29,132	NiSource, Inc.		1,235,779
	25,740	NorthWestern Corp.		1,456,369
	43,573	Public Service Enterprise Group, Inc.^		1,804,358

				7,973,559

	Oil, Gas & Consumable Fuels (5.4%):
	9,171	Cimarex Energy Co.		972,126
	74,622	Cobalt International Energy, Inc.*		663,390
	33,960	CONSOL Energy, Inc.^		1,148,188
	21,884	Energen Corp.^		1,395,324
	14,252	EQT Corp.		1,078,876
	28,922	HollyFrontier Corp.		1,083,997
	24,199	Noble Energy, Inc.		1,147,759
	20,271	PDC Energy, Inc.*^		836,584
	49,438	Peabody Energy Corp.^		382,650
	54,427	Plains GP Holdings, LP*^		1,397,685
	26,722	SM Energy Co.^		1,030,935
	38,919	Spectra Energy Corp.^		1,412,759

				12,550,273

	Pharmaceuticals (1.8%):
	28,865	Endo International plc*		2,081,743
	20,591	Hospira, Inc.*		1,261,199
	31,952	Impax Laboratories, Inc.*^		1,012,239

				4,355,181

	Professional Services (0.6%):
	18,153	Equifax, Inc.		1,468,033

	Real Estate Investment Trusts (REITs) (4.7%):
	70,899	Annaly Capital Management, Inc.		766,418
	58,825	Corporate Office Properties Trust		1,668,866
	69,819	DDR Corp.^		1,281,877
	28,623	EPR Properties^		1,649,543
	21,416	Equity Lifestyle Properties, Inc.		1,103,995
	106,817	Medical Properties Trust, Inc.^		1,471,938
	20,525	Mid-America Apartment Communities, Inc.^		1,532,807
	34,896	Plum Creek Timber Co., Inc.^		1,493,200

				10,968,644


Shares			Fair Value

	Common Stocks, continued
	Real Estate Management & Development (0.7%):
	36,082	Realogy Holdings Corp.*	$	1,605,288

	Road & Rail (0.6%):
	47,086	Swift Transportation Co.*^		1,348,072

	Semiconductors & Semiconductor Equipment (2.7%):
	40,897	Altera Corp.		1,510,735
	32,868	Analog Devices, Inc.		1,824,831
	6,216	Avago Technologies, Ltd.		625,267
	24,754	Freescale Semiconductor Holdings I, Ltd.*^		624,543
	33,761	Microchip Technology, Inc.^		1,522,959

				6,108,335

	Software (1.3%):
	32,107	NICE Systems, Ltd., ADR		1,626,220
	53,115	Symantec Corp.		1,362,665

				2,988,885

	Specialty Retail (3.8%):
	3,077	AutoZone, Inc.*^		1,905,001
	26,567	Bed Bath & Beyond, Inc.*^		2,023,608
	15,387	Children’s Place Retail Stores, Inc. (The)^		877,059
	24,507	L Brands, Inc.		2,121,081
	60,782	Sally Beauty Holdings, Inc.*		1,868,439

				8,795,188

	Technology Hardware, Storage & Peripherals (1.7%):
	46,997	NCR Corp.*^		1,369,493
	191,602	Xerox Corp.		2,655,603

				4,025,096

	Textiles, Apparel & Luxury Goods (1.3%):
	11,697	PVH Corp.		1,499,204
	8,460	Ralph Lauren Corp.^		1,566,454

				3,065,658

	Trading Companies & Distributors (1.2%):
	21,211	Brenntag AG		1,193,388
	18,615	WESCO International, Inc.*^		1,418,649

				2,612,037

	Total Common Stocks (Cost $208,268,559)			229,780,965

	Convertible Preferred Stock (0.3%):
	Wireless Telecommunication Services (0.3%):
	13,362	T-Mobile US, Inc., Series A, 5.50%*		708,052

	Total Convertible Preferred Stock (Cost $666,721)			708,052


Contracts, Shares, Notional Amount or Principal Amount			Fair Value

	Securities Held as Collateral for Securities on Loan (22.6%):
$	52,207,604	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)	$	52,207,604

	Total Securities Held as Collateral for Securities on Loan (Cost $52,207,604)			52,207,604

	Unaffiliated Investment Company (0.5%):
	1,189,661	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		1,189,661

	Total Unaffiliated Investment Company (Cost $1,189,661)			1,189,661

	Total Investment Securities (Cost $262,332,545)(c) — 122.7%			283,886,282
	Net other assets (liabilities) — (22.7)%			(52,443,584	)

	Net Assets — 100.0%		$	231,442,698

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	262,332,545

Investment securities, at value*	$	283,886,282
Interest and dividends receivable		264,714
Receivable for capital shares issued		326,353
Reclaims receivable		4,259
Prepaid expenses		1,934

Total Assets		284,483,542

Liabilities:
Payable for investments purchased		461,338
Payable for capital shares redeemed		163,976
Payable for collateral received on loaned securities		52,207,604
Manager fees payable		146,740
Administration fees payable		202
Distribution fees payable		48,914
Custodian fees payable		5,370
Administrative and compliance services fees payable		499
Trustee fees payable		10
Other accrued liabilities		6,191

Total Liabilities		53,040,844

Net Assets	$	231,442,698

Net Assets Consist of:
Capital	$	149,339,582
Accumulated net investment income/(loss)		1,705,099
Accumulated net realized gains/(losses) from investment transactions		58,844,821
Net unrealized appreciation/(depreciation) on investments		21,553,196

Net Assets	$	231,442,698

Shares of beneficial interest (unlimited number of shares authorized, no par value)		18,447,494
Net Asset Value (offering and redemption price per share)	$	12.55

*	Includes securities on loan of $50,553,280.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	4,159,074
Income from securities lending		48,112
Foreign withholding tax		(25,082	)

Total Investment Income		4,182,104

Expenses:
Manager fees		1,731,287
Administration fees		63,251
Distribution fees		577,096
Custodian fees		24,202
Administrative and compliance services fees		2,630
Trustee fees		10,145
Professional fees		10,967
Shareholder reports		10,492
Other expenses		5,033

Total expenses before reductions		2,435,103
Less expenses paid indirectly		(2,776	)

Net expenses		2,432,327

Net Investment Income/(Loss)		1,749,777

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		59,237,701
Change in net unrealized appreciation/depreciation on investments		(37,538,859	)

Net Realized/Unrealized Gains/(Losses) on Investments		21,698,842

Change in Net Assets Resulting From Operations	$	23,448,619

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL MFS Mid Cap Value Fund (formerly the AZL Columbia Mid Cap Value Fund) (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $4,771 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement effective January 24, 2014 with Massachusetts Financial Services Company (“MFS”), MFS provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. Prior to January 24, 2014, the Fund was Subadvised by Columbia Management Investment Advisers , LLC. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $2,860 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $263,039,618. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MFS Mid Cap Value Fund (formerly AZL Columbia Mid Cap Value Fund) (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $9,762,977.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® MFS Value Fund returned 10.26%, which compared to a 13.45% total return for its benchmark, the Russell 1000^® Value Index¹.

U.S. stocks performed well during the period, despite a temporary setback at the start of the year. Stocks fell early in the first quarter due to concerns about slowing global growth, a soft December 2013 labor market report and a pause in U.S. economic growth, which was partially caused by extreme weather events. The stock market soon recovered, however, as investors regained their appetite for riskier investments from February into the summer. Any market setbacks during this time were short-lived as improving economic growth in the U.S., coupled with easier monetary policy abroad, helped support increased demand for stocks.

Near the end of the year the U.S. equity market approached all-time highs. At this point a rapid and severe decline in energy prices created a great deal of stock-market volatility.

The Fund underperformed its benchmark for the period. In the technology sector, a combination of weak stock selection and an underweight position detracted from relative performance. In particular, holdings of an off-benchmark diversified technology products and services company dragged on results. A smaller-than-benchmark position in a semiconductor firm during the first quarter and the subsequent liquidation of that position also detracted, as the company performed strongly for the period. Stock selection in the utilities and communications sector was another factor in the Fund’s relative underperformance, as shares of another off-benchmark telecommunications company underperformed the benchmark.*

Currency exposure was another factor in the Fund’s underperformance. The U.S. dollar strengthened throughout the period, causing the Fund to be hurt by its greater-than-benchmark exposure to holdings of securities denominated in foreign currencies.*

An underweight position to the energy sector contributed positively to relative performance. A smaller-than-benchmark position in an integrated oil and gas company particularly helped, as that stock underperformed the benchmark. Stock selection in the industrial goods and services sector also benefited relative returns, receiving a boost from holdings of a defense contractor that performed well. An overweight position in a retail pharmacy chain also helped to boost the Fund’s relative performance, as did underweight positions in a telecommunications company and a financial services company.*

Past performance does not guarantee future results.

¹	The Russell 1000^® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. Investors cannot invest directly in an index.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® MFS Value Fund		10.26	%		20.33	%		12.82	%		5.67	%
Russell 1000^® Value Index		13.45	%		20.89	%		15.42	%		7.30	%


Expense Ratio	Gross
AZL^® MFS Value Fund		1.05	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.75% on the first $100 million of assets, 0.70% on the next $400 million, and 0.65% on assets above $500 million. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

As a shareholder of the AZL MFS Value Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

Common Stocks (98.7%):
Aerospace & Defense (7.0%):
	113,364	Honeywell International, Inc.	$	11,327,331
	55,956	Lockheed Martin Corp.		10,775,447
	28,671	Northrop Grumman Corp.		4,225,819
	94,108	United Technologies Corp.		10,822,420

				37,151,017

	Air Freight & Logistics (1.6%):
	76,928	United Parcel Service, Inc., Class B		8,552,086

	Auto Components (1.7%):
	51,927	Delphi Automotive plc		3,776,131
	104,339	Johnson Controls, Inc.		5,043,748

				8,819,879

	Banks (10.8%):
	34,921	Citigroup, Inc.		1,889,575
	358,819	JPMorgan Chase & Co.		22,454,894
	46,617	PNC Financial Services Group, Inc.		4,252,869
	228,699	U.S. Bancorp^		10,280,020
	316,197	Wells Fargo & Co.		17,333,920

				56,211,278

	Beverages (1.5%):
	243,677	Diageo plc		6,988,076
	14,190	Dr Pepper Snapple Group, Inc.		1,017,139

				8,005,215

	Capital Markets (6.4%):
	161,271	Bank of New York Mellon Corp. (The)		6,542,764
	14,461	BlackRock, Inc., Class A		5,170,675
	118,259	Franklin Resources, Inc.^		6,548,001
	52,403	Goldman Sachs Group, Inc. (The)		10,157,273
	64,487	State Street Corp.		5,062,230

				33,480,943

	Chemicals (1.7%):
	17,375	E.I. du Pont de Nemours & Co.		1,284,708
	33,541	PPG Industries, Inc.		7,753,001

				9,037,709

	Commercial Services & Supplies (1.2%):
	139,094	Tyco International plc		6,100,663

	Containers & Packaging (0.5%):
	51,823	Crown Holdings, Inc.*^		2,637,791

	Diversified Financial Services (0.7%):
	81,799	NASDAQ OMX Group, Inc. (The)		3,923,080

	Diversified Telecommunication Services (1.9%):
	42,770	AT&T, Inc.		1,436,644
	139,437	Verizon Communications, Inc.		6,522,863
	46,113	Verizon Communications, Inc.		2,148,338

				10,107,845

	Electric Utilities (0.2%):
	15,405	Duke Energy Corp.		1,286,934

	Electrical Equipment (0.8%):
	64,913	Eaton Corp. plc		4,411,487


Shares			Fair Value

Common Stocks, continued
	Energy Equipment & Services (0.8%):
	16,278	Baker Hughes, Inc.	$	912,707
	39,494	Schlumberger, Ltd.		3,373,183

				4,285,890

Food & Staples Retailing (1.8%):
	100,432	CVS Caremark Corp.		9,672,606

	Food Products (4.1%):
	56,105	Danone SA		3,690,513
	144,163	General Mills, Inc.^		7,688,213
	22,900	Kellogg Co.		1,498,576
	115,766	Nestle SA, Registered Shares		8,488,388

				21,365,690

	Health Care Equipment & Supplies (4.0%):
	142,282	Abbott Laboratories		6,405,536
	42,101	Covidien plc		4,306,090
	94,157	Medtronic, Inc.^		6,798,135
	54,875	St. Jude Medical, Inc.		3,568,521

				21,078,282

	Health Care Providers & Services (1.1%):
	65,289	Express Scripts Holding Co.*		5,528,020

	Hotels, Restaurants & Leisure (0.9%):
	53,140	McDonald’s Corp.		4,979,218

	Household Products (0.5%):
	31,404	Procter & Gamble Co. (The)		2,860,590

	Industrial Conglomerates (3.4%):
	66,287	3M Co.		10,892,280
	79,096	Danaher Corp.		6,779,318

				17,671,598

	Insurance (7.9%):
	51,176	ACE, Ltd.		5,879,099
	64,462	Aon plc		6,112,931
	39,206	Chubb Corp. (The)^		4,056,645
	183,566	MetLife, Inc.		9,929,086
	59,016	Prudential Financial, Inc.		5,338,587
	92,552	Travelers Cos., Inc. (The)^		9,796,629

				41,112,977

	IT Services (4.8%):
	131,445	Accenture plc, Class A		11,739,353
	42,199	Fidelity National Information Services, Inc.		2,624,778
	51,451	Fiserv, Inc.*		3,651,477
	44,907	International Business Machines Corp.		7,204,879

				25,220,487

	Leisure Products (0.6%):
	43,044	Hasbro, Inc.^		2,366,990
	23,528	Mattel, Inc.		728,074

				3,095,064

	Life Sciences Tools & Services (1.1%):
	45,064	Thermo Fisher Scientific, Inc.		5,646,069


Shares			Fair Value

Common Stocks, continued
	Machinery (1.5%):
	25,399	Illinois Tool Works, Inc.	$	2,405,285
	31,421	Pentair, Ltd.		2,086,983
	32,498	Stanley Black & Decker, Inc.		3,122,408

				7,614,676

	Media (5.3%):
	106,373	Comcast Corp., Class A^		6,123,361
	25,657	McGraw-Hill Cos., Inc. (The)		2,282,960
	79,566	Omnicom Group, Inc.^		6,163,977
	52,766	Time Warner Cable, Inc.		4,507,272
	5,642	Time, Inc.^		138,850
	47,821	Viacom, Inc., Class B		3,598,530
	56,019	Walt Disney Co. (The)		5,276,430

				28,091,380

	Multiline Retail (1.9%):
	21,130	Kohl’s Corp.^		1,289,775
	113,127	Target Corp.^		8,587,471

				9,877,246

	Oil, Gas & Consumable Fuels (5.0%):
	68,931	Chevron Corp.		7,732,680
	32,876	EOG Resources, Inc.		3,026,893
	108,607	Exxon Mobil Corp.		10,040,717
	69,189	Occidental Petroleum Corp.		5,577,325

				26,377,615

	Pharmaceuticals (8.2%):
	175,898	Johnson & Johnson Co.		18,393,653
	123,340	Merck & Co., Inc.		7,004,479
	17,892	Novartis AG, Registered Shares		1,645,979
	476,004	Pfizer, Inc.		14,827,524
	5,134	Roche Holding AG		1,391,942

				43,263,577

	Professional Services (0.2%):
	10,851	Equifax, Inc.		877,520

	Road & Rail (0.6%):
	46,298	Canadian National Railway Co.		3,190,395


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
Common Stocks, continued

	Semiconductors & Semiconductor Equipment (1.2%):
	115,215	Texas Instruments, Inc.	$	6,159,970

	Software (1.0%):
	120,529	Oracle Corp.		5,420,189

	Specialty Retail (1.0%):
	22,467	Advance Auto Parts, Inc.		3,578,544
	18,418	Bed Bath & Beyond, Inc.*^		1,402,899

				4,981,443

	Tobacco (5.2%):
	59,812	Altria Group, Inc.		2,946,937
	24,024	Imperial Tobacco Group plc		1,051,957
	85,766	Lorillard, Inc.		5,398,112
	214,552	Philip Morris International, Inc.		17,475,261

				26,872,267

	Wireless Telecommunication Services (0.6%):
	853,018	Vodafone Group plc		2,922,474

	Total Common Stocks (Cost $358,289,755)			517,891,170

	Convertible Preferred Stock (0.1%):
	Aerospace & Defense (0.1%):
	7,000	United Technologies Corp., 0.49%		429,310

	Total Convertible Preferred Stock (Cost $403,403)			429,310

	Securities Held as Collateral for Securities on Loan (11.1%):
$	58,253,255	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		58,253,255

	Total Securities Held as Collateral for Securities on Loan (Cost $58,253,255)			58,253,255

	Unaffiliated Investment Company (0.2%):
	871,051	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		871,051

	Total Unaffiliated Investment Company (Cost $871,051)			871,051

	Total Investment Securities (Cost $417,817,464)(c) — 110.1%			577,444,786
	Net other assets (liabilities) — (10.1)%			(53,183,282	)

	Net Assets — 100.0%		$	524,261,504

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	417,817,464

Investment securities, at value^*	$	577,444,786
Cash		8,609
Interest and dividends receivable		877,261
Receivable for capital shares issued		110,303
Receivable for investments sold		4,935,593
Reclaims receivable		74,592
Prepaid expenses		4,443

Total Assets		583,455,587

Liabilities:
Payable for investments purchased		53,838
Payable for capital shares redeemed		411,795
Payable for collateral received on loaned securities		58,253,255
Manager fees payable		316,876
Administration fees payable		13,210
Distribution fees payable		112,076
Custodian fees payable		6,546
Administrative and compliance services fees payable		1,475
Trustee fees payable		30
Other accrued liabilities		24,982

Total Liabilities		59,194,083

Net Assets	$	524,261,504

Net Assets Consist of:
Capital	$	387,465,167
Accumulated net investment income/(loss)		10,556,246
Accumulated net realized gains/(losses) from investment transactions		(33,377,578	)
Net unrealized appreciation/(depreciation) on investments		159,617,669

Net Assets	$	524,261,504

Shares of beneficial interest (unlimited number of shares authorized, no par value)		40,238,789
Net Asset Value (offering and redemption price per share)	$	13.03

*	Includes securities on loan of $56,552,113.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	16,172,497
Income from securities lending		41,009
Foreign withholding tax		(138,243	)

Total Investment Income		16,075,263

Expenses:
Manager fees		3,930,262
Administration fees		148,879
Distribution fees		1,330,677
Custodian fees		30,707
Administrative and compliance services fees		7,170
Trustee fees		27,750
Professional fees		29,759
Shareholder reports		25,427
Other expenses		13,120

Total expenses before reductions		5,543,751
Less expenses voluntarily waived/reimbursed by the Manager		(170,569	)
Less expenses paid indirectly		(50	)

Net expenses		5,373,132

Net Investment Income/(Loss)		10,702,131

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		31,438,896
Change in net unrealized appreciation/depreciation on investments		9,252,894

Net Realized/Unrealized Gains/(Losses) on Investments		40,691,790

Change in Net Assets Resulting From Operations	$	51,393,921

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL MFS Value Fund (the “Fund”), and 30 are presented in separate reports.

To generate additional income, the Fund may lend up to 33 ¹/₃% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $19.1 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $4,075 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Massachusetts Financial Services Company (“MFS”), MFS provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $6,640 was paid from the Fund relating to these fees and expenses.

During the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $420,444,067. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $31,245,433 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MFS Value Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Robert DeChellis, Age 47 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present.	43	None
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Advisory Management, Allianz Investment Management LLC from December 2005 to November 2010.	43	None


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Mid Cap Index Fund returned 9.21%, which compared to a 9.77% total return for its benchmark, the S&P MidCap 400 Index¹.

The Fund attempts to replicate the performance of the S&P Mid Cap 400 index of U.S. mid-cap stocks.

U.S. equities moved higher in 2014 as domestic economic growth gained momentum and interest rates remained low. The period started out on a negative note, however: Slowing growth in China, softer economic data in the U.S. and expectations that the Federal Reserve would soon end its stimulus efforts all weighed on investors. Equity markets declined sharply in January, but the sell-off was short-lived. Investors soon learned that the recent weakness in the U.S. economic data was weather-related, and therefore temporary. Meanwhile, the Federal Reserve shifted its position, announcing a more cautious approach to raising short-term rates.

U.S. equities moved higher throughout the period, but volatility increased through the period. A combination of high valuations and persistent expectations of higher interest rates left stocks vulnerable to bad news. Tensions between Russia and Ukraine weighed on global markets early in the period, while later geopolitical crises—including a ground war in Gaza—added to concerns.

U.S. economic growth strengthened considerably in the second half of 2014, even as the broader global economy showed signs of slowing. U.S. stocks recovered from a September sell-off to post impressive gains through the fourth quarter of 2014 as economic data continued to impress investors and helped to fuel a positive corporate earnings season. A sharp decline in oil prices later in the period contributed to uncertainty about global growth, but helped buoy U.S. stocks as it led to a pickup in consumer spending.

The Fund slightly underperformed its benchmark due in large part to the effect of fees and expenses. These negatives were partially offset by gains from slight differences in weightings between the holdings in the Fund and the index.*

Consumer staples was the top performing sector of the period as many investors turned to more defensive holdings as volatility increased during the period. Sectors with ties to cyclical growth also performed well, including the telecommunications services and health care sectors. The industrials and materials sectors underperformed the index, in large part due to a decline in commodity prices, including oil, and weakness in the energy sector. Oil’s decline had the largest impact on the energy sector, however, which posted a large loss for the period.*

Past performance does not guarantee future results.

The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek to match the performance of the Standard & Poor’s MidCap 400 Index (“S&P 400”) as closely as possible. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets in a statistically selected sampling of equity securities of companies included in the S&P 400 and in derivative instruments linked to the S&P 400, primarily futures contracts.

Investment Concerns

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

The Fund does not attempt to manage market volatility or reduce the effects of poor stock performance. In addition, factors such as Fund expenses, selection of a representative portfolio, changes in the composition of the Index, or the timing of purchases or redemptions of Fund shares may affect the correlation between the performance of the Index and the Fund’s performance.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (5/1/09)
AZL^® Mid Cap Index Fund		9.21	%		19.32	%		15.65	%		19.21	%
S&P MidCap 400 Index		9.77	%		19.99	%		16.54	%		20.12	%


Expense Ratio¹	Gross
AZL^® Mid Cap Index Fund		0.60	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 0.71% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Standard & Poor’s MidCap 400 Index (“S&P 400”), which is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition. The index is unmanaged and does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Mid Cap Index Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (95.9%):
	Aerospace & Defense (1.6%):
	10,389	Alliant Techsystems, Inc.	$	1,207,721
	34,252	BE Aerospace, Inc.*		1,987,301
	10,392	Esterline Technologies Corp.*^		1,139,795
	60,720	Exelis, Inc.		1,064,422
	15,701	Huntington Ingalls Industries, Inc.		1,765,734
	17,136	KLX, Inc.*		706,860
	16,513	Triumph Group, Inc.		1,110,004

				8,981,837

	Airlines (0.7%):
	742,777	Alaska Air Group, Inc.		2,556,354
	79,747	JetBlue Airways Corp.*^		1,264,787

				3,821,141

	Auto Components (0.3%):
	47,618	Gentex Corp.		1,720,438

	Automobiles (0.2%):
	15,115	Thor Industries, Inc.		844,475

	Banks (4.6%):
	49,417	Associated Banc-Corp.^		920,639
	27,839	BancorpSouth, Inc.^		626,656
	14,266	Bank of Hawaii Corp.^		846,116
	24,129	Cathay General Bancorp		617,461
	15,599	City National Corp.		1,260,555
	26,941	Commerce Bancshares, Inc.^		1,171,671
	17,848	Cullen/Frost Bankers, Inc.		1,260,783
	46,694	East West Bancorp, Inc.		1,807,525
	76,490	First Horizon National Corp.^		1,038,734
	115,166	First Niagara Financial Group, Inc.		970,849
	53,816	FirstMerit Corp.		1,016,584
	60,238	Fulton Financial Corp.		744,542
	26,522	Hancock Holding Co.		814,225
	18,838	International Bancshares Corp.		499,961
	30,693	PacWest Bancorp		1,395,304
	19,522	Prosperity Bancshares, Inc.		1,080,738
	16,366	Signature Bank*		2,061,460
	16,540	SVB Financial Group*		1,919,798
	44,405	Synovus Financial Corp.		1,202,931
	54,419	TCF Financial Corp.		864,718
	21,957	Trustmark Corp.^		538,825
	70,683	Umpqua Holdings Corp.		1,202,318
	71,576	Valley National Bancorp^		695,003
	29,365	Webster Financial Corp.		955,243

				25,512,639

	Biotechnology (0.8%):
	24,814	Cubist Pharmaceuticals, Inc.*		2,497,529
	15,447	United Therapeutics Corp.*		2,000,232

				4,497,761

	Building Products (0.9%):
	24,457	A.O. Smith Corp.		1,379,619
	51,298	Fortune Brands Home & Security, Inc.		2,322,261
	14,370	Lennox International, Inc.^		1,366,156

				5,068,036


Shares			Fair Value
	Common Stocks, continued
	Capital Markets (1.6%):
	38,452	Eaton Vance Corp.^	$	1,573,840
	30,936	Federated Investors, Inc., Class B^		1,018,722
	47,775	Janus Capital Group, Inc.^		770,611
	40,975	Raymond James Financial, Inc.		2,347,459
	42,412	SEI Investments Co.		1,698,176
	27,187	Waddell & Reed Financial, Inc., Class A		1,354,456

				8,763,264

	Chemicals (2.9%):
	25,455	Albemarle Corp.^		1,530,609
	20,750	Ashland, Inc.		2,485,019
	20,825	Cabot Corp.		913,385
	23,450	Cytec Industries, Inc.		1,082,687
	11,230	Minerals Technologies, Inc.		779,924
	3,464	NewMarket Corp.^		1,397,828
	25,424	Olin Corp.^		578,904
	29,559	PolyOne Corp.		1,120,582
	43,413	RPM International, Inc.		2,201,473
	14,437	Scotts Miracle-Gro Co. (The)		899,714
	15,670	Sensient Technologies Corp.		945,528
	24,794	Valspar Corp. (The)		2,144,185

				16,079,838

	Commercial Services & Supplies (1.8%):
	17,737	Clean Harbors, Inc.*^		852,263
	36,988	Copart, Inc.*		1,349,692
	37,890	Corrections Corp. of America^		1,376,923
	16,156	Deluxe Corp.		1,005,711
	19,364	Herman Miller, Inc.		569,883
	14,435	HNI Corp.		737,051
	10,239	MSA Safety, Inc.^		543,589
	65,008	R.R. Donnelley & Sons Co.		1,092,459
	20,846	Rollins, Inc.		690,003
	40,373	Waste Connections, Inc.		1,776,007

				9,993,581

	Communications Equipment (1.1%):
	42,862	Arris Group, Inc.*		1,294,004
	34,687	Ciena Corp.*^		673,275
	12,097	InterDigital, Inc.		639,931
	75,436	JDS Uniphase Corp.*		1,034,982
	13,970	Plantronics, Inc.		740,689
	44,404	Polycom, Inc.*		599,454
	50,433	Riverbed Technology, Inc.*		1,029,338

				6,011,673

	Construction & Engineering (0.5%):
	50,038	Aecom Technology Corp.*		1,519,654
	11,731	Granite Construction, Inc.^		446,013
	47,215	KBR, Inc.		800,294

				2,765,961

	Construction Materials (0.2%):
	16,352	Eagle Materials, Inc.		1,243,243


Shares			Fair Value
	Common Stocks, continued
	Consumer Finance (0.3%):
	137,660	SLM Corp.	$	1,402,755

	Containers & Packaging (2.0%):
	21,046	AptarGroup, Inc.		1,406,715
	32,491	Bemis Co., Inc.		1,468,918
	11,035	Greif, Inc., Class A		521,183
	31,998	Packaging Corp. of America		2,497,444
	45,537	Rock-Tenn Co., Class A		2,776,846
	14,179	Silgan Holdings, Inc.		759,994
	32,924	Sonoco Products Co.		1,438,779

				10,869,879

	Distributors (0.5%):
	98,556	LKQ Corp.*		2,771,395

	Diversified Consumer Services (1.0%):
	31,405	Apollo Group, Inc., Class A*		1,071,225
	18,708	DeVry, Inc.		888,069
	1,433	Graham Holdings Co., Class B		1,237,696
	67,514	Service Corp. International		1,532,567
	19,982	Sotheby’s^		862,823

				5,592,380

	Diversified Financial Services (0.6%):
	27,442	CBOE Holdings, Inc.		1,740,372
	36,426	MSCI, Inc., Class A		1,728,049

				3,468,421

	Electric Utilities (1.7%):
	19,644	Cleco Corp.		1,071,384
	50,052	Great Plains Energy, Inc.		1,421,977
	33,368	Hawaiian Electric Industries, Inc.^		1,117,161
	16,355	IDACORP, Inc.		1,082,537
	64,828	OGE Energy Corp.		2,300,098
	25,923	PNM Resources, Inc.		768,098
	42,526	Westar Energy, Inc.		1,753,772

				9,515,027

	Electrical Equipment (1.1%):
	14,107	Acuity Brands, Inc.		1,975,968
	13,921	Belden CDT, Inc.		1,097,114
	17,669	Hubbell, Inc., Class B		1,887,579
	14,530	Regal-Beloit Corp.		1,092,656

				6,053,317

	Electronic Equipment, Instruments & Components (3.2%):
	31,509	Arrow Electronics, Inc.*		1,824,056
	44,561	Avnet, Inc.		1,917,014
	28,319	Cognex Corp.*		1,170,424
	13,510	FEI Co.		1,220,629
	50,727	Ingram Micro, Inc., Class A*		1,402,094
	11,547	IPG Photonics Corp.*^		865,101
	12,700	Itron, Inc.*		537,083
	62,881	Jabil Circuit, Inc.		1,372,692
	54,483	Keysight Technologies, Inc.*		1,839,891
	27,686	Knowles Corp.*^		652,005


Shares			Fair Value
	Common Stocks, continued
	Electronic Equipment, Instruments & Components, continued
	32,795	National Instruments Corp.	$	1,019,597
	12,450	Tech Data Corp.*		787,214
	84,215	Trimble Navigation, Ltd.*		2,235,066
	44,160	Vishay Intertechnology, Inc.^		624,864

				17,467,730

	Energy Equipment & Services (2.0%):
	19,486	Atwood Oceanics, Inc.*		552,818
	6,375	CARBO Ceramics, Inc.^		255,319
	24,931	Dresser-Rand Group, Inc.*		2,039,355
	12,834	Dril-Quip, Inc.*		984,753
	31,947	Helix Energy Solutions Group, Inc.*		693,250
	34,144	Oceaneering International, Inc.		2,008,009
	17,289	Oil States International, Inc.*		845,432
	47,651	Patterson-UTI Energy, Inc.		790,530
	40,526	Rowan Cos. plc, Class A		945,066
	49,478	Superior Energy Services, Inc.		996,982
	16,192	Tidewater, Inc.^		524,783
	15,012	Unit Corp.*		511,909

				11,148,206

	Food & Staples Retailing (0.3%):
	67,148	Supervalu, Inc.*		651,336
	16,230	United Natural Foods, Inc.*^		1,254,984

				1,906,320

	Food Products (1.8%):
	30,544	Dean Foods Co.^		591,943
	60,103	Flowers Foods, Inc.		1,153,377
	32,826	Hain Celestial Group, Inc.*^		1,913,428
	23,366	Ingredion, Inc.		1,982,370
	6,320	Lancaster Colony Corp.		591,805
	14,603	Post Holdings, Inc.*^		611,720
	6,491	Tootsie Roll Industries, Inc.^		198,949
	13,771	TreeHouse Foods, Inc.*		1,177,834
	56,712	WhiteWave Foods Co., Class A*		1,984,352

				10,205,778

	Gas Utilities (1.6%):
	32,655	Atmos Energy Corp.		1,820,190
	27,384	National Fuel Gas Co.^		1,904,010
	16,942	ONE Gas, Inc.^		698,349
	56,237	Questar Corp.		1,421,671
	56,082	UGI Corp.		2,129,994
	16,163	WGL Holdings, Inc.		882,823

				8,857,037

	Health Care Equipment & Supplies (3.1%):
	23,495	Align Technology, Inc.*		1,313,605
	15,703	Cooper Cos., Inc. (The)		2,545,300
	15,149	Halyard Health, Inc.*		688,825
	18,717	Hill-Rom Holdings, Inc.		853,870
	78,854	Hologic, Inc.*		2,108,556
	15,508	IDEXX Laboratories, Inc.*^		2,299,371
	45,340	ResMed, Inc.		2,541,761


Shares			Fair Value
	Common Stocks, continued
	Health Care Equipment & Supplies, continued
	18,012	Sirona Dental Systems, Inc.*	$	1,573,708
	19,331	STERIS Corp.^		1,253,615
	13,472	Teleflex, Inc.^		1,546,855
	17,883	Thoratec Corp.*		580,482

				17,305,948

	Health Care Providers & Services (3.3%):
	19,083	Centene Corp.*		1,981,770
	37,822	Community Health Systems, Inc.*		2,039,362
	25,335	Health Net, Inc.*		1,356,183
	27,382	Henry Schein, Inc.*		3,728,059
	28,577	HMS Holdings Corp.*^		604,118
	14,730	LifePoint Hospitals, Inc.*		1,059,234
	32,660	MEDNAX, Inc.*		2,159,153
	31,836	Omnicare, Inc.^		2,321,799
	20,531	Owens & Minor, Inc.^		720,843
	27,353	VCA Antech, Inc.*		1,334,006
	14,276	WellCare Health Plans, Inc.*		1,171,489

				18,476,016

	Health Care Technology (0.1%):
	55,151	Allscripts Healthcare Solutions, Inc.*		704,278

	Hotels, Restaurants & Leisure (1.5%):
	20,665	Brinker International, Inc.		1,212,829
	14,980	Cheesecake Factory, Inc. (The)^		753,644
	17,892	Domino’s Pizza, Inc.		1,684,890
	80,481	International Game Technology		1,388,297
	9,121	International Speedway Corp., Class A		288,680
	11,716	Life Time Fitness, Inc.*^		663,360
	8,333	Panera Bread Co., Class A*^		1,456,608
	89,073	Wendy’s Co. (The)		804,329

				8,252,637

	Household Durables (1.7%):
	58,187	Jarden Corp.*		2,785,994
	29,650	KB Home^		490,708
	12,732	M.D.C. Holdings, Inc.^		337,016
	1,265	NVR, Inc.*		1,613,292
	19,818	Tempur-Pedic International, Inc.*		1,088,206
	52,663	Toll Brothers, Inc.*		1,804,761
	16,389	Tupperware Brands Corp.^		1,032,507

				9,152,484

	Household Products (1.1%):
	43,505	Church & Dwight Co., Inc.		3,428,629
	20,196	Energizer Holdings, Inc.		2,596,398

				6,025,027

	Industrial Conglomerates (0.3%):
	20,871	Carlisle Cos., Inc.		1,883,399

	Insurance (4.6%):
	5,237	Alleghany Corp.*		2,427,350
	23,999	American Financial Group, Inc.		1,457,219
	52,485	Arthur J. Gallagher & Co.		2,470,994


Shares			Fair Value
	Common Stocks, continued
	Insurance, continued
	20,235	Aspen Insurance Holdings, Ltd.	$	885,686
	38,330	Brown & Brown, Inc.		1,261,440
	14,712	Everest Re Group, Ltd.		2,505,454
	34,898	First American Financial Corp.^		1,183,042
	14,326	Hanover Insurance Group, Inc. (The)		1,021,730
	31,474	HCC Insurance Holdings, Inc.		1,684,488
	16,288	Kemper Corp.		588,160
	9,895	Mercury General Corp.		560,750
	78,937	Old Republic International Corp.		1,154,848
	17,278	Primerica, Inc.		937,504
	25,651	Protective Life Corp.		1,786,592
	22,344	Reinsurance Group of America, Inc.		1,957,781
	12,528	RenaissanceRe Holdings, Ltd.		1,217,972
	13,669	StanCorp Financial Group, Inc.		954,916
	33,011	W.R. Berkley Corp.		1,692,144

				25,748,070

	Internet & Catalog Retail (0.1%):
	10,566	HSN, Inc.		803,016

	Internet Software & Services (1.3%):
	25,324	AOL, Inc.*		1,169,209
	17,822	Equinix, Inc.		4,040,783
	38,756	Rackspace Hosting, Inc.*^		1,814,168

				7,024,160

	IT Services (2.8%):
	25,055	Acxiom Corp.*		507,865
	39,038	Broadridge Financial Solutions, Inc.		1,802,775
	32,627	Convergys Corp.^		664,612
	29,178	CoreLogic, Inc.*		921,733
	9,528	DST Systems, Inc.		897,061
	28,622	Gartner, Inc.*		2,410,259
	21,992	Global Payments, Inc.		1,775,414
	26,589	Jack Henry & Associates, Inc.		1,652,240
	20,245	Leidos Holdings, Inc.		881,062
	17,152	NeuStar, Inc., Class A*^		476,826
	13,162	Science Applications International Corp.		651,914
	36,780	VeriFone Systems, Inc.*		1,368,216
	12,612	Wex, Inc.*		1,247,579

				15,257,556

	Leisure Products (0.8%):
	30,238	Brunswick Corp.		1,550,000
	19,866	Polaris Industries, Inc.^		3,004,534

				4,554,534

	Life Sciences Tools & Services (1.4%):
	6,691	Bio-Rad Laboratories, Inc., Class A*		806,667
	12,063	Bio-Techne Corp.		1,114,621
	15,267	Charles River Laboratories International, Inc.*		971,592
	18,405	Covance, Inc.*		1,911,175
	9,282	Mettler-Toledo International, Inc.*		2,807,434

				7,611,489


Shares			Fair Value
	Common Stocks, continued
	Machinery (4.5%):
	27,215	AGCO Corp.^	$	1,230,118
	16,298	CLARCOR, Inc.^		1,086,099
	16,122	Crane Co.		946,361
	41,520	Donaldson Co., Inc.^		1,603,918
	19,336	Graco, Inc.		1,550,360
	26,316	Harsco Corp.		497,109
	25,816	IDEX Corp.		2,009,518
	29,801	ITT Corp.		1,205,748
	25,741	Kennametal, Inc.		921,270
	25,257	Lincoln Electric Holdings, Inc.		1,745,006
	19,089	Nordson Corp.		1,488,178
	25,963	Oshkosh Corp.		1,263,100
	13,354	SPX Corp.		1,147,376
	35,246	Terex Corp.		982,658
	24,222	Timken Co.		1,033,795
	50,637	Trinity Industries, Inc.		1,418,342
	8,006	Valmont Industries, Inc.^		1,016,762
	31,305	Wabtec Corp.		2,720,092
	18,994	Woodward, Inc.		935,075

				24,800,885

	Marine (0.4%):
	14,762	Alexander & Baldwin, Inc.		579,556
	18,560	Kirby Corp.*		1,498,535

				2,078,091

	Media (1.5%):
	19,237	AMC Networks, Inc., Class A*		1,226,743
	33,879	Cinemark Holdings, Inc.		1,205,415
	23,585	DreamWorks Animation SKG, Inc., Class A*^		526,653
	15,267	John Wiley & Sons, Inc., Class A		904,417
	25,958	Lamar Advertising Co., Class A^		1,392,388
	47,002	Live Nation, Inc.*		1,227,223
	11,864	Meredith Corp.^		644,452
	42,570	New York Times Co. (The), Class A^		562,775
	35,479	Time, Inc.		873,138

				8,563,204

	Metals & Mining (1.7%):
	17,325	Carpenter Technology Corp.^		853,256
	49,910	Cliffs Natural Resources, Inc.^		356,357
	38,462	Commercial Metals Co.		626,546
	10,929	Compass Minerals International, Inc.		948,965
	25,398	Reliance Steel & Aluminum Co.		1,556,136
	21,209	Royal Gold, Inc.		1,329,804
	78,205	Steel Dynamics, Inc.		1,543,767
	12,486	TimkenSteel Corp.		462,357
	47,328	United States Steel Corp.^		1,265,551
	16,502	Worthington Industries, Inc.		496,545

				9,439,284

	Multiline Retail (0.2%):
	17,380	Big Lots, Inc.		695,548
	99,228	J.C. Penney Co., Inc.*^		642,997

				1,338,545


Shares			Fair Value
	Common Stocks, continued
	Multi-Utilities (1.1%):
	36,081	Alliant Energy Corp.	$	2,396,500
	14,533	Black Hills Corp.		770,830
	63,144	MDU Resources Group, Inc.		1,483,884
	26,852	Vectren Corp.		1,241,368

				5,892,582

	Oil, Gas & Consumable Fuels (1.9%):
	99,278	California Resources Corp.*		547,022
	23,814	Energen Corp.		1,518,381
	27,828	Gulfport Energy Corp.*		1,161,541
	63,643	HollyFrontier Corp.		2,385,340
	88,347	Peabody Energy Corp.^		683,806
	20,030	Rosetta Resources, Inc.*		446,869
	21,938	SM Energy Co.^		846,368
	23,727	Western Refining, Inc.		896,406
	23,427	World Fuel Services Corp.^		1,099,429
	66,188	WPX Energy, Inc.*^		769,766

				10,354,928

	Paper & Forest Products (0.3%):
	20,962	Domtar Corp.		843,092
	46,283	Louisiana-Pacific Corp.*^		766,446

				1,609,538

	Pharmaceuticals (1.1%):
	49,989	Endo International plc*		3,605,207
	20,725	Salix Pharmaceuticals, Ltd.*^		2,382,132

				5,987,339

	Professional Services (1.0%):
	10,932	Corporate Executive Board Co. (The)		792,898
	13,358	FTI Consulting, Inc.*		516,020
	25,732	Manpower, Inc.		1,754,150
	22,739	Towers Watson & Co., Class A		2,573,373

				5,636,441

	Real Estate Investment Trusts (REITs) (9.2%):
	23,421	Alexandria Real Estate Equities, Inc.		2,078,380
	34,196	American Campus Communities, Inc.		1,414,347
	64,230	BioMed Realty Trust, Inc.		1,383,514
	28,101	Camden Property Trust		2,074,978
	30,108	Corporate Office Properties Trust		854,164
	111,142	Duke Realty Corp.		2,245,068
	24,990	Equity One, Inc.		633,746
	35,945	Extra Space Storage, Inc.		2,107,815
	22,158	Federal Realty Investment Trust		2,957,207
	29,692	Highwoods Properties, Inc.^		1,314,762
	18,663	Home Properties, Inc.		1,224,293
	48,739	Hospitality Properties Trust		1,510,909
	27,308	Kilroy Realty Corp.		1,886,164
	36,325	LaSalle Hotel Properties		1,470,073
	48,318	Liberty Property Trust		1,818,206
	27,249	Mack-Cali Realty Corp.		519,366
	24,478	Mid-America Apartment Communities, Inc.		1,828,017
	42,901	National Retail Properties, Inc.^		1,689,012


Shares			Fair Value
	Common Stocks, continued
	Real Estate Investment Trusts, continued
	41,450	Omega Healthcare Investors, Inc.^	$	1,619,452
	13,216	Potlatch Corp.		553,354
	41,231	Rayonier, Inc.		1,151,994
	72,420	Realty Income Corp.^		3,455,157
	30,329	Regency Centers Corp.		1,934,384
	66,292	Senior Housing Properties Trust		1,465,716
	31,382	SL Green Realty Corp.		3,735,085
	31,200	Tanger Factory Outlet Centers, Inc.		1,153,152
	20,522	Taubman Centers, Inc.		1,568,291
	83,005	UDR, Inc.		2,558,214
	50,492	Washington Prime Group, Inc.^		869,472
	36,597	Weingarten Realty Investors^		1,277,967

				50,352,259

	Real Estate Management & Development (0.4%):
	14,578	Jones Lang LaSalle, Inc.		2,185,680

	Road & Rail (1.5%):
	18,847	Con-way, Inc.		926,895
	16,651	Genesee & Wyoming, Inc., Class A*		1,497,258
	30,101	J.B. Hunt Transport Services, Inc.^		2,536,010
	14,555	Landstar System, Inc.		1,055,674
	22,142	Old Dominion Freight Line, Inc.*		1,719,105
	14,509	Werner Enterprises, Inc.^		451,955

				8,186,897

	Semiconductors & Semiconductor Equipment (3.4%):
	204,470	Advanced Micro Devices, Inc.*^		545,935
	135,756	Atmel Corp.*		1,139,672
	38,837	Cree, Inc.*^		1,251,328
	48,280	Cypress Semiconductor Corp.^		689,438
	38,618	Fairchild Semiconductor International, Inc.*		651,872
	48,368	Integrated Device Technology, Inc.*		948,013
	23,276	International Rectifier Corp.*		928,712
	42,161	Intersil Corp., Class A		610,070
	189,849	RF Micro Devices, Inc.*		3,149,595
	21,704	Semtech Corp.*		598,379
	12,815	Silicon Laboratories, Inc.*		610,250
	62,000	Skyworks Solutions, Inc.		4,508,021
	81,973	SunEdison, Inc.*^		1,599,293
	70,428	Teradyne, Inc.		1,393,770

				18,624,348

	Software (4.2%):
	37,406	ACI Worldwide, Inc.*^		754,479
	14,480	Advent Software, Inc.		443,667
	29,892	Ansys, Inc.*		2,451,143
	95,215	Cadence Design Systems, Inc.*^		1,806,229
	52,246	CDK Global, Inc.		2,129,547
	14,001	CommVault Systems, Inc.*		723,712
	12,624	FactSet Research Systems, Inc.^		1,776,828
	10,449	Fair Isaac Corp.		755,463
	45,050	Fortinet, Inc.*		1,381,233
	35,334	Informatica Corp.*		1,347,462


Shares			Fair Value
	Common Stocks, continued
	Software, continued
	31,844	Mentor Graphics Corp.	$	698,020
	37,715	PTC, Inc.*		1,382,255
	30,834	Rovi Corp.*		696,540
	21,410	Solarwinds, Inc.*		1,066,860
	22,184	Solera Holdings, Inc.		1,135,377
	50,682	Synopsys, Inc.*		2,203,147
	10,747	Tyler Technologies, Inc.*		1,176,152
	9,230	Ultimate Software Group, Inc. (The)*		1,355,102

				23,283,216

	Specialty Retail (4.1%):
	20,997	Aaron’s, Inc.		641,878
	23,230	Abercrombie & Fitch Co., Class A^		665,307
	23,739	Advance Auto Parts, Inc.		3,781,149
	56,966	American Eagle Outfitters, Inc.^		790,688
	14,882	Ann, Inc.*		542,895
	42,880	Ascena Retail Group, Inc.*		538,573
	15,500	Cabela’s, Inc., Class A*^		817,005
	49,769	Chico’s FAS, Inc.		806,755
	25,268	CST Brands, Inc.		1,101,937
	31,899	Dick’s Sporting Goods, Inc.		1,583,785
	46,199	Foot Locker, Inc.		2,595,461
	20,818	Guess?, Inc.		438,843
	13,987	Murphy USA, Inc.*		963,145
	157,703	Office Depot, Inc.*		1,352,303
	17,222	Rent-A-Center, Inc.		625,503
	26,075	Signet Jewelers, Ltd.		3,430,688
	27,846	Williams-Sonoma, Inc.		2,107,386

				22,783,301

	Technology Hardware, Storage & Peripherals (1.0%):
	34,015	3D Systems Corp.*^		1,118,073
	21,034	Diebold, Inc.^		728,618
	20,092	Lexmark International, Inc., Class A^		829,197
	54,780	NCR Corp.*		1,596,289
	16,566	Zebra Technologies Corp., Class A*		1,282,374

				5,554,551

	Textiles, Apparel & Luxury Goods (1.3%):
	17,202	Carter’s, Inc.		1,501,907
	11,269	Deckers Outdoor Corp.*^		1,025,930
	32,486	Hanesbrands, Inc.		3,626,086
	41,353	Kate Spade & Co.*		1,323,710

				7,477,633

	Thrifts & Mortgage Finance (0.6%):
	28,607	Astoria Financial Corp.		382,190
	143,969	New York Community Bancorp, Inc.^		2,303,504
	31,923	Washington Federal, Inc.^		707,094

				3,392,788

	Trading Companies & Distributors (0.7%):
	14,371	GATX Corp.^		826,907
	16,425	MSC Industrial Direct Co., Inc., Class A^		1,334,532


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Trading Companies & Distributors, continued
	34,840	NOW, Inc.*^	$	896,433
	8,881	Watsco, Inc.		950,267

				4,008,139

	Water Utilities (0.3%):
	57,423	Aqua America, Inc.		1,533,194

	Wireless Telecommunication Services (0.1%):
	31,927	Telephone & Data Systems, Inc.		806,157

	Total Common Stocks (Cost $380,356,474)			531,249,746

	Securities Held as Collateral for Securities on Loan (13.6%):
	$75,634,895	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		75,634,895

	Total Securities Held as Collateral for Securities on Loan (Cost $75,634,895)			75,634,895

Cash of $1,240,000 has been segregated to cover margin requirements for the following open contracts as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	480,080,793

Investment securities, at value*	$	630,974,065
Segregated cash for collateral		1,240,000
Interest and dividends receivable		496,324
Receivable for capital shares issued		66,340
Receivable for variation margin on futures contracts		22,302
Prepaid expenses		4,588

Total Assets		632,803,619

Liabilities:
Cash overdraft		14,329
Payable for investments purchased		1,580,584
Payable for capital shares redeemed		468,292
Payable for collateral received on loaned securities		75,634,895
Payable for variation margin on futures contracts		329,120
Manager fees payable		116,990
Administration fees payable		12,832
Distribution fees payable		116,990
Custodian fees payable		4,546
Administrative and compliance services fees payable		1,564
Trustee fees payable		31
Other accrued liabilities		83,869

Total Liabilities		78,364,042

Net Assets	$	554,439,577

Net Assets Consist of:
Capital	$	375,573,110
Accumulated net investment income/(loss)		4,560,046
Accumulated net realized gains/(losses) from investment transactions		22,794,268
Net unrealized appreciation/(depreciation) on investments		151,512,153

Net Assets	$	554,439,577

Shares of beneficial interest (unlimited number of shares authorized, no par value)		23,602,090
Net Asset Value (offering and redemption price per share)	$	23.49

*	Includes securities on loan of $73,253,598.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	7,231,419
Income from securities lending		317,498

Total Investment Income		7,548,917

Expenses:
Manager fees		1,303,874
Administration fees		142,973
Distribution fees		1,303,874
Custodian fees		20,397
Administrative and compliance services fees		6,914
Trustee fees		26,388
Professional fees		29,358
Shareholder reports		16,647
Other expenses		113,168

Total expenses		2,963,593

Net Investment Income/(Loss)		4,585,324

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		22,711,018
Net realized gains/(losses) on futures contracts		1,558,577
Change in net unrealized appreciation/depreciation on investments		17,590,975

Net Realized/Unrealized Gains/(Losses) on Investments		41,860,570

Change in Net Assets Resulting From Operations	$	46,445,894

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Mid Cap Index Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $31,427 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide equity exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $23.8 million as of December 31, 2014. The monthly average notional amount for these contracts was $20.1 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $6,421 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $482,604,745. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Mid Cap Index Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 62.32% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $15,392,626.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $3,202,367.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Years
AZL^® Money Market Fund		0.01	%		0.00	%		0.00	%		1.43	%
Three-Month U.S. Treasury Bill Index		0.03	%		0.06	%		0.08	%		1.43	%


Expense Ratio	Gross
AZL^® Money Market Fund		0.65	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 0.87% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

Yield as of December 31, 2014


	7 Day Average			7 Day Effective			30 Day Average
AZL^® Money Market Fund		0.00	%		0.00	%		0.00	%

The Manager has voluntarily undertaken to waive, reimburse, or pay the Fund’s expenses to the extent necessary in order to maintain a minimum daily net investment income for the Fund of 0.00%. The Distributor may waive its Rule 12b-1 fees. The amount waived, reimbursed, or paid by the Manager and/or the Distributor will be repaid to the Manager and/or the Distributor subject to certain limitations as further described in Note 3 to the Financial Statements. The ability of the Manager and/or Distributor to receive such payments could negatively affect the Fund’s future yield.

The 7-day yield quotation is as of December 31, 2014 and more closely reflects the current earnings of the Fund than the total return quotation.

The Fund’s performance is measured against the Three-Month U.S. Treasury Bill Index. The Treasury Bill Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Money Market Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Principal Amount			Fair Value
	Certificates of Deposit (34.7%):
	Banks (33.6%)
$	8,000,000	Bank of Montreal Chicago, 0.24%, 5/29/15	$	8,000,000
	8,000,000	Bank of Montreal Chicago, 0.24%, 7/16/15(a)		8,000,000
	7,000,000	Bank of Montreal Chicago, 0.24%, 4/9/15(a)		7,000,000
	5,000,000	Bank of Nova Scotia, 0.68%, 9/11/15(a)		5,014,203
	8,000,000	Bank of Nova Scotia, 0.26%, 6/24/15(a)		8,000,000
	19,000,000	Bank of Tokyo-Mitsubishi UFJ, NY, 1.00%, 3/27/15(a)		19,032,119
	5,000,000	BNP Paribas, NY, 0.30%, 2/4/15		5,000,000
	6,750,000	Canadian Imperial Bank of Commerce, 0.34%, 6/1/15(a)		6,750,000
	14,000,000	Citibank NA, 0.25%, 2/6/15		14,000,000
	10,000,000	Citibank NA, 0.25%, 5/11/15		10,000,000
	10,000,000	Credit Agricole CIB, NY, 0.26%, 3/2/15		10,000,000
	12,000,000	National Australia Bank, Ltd., 0.23%, 7/10/15(a)		12,000,000
	5,000,000	National Bank of Canada, NY, 0.26%, 7/20/15(a)		5,000,000
	8,000,000	National Bank of Canada, NY, 0.30%, 10/23/15(a)		8,000,000
	3,000,000	Natixis, NY, 0.25%, 2/2/15		3,000,000
	11,000,000	Rabobank Nederland NV, NY, 0.28%, 9/16/15(a)		11,000,000
	7,000,000	Rabobank Nederland NV, NY, 0.35%, 1/12/15		7,000,000
	8,000,000	Rabobank Nederland NV, NY, 0.28%, 5/6/15(a)		8,000,000
	8,000,000	Skandinav Enskilda Bank, NY, 0.25%, 3/3/15		8,000,000
	8,000,000	Skandinav Enskilda Bank, NY, 0.25%, 2/6/15		8,000,000
	5,000,000	Societe Generale, NY, 0.25%, 2/2/15		5,000,000
	3,000,000	State Street Bank & Trust Co., 0.28%, 10/23/15(a)		3,000,000
	10,000,000	State Street Bank & Trust Co., 0.28%, 10/1/15(a)		10,000,000
	4,500,000	Sumitomo Mitsui Bank, NY, 0.25%, 3/17/15		4,500,000
	15,000,000	Sumitomo Mitsui Bank, NY, 0.25%, 2/6/15		15,000,000
	7,000,000	Sumitomo Trust & Banking Co., Ltd., 0.27%, 4/15/15		7,000,000
	12,000,000	Toronto Dominion Bank, NY, 0.25%, 10/6/15(a)		12,000,000
	8,000,000	Toronto Dominion Bank, NY, 0.30%, 7/15/15		7,999,994

				235,296,316

	Diversified Financial Services (1.1%)
	5,000,000	Credit Industriel Et Commercial, NY, 0.30%, 4/8/15		5,000,000
	3,000,000	Credit Industriel Et Commercial, NY, 0.30%, 1/8/15		3,000,000

				8,000,000

	Total Certificates of Deposit (Cost $243,296,316)			243,296,316

	Commercial Paper (55.6%):
	Banks (13.7%)
	20,000,000	Commonwealth Bank of Australia, 0.24%, 5/18/15(a)(b)		20,000,525
	7,000,000	Commonwealth Bank of Australia, 0.25%, 5/15/15(a)(b)		7,000,000
	10,000,000	DNB Bank ASA, 0.23%, 4/28/15(b)(c)		9,992,525
	8,000,000	DNB Bank ASA, 0.22%, 1/20/15(b)(c)		7,999,071
	7,000,000	HSBC Bank plc, 0.26%, 10/23/15(a)(b)		7,000,000
	9,000,000	Macquarie Bank, Ltd., 0.32%, 2/19/15(b)(c)		8,996,080
	25,000,000	Natixis, NY, 0.10%, 1/2/15(c)		24,999,931


Principal Amount			Fair Value
	Commercial Paper, continued
	Banks, continued
$	10,000,000	Westpac Banking Corp., NY, 0.24%, 4/17/15(a)(b)	$	10,000,000

				95,988,132

	Diversified Financial Services (41.9%)
	10,000,000	Antalis US Funding Corp., 0.23%, 1/6/15(b)(c)		9,999,681
	5,000,000	Bedford Row Funding Corp., 0.29%, 11/20/15(a)(b)		5,000,000
	10,000,000	Bedford Row Funding Corp., 0.28%, 1/28/15(b)(c)		9,997,900
	12,000,000	CAFCO LLC, 0.25%, 2/2/15(c)		11,997,333
	30,000,000	Caisse Centrale Desjardins du Quebec, 0.13%, 1/5/15(b)(c)		29,999,568
	13,000,000	Chariot Funding LLC, 0.26%, 8/13/15(b)(c)		12,978,969
	12,000,000	Charta LLC, 0.25%, 2/6/15(c)		11,997,000
	8,466,000	Charta LLC, 0.25%, 5/12/15(c)		8,458,298
	8,000,000	Collateralized CP Co. LLC, 0.30%, 3/9/15(c)		7,995,533
	10,000,000	Collateralized CP Co. LLC, 0.30%, 3/16/15(c)		9,993,833
	7,000,000	Collateralized CP Co. LLC, 0.30%, 2/2/15(c)		6,998,133
	9,000,000	CRC Funding LLC, 0.25%, 2/4/15(c)		8,997,875
	9,000,000	General Electric Capital Corp., 0.22%, 6/4/15(c)		8,991,530
	10,000,000	General Electric Capital Corp., 0.20%, 2/2/15(c)		9,998,222
	12,000,000	Gotham Funding Corp., 0.11%, 1/2/15(b)(c)		11,999,963
	9,000,000	ING (US) Funding LLC, 0.24%, 1/16/15(c)		8,999,100
	10,000,000	Kells Funding LLC, 0.24%, 9/22/15(a)		9,999,217
	10,000,000	Kells Funding LLC, 0.24%, 2/13/15(a)		10,000,066
	15,000,000	LMA Americas LLC, 0.11%, 1/2/15(b)(c)		14,999,954
	15,000,000	Nederlandse Waterschapsbank NV, 0.24%, 10/1/15(a)(b)		15,000,000
	11,960,000	Nieuw Amsterdam Receivables Corp., 0.10%, 1/2/15(b)(c)		11,959,967
	3,000,000	Old Line Funding LLC, 0.22%, 3/6/15(b)(c)		2,998,827
	32,000,000	Victory Receivables Corp., 0.11%, 1/2/15(b)(c)		31,999,903
	21,280,000	Working Capital Management, 0.13%, 1/6/15(b)(c)		21,279,616

				292,640,488

	Total Commercial Paper (Cost $388,628,620)			388,628,620

	Corporate Bond (1.1%):
	Hotels, Restaurants & Leisure (1.1%)
	8,000,000	Jets Stadium Development LLC, Series A-4C, 0.09%, 4/1/47, Callable 3/4/15 @ 100.00(a)(d)		8,000,000

	Total Corporate Bond (Cost $8,000,000)			8,000,000

	Municipal Bonds (6.3%):
	California (2.6%):
	600,000	California Housing Finance Agency Revenue, Series E-1, 0.03%, 2/1/23, LOC: Freddie Mac, Fannie Mae, AMT(a)		600,000
	8,500,000	Los Angeles Community Redevelopment Agency Multi-Family Housing Revenue, Series A, 0.06%, 4/15/42, LIQ FAC: Fannie Mae, AMT(a)		8,500,000
	9,300,000	San Francisco City & County Redevelopment Agency Multi-Family Housing Revenue, Series A, 0.05%, 6/15/35, LIQ FAC: Fannie Mae(a)		9,300,000

				18,400,000


Principal Amount			Fair Value
	U.S. Treasury Obligation (1.4%):
	U.S. Treasury Notes (1.4%)
$	10,000,000	0.11%, 4/30/16(a)	$	10,000,000

	Total U.S. Treasury Obligation (Cost $10,000,000)			10,000,000

	Yankee Dollar (0.9%):
	Banks (0.9%)
	6,100,000	Svenska Handelsbanken AB, 0.31%, 8/15/14(a)		6,100,000

	Total Yankee Dollar (Cost $6,100,000)			6,100,000

	Total Investment Securities (Cost $700,324,936)(e) — 100.0%			700,324,936
	Net other assets (liabilities) — 0.0%			9,838

	Net Assets — 100.0%		$	700,334,774

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	700,324,936

Investment securities, at value	$	700,324,936
Cash		670
Interest receivable		162,545
Receivable from Manager		45,908
Prepaid expenses		6,075

Total Assets		700,540,134

Liabilities:
Administration fees payable		16,295
Distribution fees payable		147,690
Custodian fees payable		5,771
Administrative and compliance services fees payable		2,071
Trustee fees payable		41
Other accrued liabilities		33,492

Total Liabilities		205,360

Net Assets	$	700,334,774

Net Assets Consist of:
Capital	$	700,287,255
Accumulated net realized gains/(losses) from investment transactions		47,519

Net Assets	$	700,334,774

Shares of beneficial interest (unlimited number of shares authorized, no par value)		700,287,897
Net Asset Value (offering and redemption price per share)	$	1.00

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Interest	$	1,502,727

Total Investment Income		1,502,727

Expenses:
Manager fees		2,608,403
Administration fees		201,836
Distribution fees		1,863,149
Custodian fees		22,257
Administrative and compliance services fees		9,086
Trustee fees		36,493
Professional fees		37,977
Shareholder reports		27,944
Other expenses		19,349

Total expenses before reductions		4,826,494
Less expenses voluntarily waived/reimbursed by the Manager		(3,323,767	)

Net expenses		1,502,727

Net Investment Income/(Loss)		—

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		48,636

Net Realized/Unrealized Gains/(Losses) on Investments		48,636

Change in Net Assets Resulting From Operations	$	48,636

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Money Market Fund (the “Fund”), and 30 are presented in separate reports.

The Fund records its investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. The valuation techniques used to determine fair value are further described in Note 4 below. Investments of the Fund are valued, in accordance with Rule 2a-7 of the 1940 Act, at amortized cost, which approximates fair value. Under the amortized cost method, discounts or premiums are amortized on a constant basis to the maturity of the security.

Dividends from net investment income are declared daily and paid monthly from the Fund. The net realized gains, if any, are declared and paid at least annually by the Fund. The amount of dividends from net investment income and from net realized gains is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These “book/tax” differences are either temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital, net operating loss, reclassification of certain market discounts, gain/loss, paydowns, and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales and post October losses) do not require reclassification. Dividends to shareholders that exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.

On July 23, 2014, the SEC approved significant reforms to the regulations governing money market funds under the 1940 Act. The rulemaking is designed to address money market funds’ susceptibility to heavy redemptions during periods of market stress, improve their ability to manage and mitigate potential contagion from such redemptions and increase the transparency of their risks, while preserving their benefits as much as possible. The new rules, with compliance dates ranging from nine months to two years from the effective date, will replace much of the current Rule 2a-7 under the Investment Company Act of 1940 and add new Rule 30b1-8 (“Form N-CR”). Additionally, Forms N-MFP and PF, along with the instructions to Form N-1A, have been revised as part of this reform.

At this time, there are no changes being made to the way the AZL Money Market Fund is managed or the way it operates, as the rules have a lengthy implementation period. Management of the Fund is reviewing and assessing the effect of the new rules. Additional information regarding the money market mutual fund regulatory changes may be found at the SEC’s website, www.sec.gov.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Advisors, LLC (“BlackRock Advisors”), BlackRock Advisors provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to

a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

The Manager has voluntarily agreed to waive, reimburse, or pay Fund expenses to the extent necessary in order to maintain a minimum daily net investment income for the Fund of 0.00%. The Distributor may waive its Rule 12b-1 fees. The amount waived, reimbursed, or paid by the Manager and/or the Distributor will be repaid to the Manager and/or the Distributor subject to the following limitations:

1. The repayments will not cause the Fund’s net investment income to fall below 0.00%.

2. The repayments must be made no later than three years after the end of the fiscal year in which the waiver, reimbursement, or payment took place.

3. Any expense recovery paid by the Fund will not cause its expense ratio to exceed 0.87%.

The ability of the Manager and/or Distributor to receive such payments could negatively affect the Fund’s future yield. Amounts waived under this agreement during the year ended December 31, 2014 are reflected on the Statement of Operations as “Expenses voluntarily waived/reimbursed by the Manager.”

Any amounts waived or reimbursed by the Manager in a particular fiscal year will be subject to repayment by the Fund to the Manager to the extent that from time to time through the next three fiscal years the repayment will not cause the Fund’s expenses to exceed the lesser of the stated limit at the time of the waiver or the current stated limit. Any amounts recouped by the Manager during the year are reflected on the Statement of Operations as “Recoupment of prior expenses reimbursed by the Manager.”

At December 31, 2014, the reimbursements that are subject to repayment by the Fund in subsequent years were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $9,557 was paid from the Fund relating to these fees and expenses.

During the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

The Shareholders and Board of Trustees of Allianz Variable Insurance Products Trust:

We have audited the accompanying statement of assets and liabilities of AZL Money Market Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $3,156.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $54,425.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/ General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Morgan Stanley Global Real Estate Fund returned 13.77%. That compared to a 15.89% return for its benchmark, the FTSE EPRA/NAREIT Developed Real Estate Index^1.

The global real estate securities market experienced strong gains during the period under review. Each of the major regions gained and outperformed their respective broader equity markets for the period. Real estate share prices continued to be influenced by strong investor demand for core assets, as well as investors’ continuing search for yield. Share prices also fluctuated alongside renewed downward pressure on yields for high-quality assets, due in part to lower sovereign debt yields. The U.S. real estate market posted the best returns of any region, due to significant transaction activity demonstrating improved private market values, strong operating fundamentals, lower interest rates and the strength of the U.S. dollar.

The Fund is composed of three regional portfolios (United States, Europe and Asia) with a top-down global allocation that weights each of the three major regions relative to the benchmark index based on our view of the relative attractiveness of each region in terms of underlying real estate fundamentals and public market valuations. This top-down global allocation detracted from the Fund’s relative performance due to its overweight to Asia and underweight to the U.S. during the period.*

The Asian regional portfolio detracted from relative performance primarily because of stock selection in Japan. However, this negative impact was partially offset by an overweight position in Hong Kong.*

Fund Objective

The Fund’s investment objective is to seek to provide income and capital appreciation. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of the Fund’s assets, plus any borrowings for investment purposes, will be invested in equity securities of companies in the real estate industry, including REOCs, REITs, and foreign real estate companies.

Investment Concerns

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (5/1/06)
AZL^® Morgan Stanley Global Real Estate Fund		13.77	%		15.03	%		10.62	%		3.94	%
FTSE EPRA/NAREIT Developed Real Estate Index (gross of withholding taxes)		15.89	%		15.89	%		12.03	%		4.75	%
FTSE EPRA/NAREIT Developed Real Estate Index (net of withholding taxes)		15.02	%		15.06	%		11.25	%		4.04	%


Expense Ratio	Gross
AZL^® Morgan Stanley Global Real Estate Fund		1.29	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.35% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Financial Times London Stock Exchange (“FTSE”) European Public Real Estate Association (“EPRA”)/NAREIT Developed Real Estate Index series, which is designed to represent general trends in eligible real estate stocks worldwide. Relevant real estate activities are defined as the ownership, disposure and development of income-producing real estate. The Index noted as “gross of withholding taxes” does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Index noted as “net of withholding taxes” reflects the reinvestment of dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Morgan Stanley Global Real Estate Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (99.4%):
	Diversified Real Estate Activities (16.0%):
	638,000	CapitaLand, Ltd.	$	1,585,589
	56,000	City Developments, Ltd.		432,477
	171,000	Hang Lung Properties, Ltd.		476,610
	106,185	Henderson Land Development Co., Ltd.		737,156
	118,303	Kerry Properties, Ltd.		427,456
	277,000	Mitsubishi Estate Co., Ltd.		5,863,505
	210,000	Mitsui Fudosan Co., Ltd.		5,649,002
	244	Mobimo Holding AG, Registered Shares^		48,901
	868,981	New World Development Co., Ltd.^		994,072
	99,000	Sumitomo Realty & Development Co., Ltd.		3,373,043
	475,544	Sun Hung Kai Properties, Ltd.		7,191,682
	75,000	Tokyo Tatemono Co., Ltd.		546,290
	111,340	UOL Group, Ltd.		584,447
	292,035	Wharf Holdings, Ltd. (The)		2,097,404

				30,007,634

	Diversified REITs (12.1%):
	95	Activia Properties, Inc.		826,394
	201,356	British Land Co. plc		2,418,609
	77,099	Cousins Properties, Inc.		880,471
	21,302	Crombie REIT		236,954
	72,547	Dexus Property Group		410,133
	31,121	Duke Realty Corp.		628,644
	3,615	Fonciere des Regions SA		334,474
	5,023	Gecina SA		628,596
	281,843	GPT Group		995,498
	43,700	Green REIT plc*		67,820
	124,584	Hibernia REIT plc*		163,124
	134	Hulic REIT, Inc.		202,648
	6,623	ICADE		530,268
	15	Kenedix Office Investment Corp.		84,221
	132,801	Land Securities Group plc		2,376,031
	773	Lexington Realty Trust^		8,488
	27,090	Liberty Property Trust		1,019,397
	511,154	Mirvac Group		738,030
	1,166	PS Business Parks, Inc.		92,744
	13,463	Shaftesbury plc		163,216
	295,670	Stockland Trust Group		987,463
	16,512	STORE Capital Corp.^		356,824
	486	United Urban Investment Corp.		763,505
	58,051	Vornado Realty Trust		6,833,182
	7,780	Wereldhave NV		533,918
	5,740	WP Carey, Inc.^		402,374

				22,683,026

	Health Care Facilities (0.1%):
	24,050	Extendicare, Inc.^		115,746

	Health Care REITs (3.9%):
	36,566	American Realty Capital Healthcare Trust		435,135
	29,757	HCP, Inc.		1,310,201
	9,680	Health Care REIT, Inc.		732,486
	13,936	Healthcare Realty Trust, Inc.		380,732
	5	Nippon Healthcare Investment Corp.*		11,640
	97,185	Senior Housing Properties Trust		2,148,760


Shares			Fair Value
	Common Stocks, continued
	Health Care REITs, continued
	32,061	Ventas, Inc.^	$	2,298,774

				7,317,728

	Hotel & Resort REITs (4.0%):
	25,505	Chesapeake Lodging Trust		949,041
	277,140	Host Hotels & Resorts, Inc.^		6,587,617

				7,536,658

	Hotels, Resorts & Cruise Lines (2.4%):
	12,480	Extended Stay America, Inc.		240,989
	42,954	Hilton Worldwide Holdings, Inc.*		1,120,670
	11,261	La Quinta Holdings, Inc.*		248,418
	35,779	Starwood Hotels & Resorts Worldwide, Inc.		2,900,603

				4,510,680

	Industrial REITs (3.2%):
	178,000	Ascendas Real Estate Investment Trust		319,602
	5,435	DCT Industrial Trust, Inc.		193,812
	346	GLP J-REIT		383,478
	280,852	Macquarie Goodman Group		1,294,402
	464	Nippon Prologis REIT, Inc.		1,006,087
	51,804	ProLogis, Inc.		2,229,126
	20,044	Rexford Industrial Realty, Inc.		314,891
	51,192	SERGO plc		293,408

				6,034,806

	Office REITs (7.9%):
	6,620	Alexandria Real Estate Equities, Inc.		587,459
	5,279	Alstria Office AG^		65,663
	361,039	Beni Stabili SpA^		253,516
	26,850	BioMed Realty Trust, Inc.		578,349
	29,497	Boston Properties, Inc.		3,795,969
	16,799	Brookfield Canada Office Properties		389,928
	68,000	CapitaCommercial Trust		90,035
	223,000	Champion REIT		103,488
	9,560	Corporate Office Properties Trust		271,217
	18,403	Derwent Valley Holdings plc		859,447
	31,704	Douglas Emmett, Inc.		900,394
	67,452	Great Portland Estates plc		770,796
	34,518	Hudson Pacific Properties, Inc.		1,037,611
	252	Japan Real Estate Investment Corp.		1,212,983
	55,368	Mack-Cali Realty Corp.		1,055,314
	382	Mori Hills REIT Investment Corp., C Shares		546,683
	4,498	New York REIT, Inc.^		47,634
	268	Nippon Building Fund, Inc.		1,342,949
	305	ORIX JREIT, Inc.^		427,026
	24,688	Paramount Group, Inc.*		458,950
	4,246	Workspace Group plc		50,196

				14,845,607

	Real Estate Development (0.9%):
	2,485,087	BGP Holdings plc*(a)(b)		—
	53,000	China Resources Land, Ltd.		139,126
	37,300	Dalian Wanda Commercial Properties Co., Ltd., H Shares*		238,122
	235,600	Guangzhou R&F Properties Co., Ltd., H Shares		286,625
	163	Helical Bar plc		973


Shares			Fair Value
	Common Stocks, continued
	Real Estate Development, continued
	114,500	Keppel DC REIT*	$	84,299
	213,418	Sino Land Co., Ltd.		342,604
	49,543	ST Modwen Properties plc		295,861
	100,795	Urban & Civic plc*		389,521

				1,777,131

	Real Estate Operating Companies (10.5%):
	3,600	AEON Mall Co., Ltd.		63,672
	49,438	Atrium European Real Estate, Ltd.		244,591
	15,512	Atrium Ljungberg AB, B Shares^		228,374
	65,308	BR Malls Participacoes SA		403,812
	67,600	BR Properties SA		260,763
	8,830	BUWOG-Bauen Und Wohnen Gesellschaft mbH		174,976
	63,256	Capital & Counties Properties plc		356,768
	562,392	Capital & Regional plc		459,929
	11,889	Castellum AB		185,580
	104,929	Citycon Oyj		327,124
	6,200	Daibiru Corp.^		58,283
	21,909	Deutsche Annington Immobilien SE^		745,157
	7,295	Deutsche Euroshop AG		319,414
	20,582	Deutsche Wohnen AG		488,975
	23,233	Entra ASA*		237,403
	14,697	Fabege AB		188,716
	35,684	First Capital Realty, Inc.^		573,279
	21,416	Forest City Enterprises, Inc., Class A*^		456,161
	14,978	GAGFAH SA*		335,086
	569,000	Global Logistic Properties, Ltd.		1,064,431
	177,509	Grainger Trust plc		519,470
	9,830	Hispania Activos Inmobiliarios SA*		128,169
	13,000	Hongkong Land Holdings, Ltd.		87,499
	456,500	Hongkong Land Holdings, Ltd.		3,072,562
	55,032	Hufvudstaden AB^		714,823
	50,200	Hulic Co., Ltd.		499,138
	374,346	Hysan Development Co., Ltd.		1,663,546
	49,538	Iguatemi Empresa de Shopping Centers SA		458,617
	104,398	Investa Office Fund		308,281
	9,309	LEG Immobilien AG		698,290
	329,899	LXB Retail Properties plc*		705,412
	72,388	Norwegian Property ASA*		98,166
	11,500	NTT Urban Development Corp.		115,381
	44,166	Prime Office AG*		155,594
	11,510	PSP Swiss Property AG^		991,352
	355,788	Quintain Estates & Development plc*		527,741
	68,264	Sponda Oyj		298,944
	355,850	Swire Properties, Ltd.		1,050,302
	1,710	Swiss Prime Site AG^		125,332
	57,129	Unite Group plc		413,888

				19,805,001

	Residential REITs (10.7%):
	114	Advance Residence Investment^		304,450
	35,566	AvalonBay Communities, Inc.^		5,811,129
	12,927	Boardwalk REIT^		684,914
	26,635	Camden Property Trust		1,966,728
	3,611	Canadian Apartment Properties REIT		78,127
	22,924	Equity Lifestyle Properties, Inc.		1,181,732


Shares or Principal Amount			Fair Value
	Common Stocks, continued
	Residential REITs, continued
	106,406	Equity Residential Property Trust	$	7,644,206
	5,798	Essex Property Trust, Inc.		1,197,867
	16,872	Mid-America Apartment Communities, Inc.		1,260,001

				20,129,154

	Retail REITs (24.6%):
	13,564	Acadia Realty Trust		434,455
	283	Altarea SCA^		45,159
	7,299	Calloway REIT		171,556
	329,000	CapitaMall Trust		506,379
	10,151	Corio NV		495,336
	6,960	DDR Corp.^		127,786
	8,562	Equity One, Inc.		217,132
	8,006	Eurocommercial Properties NV^		339,573
	5,977	Federal Realty Investment Trust^		797,690
	181,052	Federation Centres		421,271
	13	Frontier Real Estate Investment Corp.		59,509
	148,217	General Growth Properties, Inc.		4,169,344
	143,811	Hammerson plc		1,343,964
	275	Japan Retail Fund Investment Corp.		580,026
	36,530	Kimco Realty Corp.		918,364
	13,994	Klepierre^		602,695
	109,561	Liberty International plc		566,493
	438,215	Link REIT (The)		2,735,773
	35,405	Macerich Co. (The)^		2,953,131
	3,761	Mercialys SA		83,883
	33,113	National Retail Properties, Inc.^		1,303,659
	13,529	Realty Income Corp.^		645,469
	44,073	Regency Centers Corp.		2,810,976
	73,730	RioCan REIT		1,677,731
	914,071	Scentre Group		2,598,561
	62,187	Simon Property Group, Inc.		11,324,875
	242,000	SPH REIT		190,038
	57,482	Tanger Factory Outlet Centers, Inc.		2,124,535
	12,922	Unibail-Rodamco SE		3,302,310
	3,220	Vastned Retail NV^		145,448
	347,852	Westfield Corp.		2,542,601

				46,235,722

	Specialized REITs (3.1%):
	12,450	CubeSmart^		274,772
	24,347	Public Storage, Inc.		4,500,543
	78,775	Safestore Holdings, Ltd.		284,710
	3,206	Sovran Self Storage, Inc.		279,627
	33,474	Sunstone Hotel Investors, Inc.^		552,656

				5,892,308

	Total Common Stocks (Cost $127,713,964)			186,891,201

	Securities Held as Collateral for Securities on Loan (13.2%):
$	24,717,686	Allianz Variable Insurance Products Securities Lending Collateral Trust(c)		24,717,686

	Total Securities Held as Collateral for Securities on Loan (Cost $24,717,686)			24,717,686

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	152,848,438

Investment securities, at value*	$	212,025,675
Interest and dividends receivable		688,798
Foreign currency, at value (cost $121,622)		121,358
Receivable for investments sold		276,775
Reclaims receivable		15,887
Prepaid expenses		1,599

Total Assets		213,130,092

Liabilities:
Payable for investments purchased		198,911
Payable for capital shares redeemed		82,221
Payable for collateral received on loaned securities		24,717,686
Manager fees payable		144,957
Administration fees payable		6,702
Distribution fees payable		40,266
Custodian fees payable		34,611
Administrative and compliance services fees payable		621
Trustee fees payable		12
Other accrued liabilities		12,475

Total Liabilities		25,238,462

Net Assets	$	187,891,630

Net Assets Consist of:
Capital	$	160,292,215
Accumulated net investment income/(loss)		4,542,935
Accumulated net realized gains/(losses) from investment transactions		(36,117,988	)
Net unrealized appreciation/(depreciation) on investments		59,174,468

Net Assets	$	187,891,630

Shares of beneficial interest (unlimited number of shares authorized, no par value)		16,910,087
Net Asset Value (offering and redemption price per share)	$	11.11

*	Includes securities on loan of $23,698,629.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	5,800,628
Income from securities lending		25,225
Foreign withholding tax		(251,704	)

Total Investment Income		5,574,149

Expenses:
Manager fees		1,696,092
Administration fees		77,827
Distribution fees		471,136
Custodian fees		138,032
Administrative and compliance services fees		2,634
Trustee fees		10,166
Professional fees		11,125
Shareholder reports		11,284
Other expenses		5,578

Total expenses before reductions		2,423,874
Less expenses paid indirectly		(2,499	)

Net expenses		2,421,375

Net Investment Income/(Loss)		3,152,774

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		9,054,212
Change in net unrealized appreciation/depreciation on investments		12,055,284

Net Realized/Unrealized Gains/(Losses) on Investments		21,109,496

Change in Net Assets Resulting From Operations	$	24,262,270

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Morgan Stanley Global Real Estate Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $2,524 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Morgan Stanley Investment Management Inc. (“MSIM”), MSIM provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $2,338 was paid from the Fund relating to these fees and expenses.

During the year ended December 31, 2014, the Fund paid approximately $706 to affiliated broker/dealers of the Subadvisor on the execution of purchases and sales of the Fund’s portfolio investments.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

A reconciliation of assets in which Level 3 inputs are used in determining fair value, along with additional quantitative disclosures are presented when there are significant

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $165,776,849. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $5,673,295 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Morgan Stanley Global Real Estate Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 7.16% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Morgan Stanley Mid Cap Growth Fund returned 0.82%. That compared to a 11.90% total return for its benchmark, the Russell Midcap^® Growth Index¹.

U.S. stocks delivered a strong performance in the year ended December 31, 2014, driven primarily by investor optimism about the economy. However, the market experienced periodic spikes in volatility during the period in response to a variety of factors. Economic concerns included the weather-related contraction in U.S. growth in the first quarter of 2014, moderation in China, stagnation in Europe, and recession in Japan. Geopolitical uncertainties, including the Russia-Ukraine crisis, the rise of terrorist group the Islamic State, and the Ebola outbreak, also disrupted the market. Nevertheless, the broad market rebounded to new highs following those downturns.

A widespread sell-off in high growth and high valuation multiple stocks began in March and continued through April. We believe the sell-off generally was driven by a broad rotation out of such names, rather than company-specific fundamentals. Although the share prices of several of our portfolio’s holdings took a hit during this downturn, these companies’ fundamentals remained largely robust. Overall, we used the sell-off as an opportunity to increase the portfolio’s quality, and we remain optimistic about the long-term outlook for the companies owned.*

Stock selection was the key driver of the Fund’s underperformance relative to its benchmark. The main detractor was stock selection in the information technology sector, particularly holdings in internet software and services and in software. These stocks were negatively affected by the high growth and high multiple sell-off during the spring.

Fund Objective

The Fund’s investment objective is to seek capital growth. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets, plus any borrowings for investment purposes, in common stocks and other equity securities of mid-capitalization growth companies.

Investment Concerns

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

Growth based investments can perform differently from the market as a whole and can be more volatile that other types of securities.

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

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Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® Morgan Stanley Mid Cap Growth Fund		0.82	%		14.93	%		13.45	%		9.11	%
Russell Midcap^® Growth Index		11.90	%		20.71	%		16.94	%		9.43	%


Expense Ratio	Gross
AZL^® Morgan Stanley Mid Cap Growth Fund		1.11	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 1.30% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Russell Midcap^® Growth Index, an unmanaged index that measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Morgan Stanley Mid Cap Growth Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (94.1%):
	Aerospace & Defense (2.6%):
	61,547	TransDigm Group, Inc.	$	12,084,753

	Automobiles (3.6%):
	76,571	Tesla Motors, Inc.*^		17,030,156

	Beverages (1.0%):
	43,836	Monster Beverage Corp.*		4,749,631

	Biotechnology (1.6%):
	27,086	Alnylam Pharmaceuticals, Inc.*^		2,627,342
	3,171	Intercept Pharmaceuticals, Inc.*^		494,676
	226,756	Ironwood Pharmaceuticals, Inc.*^		3,473,902
	34,041	Seattle Genetics, Inc.*^		1,093,737

				7,689,657

	Commercial Services & Supplies (1.1%):
	38,410	Stericycle, Inc.*^		5,034,783

	Communications Equipment (1.0%):
	39,148	Palo Alto Networks, Inc.*^		4,798,370

	Diversified Financial Services (2.5%):
	249,747	MSCI, Inc., Class A^		11,847,998

	Electrical Equipment (0.5%):
	46,273	Solarcity Corp.*^		2,474,680

	Food Products (6.6%):
	101,843	Keurig Green Mountain, Inc.^		13,483,504
	176,788	Mead Johnson Nutrition Co.		17,774,266

				31,257,770

	Health Care Equipment & Supplies (5.1%):
	45,020	Intuitive Surgical, Inc.*^		23,812,879

	Health Care Technology (3.6%):
	116,496	athenahealth, Inc.*^		16,973,467

	Hotels, Restaurants & Leisure (5.9%):
	3,522	Chipotle Mexican Grill, Inc.*		2,410,844
	85,545	Ctrip.com International, ADR*		3,892,298
	250,289	Dunkin’ Brands Group, Inc.^		10,674,826
	62,501	Panera Bread Co., Class A*^		10,925,175

				27,903,143

	Internet & Catalog Retail (3.3%):
	398,397	Groupon, Inc.*^		3,290,759
	65,818	TripAdvisor, Inc.*^		4,913,972
	101,642	Zalando SE*^		3,122,667
	169,844	zulily, Inc., Class A*^		3,974,350

				15,301,748

	Internet Software & Services (14.1%):
	113,381	Autohome, Inc., ADR*		4,122,533
	72,387	LendingClub Corp.*		1,831,391
	105,199	LinkedIn Corp., Class A*^		24,165,262
	27,560	MercadoLibre, Inc.^		3,518,585
	440,628	Twitter, Inc.*		15,805,326
	43,349	Yelp, Inc.*^		2,372,491
	226,179	Youku.com, Inc., ADR*^		4,028,247


Shares			Fair Value
	Common Stocks, continued
	Internet Software & Services, continued
	105,142	Zillow, Inc., Class A*^	$	11,133,486

				66,977,321

	IT Services (5.0%):
	79,099	FleetCor Technologies, Inc.*^		11,762,812
	138,791	Gartner, Inc.*^		11,687,590

				23,450,402

	Life Sciences Tools & Services (5.6%):
	143,002	Illumina, Inc.*^		26,395,309

	Machinery (1.7%):
	159,474	Colfax Corp.*^		8,224,074

	Media (3.7%):
	146,408	McGraw-Hill Cos., Inc. (The)		13,027,384
	240,431	Pandora Media, Inc.*^		4,286,885

				17,314,269

	Pharmaceuticals (4.3%):
	182,399	Endo International plc*^		13,154,616
	12,198	Pharmacyclics, Inc.*^		1,491,327
	125,905	Zoetis, Inc.		5,417,693

				20,063,636

	Professional Services (4.7%):
	90,348	IHS, Inc., Class A*		10,288,830
	182,399	Verisk Analytics, Inc., Class A*^		11,682,656

				21,971,486

	Software (11.3%):
	261,620	FireEye, Inc.*^		8,261,960
	43,535	NetSuite, Inc.*^		4,752,716
	97,964	ServiceNow, Inc.*^		6,646,857
	243,858	Splunk, Inc.*^		14,375,428
	36,284	Tableau Software, Inc., Class A*^		3,075,432
	175,050	Workday, Inc., Class A*^		14,285,831
	618,353	Zynga, Inc.*^		1,644,819

				53,043,043

	Technology Hardware, Storage & Peripherals (0.9%):
	68,926	3D Systems Corp.*		2,265,598
	23,744	Stratasys, Ltd.*^		1,973,364

				4,238,962

	Textiles, Apparel & Luxury Goods (4.4%):
	106,033	Lululemon Athletica, Inc.*^		5,915,581
	162,136	Michael Kors Holdings, Ltd.*^		12,176,414
	36,544	Under Armour, Inc., Class A*^		2,481,338

				20,573,333

	Total Common Stocks (Cost $352,527,720)			443,210,870

	Private Placements (3.8%):
	Internet & Catalog Retail (1.0%):
	37,815	Flipkart, Preferred(a)(b)		4,528,724
	33,446	Peixe Urbano, Inc.*(a)(b)		14,382

				4,543,106


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (27.7%):
$	130,546,629	Allianz Variable Insurance Products Securities Lending Collateral Trust(c)	$	130,546,629

	Total Securities Held as Collateral for Securities on Loan (Cost $130,546,629)			130,546,629

	Unaffiliated Investment Company (2.3%):
	10,619,439	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(d)		10,619,439

	Total Unaffiliated Investment Company (Cost $10,619,439)			10,619,439

	Total Investment Securities (Cost $506,164,368)(e) — 127.9%			602,340,192
	Net other assets (liabilities) — (27.9)%			(131,243,184	)

	Net Assets — 100.0%		$	471,097,008

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	506,164,368

Investment securities, at value*	$	602,340,192
Interest and dividends receivable		122,929
Prepaid expenses		3,995

Total Assets		602,467,116

Liabilities:
Payable for capital shares redeemed		360,920
Payable for collateral received on loaned securities		130,546,629
Manager fees payable		320,515
Administration fees payable		10,752
Distribution fees payable		100,310
Custodian fees payable		7,299
Administrative and compliance services fees payable		1,115
Trustee fees payable		22
Other accrued liabilities		22,546

Total Liabilities		131,370,108

Net Assets	$	471,097,008

Net Assets Consist of:
Capital	$	311,535,200
Accumulated net investment income/(loss)		—
Accumulated net realized gains/(losses) from investment transactions		63,385,984
Net unrealized appreciation/(depreciation) on investments		96,175,824

Net Assets	$	471,097,008

Shares of beneficial interest (unlimited number of shares authorized, no par value)		27,816,034
Net Asset Value (offering and redemption price per share)	$	16.94

*	Includes securities on loan of $127,060,868.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	2,805,210
Income from securities lending		699,887
Foreign withholding tax		(91,482	)

Total Investment Income		3,413,615

Expenses:
Manager fees		3,970,942
Administration fees		132,925
Distribution fees		1,245,485
Custodian fees		32,214
Administrative and compliance services fees		6,412
Trustee fees		24,903
Professional fees		26,018
Shareholder reports		28,059
Other expenses		12,067

Total expenses before reductions		5,479,025
Less expenses paid indirectly		(343	)

Net expenses		5,478,682

Net Investment Income/(Loss)		(2,065,067	)

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		65,527,998
Change in net unrealized appreciation/depreciation on investments		(59,837,454	)

Net Realized/Unrealized Gains/(Losses) on Investments		5,690,544

Change in Net Assets Resulting From Operations	$	3,625,477

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Morgan Stanley Mid Cap Growth Fund (the “Fund”), and 30 are presented in separate reports.

liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $66.8 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $69,210 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Morgan Stanley Investment Management Inc. (“MSIM”), MSIM provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $6,313 was paid from the Fund relating to these fees and expenses.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:


Quantitative Information about Level 3 Fair Value Measurements
Type of Assets	Fair Value at December 31, 2014		Valuation Basis at December 31, 2014	Valuation Technique(s)	Unobservable input(s)	Range		Weighted Average/ Selected Value

Investment Securities:

Private Placements:

Internet & Catalog Retail Flipkart, Preferred	$	4,528,724	Market Approach	Market Transaction Method	Precedent Transaction of Preferred Stock	$	119.76	$	119.76

Peixe Urbano, Inc.		14,382	Market Approach	Asset Approach	Net Tangible Assets	$	0.43	$	0.43

Internet Software & Services Airbnb, Inc., Series D Preferred		3,877,235	Market Approach	Market Transaction Method	Precedent Transaction	$	50.41	$	50.41

Dropbox, Inc.		4,691,370	Market Approach	Market Transaction Method	Precedent Transaction of Preferred Stock	$	19.10	$	19.10

Palantir Technologies, Inc., Series H-1 Preferred		542,729	Market Approach	Market Transaction Method	Precedent Transaction of Preferred Stock	$	8.89	$	8.89

				Discounted Cash Flow	Weighted Average Cost of Capital		16%-18%		17	%

					Perpetual Growth Rate		2.5%-3.5%		3	%

				Market Comparable Companies	Enterprise Value/Revenue		10.2x-13.1x		11.2x

					Discount for Lack of Marketability		15%		15	%

Palantir Technologies, Inc., Series H Preferred		542,729	Market Approach	Market Transaction Method	Precedent Transaction of Preferred Stock	$	8.89	$	8.89

				Discounted Cash Flow	Weighted Average Cost of Capital		16%-18%		17	%

					Perpetual Growth Rate		2.5%-3.5%		3	%

				Market Comparable Companies	Enterprise Value/Revenue		10.2x-13.1x		11.2x

					Discount for Lack of Marketability		15%		15	%

Palantir Technologies, Inc., Series G		1,842,290	Market Approach	Market Transaction Method	Precedent Transaction of Preferred Stock	$	8.89	$	8.89

				Discounted Cash Flow	Weighted Average Cost of Capital		16%-18%		17	%

					Perpetual Growth Rate		2.5%-3.5%		3	%

				Market Comparable Companies	Enterprise Value/Revenue		10.2x-13.1x		11.2x

					Discount for Lack of Marketability		15%		15	%

Survey Monkey		1,923,795	Market Approach	Market Transaction Method	Precedent Transaction	$	16.45	$	16.45


Total Investment Securities		$17,963,254

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $511,634,434. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

(a) The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to tax deferral of losses on wash sales.

We have audited the accompanying statement of assets and liabilities of AZL Morgan Stanley Mid Cap Growth Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

For the year ended December 31, 2014, 24.99% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $38,069,760.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $7,571,845.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014 the AZL^® NFJ International Value Fund returned -5.26%. That compared to a -4.48% and -3.44% total return for its benchmarks the MSCI EAFE Index¹ and the MSCI ACWI Ex-US Index².

International equity markets performed relatively well during the first half of the period, but those gains disappeared in the period’s second half. Investors responded negatively to several factors, including persistent weakness in global economies outside the U.S., and geopolitical issues such as Russia’s incursion into Ukraine. Several central banks—including in Europe, Japan and China—adopted aggressive easing policies to spur economic growth. International stocks lagged their U.S. counterparts during the period. Developed international markets underperformed emerging markets, though negative currency impacts during the period eroded stock returns in many emerging markets.

Toward the end of the period, a sizable drop in oil prices led to poor performance among many of the benchmark’s economic sectors. Just three out of 10 sectors recorded a positive return during the 12-month period. Energy was the worst performing sector, falling nearly 19%. By contrast, health care stocks gained nearly 8%.

The Fund underperformed its benchmark due to negative sector allocation and, to a lesser degree, negative regional allocations. The portfolio’s bottom-up stock selection somewhat offset that negative performance. By region, individual stock selection in the U.K. helped performance, but those results were countered by an overweight position in the U.K., which hurt results. Stock selection in Asia/Pacific and emerging markets detracted from relative performance. Overweight positions in North America and emerging markets benefited results while an underweight in Japan dragged on relative results.*

An overweight position in the energy sector hurt the Fund’s relative returns as many stocks in the sector performed poorly in the wake of declining oil prices. We believed valuations remained compelling despite falling commodity prices, and remained committed to our investment process of targeting deep value names.*

Individual stock selection in the consumer staples and utilities sectors dampened results. Holdings in the health care sector contributed to relative results, as did stock selection and an underweight position in the consumer discretionary sector. The Fund also benefited from an overweight in the utilities sector.*

Past performance does not guarantee future results.

¹	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

²	The MSCI ACWI Ex-US Index captures large- and mid-cap representation across 22 of 23 developed markets countries (excluding the US) and 23 emerging markets countries.

Investors cannot invest directly in an index.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (5/1/09)
AZL^® NFJ International Value Fund		-5.26	%		8.44	%		4.49	%		9.89	%
MSCI EAFE Index (gross of withholding taxes)		-4.48	%		11.56	%		5.81	%		10.97	%
MSCI EAFE Index (net of withholding taxes)		-4.90	%		11.06	%		5.33	%		10.48	%
MSCI ACWI Ex-US Index (gross of withholding taxes)		-3.44	%		9.49	%		4.89	%		10.62	%
MSCI ACWI Ex-US Index (net of withholding taxes)		-3.87	%		8.99	%		4.43	%		10.14	%


Expense Ratio	Gross
AZL^® NFJ International Value Fund		1.23	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.45% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index and the Morgan Stanley Capital International All Country World Index Ex-US (“MSCI ACWI Ex-US”) Index. The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI ACWI Ex-US Index is unmanaged and captures large- and mid-cap representation across 22 of 23 developed markets countries (excluding the US) and 23 emerging markets countries. The Indexes noted as “gross of withholding taxes” does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Indexes noted as “net of withholding taxes” reflects the reinvestment of dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL NFJ International Value Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (94.6%):
	Aerospace & Defense (2.3%):
	113,950	BAE Systems plc, ADR^	$	3,322,212

	Auto Components (1.2%):
	16,600	Magna International, Inc., ADR		1,804,254

	Automobiles (3.3%):
	243,450	Isuzu Motors, Ltd.		2,970,740
	45,000	Tata Motors, Ltd., ADR		1,902,600

				4,873,340

	Banks (20.0%):
	101,400	Australia & New Zealand Banking Group, Ltd., ADR^		2,636,400
	213,170	Banco Bradesco SA, ADR		2,850,083
	1,810,700	Bank Rakyat Indonesia		1,686,734
	494,500	Barclays plc		1,858,846
	951,100	BOC Hong Kong Holdings, Ltd.		3,166,945
	4,022,000	China Construction Bank		3,273,779
	69,298	DnB NOR ASA		1,022,455
	438,839	HSBC Holdings plc		4,146,730
	1,526,000	Mizuho Financial Group, Inc.		2,564,564
	61,100	Toronto-Dominion Bank (The)^		2,919,358
	84,800	United Overseas Bank, Ltd., ADR		3,135,056

				29,260,950

	Beverages (1.6%):
	30,400	Carlsberg A/S, Class B		2,361,172

	Chemicals (1.5%):
	141,400	Israel Chemicals, Ltd.		1,021,563
	26,900	Methanex Corp.		1,232,827

				2,254,390

	Construction Materials (2.2%):
	870,000	Anhui Conch Cement Co., Ltd.^		3,244,893

	Containers & Packaging (1.1%):
	69,797	Smurfit Kappa Group plc		1,567,140

	Diversified Financial Services (1.0%):
	20,800	Deutsche Boerse AG		1,490,435

	Diversified Telecommunication Services (0.9%):
	66,200	Telenor ASA		1,335,729

	Electric Utilities (1.6%):
	174,700	Companhia Paranaense de Energia, ADR^		2,300,799

	Electronic Equipment, Instruments & Components (2.2%):
	439,800	Hitachi, Ltd.		3,218,667

	Energy Equipment & Services (0.8%):
	18,736	Technip-Coflexip SA		1,118,663

	Food Products (1.5%):
	6,447,500	Golden Agri-Resources, Ltd.		2,236,582

	Household Durables (2.2%):
	133,115	Persimmon plc		3,255,850

	Household Products (0.9%):
	61,300	Svenska Cellulosa AB, ADR		1,317,337


Shares			Fair Value
	Common Stocks, continued
	Industrial Conglomerates (3.2%):
	62,460	Koc Holding AS, ADR	$	1,648,319
	27,300	Siemens AG, Registered Shares		3,095,732

				4,744,051

	Insurance (8.8%):
	62,900	Axis Capital Holdings, Ltd.		3,213,561
	173,800	Manulife Financial Corp.^		3,317,842
	17,700	RenaissanceRe Holdings, Ltd.		1,720,794
	147,100	Zurich Insurance Group AG, ADR^		4,589,520

				12,841,717

	IT Services (1.3%):
	27,100	Cap Gemini SA		1,930,050

	Machinery (1.0%):
	67,600	Komatsu, Ltd.		1,498,911

	Media (1.1%):
	113,121	Sky plc		1,574,250

	Metals & Mining (2.7%):
	54,400	Rio Tinto plc, Registered Shares, ADR^		2,505,664
	171,900	Vale SA, ADR		1,406,142

				3,911,806

	Multiline Retail (2.2%):
	216,250	Marks & Spencer Group plc, ADR		3,183,200

	Multi-Utilities (1.6%):
	555,900	Centrica plc		2,392,277

	Oil, Gas & Consumable Fuels (10.3%):
	1,067,418	Beach Energy, Ltd.		913,062
	3,668,695	China Petroleum & Chemical Corp. (Sinopec), H Shares		2,970,544
	49,700	LUKOIL, ADR		1,905,995
	61,000	Royal Dutch Shell plc, ADR		4,083,950
	86,400	Sasol, Ltd., ADR		3,280,608
	114,900	Statoil ASA, ADR^		2,023,389

				15,177,548

	Pharmaceuticals (5.1%):
	31,000	Sanofi-Aventis SA		2,824,878
	80,700	Teva Pharmaceutical Industries, Ltd., ADR		4,641,057

				7,465,935

	Real Estate Management & Development (1.9%):
	170,000	Cheung Kong Holdings, Ltd.		2,836,967

	Semiconductors & Semiconductor Equipment (1.2%):
	80,900	Taiwan Semiconductor Manufacturing Co., Ltd., ADR		1,810,542

	Software (2.3%):
	28,700	Open Text Corp.		1,672,062
	62,469	Sage Group plc (The), ADR		1,799,357

				3,471,419

	Textile, Apparel, & Luxury Goods (0.4%):
	565,000	Belle International Holdings, Ltd.		632,581


Shares			Fair Value
	Common Stocks, continued
	Tobacco (2.2%):
	74,700	Imperial Tobacco Group plc	$	3,270,945

	Trading Companies & Distributors (1.8%):
	9,600	Mitsui & Co., Ltd., ADR^		2,575,152

	Water Utilities (0.2%):
	49,300	Companhia de Saneamento Basico do Estado de Sao Paulo, ADR		310,097

	Wireless Telecommunication Services (3.0%):
	59,600	America Movil SAB de C.V., Series L, ADR		1,321,928
	267,800	China Mobile, Ltd.		3,146,360

				4,468,288

	Total Common Stocks (Cost $130,093,709)			139,058,149

	Preferred Stock (2.1%):
	Automobiles (2.1%):
	13,700	Volkswagen AG, Preferred Shares		3,059,832

	Total Preferred Stock (Cost $2,807,254)			3,059,832


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (9.8%):
$	14,460,071	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)	$	14,460,071

	Total Securities Held as Collateral for Securities on Loan (Cost $14,460,071)			14,460,071

	Unaffiliated Investment Company (3.5%):
	5,200,597	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		5,200,597

	Total Unaffiliated Investment Company (Cost $5,200,597)			5,200,597

	Total Investment Securities (Cost $152,561,631)(c) — 110.0%			161,778,649
	Net other assets (liabilities) — (10.0)%			(14,725,126	)

	Net Assets — 100.0%		$	147,053,523

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	152,561,631

Investment securities, at value*	$	161,778,649
Cash		10,849
Interest and dividends receivable		181,281
Foreign currency, at value (cost $44,525)		44,565
Receivable for investments sold		247,554
Reclaims receivable		20,793
Prepaid expenses		1,260

Total Assets		162,284,951

Liabilities:
Payable for investments purchased		611,903
Payable for capital shares redeemed		33
Payable for collateral received on loaned securities		14,460,071
Manager fees payable		112,419
Administration fees payable		4,508
Distribution fees payable		31,227
Custodian fees payable		7,694
Administrative and compliance services fees payable		331
Trustee fees payable		7
Other accrued liabilities		3,235

Total Liabilities		15,231,428

Net Assets	$	147,053,523

Net Assets Consist of:
Capital	$	133,757,745
Accumulated net investment income/(loss)		3,594,495
Accumulated net realized gains/(losses) from investment transactions		484,438
Net unrealized appreciation/(depreciation) on investments		9,216,845

Net Assets	$	147,053,523

Shares of beneficial interest (unlimited number of shares authorized, no par value)		12,780,800
Net Asset Value (offering and redemption price per share)	$	11.51

*	Includes securities on loan of $13,955,945.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	5,552,184
Income from securities lending		274,791
Foreign withholding tax		(294,787	)

Total Investment Income		5,532,188

Expenses:
Manager fees		1,388,712
Administration fees		62,923
Distribution fees		385,753
Custodian fees		44,686
Administrative and compliance services fees		2,384
Trustee fees		9,392
Professional fees		10,524
Shareholder reports		2,227
Other expenses		4,042

Total expenses before reductions		1,910,643
Less expenses paid indirectly		(2,842	)

Net expenses		1,907,801

Net Investment Income/(Loss)		3,624,387

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		804,278
Change in net unrealized appreciation/depreciation on investments		(12,424,092	)

Net Realized/Unrealized Gains/(Losses) on Investments		(11,619,814	)

Change in Net Assets Resulting From Operations	$	(7,995,427	)

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL NFJ International Value Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $27,187 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an affiliated money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with NFJ Investment Group LLC (“NFJ”), NFJ provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $1,918 was paid from the Fund relating to these fees and expenses.

Forward currency contracts are generally valued at the foreign currency exchange rate as of the close of the NYSE and are typically categorized as Level 2 in the fair value hierarchy.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $152,748,399. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL NFJ International Value Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $6,108,872.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Oppenheimer Discovery Fund returned -2.30%. That compared to a 5.60% total return for its benchmark, the Russell 2000^® Growth Index¹.

Global equity markets were volatile for the one-year reporting period. U.S. equities were among the top performing asset classes, outperforming foreign equities, including those domiciled in Europe, Japan and emerging markets. In the United States, the Federal Reserve began tapering its most recent quantitative easing (QE) program in January 2014 and completed the process in October.

The U.S. equity market faced volatility early in 2014 due to weak first quarter economic data. However, the market generally produced positive results and ended the reporting period at record levels. Economic data in the U.S., such as gross domestic product² growth, proved positive in the second and third quarters. Meanwhile, the positive data points that had emerged in Europe in 2013 largely reversed themselves later in the reporting period. The European Central Bank came under even greater pressure to provide a credible plan to avoid deflation, and adopted many policies designed to stimulate growth. In Japan, a massive QE program yielded less than impressive results. Emerging markets’ economic growth was mixed, as regions including Eastern Europe and the Middle East remained burdened by geopolitical turmoil.

The Fund underperformed its benchmark, primarily due to weaker relative stock selection in the information technology and consumer discretionary sectors. The investment environment changed significantly during the reporting period. Though high-quality growth companies continued to outperform the broader market in early 2014, by March the tone of the market changed abruptly as companies with larger market capitalizations and lower valuations began to outperform smaller companies with higher valuations. The Fund’s investment style favors

high-quality, high-growth companies that often have above average valuations, and it underperformed meaningfully from mid-March to mid-May despite little or no change to the underlying fundamentals of the companies it owns. The Fund’s top detractors included a learning and talent management software solution vendor, which reported less revenue and earnings per share than expected, and a 3D printer maker, which issued earnings per share guidance that was below estimates due to higher-than-expected operating expenses and share count.*

The Fund’s relative performance benefited from its holdings in an independent energy exploration and production company, which rallied following an announcement that it would be acquired. The successful initial public offering of a company that makes wearable cameras, and the Fund’s subsequent exit, also helped boost relative returns.*

Past performance does not guarantee future results.

¹	The Russell 2000^® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index.

Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (4/29/05)
AZL^® Oppenheimer Discovery Fund		-2.30	%		18.36	%		15.11	%		7.40	%
Russell 2000^® Growth Index		5.60	%		20.14	%		16.80	%		10.39	%


Expense Ratio	Gross
AZL^® Oppenheimer Discovery Fund		1.16	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.35% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Russell 2000^® Growth Index, an unmanaged index that measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Oppenheimer Discovery Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (98.2%):
	Aerospace & Defense (1.0%):
	43,690	Curtiss-Wright Corp.^	$	3,084,077

	Airlines (2.1%):
	29,267	Allegiant Travel Co.^		4,399,708
	46,990	Virgin America, Inc.*^		2,032,318

				6,432,026

	Auto Components (0.5%):
	40,510	Gentherm, Inc.*^		1,483,476

	Banks (4.6%):
	120,360	Bank of the Ozarks, Inc.^		4,564,051
	81,440	PrivateBancorp, Inc.		2,720,096
	26,100	Signature Bank*		3,287,556
	128,540	Western Alliance BanCorp*^		3,573,412

				14,145,115

	Beverages (0.8%):
	8,650	Boston Beer Co., Inc. (The), Class A*^		2,504,521

	Biotechnology (3.2%):
	24,310	Bluebird Bio, Inc.*^		2,229,713
	36,100	Cepheid, Inc.*^		1,954,454
	47,800	Exact Sciences Corp.*^		1,311,632
	5,560	Juno Therapeutics, Inc.*		290,343
	21,080	NPS Pharmaceuticals, Inc.*^		754,032
	35,340	PTC Therapeutics, Inc.*^		1,829,552
	34,380	Ultragenyx Pharmaceutical, Inc.*^		1,508,594

				9,878,320

	Building Products (2.5%):
	80,330	A.O. Smith Corp.		4,531,415
	33,200	Lennox International, Inc.^		3,156,324

				7,687,739

	Capital Markets (1.6%):
	24,560	Evercore Partners, Inc., Class A^		1,286,207
	59,814	HFF, Inc., Class A		2,148,519
	26,360	Piper Jaffray Cos., Inc.*		1,531,252

				4,965,978

	Commercial Services & Supplies (1.3%):
	99,650	Mobile Mini, Inc.^		4,036,822

	Construction Materials (1.0%):
	51,910	CaesarStone Sdot-Yam, Ltd.		3,105,256

	Containers & Packaging (0.5%):
	49,520	Berry Plastics Group, Inc.*^		1,562,356

	Diversified Consumer Services (2.7%):
	83,544	Bright Horizons Family Solutions, Inc.*^		3,927,403
	39,500	Grand Canyon Education, Inc.*^		1,843,070
	141,400	Lifelock, Inc.*^		2,617,314

				8,387,787

	Electrical Equipment (1.2%):
	104,250	Methode Electronics, Inc.		3,806,168

	Energy Equipment & Services (0.4%):
	64,253	Forum Energy Technologies, Inc.*^		1,331,965


Shares			Fair Value
	Common Stocks, continued
	Food Products (2.3%):
	60,500	Hain Celestial Group, Inc.*^	$	3,526,544
	26,858	J & J Snack Foods Corp.		2,921,345
	39,122	SunOpta, Inc.*		463,596

				6,911,485

	Health Care Equipment & Supplies (6.8%):
	48,170	Cantel Medical Corp.^		2,083,834
	67,430	Cardiovascular Systems, Inc.*		2,028,294
	88,868	Dexcom, Inc.*^		4,892,184
	38,130	Insulet Corp.*^		1,756,268
	140,950	Spectranetics Corp. (The)*^		4,874,051
	42,100	STERIS Corp.^		2,730,185
	49,660	West Pharmaceutical Services, Inc.		2,643,898

				21,008,714

	Health Care Providers & Services (9.5%):
	85,540	Acadia Healthcare Co., Inc.*^		5,235,903
	43,610	Centene Corp.*^		4,528,899
	79,460	ExamWorks Group, Inc.*^		3,304,741
	40,330	HealthEquity, Inc.*^		1,026,399
	53,656	LifePoint Hospitals, Inc.*		3,858,403
	9,090	MWI Veterinary Supply, Inc.*^		1,544,482
	107,910	Team Health Holdings, Inc.*		6,208,063
	64,900	VCA Antech, Inc.*^		3,165,173

				28,872,063

	Health Care Technology (0.7%):
	66,140	Omnicell, Inc.*		2,190,557

	Hotels, Restaurants & Leisure (7.1%):
	27,990	Buffalo Wild Wings, Inc.*^		5,048,836
	68,770	Fiesta Restaurant Group, Inc.*^		4,181,216
	12,270	Habit Restaurants, Inc. (The), Class A*^		396,935
	51,530	Jack in the Box, Inc.		4,120,339
	141,670	La Quinta Holdings, Inc.*^		3,125,240
	49,210	Popeyes Louisiana Kitchen, Inc.*^		2,769,047
	65,790	Zoe’s Kitchen, Inc.*^		1,967,779

				21,609,392

	Internet & Catalog Retail (0.8%):
	32,280	HSN, Inc.^		2,453,280

	Internet Software & Services (2.4%):
	38,600	Demandware, Inc.*^		2,221,044
	66,470	GrubHub, Inc.*^		2,414,190
	3,640	New Relic, Inc.*		126,818
	36,830	Shutterstock, Inc.*^		2,544,953

				7,307,005

	Life Sciences Tools & Services (0.7%):
	42,860	ICON plc*		2,185,431

	Machinery (4.8%):
	25,670	Greenbrier Companies, Inc.^		1,379,249
	64,350	Middleby Corp. (The)*		6,377,085
	16,680	Proto Labs, Inc.*^		1,120,229
	63,410	Wabtec Corp.^		5,509,695

				14,386,258


Shares			Fair Value
	Common Stocks, continued
	Media (0.4%):
	18,810	Rentrak Corp.*^	$	1,369,744

	Multiline Retail (1.5%):
	82,260	Burlington Stores, Inc.*^		3,887,608
	36,700	Tuesday Morning Corp.*^		796,390

				4,683,998

	Oil, Gas & Consumable Fuels (0.8%):
	27,940	Diamondback Energy, Inc.*^		1,670,253
	41,280	Matador Resources Co.*^		835,094

				2,505,347

	Pharmaceuticals (2.4%):
	122,930	Akorn, Inc.*^		4,450,066
	48,160	Biodelivery Sciences International, Inc.*^		578,883
	26,980	Pacira Pharmaceuticals, Inc.*^		2,392,047

				7,420,996

	Professional Services (3.0%):
	33,080	CoStar Group, Inc.*^		6,074,480
	47,000	Huron Consulting Group, Inc.*^		3,214,330

				9,288,810

	Real Estate Investment Trusts (REITs) (1.0%):
	66,349	Pebblebrook Hotel Trust^		3,027,505

	Road & Rail (2.8%):
	92,500	Knight Transportation, Inc.^		3,113,550
	43,010	Old Dominion Freight Line, Inc.*^		3,339,296
	40,980	Saia, Inc.*^		2,268,653

				8,721,499

	Semiconductors & Semiconductor Equipment (6.0%):
	22,610	Ambarella, Inc.*^		1,146,779
	91,130	Cavium, Inc.*^		5,633,657
	24,480	MA-COM Technology Solutions Holdings, Inc.*^		765,734
	52,200	MKS Instruments, Inc.^		1,910,520
	131,120	Monolithic Power Systems, Inc.^		6,521,909
	75,490	Spansion, Inc.*^		2,583,268

				18,561,867

	Software (14.8%):
	54,250	Envestnet, Inc.*^		2,665,845
	114,070	Guidewire Software, Inc.*^		5,775,364
	28,420	Manhattan Associates, Inc.*^		1,157,262
	89,930	Paylocity Holding Corp.*^		2,348,072
	117,340	Proofpoint, Inc.*^		5,659,308


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Software, continued
	62,980	ServiceNow, Inc.*^	$	4,273,193
	64,830	Tableau Software, Inc., Class A*^		5,494,991
	56,770	Tyler Technologies, Inc.*^		6,212,909
	40,960	Ultimate Software Group, Inc. (The)*^		6,013,542
	68,230	Veeva Systems, Inc., Class A*^		1,801,954
	43,590	Verint Systems, Inc.*^		2,540,425
	64,450	Zendesk, Inc.*^		1,570,647

				45,513,512

	Specialty Retail (0.8%):
	16,900	Boot Barn Holdings, Inc.*^		307,580
	82,610	Michaels Cos., Inc. (The)*^		2,042,945

				2,350,525

	Technology Hardware, Storage & Peripherals (0.4%):
	15,350	Stratasys, Ltd.*^		1,275,739

	Textiles, Apparel & Luxury Goods (4.2%):
	18,890	Carter’s, Inc.^		1,649,286
	42,790	Deckers Outdoor Corp.*^		3,895,602
	43,430	G-III Apparel Group, Ltd.*^		4,386,864
	55,620	Skechers U.S.A., Inc., Class A*^		3,073,005

				13,004,757

	Thirfts & Mortgage Finance (0.9%):
	107,080	Essent Group, Ltd.*^		2,753,027

	Trading Companies & Distributors (0.7%):
	81,040	H&E Equipment Services, Inc.^		2,276,414

	Total Common Stocks (Cost $246,159,215)			302,089,531

	Securities Held as Collateral for Securities on Loan (28.2%):
$	86,675,634	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		86,675,634

	Total Securities Held as Collateral for Securities on Loan (Cost $86,675,634)			86,675,634

	Unaffiliated Investment Company (1.4%):
	4,232,229	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		4,232,229

	Total Unaffiliated Investment Company (Cost $4,232,229)			4,232,229

	Total Investment Securities (Cost $337,067,078)(c) — 127.8%			392,997,394
	Net other assets (liabilities) — (27.8)%			(85,575,005	)

	Net Assets — 100.0%		$	307,422,389

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	337,067,078

Investment securities, at value*	$	392,997,394
Interest and dividends receivable		154,856
Receivable for investments sold		1,436,459
Prepaid expenses		2,537

Total Assets		394,591,246

Liabilities:
Payable for capital shares redeemed		176,253
Payable for collateral received on loaned securities		86,675,634
Manager fees payable		221,765
Administration fees payable		7,047
Distribution fees payable		65,225
Custodian fees payable		8,836
Administrative and compliance services fees payable		709
Trustee fees payable		14
Other accrued liabilities		13,374

Total Liabilities		87,168,857

Net Assets	$	307,422,389

Net Assets Consist of:
Capital	$	216,791,571
Accumulated net investment income/(loss)		—
Accumulated net realized gains/(losses) from investment transactions		34,700,502
Net unrealized appreciation/(depreciation) on investments		55,930,316

Net Assets	$	307,422,389

Shares of beneficial interest (unlimited number of shares authorized, no par value)		21,336,559
Net Asset Value (offering and redemption price per share)	$	14.41

*	Includes securities on loan of $83,715,698.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	1,004,174
Income from securities lending		377,637
Foreign withholding tax		(15,183	)

Total Investment Income		1,366,628

Expenses:
Manager fees		2,701,666
Administration fees		85,669
Distribution fees		794,605
Custodian fees		33,825
Administrative and compliance services fees		3,961
Trustee fees		15,215
Professional fees		16,037
Shareholder reports		15,986
Other expenses		7,822

Total expenses		3,674,786

Net Investment Income/(Loss)		(2,308,158	)

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		34,969,440
Change in net unrealized appreciation/depreciation on investments		(41,271,956	)

Net Realized/Unrealized Gains/(Losses) on Investments		(6,302,516	)

Change in Net Assets Resulting From Operations	$	(8,610,674	)

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Oppenheimer Discovery Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $37,407 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Oppenheimer Funds, Inc. (“Oppenheimer”), Oppenheimer provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $4,021 was paid from the Fund relating to these fees and expenses.

During the year ended December 31, 2014, the Fund paid approximately $12,439 to affiliated broker/dealers of the Subadvisor on the execution of purchases and sales of the Fund’s portfolio investments.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $338,272,763. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Oppenheimer Discovery Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 37.32% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $18,748,247.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $1,775,809.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the period ended December 31, 2014, the AZL^® Pyramis Core Bond Fund returned 5.37%. That compared to a 5.97% total return for its benchmark, the Barclays U.S. Aggregate Bond Index¹.

The fixed-income market performed relatively well during the 12-month period. The U.S. economy continued to gain strength, but many global economies—including those in Europe, Japan, China, and Latin America—suffered from continued economic weakness. Meanwhile, investors remained watchful of geopolitical issues in areas such as Russia and Ukraine. The U.S. Federal Reserve wrapped up its long-running quantitative easing program in October, and signaled that it may raise short-term interest rates during the second half of 2015. The yield curve flattened amid expectations of a rate increase and broader concerns about the health of the global economy.

Late in the period, plunging energy prices led many investors to seek safety in the financial markets. That led to relatively poor performance of more risk-oriented areas of the fixed-income markets, such as corporate bonds and sovereign debt. This underperformance accelerated during the final two months of the year.

The Fund performed well during the first 10 months of the period, benefiting from strong security and sector selection. An overweight position in corporate bonds—particularly in the financial and telecommunications industries sectors—helped relative results. The Fund’s exposure to commercial mortgage backed securities also helped, as such securities performed relatively well.*

The Fund’s strategy changed during the final two months of the period. Beginning October 31, 2014, the Fund was able to add exposure to sectors such as high-yield bonds and emerging market debt. Over a full market cycle, we believe such holdings will lead to improved performance

Fund Objective

The Fund’s investment objective is to seek a high level of current income. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets in investment-grade debt securities (those of medium and high quality) of all types and repurchase agreements for those securities.

Investment Concerns

Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.

High-yield bonds have a higher risk of default or other adverse credit events, but have the potential to pay higher earnings over investment grade bonds. The higher risk of default, or the inability of the creditor to repay its debt, is the primary reason for the higher interest rates on high-yield bonds.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			Since Inception (9/5/12)
AZL^® Pyramis Core Bond Fund		5.37	%		1.57	%
Barclays U.S. Aggregate Bond Index		5.97	%		1.81	%


Expense Ratio¹	Gross
AZL^® Pyramis Core Bond Fund		0.83	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 0.95% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

As a shareholder of the AZL Pyramis Core Bond Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Principal Amount			Fair Value
	Asset Backed Securities (4.1%):
$	1,155,000	AmeriCredit Automobile Receivables Trust, Class D, Series 2012-5, 2.35%, 12/10/18	$	1,163,189
	900,000	AmeriCredit Automobile Receivables Trust, Class D, Series 2013-3, 3.00%, 7/8/19		915,193
	1,750,000	AmeriCredit Automobile Receivables Trust, Class C, Series 2013-4, 2.72%, 9/9/19		1,780,160
	1,750,000	AmeriCredit Automobile Receivables Trust, Class D, Series 2013-4, 3.31%, 10/8/19		1,778,536
	17,842	CFC LLC, Class A, Series 2013-1A, 1.65%, 7/17/17(a)		17,857
	4,220,000	CFC LLC, Class B, Series 2013-1A, 2.75%, 11/15/18(a)		4,270,719
	118,911	Countrywide Asset-Backed Certificates Trust, Class AF5, Series 2004-7, 5.87%, 1/25/35(b)		124,061
	1,130,000	Ford Credit Floorplan Master Owner Trust, Class C, Series 2013-3, 1.29%, 6/15/17		1,131,146
	1,130,000	Ford Credit Floorplan Master Owner Trust, Class D, Series 2013-3, 1.74%, 6/15/17		1,133,623
	387,000	Santander Drive Auto Receivables Trust, Class C, Series 2014-2, 2.33%, 11/15/19		387,925
	959,000	Santander Drive Auto Receivables Trust, Class B, Series 2014-3, 1.45%, 5/15/19		957,298
	963,000	Santander Drive Auto Receivables Trust, Class C, Series 2014-3, 2.13%, 8/17/20		958,687
	4,220,000	Santander Drive Auto Receivables Trust, Class C, Series 2014-4, 2.60%, 11/16/20		4,227,081

	Total Asset Backed Securities (Cost $18,789,934)			18,845,475

	Collateralized Mortgage Obligations (10.2%):
	103,884	Banc of America Commercial Mortgage Trust, Class A4, Series 2007-1, 5.45%, 1/15/49		111,335
	2,091,558	Banc of America Commercial Mortgage Trust, Class A4, Series 2006-3, 5.89%, 7/10/44(b)		2,201,346
	638,000	Banc of America Commercial Mortgage, Inc., Class A4, Series 2007-2, 5.78%, 4/10/49(b)		682,643
	189,000	CDGJ Commercial Mortgage Trust, Class DPA, Series 2014-BXCH, 3.15%, 12/15/27(a)(b)		189,060
	199,717	Citigroup Mortgage Loan Trust, Inc., Class A, Series 2012-A, 2.50%, 6/25/51(a)		194,000
	320,000	Extended Stay America Trust, Class BFL, Series 2013-ESFL, 1.26%, 12/5/31(a)(b)		319,196
	230,000	Extended Stay America Trust, Class CFL, Series 2013-ESFL, 1.66%, 12/5/31(a)(b)		229,689
	5,070,000	GE Capital Commercial Mortgage Corp., Class A4, Series 2007-C1, 5.54%, 12/10/49		5,387,777
	3,700,000	Granite Master Issuer plc, Class M2, Series 2006-1A, 0.75%, 12/20/54(a)(b)		3,612,248
	3,750,000	Granite Master Issuer plc, Class M2, Series 2006-3, 0.73%, 12/20/54(b)		3,658,446
	631,753	Greenwich Capital Commercial Funding Corp. Commercial Mortgage Trust, Class A4, Series 2007-GG9, 6.01%, 7/10/38(b)		660,367
	900,000	Greenwich Capital Commercial Funding Corp. Commercial Mortgage Trust, Class A4, Series 2007-GG9, 5.44%, 3/10/39		960,010


Principal Amount			Fair Value
	Collateralized Mortgage Obligations, continued
$	297,000	GS Mortgage Securities Trust, Class A4, Series 2006-GG6, 5.55%, 4/10/38(b)	$	304,770
	279,283	GS Mortgage Securities Trust, Class A4, Series 2006-GG8, 5.56%, 11/10/39		295,667
	4,112,000	Hilton USA Trust, Class DFX, Series 2013-HLT, 4.41%, 11/5/30(a)		4,205,704
	345,000	JPMorgan Chase Commercial Mortgage Securities Corp., Class A4, Series 2006-LDP7, 6.06%, 4/15/45(b)		360,239
	328,514	JPMorgan Chase Commercial Mortgage Securities Corp., Class A1A, Series 2006-LDP8, 5.40%, 5/15/45		345,541
	678,107	JPMorgan Chase Commercial Mortgage Securities Corp., Class A4, Series 2007-CB18, 5.44%, 6/12/47		721,013
	5,157,000	JPMorgan Chase Commercial Mortgage Securities Corp., Class A4, Series 2007-LD11, 5.97%, 6/15/49(b)		5,536,360
	127,000	JPMorgan Chase Commercial Mortgage Securities Corp., Class C, Series 2014-BXH, 1.81%, 4/15/27(a)(b)		126,472
	271,000	JPMorgan Chase Commercial Mortgage Securities Corp., Class D, Series 2014-BXH, 2.41%, 4/15/27(a)(b)		269,346
	3,909,608	LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 9/15/45(b)		4,295,302
	1,390,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Class A4, Series 2007-6, 5.48%, 3/12/51(b)		1,492,303
	462,993	Merrill Lynch/Countrywide Commercial Mortgage Trust, Class A4, Series 2007-5, 5.38%, 8/12/48		491,836
	2,628,210	Morgan Stanely Capital I, Class A4, Series 2007-IQ15, 6.10%, 7/11/17(b)		2,857,661
	1,970,000	Morgan Stanley Capital I, Class A4, Series 2007-IQ14, 5.69%, 4/15/49(b)		2,121,134
	321,288	Wachovia Bank Commercial Mortgage Trust, Class A1A, Series 2006-C26, 6.01%, 6/15/45(b)		340,193
	1,020,058	Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C33, 6.14%, 7/15/17(b)		1,089,901
	1,843,000	Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C31, 5.51%, 4/15/47		1,941,131
	322,000	Wachovia Bank Commercial Mortgage Trust, Class A5, Series 2007-C31, 5.50%, 4/15/47		346,980
	1,058,000	Wachovia Bank Commercial Mortgage Trust, Class A3, Series 2007-C32, 5.90%, 6/15/49(b)		1,135,650

	Total Collateralized Mortgage Obligations (Cost $47,444,171)			46,483,320

	Corporate Bonds (42.1%):
	Airlines (0.5%):
	1,000,000	American Airlines Group, Inc., 5.50%, 10/1/19(a)		1,017,500
	218,167	Continental Airlines 1998-1, Class A, Series 981, 6.65%, 9/15/17		226,064
	1,000,000	United Continental Holdings, Inc., 6.00%, 7/15/26, Callable 2/9/15 @ 100^		962,500

				2,206,064


Principal Amount			Fair Value
	Corporate Bonds, continued
	Automobiles (0.8%):
$	330,000	General Motors Co., 3.50%, 10/2/18	$	336,600
	453,000	General Motors Co., 6.25%, 10/2/43		541,154
	1,500,000	Volkswagen AG, 1.60%, 11/20/17(a)		1,494,513
	1,194,000	Volkswagen AG, 2.45%, 11/20/19^(a)		1,201,778

				3,574,045

	Banks (5.2%):
	320,000	Bank of America Corp., Series L, 1.35%, 11/21/16		319,090
	113,000	Bank of America Corp., 3.88%, 3/22/17		118,231
	1,200,000	Bank of America Corp., 2.00%, 1/11/18, MTN		1,199,088
	3,677,000	Bank of America Corp., 2.60%, 1/15/19		3,705,591
	872,000	Bank of America Corp., Series L, 2.65%, 4/1/19^		878,396
	550,000	Bank of America Corp., 5.70%, 1/24/22		637,140
	466,000	Bank of America Corp., 4.20%, 8/26/24		474,726
	397,000	Bank of America Corp., 4.25%, 10/22/26, MTN^		396,109
	534,000	Capital One NA, Series BNKT, 2.95%, 7/23/21		531,316
	250,000	Discover Bank, 7.00%, 4/15/20		294,636
	590,000	Discover Bank, Series BKNT, 3.20%, 8/9/21, Callable 7/9/21 @ 100		592,538
	4,000,000	First Tennessee Bank, 2.95%, 12/1/19, Callable 11/1/19 @ 100		3,989,723
	250,000	Huntington National Bank (The), Series BKNT, 1.30%, 11/20/16, Callable 10/20/16 @ 100		249,238
	400,000	Huntington National Bank (The), 2.20%, 4/1/19, Callable 3/1/19 @ 100		399,698
	1,587,000	JPMorgan Chase & Co., 3.88%, 9/10/24^		1,588,350
	3,682,000	JPMorgan Chase & Co., 4.13%, 12/15/26		3,685,718
	28,000	M&I Marshall & Ilsley Bank, Series BKNT, 5.00%, 1/17/17		29,716
	1,278,000	Regions Bank, Series BKNT, 7.50%, 5/15/18, MTN		1,483,624
	500,000	Regions Bank, 6.45%, 6/26/37		625,008
	500,000	Regions Financial Corp., 5.75%, 6/15/15		510,385
	88,000	Regions Financial Corp., 2.00%, 5/15/18, Callable 4/15/18 @ 100		87,137
	32,000	SunTrust Banks, Inc., Series BKNT, 3.50%, 1/20/17, Callable 12/20/16 @ 100		33,359
	181,000	SunTrust Banks, Inc., 2.35%, 11/1/18, Callable 10/1/18 @ 100		182,112
	1,200,000	Wachovia Bank NA, Series BKNT, 6.00%, 11/15/17^		1,345,096
	800,000	Wells Fargo & Co., 4.10%, 6/3/26, MTN		817,646

				24,173,671

	Biotechnology (0.6%):
	781,000	Amgen, Inc., 1.25%, 5/22/17		774,839
	1,937,000	Amgen, Inc., 2.20%, 5/22/19, Callable 4/22/19 @ 100^		1,928,858

				2,703,697

	Capital Markets (3.1%):
	147,000	Affiliated Managers Group, Inc., 4.25%, 2/15/24		153,154
	1,355,000	Goldman Sachs Group, Inc. (The), 6.25%, 9/1/17		1,507,641
	400,000	Goldman Sachs Group, Inc. (The), 1.75%, 9/15/17		397,670


Principal Amount			Fair Value
	Corporate Bonds, continued
	Capital Markets, continued
$	1,000,000	Goldman Sachs Group, Inc. (The), 6.15%, 4/1/18	$	1,122,419
	1,842,000	Goldman Sachs Group, Inc. (The), 2.90%, 7/19/18		1,889,671
	1,142,000	Goldman Sachs Group, Inc. (The), 2.63%, 1/31/19^		1,148,973
	399,000	Goldman Sachs Group, Inc. (The), 2.55%, 10/23/19^		397,543
	490,000	Morgan Stanley, Series G, 5.45%, 1/9/17, MTN		526,120
	458,000	Morgan Stanley, 1.88%, 1/5/18		456,324
	1,300,000	Morgan Stanley, Series F, 6.63%, 4/1/18, MTN		1,480,746
	1,380,000	Morgan Stanley, 2.13%, 4/25/18		1,380,799
	2,060,000	Morgan Stanley, 2.50%, 1/24/19^		2,061,867
	784,000	Morgan Stanley, Series G, 2.38%, 7/23/19^		781,109
	523,000	Morgan Stanley, 4.88%, 11/1/22		555,467
	68,000	Retail Opportunity Investments Corp., 5.00%, 12/15/23, Callable 9/15/23 @ 100		73,711
	104,000	Retail Opportunity Investments Corp., 4.00%, 12/15/24, Callable 9/15/24 @ 100		104,216

				14,037,430

	Construction Materials (0.2%):
	800,000	Building Materials Corp., 5.38%, 11/15/24, Callable 11/15/19 @ 102.39(a)		798,000

	Consumer Finance (3.4%):
	2,750,000	Ally Financial, Inc., 3.75%, 11/18/19		2,708,749
	900,000	APX Group, Inc., 6.38%, 12/1/19, Callable 12/1/15 @ 104.78^		861,750
	320,000	Capital One Financial Corp., 2.45%, 4/24/19, Callable 3/24/19 @ 100		319,267
	1,000,000	Ford Motor Credit Co. LLC, 2.50%, 1/15/16^		1,011,186
	1,140,000	Ford Motor Credit Co. LLC, 1.50%, 1/17/17		1,133,865
	324,000	Ford Motor Credit Co. LLC, 3.00%, 6/12/17		332,426
	600,000	Ford Motor Credit Co. LLC, 5.00%, 5/15/18		651,929
	600,000	Ford Motor Credit Co. LLC, 2.88%, 10/1/18^		610,527
	1,100,000	Ford Motor Credit Co. LLC, 2.38%, 3/12/19^		1,092,342
	1,000,000	Ford Motor Credit Co. LLC, 2.60%, 11/4/19		994,621
	751,000	Ford Motor Credit Co. LLC, 5.88%, 8/2/21		869,499
	902,000	Ford Motor Credit Co. LLC, 4.38%, 8/6/23		964,279
	68,000	Lazard Group LLC, 6.85%, 6/15/17		75,698
	186,000	Lazard Group LLC, 4.25%, 11/14/20		196,035
	48,000	NiSource Finance Corp., 6.40%, 3/15/18		54,669
	1,600,000	NiSource Finance Corp., 4.45%, 12/1/21, Callable 9/1/21 @ 100		1,728,801
	900,000	SLM Corp., 5.50%, 1/15/19		920,250
	94,000	Synchrony Financial, 1.88%, 8/15/17, Callable 7/15/17 @ 100		94,183
	138,000	Synchrony Financial, 3.00%, 8/15/19, Callable 7/15/19 @ 100		139,510
	510,000	Synchrony Financial, 3.75%, 8/15/21, Callable 6/15/21 @ 100		520,959
	210,000	Synchrony Financial, 4.25%, 8/15/24, Callable 5/15/24 @ 100^		215,487

				15,496,032


Principal Amount			Fair Value
	Corporate Bonds, continued
	Diversified Financial Services (4.5%):
$	270,000	Bank of America NA, Series BKNT, 5.30%, 3/15/17	$	290,025
	500,000	Citigroup, Inc., 1.70%, 7/25/16		503,425
	570,000	Citigroup, Inc., 1.30%, 11/15/16		569,297
	900,000	Citigroup, Inc., 6.00%, 8/15/17		995,732
	1,043,000	Citigroup, Inc., 6.13%, 11/21/17		1,163,033
	910,000	Citigroup, Inc., 1.85%, 11/24/17		908,954
	1,200,000	Citigroup, Inc., 2.50%, 9/26/18		1,214,021
	1,271,000	Citigroup, Inc., 2.55%, 4/8/19^		1,279,359
	1,573,000	Citigroup, Inc., 2.50%, 7/29/19		1,574,262
	730,000	Citigroup, Inc., 4.05%, 7/30/22		755,302
	769,000	Citigroup, Inc., 5.30%, 5/6/44^		842,569
	1,000,000	Discover Financial Services, 5.20%, 4/27/22		1,104,405
	110,000	General Motors Financial Co., Inc., 2.63%, 7/10/17^		110,477
	180,000	General Motors Financial Co., Inc., 4.75%, 8/15/17^		189,828
	242,000	General Motors Financial Co., Inc., 3.00%, 9/25/17^		244,730
	175,000	General Motors Financial Co., Inc., 3.25%, 5/15/18		175,219
	383,000	General Motors Financial Co., Inc., 3.50%, 7/10/19^		391,090
	5,763,000	General Motors Financial Co., Inc., 4.38%, 9/25/21^		6,015,130
	200,000	General Motors Financial Co., Inc., 4.25%, 5/15/23^		203,978
	112,000	Hyundai Capital America, Inc., 1.63%, 10/2/15(a)		112,459
	378,000	Hyundai Capital America, Inc., 1.45%, 2/6/17^(a)		376,579
	124,000	Hyundai Capital America, Inc., 2.13%, 10/2/17(a)		124,605
	161,000	Hyundai Capital America, Inc., 2.88%, 8/9/18(a)		164,252
	378,000	Hyundai Capital America, Inc., 2.55%, 2/6/19(a)		378,052
	444,000	JPMorgan Chase Bank NA, Series BKNT, 6.00%, 10/1/17		492,789
	161,000	Tanger Properties LP, 3.88%, 12/1/23, Callable 9/1/23 @ 100		164,823
	275,000	Tanger Properties LP, 3.75%, 12/1/24, Callable 9/1/24 @ 100		277,132

				20,621,527

	Diversified Telecommunication Services (1.9%):
	820,000	CenturyLink, Inc., Series N, 6.00%, 4/1/17^		871,250
	28,000	CenturyLink, Inc., Series R, 5.15%, 6/15/17^		29,330
	62,000	CenturyLink, Inc., Series Q, 6.15%, 9/15/19		66,960
	582,000	Verizon Communications, Inc., 2.63%, 2/21/20(a)		575,346
	3,751,000	Verizon Communications, Inc., 4.50%, 9/15/20		4,072,674
	346,000	Verizon Communications, Inc., 6.40%, 9/15/33		426,197
	500,000	Verizon Communications, Inc., 6.25%, 4/1/37		613,623
	760,000	Verizon Communications, Inc., 6.55%, 9/15/43		973,673
	930,000	Verizon Communications, Inc., 5.01%, 8/21/54(a)		962,131

				8,591,184

	Electric Utilities (2.1%):
	146,000	American Transmission Systems, Inc., 5.00%, 9/1/44, Callable 3/1/44 @ 100(a)		156,186


Principal Amount			Fair Value
	Corporate Bonds, continued
	Electric Utilities, continued
$	1,000,000	Dynegy Finance I, Inc. / Dynegy Finance II, Inc., 7.38%, 11/1/22, Callable 11/1/18 @ 103.69(a)	$	1,017,500
	482,000	FirstEnergy Corp., Series A, 2.75%, 3/15/18, Callable 2/15/18 @ 100		485,725
	1,544,000	FirstEnergy Corp., Series B, 4.25%, 3/15/23, Callable 12/15/22 @ 100^		1,593,121
	3,583,000	FirstEnergy Corp., Series C, 7.38%, 11/15/31		4,336,742
	34,000	Ingersoll-Rand Global Holding Co., Ltd., 2.88%, 1/15/19		34,536
	91,000	Northeast Utilities, 1.45%, 5/1/18, Callable 4/1/18 @ 100		89,618
	117,000	NV Energy, Inc., 6.25%, 11/15/20^		137,460
	600,000	Progress Energy, Inc., 4.40%, 1/15/21, Callable 10/15/20 @ 100		653,963
	49,000	Puget Energy, Inc., 6.00%, 9/1/21		57,323
	1,000,000	West Penn Power Co., 5.95%, 12/15/17(a)		1,113,168

				9,675,342

	Energy Equipment & Services (0.2%):
	985,000	Pemex Proj FDG Master TR, 5.75%, 3/1/18		1,063,800

	Food & Staples Retailing (0.4%):
	370,000	Kroger Co. (The), 3.30%, 1/15/21, Callable 12/15/20 @ 100		375,473
	1,000,000	Post Holdings, Inc., 6.75%, 12/1/21, Callable 12/1/17 @ 103.38^(a)		970,001
	229,000	Walgreens Boots Alliance, Inc., 2.70%, 11/18/19, Callable 10/18/19 @ 100		230,165
	271,000	Walgreens Boots Alliance, Inc., 3.30%, 11/18/21, Callable 9/18/21 @ 100		272,885

				1,848,524

	Food Products (0.2%):
	130,000	ConAgra Foods, Inc., 1.90%, 1/25/18		129,134
	110,000	ConAgra Foods, Inc., 3.20%, 1/25/23, Callable 10/25/22 @ 100		107,747
	216,000	Wm. Wrigley Jr. Co., 1.40%, 10/21/16(a)		216,175
	309,000	Wm. Wrigley Jr. Co., 2.00%, 10/20/17(a)		311,229

				764,285

	Health Care Equipment & Supplies (0.1%):
	138,000	Becton Dickinson & Co., 2.68%, 12/15/19		139,815
	128,000	Becton Dickinson & Co., 4.69%, 12/15/44, Callable 6/15/44 @ 100		137,851

				277,666

	Health Care Providers & Services (1.2%):
	1,000,000	Community Health System, Inc., 6.88%, 2/1/22, Callable 2/1/18 @ 103.44^		1,059,375
	500,000	Express Scripts Holding Co., 4.75%, 11/15/21		551,777
	1,600,000	Express Scripts Holding Co., 3.90%, 2/15/22		1,666,130
	300,000	McKesson Corp., 2.28%, 3/15/19		299,374
	1,900,000	Tenet Healthcare Corp., 8.13%, 4/1/22		2,123,249

				5,699,905

	Health Care Services (0.2%):
	900,000	HCA, Inc., 6.50%, 2/15/20		1,008,450


Principal Amount			Fair Value
	Corporate Bonds, continued
	Household Durables (0.2%):
$	900,000	William Lyon Homes, Inc., 8.50%, 11/15/20, Callable 11/15/16 @ 104.25	$	969,750

	Independent Power and Renewable Electricity Producers (1.1%):
	900,000	AES Corp., 4.88%, 5/15/23, Callable 3/15/18 @ 102.44		893,250
	1,313,000	Dominion Resources, Inc., Series 06-B, 2.56%, 9/30/66, Callable 1/29/15 @ 100(b)		1,234,549
	1,000,000	Murray Energy Corp., 8.63%, 6/15/21, Callable 6/15/16 @ 106.47(a)		955,000
	900,000	NRG Energy, Inc., 6.25%, 5/1/24, Callable 5/1/19 @ 103.13(a)		915,750
	863,754	NSG Holdings, LLC / NSG Holdings, Inc., 7.75%, 12/15/25(a)		919,898

				4,918,447

	Insurance (2.1%):
	307,000	American International Group, Inc., Series G, 5.60%, 10/18/16, MTN^		329,895
	103,000	American International Group, Inc., 4.88%, 6/1/22		115,704
	600,000	Aon plc, 5.00%, 9/30/20		669,973
	1,100,000	Five Corners Funding Trust, 4.42%, 11/15/23(a)		1,159,052
	59,000	Hartford Financial Services Group, Inc. (The), 5.13%, 4/15/22		66,321
	700,000	Liberty Mutual Group, Inc., 5.00%, 6/1/21(a)		762,511
	180,000	Liberty Mutual Group, Inc., 4.25%, 6/15/23(a)		185,486
	978,000	Marsh & McLennan Cos., Inc., 4.80%, 7/15/21, Callable 4/15/21 @ 100		1,086,968
	291,000	MetLife Global Funding, Inc., 1.88%, 6/22/18(a)		290,806
	300,000	Northwestern Mutual Life Insurance Co. (The), 6.06%, 3/30/40(a)		387,786
	1,077,000	Pacific Life Corp., 6.00%, 2/10/20(a)		1,224,207
	500,000	Pacific Life Corp., 9.25%, 6/15/39(a)		786,502
	436,000	Pacific Life Corp., 5.13%, 1/30/43(a)		479,504
	50,000	Prudential Financial, Inc., 2.30%, 8/15/18		50,579
	65,000	Symetra Financial Corp., 6.13%, 4/1/16(a)		68,194
	497,000	Teachers Insurance & Annuity Association of America, 4.90%, 9/15/44(a)		553,831
	114,000	Tiaa Asset Management Finance LLC, 2.95%, 11/1/19(a)		114,221
	165,000	Tiaa Asset Management Finance LLC, 4.13%, 11/1/24(a)		169,029
	854,000	Unum Group, 5.75%, 8/15/42		988,100

				9,488,669

	Life Sciences Tools & Services (0.0%):
	104,000	Thermo Fisher Scientific, Inc., 1.30%, 2/1/17		103,418
	66,000	Thermo Fisher Scientific, Inc., 2.40%, 2/1/19^		66,098

				169,516

	Media (1.3%):
	750,000	Comcast Corp., 4.75%, 3/1/44		835,794
	134,000	COX Communications, Inc., 3.25%, 12/15/22(a)		131,566
	800,000	McGraw-Hill Global Education Holdings, LLC, 9.75%, 4/1/21, Callable 4/16/21 @ 107.31		884,000
	395,000	News America, Inc., 7.75%, 12/1/45		594,199
	101,000	Time Warner Cable, Inc., 5.85%, 5/1/17		110,246


Principal Amount			Fair Value
	Corporate Bonds, continued
	Media, continued
$	716,000	Time Warner Cable, Inc., 8.25%, 4/1/19	$	876,486
	1,000,000	Time Warner Cable, Inc., 4.13%, 2/15/21, Callable 11/15/20 @ 100		1,070,191
	623,000	Time Warner Cable, Inc., 4.00%, 9/1/21, Callable 6/1/21 @ 100		663,054
	775,000	Time Warner, Inc., 2.10%, 6/1/19^		763,534
	46,000	Viacom, Inc., 2.50%, 9/1/18		46,407

				5,975,477

	Metals & Mining (0.1%):
	274,000	Alcoa, Inc., 5.13%, 10/1/24, Callable 7/1/24 @ 100^		290,377

	Multi-Utilities (0.1%):
	305,000	FirstEnergy Solutions Co., 6.05%, 8/15/21^		337,736
	56,000	PG&E Corp., 2.40%, 3/1/19, Callable 2/1/19 @ 100^		56,085

				393,821

	Oil, Gas & Consumable Fuels (3.6%):
	800,000	Access Midstream Partner, 4.88%, 3/15/24, Callable 3/15/19 @ 102.43		812,000
	3,900,000	Anadarko Petroleum Corp., 6.38%, 9/15/17		4,336,028
	404,000	Berkshire Hathaway Energy Co., 2.00%, 11/15/18, Callable 10/15/18 @ 100		403,158
	166,000	DCP Midstream Operating LLC, 2.50%, 12/1/17, Callable 11/1/17 @ 100		165,809
	37,000	DCP Midstream Operating LLC, 2.70%, 4/1/19, Callable 3/1/19 @ 100		36,219
	500,000	DCP Midstream Operating LLC, 5.35%, 3/15/20(a)		523,319
	1,300,000	DCP Midstream Operating LLC, 4.75%, 9/30/21(a)		1,290,760
	163,000	DCP Midstream Operating LLC, 3.88%, 3/15/23, Callable 12/15/22 @ 100		155,981
	1,000,000	El Paso Pipeline Partners LP, 5.00%, 10/1/21, Callable 7/1/21 @ 100		1,051,730
	117,000	Enable Midstream Partners LP, 2.40%, 5/15/19, Callable 4/15/19 @ 100(a)		113,794
	124,000	Enable Midstream Partners LP, 3.90%, 5/15/24, Callable 2/15/24 @ 100^(a)		119,522
	1,995,000	Ep Energy LLC, 9.38%, 5/1/20, Callable 5/1/16 @ 104.69^		2,014,950
	5,000	Ep Energy LLC, 7.75%, 9/1/22, Callable 9/1/17 @ 103.88^		4,675
	168,000	Kinder Morgan (Delaware), Inc., 2.00%, 12/1/17		166,961
	157,000	Kinder Morgan Energy Partners LP, 2.65%, 2/1/19^		154,694
	600,000	Marathon Petroleum Corp., 5.13%, 3/1/21		655,822
	1,300,000	Phillips 66, 4.30%, 4/1/22		1,372,398
	346,000	Southeast Supply Header LLC, 4.25%, 6/15/24, Callable 3/15/24 @ 100(a)		350,639
	647,000	Western Gas Partners LP, 5.38%, 6/1/21, Callable 3/1/21 @ 100		709,848
	299,000	Williams Cos., Inc., 3.70%, 1/15/23, Callable 10/15/22 @ 100		268,528
	1,466,000	Williams Cos., Inc., 4.55%, 6/24/24, Callable 3/24/24 @ 100		1,363,352


Principal Amount			Fair Value
	Corporate Bonds, continued
	Oil, Gas & Consumable Fuels, continued
$	285,000	Williams Partners LP, 4.30%, 3/4/24, Callable 12/4/23 @ 100^	$	284,476

				16,354,663

	Pharmaceuticals (0.2%):
	355,000	AbbVie, Inc., 1.75%, 11/6/17		355,771
	205,000	Bayer US Finance LLC, 3.00%, 10/8/21(a)		206,667
	121,000	Mylan, Inc., 1.35%, 11/29/16^		120,404
	117,000	Watson Pharmaceuticals, Inc., 1.88%, 10/1/17		116,547
	57,000	Zoetis, Inc., 1.88%, 2/1/18		56,487

				855,876

	Real Estate Investment Trusts (REITs) (4.2%):
	82,000	Alexandria Real Estate Equities, Inc., 2.75%, 1/15/20, Callable 12/15/19 @ 100		81,216
	102,000	American Campus Communities, Inc., 3.75%, 4/15/23, Callable 1/15/23 @ 100		101,824
	161,000	AvalonBay Communities, Inc., 3.63%, 10/1/20, Callable 7/1/20 @ 100		167,455
	1,159,000	BioMed Realty LP, 3.85%, 4/15/16, Callable 3/15/16 @ 100		1,196,853
	215,000	BioMed Realty LP, 2.63%, 5/1/19, Callable 4/1/19 @ 100		214,811
	500,000	BioMed Realty LP, 4.25%, 7/15/22, Callable 4/15/22 @ 100		518,259
	151,000	Brandywine Operating Partners LP, 6.00%, 4/1/16		159,285
	279,000	Brandywine Operating Partners LP, 4.95%, 4/15/18, Callable 3/15/18 @ 100		299,912
	357,000	Brandywine Operating Partners LP, 3.95%, 2/15/23, Callable 11/15/22 @ 100		360,033
	394,000	Brandywine Operating Partners LP, 4.10%, 10/1/24, Callable 7/1/24 @ 100		394,792
	394,000	Brandywine Operating Partners LP, 4.55%, 10/1/29, Callable 7/1/29 @ 100		398,414
	134,000	Camden Property Trust, 2.95%, 12/15/22		130,710
	1,625,000	CBRE Services, Inc., 5.00%, 3/15/23, Callable 3/15/18 @ 102.5		1,660,587
	255,000	Corporate Office Properties LP, 3.70%, 6/15/21, Callable 4/15/21 @ 100		253,896
	1,000,000	DDR Corp., 7.50%, 4/1/17		1,120,382
	1,114,000	DDR Corp., 4.63%, 7/15/22, Callable 4/15/22 @ 100		1,189,204
	700,000	Duke Realty Corp., 4.38%, 6/15/22, Callable 3/15/22 @ 100		740,993
	256,000	Duke Realty Corp., 3.88%, 10/15/22, Callable 7/15/22 @ 100		263,627
	183,000	Duke Realty Corp., 3.63%, 4/15/23, Callable 1/15/23 @ 100		183,710
	146,000	Duke Realty LP, 3.75%, 12/1/24, Callable 9/1/24 @ 100		147,724
	70,000	Equity Commonwealth, 5.88%, 9/15/20, Callable 3/15/20 @ 100		77,009
	500,000	Equity One, Inc., 3.75%, 11/15/22, Callable 8/15/22 @ 100		501,847
	62,000	Essex Portfolio LP, 5.50%, 3/15/17		67,142
	500,000	HCP, Inc., 3.15%, 8/1/22, Callable 5/1/22 @ 100		491,914


Principal Amount			Fair Value
	Corporate Bonds, continued
	Real Estate Investment Trusts (REITs), continued
$	255,000	HCP, Inc., 4.25%, 11/15/23, Callable 8/15/23 @ 100	$	268,065
	800,000	HCP, Inc., 3.88%, 8/15/24, Callable 5/15/24 @ 100		812,654
	48,000	Health Care REIT, Inc., 4.70%, 9/15/17		51,574
	143,000	Health Care REIT, Inc., 2.25%, 3/15/18		143,895
	500,000	Health Care REIT, Inc., 4.13%, 4/1/19, Callable 1/1/19 @ 100		531,698
	135,000	Lexington Realty Trust, 4.40%, 6/15/24, Callable 3/15/24 @ 100		136,490
	1,000,000	Liberty Property LP, 4.13%, 6/15/22, Callable 3/15/22 @ 100		1,036,626
	184,000	Liberty Property LP, 3.38%, 6/15/23, Callable 3/15/23 @ 100		179,384
	303,000	Mack-Cali Realty LP, 5.80%, 1/15/16		315,970
	250,000	Mack-Cali Realty LP, 2.50%, 12/15/17		250,999
	500,000	Mack-Cali Realty LP, 4.50%, 4/18/22, Callable 1/18/22 @ 100		503,475
	401,000	Mack-Cali Realty LP, 3.15%, 5/15/23, Callable 2/15/23 @ 100		367,201
	1,573,000	Mid-America Apartments LP, 4.30%, 10/15/23, Callable 7/15/23 @ 100		1,655,105
	126,000	Omega Healthcare Investors, Inc., 4.95%, 4/1/24, Callable 1/1/24 @ 100		131,121
	128,000	Omega Healthcare Investors, Inc., 4.50%, 1/15/25, Callable 10/15/24 @ 100(a)		126,694
	70,000	Post Apartment Homes LP, 3.38%, 12/1/22, Callable 9/1/22 @ 100		68,976
	80,000	PPF Funding, Inc., 5.70%, 4/15/17(a)		85,207
	116,000	Reckson Operating Partnership LP, 6.00%, 3/31/16		122,279
	900,000	Sabra Healthcare REIT, Inc., 5.50%, 2/1/21, Callable 2/1/17 @ 104.13		936,000
	63,000	Ventas Realty LP/Capital Corp., 1.55%, 9/26/16		63,253
	190,000	Ventas Realty LP/Capital Corp., 1.25%, 4/17/17		188,231
	225,000	Ventas Realty LP/Capital Corp., 2.00%, 2/15/18, Callable 1/15/18 @ 100^		225,199
	111,000	Ventas Realty LP/Capital Corp., 4.00%, 4/30/19, Callable 1/30/19 @ 100		117,469
	67,000	Weingarten Realty Investors, 3.38%, 10/15/22, Callable 7/15/22 @ 100		66,236

				19,105,400

	Retail (0.3%):
	1,500,000	J.C. Penney Corp., Inc., 8.13%, 10/1/19		1,320,000

	Road & Rail (0.2%):
	1,000,000	Hertz Corp., 6.75%, 4/15/19, Callable 4/15/15 @ 103.38		1,030,000

	Specialized Finance (0.2%):
	1,100,000	ILFC E-Captial Trust I, 4.37%, 12/21/65, Callable 2/9/15 @ 100(a)(b)		1,023,000

	Steel (0.2%):
	1,000,000	JMC Steel Group, 8.25%, 3/15/18, Callable 2/9/15 @ 106.19(a)		950,000


Principal Amount			Fair Value
	Corporate Bonds, continued
	Technology Hardware, Storage & Peripherals (0.1%):
$	300,000	Xerox Corp., 4.25%, 2/15/15	$	301,185
	354,000	Xerox Corp., 2.95%, 3/15/17		363,738

				664,923

	Tobacco (0.8%):
	1,000,000	Altria Group, Inc., 2.63%, 1/14/20, Callable 12/14/19 @ 100		1,002,903
	1,100,000	Altria Group, Inc., 2.85%, 8/9/22		1,068,866
	212,000	Altria Group, Inc., 4.00%, 1/31/24		221,027
	186,000	Reynolds American, Inc., 3.25%, 11/1/22		181,172
	600,000	Reynolds American, Inc., 7.25%, 6/15/37		770,690
	400,000	Reynolds American, Inc., 4.75%, 11/1/42^		388,220

				3,632,878

	Trading Companies & Distributors (0.5%):
	200,000	Air Lease Corp., 2.13%, 1/15/18		196,500
	334,000	Air Lease Corp., 4.75%, 3/1/20		354,875
	379,000	Air Lease Corp., 3.88%, 4/1/21, Callable 3/1/21 @ 100		380,895
	1,331,000	Air Lease Corp., 4.25%, 9/15/24, Callable 6/15/24 @ 100		1,340,983

				2,273,253

	Wireless Telecommunication Services (2.3%):
	2,100,000	Alcatel-Lucent USA, Inc., 6.75%, 11/15/20, Callable 11/15/16 @ 103.34^(a)		2,216,550
	233,000	Embarq Corp., 7.08%, 6/1/16		251,085
	2,990,000	Embarq Corp., 8.00%, 6/1/36		3,341,325
	1,000,000	Level 3 Financing, Inc., 7.00%, 6/1/20, Callable 6/1/16 @ 103.5		1,053,750
	900,000	Sprint Capital Corp., 6.90%, 5/1/19		918,000
	2,500,000	T-Mobile USA, Inc., 6.38%, 3/1/25, Callable 9/1/19 @ 103.19		2,540,000

				10,320,710

	Total Corporate Bonds (Cost $191,404,428)			192,276,382

	Yankee Dollars (14.1%):
	Airlines (0.5%):
	1,000,000	Air Canada, 6.75%, 10/1/19, Callable 10/1/16 @ 103.38(a)		1,040,000
	1,100,000	Air Canada, 7.75%, 4/15/21^(a)		1,145,375

				2,185,375

	Banks (3.8%):
	365,000	Banco Nacional de Desenvolvimento Economico, 3.38%, 9/26/16(a)		366,241
	754,000	Banco Nacional de Desenvolvimento Economico, 6.37%, 6/16/18(a)		803,764
	1,820,000	Banco Nacional de Desenvolvimento Economico, 4.00%, 4/14/19(a)		1,792,700
	126,000	Banco Nacional de Desenvolvimento Economico, 6.50%, 6/10/19(a)		133,560
	966,000	Banco Nacional de Desenvolvimento Economico, 5.50%, 7/12/20(a)		996,091
	334,000	Banco Nacional de Desenvolvimento Economico, 5.75%, 9/26/23(a)		344,020
	200,000	Barclays Bank plc, 2.50%, 2/20/19		202,657


Principal Amount			Fair Value
	Yankee Dollars, continued
	Banks, continued
$	42,000	Credit Suisse, NY, 6.00%, 2/15/18	$	46,720
	205,000	HSBC Holdings plc, 4.25%, 3/14/24		213,319
	1,161,000	Intesa Sanpaolo SpA, 3.13%, 1/15/16		1,179,350
	2,700,000	Intesa Sanpaolo SpA, 2.38%, 1/13/17		2,723,632
	2,550,000	Royal Bank of Scotland Group plc, 6.13%, 12/15/22^		2,775,436
	452,000	Royal Bank of Scotland Group plc, 6.10%, 6/10/23		490,237
	1,659,000	Royal Bank of Scotland Group plc, 6.00%, 12/19/23		1,795,698
	2,212,000	Royal Bank of Scotland Group plc, 5.13%, 5/28/24		2,250,027
	1,000,000	Sumitomo Mitsui Banking Corp., 1.30%, 1/10/17^		998,105
	700,000	UBS AG Stamford CT, 2.38%, 8/14/19		699,959

				17,811,516

	Commercial Services & Supplies (0.2%):
	1,000,000	GardaWorld Security Corp., 7.25%, 11/15/21, Callable 11/15/16 @ 105.44(a)		990,000

	Containers & Packaging (0.0%):
	75,000	Tyco Electronics Group SA, 2.38%, 12/17/18, Callable 11/17/18 @ 100		75,646

	Diversified Financial Services (0.4%):
	900,000	AerCap Ireland Capital, Ltd./ and AerCap Global Aviation Trust, 5.00%, 10/1/21^(a)		931,500
	900,000	BP Capital Markets plc, 4.74%, 3/11/21		979,658

				1,911,158

	Food & Staples Retailing (0.5%):
	2,150,000	JBS Investments GMBH, 7.75%, 10/28/20, Callable 10/28/17 @ 103.88(a)		2,226,325

	Hotels, Resorts & Cruise Lines (0.2%):
	800,000	Royal Caribbean Cruises, 7.50%, 10/15/27		900,000

	Insurance (0.0%):
	200,000	AIA Group, Ltd., 2.25%, 3/11/19(a)		199,106

	Media (0.3%):
	1,000,000	Columbus International, Inc., 7.38%, 3/30/21, Callable 3/30/18 @ 103.69(a)		1,040,000
	123,000	Thomson Reuters Corp., 1.30%, 2/23/17		122,355
	314,000	Thomson Reuters Corp., 3.85%, 9/29/24, Callable 6/29/24 @ 100		317,449

				1,479,804

	Metals & Mining (0.3%):
	200,000	Codelco, Inc., 5.63%, 10/18/43(a)		225,689
	200,000	Codelco, Inc., 4.88%, 11/4/44(a)		203,133
	1,000,000	Vale Overseas, Ltd., 6.25%, 1/11/16		1,039,600

				1,468,422

	Miscellaneous Manufacturing (0.5%):
	107,000	Ingersoll-Rand Lux Financial Holding, 2.63%, 5/1/20, Callable 4/1/20 @ 100		106,307
	2,100,000	Trinseo Materials Operating SCA, 8.75%, 2/1/19, Callable 8/1/15 @ 104.38		2,128,875

				2,235,182


Principal Amount			Fair Value
	Yankee Dollars, continued
	Oil, Gas & Consumable Fuels (4.5%):
$	164,000	Canadian Natural Resources, Ltd., 1.75%, 1/15/18	$	163,035
	676,000	Canadian Natural Resources, Ltd., 3.90%, 2/1/25, Callable 11/1/24 @ 100^		666,378
	330,000	Empresa Nacional del Petroleo, 4.38%, 10/30/24(a)		322,795
	762,000	Petrobras Global Finance BV, 3.25%, 3/17/17		718,185
	1,080,000	Petrobras Global Finance BV, 3.00%, 1/15/19^		954,796
	2,613,000	Petrobras Global Finance BV, 4.88%, 3/17/20		2,444,487
	234,000	Petrobras Global Finance BV, 4.38%, 5/20/23		201,259
	823,000	Petrobras Global Finance BV, 5.63%, 5/20/43		670,951
	1,793,000	Petrobras Global Finance BV, 7.25%, 3/17/44		1,770,587
	1,000,000	Petrobras International Finance Co., 3.50%, 2/6/17^		954,910
	1,087,000	Petrobras International Finance Co., 5.75%, 1/20/20^		1,049,727
	3,241,000	Petrobras International Finance Co., 5.38%, 1/27/21		3,003,013
	2,000,000	Petroleos de Venezuela SA, 8.50%, 11/2/17^(a)		1,144,000
	450,000	Petroleos Mexicanos, 3.50%, 7/18/18		455,625
	237,000	Petroleos Mexicanos, 8.00%, 5/3/19		280,253
	151,000	Petroleos Mexicanos, 6.00%, 3/5/20^		169,498
	285,000	Petroleos Mexicanos, 3.50%, 1/30/23		272,603
	1,169,000	Petroleos Mexicanos, 4.88%, 1/18/24		1,214,591
	696,000	Petroleos Mexicanos, 6.50%, 6/2/41		798,660
	1,761,000	Petroleos Mexicanos, 5.50%, 6/27/44		1,796,219
	1,000,000	Transocean, Inc., 5.05%, 12/15/16		1,004,788

				20,056,360

	Paper & Forest Products (0.2%):
	900,000	Sappi, Ltd., 6.63%, 4/15/21(a)		922,500

	Pharmaceuticals (0.3%):
	774,000	Actavis Funding SCS, 1.30%, 6/15/17		759,901
	230,000	Actavis Funding SCS, 2.45%, 6/15/19		226,078
	200,000	Perrigo Co. PLC, 2.30%, 11/8/18		199,842
	200,000	Perrigo Finance PLC, 3.50%, 12/15/21, Callable 10/15/21 @ 100		202,333
	200,000	Perrigo Finance PLC, 3.90%, 12/15/24, Callable 9/15/24 @ 100		203,659

				1,591,813

	Sovereign Bonds (1.1%):
	255,000	Italy Government International Bond, 5.38%, 6/12/17		276,864
	1,170,000	Republic of Argentina, 1.74%, 10/3/15		1,154,790
	1,500,000	Republic of Belarus, 8.95%, 1/26/18		1,375,350
	1,500,000	Republic of Indonesia, 5.38%, 10/17/23		1,635,000

				4,442,004

	Thrifts & Mortgage Finance (0.0%):
	200,000	RBS Citizens Financial Group, Inc., 4.15%, 9/28/22(a)		204,707

	Transportation & Shipping (0.2%):
	900,000	Navios Maritime Holdings/Finance, 7.38%, 1/15/22, Callable 1/15/17 @ 106(a)		823,500


Principal Amount			Fair Value
	Yankee Dollars, continued
	Wireless Telecommunication Services (1.1%):
$	1,000,000	Altice SA, 9.88%, 12/15/20(a)	$	1,068,932
	2,000,000	Altice SA, 7.75%, 5/15/22, Callable 5/15/17 @ 106(a)		2,003,750
	2,100,000	Digicel Group, Ltd., 8.25%, 9/30/20, Callable 9/30/16 @ 104.13(a)		2,037,000

				5,109,682

	Total Yankee Dollars (Cost $66,537,738)			64,633,100

	Municipal Bonds (5.0%):
	California (1.6%):
	10,000	California State, Build America Bonds, GO, 7.35%, 11/1/39		14,812
	15,000	California State, Build America Bonds, GO, 7.63%, 3/1/40		23,025
	2,825,000	California State, Build America Bonds, GO, 7.60%, 11/1/40		4,407,932
	400,000	California State, Build America Bonds, GO, 7.50%, 4/1/34		594,632
	1,125,000	California State, Build America Bonds, GO, 7.55%, 4/1/39		1,736,089
	460,000	California State, Build America Bonds, GO, 7.30%, 10/1/39		677,575

				7,454,065

	Illinois (3.4%):
	35,000	Illinois State, GO, 4.96%, 3/1/16		36,461
	15,000	Illinois State, GO, 5.37%, 3/1/17		16,058
	35,000	Illinois State, GO, 4.35%, 6/1/18		36,524
	5,665,000	Illinois State, GO, 5.10%, 6/1/33		5,623,588
	455,000	Illinois State, GO, 1.28%, 12/1/15		455,491
	420,000	Illinois State, GO, 4.00%, 12/1/20		423,641
	565,000	Illinois State, GO, 5.67%, 3/1/18		618,692
	880,000	Illinois State, GO, 5.88%, 3/1/19		971,626
	1,935,000	Illinois State, Build America Bonds, GO, 7.35%, 7/1/35		2,276,044
	105,000	Chicago Illinois, Taxable Project, GO, Series B, 5.43%, 1/1/42		98,905
	770,000	Chicago Illinois, Taxable Project, GO, Series B, 6.31%, 1/1/44		815,692
	80,000	Chicago Illinois, GO, Series B, 5.63%, 1/1/22		85,629
	395,000	Chicago Illinois, Taxable Project, GO, Series C1, 7.78%, 1/1/35		468,794
	315,000	Illinois State, Build America Bonds, GO, Series 3, 6.73%, 4/1/35		352,397
	10,000	Illinois State, Build America Bonds, GO, Series 3, 5.55%, 4/1/19		10,783
	2,500,000	Illinois State Finance Authority Revenue, Series A, 4.55%, 10/1/18		2,568,375
	315,000	Illinois State, Build America Bonds, GO, 6.63%, 2/1/35		350,699

				15,209,399

	Total Municipal Bonds (Cost $21,650,366)			22,663,464


Principal Amount			Fair Value
	U.S. Government Agency Mortgages (12.7%):
	Federal Home Loan Mortgage Corporation (2.7%)
$	1,457,652	4.00%, 2/1/41, Pool #A96807	$	1,555,666
	185,086	4.50%, 3/1/41, Pool #A97673		200,863
	297,290	4.50%, 4/1/41, Pool #A97942		322,608
	122,222	3.50%, 8/1/42, Pool #Q10164		127,223
	130,656	3.50%, 8/1/42, Pool #Q10047		136,054
	127,707	3.50%, 8/1/42, Pool #Q10434		133,006
	133,386	3.50%, 9/1/42, Pool #Q11244		138,886
	96,619	4.00%, 11/1/42, Pool #Q13121		103,513
	85,921	3.50%, 11/1/42, Pool #G07231		89,463
	876,362	3.50%, 4/1/43, Pool #Q17209		912,191
	195,192	4.00%, 5/1/43, Pool #Q18481		209,171
	98,410	4.00%, 7/1/43, Pool #Q19597		105,476
	997,941	3.00%, 10/1/43, Pool #G08553		1,009,400
	99,714	4.00%, 10/1/43, Pool #Q22499		106,875
	591,620	4.00%, 11/1/43, Pool #Q23023		635,314
	199,407	4.00%, 1/1/44, Pool #V80950		213,736
	6,341,193	3.50%, 2/1/44, Pool #U99114		6,619,537

				12,618,982

	Federal National Mortgage Association (8.0%)
	99,999	2.50%, 10/1/28, Pool #AU2669		102,021
	1,000,001	2.50%, 8/1/29, Pool #AW0052		1,019,347
	700,000	3.00%, 12/25/29		728,431
	311,067	3.50%, 1/1/34, Pool #AS1611		327,618
	106,738	3.50%, 1/1/34, Pool #AS1406		112,429
	233,884	3.50%, 1/1/34, Pool #AS1612		246,395
	46,123	3.50%, 1/1/34, Pool #AS1614		48,654
	77,776	6.00%, 10/1/34, Pool #AL2130		89,547
	282,502	5.50%, 1/1/35, Pool #735141		317,519
	143,330	5.50%, 9/1/36, Pool #AD0500		161,352
	1,020,816	6.00%, 1/1/37, Pool #932030		1,160,917
	213,420	6.00%, 3/1/37, Pool #889506		242,811
	259,835	6.00%, 1/1/38, Pool #889371		298,715
	90,741	6.00%, 3/1/38, Pool #889219		104,552
	52,141	6.00%, 7/1/38, Pool #889733		60,018
	347,701	6.00%, 5/1/40, Pool #AL2129		400,165
	595,084	4.50%, 8/1/40, Pool #AE0217		647,268
	28,073	4.00%, 9/1/40, Pool #AD5173		30,004
	31,039	4.00%, 10/1/40, Pool #AE4428		33,169
	32,976	4.00%, 10/1/40, Pool #AE4047		35,247
	88,501	4.00%, 10/1/40, Pool #AE4044		94,565
	187,451	4.00%, 12/1/40, Pool #AA4757		200,338
	88,618	4.00%, 12/1/40, Pool #AE7856		94,726
	250,000	4.50%, 8/1/41, Pool #AI8715		273,912
	876,328	4.00%, 10/1/41, Pool #AL2512		936,370
	34,104	6.00%, 1/1/42, Pool #AL2128		39,394
	250,000	4.50%, 4/1/42, Pool #AK8453		271,684
	250,000	4.50%, 4/1/42, Pool #AO0186		271,630
	200,550	4.50%, 6/1/42, Pool #AO6381		217,939
	200,000	4.50%, 7/1/42, Pool #AO5544		217,369
	250,000	4.50%, 10/1/42, Pool #AP9743		271,370
	492,424	2.50%, 2/1/43, Pool #AB8465		481,486
	394,455	3.00%, 6/1/43, Pool #AT5691		399,635
	149,377	3.00%, 6/1/43, Pool #AU5339		151,330
	382,636	3.00%, 6/1/43, Pool #AR7110		387,572
	365,032	3.00%, 7/1/43, Pool #AU2555		369,751


Principal Amount			Fair Value
	U.S. Government Agency Mortgages, continued
	Federal National Mortgage Association, continued
$	315,042	3.00%, 9/1/43, Pool #AU4674	$	319,013
	4,984,960	3.00%, 10/1/43, Pool #AU4405		5,048,653
	14,469,695	3.50%, 1/1/44, Pool #AL6167		15,107,094
	500,000	5.50%, 1/25/44		559,297
	500,000	4.00%, 2/25/44		532,260
	197,120	4.00%, 9/1/44, Pool #AS3236		210,626
	91,572	4.00%, 11/1/44, Pool #AX9367		97,849
	57,759	4.00%, 11/1/44, Pool #AX8968		61,719
	61,011	4.00%, 12/1/44, Pool #MA2127		65,193
	191,395	4.00%, 12/1/44, Pool #AS4169		204,516
	76,221	4.00%, 12/1/44, Pool #AX9135		81,446
	78,883	4.00%, 12/1/44, Pool #AW9502		84,328
	107,118	4.00%, 12/1/44, Pool #AW8816		114,462
	58,250	4.00%, 12/1/44, Pool #AX9370		62,243
	43,765	4.00%, 12/1/44, Pool #AY0510		46,765
	62,396	4.00%, 12/1/44, Pool #AY0045		66,673
	397,290	4.00%, 12/1/44, Pool #AX9961		424,526
	79,483	4.00%, 1/1/45, Pool #AS4183		84,932
	600,000	5.00%, 1/25/45		662,895
	1,200,000	3.50%, 1/25/45		1,250,906
	200,000	4.00%, 1/25/45		213,451

				36,144,097

	Government National Mortgage Association (2.0%)
	25,938	5.00%, 6/15/34, Pool #629493		28,735
	498,306	5.50%, 6/15/35, Pool #783800		558,582
	24,917	5.00%, 3/15/38, Pool #676766		27,452
	17,535	5.00%, 4/15/38, Pool #672672		19,319
	55,642	5.00%, 8/15/38, Pool #687818		61,265
	578,054	5.00%, 1/15/39, Pool #705997		639,345
	4,768	5.00%, 3/15/39, Pool #697946		5,272
	569,672	5.00%, 3/15/39, Pool #646746		629,951
	743,225	4.00%, 10/15/40, Pool #783143		798,952
	1,684,584	4.50%, 3/20/41, Pool #4978		1,848,264
	1,176,357	4.00%, 5/20/41, Pool #5054		1,264,890
	386,757	4.00%, 12/20/41, Pool #5259		415,160
	223,051	3.50%, 7/20/42, Pool #MA0220		234,510
	824,738	3.50%, 4/20/43, Pool #MA0934		866,940
	97,506	3.50%, 7/20/43, Pool #MA1157		102,486
	1,000,000	4.50%, 1/20/44		1,092,617
	700,000	4.00%, 1/20/45		750,523

				9,344,263

	Total U.S. Government Agency Mortgages (Cost $57,662,721)			58,107,342

	U.S. Treasury Obligations (11.7%):
	U.S. Treasury Bond (2.3%)
	9,946,000	3.00%, 11/15/44		10,452,629

	U.S. Treasury Inflation Index Bonds (1.2%)
	4,930,000	1.38%, 2/15/44		5,684,491

	U.S. Treasury Note (8.2%)
	29,183,000	0.88%, 11/15/17		29,043,915
	8,295,000	1.00%, 12/15/17		8,275,557

				37,319,472

	Total U.S. Treasury Obligations (Cost $52,887,995)			53,456,592


Principal Amount or Shares			Fair Value
	Securities Held as Collateral for Securities on Loan (6.7%):
$	30,857,494	Allianz Variable Insurance Products Securities Lending Collateral Trust (c)	$	30,857,494

	Total Securities Held as Collateral for Securities on Loan (Cost $30,857,494)			30,857,494

	Unaffiliated Investment Company (1.6%):
	7,483,253	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00% (d)		7,483,253

	Total Unaffiliated Investment Company (Cost $7,483,253)			7,483,253

	Total Investment Securities (Cost $494,718,100)(e) — 108.2%			494,806,422
	Net other assets (liabilities) — (8.2)%			(37,519,754	)

	Net Assets — 100.0%		$	457,286,668

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	494,718,100

Investment securities, at value*	$	494,806,422
Interest and dividends receivable		3,689,569
Receivable for investments sold		8,858,032
Prepaid expenses		3,511

Total Assets		507,357,534

Liabilities:
Payable for investments purchased		16,814,596
Payable for capital shares redeemed		2,078,930
Payable for collateral received on loaned securities		30,857,494
Manager fees payable		194,249
Administration fees payable		14,357
Distribution fees payable		97,124
Custodian fees payable		2,940
Administrative and compliance services fees payable		1,019
Trustee fees payable		20
Other accrued liabilities		10,137

Total Liabilities		50,070,866

Net Assets	$	457,286,668

Net Assets Consist of:
Capital	$	449,402,583
Accumulated net investment income/(loss)		8,816,214
Accumulated net realized gains/(losses) from investment transactions		(1,020,451	)
Net unrealized appreciation/(depreciation) on investments		88,322

Net Assets	$	457,286,668

Shares of beneficial interest (unlimited number of shares authorized, no par value)		45,091,421
Net Asset Value (offering and redemption price per share)	$	10.14

*	Includes securities on loan of $29,801,439.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Interest	$	11,574,361
Dividends		8
Income from securities lending		15,675

Total Investment Income		11,590,044

Expenses:
Manager fees		1,981,661
Administration fees		165,755
Distribution fees		990,830
Custodian fees		16,062
Administrative and compliance services fees		5,310
Trustee fees		19,857
Professional fees		23,002
Shareholder reports		6,094
Other expenses		9,441

Total expenses		3,218,012

Net Investment Income/(Loss)		8,372,032

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		6,015,608
Net realized gains/(losses) on futures contracts		65,660
Net realized gains/(losses) on swap agreements		138,087
Change in net unrealized appreciation/depreciation on investments		5,528,827

Net Realized/Unrealized Gains/(Losses) on Investments		11,748,182

Change in Net Assets Resulting From Operations	$	20,120,214

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Pyramis Core Bond Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $1,563 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide market exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The Fund had no open futures contracts as of December 31, 2014. The monthly average notional amount for these contracts was $0.7 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The Fund may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The Fund may enter into swap agreements to manage its exposure to market, interest rate and credit risk. The value of swap agreements are equal to the Fund’s obligations (or rights) under swap agreements, which will generally be equal to the net amounts to be paid or received under the agreements based upon the relative values of the positions

held by each party to the agreements. In connection with these arrangements, securities may be identified as collateral in accordance with the terms of the swap agreements to provide assets of value and recourse in the event of default or bankruptcy by the counterparty.

Swap agreements involve, to varying degrees, elements of market risk and exposure to loss. The primary risks associated with the use of swap agreements are imperfect correlation between movements in the notional amount and the price of the underlying instruments and the inability of counterparties or clearing house to perform. The counterparty risk for centrally cleared swap agreements is generally lower than for OTC swap agreements because generally a clearing organization becomes substituted for each counterparty to a centrally cleared swap agreement and, in effect, guarantees the parties’ performance under the contract as each party to a trade looks only to a clearing house for performance of financial obligations. However, there can be no assurance that the clearing house, or its members will satisfy its obligations to the Fund.

Interest rate swaps involve the exchange of commitments to pay and receive interest based on a notional amount and are subject to interest rate risk exposure. Interest rate swaps do not involve the delivery of securities, other underlying assets or principal. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that a Fund is contractually obligated to make. If the other party to an interest rate swap defaults, a Fund’s risk of loss consists of the net amount of interest payments that the Fund is contractually entitled to receive. During the year, the Fund entered into interest rate swap agreements to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). The Fund had no open interest rate swaps as of December 31, 2014. The monthly average gross notional amount for interest rate swaps was $5.5 million for the year ended December 31, 2014.

The following is a summary of the effect of derivative instruments on the Fund’s Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Pyramis Global Advisors, LLC (“Pyramis”), Pyramis provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $4,873 was paid from the Fund relating to these fees and expenses.

Security prices are generally provided by an independent third party pricing service approved by the Trust’s Board of Trustees (“Trustees”) as of the close of the New York Stock Exchange (“NYSE”) (generally 4:00 pm Eastern Time). Equity securities are valued at the last quoted sale price or, if there is no sale, the last quoted bid price is used for long securities and the last quoted ask price is used for securities sold short. Securities listed on NASDAQ Stock Market, Inc. (“NASDAQ”) are valued at the official closing price as reported by NASDAQ. In each of these situations, valuations are typically categorized as a Level 1 in the fair value hierarchy. Investments in open-end investment companies are valued at their respective net asset value as reported by such companies and are typically categorized as Level 1 in the fair value hierarchy. Debt and other fixed income securities are generally valued at an evaluated bid price provided by an independent pricing source approved by the Trustees. To value debt securities, pricing services may use various pricing techniques which take into account appropriate factors such as market activity, yield, quality, coupon rate, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes. Short term securities of sufficient credit quality with sixty days or less remaining until maturity may be valued at amortized cost, which approximates fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Futures contracts are valued at the last sales price as of the close of the primary exchange and are typically categorized as level 1 in the fair value hierarchy.

Non-exchange traded derivatives, such as swaps and certain options, are generally valued by approved independent pricing services utilizing techniques which take into account factors such as yields, quality, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes and are typically categorized as Level 2 in the fair value hierarchy.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

For the year ended December 31, 2014, purchases and sales on long-term U.S. government securities were as follows:

Cost for federal income tax purposes at December 31, 2014 is $494,726,798. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $5,550,252 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

(a) Total distributions paid may differ from the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes.

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

The Shareholders and Board of Trustees of Allianz Variable Insurance Products Trust:

We have audited the accompanying statement of assets and liabilities of AZL Pyramis Core Bond Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, the related statement of operations for the year then ended, and the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the three-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the three-year period then ended, in conformity with U.S. generally accepted accounting principles.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Russell 1000 Growth Index Fund returned 12.21%. That compared to a 13.05% total return for its benchmark, the Russell 1000^® Growth Index^1.

The Fund underperformed its benchmark due in large part to the effect of fees and expenses, as well as negative impacts from slight differences in weightings between the holdings in the Fund and the index. These negatives were partially offset by payments to the Fund resulting from class action lawsuits against companies held in the Fund.*

The low-interest rate environment helped the utilities sector to post strong returns as that sector offered attractive yields to income-seeking investors. Sectors tied to cyclical growth, such as health care and information technology, also fared well. The health care sector benefited from gains in the biotechnology industry, which were driven by new drug developments. Consumer staples also posted strong gains as many investors turned to more defensive holdings as volatility increased during the period. While most sectors posted gains for the period, the energy sector was an outlier. It posted a loss, weighed down by the dramatic slide in oil prices.

Past performance does not guarantee future results.

1	The Russell 1000^® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to match the total return of the Russell 1000^® Growth Index. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing in all stocks in the Index in proportion to their weighting in the Index.

Investment Concerns

Returns on growth stocks may not move in tandem with returns on other categories of stocks or the market as a whole. Growth stocks may be susceptible to rapid price savings or to adverse developments in certain sectors of the market.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			Since Inception (4/30/10)
AZL^® Russell 1000 Growth Index Fund		12.21	%		19.36	%		14.69	%
Russell 1000^® Growth Index		13.05	%		20.26	%		15.63	%


Expense Ratio	Gross
AZL^® Russell 1000 Growth Index Fund		0.78	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 0.84% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Russell 1000^® Growth Index, an unmanaged index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Russell 1000 Growth Index Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (99.1%):
	Aerospace & Defense (2.9%):
	1,273	BE Aerospace, Inc.*^	$	73,859
	8,826	Boeing Co. (The)		1,147,202
	1,200	Hexcel Corp.*^		49,788
	9,478	Honeywell International, Inc.		947,042
	513	Huntington Ingalls Industries, Inc.		57,692
	637	KLX, Inc.*^		26,256
	3,280	Lockheed Martin Corp.		631,630
	1,753	Precision Castparts Corp.		422,263
	1,445	Rockwell Collins, Inc.		122,074
	1,388	Spirit AeroSystems Holdings, Inc., Class A*		59,740
	640	TransDigm Group, Inc.		125,664
	155	Triumph Group, Inc.		10,419
	1,243	United Technologies Corp.		142,945

				3,816,574

	Air Freight & Logistics (1.1%):
	1,790	C.H. Robinson Worldwide, Inc.^		134,053
	2,380	Expeditors International of Washington, Inc.		106,172
	1,538	FedEx Corp.		267,089
	8,567	United Parcel Service, Inc., Class B		952,393

				1,459,707

	Airlines (1.0%):
	1,528	Alaska Air Group, Inc.		91,313
	8,717	American Airlines Group, Inc.		467,492
	323	Copa Holdings SA, Class A		33,476
	543	Delta Air Lines, Inc.		26,710
	7,452	Southwest Airlines Co.		315,369
	865	Spirit Airlines, Inc.*		65,377
	4,520	United Continental Holdings, Inc.*		302,343

				1,302,080

	Auto Components (0.4%):
	1,671	Allison Transmission Holdings, Inc.		56,647
	2,767	BorgWarner, Inc.		152,047
	1,032	Gentex Corp.		37,286
	3,186	Goodyear Tire & Rubber Co.		91,024
	2,140	Johnson Controls, Inc.		103,448
	780	Lear Corp.		76,502

				516,954

	Automobiles (0.4%):
	2,643	Harley-Davidson, Inc.		174,200
	1,151	Tesla Motors, Inc.*^		255,994
	550	Thor Industries, Inc.		30,729

				460,923

	Banks (0.1%):
	546	Signature Bank*		68,774
	54	SVB Financial Group*		6,268

				75,042

	Beverages (3.5%):
	1,862	Brown-Forman Corp., Class B		163,558
	48,058	Coca-Cola Co. (The)		2,029,009
	3,043	Coca-Cola Enterprises, Inc.		134,561


Shares			Fair Value
	Common Stocks, continued
	Beverages, continued
	1,810	Constellation Brands, Inc., Class A*	$	177,688
	2,377	Dr Pepper Snapple Group, Inc.		170,383
	1,733	Monster Beverage Corp.*		187,771
	18,350	PepsiCo, Inc.		1,735,176

				4,598,146

	Biotechnology (5.5%):
	2,394	Alexion Pharmaceuticals, Inc.*		442,962
	1,475	Alkermes plc*		86,376
	697	Alnylam Pharmaceuticals, Inc.*^		67,609
	8,686	Amgen, Inc.		1,383,593
	2,871	Biogen Idec, Inc.*		974,561
	1,766	BioMarin Pharmaceutical, Inc.*		159,646
	9,693	Celgene Corp.*		1,084,259
	845	Cubist Pharmaceuticals, Inc.*^		85,049
	18,587	Gilead Sciences, Inc.*		1,752,011
	1,738	Incyte Corp.*^		127,065
	154	Intercept Pharmaceuticals, Inc.*^		24,024
	915	Medivation, Inc.*		91,143
	810	Myriad Genetics, Inc.*^		27,589
	955	Regeneron Pharmaceuticals, Inc.*^		391,789
	1,203	Seattle Genetics, Inc.*^		38,652
	586	United Therapeutics Corp.*^		75,881
	2,859	Vertex Pharmaceuticals, Inc.*		339,649

				7,151,858

	Building Products (0.2%):
	415	A.O. Smith Corp.		23,410
	1,143	Allegion plc		63,391
	560	Armstrong World Industries, Inc.*		28,627
	857	Fortune Brands Home & Security, Inc.^		38,796
	606	Lennox International, Inc.^		57,613
	4,272	Masco Corp.		107,655
	1,153	USG Corp.*^		32,272

				351,764

	Capital Markets (1.2%):
	669	Affiliated Managers Group, Inc.*		141,989
	802	Ameriprise Financial, Inc.		106,065
	340	Artisan Partners Asset Management, Inc.		17,180
	590	BlackRock, Inc., Class A+		210,960
	2,212	Charles Schwab Corp. (The)		66,780
	1,447	Eaton Vance Corp.^		59,226
	859	Federated Investors, Inc., Class B^		28,287
	3,923	Franklin Resources, Inc.^		217,217
	819	Invesco, Ltd.		32,367
	1,515	Lazard, Ltd., Class A		75,796
	504	Legg Mason, Inc.^		26,898
	486	NorthStar Asset Management Group, Inc.		10,969
	1,537	SEI Investments Co.		61,541
	3,180	T. Rowe Price Group, Inc.		273,035
	2,836	TD Ameritrade Holding Corp.^		101,472
	1,040	Waddell & Reed Financial, Inc., Class A		51,813

				1,481,595


Shares			Fair Value
	Common Stocks, continued
	Chemicals (3.4%):
	896	Airgas, Inc.	$	103,201
	378	Albemarle Corp.^		22,729
	242	Axalta Coating Systems, Ltd.*		6,297
	52	Cabot Corp.		2,281
	165	Celanese Corp., Series A		9,893
	106	Cytec Industries, Inc.		4,894
	2,331	Dow Chemical Co. (The)		106,317
	10,493	E.I. du Pont de Nemours & Co.		775,851
	1,655	Eastman Chemical Co.		125,548
	3,226	Ecolab, Inc.		337,182
	1,630	FMC Corp.^		92,959
	1,752	Huntsman Corp.^		39,911
	975	International Flavor & Fragrances, Inc.^		98,826
	5,068	LyondellBasell Industries NV, Class A		402,349
	5,861	Monsanto Co.		700,213
	111	NewMarket Corp.^		44,792
	1,053	Platform Speciality Products Corp.*		24,451
	1,673	PPG Industries, Inc.		386,714
	3,545	Praxair, Inc.		459,290
	61	Rayonier Advanced Materials, Inc.^		1,360
	56	Rockwood Holdings, Inc.		4,413
	1,504	RPM International, Inc.		76,268
	538	Scotts Miracle-Gro Co. (The)		33,528
	1,043	Sherwin Williams Co.^		274,351
	651	Sigma Aldrich Corp.		89,363
	1,031	Valspar Corp. (The)		89,161
	805	W.R. Grace & Co.*		76,789
	418	Westlake Chemical Corp.		25,536

				4,414,467

	Commercial Services & Supplies (0.6%):
	958	Cintas Corp.^		75,146
	552	Clean Harbors, Inc.*^		26,524
	1,332	Copart, Inc.*		48,605
	545	Covanta Holding Corp.		11,995
	1,984	Iron Mountain, Inc.^		76,701
	696	KAR Auction Services, Inc.		24,116
	1,123	Pitney Bowes, Inc.		27,368
	240	R.R. Donnelley & Sons Co.		4,033
	752	Rollins, Inc.		24,891
	1,019	Stericycle, Inc.*^		133,570
	4,542	Tyco International plc		199,212
	929	Waste Connections, Inc.		40,867
	593	Waste Management, Inc.		30,433

				723,461

	Communications Equipment (1.5%):
	56	Arista Networks, Inc.*^		3,403
	1,557	Arris Group, Inc.*^		47,006
	771	CommScope Holding Co., Inc.*		17,602
	131	EchoStar Corp., Class A*		6,878
	916	F5 Networks, Inc.*		119,505
	270	Harris Corp.		19,391


Shares			Fair Value
	Common Stocks, continued
	Communications Equipment, continued
	1,155	Juniper Networks, Inc.	$	25,780
	560	Motorola Solutions, Inc.^		37,565
	617	Palo Alto Networks, Inc.*^		75,625
	20,429	QUALCOMM, Inc.		1,518,487
	1,911	Riverbed Technology, Inc.*		39,004

				1,910,246

	Construction & Engineering (0.1%):
	1,192	Chicago Bridge & Iron Co. NV		50,040
	1,194	Fluor Corp.		72,392
	639	Quanta Services, Inc.*		18,141

				140,573

	Construction Materials (0.1%):
	600	Eagle Materials, Inc.		45,618
	744	Martin Marietta Materials, Inc.^		82,078

				127,696

	Consumer Finance (0.9%):
	2,888	Ally Financial, Inc.*		68,215
	10,980	American Express Co.		1,021,579
	70	Santander Consumer USA Holdings, Inc.^		1,373
	1,780	SLM Corp.		18,138
	1,124	Synchrony Financial*		33,439

				1,142,744

	Containers & Packaging (0.4%):
	183	AptarGroup, Inc.^		12,232
	397	Avery Dennison Corp.		20,596
	1,687	Ball Corp.		115,002
	1,661	Crown Holdings, Inc.*		84,545
	1,219	Owens-Illinois, Inc.*		32,901
	1,199	Packaging Corp. of America		93,582
	2,603	Sealed Air Corp.		110,445
	511	Silgan Holdings, Inc.^		27,390

				496,693

	Distributors (0.2%):
	1,738	Genuine Parts Co.		185,219
	3,653	LKQ Corp.*		102,722

				287,941

	Diversified Consumer Services (0.1%):
	3,318	H&R Block, Inc.		111,750
	2,056	Service Corp. International^		46,671
	335	ServiceMaster Global Holdings, Inc.*		8,968

				167,389

	Diversified Financial Services (0.4%):
	1,047	CBOE Holdings, Inc.^		66,401
	591	IntercontinentalExchange Group, Inc.		129,600
	748	Leucadia National Corp.		16,770
	1,082	LPL Financial Holdings, Inc.		48,203
	2,288	Moody’s Corp.		219,214
	646	MSCI, Inc., Class A		30,646

				510,834


Shares			Fair Value
	Common Stocks, continued
	Diversified Telecommunication Services (2.0%):
	433	CenturyLink, Inc.	$	17,138
	3,259	Level 3 Communications, Inc.*		160,929
	50,123	Verizon Communications, Inc.		2,344,754
	6,820	Windstream Holdings, Inc.^		56,197
	105	Zayo Group Holdings, Inc.*^		3,210

				2,582,228

	Electric Utilities (0.1%):
	1,770	ITC Holdings Corp.^		71,561

	Electrical Equipment (0.7%):
	514	Acuity Brands, Inc.		71,996
	2,969	AMETEK, Inc.		156,258
	6,344	Emerson Electric Co.		391,616
	117	Hubbell, Inc., Class B		12,499
	1,676	Rockwell Automation, Inc.		186,371
	542	Roper Industries, Inc.		84,742
	525	Solarcity Corp.*^		28,077

				931,559

	Electronic Equipment, Instruments & Components (0.4%):
	3,804	Amphenol Corp., Class A		204,692
	348	Avnet, Inc.		14,971
	1,075	CDW Corp.		37,808
	3,633	Corning, Inc.		83,305
	1,165	FLIR Systems, Inc.		37,641
	403	IPG Photonics Corp.*^		30,193
	297	Keysight Technologies, Inc.*		10,030
	1,184	National Instruments Corp.		36,811
	3,147	Trimble Navigation, Ltd.*		83,521

				538,972

	Energy Equipment & Services (1.8%):
	174	Atwood Oceanics, Inc.*		4,936
	448	Baker Hughes, Inc.		25,119
	1,575	Cameron International Corp.*		78,671
	926	Dresser-Rand Group, Inc.*		75,747
	483	Dril-Quip, Inc.*		37,061
	2,846	FMC Technologies, Inc.*		133,307
	51	Frank’s International NV		848
	10,222	Halliburton Co.		402,032
	784	Helmerich & Payne, Inc.		52,857
	365	Nabors Industries, Ltd.		4,738
	451	National-Oilwell Varco, Inc.^		29,554
	1,288	Oceaneering International, Inc.		75,747
	914	Patterson-UTI Energy, Inc.		15,163
	782	RPC, Inc.^		10,197
	15,741	Schlumberger, Ltd.		1,344,439
	1,296	Seadrill, Ltd.^		15,474
	107	Seventy Seven Energy, Inc.*^		579
	132	Superior Energy Services, Inc.		2,660
	39	Unit Corp.*		1,330

				2,310,459


Shares			Fair Value
	Common Stocks, continued
	Food & Staples Retailing (1.8%):
	5,015	Costco Wholesale Corp.	$	710,876
	2,009	CVS Caremark Corp.		193,487
	6,167	Kroger Co. (The)		395,983
	1,209	Sprouts Farmers Market, Inc.*^		41,082
	2,646	Sysco Corp.^		105,020
	8,686	Walgreens Boots Alliance, Inc.		661,873
	1,967	Wal-Mart Stores, Inc.		168,926
	1,912	Whole Foods Market, Inc.^		96,403

				2,373,650

	Food Products (1.7%):
	794	Archer-Daniels-Midland Co.		41,288
	1,396	Campbell Soup Co.^		61,424
	2,141	Flowers Foods, Inc.		41,086
	7,437	General Mills, Inc.^		396,615
	1,086	Hain Celestial Group, Inc.*^		63,303
	1,809	Hershey Co.^		188,009
	1,638	Hormel Foods Corp.		85,340
	140	Ingredion, Inc.		11,878
	2,835	Kellogg Co.		185,522
	1,712	Keurig Green Mountain, Inc.		226,660
	7,205	Kraft Foods Group, Inc.		451,466
	1,579	McCormick & Co.		117,320
	2,446	Mead Johnson Nutrition Co.		245,921
	104	Pilgrim’s Pride Corp.*		3,410
	8,075	Rite AID Corp.*^		60,724
	203	Tyson Foods, Inc., Class A		8,138
	2,082	WhiteWave Foods Co., Class A*		72,849

				2,260,953

	Health Care Equipment & Supplies (1.8%):
	1,010	Align Technology, Inc.*^		56,469
	6,567	Baxter International, Inc.		481,294
	2,338	Becton, Dickinson & Co.		325,356
	1,555	Boston Scientific Corp.*		20,604
	923	C.R. Bard, Inc.		153,790
	431	Cooper Cos., Inc. (The)^		69,861
	550	DENTSPLY International, Inc.		29,299
	1,277	Edwards Lifesciences Corp.*		162,664
	472	Halyard Health, Inc.*^		21,462
	63	Hill-Rom Holdings, Inc.		2,874
	957	Hologic, Inc.*		25,590
	584	IDEXX Laboratories, Inc.*^		86,590
	403	Intuitive Surgical, Inc.*		213,163
	1,694	ResMed, Inc.^		94,966
	438	Sirona Dental Systems, Inc.*		38,268
	2,215	St. Jude Medical, Inc.		144,041
	2,425	Stryker Corp.		228,750
	1,254	Varian Medical Systems, Inc.*		108,484
	156	Zimmer Holdings, Inc.		17,694

				2,281,219


Shares			Fair Value
	Common Stocks, continued
	Health Care Providers & Services (2.0%):
	1,288	Aetna, Inc.	$	114,413
	2,733	AmerisourceBergen Corp.		246,407
	1,916	Brookdale Senior Living, Inc.*^		70,260
	341	Cardinal Health, Inc.		27,529
	2,479	Catamaran Corp.*		128,288
	683	Centene Corp.*		70,930
	3,606	Cerner Corp.*^		233,164
	259	CIGNA Corp.		26,654
	762	DaVita, Inc.*		57,714
	1,004	Envision Healthcare Holdings, Inc.*		34,829
	7,705	Express Scripts Holding Co.*		652,381
	384	HCA Holdings, Inc.*		28,182
	1,033	Henry Schein, Inc.*^		140,643
	415	Laboratory Corp. of America Holdings*		44,779
	2,791	McKesson, Inc.		579,355
	814	MEDNAX, Inc.*		53,814
	93	Patterson Cos., Inc.		4,473
	401	Premier, Inc., Class A*		13,446
	330	Quintiles Transnational Holdings, Inc.*		19,427
	1,181	Tenet Healthcare Corp.*^		59,841
	242	Universal Health Services, Inc., Class B		26,925

				2,633,454

	Health Care Technology (0.1%):
	829	Allscripts Healthcare Solutions, Inc.*^		10,586
	449	athenahealth, Inc.*^		65,420
	925	IMS Health Holdings, Inc.*		23,717

				99,723

	Hotels Restaurants & Leisure (0.1%):
	13	Restaurant Brands International LP*		494
	2,457	Restaurant Brands International, Inc.*		95,918

				96,412

	Hotels, Restaurants & Leisure (2.8%):
	440	Aramark Holdings Corp.		13,706
	777	Brinker International, Inc.^		45,602
	377	Chipotle Mexican Grill, Inc.*		258,060
	37	Choice Hotels International, Inc.^		2,073
	674	Domino’s Pizza, Inc.^		63,471
	1,288	Dunkin’ Brands Group, Inc.^		54,933
	1,674	Hilton Worldwide Holdings, Inc.*		43,675
	42	Hyatt Hotels Corp., Class A*^		2,529
	4,551	Las Vegas Sands Corp.^		264,686
	2,343	Marriott International, Inc., Class A		182,824
	11,963	McDonald’s Corp.		1,120,932
	393	MGM Resorts International*^		8,402
	1,040	Norwegian Cruise Line Holdings, Ltd.*		48,630
	302	Panera Bread Co., Class A*^		52,790
	842	SeaWorld Entertainment, Inc.		15,072
	902	Six Flags Entertainment Corp.^		38,921
	9,111	Starbucks Corp.		747,558
	984	Starwood Hotels & Resorts Worldwide, Inc.		79,773
	1,534	Wyndham Worldwide Corp.		131,556


Shares			Fair Value
	Common Stocks, continued
	Hotels, Restaurants & Leisure, continued
	981	Wynn Resorts, Ltd.	$	145,934
	5,342	Yum! Brands, Inc.		389,165

				3,710,292

	Household Durables (0.3%):
	328	D.R. Horton, Inc.		8,295
	161	GoPro, Inc., Class A*^		10,178
	819	Harman International Industries, Inc.		87,396
	730	Jarden Corp.*		34,952
	848	Leggett & Platt, Inc.^		36,133
	135	Lennar Corp.^		6,049
	2,017	Newell Rubbermaid, Inc.		76,829
	51	NVR, Inc.*		65,042
	753	Tempur-Pedic International, Inc.*^		41,347
	623	Tupperware Brands Corp.^		39,249
	89	Whirlpool Corp.		17,243

				422,713

	Household Products (1.2%):
	1,629	Church & Dwight Co., Inc.		128,381
	1,287	Clorox Co. (The)^		134,118
	9,905	Colgate-Palmolive Co.		685,327
	3,781	Kimberly-Clark Corp.		436,857
	1,867	Procter & Gamble Co. (The)		170,065
	263	Spectrum Brands Holdings, Inc.		25,164

				1,579,912

	Independent Power and Renewable Electricity Producers (0.0%):
	744	Calpine Corp.*		16,465

	Industrial Conglomerates (1.1%):
	7,920	3M Co.		1,301,414
	1,728	Danaher Corp.		148,107

				1,449,521

	Insurance (0.5%):
	135	American Financial Group, Inc.		8,197
	2,758	Aon plc		261,541
	1,796	Arthur J. Gallagher & Co.		84,556
	84	Brown & Brown, Inc.		2,764
	304	Erie Indemnity Co., Class A		27,594
	4,483	Marsh & McLennan Cos., Inc.		256,607
	238	Reinsurance Group of America, Inc.		20,854

				662,113

	Internet & Catalog Retail (2.2%):
	4,548	Amazon.com, Inc.*		1,411,471
	1,221	Expedia, Inc.^		104,225
	5,954	Groupon, Inc.*^		49,180
	1,070	HomeAway, Inc.*^		31,865
	2,949	Liberty Media Corp.—Interactive, Class A*		86,760
	925	Liberty TripAdvisor Holdings, Inc., Class A*		24,883
	1,736	Liberty Ventures, Inc., Series A*		65,482
	726	Netflix, Inc.*		248,009
	625	Priceline.com, Inc.*		712,630


Shares			Fair Value
	Common Stocks, continued
	Internet & Catalog Retail, continued
	1,347	TripAdvisor, Inc.*^	$	100,567
	188	zulily, Inc., Class A*^		4,399

				2,839,471

	Internet Software & Services (5.8%):
	2,147	Akamai Technologies, Inc.*		135,175
	15,339	eBay, Inc.*		860,825
	635	Equinix, Inc.		143,974
	23,899	Facebook, Inc., Class A*		1,864,599
	3,438	Google, Inc., Class C*		1,809,762
	3,398	Google, Inc., Class A*		1,803,183
	378	IAC/InterActiveCorp		22,979
	1,263	LinkedIn Corp., Class A*		290,124
	1,406	Rackspace Hosting, Inc.*^		65,815
	6,116	Twitter, Inc.*^		219,381
	1,363	VeriSign, Inc.*^		77,691
	629	Yelp, Inc.*^		34,425
	385	Zillow, Inc., Class A*		40,768

				7,368,701

	IT Services (5.7%):
	7,656	Accenture plc, Class A		683,757
	712	Alliance Data Systems Corp.*		203,668
	5,835	Automatic Data Processing, Inc.		486,464
	860	Booz Allen Hamilton Holding Corp.		22,816
	1,466	Broadridge Financial Solutions, Inc.		67,700
	7,364	Cognizant Technology Solutions Corp., Class A*		387,788
	110	Computer Sciences Corp.		6,936
	288	DST Systems, Inc.		27,115
	442	Fidelity National Information Services, Inc.		27,492
	3,016	Fiserv, Inc.*		214,046
	1,004	FleetCor Technologies, Inc.*		149,305
	1,108	Gartner, Inc.*		93,305
	213	Genpact, Ltd.*		4,032
	825	Global Payments, Inc.		66,602
	11,450	International Business Machines Corp.		1,837,037
	1,041	Jack Henry & Associates, Inc.		64,688
	12,168	MasterCard, Inc., Class A		1,048,394
	3,510	Paychex, Inc.		162,057
	560	Sabre Corp.^		11,351
	1,479	Teradata Corp.*^		64,603
	1,578	Total System Services, Inc.		53,589
	1,541	Vantive, Inc., Class A*^		52,271
	1,379	VeriFone Systems, Inc.*^		51,299
	6,069	Visa, Inc., Class A		1,591,291
	6,513	Western Union Co.^		116,648

				7,494,254

	Leisure Products (0.2%):
	1,180	Hasbro, Inc.^		64,888
	1,517	Mattel, Inc.		46,944
	797	Polaris Industries, Inc.^		120,538

				232,370


Shares			Fair Value
	Common Stocks, continued
	Life Sciences Tools & Services (0.7%):
	594	Agilent Technologies, Inc.	$	24,318
	213	Bio-Techne Corp.		19,681
	1,279	Bruker Corp.*		25,094
	290	Charles River Laboratories International, Inc.*		18,456
	642	Covance, Inc.*		66,665
	1,687	Illumina, Inc.*^		311,387
	358	Mettler-Toledo International, Inc.*		108,281
	265	PerkinElmer, Inc.		11,588
	1,946	Thermo Fisher Scientific, Inc.		243,814
	190	VWR Corp.*^		4,915
	1,026	Waters Corp.*		115,651

				949,850

	Machinery (1.9%):
	1,602	Caterpillar, Inc.		146,631
	1,137	Colfax Corp.*^		58,635
	219	Crane Co.		12,855
	2,226	Cummins, Inc.		320,922
	959	Deere & Co.		84,843
	1,580	Donaldson Co., Inc.^		61,035
	1,487	Dover Corp.^		106,648
	1,662	Flowserve Corp.		99,437
	737	Graco, Inc.		59,093
	898	IDEX Corp.		69,900
	3,928	Illinois Tool Works, Inc.		371,983
	283	Ingersoll-Rand plc		17,940
	254	ITT Corp.		10,277
	338	Lincoln Electric Holdings, Inc.		23,352
	1,662	Manitowoc Co., Inc. (The)^		36,730
	680	Middleby Corp. (The)*		67,388
	111	Navistar International Corp.*^		3,716
	778	Nordson Corp.		60,653
	3,932	PACCAR, Inc.		267,415
	1,328	Pall Corp.^		134,407
	960	Parker Hannifin Corp.^		123,792
	165	Pentair, Ltd.		10,959
	101	Snap-On, Inc.		13,811
	216	Stanley Black & Decker, Inc.		20,753
	66	Timken Co.		2,817
	681	Toro Co.		43,455
	1,418	Trinity Industries, Inc.		39,718
	21	Valmont Industries, Inc.^		2,667
	684	WABCO Holdings, Inc.*		71,670
	1,179	Wabtec Corp.		102,443
	1,582	Xylem, Inc.		60,227

				2,506,172

	Marine (0.0%):
	684	Kirby Corp.*		55,226

	Media (5.7%):
	717	AMC Networks, Inc., Class A*^		45,723
	2,324	Cablevision Systems Corp., Class A^		47,967
	5,741	CBS Corp., Class B		317,707


Shares			Fair Value
	Common Stocks, continued
	Media, continued
	960	Charter Communications, Inc., Class A*	$	159,955
	1,381	Cinemark Holdings, Inc.		49,136
	232	Clear Channel Outdoor Holdings, Inc., Class A		2,457
	28,688	Comcast Corp., Class A		1,664,190
	5,661	DIRECTV, Inc., Class A*		490,809
	2,776	Discovery Communications, Inc., Class A*^		95,633
	2,774	Discovery Communications, Inc., Class C*^		93,539
	1,892	DISH Network Corp., Class A*		137,908
	5,109	Interpublic Group of Cos., Inc. (The)		106,114
	943	Lamar Advertising Co., Class A		50,583
	953	Lions Gate Entertainment Corp.^		30,515
	909	Live Nation, Inc.*		23,734
	3,294	McGraw-Hill Cos., Inc. (The)		293,100
	224	Morningstar, Inc.		14,495
	3,128	Omnicom Group, Inc.^		242,326
	2,448	Pandora Media, Inc.*^		43,648
	273	Regal Entertainment Group, Class A^		5,831
	1,274	Scripps Networks Interactive, Class A^		95,894
	31,373	Sirius XM Holdings, Inc.*^		109,806
	1,013	Starz—Liberty Capital*^		30,086
	3,372	Time Warner Cable, Inc.		512,746
	16,987	Twenty-First Century Fox, Inc.^		652,386
	5,202	Viacom, Inc., Class B		391,451
	17,566	Walt Disney Co. (The)		1,654,542

				7,362,281

	Metals & Mining (0.1%):
	40	Carpenter Technology Corp.^		1,970
	416	Compass Minerals International, Inc.		36,121
	1,801	Southern Copper Corp.^		50,788
	128	Tahoe Resources, Inc.		1,775
	33	TimkenSteel Corp.		1,222

				91,876

	Multiline Retail (0.7%):
	193	Big Lots, Inc.^		7,724
	204	Dillard’s, Inc., Class A^		25,537
	2,855	Dollar General Corp.*		201,849
	2,503	Dollar Tree, Inc.*		176,161
	1,083	Family Dollar Stores, Inc.		85,784
	142	Kohl’s Corp.^		8,668
	3,380	Macy’s, Inc.^		222,234
	1,677	Nordstrom, Inc.^		133,137
	258	Sears Holdings Corp.*		8,509
	790	Target Corp.^		59,969

				929,572

	Multi-Utilities (0.0%):
	439	Dominion Resources, Inc.		33,759

	Oil, Gas & Consumable Fuels (2.6%):
	456	Anadarko Petroleum Corp.		37,620
	656	Antero Resources Corp.*^		26,620
	5,050	Cabot Oil & Gas Corp.		149,531
	2,879	Cheniere Energy, Inc.*^		202,682


Shares			Fair Value
	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	1,499	Chesapeake Energy Corp.^	$	29,335
	130	Cimarex Energy Co.		13,780
	3,774	Cobalt International Energy, Inc.*		33,551
	1,364	Concho Resources, Inc.*		136,059
	1,037	Continental Resources, Inc.*^		39,779
	78	CVR Energy, Inc.		3,019
	6,615	EOG Resources, Inc.		609,044
	1,664	EQT Corp.		125,965
	829	Gulfport Energy Corp.*		34,602
	450	HollyFrontier Corp.		16,866
	4,425	Kinder Morgan, Inc.		187,222
	1,290	Kosmos Energy LLC*		10,823
	845	Laredo Petroleum Holdings, Inc.*^		8,746
	2,267	Marathon Petroleum Corp.		204,619
	331	Memorial Resource Development Corp.*		5,968
	3,113	Noble Energy, Inc.		147,650
	1,207	Oasis Petroleum, Inc.*^		19,964
	1,325	ONEOK, Inc.		65,972
	269	PBF Energy, Inc.		7,166
	2,808	Phillips 66		201,334
	1,731	Pioneer Natural Resources Co.		257,659
	237	QEP Resources, Inc.		4,792
	1,983	Range Resources Corp.^		105,991
	804	SM Energy Co.^		31,018
	4,273	Southwestern Energy Co.*		116,610
	449	Targa Resources Corp.^		47,616
	259	Teekay Shipping Corp.		13,181
	688	Tesoro Corp.		51,153
	567	Ultra Petroleum Corp.*^		7,462
	1,526	Valero Energy Corp.		75,537
	720	Whiting Petroleum Corp.*		23,760
	9,041	Williams Cos., Inc. (The)		406,303
	174	World Fuel Services Corp.^		8,166

				3,467,165

	Paper & Forest Products (0.0%):
	829	International Paper Co.		44,418

	Personal Products (0.2%):
	2,188	Avon Products, Inc.		20,545
	686	Coty, Inc., Class A^		14,173
	2,776	Estee Lauder Co., Inc. (The), Class A		211,531
	921	Herbalife, Ltd.^		34,722
	736	Nu Skin Enterprises, Inc., Class A^		32,163

				313,134

	Pharmaceuticals (4.0%):
	19,245	Abbvie, Inc.		1,259,393
	3,074	Actavis, Inc. plc*		791,278
	3,601	Allergan, Inc.		765,537
	7,160	Bristol-Myers Squibb Co.		422,655
	1,843	Endo International plc*		132,917
	719	Jazz Pharmaceuticals plc*^		117,722
	5,376	Johnson & Johnson Co.		562,168


Shares			Fair Value
	Common Stocks, continued
	Pharmaceuticals, continued
	983	Mallinckrodt plc*	$	97,346
	4,952	Merck & Co., Inc.		281,224
	4,523	Mylan, Inc.*		254,962
	374	Perrigo Co. plc		62,518
	732	Pharmacyclics, Inc.*^		89,494
	767	Salix Pharmaceuticals, Ltd.*^		88,159
	6,064	Zoetis, Inc.		260,934

				5,186,307

	Professional Services (0.5%):
	371	CoStar Group, Inc.*		68,127
	163	Dun & Bradstreet Corp.		19,716
	774	Equifax, Inc.		62,593
	822	IHS, Inc., Class A*		93,609
	2,548	Nielsen Holdings NV		113,972
	1,651	Robert Half International, Inc.		96,385
	2,014	Verisk Analytics, Inc., Class A*		128,998

				583,400

	Real Estate Investment Trusts (REITs) (1.8%):
	4,790	American Tower Corp.		473,491
	1,029	Apartment Investment & Management Co., Class A		38,227
	227	Boston Properties, Inc.		29,213
	232	Columbia Property Trust, Inc.		5,881
	4,040	Crown Castle International Corp.		317,947
	724	Equity Lifestyle Properties, Inc.		37,322
	1,386	Extra Space Storage, Inc.		81,275
	532	Federal Realty Investment Trust		71,001
	175	Gaming & Leisure Properties, Inc.		5,135
	2,039	Health Care REIT, Inc.		154,291
	177	Healthcare Trust of America, Inc., Class A^		4,755
	486	NorthStar Realty Finance Corp.		8,544
	509	Omega Healthcare Investors, Inc.^		19,887
	103	Outfront Media, Inc.		2,765
	93	Paramount Group, Inc.*		1,729
	1,054	Plum Creek Timber Co., Inc.^		45,101
	1,604	Public Storage, Inc.		296,499
	185	Rayonier, Inc.		5,169
	2,805	Simon Property Group, Inc.		510,818
	701	Tanger Factory Outlet Centers, Inc.		25,909
	731	Taubman Centers, Inc.		55,863
	1,626	Ventas, Inc.^		116,584
	522	Vornado Realty Trust		61,445
	668	Weyerhaeuser Co.^		23,975

				2,392,826

	Real Estate Management & Development (0.2%):
	3,430	CBRE Group, Inc.*		117,477
	233	Howard Hughes Corp. (The)*		30,388
	147	Jones Lang LaSalle, Inc.		22,040
	781	Realogy Holdings Corp.*^		34,747

				204,652


Shares			Fair Value
	Common Stocks, continued
	Road & Rail (1.5%):
	49	AMERCO, Inc.	$	13,929
	1,273	Avis Budget Group, Inc.*		84,438
	297	Genesee & Wyoming, Inc., Class A*		26,706
	5,418	Hertz Global Holdings, Inc.*		135,125
	1,113	J.B. Hunt Transport Services, Inc.^		93,770
	1,031	Kansas City Southern Industries, Inc.		125,813
	542	Landstar System, Inc.^		39,311
	789	Norfolk Southern Corp.		86,482
	777	Old Dominion Freight Line, Inc.*		60,326
	10,964	Union Pacific Corp.		1,306,142

				1,972,042

	Semiconductors & Semiconductor Equipment (2.2%):
	7,178	Advanced Micro Devices, Inc.*^		19,165
	1,450	Altera Corp.		53,563
	1,721	Analog Devices, Inc.		95,550
	9,842	Applied Materials, Inc.		245,262
	5,127	Atmel Corp.*		43,041
	3,024	Avago Technologies, Ltd.		304,184
	825	Cree, Inc.*^		26,582
	1,201	Freescale Semiconductor Holdings I, Ltd.*^		30,301
	5,121	Intel Corp.		185,841
	1,830	KLA-Tencor Corp.^		128,686
	534	Lam Research Corp.^		42,368
	2,863	Linear Technology Corp.^		130,553
	3,127	Maxim Integrated Products, Inc.		99,657
	2,424	Microchip Technology, Inc.^		109,347
	11,361	Micron Technology, Inc.*		397,748
	1,133	NVIDIA Corp.		22,717
	2,790	ON Semiconductor Corp.*		28,263
	2,294	Skyworks Solutions, Inc.		166,797
	1,061	SunEdison, Inc.*^		20,700
	64	Sunpower Corp. Common*^		1,653
	265	Teradyne, Inc.^		5,244
	13,064	Texas Instruments, Inc.		698,466
	3,247	Xilinx, Inc.		140,563

				2,996,251

	Software (5.9%):
	3,931	Activision Blizzard, Inc.		79,210
	6,024	Adobe Systems, Inc.*		437,945
	264	Ansys, Inc.*		21,648
	2,172	Autodesk, Inc.*		130,450
	3,439	Cadence Design Systems, Inc.*^		65,238
	1,945	CDK Global, Inc.		79,278
	1,795	Citrix Systems, Inc.*		114,521
	2,912	Electronic Arts, Inc.*		136,908
	509	FactSet Research Systems, Inc.^		71,642
	860	FireEye, Inc.*^		27,159
	1,681	Fortinet, Inc.*		51,539
	1,220	Informatica Corp.*		46,525
	3,436	Intuit, Inc.		316,765
	64,688	Microsoft Corp.		3,004,757


Shares			Fair Value
	Common Stocks, continued
	Software, continued
	514	NetSuite, Inc.*^	$	56,113
	39,754	Oracle Corp.		1,787,736
	1,402	PTC, Inc.*		51,383
	2,290	Red Hat, Inc.*		158,331
	7,431	Salesforce.com, Inc.*^		440,733
	1,741	ServiceNow, Inc.*		118,127
	818	Solarwinds, Inc.*		40,761
	825	Solera Holdings, Inc.		42,224
	1,423	Splunk, Inc.*^		83,886
	471	Tableau Software, Inc., Class A*		39,922
	469	Veeva Systems, Inc., Class A*^		12,386
	1,057	VMware, Inc., Class A*^		87,224
	1,130	Workday, Inc., Class A*^		92,219

				7,594,630

	Specialty Retail (4.2%):
	138	Aaron’s, Inc.		4,219
	106	Abercrombie & Fitch Co., Class A^		3,036
	880	Advance Auto Parts, Inc.		140,166
	853	AutoNation, Inc.*		51,530
	395	AutoZone, Inc.*^		244,548
	963	Bed Bath & Beyond, Inc.*^		73,352
	1,063	Best Buy Co., Inc.		41,436
	70	Cabela’s, Inc., Class A*^		3,690
	1,830	CarMax, Inc.*		121,841
	829	Chico’s FAS, Inc.		13,438
	798	CST Brands, Inc.		34,801
	205	Dick’s Sporting Goods, Inc.^		10,178
	262	Foot Locker, Inc.^		14,719
	74	GameStop Corp., Class A^		2,501
	3,061	Gap, Inc. (The)^		128,899
	1,089	GNC Holdings, Inc., Class A		51,139
	16,553	Home Depot, Inc. (The)		1,737,569
	1,034	L Brands, Inc.		89,493
	12,331	Lowe’s Cos., Inc.		848,373
	214	Michaels Cos., Inc. (The)*^		5,292
	269	Murphy USA, Inc.*		18,523
	1,284	O’Reilly Automotive, Inc.*		247,324
	234	Penske Automotive Group, Inc.		11,482
	1,214	PetSmart, Inc.		98,692
	2,571	Ross Stores, Inc.		242,342
	1,481	Sally Beauty Holdings, Inc.*		45,526
	660	Signet Jewelers, Ltd.		86,836
	1,365	Tiffany & Co.^		145,864
	8,476	TJX Cos., Inc. (The)		581,284
	1,676	Tractor Supply Co.^		132,102
	778	Ulta Salon, Cosmetics & Fragrance, Inc.*		99,460
	953	Urban Outfitters, Inc.*^		33,479
	1,157	Williams-Sonoma, Inc.^		87,562

				5,450,696

	Technology Hardware, Storage & Peripherals (6.6%):
	1,309	3D Systems Corp.*		43,027
	72,981	Apple, Inc.		8,055,645


Shares			Fair Value
	Common Stocks, continued
	Technology Hardware, Storage & Peripherals, continued
	799	Diebold, Inc.^	$	27,677
	2,419	EMC Corp.^		71,941
	197	NCR Corp.*^		5,741
	1,418	NetApp, Inc.		58,776
	1,300	SanDisk Corp.^		127,374
	347	Stratasys, Ltd.*^		28,839
	625	Zebra Technologies Corp., Class A*		48,381

				8,467,401

	Textiles, Apparel & Luxury Goods (1.6%):
	650	Carter’s, Inc.		56,752
	3,305	Coach, Inc.		124,136
	428	Deckers Outdoor Corp.*^		38,965
	559	Fossil Group, Inc.*		61,904
	1,205	Hanesbrands, Inc.		134,502
	1,566	Kate Spade & Co.*		50,128
	2,472	Michael Kors Holdings, Ltd.*		185,647
	8,454	Nike, Inc., Class B		812,851
	872	PVH Corp.		111,764
	534	Ralph Lauren Corp.^		98,875
	2,094	Under Armour, Inc., Class A*^		142,183
	4,175	V.F. Corp.		312,708

				2,130,415

	Thrifts & Mortgage Finance (0.0%):
	248	Nationstar Mortgage Holdings, Inc.*^		6,991
	1,306	Ocwen Financial Corp.*^		19,721

				26,712

	Tobacco (1.9%):
	22,745	Altria Group, Inc.		1,120,645
	4,388	Lorillard, Inc.		276,181
	11,175	Philip Morris International, Inc.		910,204
	2,821	Reynolds American, Inc.		181,306

				2,488,336

	Trading Companies & Distributors (0.4%):
	81	Air Lease Corp.		2,779
	3,592	Fastenal Co.^		170,836
	1,313	HD Supply Holdings, Inc.*		38,720
	572	MRC Global, Inc.*		8,666
	567	MSC Industrial Direct Co., Inc., Class A^		46,069
	113	NOW, Inc.*^		2,907
	1,177	United Rentals, Inc.*^		120,066
	15	Veritiv Corp.*^		778
	706	W.W. Grainger, Inc.^		179,952

				570,773

	Wireless Telecommunication Services (0.1%):
	1,559	SBA Communications Corp., Class A*		172,675

	Total Common Stocks (Cost $74,708,429)			129,083,258


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (10.4%):
$	13,537,224	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)	$	13,537,224

	Total Securities Held as Collateral for Securities on Loan (Cost $13,537,224)			13,537,224

	Unaffiliated Investment Company (0.9%):
	1,142,163	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		1,142,163

	Total Unaffiliated Investment Company (Cost $1,142,163)			1,142,163

	Total Investment Securities (Cost $89,387,816)(c) — 110.4%			143,762,645
	Net other assets (liabilities) — (10.4)%			(13,503,569	)

	Net Assets — 100.0%		$	130,259,076

Cash of $71,000 has been segregated to cover margin requirements for the following open contracts as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investments in non-affiliates, at cost	$	89,281,564
Investments in affiliates, at cost		106,252

Total Investment securities, at cost	$	89,387,816

Investments in non-affiliates, at value*	$	143,551,685
Investments in affiliates, at value		210,960

Total Investment securities, at value		143,762,645
Cash		931
Segregated cash for collateral		71,000
Interest and dividends receivable		132,407
Receivable for investments sold		488
Receivable for variation margin on futures contracts		2,215
Prepaid expenses		1,106

Total Assets		143,970,792

Liabilities:
Payable for capital shares redeemed		43,657
Payable for collateral received on loaned securities		13,537,224
Payable for variation margin on futures contracts		17,150
Manager fees payable		48,730
Administration fees payable		3,787
Distribution fees payable		27,687
Custodian fees payable		5,868
Administrative and compliance services fees payable		488
Trustee fees payable		10
Other accrued liabilities		27,115

Total Liabilities		13,711,716

Net Assets	$	130,259,076

Net Assets Consist of:
Capital	$	61,453,696
Accumulated net investment income/(loss)		1,105,671
Accumulated net realized gains/(losses) from investment transactions		13,328,218
Net unrealized appreciation/(depreciation) on investments		54,371,491

Net Assets	$	130,259,076

Shares of beneficial interest (unlimited number of shares authorized, no par value)		7,613,786
Net Asset Value (offering and redemption price per share)	$	17.11

*	Includes securities on loan of $13,116,384.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	2,081,811
Dividends from affiliates		4,665
Income from securities lending		28,688
Foreign withholding tax		(316	)

Total Investment Income		2,114,848

Expenses:
Manager fees		579,788
Administration fees		42,467
Distribution fees		329,424
Custodian fees		20,714
Administrative and compliance services fees		1,740
Trustee fees		6,711
Professional fees		7,102
Shareholder reports		1,716
Other expenses		35,361

Total expenses		1,025,023

Net Investment Income/(Loss)		1,089,825

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		13,130,273
Net gains distribution from affiliated underlying funds		14,631
Net realized gains/(losses) on futures contracts		453,791
Change in net unrealized appreciation/depreciation on investments		39,430

Net Realized/Unrealized Gains/(Losses) on Investments		13,638,125

Change in Net Assets Resulting From Operations	$	14,727,950

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Russell 1000 Growth Index Fund (the “Fund”), and 30 are presented in separate reports.

securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $5.7 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $2,821 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide equity exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $1.3 million as of December 31, 2014. The monthly average notional amount for these contracts was $2.1 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $1,665 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $89,610,768. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

The Shareholders and Board of Trustees of Allianz Variable Insurance Products Trust:

We have audited the accompanying statement of assets and liabilities of AZL Russell 1000 Growth Index Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $8,853,703.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Robert DeChellis, Age 47 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present.	43	None
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Advisory Management, Allianz Investment Management LLC from December 2005 to November 2010.	43	None


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Russell 1000 Value Index Fund returned 12.59%. That compared to a 13.45% total return for its benchmark, the Russell 1000^® Value Index¹.

The Fund attempts to replicate the performance of the Russell 1000^® index of U.S. large-cap value stocks. U.S. equities moved higher in 2014 as domestic economic growth gained momentum and interest rates remained low. The period started out on a negative note, however: Slowing growth in China, softer economic data in the U.S. and expectations that the Federal Reserve would soon end its stimulus efforts all weighed on investors. Equity markets declined sharply in January, but the sell-off was short-lived. Investors soon learned that the recent weakness in the U.S. economic data was weather-related, and therefore temporary. Meanwhile, the Federal Reserve shifted its position, announcing a more cautious approach to raising short-term rates.

Fund Objective

The Fund’s investment objective is to match the total return of the Russell 1000^® Value Index. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing in all stocks in the Index in proportion to their weighting in the Index.

Investment Concerns

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			Since Inception (4/30/10)
AZL^® Russell 1000 Value Index Fund		12.59	%		19.98	%		13.50	%
Russell 1000^® Value Index		13.45	%		20.89	%		14.36	%


Expense Ratio¹	Gross
AZL^® Russell 1000 Value Index Fund		0.78	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 0.84% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

As a shareholder of the AZL Russell 1000 Value Index Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

	Common Stocks (99.0%):
	Aerospace & Defense (2.2%):
	659	Alliant Techsystems, Inc.	$	76,609
	3,923	Exelis, Inc.		68,770
	6,386	General Dynamics Corp.		878,841
	168	Huntington Ingalls Industries, Inc.		18,893
	1,806	L-3 Communications Holdings, Inc.		227,935
	4,215	Northrop Grumman Corp.		621,249
	6,529	Raytheon Co.^		706,242
	327	Rockwell Collins, Inc.		27,625
	180	Spirit AeroSystems Holdings, Inc., Class A*		7,747
	5,845	Textron, Inc.^		246,133
	837	Triumph Group, Inc.		56,263
	17,001	United Technologies Corp.		1,955,115
	224	Vectrus, Inc.*		6,138

				4,897,560

	Air Freight & Logistics (0.3%):
	3,514	FedEx Corp.		610,241

	Airlines (0.4%):
	236	Alaska Air Group, Inc.		14,103
	158	Copa Holdings SA, Class A		16,375
	16,779	Delta Air Lines, Inc.		825,359
	1,597	Southwest Airlines Co.		67,585

				923,422

	Auto Components (0.4%):
	1,255	Gentex Corp.		45,343
	10,145	Johnson Controls, Inc.		490,410
	331	Lear Corp.		32,464
	2,320	TRW Automotive Holdings Corp.*		238,612
	913	Visteon Corp.*		97,563

				904,392

	Automobiles (1.1%):
	81,102	Ford Motor Co.		1,257,081
	33,492	General Motors Co.		1,169,206

				2,426,287

	Banks (11.3%):
	3,361	Associated Banc-Corp.^		62,615
	219,607	Bank of America Corp.		3,928,769
	933	Bank of Hawaii Corp.^		55,336
	14,984	BB&T Corp.^		582,728
	561	BOK Financial Corp.^		33,682
	3,822	CIT Group, Inc.		182,806
	63,440	Citigroup, Inc.		3,432,738
	3,214	Citizens Financial Group, Inc.^		79,900
	998	City National Corp.^		80,648
	3,805	Comerica, Inc.		178,226
	1,776	Commerce Bancshares, Inc.^		77,219
	1,091	Cullen/Frost Bankers, Inc.		77,068
	2,989	East West Bancorp, Inc.		115,704
	17,806	Fifth Third Bancorp		362,797
	4,990	First Horizon National Corp.^		67,764
	7,325	First Niagara Financial Group, Inc.		61,750


Shares			Fair Value

	Common Stocks, continued
	Banks, continued
	2,883	First Republic Bank	$	150,262
	3,949	Fulton Financial Corp.		48,810
	17,339	Huntington Bancshares, Inc.		182,406
	79,039	JPMorgan Chase & Co.		4,946,262
	18,496	KeyCorp		257,094
	2,753	M&T Bank Corp.^		345,832
	2,130	PacWest Bancorp		96,830
	11,155	PNC Financial Services Group, Inc.		1,017,671
	2,149	Popular, Inc.*		73,173
	28,873	Regions Financial Corp.		304,899
	75	Signature Bank*		9,447
	11,103	SunTrust Banks, Inc.		465,216
	965	SVB Financial Group*		112,008
	2,932	Synovus Financial Corp.		79,428
	3,416	TCF Financial Corp.		54,280
	35,875	U.S. Bancorp		1,612,581
	99,733	Wells Fargo & Co.		5,467,364
	4,129	Zions Bancorp		117,718

				24,721,031

	Beverages (0.1%):
	217	Constellation Brands, Inc., Class A*		21,303
	2,847	Molson Coors Brewing Co., Class B		212,158

				233,461

	Biotechnology (0.1%):
	420	Alkermes plc*		24,595
	201	Alnylam Pharmaceuticals, Inc.*^		19,497
	825	Amgen, Inc.		131,415
	88	Cubist Pharmaceuticals, Inc.*^		8,857
	206	Myriad Genetics, Inc.*^		7,016

				191,380

	Building Products (0.1%):
	863	A.O. Smith Corp.		48,682
	2,018	Fortune Brands Home & Security, Inc.^		91,355
	2,447	Owens Corning, Inc.^		87,627

				227,664

	Capital Markets (3.5%):
	2,584	Ameriprise Financial, Inc.		341,734
	23,816	Bank of New York Mellon Corp. (The)		966,215
	1,644	BlackRock, Inc., Class A +		587,829
	19,576	Charles Schwab Corp. (The)		590,999
	6,045	ETRADE Financial Corp.		146,621
	530	Federated Investors, Inc., Class B^		17,453
	1,513	Franklin Resources, Inc.^		83,775
	9,339	Goldman Sachs Group, Inc. (The)		1,810,178
	7,673	Invesco, Ltd.		303,237
	1,334	Legg Mason, Inc.^		71,196
	32,032	Morgan Stanley		1,242,842
	4,951	Northern Trust Corp.		333,697
	3,042	NorthStar Asset Management Group, Inc.		68,658
	2,613	Raymond James Financial, Inc.		149,699


Shares			Fair Value

	Common Stocks, continued
	Capital Markets, continued
	170	SEI Investments Co.	$	6,807
	8,982	State Street Corp.		705,087
	731	TD Ameritrade Holding Corp.^		26,155

				7,452,182

	Chemicals (1.5%):
	4,429	Air Products & Chemicals, Inc.		638,796
	996	Albemarle Corp.^		59,889
	1,445	Ashland, Inc.		173,053
	369	Axalta Coating Systems, Ltd.*		9,601
	1,276	Cabot Corp.		55,965
	2,985	Celanese Corp., Series A		178,981
	1,091	CF Industries Holdings, Inc.		297,341
	1,324	Cytec Industries, Inc.		61,129
	21,120	Dow Chemical Co. (The)		963,284
	1,066	E.I. du Pont de Nemours & Co.		78,820
	273	Eastman Chemical Co.		20,710
	1,232	Huntsman Corp.^		28,065
	7,006	Mosaic Co. (The)		319,824
	810	Rayonier Advanced Materials, Inc.^		18,063
	1,423	Rockwood Holdings, Inc.		112,132
	185	RPM International, Inc.		9,381
	1,345	Sigma Aldrich Corp.		184,628
	213	W.R. Grace & Co.*		20,318
	122	Westlake Chemical Corp.		7,453

				3,237,433

	Commercial Services & Supplies (0.6%):
	3,651	ADT Corp. (The)^		132,276
	410	Cintas Corp.^		32,160
	353	Clean Harbors, Inc.*^		16,962
	2,429	Corrections Corp. of America^		88,270
	1,306	Covanta Holding Corp.		28,745
	409	Iron Mountain, Inc.^		15,812
	1,761	KAR Auction Services, Inc.		61,019
	2,317	Pitney Bowes, Inc.		56,465
	3,814	R.R. Donnelley & Sons Co.		64,094
	5,562	Republic Services, Inc., Class A		223,871
	944	Tyco International plc		41,404
	1,024	Waste Connections, Inc.		45,046
	8,697	Waste Management, Inc.		446,329

				1,252,453

	Communications Equipment (1.7%):
	30	Arista Networks, Inc.*^		1,823
	9,108	Brocade Communications Systems, Inc.		107,839
	106,981	Cisco Systems, Inc.		2,975,676
	669	EchoStar Corp., Class A*		35,123
	1,774	Harris Corp.		127,409
	4,758	JDS Uniphase Corp.*^		65,280
	7,074	Juniper Networks, Inc.		157,892
	3,229	Motorola Solutions, Inc.^		216,600

				3,687,642


Shares			Fair Value

	Common Stocks, continued
	Construction & Engineering (0.2%):
	3,141	Aecom Technology Corp.*	$	95,392
	1,289	Fluor Corp.		78,152
	2,771	Jacobs Engineering Group, Inc.*		123,837
	3,071	KBR, Inc.		52,053
	3,391	Quanta Services, Inc.*		96,270

				445,704

	Construction Materials (0.1%):
	2,740	Vulcan Materials Co.		180,100

	Consumer Finance (0.9%):
	626	Ally Financial, Inc.*		14,786
	11,937	Capital One Financial Corp.		985,399
	9,726	Discover Financial Services		636,956
	8,854	Navient Corp.		191,335
	1,678	Santander Consumer USA Holdings, Inc.^		32,906
	5,857	SLM Corp.		59,683
	759	Synchrony Financial*		22,580

				1,943,645

	Containers & Packaging (0.3%):
	1,072	AptarGroup, Inc.^		71,652
	1,311	Avery Dennison Corp.		68,015
	2,099	Bemis Co., Inc.		94,896
	648	Greif, Inc., Class A		30,605
	3,517	MeadWestvaco Corp.		156,120
	1,355	Owens-Illinois, Inc.*		36,571
	3,007	Rock-Tenn Co., Class A		183,367
	2,130	Sonoco Products Co.		93,081

				734,307

	Distributors (0.0%):
	196	Genuine Parts Co.		20,888

	Diversified Consumer Services (0.1%):
	2,019	Apollo Group, Inc., Class A*		68,868
	1,342	DeVry, Inc.		63,705
	73	Graham Holdings Co., Class B		63,051
	1,002	Service Corp. International^		22,745
	291	ServiceMaster Global Holdings, Inc.*		7,790

				226,159

	Diversified Financial Services (0.6%):
	6,650	CME Group, Inc.		589,523
	1,869	FNFV Group*		29,418
	1,108	Interactive Brokers Group, Inc., Class A		32,309
	1,389	IntercontinentalExchange Group, Inc.		304,594
	6,455	Leucadia National Corp.^		144,721
	1,371	MSCI, Inc., Class A^		65,040
	2,449	NASDAQ OMX Group, Inc. (The)		117,454
	2,853	Voya Financial, Inc.		120,910

				1,403,969

	Diversified Telecommunication Services (1.9%):
	108,397	AT&T, Inc.^		3,641,054
	11,258	CenturyLink, Inc.^		445,592


Shares			Fair Value

	Common Stocks, continued
	Diversified Telecommunication Services, continued
	20,998	Frontier Communications Corp.^	$	140,057
	900	Windstream Holdings, Inc.^		7,416
	194	Zayo Group Holdings, Inc.*^		5,931

				4,240,050

	Electric Utilities (2.8%):
	10,181	American Electric Power Co., Inc.		618,190
	14,770	Duke Energy Corp.^		1,233,885
	6,820	Edison International		446,574
	3,756	Entergy Corp.^		328,575
	17,917	Exelon Corp.^		664,362
	8,791	FirstEnergy Corp.^		342,761
	3,230	Great Plains Energy, Inc.		91,764
	2,138	Hawaiian Electric Industries, Inc.^		71,580
	198	ITC Holdings Corp.		8,005
	6,616	Northeast Utilities		354,088
	4,172	OGE Energy Corp.		148,023
	5,259	Pepco Holdings, Inc.		141,625
	2,312	Pinnacle West Capital Corp.		157,933
	13,848	PPL Corp.		503,098
	18,616	Southern Co. (The)^		914,232
	2,690	Westar Energy, Inc.^		110,936

				6,135,631

	Electrical Equipment (0.7%):
	2,337	Babcock & Wilcox Co. (The)		70,811
	9,947	Eaton Corp. plc		675,998
	3,718	Emerson Electric Co.		229,512
	1,041	Hubbell, Inc., Class B		111,210
	934	Regal-Beloit Corp.		70,237
	1,144	Roper Industries, Inc.		178,864

				1,336,632

	Electronic Equipment, Instruments & Components (0.5%):
	2,088	Arrow Electronics, Inc.*		120,875
	2,310	Avnet, Inc.		99,376
	1,040	AVX Corp.^		14,560
	20,939	Corning, Inc.		480,132
	999	Dolby Laboratories, Inc., Class A		43,077
	869	FLIR Systems, Inc.		28,077
	3,205	Ingram Micro, Inc., Class A*		88,586
	4,262	Jabil Circuit, Inc.		93,039
	2,982	Keysight Technologies, Inc.*		100,702
	1,793	Knowles Corp.*^		42,225
	790	Tech Data Corp.*		49,952
	2,880	Vishay Intertechnology, Inc.^		40,752

				1,201,353

	Energy Equipment & Services (0.8%):
	1,045	Atwood Oceanics, Inc.*		29,647
	8,331	Baker Hughes, Inc.		467,118
	1,542	Cameron International Corp.*		77,023
	1,403	Diamond Offshore Drilling, Inc.^		51,504
	658	Frank’s International NV		10,943


Shares			Fair Value

	Common Stocks, continued
	Energy Equipment & Services, continued
	659	Helmerich & Payne, Inc.	$	44,430
	5,602	Nabors Industries, Ltd.		72,714
	8,184	National-Oilwell Varco, Inc.^		536,297
	990	Oil States International, Inc.*		48,411
	1,444	Patterson-UTI Energy, Inc.		23,956
	2,587	Rowan Cos. plc, Class A		60,329
	5,196	Seadrill, Ltd.^		62,040
	630	Seventy Seven Energy, Inc.*^		3,408
	3,038	Superior Energy Services, Inc.		61,216
	1,065	Tidewater, Inc.^		34,517
	978	Unit Corp.*		33,350

				1,616,903

	Food & Staples Retailing (2.6%):
	526	Costco Wholesale Corp.		74,561
	20,951	CVS Caremark Corp.		2,017,790
	4,824	Safeway, Inc.		169,419
	7,650	Sysco Corp.		303,629
	4,955	Walgreens Boots Alliance, Inc.		377,571
	29,879	Wal-Mart Stores, Inc.		2,566,008
	4,349	Whole Foods Market, Inc.^		219,277

				5,728,255

	Food Products (1.5%):
	12,315	Archer-Daniels-Midland Co.		640,379
	3,082	Bunge, Ltd.		280,185
	1,222	Campbell Soup Co.^		53,768
	8,818	ConAgra Foods, Inc.^		319,917
	188	Hain Celestial Group, Inc.*^		10,959
	1,328	Ingredion, Inc.		112,668
	2,171	J.M. Smucker Co. (The)^		219,228
	464	Kellogg Co.		30,364
	35,325	Mondelez International, Inc., Class A		1,283,180
	1,140	Pilgrim’s Pride Corp.*		37,381
	1,130	Pinnacle Foods, Inc.		39,889
	6,698	Rite AID Corp.*^		50,369
	5,581	Tyson Foods, Inc., Class A		223,742

				3,302,029

	Gas Utilities (0.3%):
	2,499	AGL Resources, Inc.		136,220
	2,099	Atmos Energy Corp.		116,998
	1,760	National Fuel Gas Co.^		122,373
	3,658	Questar Corp.		92,474
	3,617	UGI Corp.		137,374

				605,439

	Health Care Equipment & Supplies (2.6%):
	31,366	Abbott Laboratories		1,412,097
	1,752	Alere, Inc.*		66,576
	25,061	Boston Scientific Corp.*		332,058
	4,341	CareFusion Corp.*		257,595
	259	Cooper Cos., Inc. (The)^		41,981
	9,415	Covidien plc		962,966


Shares			Fair Value

	Common Stocks, continued
	Health Care Equipment & Supplies, continued
	2,046	DENTSPLY International, Inc.	$	108,990
	170	Halyard Health, Inc.*		7,730
	1,118	Hill-Rom Holdings, Inc.		51,003
	3,378	Hologic, Inc.*		90,328
	54	Intuitive Surgical, Inc.*		28,563
	20,863	Medtronic, Inc.^		1,506,308
	461	Sirona Dental Systems, Inc.*		40,278
	2,120	St. Jude Medical, Inc.		137,864
	2,844	Stryker Corp.		268,275
	867	Teleflex, Inc.^		99,549
	3,250	Zimmer Holdings, Inc.		368,615

				5,780,776

	Health Care Providers & Services (3.1%):
	5,228	Aetna, Inc.		464,403
	5,837	Anthem, Inc.^		733,536
	6,518	Cardinal Health, Inc.		526,198
	5,164	CIGNA Corp.		531,427
	2,416	Community Health Systems, Inc.*		130,271
	2,431	DaVita, Inc.*		184,124
	2,054	Express Scripts Holding Co.*		173,912
	6,156	HCA Holdings, Inc.*		451,789
	1,681	Health Net, Inc.*		89,984
	3,226	Humana, Inc.^		463,350
	1,074	Laboratory Corp. of America Holdings*		115,885
	918	LifePoint Hospitals, Inc.*		66,013
	720	MEDNAX, Inc.*		47,599
	2,075	Omnicare, Inc.^		151,330
	1,617	Patterson Cos., Inc.		77,778
	3,026	Quest Diagnostics, Inc.^		202,924
	585	Quintiles Transnational Holdings, Inc.*		34,439
	20,463	UnitedHealth Group, Inc.		2,068,605
	1,451	Universal Health Services, Inc., Class B		161,438
	1,852	VCA Antech, Inc.*		90,322

				6,765,327

	Health Care Technology (0.0%):
	2,283	Allscripts Healthcare Solutions, Inc.*^		29,154

	Hotels, Restaurants & Leisure (0.6%):
	101	Aramark Holdings Corp.		3,146
	8,895	Carnival Corp.		403,210
	673	Choice Hotels International, Inc.^		37,701
	2,771	Darden Restaurants, Inc.^		162,464
	818	Hyatt Hotels Corp., Class A*^		49,252
	5,156	International Game Technology		88,941
	594	Marriott International, Inc., Class A		46,350
	7,148	MGM Resorts International*^		152,824
	148	Norwegian Cruise Line Holdings, Ltd.*		6,920
	3,478	Royal Caribbean Cruises, Ltd.^		286,692
	2,055	Starwood Hotels & Resorts Worldwide, Inc.		166,600
	5,709	Wendy’s Co. (The)^		51,552

				1,455,652


Shares			Fair Value

	Common Stocks, continued
	Household Durables (0.7%):
	5,955	D.R. Horton, Inc.	$	150,602
	2,558	Garmin, Ltd.^		135,139
	153	GoPro, Inc., Class A*^		9,673
	2,814	Jarden Corp.*		134,734
	1,472	Leggett & Platt, Inc.^		62,722
	3,499	Lennar Corp.^		156,790
	1,287	Mohawk Industries, Inc.*		199,948
	2,336	Newell Rubbermaid, Inc.		88,978
	7,932	PulteGroup, Inc.		170,221
	717	Taylor Morrison Home Corp., Class A*		13,544
	3,723	Toll Brothers, Inc.*^		127,587
	1,479	Whirlpool Corp.		286,542

				1,536,480

	Household Products (2.4%):
	468	Clorox Co. (The)^		48,770
	2,033	Colgate-Palmolive Co.		140,663
	1,292	Energizer Holdings, Inc.		166,100
	1,349	Kimberly-Clark Corp.		155,863
	53,289	Procter & Gamble Co. (The)		4,854,096

				5,365,492

	Independent Power and Renewable Electricity Producers (0.7%):
	15,190	AES Corp. (The)		209,166
	6,981	Calpine Corp.*		154,490
	9,108	NextEra Energy, Inc.		968,089
	7,062	NRG Energy, Inc.^		190,321

				1,522,066

	Industrial Conglomerates (2.8%):
	1,343	Carlisle Cos., Inc.		121,192
	9,703	Danaher Corp.		831,644
	209,417	General Electric Co.		5,291,968

				6,244,804

	Insurance (8.3%):
	7,049	ACE, Ltd.		809,789
	9,471	AFLAC, Inc.		578,583
	345	Alleghany Corp.*		159,908
	2,044	Allied World Assurance Co. Holdings AG		77,508
	9,054	Allstate Corp. (The)		636,044
	1,249	American Financial Group, Inc.		75,839
	30,212	American International Group, Inc.		1,692,174
	159	American National Insurance Co.		18,167
	1,442	Aon plc		136,745
	2,809	Arch Capital Group, Ltd.*		166,013
	193	Arthur J. Gallagher & Co.		9,086
	1,373	Aspen Insurance Holdings, Ltd.		60,096
	1,499	Assurant, Inc.		102,577
	3,500	Assured Guaranty, Ltd.		90,965
	2,135	Axis Capital Holdings, Ltd.		109,077
	38,222	Berkshire Hathaway, Inc., Class B*		5,739,032
	2,358	Brown & Brown, Inc.		77,602
	5,098	Chubb Corp. (The)		527,490


Shares			Fair Value

	Common Stocks, continued
	Insurance, continued
	3,425	Cincinnati Financial Corp.	$	177,518
	576	CNA Financial Corp.		22,297
	941	Endurance Specialty Holdings, Ltd.		56,309
	966	Everest Re Group, Ltd.		164,510
	5,801	FNF Group		199,844
	10,337	Genworth Financial, Inc., Class A*		87,865
	930	Hanover Insurance Group, Inc. (The)		66,328
	9,414	Hartford Financial Services Group, Inc. (The)		392,470
	2,089	HCC Insurance Holdings, Inc.		111,803
	5,522	Lincoln National Corp.		318,454
	6,819	Loews Corp.		286,534
	293	Markel Corp.*		200,072
	3,752	Marsh & McLennan Cos., Inc.		214,764
	2,851	MBIA, Inc.*		27,199
	579	Mercury General Corp.^		32,812
	19,540	MetLife, Inc.		1,056,919
	5,449	Old Republic International Corp.^		79,719
	1,059	PartnerRe, Ltd.		120,864
	6,160	Principal Financial Group, Inc.		319,950
	1,246	ProAssurance Corp.		56,257
	12,394	Progressive Corp. (The)		334,514
	1,652	Protective Life Corp.		115,062
	9,604	Prudential Financial, Inc.		868,778
	1,038	Reinsurance Group of America, Inc.		90,950
	843	RenaissanceRe Holdings, Ltd.		81,956
	920	StanCorp Financial Group, Inc.		64,271
	2,759	Torchmark Corp.		149,455
	7,253	Travelers Cos., Inc. (The)		767,730
	5,392	UnumProvident Corp.		188,073
	1,882	Validus Holdings, Ltd.		78,216
	2,103	W.R. Berkley Corp.		107,800
	128	White Mountains Insurance Group, Ltd.		80,654
	5,686	XL Group plc, Class B		195,428

				18,182,070

	Internet & Catalog Retail (0.1%):
	159	HomeAway, Inc.*^		4,735
	5,142	Liberty Media Corp. – Interactive, Class A*		151,278

				156,013

	Internet Software & Services (0.5%):
	1,668	AOL, Inc.*^		77,012
	927	IAC/InterActiveCorp		56,352
	19,785	Yahoo!, Inc.*		999,340

				1,132,704

	IT Services (0.4%):
	3,351	Amdocs, Ltd.		156,341
	130	Booz Allen Hamilton Holding Corp.		3,449
	2,849	Computer Sciences Corp.		179,629
	1,927	CoreLogic, Inc.*		60,874
	111	DST Systems, Inc.		10,451
	5,278	Fidelity National Information Services, Inc.		328,292


Shares			Fair Value

	Common Stocks, continued
	IT Services, continued
	2,994	Genpact, Ltd.*	$	56,676
	1,347	Leidos Holdings, Inc.		58,621
	735	Paychex, Inc.		33,935
	684	Teradata Corp.*^		29,877
	796	Total System Services, Inc.		27,032

				945,177

	Leisure Products (0.1%):
	373	Hasbro, Inc.^		20,511
	4,535	Mattel, Inc.		140,336

				160,847

	Life Sciences Tools & Services (0.6%):
	5,976	Agilent Technologies, Inc.		244,657
	426	Bio-Rad Laboratories, Inc., Class A*		51,359
	406	Bio-Techne Corp.		37,514
	547	Charles River Laboratories International, Inc.*		34,811
	121	Covance, Inc.*		12,565
	1,907	PerkinElmer, Inc.		83,393
	4,893	QIAGEN NV*^		114,789
	4,969	Thermo Fisher Scientific, Inc.		622,566
	141	VWR Corp.*^		3,648

				1,205,302

	Machinery (1.7%):
	1,955	AGCO Corp.^		88,366
	10,272	Caterpillar, Inc.		940,197
	643	Crane Co.		37,744
	5,917	Deere & Co.		523,477
	249	Donaldson Co., Inc.^		9,619
	896	Dover Corp.^		64,261
	119	IDEX Corp.		9,263
	5,179	Ingersoll-Rand plc		328,297
	1,509	ITT Corp.		61,054
	2,098	Joy Global, Inc.^		97,599
	1,642	Kennametal, Inc.		58,767
	1,101	Lincoln Electric Holdings, Inc.		76,068
	942	Navistar International Corp.*^		31,538
	1,633	Oshkosh Corp.^		79,445
	617	PACCAR, Inc.^		41,962
	1,457	Parker Hannifin Corp.^		187,880
	3,774	Pentair, Ltd.		250,669
	1,050	Snap-On, Inc.		143,577
	858	SPX Corp.		73,719
	2,902	Stanley Black & Decker, Inc.		278,824
	2,337	Terex Corp.^		65,156
	1,614	Timken Co.		68,886
	790	Trinity Industries, Inc.		22,128
	481	Valmont Industries, Inc.^		61,087
	1,046	Xylem, Inc.		39,821

				3,639,404

	Media (1.9%):
	1,030	CBS Corp., Class B		57,000
	518	Clear Channel Outdoor Holdings, Inc., Class A		5,486


Shares			Fair Value

	Common Stocks, continued
	Media, continued
	4,611	Comcast Corp., Class A	$	267,484
	1,186	DISH Network Corp., Class A*		86,448
	1,600	DreamWorks Animation SKG, Inc., Class A*^		35,728
	4,751	Gannett Co., Inc.^		151,699
	925	John Wiley & Sons, Inc., Class A		54,797
	970	Liberty Broadband Corp., Class C*^		48,325
	506	Liberty Broadband Corp., Class A*		25,346
	1,969	Liberty Media Corp.*		69,447
	3,976	Liberty Media Corp., Class C*		139,279
	1,481	Live Nation, Inc.*		38,669
	1,290	Madison Square Garden, Inc., Class A*		97,085
	10,419	News Corp., Class A*^		163,474
	1,295	Regal Entertainment Group, Class A^		27,661
	217	Starz – Liberty Capital*^		6,445
	7,440	Thomson Reuters Corp.		300,130
	18,422	Time Warner Cable, Inc.		1,573,607
	10,485	Twenty-First Century Fox, Inc.^		402,676
	5,850	Walt Disney Co. (The)		551,012

				4,101,798

	Metals & Mining (0.9%):
	24,540	Alcoa, Inc.		387,486
	2,269	Allegheny Technologies, Inc.		78,893
	1,050	Carpenter Technology Corp.^		51,713
	3,249	Cliffs Natural Resources, Inc.^		23,198
	21,646	Freeport-McMoRan Copper & Gold, Inc.		505,650
	10,441	Newmont Mining Corp.		197,335
	6,667	Nucor Corp.^		327,016
	1,628	Reliance Steel & Aluminum Co.		99,748
	1,348	Royal Gold, Inc.		84,520
	4,853	Steel Dynamics, Inc.		95,798
	1,536	Tahoe Resources, Inc.		21,304
	764	TimkenSteel Corp.		28,291
	3,022	United States Steel Corp.^		80,808

				1,981,760

	Multiline Retail (0.7%):
	785	Big Lots, Inc.^		31,416
	155	Dillard’s, Inc., Class A^		19,403
	1,552	Dollar General Corp.*		109,726
	122	Family Dollar Stores, Inc.		9,664
	5,797	J.C. Penney Co., Inc.*^		37,565
	4,127	Kohl’s Corp.^		251,912
	1,729	Macy’s, Inc.^		113,682
	127	Sears Holdings Corp.*		4,188
	11,895	Target Corp.^		902,949

				1,480,505

	Multi-Utilities (2.5%):
	2,324	Alliant Energy Corp.^		154,360
	5,081	Ameren Corp.		234,387
	9,000	CenterPoint Energy, Inc.		210,870
	5,645	CMS Energy Corp.		196,164


Shares			Fair Value

	Common Stocks, continued
	Multi-Utilities, continued
	6,132	Consolidated Edison, Inc.^	$	404,773
	11,402	Dominion Resources, Inc.		876,813
	3,706	DTE Energy Co.		320,087
	1,676	Integrys Energy Group, Inc.		130,477
	4,006	MDU Resources Group, Inc.		94,141
	6,593	NiSource, Inc.		279,675
	9,690	PG&E Corp.		515,896
	10,541	Public Service Enterprise Group, Inc.		436,503
	2,966	SCANA Corp.		179,146
	5,118	Sempra Energy		569,940
	4,791	TECO Energy, Inc.^		98,168
	1,730	Vectren Corp.		79,978
	4,723	Wisconsin Energy Corp.^		249,091
	10,509	Xcel Energy, Inc.		377,483

				5,407,952

	Oil, Gas & Consumable Fuels (10.5%):
	9,771	Anadarko Petroleum Corp.		806,108
	8,037	Apache Corp.^		503,679
	6,576	California Resources Corp.*		36,234
	8,493	Chesapeake Energy Corp.^		166,208
	39,756	Chevron Corp.		4,459,828
	1,603	Cimarex Energy Co.		169,918
	714	Cobalt International Energy, Inc.*		6,347
	25,639	ConocoPhillips		1,770,629
	4,815	CONSOL Energy, Inc.^		162,795
	204	CVR Energy, Inc.		7,897
	7,291	Denbury Resources, Inc.^		59,276
	8,501	Devon Energy Corp.		520,346
	1,526	Energen Corp.^		97,298
	729	EP Energy Corp., Class A*^		7,611
	292	EQT Corp.		22,104
	89,682	Exxon Mobil Corp.		8,291,102
	949	Golar LNG, Ltd.		34,610
	338	Gulfport Energy Corp.*		14,108
	5,817	Hess Corp.		429,411
	3,401	HollyFrontier Corp.		127,469
	20,439	Kinder Morgan, Inc.		864,774
	211	Laredo Petroleum Holdings, Inc.*^		2,184
	14,152	Marathon Oil Corp.		400,360
	1,344	Marathon Petroleum Corp.		121,309
	489	Memorial Resource Development Corp.*		8,817
	3,758	Murphy Oil Corp.^		189,854
	2,858	Newfield Exploration Co.*		77,509
	2,170	Noble Energy, Inc.		102,923
	16,407	Occidental Petroleum Corp.		1,322,568
	2,037	ONEOK, Inc.		101,422
	969	PBF Energy, Inc.^		25,814
	5,613	Peabody Energy Corp.^		43,445
	6,958	Phillips 66		498,889
	3,279	QEP Resources, Inc.		66,301
	10,226	SandRidge Energy, Inc.*^		18,611


Shares			Fair Value

	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	13,979	Spectra Energy Corp.^	$	507,438
	536	Teekay Shipping Corp.		27,277
	1,545	Tesoro Corp.		114,871
	2,252	Ultra Petroleum Corp.*^		29,636
	8,501	Valero Energy Corp.		420,800
	2,236	Whiting Petroleum Corp.*		73,788
	1,175	World Fuel Services Corp.^		55,143
	4,200	WPX Energy, Inc.*^		48,846

				22,815,557

	Paper & Forest Products (0.2%):
	1,346	Domtar Corp.		54,136
	7,663	International Paper Co.		410,584

				464,720

	Personal Products (0.0%):
	5,464	Avon Products, Inc.^		51,307
	298	Coty, Inc., Class A^		6,157

				57,464

	Pharmaceuticals (7.3%):
	22,253	Bristol-Myers Squibb Co.		1,313,595
	20,546	Eli Lilly & Co.		1,417,469
	3,501	Hospira, Inc.*		214,436
	49,806	Johnson & Johnson Co.		5,208,212
	657	Mallinckrodt plc*		65,063
	52,486	Merck & Co., Inc.		2,980,680
	2,252	Perrigo Co. plc		376,444
	133,212	Pfizer, Inc.		4,149,554

				15,725,453

	Professional Services (0.2%):
	502	Dun & Bradstreet Corp.^		60,722
	1,187	Equifax, Inc.		95,993
	1,669	Manpower, Inc.		113,776
	1,507	Nielsen Holdings NV		67,408
	1,361	Towers Watson & Co., Class A		154,024

				491,923

	Real Estate Investment Trusts (REITs) (4.7%):
	1,494	Alexandria Real Estate Equities, Inc.		132,578
	2,200	American Campus Communities, Inc.		90,992
	7,390	American Capital Agency Corp.		161,324
	3,054	American Homes 4 Rent, Class A		52,010
	19,020	American Realty Capital Properties, Inc.^		172,131
	19,842	Annaly Capital Management, Inc.		214,492
	1,325	Apartment Investment & Management Co., Class A		49,224
	2,701	AvalonBay Communities, Inc.^		441,315
	4,011	BioMed Realty Trust, Inc.		86,397
	2,820	Boston Properties, Inc.		362,906
	3,533	Brandywine Realty Trust		56,457
	971	Brixmor Property Group, Inc.		24,120
	1,793	Camden Property Trust^		132,395


Shares			Fair Value

	Common Stocks, continued
	Real Estate Investment Trusts (REITs), continued
	3,531	CBL & Associates Properties, Inc.	$	68,572
	21,450	Chimera Investment Corp.		68,211
	2,239	Columbia Property Trust, Inc.		56,759
	1,851	Corporate Office Properties Trust		52,513
	6,292	DDR Corp.^		115,521
	2,835	Digital Realty Trust, Inc.^		187,961
	2,990	Douglas Emmett, Inc.		84,916
	6,904	Duke Realty Corp.		139,461
	2,542	Equity Commonwealth		65,253
	461	Equity Lifestyle Properties, Inc.		23,765
	7,532	Equity Residential Property Trust		541,098
	1,310	Essex Property Trust, Inc.		270,646
	470	Federal Realty Investment Trust		62,726
	1,466	Gaming & Leisure Properties, Inc.		43,012
	11,871	General Growth Properties, Inc.		333,931
	9,547	HCP, Inc.		420,354
	3,146	Health Care REIT, Inc.		238,058
	2,200	Healthcare Trust of America, Inc., Class A^		59,255
	1,193	Home Properties, Inc.		78,261
	3,139	Hospitality Properties Trust		97,309
	15,847	Host Hotels & Resorts, Inc.		376,683
	1,723	Kilroy Realty Corp.		119,008
	8,597	Kimco Realty Corp.		216,129
	3,095	Liberty Property Trust		116,465
	3,254	Macerich Co. (The)		271,416
	7,597	MFA Financial, Inc.		60,700
	1,572	Mid-America Apartment Communities, Inc.^		117,397
	2,660	National Retail Properties, Inc.^		104,724
	3,344	NorthStar Realty Finance Corp.		58,788
	1,793	Omega Healthcare Investors, Inc.^		70,053
	2,350	Outfront Media, Inc.		63,074
	2,789	Paramount Group, Inc.*		51,848
	3,251	Piedmont Office Realty Trust, Inc., Class A^		61,249
	1,903	Plum Creek Timber Co., Inc.^		81,429
	1,144	Post Properties, Inc.		67,233
	10,411	ProLogis, Inc.		447,984
	232	Public Storage, Inc.		42,885
	2,291	Rayonier, Inc.		64,011
	4,638	Realty Income Corp.^		221,279
	1,935	Regency Centers Corp.		123,414
	4,906	Retail Properties of America, Inc., Class A		81,881
	4,252	Senior Housing Properties Trust		94,012
	1,653	Simon Property Group, Inc.		301,028
	1,963	SL Green Realty Corp.		233,636
	8,349	Spirit Realty Capital, Inc.		99,270
	4,630	Starwood Property Trust, Inc.^		107,601
	692	Tanger Factory Outlet Centers, Inc.		25,576
	90	Taubman Centers, Inc.		6,878
	7,663	Two Harbors Investment Corp.		76,783
	5,267	UDR, Inc.		162,329
	3,248	Ventas, Inc.^		232,882
	3,041	Vornado Realty Trust		357,956


Shares			Fair Value

	Common Stocks, continued
	Real Estate Investment Trusts (REITs), continued
	3,261	Washington Prime Group, Inc.^	$	56,154
	2,561	Weingarten Realty Investors		89,430
	9,860	Weyerhaeuser Co.^		353,875
	2,082	WP Carey, Inc.^		145,948

				10,144,931

	Real Estate Management & Development (0.1%):
	3,439	Forest City Enterprises, Inc., Class A*^		73,251
	439	Howard Hughes Corp. (The)*		57,254
	681	Jones Lang LaSalle, Inc.		102,102
	1,712	Realogy Holdings Corp.*		76,167

				308,774

	Road & Rail (0.7%):
	66	AMERCO, Inc.		18,761
	1,207	Con-way, Inc.		59,360
	20,963	CSX Corp.		759,489
	592	Genesee & Wyoming, Inc., Class A*		53,233
	533	Kansas City Southern Industries, Inc.		65,042
	5,088	Norfolk Southern Corp.		557,696
	1,115	Ryder System, Inc.		103,528

				1,617,109

	Semiconductors & Semiconductor Equipment (2.5%):
	4,108	Altera Corp.		151,750
	3,579	Analog Devices, Inc.		198,706
	8,465	Applied Materials, Inc.		210,948
	11,148	Broadcom Corp., Class A		483,043
	1,157	Cree, Inc.*^		37,279
	1,525	First Solar, Inc.*^		68,007
	84	Freescale Semiconductor Holdings I, Ltd.*^		2,119
	93	Freescale Semiconductor, Ltd.*		2,346
	95,123	Intel Corp.		3,452,013
	317	KLA-Tencor Corp.^		22,291
	2,492	Lam Research Corp.^		197,715
	8,506	Marvell Technology Group, Ltd.		123,338
	511	Maxim Integrated Products, Inc.		16,286
	2,742	Micron Technology, Inc.*		95,997
	9,769	NVIDIA Corp.^		195,868
	4,463	ON Semiconductor Corp.*		45,210
	3,788	SunEdison, Inc.*^		73,904
	842	Sunpower Corp. Common*^		21,749
	3,764	Teradyne, Inc.^		74,490

				5,473,059

	Software (1.9%):
	3,469	Activision Blizzard, Inc.		69,900
	1,493	Ansys, Inc.*		122,426
	1,009	Autodesk, Inc.*		60,601
	6,700	CA, Inc.		204,015
	342	Citrix Systems, Inc.*		21,820
	1,544	Electronic Arts, Inc.*		72,591
	358	FireEye, Inc.*^		11,306
	245	Informatica Corp.*		9,343


Shares			Fair Value

	Common Stocks, continued
	Software, continued
	60,896	Microsoft Corp.	$	2,828,618
	5,502	Nuance Communications, Inc.*		78,514
	1,981	Rovi Corp.*^		44,751
	14,481	Symantec Corp.		371,510
	3,236	Synopsys, Inc.*^		140,669
	15,167	Zynga, Inc.*		40,344

				4,076,408

	Specialty Retail (0.7%):
	1,081	Aaron’s, Inc.		33,046
	1,288	Abercrombie & Fitch Co., Class A^		36,888
	2,729	Ascena Retail Group, Inc.*		34,276
	2,239	Bed Bath & Beyond, Inc.*^		170,545
	4,217	Best Buy Co., Inc.		164,379
	934	Cabela’s, Inc., Class A*^		49,231
	1,422	CarMax, Inc.*		94,677
	1,753	Chico’s FAS, Inc.		28,416
	241	CST Brands, Inc.		10,510
	1,658	Dick’s Sporting Goods, Inc.^		82,320
	1,577	DSW, Inc., Class A		58,822
	2,612	Foot Locker, Inc.^		146,742
	2,149	GameStop Corp., Class A^		72,636
	3,273	L Brands, Inc.		283,279
	214	Michaels Cos., Inc. (The)*^		5,292
	512	Murphy USA, Inc.*		35,256
	477	Penske Automotive Group, Inc.		23,406
	856	Sally Beauty Holdings, Inc.*		26,313
	531	Signet Jewelers, Ltd.		69,864
	13,543	Staples, Inc.^		245,400
	592	Urban Outfitters, Inc.*^		20,797

				1,692,095

	Technology Hardware, Storage & Peripherals (1.9%):
	38,523	EMC Corp.^		1,145,674
	39,578	Hewlett-Packard Co.		1,588,265
	1,305	Lexmark International, Inc., Class A^		53,857
	3,175	NCR Corp.*^		92,520
	4,160	NetApp, Inc.		172,432
	2,487	SanDisk Corp.^		243,676
	451	Stratasys, Ltd.*^		37,483
	4,640	Western Digital Corp.		513,648
	24,439	Xerox Corp.		338,725

				4,186,280

	Textiles, Apparel & Luxury Goods (0.0%):
	207	PVH Corp.		26,531
	309	Ralph Lauren Corp.^		57,215

				83,746

	Thrifts & Mortgage Finance (0.2%):
	2,158	BankUnited, Inc.		62,517
	11,025	Hudson City Bancorp, Inc.		111,573
	55	Nationstar Mortgage Holdings, Inc.*^		1,550
	9,274	New York Community Bancorp, Inc.^		148,385


Shares			Fair Value

	Common Stocks, continued
	Thrifts & Mortgage Finance, continued
	6,502	People’s United Financial, Inc.^	$	98,700
	1,604	TFS Financial Corp.		23,876

				446,601

	Tobacco (0.6%):
	2,248	Altria Group, Inc.		110,759
	13,566	Philip Morris International, Inc.		1,104,950
	1,580	Reynolds American, Inc.		101,547

				1,317,256

	Trading Companies & Distributors (0.1%):
	1,962	Air Lease Corp.		67,316
	970	GATX Corp.^		55,814
	1,132	MRC Global, Inc.*		17,150
	2,073	NOW, Inc.*^		53,338
	152	Veritiv Corp.*^		7,884
	922	WESCO International, Inc.*^		70,266

				271,768

	Water Utilities (0.1%):
	3,749	American Water Works Co., Inc.		199,822
	3,704	Aqua America, Inc.		98,897

				298,719

	Wireless Telecommunication Services (0.1%):
	15,154	Sprint Corp.*^		62,889
	1,793	Telephone & Data Systems, Inc.		45,273


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Wireless Telecommunication Services, continued
	5,562	T-Mobile US, Inc.*	$	149,841
	299	United States Cellular Corp.*^		11,909

				269,912

	Total Common Stocks (Cost $150,022,091)			216,721,270

	Right (0.0%):
	Media (0.0%):
	303	Liberty Broadband Corp.*^		2,879

	Total Right (Cost $—)			2,879

	Securities Held as Collateral for Securities on Loan (13.1%):
$	28,794,956	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)		28,794,956

	Total Securities Held as Collateral for Securities on Loan (Cost $28,794,956)			28,794,956

	Unaffiliated Investment Company (0.6%):
	1,422,445	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		1,422,445

	Total Unaffiliated Investment Company (Cost $1,422,445)			1,422,445

	Total Investment Securities (Cost $180,239,492)(c) — 112.7%			246,941,550
	Net other assets (liabilities) — (12.7)%			(27,783,175	)

	Net Assets — 100.0%		$	219,158,375

Cash of $107,000 has been segregated to cover margin requirements for the following open contracts as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investments in non-affiliates, at cost	$	179,900,284
Investments in affiliates, at cost		339,208

Total Investment securities, at cost	$	180,239,492

Investments in non-affiliates, at value*	$	246,353,721
Investments in affiliates, at value		587,829

Total Investment securities, at value		246,941,550
Cash		7,448
Segregated cash for collateral		107,000
Interest and dividends receivable		370,953
Receivable for capital shares issued		1,002,762
Receivable for variation margin on futures contracts		3,645
Prepaid expenses		1,864

Total Assets		248,435,222

Liabilities:
Payable for capital shares redeemed		293,706
Payable for collateral received on loaned securities		28,794,956
Payable for variation margin on futures contracts		25,515
Manager fees payable		82,108
Administration fees payable		5,498
Distribution fees payable		46,652
Custodian fees payable		5,344
Administrative and compliance services fees payable		551
Trustee fees payable		11
Other accrued liabilities		22,506

Total Liabilities		29,276,847

Net Assets	$	219,158,375

Net Assets Consist of:
Capital	$	135,853,936
Accumulated net investment income/(loss)		3,388,168
Accumulated net realized gains/(losses) from investment transactions		13,190,073
Net unrealized appreciation/(depreciation) on investments		66,726,198

Net Assets	$	219,158,375

Shares of beneficial interest (unlimited number of shares authorized, no par value)		14,783,642
Net Asset Value (offering and redemption price per share)	$	14.82

*	Includes securities on loan of $27,817,214.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	4,996,373
Dividends from affiliates		13,616
Income from securities lending		36,827
Foreign withholding tax		(1,999	)

Total Investment Income		5,044,817

Expenses:
Manager fees		939,140
Administration fees		63,432
Distribution fees		533,601
Custodian fees		18,994
Administrative and compliance services fees		2,637
Trustee fees		10,230
Professional fees		11,224
Shareholder reports		2,582
Other expenses		46,030

Total expenses		1,627,870

Net Investment Income/(Loss)		3,416,947

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		13,156,376
Net realized gains distributions from affiliated underlying funds		29,368
Net realized gains/(losses) on futures contracts		604,325
Change in net unrealized appreciation/depreciation on investments		8,536,244

Net Realized/Unrealized Gains/(Losses) on Investments		22,326,313

Change in Net Assets Resulting From Operations	$	25,743,260

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Russell 1000 Value Index Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $3,635 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide equity exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $1.8 million as of December 31, 2014. The monthly average notional amount for these contracts was $3.3 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $2,640 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $180,676,234. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Russell 1000 Value Index Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2014, 94.49% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $18,319,368.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $1,393,772.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® S&P 500 Index Fund (Class 2 Shares) returned 13.12%. That compared to a 13.69% total return for its benchmark, the S&P 500^® Index¹.

The Fund attempts to replicate the performance of the S&P 500^® Index of U.S. large-cap stocks. U.S. equities moved higher in 2014 as domestic economic growth gained momentum and interest rates remained low. The period started out on a negative note, however: Slowing growth in China, softer economic data in the U.S. and expectations that the Federal Reserve (the Fed) would soon end its stimulus efforts all weighed on investors. Equity markets declined sharply in January, but the sell-off was short-lived. Investors soon learned that the recent weakness in the U.S. economic data was weather-related, and therefore temporary. Meanwhile, the Federal Reserve shifted its position, announcing a more cautious approach to raising short-term rates.*

Fund Objective

The Fund’s investment objective is to seek to match the total return of the Standard & Poor’s 500^® Index. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing in all 500 stocks in the Index in proportion to their weighting in the Index.

Investment Concerns

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	Inception Date		1 Year			3 Year			5 Year			Since Inception
AZL^® S&P 500 Index Fund (Class 1 Shares)		5/14/07		13.41	%		20.08	%		15.15	%		6.07	%
AZL^® S&P 500 Index Fund (Class 2 Shares)		5/1/07		13.12	%		19.79	%		14.87	%		5.97	%
S&P 500^® Index		5/1/07		13.69	%		20.41	%		15.45	%		6.63	%


Expense Ratio	Gross
AZL^® S&P 500 Index Fund (Class 1 Shares)		0.24	%
AZL^® S&P 500 Index Fund (Class 2 Shares)		0.49	%

Expense Ratios are based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 0.46% for Class 1 Shares and 0.71% for Class 2 Shares through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Standard & Poor’s 500^® Index (“S&P 500^®”), which is an unmanaged index that is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL S&P 500 Index Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (97.9%):
	Aerospace & Defense (2.6%):
	62,793	Boeing Co. (The)	$	8,161,834
	29,816	General Dynamics Corp.		4,103,278
	74,138	Honeywell International, Inc.		7,407,869
	8,048	L-3 Communications Holdings, Inc.		1,015,738
	25,426	Lockheed Martin Corp.		4,896,285
	19,132	Northrop Grumman Corp.		2,819,865
	13,518	Precision Castparts Corp.^		3,256,216
	29,176	Raytheon Co.^		3,155,968
	12,557	Rockwell Collins, Inc.		1,060,815
	26,236	Textron, Inc.		1,104,798
	80,296	United Technologies Corp.		9,234,040

				46,216,706

	Air Freight & Logistics (0.8%):
	13,920	C.H. Robinson Worldwide, Inc.^		1,042,469
	18,346	Expeditors International of Washington, Inc.		818,415
	24,948	FedEx Corp.		4,332,470
	66,013	United Parcel Service, Inc., Class B^		7,338,665

				13,532,019

	Airlines (0.4%):
	79,200	Delta Air Lines, Inc.^		3,895,848
	64,285	Southwest Airlines Co.		2,720,541

				6,616,389

	Auto Components (0.4%):
	21,533	BorgWarner, Inc.		1,183,238
	28,043	Delphi Automotive plc		2,039,287
	25,996	Goodyear Tire & Rubber Co.^		742,706
	63,096	Johnson Controls, Inc.		3,050,061

				7,015,292

	Automobiles (0.6%):
	364,503	Ford Motor Co.		5,649,797
	127,823	General Motors Co.		4,462,301
	20,295	Harley-Davidson, Inc.		1,337,643

				11,449,741

	Banks (5.8%):
	995,969	Bank of America Corp.		17,817,885
	68,222	BB&T Corp.^		2,653,154
	286,911	Citigroup, Inc.		15,524,754
	17,085	Comerica, Inc.		800,261
	78,048	Fifth Third Bancorp		1,590,228
	76,951	Huntington Bancshares, Inc.^		809,525
	354,027	JPMorgan Chase & Co.		22,155,009
	81,832	KeyCorp		1,137,465
	12,549	M&T Bank Corp.^		1,576,405
	49,837	PNC Financial Services Group, Inc.		4,546,630
	130,872	Regions Financial Corp.		1,382,008
	49,389	SunTrust Banks, Inc.^		2,069,399
	169,468	U.S. Bancorp^		7,617,587
	447,079	Wells Fargo & Co.		24,508,870
	19,149	Zions Bancorp^		545,938

				104,735,118


Shares			Fair Value
	Common Stocks, continued
	Beverages (2.1%):
	14,766	Brown-Forman Corp., Class B^	$	1,297,045
	373,341	Coca-Cola Co. (The)		15,762,457
	21,039	Coca-Cola Enterprises, Inc.		930,345
	15,894	Constellation Brands, Inc., Class A*		1,560,314
	18,484	Dr Pepper Snapple Group, Inc.		1,324,933
	15,136	Molson Coors Brewing Co., Class B		1,127,935
	13,656	Monster Beverage Corp.*		1,479,628
	141,738	PepsiCo, Inc.		13,402,745

				36,885,402

	Biotechnology (2.8%):
	18,780	Alexion Pharmaceuticals, Inc.*		3,474,863
	72,040	Amgen, Inc.		11,475,252
	22,366	Biogen Idec, Inc.*		7,592,139
	75,643	Celgene Corp.*		8,461,426
	142,880	Gilead Sciences, Inc.*		13,467,869
	7,029	Regeneron Pharmaceuticals, Inc.*^		2,883,647
	22,781	Vertex Pharmaceuticals, Inc.*^		2,706,383

				50,061,579

	Building Products (0.1%):
	9,077	Allegion plc		503,410
	33,813	Masco Corp.		852,088

				1,355,498

	Capital Markets (2.3%):
	5,255	Affiliated Managers Group, Inc.*		1,115,321
	17,478	Ameriprise Financial, Inc.^		2,311,466
	106,613	Bank of New York Mellon Corp. (The)		4,325,289
	12,064	BlackRock, Inc., Class A+		4,313,604
	108,831	Charles Schwab Corp. (The)		3,285,608
	27,461	ETRADE Financial Corp.		666,067
	37,112	Franklin Resources, Inc.^		2,054,891
	38,362	Goldman Sachs Group, Inc. (The)		7,435,707
	40,898	Invesco, Ltd.		1,616,289
	9,611	Legg Mason, Inc.^		512,939
	144,608	Morgan Stanley		5,610,790
	20,902	Northern Trust Corp.^		1,408,795
	39,541	State Street Corp.		3,103,969
	24,568	T. Rowe Price Group, Inc.^		2,109,408

				39,870,143

	Chemicals (2.3%):
	18,217	Air Products & Chemicals, Inc.^		2,627,438
	6,341	Airgas, Inc.		730,356
	4,720	CF Industries Holdings, Inc.		1,286,389
	104,923	Dow Chemical Co. (The)^		4,785,538
	85,800	E.I. du Pont de Nemours & Co.^		6,344,051
	14,029	Eastman Chemical Co.		1,064,240
	25,582	Ecolab, Inc.		2,673,831
	12,580	FMC Corp.^		717,437
	7,716	International Flavor & Fragrances, Inc.^		782,094
	39,358	LyondellBasell Industries NV, Class A		3,124,632
	45,846	Monsanto Co.		5,477,222


Shares			Fair Value
	Common Stocks, continued
	Chemicals, continued
	29,999	Mosaic Co. (The)	$	1,369,454
	12,986	PPG Industries, Inc.		3,001,714
	27,596	Praxair, Inc.^		3,575,338
	7,729	Sherwin Williams Co.^		2,033,036
	11,281	Sigma Aldrich Corp.		1,548,543

				41,141,313

	Commercial Services & Supplies (0.5%):
	16,403	ADT Corp. (The)^		594,281
	9,240	Cintas Corp.^		724,786
	17,666	Iron Mountain, Inc.^		682,968
	19,064	Pitney Bowes, Inc.^		464,590
	23,788	Republic Services, Inc., Class A^		957,467
	8,084	Stericycle, Inc.*		1,059,651
	39,636	Tyco International plc		1,738,434
	40,336	Waste Management, Inc.^		2,070,043

				8,292,220

	Communications Equipment (1.6%):
	484,289	Cisco Systems, Inc.		13,470,500
	6,979	F5 Networks, Inc.*		910,515
	9,839	Harris Corp.		706,637
	36,469	Juniper Networks, Inc.^		813,988
	20,065	Motorola Solutions, Inc.^		1,345,960
	157,459	QUALCOMM, Inc.		11,703,927

				28,951,527

	Construction & Engineering (0.1%):
	14,837	Fluor Corp.^		899,568
	12,321	Jacobs Engineering Group, Inc.*^		550,625
	20,810	Quanta Services, Inc.*		590,796

				2,040,989

	Construction Materials (0.1%):
	5,905	Martin Marietta Materials, Inc.^		651,440
	12,402	Vulcan Materials Co.		815,183

				1,466,623

	Consumer Finance (0.9%):
	84,273	American Express Co.		7,840,759
	52,656	Capital One Financial Corp.		4,346,753
	42,950	Discover Financial Services		2,812,796
	38,859	Navient Corp.^		839,743

				15,840,051

	Containers & Packaging (0.2%):
	8,617	Avery Dennison Corp.		447,050
	13,025	Ball Corp.		887,913
	15,804	MeadWestvaco Corp.		701,540
	15,831	Owens-Illinois, Inc.*		427,279
	20,011	Sealed Air Corp.^		849,067

				3,312,849

	Distributors (0.1%):
	14,515	Genuine Parts Co.		1,546,864


Shares			Fair Value
	Common Stocks, continued
	Diversified Consumer Services (0.0%):
	26,022	H&R Block, Inc.^	$	876,421

	Diversified Financial Services (0.4%):
	29,989	CME Group, Inc.^		2,658,525
	10,688	IntercontinentalExchange Group, Inc.^		2,343,772
	29,852	Leucadia National Corp.^		669,282
	17,387	Moody’s Corp.		1,665,848
	11,190	NASDAQ OMX Group, Inc. (The)^		536,672

				7,874,099

	Diversified Telecommunication Services (2.2%):
	491,240	AT&T, Inc.^		16,500,752
	54,054	CenturyLink, Inc.^		2,139,457
	95,129	Frontier Communications Corp.^		634,510
	26,413	Level 3 Communications, Inc.*^		1,304,274
	393,003	Verizon Communications, Inc.		18,384,681
	56,756	Windstream Holdings, Inc.^		467,669

				39,431,343

	Electric Utilities (1.6%):
	46,337	American Electric Power Co., Inc.		2,813,583
	66,986	Duke Energy Corp.^		5,596,010
	30,889	Edison International		2,022,612
	17,095	Entergy Corp.^		1,495,471
	81,402	Exelon Corp.^		3,018,386
	39,857	FirstEnergy Corp.^		1,554,024
	30,007	Northeast Utilities		1,605,975
	23,952	Pepco Holdings, Inc.		645,027
	10,525	Pinnacle West Capital Corp.		718,963
	62,992	PPL Corp.		2,288,499
	85,221	Southern Co. (The)^		4,185,203

				25,943,753

	Electrical Equipment (0.6%):
	23,373	AMETEK, Inc.^		1,230,121
	44,901	Eaton Corp. plc^		3,051,472
	65,754	Emerson Electric Co.		4,058,995
	12,860	Rockwell Automation, Inc.		1,430,032
	9,487	Roper Industries, Inc.		1,483,292

				11,253,912

	Electronic Equipment, Instruments & Components (0.4%):
	29,288	Amphenol Corp., Class A		1,575,987
	121,628	Corning, Inc.		2,788,930
	13,217	FLIR Systems, Inc.		427,041
	38,463	TE Connectivity, Ltd.		2,432,785

				7,224,743

	Energy Equipment & Services (1.3%):
	40,986	Baker Hughes, Inc.		2,298,085
	18,703	Cameron International Corp.*		934,215
	6,239	Diamond Offshore Drilling, Inc.^		229,034
	22,106	Ensco plc, Class A, ADR^		662,075
	22,097	FMC Technologies, Inc.*		1,035,023
	80,156	Halliburton Co.		3,152,535


Shares			Fair Value
	Common Stocks, continued
	Energy Equipment & Services, continued
	10,186	Helmerich & Payne, Inc.	$	686,740
	27,315	Nabors Industries, Ltd.		354,549
	40,781	National-Oilwell Varco, Inc.^		2,672,379
	23,838	Noble Corp. plc		394,996
	121,868	Schlumberger, Ltd.		10,408,746
	32,049	Transocean, Ltd.^		587,458

				23,415,835

	Food & Staples Retailing (2.5%):
	41,460	Costco Wholesale Corp.		5,876,955
	108,570	CVS Caremark Corp.		10,456,377
	46,512	Kroger Co. (The)		2,986,536
	21,885	Safeway, Inc.		768,601
	55,681	Sysco Corp.^		2,209,979
	82,382	Walgreens Boots Alliance, Inc.		6,277,508
	149,576	Wal-Mart Stores, Inc.^		12,845,588
	34,029	Whole Foods Market, Inc.^		1,715,742

				43,137,286

	Food Products (1.6%):
	61,019	Archer-Daniels-Midland Co.		3,172,988
	17,002	Campbell Soup Co.^		748,088
	40,239	ConAgra Foods, Inc.^		1,459,871
	57,182	General Mills, Inc.^		3,049,516
	14,060	Hershey Co.^		1,461,256
	12,783	Hormel Foods Corp.		665,994
	9,693	J.M. Smucker Co. (The)^		978,799
	23,876	Kellogg Co.^		1,562,445
	11,476	Keurig Green Mountain, Inc.^		1,519,365
	55,741	Kraft Foods Group, Inc.		3,492,731
	12,188	McCormick & Co.		905,568
	19,144	Mead Johnson Nutrition Co.		1,924,738
	159,115	Mondelez International, Inc., Class A		5,779,853
	27,629	Tyson Foods, Inc., Class A		1,107,647

				27,828,859

	Gas Utilities (0.0%):
	11,396	AGL Resources, Inc.		621,196

	Health Care Equipment & Supplies (2.2%):
	142,610	Abbott Laboratories		6,420,303
	51,331	Baxter International, Inc.		3,762,049
	18,183	Becton, Dickinson & Co.		2,530,346
	125,731	Boston Scientific Corp.*		1,665,936
	7,095	C.R. Bard, Inc.		1,182,169
	19,316	CareFusion Corp.*		1,146,211
	42,883	Covidien plc		4,386,073
	13,325	DENTSPLY International, Inc.		709,823
	10,133	Edwards Lifesciences Corp.*		1,290,742
	3,434	Intuitive Surgical, Inc.*		1,816,380
	93,222	Medtronic, Inc.^		6,730,629
	27,081	St. Jude Medical, Inc.^		1,761,077
	28,307	Stryker Corp.		2,670,199
	9,471	Varian Medical Systems, Inc.*		819,336


Shares			Fair Value
	Common Stocks, continued
	Health Care Equipment & Supplies, continued
	16,041	Zimmer Holdings, Inc.	$	1,819,370

				38,710,643

	Health Care Providers & Services (2.3%):
	33,291	Aetna, Inc.		2,957,240
	19,678	AmerisourceBergen Corp.		1,774,168
	25,566	Anthem, Inc.^		3,212,879
	31,346	Cardinal Health, Inc.		2,530,563
	28,786	Cerner Corp.*^		1,861,303
	24,753	CIGNA Corp.		2,547,331
	16,323	DaVita, Inc.*		1,236,304
	69,507	Express Scripts Holding Co.*		5,885,158
	14,503	Humana, Inc.^		2,083,066
	7,998	Laboratory Corp. of America Holdings*^		862,984
	21,961	McKesson, Inc.		4,558,664
	8,184	Patterson Cos., Inc.^		393,650
	13,664	Quest Diagnostics, Inc.^		916,308
	9,256	Tenet Healthcare Corp.*^		469,002
	90,899	UnitedHealth Group, Inc.^		9,188,979
	8,607	Universal Health Services, Inc., Class B		957,615

				41,435,214

	Hotels, Restaurants & Leisure (1.6%):
	42,700	Carnival Corp.		1,935,591
	2,944	Chipotle Mexican Grill, Inc.*		2,015,197
	12,510	Darden Restaurants, Inc.^		733,461
	20,129	Marriott International, Inc., Class A^		1,570,666
	92,169	McDonald’s Corp.		8,636,236
	15,833	Royal Caribbean Cruises, Ltd.^		1,305,114
	70,871	Starbucks Corp.		5,814,966
	16,915	Starwood Hotels & Resorts Worldwide, Inc.		1,371,299
	11,667	Wyndham Worldwide Corp.		1,000,562
	7,644	Wynn Resorts, Ltd.		1,137,121
	41,385	Yum! Brands, Inc.^		3,014,897

				28,535,110

	Household Durables (0.4%):
	31,308	D.R. Horton, Inc.		791,779
	11,489	Garmin, Ltd.^		606,964
	6,453	Harman International Industries, Inc.		688,600
	13,024	Leggett & Platt, Inc.^		554,953
	17,033	Lennar Corp.^		763,249
	5,843	Mohawk Industries, Inc.*^		907,768
	25,790	Newell Rubbermaid, Inc.		982,341
	31,674	PulteGroup, Inc.^		679,724
	7,394	Whirlpool Corp.		1,432,513

				7,407,891

	Household Products (1.9%):
	12,281	Clorox Co. (The)^		1,279,803
	81,138	Colgate-Palmolive Co.		5,613,938
	35,318	Kimberly-Clark Corp.		4,080,642
	255,905	Procter & Gamble Co. (The)		23,310,386

				34,284,769


Shares			Fair Value
	Common Stocks, continued
	Independent Power and Renewable Electricity Producers (0.3%):
	62,457	AES Corp. (The)	$	860,033
	41,339	NextEra Energy, Inc.^		4,393,923
	32,151	NRG Energy, Inc.^		866,469

				6,120,425

	Industrial Conglomerates (2.2%):
	60,690	3M Co.^		9,972,581
	57,900	Danaher Corp.		4,962,609
	951,050	General Electric Co.		24,033,033

				38,968,223

	Insurance (4.2%):
	31,419	ACE, Ltd.		3,609,415
	42,740	AFLAC, Inc.		2,610,987
	39,725	Allstate Corp. (The)		2,790,681
	132,582	American International Group, Inc.		7,425,918
	27,006	Aon plc		2,560,979
	6,717	Assurant, Inc.		459,644
	172,700	Berkshire Hathaway, Inc., Class B*^		25,930,905
	22,335	Chubb Corp. (The)^		2,311,002
	13,982	Cincinnati Financial Corp.		724,687
	46,741	Genworth Financial, Inc., Class A*		397,299
	40,868	Hartford Financial Services Group, Inc. (The)		1,703,787
	24,593	Lincoln National Corp.		1,418,278
	28,352	Loews Corp.		1,191,351
	51,281	Marsh & McLennan Cos., Inc.^		2,935,324
	107,593	MetLife, Inc.		5,819,705
	25,770	Principal Financial Group, Inc.		1,338,494
	50,702	Progressive Corp. (The)		1,368,447
	43,423	Prudential Financial, Inc.		3,928,045
	12,269	Torchmark Corp.		664,612
	31,387	Travelers Cos., Inc. (The)		3,322,314
	23,806	UnumProvident Corp.		830,353
	24,445	XL Group plc, Class B		840,175

				74,182,402

	Internet & Catalog Retail (1.2%):
	35,957	Amazon.com, Inc.*		11,159,256
	9,345	Expedia, Inc.^		797,689
	5,706	Netflix, Inc.*^		1,949,227
	4,959	Priceline.com, Inc.*		5,654,301
	10,499	TripAdvisor, Inc.*^		783,855

				20,344,328

	Internet Software & Services (3.2%):
	16,878	Akamai Technologies, Inc.*		1,062,639
	107,073	eBay, Inc.*		6,008,937
	198,019	Facebook, Inc., Class A*		15,449,443
	26,971	Google, Inc., Class C*		14,197,534
	26,995	Google, Inc., Class A*		14,325,167
	10,325	VeriSign, Inc.*^		588,525
	83,442	Yahoo!, Inc.*		4,214,655

				55,846,900


Shares			Fair Value
	Common Stocks, continued
	IT Services (3.2%):
	59,473	Accenture plc, Class A^	$	5,311,534
	6,058	Alliance Data Systems Corp.*^		1,732,891
	45,656	Automatic Data Processing, Inc.		3,806,341
	57,672	Cognizant Technology Solutions Corp., Class A*		3,037,008
	13,308	Computer Sciences Corp.		839,069
	26,887	Fidelity National Information Services, Inc.^		1,672,371
	23,108	Fiserv, Inc.*^		1,639,975
	87,166	International Business Machines Corp.		13,984,913
	92,858	MasterCard, Inc., Class A		8,000,645
	30,839	Paychex, Inc.^		1,423,837
	14,598	Teradata Corp.*^		637,641
	15,765	Total System Services, Inc.		535,379
	46,256	Visa, Inc., Class A		12,128,323
	49,309	Western Union Co.^		883,124

				55,633,051

	Leisure Products (0.1%):
	10,739	Hasbro, Inc.^		590,538
	32,242	Mattel, Inc.		997,728

				1,588,266

	Life Sciences Tools & Services (0.4%):
	31,694	Agilent Technologies, Inc.		1,297,552
	10,608	PerkinElmer, Inc.^		463,888
	37,886	Thermo Fisher Scientific, Inc.		4,746,737
	7,896	Waters Corp.*		890,037

				7,398,214

	Machinery (1.5%):
	57,336	Caterpillar, Inc.		5,247,963
	16,107	Cummins, Inc.		2,322,146
	33,947	Deere & Co.		3,003,291
	15,679	Dover Corp.^		1,124,498
	12,901	Flowserve Corp.^		771,867
	34,064	Illinois Tool Works, Inc.^		3,225,861
	25,225	Ingersoll-Rand plc		1,599,013
	9,217	Joy Global, Inc.^		428,775
	33,557	PACCAR, Inc.^		2,282,212
	10,060	Pall Corp.^		1,018,173
	14,079	Parker Hannifin Corp.^		1,815,487
	17,694	Pentair, Ltd.^		1,175,235
	5,513	Snap-On, Inc.		753,848
	14,838	Stanley Black & Decker, Inc.		1,425,635
	17,102	Xylem, Inc.^		651,073

				26,845,077

	Media (3.7%):
	20,587	Cablevision Systems Corp., Class A^		424,916
	45,160	CBS Corp., Class B		2,499,154
	244,030	Comcast Corp., Class A^		14,156,179
	47,567	DIRECTV, Inc., Class A*		4,124,059
	25,779	Discovery Communications, Inc., Class C*^		869,268
	13,934	Discovery Communications, Inc., Class A*^		480,026
	21,287	Gannett Co., Inc.^		679,694


Shares			Fair Value
	Common Stocks, continued
	Media, continued
	39,760	Interpublic Group of Cos., Inc. (The)	$	825,815
	25,715	McGraw-Hill Cos., Inc. (The)		2,288,121
	47,465	News Corp., Class A*		744,726
	23,506	Omnicom Group, Inc.^		1,821,010
	9,612	Scripps Networks Interactive, Class A^		723,495
	26,566	Time Warner Cable, Inc.		4,039,626
	79,411	Time Warner, Inc.		6,783,288
	175,613	Twenty-First Century Fox, Inc.^		6,744,417
	34,989	Viacom, Inc., Class B		2,632,922
	147,746	Walt Disney Co. (The)		13,916,196

				63,752,912

	Metals & Mining (0.4%):
	111,729	Alcoa, Inc.		1,764,201
	10,327	Allegheny Technologies, Inc.^		359,070
	98,420	Freeport-McMoRan Copper & Gold, Inc.		2,299,091
	47,129	Newmont Mining Corp.		890,738
	30,253	Nucor Corp.^		1,483,910

				6,797,010

	Multiline Retail (0.7%):
	28,739	Dollar General Corp.*		2,031,847
	19,500	Dollar Tree, Inc.*		1,372,410
	9,076	Family Dollar Stores, Inc.		718,910
	19,129	Kohl’s Corp.^		1,167,634
	32,704	Macy’s, Inc.^		2,150,288
	13,314	Nordstrom, Inc.^		1,056,998
	60,327	Target Corp.^		4,579,423

				13,077,510

	Multi-Utilities (1.3%):
	23,020	Ameren Corp.		1,061,913
	40,653	CenterPoint Energy, Inc.		952,500
	25,950	CMS Energy Corp.		901,763
	27,801	Consolidated Edison, Inc.^		1,835,144
	55,302	Dominion Resources, Inc.		4,252,723
	16,765	DTE Energy Co.		1,447,993
	7,603	Integrys Energy Group, Inc.		591,894
	29,964	NiSource, Inc.		1,271,073
	44,997	PG&E Corp.		2,395,640
	47,971	Public Service Enterprise Group, Inc.		1,986,479
	13,432	SCANA Corp.^		811,293
	21,892	Sempra Energy^		2,437,893
	22,052	TECO Energy, Inc.^		451,845
	21,382	Wisconsin Energy Corp.^		1,127,687
	47,949	Xcel Energy, Inc.		1,722,328

				23,248,168

	Oil, Gas & Consumable Fuels (7.0%):
	47,966	Anadarko Petroleum Corp.		3,957,195
	35,658	Apache Corp.^		2,234,687
	38,966	Cabot Oil & Gas Corp.^		1,153,783
	48,978	Chesapeake Energy Corp.^		958,499
	179,034	Chevron Corp.		20,084,034


Shares			Fair Value
	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	8,298	Cimarex Energy Co.	$	879,588
	116,577	ConocoPhillips^		8,050,808
	21,728	CONSOL Energy, Inc.^		734,624
	33,379	Denbury Resources, Inc.		271,371
	36,441	Devon Energy Corp.		2,230,554
	51,902	EOG Resources, Inc.		4,778,617
	14,294	EQT Corp.		1,082,056
	401,031	Exxon Mobil Corp.		37,075,315
	24,070	Hess Corp.		1,776,847
	160,921	Kinder Morgan, Inc.^		6,808,568
	63,925	Marathon Oil Corp.		1,808,438
	26,538	Marathon Petroleum Corp.		2,395,320
	15,712	Murphy Oil Corp.^		793,770
	12,957	Newfield Exploration Co.*		351,394
	34,020	Noble Energy, Inc.		1,613,569
	73,455	Occidental Petroleum Corp.		5,921,208
	19,642	ONEOK, Inc.		977,975
	52,423	Phillips 66		3,758,729
	14,103	Pioneer Natural Resources Co.		2,099,232
	15,602	QEP Resources, Inc.		315,472
	16,058	Range Resources Corp.^		858,300
	33,308	Southwestern Energy Co.*		908,975
	63,554	Spectra Energy Corp.^		2,307,010
	11,959	Tesoro Corp.^		889,152
	49,369	Valero Energy Corp.		2,443,766
	63,715	Williams Cos., Inc. (The)		2,863,352

				122,382,208

	Paper & Forest Products (0.1%):
	40,038	International Paper Co.		2,145,236

	Personal Products (0.1%):
	41,204	Avon Products, Inc.^		386,906
	21,194	Estee Lauder Co., Inc. (The), Class A		1,614,982

				2,001,888

	Pharmaceuticals (6.2%):
	150,893	Abbvie, Inc.		9,874,438
	25,103	Actavis, Inc. plc*^		6,461,763
	28,214	Allergan, Inc.		5,998,014
	157,098	Bristol-Myers Squibb Co.^		9,273,495
	92,797	Eli Lilly & Co.		6,402,065
	15,996	Hospira, Inc.*		979,755
	265,090	Johnson & Johnson Co.		27,720,462
	11,015	Mallinckrodt plc*		1,090,815
	269,994	Merck & Co., Inc.		15,332,959
	35,450	Mylan, Inc.*^		1,998,317
	13,333	Perrigo Co. plc		2,228,744
	596,707	Pfizer, Inc.		18,587,424
	47,483	Zoetis, Inc.		2,043,193

				107,991,444

	Professional Services (0.2%):
	3,425	Dun & Bradstreet Corp.^		414,288
	11,443	Equifax, Inc.		925,395


Shares			Fair Value
	Common Stocks, continued
	Professional Services, continued
	30,681	Nielsen Holdings NV	$	1,372,361
	12,947	Robert Half International, Inc.		755,846

				3,467,890

	Real Estate Investment Trusts (REITs) (2.3%):
	37,549	American Tower Corp.		3,711,719
	13,934	Apartment Investment & Management Co., Class A		517,648
	12,502	AvalonBay Communities, Inc.^		2,042,702
	14,512	Boston Properties, Inc.^		1,867,549
	31,621	Crown Castle International Corp.		2,488,573
	34,321	Equity Residential Property Trust		2,465,621
	6,057	Essex Property Trust, Inc.^		1,251,376
	59,547	General Growth Properties, Inc.		1,675,057
	43,499	HCP, Inc.		1,915,261
	31,035	Health Care REIT, Inc.^		2,348,418
	71,838	Host Hotels & Resorts, Inc.^		1,707,589
	38,964	Kimco Realty Corp.		979,555
	13,335	Macerich Co. (The)^		1,112,272
	16,643	Plum Creek Timber Co., Inc.^		712,154
	47,357	ProLogis, Inc.		2,037,772
	13,742	Public Storage, Inc.^		2,540,209
	29,434	Simon Property Group, Inc.		5,360,226
	27,594	Ventas, Inc.^		1,978,490
	16,537	Vornado Realty Trust		1,946,570
	49,610	Weyerhaeuser Co.^		1,780,503

				40,439,264

	Real Estate Management & Development (0.1%):
	26,490	CBRE Group, Inc.*		907,283

	Road & Rail (1.0%):
	94,164	CSX Corp.		3,411,562
	10,429	Kansas City Southern Industries, Inc.^		1,272,651
	29,308	Norfolk Southern Corp.		3,212,450
	5,007	Ryder System, Inc.		464,900
	84,204	Union Pacific Corp.		10,031,222

				18,392,785

	Semiconductors & Semiconductor Equipment (2.4%):
	28,835	Altera Corp.^		1,065,165
	29,406	Analog Devices, Inc.		1,632,621
	115,397	Applied Materials, Inc.^		2,875,693
	23,953	Avago Technologies, Ltd.		2,409,432
	51,025	Broadcom Corp., Class A		2,210,913
	7,098	First Solar, Inc.*^		316,535
	457,902	Intel Corp.		16,617,265
	15,638	KLA-Tencor Corp.^		1,099,664
	15,057	Lam Research Corp.^		1,194,622
	22,557	Linear Technology Corp.^		1,028,599
	19,108	Microchip Technology, Inc.^		861,962
	101,668	Micron Technology, Inc.*		3,559,397
	49,009	NVIDIA Corp.		982,630
	100,040	Texas Instruments, Inc.^		5,348,639


Shares			Fair Value
	Common Stocks, continued
	Semiconductors & Semiconductor Equipment, continued
	25,050	Xilinx, Inc.	$	1,084,415

				42,287,552

	Software (3.8%):
	44,874	Adobe Systems, Inc.*		3,262,340
	21,486	Autodesk, Inc.*^		1,290,449
	30,193	CA, Inc.^		919,377
	15,248	Citrix Systems, Inc.*		972,822
	29,354	Electronic Arts, Inc.*		1,380,078
	27,043	Intuit, Inc.		2,493,094
	780,641	Microsoft Corp.		36,260,774
	306,404	Oracle Corp.		13,778,988
	17,785	Red Hat, Inc.*		1,229,655
	55,580	Salesforce.com, Inc.*^		3,296,450
	65,225	Symantec Corp.		1,673,347

				66,557,374

	Specialty Retail (2.4%):
	7,076	AutoNation, Inc.*		427,461
	3,035	AutoZone, Inc.*^		1,878,999
	17,581	Bed Bath & Beyond, Inc.*^		1,339,145
	27,657	Best Buy Co., Inc.		1,078,070
	20,402	CarMax, Inc.*^		1,358,365
	10,283	GameStop Corp., Class A^		347,565
	25,277	Gap, Inc. (The)^		1,064,414
	124,806	Home Depot, Inc. (The)		13,100,886
	23,286	L Brands, Inc.		2,015,403
	92,142	Lowe’s Cos., Inc.		6,339,370
	9,608	O’Reilly Automotive, Inc.*^		1,850,693
	9,463	PetSmart, Inc.^		769,295
	19,879	Ross Stores, Inc.		1,873,795
	60,435	Staples, Inc.^		1,095,082
	10,611	Tiffany & Co.^		1,133,891
	65,285	TJX Cos., Inc. (The)		4,477,245
	12,941	Tractor Supply Co.^		1,020,010
	9,591	Urban Outfitters, Inc.*^		336,932

				41,506,621

	Technology Hardware, Storage & Peripherals (4.7%):
	555,429	Apple, Inc.		61,308,252
	192,723	EMC Corp.		5,731,582
	176,751	Hewlett-Packard Co.		7,093,018
	29,524	NetApp, Inc.		1,223,770
	20,899	SanDisk Corp.		2,047,684
	30,995	Seagate Technology plc		2,061,168
	20,643	Western Digital Corp.		2,285,180
	101,361	Xerox Corp.		1,404,863

				83,155,517

	Textiles, Apparel & Luxury Goods (0.8%):
	26,106	Coach, Inc.		980,541
	4,259	Fossil Group, Inc.*		471,642
	19,504	Michael Kors Holdings, Ltd.*		1,464,750
	66,089	Nike, Inc., Class B		6,354,458


Shares			Fair Value
	Common Stocks, continued
	Textiles, Apparel & Luxury Goods, continued
	7,832	PVH Corp.	$	1,003,827
	5,725	Ralph Lauren Corp.^		1,060,041
	15,844	Under Armour, Inc., Class A*^		1,075,808
	32,723	V.F. Corp.^		2,450,953

				14,862,020

	Thrifts & Mortgage Finance (0.1%):
	45,460	Hudson City Bancorp, Inc.		460,055
	29,090	People’s United Financial, Inc.^		441,586

				901,641

	Tobacco (1.4%):
	187,185	Altria Group, Inc.		9,222,605
	34,099	Lorillard, Inc.		2,146,191
	147,182	Philip Morris International, Inc.		11,987,974
	29,187	Reynolds American, Inc.^		1,875,848

				25,232,618

	Trading Companies & Distributors (0.2%):
	25,803	Fastenal Co.^		1,227,191
	9,455	United Rentals, Inc.*^		964,505
	5,742	W.W. Grainger, Inc.^		1,463,578

				3,655,274

	Total Common Stocks (Cost $1,017,458,748)			1,728,000,498


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (12.4%):
$	218,268,942	Allianz Variable Insurance Products Securities Lending Collateral Trust (a)	$	218,268,942

	Total Securities Held as Collateral for Securities on Loan (Cost $218,268,942)			218,268,942

	Unaffiliated Investment Company (2.2%):
	39,665,384	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		39,665,384

	Total Unaffiliated Investment Company (Cost $39,665,384)			39,665,384

	Total Investment Securities (Cost $1,275,393,074)(c) — 112.5%			1,985,934,824
	Net other assets (liabilities) — (12.5)%			(220,711,916	)

	Net Assets — 100.0%		$	1,765,222,908

Percentages indicated are based on net assets as of December 31, 2014.

ADR—American Depositary Receipt

*	Non-income producing security.

^	This security or a partial position of this security was on loan as of December 31, 2014. The total value of securities on loan as of December 31, 2014, was $211,309,348.

+	Affiliated Securities

(a)	Purchased with cash collateral held from securities lending. The value of the collateral could include collateral held for securities that were sold on or before December 31, 2014.

(b)	The rate represents the effective yield at December 31, 2014.

(c)	See Federal Tax Information listed in the Notes to the Financial Statements.

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investments in non-affiliates, at cost	$	1,272,900,818
Investments in affiliates, at cost		2,492,256

Total Investment securities, at cost	$	1,275,393,074

Investments in non-affiliates, at value*	$	1,981,621,220
Investments in affiliates, at value		4,313,604

Total Investment securities, at value		1,985,934,824
Cash		22,557
Interest and dividends receivable		2,340,767
Receivable for capital shares issued		267,518
Receivable for variation margin on futures contracts		19,440
Prepaid expenses		14,848

Total Assets		1,988,599,954

Liabilities:
Payable for capital shares redeemed		3,633,880
Payable for collateral received on loaned securities		218,268,942
Payable for variation margin on futures contracts		504,225
Manager fees payable		255,441
Administration fees payable		40,174
Distribution fees payable		371,162
Custodian fees payable		10,781
Administrative and compliance services fees payable		5,035
Trustee fees payable		101
Other accrued liabilities		287,305

Total Liabilities		223,377,046

Net Assets	$	1,765,222,908

Net Assets Consist of:
Capital	$	1,100,341,376
Accumulated net investment income/(loss)		25,393,899
Accumulated net realized gains/(losses) from investment transactions		(71,309,691	)
Net unrealized appreciation/(depreciation) on investments		710,797,324

Net Assets	$	1,765,222,908

Class 1
Net Assets	$	21,303,526
Shares of beneficial interest (unlimited number of shares authorized, no par value)		1,469,034
Net Asset Value (offering and redemption price per share)	$	14.50

Class 2
Net Assets	$	1,743,919,382
Shares of beneficial interest (unlimited number of shares authorized, no par value)		121,075,779
Net Asset Value (offering and redemption price per share)	$	14.40

*	Includes securities on loan of $211,309,348.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	33,157,318
Dividends from affiliates		91,113
Income from securities lending		138,748
Foreign withholding tax		(3,858	)

Total Investment Income		33,383,321

Expenses:
Manager fees		2,832,281
Administration fees		443,266
Distribution fees — Class 2		4,116,340
Custodian fees		45,930
Administrative and compliance services fees		21,756
Trustee fees		83,597
Professional fees		92,935
Shareholder reports		43,902
Recoupment of prior expenses reimbursed by the manager		53,390
Other expenses		357,459

Total expenses		8,090,856

Net Investment Income/(Loss)		25,292,465

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		7,426,336
Net realized gains/(losses) on futures contracts		9,071,639
Change in net unrealized appreciation/depreciation on investments		167,334,457

Net Realized/Unrealized Gains/(Losses) on Investments		183,832,432

Change in Net Assets Resulting From Operations	$	209,124,897

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL S&P 500 Index Fund (the “Fund”), and 30 are presented in separate reports.

Expenses directly attributable to the Fund are charged directly to the Fund, while expenses attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or some other reasonable method. Each class of shares bears its pro-rata portion of expenses attributable to its series, except that each class separately bears expenses related specifically to that class, such as distribution fees. Expenses which are attributable to more than one Trust are allocated across the Allianz Variable Insurance Products and Allianz Variable Insurance Products Fund of Funds Trusts based upon relative net assets or another reasonable basis. Allianz Investment Management LLC (the “Manager”), serves as the investment manager for the Trust and the Allianz Variable Insurance Products Fund of Funds Trust.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $13,780 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide equity exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $40.9 million as of December 31, 2014. The monthly average notional amount for these contracts was $51.4 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $20,517 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $1,288,270,975. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

During the year ended December 31, 2014, the Fund utilized $14,962,755 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL S&P 500 Index Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Schroder Emerging Markets Equity Fund (Class 2 Shares) returned -5.22% compared to a -1.82% total return for its benchmark, the MSCI Emerging Markets Index¹.

Emerging markets equities struggled during the period, underperforming developed markets for a second consecutive year, although it was a volatile year. Investors early in the period avoided emerging markets stocks amid concerns about the health of global economies such as Europe and China. Geopolitical issues—including Russia’s incursion into Ukraine—also rattled investors. However, improved economic results in the U.S., Europe and China buoyed emerging markets stocks from March to September. Those gains were erased during the final few months of the period, as investors again grew concerned about the health of global economies and the strength of the US dollar. What’s more, steep declines in oil prices added to the downward pressure on some emerging markets stocks late in the period.

Russia’s stock market was among the worst performers during the period. The crisis in Ukraine, and the international sanctions that followed, hurt Russian stocks, as did the plunging oil prices and a tumbling ruble.

The Fund underperformed its benchmark for the period. Much of the underperformance took place in the first quarter, specifically in March. The Fund’s country allocation decisions were based on expectations that global liquidity would tighten as global growth increased and the U.S. Federal Reserve reduced its stimulus efforts. The Fund favoured countries with trade surpluses, such as China and Korea. Those countries tend to outperform during periods of tightening global liquidity, as their economies are less dependent on outside credit. By comparison, countries with current account deficits, such as South Africa and Indonesia, tend to underperform when global liquidity tightens, as they are more dependent on outside credit.*

As expectations for global growth declined early in the period, the liquidity environment eased rather than tightened. As a result, the Fund’s underweight to trade-deficit countries weighed on relative performance. A larger-

than-benchmark position in Russia also hurt the Fund’s relative performance in the first quarter. However, a shift to an underweight position for the remainder of the period helped offset those initial losses.*

Stock selection also dragged on relative performance, primarily in Korea. An overweight position in a growth-oriented chemical company detracted as global growth lagged. A larger-than-benchmark position in an automobile manufacturer also detracted as poor corporate governance decisions led to strong selling pressure during October.*

On a positive note, the Fund’s relative performance benefited from an overweight position and strong stock selection in China. Despite slower growth, the Chinese economy still performed relatively well during the period. The Fund benefited from exposure to two Chinese insurance companies. Exposure to the United Arab Emirates (UAE) and Qatar also benefited the Fund as both countries were added to the MSCI Emerging Markets Index at the end of May. The resulting boost to performance was only partially offset by losses, later in the period, as falling oil prices dragged on Gulf sentiment. Finally, exposure to Indian and Thai financials also contributed positively to relative returns.*

Past performance does not guarantee future results.

¹	The Morgan Stanley Capital International (“MSCI”) Emerging Markets Index (gross of withholding tax) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets. Investors cannot invest directly in an index.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	Inception Date		1 Year			3 Year			5 Year			Since Inception
AZL^® Schroder Emerging Markets Equity Fund (Class 1 Shares)		5/6/07		-4.96	%		4.23	%		1.12	%		0.61	%
AZL^® Schroder Emerging Markets Equity Fund (Class 2 Shares)		5/1/06		-5.22	%		3.95	%		0.87	%		2.02	%
MSCI Emerging Markets Index (gross of withholding taxes)		5/1/06		-1.82	%		4.41	%		2.11	%		4.21	%
MSCI Emerging Markets Index (net of withholding taxes)		5/1/06		-2.19	%		4.04	%		1.78	%		3.88	%


Expense Ratio	Gross
AZL^® Schroder Emerging Markets Equity Fund (Class 1 Shares)		1.40	%
AZL^® Schroder Emerging Markets Equity Fund (Class 2 Shares)		1.65	%

Expense Ratios are based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 1.08%. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense), to 1.40% for Class 1 Shares and 1.65% for Class 2 Shares through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Morgan Stanley Capital International (“MSCI”) Emerging Markets Index, an unmanaged free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets. The Index noted as “gross of withholding taxes” does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Index noted as “net of withholding taxes” reflects the reinvestment of dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Schroder Emerging Markets Equity Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value

	Common Stocks (98.1%):
	Auto Components (0.4%):
	4,826	Hyundai Mobis Co., Ltd.	$	1,027,288

	Automobiles (6.1%):
	1,712,000	Brilliance China Automotive Holdings, Ltd.		2,743,089
	426,200	Chongqing Changan Automobile Co., Ltd., Class B		964,130
	53,107	Hero MotoCorp, Ltd.		2,614,856
	32,834	Hyundai Motor Co.		4,985,483
	32,798	KIA Motors Corp.		1,549,822
	48,363	Maruti Suzuki India, Ltd.		2,542,849

				15,400,229

	Banks (22.6%):
	586,568	Akbank T.A.S.		2,164,136
	703,445	Axis Bank, Ltd.		5,558,004
	151,043	Banco Bradesco SA, ADR		2,019,444
	10,511,832	China Construction Bank		8,556,295
	3,963,597	Chinatrust Financial Holding Co., Ltd.		2,561,013
	227,189	Commercial International Bank Egypt SAE		1,562,997
	125,981	Commercial International Bank Egypt SAE, GDR		830,726
	7,650	Credicorp, Ltd.		1,225,377
	105,445	DGB Financial Group, Inc.		1,085,089
	81,825	Grupo Financiero Inbursa SAB de C.V., Class O		211,240
	50,695	Grupo Financiero Santander Mexico SAB de C.V., Class B, ADR		525,200
	86,420	Hana Financial Holdings		2,496,881
	318,081	HDFC Bank, Ltd.		4,770,735
	4,733,385	Industrial & Commercial Bank of China		3,438,885
	382,055	Itau Unibanco Banco Multiplo SA, ADR		4,970,535
	612,400	Kasikornbank Public Co., Ltd.		4,230,042
	2,939	Komercni Banka AS		605,879
	388,433	National Bank of Greece SA*		689,966
	33,414	OTP Bank Nyrt		483,044
	250,550	Powszechna Kasa Oszczednosci Bank Polski SA		2,523,211
	2,081,000	PT Bank Mandiri Tbk		1,796,939
	42,228	Qatar National Bank		2,453,638
	21,280	Shinhan Financial Group Co., Ltd.		853,950
	326,502	Turkiye Garanti Bankasi AS		1,309,986

				56,923,212

	Beverages (1.7%):
	344,765	Ambev SA, ADR		2,144,438
	26,017	Fomento Economico Mexicano SAB de C.V., ADR*		2,290,277

				4,434,715

	Chemicals (1.8%):
	116,627	Alfa SAB de C.V., Class A*		260,445
	26,253	Grupo de Inversiones Suramericana SA		442,156
	11,219	LG Chem, Ltd.		1,831,162
	31,517	Samsung C&T Corp.		1,747,344

				4,281,107

	Commercial Banks (0.6%):
	553,250	Turkiye Is Bankasi AS, Class C		1,589,089


Shares			Fair Value

	Common Stocks, continued
	Construction Materials (0.5%):
	116,964	Cemex SAB de C.V., ADR*^	$	1,191,863

	Diversified Consumer Services (0.6%):
	238,400	Kroton Educacional SA		1,390,637

	Diversified Financial Services (0.7%):
	432,188	Firstrand, Ltd.		1,874,002

	Diversified Telecommunication Services (0.6%):
	50,610	Hellenic Telecommunications Organization SA (OTE)*		552,233
	4,383,100	PT Telekomunikasi Indonesia Tbk		1,006,361

				1,558,594

	Electric Utilities (0.4%):
	26,680	Korea Electric Power Corp., Ltd.		1,027,646

	Electrical Equipment (0.4%):
	186,000	Zhuzhou CSR Times Electric Co., Ltd.		1,085,468

	Electronic Equipment, Instruments & Components (3.8%):
	344,500	AAC Technologies Holdings, Inc.^		1,830,959
	2,344,480	Hon Hai Precision Industry Co., Ltd.		6,465,473
	44,312	LG Display Co., Ltd.*		1,341,997

				9,638,429

	Food & Staples Retailing (1.1%):
	43,879	Bim Birlesik Magazalar AS		940,615
	8,705	Magnit PJSC, GDR		392,548
	765,000	Sun Art Retail Group, Ltd.^		758,694
	203,483	Wal-Mart de Mexico SAB de C.V., Series V		437,577

				2,529,434

	Food Products (0.0%):
	115	Orion Corp.		105,780

	Health Care Equipment & Supplies (0.6%):
	53,200	Mindray Medical International, Ltd., ADR^		1,404,480

	Hotels, Restaurants & Leisure (1.3%):
	139,468	Alsea SAB de C.V.*^		385,486
	36,726	Yum! Brands, Inc.		2,675,489

				3,060,975

	Household Durables (0.3%):
	9,630	Coway Co., Ltd.		732,803

	Household Products (0.5%):
	2,170	LG Household & Health Care, Ltd.		1,229,841

	Independent Power and Renewable Electricity Producers (0.4%):
	883,000	China Longyuan Power Group Corp.		909,721

	Industrial Conglomerates (1.0%):
	323	Cheil Industries, Inc.*		46,437
	309,570	KOC Holdings AS		1,637,286
	11,755	LG Corp.		651,604

				2,335,327

	Insurance (8.1%):
	829,400	AIA Group, Ltd.		4,567,559
	124,400	BB Seguridade Participacoes SA		1,505,609
	1,743,781	Cathay Financial Holding Co., Ltd.		2,565,825


Shares			Fair Value

	Common Stocks, continued
	Insurance, continued
	1,033,000	China Life Insurance Co., Ltd.	$	4,052,515
	1,020,600	China Pacific Insurance Group Co., Ltd., Class H		5,115,220
	11,286	Powszechny Zaklad Ubezpieczen SA		1,544,641
	12,993	Samsung Life Insurance Co., Ltd.		1,372,486

				20,723,855

	Internet Software & Services (5.8%):
	7,913	Baidu, Inc., ADR*		1,803,927
	4,554	NHN Corp.		2,942,378
	672,500	Tencent Holdings, Ltd.		9,650,314

				14,396,619

	IT Services (2.2%):
	102,300	Cielo SA		1,604,261
	99,043	Tata Consultancy Services, Ltd.		4,011,029

				5,615,290

	Machinery (1.2%):
	66,449	Iochpe-Maxion SA		305,087
	87,000	WEG SA		1,001,882
	416,799	Weichai Power Co., Ltd., Class H		1,749,519

				3,056,488

	Media (1.3%):
	24,771	Naspers, Ltd.		3,191,991

	Metals & Mining (1.6%):
	64,076	Mining and Metallurgical Co. Norilsk Nickel, ADR		885,537
	4,615	POSCO		1,164,533
	165,800	Vale SA, Sponsored ADR^		1,356,244
	44,100	Vale SA, Sponsored ADR		320,166

				3,726,480

	Multiline Retail (1.0%):
	10,576	Hyundai Department Store Co., Ltd.		1,174,759
	188,863	Woolworths Holdings, Ltd.		1,249,587

				2,424,346

	Oil, Gas & Consumable Fuels (7.1%):
	8,810,400	China Petroleum & Chemical Corp. (Sinopec), H Shares		7,133,786
	28,723	Enersis SA, ADR		460,430
	58,285	LUKOIL, ADR		2,235,230
	162,982	OAO Gazprom, GDR		738,308
	15,101	Petroleo Brasileiro SA, Sponsored, ADR		110,237
	213,800	PTT pcl		2,096,700
	196,302	Reliance Industries, Ltd.		2,761,698
	56,318	Tupras-Turkiye Petrol Rafine		1,331,533
	73,942	Ultrapar Participacoes SA		1,431,702

				18,299,624

	Personal Products (1.5%):
	803	Amorepacific Corp.*		1,613,419
	177,500	Hengan International Group Co., Ltd.		1,848,340

				3,461,759


Shares			Fair Value

	Common Stocks, continued
	Pharmaceuticals (1.3%):
	40,370	Aspen Pharmacare Holdings, Ltd.	$	1,405,951
	76,683	Lupin, Ltd.		1,735,422

				3,141,373

	Real Estate Management & Development (2.0%):
	1,606,700	Ayala Land, Inc.		1,203,987
	78,000	BR Malls Participacoes SA		482,290
	1,743,322	Emaar Properties PJSC		3,344,925

				5,031,202

	Semiconductors & Semiconductor Equipment (11.9%):
	2,645,000	Advanced Semiconductor Engineering, Inc.		3,144,630
	10,213	Samsung Electronics Co., Ltd.		12,278,233
	78,141	SK Hynix, Inc.*		3,365,154
	2,574,110	Taiwan Semiconductor Manufacturing Co., Ltd.		11,359,573

				30,147,590

	Specialty Retail (0.6%):
	1,404,000	Belle International Holdings, Ltd.		1,571,935

	Technology Hardware, Storage & Peripherals (1.0%):
	339,000	Catcher Technology Co., Ltd.		2,609,368

	Textiles, Apparel & Luxury Goods (0.3%):
	83,960	Eclat Textile Co., Ltd.		850,289

	Transportation Infrastructure (0.5%):
	210,656	Companhia de Concessoes Rodoviarias		1,221,665

	Wireless Telecommunication Services (5.3%):
	355,600	Advanced Info Service pcl		2,708,719
	38,416	America Movil SAB de C.V., Series L, ADR		852,067
	346,500	China Mobile, Ltd.		4,070,999
	8,372	SK Telecom Co., Ltd.		2,036,192
	580,000	Taiwan Mobile Co., Ltd.		1,915,543
	293,649	Turkcell Iletisim Hizmetleri AS*		1,795,596

				13,379,116

	Total Common Stocks (Cost $207,790,589)			246,579,630

	Preferred Stocks (0.7%):
	Food & Staples Retailing (0.6%):
	38,100	Companhia Brasileira de Destribuicao Grupo Pao de Acucar, Series A, Preferred Shares		1,414,197

	Metals & Mining (1.1%):
	37,100	Vale SA, Preferred Shares, ADR		269,346

	Oil, Gas & Consumable Fuels (0.4%):
	143,704	Petroleo Brasileiro SA, Preferred Shares, ADR		1,089,276

	Total Preferred Stocks (Cost $4,201,474)			2,772,819

	Right (0.0%):
	Banks (0.0%):
	22,024	DGB Financial Group, Inc.*		23,046

	Total Right (Cost $—)			23,046


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (2.8%):
$	7,138,751	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)	$	7,138,751

	Total Securities Held as Collateral for Securities on Loan (Cost $7,138,751)			7,138,751

	Unaffiliated Investment Company (0.8%):
	2,083,797	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		2,083,797

	Total Unaffiliated Investment Company (Cost $2,083,797)			2,083,797

	Total Investment Securities (Cost $221,214,611)(c) — 102.8%			258,598,043
	Net other assets (liabilities) — (2.8)%			(7,128,152	)

	Net Assets — 100.0%		$	251,469,891

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	221,214,611

Investment securities, at value*	$	258,598,043
Interest and dividends receivable		606,178
Foreign currency, at value (cost $335,162)		336,754
Receivable for investments sold		482,080
Reclaims receivable		10,345
Prepaid expenses		2,387

Total Assets		260,035,787

Liabilities:
Payable for investments purchased		745,209
Payable for capital shares redeemed		255,000
Payable for collateral received on loaned securities		7,138,751
Manager fees payable		232,809
Administration fees payable		7,744
Distribution fees payable		48,263
Custodian fees payable		117,672
Administrative and compliance services fees payable		701
Trustee fees payable		14
Other accrued liabilities		19,733

Total Liabilities		8,565,896

Net Assets	$	251,469,891

Net Assets Consist of:
Capital	$	205,059,100
Accumulated net investment income/(loss)		2,349,676
Accumulated net realized gains/(losses) from investment transactions		6,678,385
Net unrealized appreciation/(depreciation) on investments		37,382,730

Net Assets	$	251,469,891

Class 1
Net Assets	$	26,194,175
Shares of beneficial interest (unlimited number of shares authorized, no par value)		3,562,601
Net Asset Value (offering and redemption price per share)	$	7.35

Class 2
Net Assets	$	225,275,716
Shares of beneficial interest (unlimited number of shares authorized, no par value)		30,677,506
Net Asset Value (offering and redemption price per share)	$	7.34

*	Includes securities on loan of $6,782,609.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	7,473,943
Income from securities lending		117,413
Foreign withholding tax		(675,898	)

Total Investment Income		6,915,458

Expenses:
Manager fees		3,472,534
Administration fees		99,650
Distribution fees — Class 2		631,642
Custodian fees		470,752
Administrative and compliance services fees		3,605
Trustee fees		14,529
Professional fees		15,739
Shareholder reports		23,277
Other expenses		7,807

Total expenses before reductions		4,739,535
Less expenses voluntarily waived/reimbursed by the Manager		(423,482	)
Less expenses paid indirectly		(47	)

Net expenses		4,316,006

Net Investment Income/(Loss)		2,599,452

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		8,455,489
Change in net unrealized appreciation/depreciation on investments		(24,537,832	)

Net Realized/Unrealized Gains/(Losses) on Investments		(16,082,343	)

Change in Net Assets Resulting From Operations	$	(13,482,891	)

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Schroder Emerging Markets Equity Fund (the “Fund”), and 30 are presented in separate reports.

Expenses which are attributable to more than one Trust are allocated across the Allianz Variable Insurance Products and Allianz Variable Insurance Products Fund of Funds Trusts based upon relative net assets or another reasonable basis. Allianz Investment Management LLC (the “Manager”), serves as the investment manager for the Trust and the Allianz Variable Insurance Products Fund of Funds Trust.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $11,595 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with Schroder Investment Management North America Inc. (“Schroder”), Schroder provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $3,553 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 Investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $223,227,726. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Schroder Emerging Markets Equity Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 0.49% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $424,960.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Robert DeChellis, Age 47 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present.	43	None
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Advisory Management, Allianz Investment Management LLC from December 2005 to November 2010.	43	None


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® Small Cap Stock Index Fund returned 5.23%. That compared to a 5.76% total return for its benchmark, the S&P SmallCap 600 Index¹.

The Fund attempts to replicate the performance of the S&P Small Cap 600 Index of U.S. small-cap stocks. U.S. equities moved higher in 2014 as domestic economic growth gained momentum and interest rates remained low. The period started out on a negative note, however: Slowing growth in China, softer economic data in the U.S. and expectations that the Federal Reserve would soon end its stimulus efforts all weighed on investors. Equity markets declined sharply in January, but the sell-off was short-lived. Investors soon learned that the recent weakness in the U.S. economic data was weather-related, and therefore temporary. Meanwhile, the Federal Reserve shifted its position, announcing a more cautious approach to raising short-term rates.*

The Fund slightly underperformed its benchmark due to the effect of fees and expenses. These negatives were partially offset by payments to the Fund resulting from class action lawsuits against companies held in the Fund.*

The low-interest rate environment helped the utilities sector post strong returns as that sector offered attractive yields to income-seeking investors. The information technology and heath care sectors also posted strong gains as the result of their ties to cyclical growth. The health care sector benefited from gains in the biotechnology industry, which were driven by new drug developments. Consumer staples stocks also posted strong results as many investors turned to more defensive holdings as volatility increased during the period. Most sectors of the index posted gains for the period, however, the energy sector was an outlier. It posted a sizeable loss for the period due to the effect of falling oil prices.*

Past performance does not guarantee future results.

The Standard & Poor’s SmallCap 600 Index (“S&P 600”) covers approximately 3% of the domestic equities market. Measuring the small-cap segment of the market that is typically renowned for poor trading liquidity and financial instability, the index is designed to be an efficient portfolio of companies that meet specific inclusion criteria to ensure that they are investable and financially viable. Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek to match the performance of the Standard & Poor’s SmallCap 600^® Index (the “S&P 600”). This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing in all of the stocks in the S&P 600 in proportion to their weighting in the Index.

Investment Concerns

Small- to mid-capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			Since Inception (5/1/07)
AZL^® Small Cap Stock Index Fund		5.23	%		19.67	%		16.62	%		7.58	%
S&P SmallCap 600 Index		5.76	%		20.24	%		17.27	%		8.01	%


Expense Ratio¹	Gross
AZL^® Small Cap Stock Index Fund		0.64	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 0.71% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Standard & Poor’s SmallCap 600 Index (“S&P 600”), an unmanaged index which covers approximately 3% of the domestic equities market. Measuring the small-cap segment of the market that is typically renowned for poor trading liquidity and financial instability, the index is designed to be an efficient portfolio of companies that meet specific inclusion criteria to ensure that they are investable and financially viable. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Small Cap Stock Index Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (98.4%):
	Aerospace & Defense (2.6%):
	20,519	AAR Corp.^	$	570,018
	10,878	Aerovironment, Inc.*^		296,426
	4,270	American Science & Engineering, Inc.		221,613
	11,787	Cubic Corp.		620,468
	25,979	Curtiss-Wright Corp.^		1,833,857
	9,536	Engility Holdings, Inc.*		408,141
	31,912	Gencorp, Inc.*^		583,990
	21,979	Moog, Inc., A*^		1,627,105
	2,662	National Presto Industries, Inc.^		154,502
	32,956	Orbital Sciences Corp.*^		886,187
	28,418	TASER International, Inc.*^		752,509
	19,775	Teledyne Technologies, Inc.*		2,031,683

				9,986,499

	Air Freight & Logistics (0.7%):
	13,426	Atlas Air Worldwide Holdings*^		661,902
	16,478	Forward Air Corp.^		829,997
	18,829	Hub Group, Inc., A*		717,008
	49,633	UTI Worldwide, Inc.*^		599,070

				2,807,977

	Airlines (0.4%):
	7,379	Allegiant Travel Co.		1,109,285
	27,680	SkyWest, Inc.^		367,590

				1,476,875

	Auto Components (0.6%):
	16,598	Dorman Products, Inc.*^		801,185
	12,786	Drew Industries, Inc.*		652,981
	11,257	Standard Motor Products, Inc.		429,117
	12,523	Superior Industries International, Inc.		247,830

				2,131,113

	Automobiles (0.1%):
	14,644	Winnebago Industries, Inc.^		318,653

	Banks (7.6%):
	34,961	Bank of the Ozarks, Inc.^		1,325,722
	10,593	Banner Corp.		455,711
	43,006	BBCN Bancorp, Inc.^		618,426
	44,819	Boston Private Financial Holdings, Inc.^		603,712
	17,315	Cardinal Financial Corp.		343,356
	8,241	City Holding Co.^		383,454
	28,894	Columbia Banking System, Inc.^		797,763
	21,940	Community Bank System, Inc.^		836,572
	52,074	CVB Financial Corp.^		834,225
	93,952	F.N.B. Corp.^		1,251,441
	56,460	First Bancorp*		331,420
	49,663	First Commonwealth Financial Corp.		457,893
	33,228	First Financial Bancorp^		617,709
	34,638	First Financial Bankshares, Inc.^		1,034,983
	40,719	First Midwest Bancorp, Inc.^		696,702
	40,599	Glacier Bancorp, Inc.^		1,127,434
	17,240	Hanmi Financial Corp.^		376,004
	31,794	Home Bancshares, Inc.^		1,022,495


Shares			Fair Value
	Common Stocks, continued
	Banks, continued
	13,000	Independent Bank Corp.^	$	556,530
	34,795	MB Financial, Inc.^		1,143,364
	66,911	National Penn Bancshares, Inc.^		704,238
	23,644	NBT Bancorp, Inc.^		621,128
	24,194	Ofg BanCorp^		402,830
	57,881	Old National Bancorp^		861,269
	17,960	Pinnacle Financial Partners, Inc.		710,138
	38,076	PrivateBancorp, Inc.		1,271,738
	16,126	S & T Bancorp, Inc.^		480,716
	8,586	Simmons First National Corp., A		349,021
	45,422	Sterling BanCorp/de^		653,168
	98,071	Susquehanna Bancshares, Inc.^		1,317,095
	24,733	Texas Capital Bancshares, Inc.*^		1,343,745
	6,383	Tompkins Financial Corp.^		352,980
	20,421	UMB Financial Corp.^		1,161,751
	34,482	United Bankshares, Inc.^		1,291,351
	24,412	United Community Banks, Inc.^		462,363
	14,011	Westamerica Bancorp^		686,819
	38,149	Wilshire Bancorp, Inc.		386,449
	25,279	Wintrust Financial Corp.^		1,182,046

				29,053,761

	Beverages (0.4%):
	4,807	Boston Beer Co., Inc. (The), Class A*^		1,391,819

	Biotechnology (0.7%):
	22,703	Acorda Therapeutics, Inc.*^		927,872
	15,821	Emergent Biosolutions, Inc.*		430,806
	9,864	Ligand Pharmaceuticals, Inc., B*^		524,863
	25,395	Momenta Pharmaceuticals, Inc.*		305,756
	16,613	Repligen Corp.*		328,937
	31,210	Spectrum Pharmaceuticals, Inc.*^		216,285

				2,734,519

	Building Products (1.0%):
	22,707	AAON, Inc.^		508,410
	6,781	American Woodmark Corp.*		274,224
	15,675	Apogee Enterprises, Inc.^		664,150
	15,725	Gibraltar Industries, Inc.*		255,689
	22,824	Griffon Corp.		303,559
	25,839	PGT, Inc.*		248,830
	20,316	Quanex Building Products Corp.		381,534
	22,515	Simpson Manufacturing Co., Inc.^		779,018
	10,809	Universal Forest Products, Inc.		575,039

				3,990,453

	Capital Markets (1.8%):
	9,367	Calamos Asset Management, Inc., A		124,768
	19,482	Evercore Partners, Inc., Class A^		1,020,272
	28,117	Financial Engines, Inc.^		1,027,677
	14,317	Greenhill & Co., Inc.^		624,221
	17,733	HFF, Inc., Class A		636,969
	18,840	Investment Technology Group, Inc.*		392,249
	8,797	Piper Jaffray Cos., Inc.*		511,018


Shares			Fair Value
	Common Stocks, continued
	Capital Markets, continued
	35,712	Stifel Financial Corp.*^	$	1,822,027
	3,825	Virtus Investment Partners, Inc.		652,124

				6,811,325

	Chemicals (2.4%):
	15,802	A. Schulman, Inc.^		640,455
	13,666	American Vanguard Corp.^		158,799
	16,635	Balchem Corp.^		1,108,556
	28,786	Calgon Carbon Corp.*^		598,173
	27,134	Flotek Industries, Inc.*^		508,220
	12,189	Futurefuel Corp.		158,701
	27,215	H.B. Fuller Co.^		1,211,883
	5,156	Hawkins, Inc.		223,409
	11,768	Innophos Holdings, Inc.		687,840
	30,473	Intrepid Potash, Inc.*^		422,965
	11,098	Koppers Holdings, Inc.		288,326
	17,759	Kraton Performance Polymers, Inc.*		369,210
	10,522	LSB Industries, Inc.*		330,812
	16,685	OM Group, Inc.		497,213
	7,194	Quaker Chemical Corp.^		662,136
	23,055	Rayonier Advanced Materials, Inc.^		514,127
	10,379	Stepan Co.		415,990
	13,850	Tredegar Corp.		311,487
	12,463	Zep, Inc.		188,814

				9,297,116

	Commercial Banks (0.1%):
	14,842	Central Pacific Financial Corp.		319,103

	Commercial Services & Supplies (2.4%):
	28,041	ABM Industries, Inc.		803,375
	26,277	Brink’s Co. (The)^		641,422
	12,959	Encore Capital Group, Inc.*^		575,380
	10,772	G & K Services, Inc., A^		763,196
	38,241	Healthcare Services Group, Inc.^		1,182,793
	35,805	Interface, Inc.^		589,708
	24,949	Mobile Mini, Inc.		1,010,684
	21,092	Sykes Enterprises, Inc.*^		495,029
	33,877	Tetra Tech, Inc.		904,516
	8,455	UniFirst Corp.		1,026,860
	21,072	United Stationers, Inc.^		888,396
	10,851	Viad Corp.^		289,288

				9,170,647

	Communications Equipment (1.2%):
	29,401	ADTRAN, Inc.^		640,942
	5,824	Bel Fuse, Inc., B		159,228
	8,394	Black Box Corp.^		200,617
	19,600	Calamp Corp.*^		358,680
	8,790	Comtech Telecommunications Corp.		277,061
	13,636	Digi International, Inc.*		126,678
	47,700	Harmonic, Inc.*^		334,377
	31,865	Ixia*		358,481
	18,719	NETGEAR, Inc.*^		666,022
	23,318	ViaSat, Inc.*^		1,469,734

				4,591,820


Shares			Fair Value
	Common Stocks, continued
	Construction & Engineering (0.8%):
	20,225	Aegion Corp.*^	$	376,387
	20,180	Comfort Systems USA, Inc.		345,482
	18,477	Dycom Industries, Inc.*		648,358
	35,028	Emcor Group, Inc.		1,558,395
	14,913	Orion Marine Group, Inc.*		164,789

				3,093,411

	Construction Materials (0.2%):
	39,764	Headwaters, Inc.*		596,062

	Consumer Finance (1.0%):
	15,637	Cash America International, Inc.^		353,709
	14,311	Enova International, Inc.*^		318,563
	26,407	EZCORP, Inc., A*^		310,282
	15,318	First Cash Financial Services, Inc.*^		852,753
	27,074	PRA Group, Inc.*^		1,568,397
	4,868	World Acceptance Corp.*^		386,763

				3,790,467

	Containers & Packaging (0.1%):
	13,418	Myers Industries, Inc.		236,157

	Distributors (0.4%):
	23,492	Pool Corp.^		1,490,332
	10,781	VOXX International Corp.*^		94,442

				1,584,774

	Diversified Consumer Services (1.2%):
	9,322	American Public Education, Inc.*		343,702
	5,903	Capella Education Co.^		454,295
	32,658	Career Education Corp.*^		227,300
	33,984	Hillenbrand, Inc.^		1,172,447
	16,038	Matthews International Corp., A		780,569
	10,236	Outerwall, Inc.*^		769,952
	24,235	Regis Corp.*		406,179
	5,902	Strayer Education, Inc.*^		438,401
	11,727	Universal Technical Institute, Inc.		115,394

				4,708,239

	Diversified Financial Services (1.0%):
	22,996	FXCM, Inc.^		381,044
	19,632	Green Dot Corp., A*		402,260
	31,641	Interactive Brokers Group, Inc., Class A^		922,652
	20,221	MarketAxess Holdings, Inc.^		1,450,047
	19,741	ViewPoint Financial Group^		470,823

				3,626,826

	Diversified Telecommunication Services (0.6%):
	48,465	8x8, Inc.*^		443,939
	5,431	Atlantic Tele-Network, Inc.^		367,081
	113,178	Cincinnati Bell, Inc.*		361,038
	25,356	Consolidated Communications Holdings, Inc.^		705,658
	16,481	General Communication, Inc., A*		226,614
	10,257	Lumos Networks Corp.		172,523

				2,276,853


Shares			Fair Value
	Common Stocks, continued
	Electric Utilities (0.9%):
	20,756	ALLETE, Inc.	$	1,144,486
	21,823	El Paso Electric Co.		874,229
	30,575	UIL Holdings Corp.^		1,331,236

				3,349,951

	Electrical Equipment (1.6%):
	13,876	AZZ, Inc.^		651,062
	25,848	Brady Corp., A^		706,684
	10,092	Encore Wire Corp.		376,734
	24,538	EnerSys^		1,514,486
	21,352	Franklin Electric Co., Inc.^		801,341
	26,337	General Cable Corp.^		392,421
	28,073	II-VI, Inc.*		383,196
	20,637	Methode Electronics, Inc.		753,457
	5,013	Powell Industries, Inc.		245,988
	9,096	Vicor Corp.*^		110,062

				5,935,431

	Electronic Equipment, Instruments & Components (3.8%):
	8,037	Agilysys, Inc.*^		101,186
	14,748	Anixter International, Inc.*		1,304,607
	7,815	Badger Meter, Inc.		463,820
	28,750	Benchmark Electronics, Inc.*^		731,400
	22,580	Checkpoint Systems, Inc.*		310,023
	13,596	Coherent, Inc.*		825,549
	18,156	CTS Corp.		323,721
	21,288	Daktronics, Inc.^		266,313
	9,349	DTS, Inc.*		287,482
	14,368	Electro Scientific Industries, Inc.		111,496
	16,132	Fabrinet*		286,182
	9,332	FARO Technologies, Inc.*^		584,930
	22,148	Insight Enterprises, Inc.*		573,412
	12,180	Littlelfuse, Inc.^		1,177,441
	17,479	Mercury Computer Systems, Inc.*		243,308
	8,153	MTS Systems Corp.^		611,720
	21,615	Newport Corp.*		413,063
	10,103	OSI Systems, Inc.*		714,989
	11,334	Park Electrochemical Corp.		282,557
	18,190	Plexus Corp.*		749,610
	15,159	Rofin-Sinar Technologies, Inc.*		436,124
	9,914	Rogers Corp.*		807,396
	44,579	Sanmina Corp.*		1,048,944
	15,440	ScanSource, Inc.*^		620,070
	15,113	SYNNEX Corp.^		1,181,232
	28,899	TTM Technologies, Inc.*^		217,609

				14,674,184

	Energy Equipment & Services (1.6%):
	18,885	Basic Energy Services, Inc.*^		132,384
	19,022	Bristow Group, Inc.^		1,251,457
	10,560	Era Group, Inc.*		223,344
	36,936	Exterran Holdings, Inc.		1,203,375
	7,109	Geospace Technologies Corp.*^		188,389


Shares			Fair Value
	Common Stocks, continued
	Energy Equipment & Services, continued
	7,278	Gulf Island Fabrication, Inc.	$	141,120
	14,267	Gulfmark Offshore, Inc., A^		348,400
	17,490	Hornbeck Offshore Services, Inc.*^		436,725
	69,205	ION Geophysical Corp.*^		190,314
	14,415	Matrix Service Co.*		321,743
	45,574	Newpark Resources, Inc.*^		434,776
	45,640	Paragon Offshore plc^		126,423
	9,546	SEACOR Holdings, Inc.*^		704,590
	19,516	Tesco Corp.		250,195
	43,381	TETRA Technologies, Inc.*		289,785

				6,243,020

	Environmental & Facilities Services (0.1%):
	11,701	US Ecology, Inc.^		469,444

	Food & Staples Retailing (0.8%):
	14,548	Andersons, Inc. (The)^		773,081
	20,898	Casey’s General Stores, Inc.^		1,887,507
	20,298	SpartanNash Co.		530,590

				3,191,178

	Food Products (1.7%):
	29,024	B&G Foods, Inc.^		867,818
	8,339	Calavo Growers, Inc.		394,435
	16,226	Cal-Maine Foods, Inc.^		633,301
	89,169	Darling International, Inc.*^		1,619,308
	14,268	Diamond Foods, Inc.*		402,786
	8,091	J & J Snack Foods Corp.		880,057
	11,104	Sanderson Farms, Inc.^		933,013
	3,890	Seneca Foods Corp., A*^		105,147
	28,112	Snyders-Lance, Inc.^		858,822

				6,694,687

	Gas Utilities (1.9%):
	23,391	Laclede Group, Inc. (The)^		1,244,401
	22,867	New Jersey Resources Corp.		1,399,460
	14,702	Northwest Natural Gas Co.^		733,630
	42,355	Piedmont Natural Gas Co., Inc.		1,669,210
	18,207	South Jersey Industries, Inc.		1,072,939
	25,148	Southwest Gas Corp.^		1,554,398

				7,674,038

	Health Care Equipment & Supplies (4.0%):
	11,453	Abaxis, Inc.^		650,874
	19,923	ABIOMED, Inc.*^		758,269
	6,696	Analogic Corp.^		566,549
	13,831	AngioDynamics, Inc.*^		262,927
	7,844	Anika Therapeutics, Inc.*		319,565
	19,105	Cantel Medical Corp.		826,482
	14,902	CONMED Corp.		669,994
	13,551	CryoLife, Inc.^		153,533
	14,240	Cyberonics, Inc.*^		792,883
	11,719	Cynosure, Inc., Class A*		321,335
	13,532	Greatbatch, Inc.*		667,128
	27,744	Haemonetics Corp.*^		1,038,180


Shares			Fair Value
	Common Stocks, continued
	Health Care Equipment & Supplies, continued
	7,321	ICU Medical, Inc.*	$	599,590
	13,667	Integra LifeSciences Holdings*^		741,161
	15,839	Invacare Corp.		265,462
	25,814	Masimo Corp.*^		679,941
	22,501	Meridian Bioscience, Inc.^		370,366
	23,556	Merit Medical Systems, Inc.*		408,225
	17,621	Natus Medical, Inc.*		635,061
	19,985	Neogen Corp.*^		991,056
	25,458	NuVasive, Inc.*		1,200,599
	6,977	Surmodics, Inc.*^		154,192
	38,447	West Pharmaceutical Services, Inc.^		2,046,919

				15,120,291

	Health Care Providers & Services (3.3%):
	19,329	Air Methods Corp.*^		851,056
	4,308	Almost Family, Inc.*		124,717
	18,079	Amedisys, Inc.*^		530,619
	25,307	AMN Healthcare Services, Inc.*		496,017
	26,063	AmSurg Corp.*^		1,426,428
	13,358	Bio-Reference Laboratories, Inc.*^		429,193
	9,204	Chemed Corp.^		972,587
	4,846	CorVel Corp.*		180,368
	16,017	Cross Country Healthcare, Inc.*		199,892
	10,957	Ensign Group, Inc. (The)		486,381
	18,384	ExamWorks Group, Inc.*^		764,591
	16,980	Gentiva Health Services, Inc.*		323,469
	19,101	Hanger Orthopedic Group, Inc.*^		418,312
	19,138	Healthways, Inc.*		380,463
	9,305	IPC The Hospitalist Co.*		427,006
	37,663	Kindred Healthcare, Inc.^		684,713
	5,164	Landauer, Inc.^		176,299
	6,630	LHC Group, Inc.*		206,723
	14,960	Magellan Health Services, Inc.*		898,049
	17,026	Molina Healthcare, Inc.*^		911,402
	6,987	MWI Veterinary Supply, Inc.*^		1,187,161
	16,272	PharMerica Corp.*		336,993
	6,481	Providence Service Corp.*		236,168

				12,648,607

	Health Care Technology (1.0%):
	5,636	Computer Programs & Systems, Inc.^		342,387
	11,494	HealthStream, Inc.*		338,843
	32,649	MedAssets, Inc.*		645,144
	29,354	Medidata Solutions, Inc.*^		1,401,654
	19,270	Omnicell, Inc.*		638,222
	23,785	Quality Systems, Inc.		370,808

				3,737,058

	Hotels, Restaurants & Leisure (4.0%):
	928	Biglari Holdings, Inc.*		370,745
	11,712	BJ’s Restaurants, Inc.*^		588,060
	12,760	Bob Evans Farms, Inc.^		653,057
	42,223	Boyd Gaming Corp.*^		539,610
	10,245	Buffalo Wild Wings, Inc.*^		1,847,994


Shares			Fair Value
	Common Stocks, continued
	Hotels, Restaurants & Leisure, continued
	12,938	Cracker Barrel Old Country Store, Inc.^	$	1,821,153
	8,924	DineEquity, Inc.^		924,883
	21,331	Interval Leisure Group, Inc.		445,605
	20,901	Jack in the Box, Inc.^		1,671,244
	10,033	Marcus Corp.		185,711
	15,352	Marriott Vacations Worldwide Corp.		1,144,338
	5,482	Monarch Casino & Resort, Inc.*		90,946
	16,080	Papa John’s International, Inc.		897,264
	32,510	Pinnacle Entertainment, Inc.*^		723,348
	7,588	Red Robin Gourmet Burgers*^		584,086
	33,597	Ruby Tuesday, Inc.*^		229,803
	19,125	Ruth’s Hospitality Group, Inc.		286,875
	26,573	Scientific Games Corp., A*^		338,274
	27,258	Sonic Corp.^		742,235
	33,832	Texas Roadhouse, Inc.^		1,142,168

				15,227,399

	Household Durables (1.5%):
	14,090	Ethan Allen Interiors, Inc.^		436,367
	14,462	Helen of Troy, Ltd.*		940,898
	16,023	iRobot Corp.*^		556,319
	28,018	La-Z-Boy, Inc.^		752,003
	13,253	M/I Homes, Inc.*		304,289
	20,102	Meritage Corp.*^		723,471
	24,952	Ryland Group, Inc. (The)^		962,149
	81,984	Standard Pacific Corp.*^		597,663
	8,554	Universal Electronics, Inc.*^		556,267

				5,829,426

	Household Products (0.2%):
	23,148	Central Garden & Pet Co., A*		221,063
	7,445	WD-40 Co.^		633,421

				854,484

	Industrial Conglomerates (0.1%):
	6,904	Standex International Corp.		533,403

	Insurance (2.6%):
	40,907	American Equity Investment Life Holding Co.^		1,194,075
	10,196	Amerisafe, Inc.		431,903
	9,625	eHealth, Inc.*		239,855
	17,044	Employers Holdings, Inc.		400,704
	4,945	Hci Group, Inc.^		213,822
	22,688	Horace Mann Educators Corp.		752,788
	6,224	Infinity Property & Casualty Corp.		480,866
	25,450	Meadowbrook Insurance Group, Inc.^		215,307
	19,946	Montpelier Re Holdings, Ltd.^		714,466
	5,866	Navigators Group, Inc.*		430,212
	30,936	ProAssurance Corp.		1,396,761
	20,010	RLI Corp.^		988,494
	6,822	Safety Insurance Group, Inc.^		436,676
	30,587	Selective Insurance Group, Inc.		831,049
	12,002	Stewart Information Services Corp.		444,554
	11,356	United Fire Group, Inc.^		337,614
	15,776	Universal Insurance Holdings, Inc.^		322,619

				9,831,765


Shares			Fair Value
	Common Stocks, continued
	Internet & Catalog Retail (0.3%):
	6,415	Blue Nile, Inc.*^	$	231,004
	10,253	FTD Cos., Inc.*		357,010
	15,587	Nutri/System, Inc.^		304,726
	10,998	PetMed Express, Inc.^		158,041

				1,050,781

	Internet Software & Services (1.9%):
	22,267	Blucora, Inc.*		308,398
	18,540	comScore, Inc.*^		860,812
	23,980	DealerTrack Holdings, Inc.*^		1,062,554
	20,074	Dice Holdings, Inc.*		200,941
	17,306	Digital River, Inc.*		427,977
	24,572	j2 Global, Inc.^		1,523,465
	13,410	Liquidity Services, Inc.*^		109,560
	26,944	LivePerson, Inc.*		379,910
	13,197	LogMeIn, Inc.*^		651,140
	48,139	Monster Worldwide, Inc.*^		222,402
	32,835	NIC, Inc.		590,702
	18,640	Perficient, Inc.*		347,263
	19,026	QuinStreet, Inc.*^		115,488
	7,958	Stamps.com, Inc.*		381,904
	13,106	XO Group, Inc.*		238,660

				7,421,176

	IT Services (2.2%):
	12,878	CACI International, Inc., A*		1,109,826
	24,119	Cardtronics, Inc.*^		930,511
	38,153	CIBER, Inc.*		135,443
	18,586	CSG Systems International, Inc.		465,951
	16,940	Exlservice Holdings, Inc.*		486,347
	5,931	Forrester Research, Inc.		233,444
	19,601	Heartland Payment Systems, Inc.^		1,057,474
	19,226	iGATE Corp.*^		759,042
	12,708	ManTech International Corp., A^		384,163
	35,627	Maximus, Inc.		1,953,786
	9,480	TeleTech Holdings, Inc.*^		224,486
	14,533	Virtusa Corp.*^		605,590

				8,346,063

	Leisure Products (0.2%):
	6,979	Arctic Cat, Inc.		247,755
	42,077	Callaway Golf Co.^		323,993
	10,509	Sturm, Ruger & Co., Inc.^		363,926

				935,674

	Life Sciences Tools & Services (0.8%):
	40,005	Affymetrix, Inc.*^		394,849
	12,872	Albany Molecular Research, Inc.*^		209,556
	16,791	Cambrex Corp.*		363,021
	20,602	Luminex Corp.*^		386,494
	29,765	PAREXEL International Corp.*^		1,653,744

				3,007,664


Shares			Fair Value
	Common Stocks, continued
	Machinery (3.3%):
	35,133	Actuant Corp., A	$	957,023
	15,557	Albany International Corp., A^		591,010
	10,171	Astec Industries, Inc.		399,822
	26,529	Barnes Group, Inc.^		981,838
	24,560	Briggs & Stratton Corp.^		501,515
	9,554	CIRCOR International, Inc.		575,915
	12,973	EnPro Industries, Inc.*^		814,185
	14,232	ESCO Technologies, Inc.		525,161
	33,954	Federal Signal Corp.		524,250
	15,767	John Bean Technologies Corp.^		518,104
	6,605	Lindsay Corp.^		566,313
	9,326	Lydall, Inc.*^		306,079
	30,787	Mueller Industries, Inc.^		1,051,068
	9,944	Tennant Co.^		717,658
	29,028	Titan International, Inc.^		308,568
	30,138	Toro Co.		1,923,107
	15,383	Watts Water Technologies, Inc., A^		975,898

				12,237,514

	Marine (0.2%):
	23,329	Matson, Inc.		805,317

	Media (0.3%):
	16,302	E.W. Scripps Co. (The), A*		364,350
	23,263	Harte-Hanks, Inc.		180,056
	14,532	Scholastic Corp.^		529,254
	12,179	Sizmek, Inc.*		76,241

				1,149,901

	Metals & Mining (1.6%):
	9,348	A.M. Castle & Co.*^		74,597
	95,890	AK Steel Holding Corp.*^		569,587
	27,973	Century Aluminum Co.*		682,541
	34,715	Globe Specialty Metals, Inc.		598,139
	6,724	Haynes International, Inc.		326,114
	9,630	Kaiser Aluminum Corp.^		687,871
	10,915	Materion Corp.		384,535
	4,883	Olympic Steel, Inc.^		86,820
	16,626	RTI International Metals, Inc.*		419,973
	65,092	Stillwater Mining Co.*^		959,456
	35,838	SunCoke Energy, Inc.^		693,107
	29,225	US Silica Holdings, Inc.^		750,790

				6,233,530

	Multiline Retail (0.2%):
	18,776	Fred’s, Inc.		326,890
	23,743	Tuesday Morning Corp.*^		515,223

				842,113

	Multi-Utilities (0.7%):
	30,981	Avista Corp.^		1,095,178
	24,822	NorthWestern Corp.^		1,404,429

				2,499,607


Shares			Fair Value
	Common Stocks, continued
	Oil, Gas & Consumable Fuels (1.7%):
	19,740	Approach Resources, Inc.*^	$	126,139
	115,012	Arch Coal, Inc.^		204,721
	26,885	Bill Barrett Corp.*^		306,220
	17,376	Bonanza Creek Energy, Inc.*		417,024
	24,897	C&J Energy Services, Inc.*		328,889
	22,977	Carrizo Oil & Gas, Inc.*^		955,843
	32,982	Cloud Peak Energy, Inc.*		302,775
	24,109	Comstock Resources, Inc.^		164,182
	8,605	Contango Oil & Gas Co.*		251,610
	18,495	Green Plains Renewable Energy, Inc.^		458,306
	31,037	Northern Oil & Gas, Inc.*^		175,359
	19,407	PDC Energy, Inc.*^		800,927
	38,938	Penn Virginia Corp.*^		260,106
	31,793	PetroQuest Energy, Inc.*		118,906
	34,779	Pioneer Energy Services Corp.*		192,676
	26,338	Rex Energy Corp.*^		134,324
	30,402	Stone Energy Corp.*^		513,186
	23,962	Swift Energy Co.*^		97,046
	37,365	Synergy Resources Corp.*		468,557

				6,276,796

	Paper & Forest Products (1.4%):
	21,314	Boise Cascade Co.*		791,815
	10,570	Clearwater Paper Corp.*		724,574
	5,992	Deltic Timber Corp.		409,853
	45,731	KapStone Paper & Packaging Corp.^		1,340,376
	8,990	Neenah Paper, Inc.		541,827
	23,211	P.H. Glatfelter Co.^		593,505
	16,477	Schweitzer-Mauduit International, Inc.		696,977
	27,038	Wausau Paper Corp.^		307,422

				5,406,349

	Personal Products (0.4%):
	9,219	Inter Parfums, Inc.		253,062
	6,082	Medifast, Inc.*		204,051
	28,236	Prestige Brands Holdings, Inc.*^		980,354

				1,437,467

	Pharmaceuticals (1.3%):
	40,255	Akorn, Inc.*^		1,457,230
	31,812	DepoMed, Inc.*		512,491
	35,857	Impax Laboratories, Inc.*^		1,135,950
	14,343	Lannett Co., Inc.*^		615,028
	35,404	Medicines Co. (The)*^		979,629
	12,260	Sagent Pharmaceuticals, Inc.*^		307,849

				5,008,177

	Professional Services (1.5%):
	7,894	CDI Corp.		139,803
	6,965	Exponent, Inc.		574,613
	8,936	Heidrick & Struggles International, Inc.		205,975
	12,209	Insperity, Inc.		413,763
	16,200	Kelly Services, Inc., A		275,724
	27,206	Korn/Ferry International*		782,445


Shares			Fair Value
	Common Stocks, continued
	Professional Services, continued
	26,261	Navigant Consulting, Inc.*	$	403,632
	25,495	On Assignment, Inc.*^		846,179
	20,583	Resources Connection, Inc.^		338,590
	23,025	Trueblue, Inc.*		512,306
	17,792	Wageworks, Inc.*^		1,148,828

				5,641,858

	Real Estate Investment Trusts (REITs) (8.1%):
	36,580	Acadia Realty Trust^		1,171,657
	9,352	Agree Realty Corp.		290,754
	18,272	American Assets Trust, Inc.^		727,408
	31,178	Associated Estates Realty Corp.		723,641
	13,296	AVIV REIT, Inc.^		458,446
	51,822	Capstead Mortgage Corp.^		636,374
	15,229	CareTrust REIT, Inc.		187,772
	37,283	Cedar Shopping Centers, Inc.		273,657
	29,697	Chesapeake Lodging Trust^		1,105,025
	11,763	Coresite Realty Corp.^		459,345
	111,197	Cousins Properties, Inc.^		1,269,870
	105,806	DiamondRock Hospitality, Co.^		1,573,335
	17,278	EastGroup Properties, Inc.^		1,094,043
	20,170	Education Realty Trust, Inc.^		738,020
	30,919	EPR Properties^		1,781,863
	48,239	Franklin Street Properties Corp.^		591,893
	40,116	Geo Group, Inc. (The)^		1,619,082
	14,119	Getty Realty Corp.		257,107
	38,063	Government Properties Income Trust^		875,830
	53,119	Healthcare Realty Trust, Inc.		1,451,211
	47,633	Inland Real Estate Corp.^		521,581
	45,165	Kite Realty Group Trust^		1,298,042
	113,093	Lexington Realty Trust^		1,241,761
	18,846	LTC Properties, Inc.		813,582
	93,302	Medical Properties Trust, Inc.^		1,285,702
	45,569	Parkway Properties, Inc.		838,014
	37,289	Pennsylvania Real Estate Investment Trust^		874,800
	29,464	Post Properties, Inc.^		1,731,599
	10,507	PS Business Parks, Inc.		835,727
	50,321	Retail Opportunity Investments Corp.^		844,890
	29,512	Sabra Health Care REIT, Inc.		896,279
	6,127	Saul Centers, Inc.		350,403
	18,264	Sovran Self Storage, Inc.		1,592,986
	6,520	Universal Health Realty Income Trust		313,742
	13,907	Urstadt Biddle Properties, Inc., A^		304,285

				31,029,726

	Real Estate Management & Development (0.1%):
	18,909	Forestar Group, Inc.*		291,199

	Road & Rail (1.0%):
	13,139	ArcBest Corp.^		609,255
	11,937	Celadon Group, Inc.		270,851
	29,910	Heartland Express, Inc.^		807,869
	32,936	Knight Transportation, Inc.^		1,108,626


Shares			Fair Value
	Common Stocks, continued
	Road & Rail, continued
	14,985	Roadrunner Transportation System, Inc.*	$	349,900
	13,403	Saia, Inc.*^		741,990

				3,888,491

	Semiconductors & Semiconductor Equipment (3.1%):
	20,430	Advanced Energy Industries, Inc.*		484,191
	36,158	Brooks Automation, Inc.		461,015
	12,864	Cabot Microelectronics Corp.*		608,724
	10,941	CEVA, Inc.*		198,470
	34,188	Cirrus Logic, Inc.*^		805,811
	13,825	Cohu, Inc.		164,518
	19,816	Diodes, Inc.*^		546,327
	11,718	DSP Group, Inc.*		127,375
	49,152	Entropic Communications, Inc.*		124,355
	25,400	Exar Corp.*		259,080
	32,760	Kopin Corp.*^		118,591
	41,685	Kulicke & Soffa Industries, Inc.*		602,765
	24,182	Micrel, Inc.		350,881
	51,417	Microsemi Corp.*		1,459,213
	28,684	MKS Instruments, Inc.^		1,049,834
	19,477	Monolithic Power Systems, Inc.		968,786
	13,139	Nanometrics, Inc.*		220,998
	10,701	Pericom Semiconductor Corp.*		144,892
	15,977	Power Integrations, Inc.^		826,650
	17,905	Rudolph Technologies, Inc.*		183,168
	25,418	Tessera Technologies, Inc.^		908,948
	15,261	Ultratech, Inc.*		283,244
	21,754	Veeco Instruments, Inc.*^		758,780

				11,656,616

	Software (2.6%):
	25,050	Blackbaud, Inc.		1,083,663
	20,696	Bottomline Technologies, Inc.*^		523,195
	15,900	Ebix, Inc.^		270,141
	16,976	EPIQ Systems, Inc.^		289,950
	9,139	Interactive Intelligence Group*^		437,758
	40,373	Manhattan Associates, Inc.*^		1,643,988
	4,890	MicroStrategy, Inc., A*		794,136
	21,193	Monotype Imaging Holdings, Inc.^		610,994
	20,291	NetScout Systems, Inc.*^		741,433
	27,160	Progress Software Corp.*		733,863
	19,481	Synchronoss Technologies, Inc.*^		815,475
	45,519	Take-Two Interactive Software, Inc.*^		1,275,898
	19,710	Tangoe, Inc.*		256,821
	15,884	VASCO Data Security International, Inc.*^		448,088

				9,925,403

	Specialty Retail (4.1%):
	43,089	Aeropostale, Inc.*^		99,966
	23,186	Barnes & Noble, Inc.*^		538,379
	9,787	Big 5 Sporting Goods Corp.		143,184
	23,721	Brown Shoe Co., Inc.^		762,630
	15,176	Buckle, Inc. (The)^		797,044
	13,896	Cato Corp.^		586,133


Shares			Fair Value
	Common Stocks, continued
	Specialty Retail, continued
	11,473	Children’s Place Retail Stores, Inc. (The)^	$	653,961
	20,010	Christopher & Banks Corp.*^		114,257
	25,848	Finish Line, Inc. (The), A		628,365
	22,908	Francesca’s Holdings Corp.*		382,564
	13,029	Genesco, Inc.*^		998,283
	11,576	Group 1 Automotive, Inc.^		1,037,442
	11,146	Haverty Furniture Co., Inc.		245,323
	13,531	Hibbett Sports, Inc.*^		655,306
	8,038	Kirkland’s, Inc.*		190,018
	12,360	Lithia Motors, Inc., A^		1,071,489
	14,659	Lumber Liquidators Holdings, Inc.*^		972,038
	13,463	MarineMax, Inc.*		269,933
	24,685	Men’s Wearhouse, Inc. (The)^		1,089,844
	17,108	Monro Muffler Brake, Inc.^		988,842
	29,155	Pep Boys – Manny, Moe & Jack*^		286,302
	28,838	Select Comfort Corp.*^		779,491
	18,009	Sonic Automotive, Inc., A^		486,963
	17,212	Stage Store, Inc.		356,288
	15,289	Stein Mart, Inc.		223,525
	16,708	Vitamin Shoppe, Inc.*^		811,675
	11,696	Zumiez, Inc.*^		451,816

				15,621,061

	Technology Hardware, Storage & Peripherals (1.0%):
	25,440	Electronics for Imaging, Inc.*^		1,089,595
	47,724	QLogic Corp.*^		635,684
	18,918	Super Micro Computer, Inc.*		659,860
	19,966	Synaptics, Inc.*^		1,374,459

				3,759,598

	Textiles, Apparel & Luxury Goods (2.0%):
	44,655	Crocs, Inc.*^		557,741
	10,338	G-III Apparel Group, Ltd.*^		1,044,241
	25,975	Iconix Brand Group, Inc.*^		877,695
	9,781	Movado Group, Inc.		277,487
	7,842	Oxford Industries, Inc.^		432,957
	6,550	Perry Ellis International, Inc.*^		169,842
	67,578	Quiksilver Resources, Inc.*^		149,347
	22,187	Skechers U.S.A., Inc., Class A*^		1,225,832
	30,582	Steven Madden, Ltd.*		973,425
	7,814	Unifi, Inc.*		232,310
	54,950	Wolverine World Wide, Inc.^		1,619,377

				7,560,254

	Thrifts & Mortgage Finance (0.8%):
	23,486	Bank Mutual Corp.^		161,114
	7,059	Bofi Holding, Inc.*^		549,260
	37,892	Brookline Bancorp, Inc.		380,057
	16,343	Dime Community Bancshares		266,064
	51,371	Northwest Bancshares, Inc. ^		643,678
	20,639	Oritani Financial Corp.		317,841
	29,142	Provident Financial Services, Inc.		526,305
	51,242	TrustCo Bank Corp.^		372,017

				3,216,336


Shares			Fair Value
	Common Stocks, continued
	Tobacco (0.2%):
	45,503	Alliance One International, Inc.*	$	71,895
	12,537	Universal Corp.^		551,377

				623,272

	Trading Companies & Distributors (0.7%):
	14,763	Aceto Corp.		320,357
	22,336	Applied Industrial Technologies, Inc.^		1,018,298
	6,962	Dxp Enterprises, Inc.*^		351,790
	14,657	Kaman Corp., A^		587,599
	4,422	Veritiv Corp.*^		229,369

				2,507,413

	Water Utilities (0.2%):
	20,782	American States Water Co.^		782,650

	Wireless Telecommunication Services (0.1%):
	9,071	NTELOS Holdings Corp.^		38,007
	11,824	Spok Holdings, Inc.		205,265

				243,272

	Total Common Stocks (Cost $249,446,397)			375,414,113

	Right (0.0%):
	Electronic Equipment, Instruments & Components (0.0%):
	10,537	Gerber Scientific, Inc.*		—

	Total Right (Cost $—)			—


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Securities Held as Collateral for Securities on Loan (29.2%):
	$111,487,356	Allianz Variable Insurance Products Securities Lending Collateral Trust(a)	$	111,487,356

	Total Securities Held as Collateral for Securities on Loan (Cost $111,487,356)			111,487,356

	Unaffiliated Investment Company (1.0%):
	3,801,990	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(b)		3,801,990

	Total Unaffiliated Investment Company (Cost $3,801,990)			3,801,990

	Total Investment Securities (Cost $364,735,743)(c) — 128.6%			490,703,459
	Net other assets (liabilities) — (28.6)%			(109,118,450	)

	Net Assets — 100.0%		$	381,585,009

Cash of $237,000 has been segregated to cover margin requirements for the following open contracts as of December 31, 2014:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	364,735,743

Investment securities, at value*	$	490,703,459
Segregated cash for collateral		237,000
Interest and dividends receivable		522,720
Receivable for capital shares issued		7,470
Receivable for investments sold		2,721,562
Prepaid expenses		3,168

Total Assets		494,195,379

Liabilities:
Payable for investments purchased		551,087
Payable for capital shares redeemed		293,285
Payable for collateral received on loaned securities		111,487,356
Payable for variation margin on futures contracts		36,058
Manager fees payable		85,706
Administration fees payable		9,084
Distribution fees payable		79,831
Custodian fees payable		4,428
Administrative and compliance services fees payable		1,108
Trustee fees payable		22
Other accrued liabilities		62,405

Total Liabilities		112,610,370

Net Assets	$	381,585,009

Net Assets Consist of:
Capital	$	235,124,960
Accumulated net investment income/(loss)		3,014,216
Accumulated net realized gains/(losses) from investment transactions		17,340,201
Net unrealized appreciation/(depreciation) on investments		126,105,632

Net Assets	$	381,585,009

Shares of beneficial interest (unlimited number of shares authorized, no par value)		24,737,747
Net Asset Value (offering and redemption price per share)	$	15.43

*	Includes securities on loan of $108,165,728.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	4,929,219
Income from securities lending		276,759
Foreign withholding tax		(415	)

Total Investment Income		5,205,563

Expenses:
Manager fees		973,417
Administration fees		106,284
Distribution fees		935,974
Custodian fees		19,750
Administrative and compliance services fees		5,034
Trustee fees		19,323
Professional fees		20,870
Shareholder reports		22,189
Recoupment of prior expenses reimbursed by the manager		7,655
Other expenses		80,840

Total expenses		2,191,336

Net Investment Income/(Loss)		3,014,227

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		26,291,372
Net realized gains/(losses) on futures contracts		78,929
Change in net unrealized appreciation/depreciation on investments		(10,424,079	)

Net Realized/Unrealized Gains/(Losses) on Investments		15,946,222

Change in Net Assets Resulting From Operations	$	18,960,449

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Small Cap Stock Index Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $27,301 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund used futures contracts to provide equity exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $6.6 million as of December 31, 2014. The monthly average notional amount for these contracts was $5.5 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $4,651 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

circumstances. The counterparty to a derivatives contract could default. As required by applicable law, a Fund that invests in derivatives segregates cash or liquid securities, or both, to the extent that its obligations under the instrument are not covered through ownership of the underlying security, financial instrument, or currency.

Cost for federal income tax purposes at December 31, 2014 is $372,558,289. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Small Cap Stock Index Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 62.29% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $19,214,282.

During the year ended December 31, 2014, the Fund declared net short-term capital gain distributions of $2,133,787.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2014?

For the year ended December 31, 2014, the AZL^® T. Rowe Price Capital Appreciation Fund returned 11.77%. That compared to a 10.56% total return for its benchmark, the Balanced Composite Index, which is comprised of a 60% weighting in the S&P 500 Index¹ and a 40% weighting in the Barclays U.S. Aggregate Bond Index².

U.S. equities rose in 2014 for the sixth consecutive year as the economy recovered strongly from a first-quarter weather-related contraction. Falling long-term interest rates, solid employment growth, and favorable corporate earnings also supported strong gains for stocks. Nearly all S&P 500 sectors produced positive results, led by utilities. Energy was the only sector to decline. Long-term interest rates continued to decline due to global economic weakness and geopolitical uncertainties.

The Fund lagged the all-equity S&P 500 Index in 2014 due to its allocation to bonds in a rising equity environment. While the Fund’s equity holdings outpaced the S&P 500, its fixed income segment, while positive for the year, lagged its benchmark, the Barclays U.S. Aggregate Index. The portfolio’s overweight to high-yield bonds was beneficial in the first half of the year but detracted from returns later in the period.*

The Fund’s subadvisor trimmed holdings within the utilities and consumer staples sectors during the period and decreased its overall equity exposure from the prior year. However, the subadvisor continued to build on an overweight position in the health care sector. The Fund maintained significant exposure to covered call options, which provided downside protection while offering the benefits of owning a stock, such as dividends and capital appreciation, as long as the stock remained below the option strike price.*

Within equities, stock selection and an overweight within the health care sector supported the Fund’s performance relative to its benchmark. The acquisition of two health care stocks late in the year added to results. The industrials and business services sector detracted from relative results due to both stock selection and an overweight position. The energy sector also detracted from relative performance due to stock selection, though an underweight position in the year’s worst performing sector limited the damage.*

The Fund’s overall weighting toward fixed income marginally decreased during 2014 due to increasing difficulty finding attractive opportunities. Holdings in 10-year U.S. Treasuries were eliminated in the fourth quarter, as long-term interest rates continued to decline due to global economic weakness and geopolitical uncertainties. Meanwhile, the Fund’s exposure to high-yield bonds was increased as falling oil prices caused spreads to widen. Energy sector bonds compose the largest segment of the high-yield market, making it particularly sensitive to the price of oil. High-yield bonds remain the Fund’s largest asset class within fixed income, accounting for 15% at year-end.*

At the end of the period the Fund held currency forwards, equity options and index futures, all of which generated a net derivative exposure equivalent to approximately 6% of net assets. Short call options were used in a covered call strategy which decreased exposure to underlying securities. During the first 11 months of the period the Fund held only equity options. The estimated return impact from employing currency forwards was negligible. During the last three months of the period, the covered call strategy represented, on average, roughly 5% of the overall portfolio and generated a return of approximately 8%. The covered call strategy’s estimated contribution to the portfolio’s total return was less than 1%.*

Past performance does not guarantee future results.

¹	The S&P 500 is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole.

²	The Barclays U.S. Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

Investors cannot invest directly in an index.

Fund Objective

The Fund’s investment objective is to seek long-term capital appreciation with preservation of capital as an important intermediate-term objective. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 50% of its net assets in the common stock of established U.S. Companies that have above-average potential for capital growth. The remaining assets are generally invested in convertible securities, corporate and government debt, bank loans, and foreign securities.

Investment Concerns

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

The Fund is subject to the risk that principal values reacts in opposition to the movement of interest rates and that a rising interest rate environment increases the risk of loss of principal.

Investing in derivatives instruments involves risks that may be different from or greater than the risk associated with investing directly in securities or other traditional instruments.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Average Annual Total Returns as of December 31, 2014


	1 Year			3 Year			5 Year			10 Year
AZL^® T. Rowe Price Capital Appreciation Fund		11.77	%		17.72	%		11.86	%		5.98	%
Balanced Composite Index		10.56	%		13.18	%		11.29	%		6.87	%
S&P 500 Index		13.69	%		20.41	%		15.45	%		7.67	%
Barclay’s U.S. Aggregate Bond Index		5.97	%		2.66	%		4.45	%		4.71	%
Russell 1000^® Value Index		13.45	%		20.89	%		15.42	%		7.30	%


Expense Ratio¹	Gross
AZL^® T. Rowe Price Capital Appreciation Fund		1.07	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.70%. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance was previously measured against the Russell 1000^® Index. The Russell 1000^® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. It is currently measured against a composite index (the “Balanced Composite Index”), which is comprised of 60% of the Standard & Poor’s 500 Index (“S&P 500”) and 40% of the Barclays U.S. Aggregate Bond Index. The S&P 500 is representative of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The Barclays U.S. Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. These indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL T. Rowe Price Capital Appreciation Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (61.1%):
	Aerospace & Defense (1.1%):
	44,300	Boeing Co. (The)	$	5,758,114
	24,300	United Technologies Corp.		2,794,500

				8,552,614

	Auto Components (2.0%):
	106,900	Delphi Automotive plc		7,773,768
	162,500	Johnson Controls, Inc.		7,855,250

				15,629,018

	Banks (0.9%):
	109,900	JPMorgan Chase & Co.		6,877,542

	Beverages (0.8%):
	62,500	PepsiCo, Inc.		5,910,000

	Capital Markets (5.5%):
	142,400	Bank of New York Mellon Corp. (The)		5,777,168
	45,100	Invesco, Ltd.		1,782,352
	31,760	Julius Baer Group, Ltd.		1,449,807
	194,400	State Street Corp.		15,260,400
	254,100	TD Ameritrade Holding Corp.^		9,091,698
	560,512	UBS Group AG*		9,637,941

				42,999,366

	Chemicals (0.6%):
	103,400	Cytec Industries, Inc.		4,773,978

	Commercial Services & Supplies (1.6%):
	102,913	Iron Mountain, Inc.^		3,978,617
	190,000	Tyco International plc		8,333,400

				12,312,017

	Communications Equipment (0.2%):
	58,000	Cisco Systems, Inc.		1,613,270

	Electric Utilities (0.3%):
	62,500	FirstEnergy Corp.^		2,436,875

	Electrical Equipment (1.9%):
	155,800	AMETEK, Inc.		8,199,754
	43,800	Roper Industries, Inc.		6,848,130

				15,047,884

	Food & Staples Retailing (0.8%):
	38,000	CVS Health Corp.		3,659,780
	26,500	Wal-Mart Stores, Inc.		2,275,820

				5,935,600

	Food Products (0.7%):
	5,300	J.M. Smucker Co. (The)^		535,194
	135,400	Mondelez International, Inc., Class A		4,918,405

				5,453,599

	Health Care Equipment & Supplies (3.0%):
	176,100	Abbott Laboratories		7,928,022
	72,100	Becton, Dickinson & Co.^		10,033,436
	95,500	CareFusion Corp.*		5,666,970

				23,628,428


Shares			Fair Value
	Common Stocks, continued
	Health Care Providers & Services (2.4%):
	68,300	CIGNA Corp.	$	7,028,752
	35,700	DaVita, Inc.*		2,703,918
	13,400	Henry Schein, Inc.*		1,824,410
	72,000	UnitedHealth Group, Inc.		7,278,480

				18,835,560

	Industrial Conglomerates (4.5%):
	416,300	Danaher Corp.		35,681,073

	Insurance (2.7%):
	377,700	Marsh & McLennan Cos., Inc.		21,619,548

	Internet Software & Services (1.2%):
	34,400	eBay, Inc.*		1,930,528
	9,600	Google, Inc., Class C*		5,053,440
	5,100	Google, Inc., Class A*		2,706,366

				9,690,334

	IT Services (5.1%):
	142,200	Fidelity National Information Services, Inc.		8,844,840
	273,700	Fiserv, Inc.*^		19,424,489
	30,000	Vantive, Inc., Class A*		1,017,600
	44,500	Visa, Inc., Class A		11,667,900

				40,954,829

	Life Sciences Tools & Services (3.2%):
	88,700	Agilent Technologies, Inc.		3,631,378
	169,300	Thermo Fisher Scientific, Inc.		21,211,597

				24,842,975

	Machinery (2.0%):
	44,400	IDEX Corp.		3,456,096
	190,600	Pentair, Ltd.		12,659,652

				16,115,748

	Media (1.6%):
	32,100	Liberty Global plc, Class A*		1,611,581
	145,500	Liberty Global plc, Series C*		7,029,105
	73,700	Twenty-First Century Fox, Inc., Class B		2,718,793
	15,000	Viacom, Inc., Class B		1,128,750

				12,488,229

	Multi-Utilities (2.2%):
	267,900	PG&E Corp.		14,262,996
	83,400	Xcel Energy, Inc.		2,995,728

				17,258,724

	Oil, Gas & Consumable Fuels (2.7%):
	36,700	Apache Corp.^		2,299,989
	19,800	California Resources Corp.*^		109,098
	395,800	Canadian Natural Resources, Ltd.		12,222,304
	51,800	Occidental Petroleum Corp.		4,175,598
	42,673	Range Resources Corp.^		2,280,872

				21,087,861

	Paper & Forest Products (0.0%):
	488,000	Sino-Forest Corp.*(a)(b)		—


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Pharmaceuticals (6.9%):
	45,600	Actavis, Inc. plc*	$	11,737,896
	62,400	Allergan, Inc.		13,265,616
	200,900	Eli Lilly & Co.		13,860,090
	28,100	Merck & Co., Inc.		1,595,799
	227,600	Pfizer, Inc.		7,089,740
	177,200	Zoetis, Inc.		7,624,916

				55,174,057

	Real Estate Investment Trusts (REITs) (1.5%):
	49,300	American Tower Corp.		4,873,305
	90,300	Crown Castle International Corp.		7,106,610

				11,979,915

	Semiconductors & Semiconductor Equipment (0.9%):
	137,900	Texas Instruments, Inc.		7,372,824

	Specialty Retail (3.7%):
	32,400	AutoZone, Inc.*^		20,059,164
	110,900	Lowe’s Cos., Inc.		7,629,920
	7,400	O’Reilly Automotive, Inc.*		1,425,388

				29,114,472

	Tobacco (0.8%):
	73,500	Philip Morris International, Inc.		5,986,575

	Wireless Telecommunication Services (0.3%):
	19,100	SBA Communications Corp., Class A*		2,115,516

	Total Common Stocks (Cost $425,419,096)			481,488,431

	Preferred Stocks (0.1%):
	Banks (0.0%):
	9,874	U.S. Bancorp, Series F, Preferred Shares^		290,789

	Capital Markets (0.1%):
	21,000	State Street Corp., Preferred Shares		530,040

	Total Preferred Stocks (Cost $789,426)			820,829

	Convertible Preferred Stocks (0.5%):
	Electric Utilities (0.2%):
	16,700	SCE Trust I, 5.63%, Callable 6/15/17 @25^		409,150
	2,930	SCE Trust II, 5.10%, Callable 3/15/18 @25		66,628
	32,472	SCE Trust II, 5.75%, Callable 3/15/24 @25^		858,885

				1,334,663

	Oil, Gas & Consumable Fuels (0.0%):
	210	Chesapeake Energy Corp., 4.50%^		19,215

	Wireless Telecommunication Services (0.3%):
	40,285	T-Mobile US, Inc., Series A, 5.50%		2,134,702

	Total Convertible Preferred Stocks (Cost $3,263,415)			3,488,580

	Convertible Bonds (0.2%):
	Airlines (0.1%):
	365,000	United Airlines, Inc., 4.50%, 1/15/15		1,278,641

	Media (0.1%):
	542,000	Group, Inc. (The), 0.35%, 6/15/20^		604,330

	Total Convertible Bonds (Cost $1,348,248)			1,882,971


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds (20.8%):
	Advertising (0.1%):
$	225,000	CCO Holdings LLC/CCO Holdings Capital Corp., 8.13%, 4/30/20, Callable 4/30/15 @ 104.06	$	236,813
	825,000	CCO Holdings LLC/CCO Holdings Capital Corp., 7.38%, 6/1/20, Callable 12/1/15 @ 103.69		874,500

				1,111,313

	Aerospace & Defense (0.0%):
	200,000	Moog, Inc., 5.25%, 12/1/22, Callable 12/1/17 @ 103.94(c)		202,500

	Airlines (0.1%):
	580,533	U.S. Airways 2010-1A PTT, Series A, 6.25%, 10/22/24		651,649

	Auto Components (0.4%):
	950,000	Delphi Corp., 6.13%, 5/15/21, Callable 5/15/16 @ 103.06^		1,035,500
	2,000,000	Delphi Corp., 5.00%, 2/15/23, Callable 2/15/18 @ 102.5		2,134,960

				3,170,460

	Banks (0.1%):
	651,860	Pinnacle Foods Finance LLC, 2.73%, 4/29/20(d)		631,287
	495,000	Pinnacle Foods Finance LLC, 3.00%, 4/29/20(d)		478,913

				1,110,200

	Capital Markets (1.4%):
	1,450,000	E*TRADE Financial Corp., 6.38%, 11/15/19, Callable 11/15/15 @ 104.78		1,537,000
	250,000	Ford Motor Credit Co. LLC, 4.25%, 2/3/17^		262,517
	500,000	Ford Motor Credit Co. LLC, 6.63%, 8/15/17		557,379
	1,000,000	Ford Motor Credit Co. LLC, 0.76%, 9/8/17(d)		993,114
	1,800,000	Ford Motor Credit Co. LLC, 0.81%, 12/6/17(d)		1,788,439
	475,000	Ford Motor Credit Co. LLC, 1.72%, 12/6/17		470,091
	1,625,000	Ford Motor Credit Co. LLC, 5.00%, 5/15/18		1,765,641
	1,975,000	Ford Motor Credit Co. LLC, 2.38%, 3/12/19^		1,961,249
	1,400,000	Ford Motor Credit Co. LLC, 2.60%, 11/4/19		1,392,469

				10,727,899

	Chemicals (0.4%):
	905,000	Cytec Industries, Inc., 3.95%, 5/1/25, Callable 2/1/25 @ 100		915,982
	1,044,339	Kronos, Inc., 4.50%, 10/30/19(d)		1,034,470
	1,250,000	Kronos, Inc., 9.75%, 4/30/20(d)		1,268,750

				3,219,202

	Commercial Services & Supplies (0.1%):
	500,000	International Lease Finance Corp., 2.19%, 6/15/16^(d)		499,375

	Consumer Finance (0.0%):
	250,000	First Data Corp., 3.67%, 3/24/18(d)		244,375

	Diversified Financial Services (1.2%):
	570,000	Caterpillar Financial Services Corp., 2.25%, 12/1/19, MTN^		570,624
	540,000	Caterpillar Financial Services Corp., 3.25%, 12/1/24, MTN		547,135


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Diversified Financial Services, continued
$	50,000	CNH Industrial Capital LLC, 3.88%, 11/1/15^	$	50,250
	1,425,000	CNH Industrial Capital LLC, 6.25%, 11/1/16^		1,492,688
	275,000	CNH Industrial Capital LLC, 3.63%, 4/15/18		270,875
	6,300,000	UPC Financing Partnership, 3.25%, 6/30/21(d)		6,134,625

				9,066,197

	Diversified Telecommunication Services (1.8%):
	13,600,000	Intelsat Jackson Holding SA, 3.75%, 6/30/19(d)		13,379,000
	1,979,899	Telesat Canada, 3.50%, 3/28/19(d)		1,948,973

				15,327,973

	Electric Utilities (0.0%):
	253,960	Texas Competitive Electric Holdings Co. LLC, 3.75%, 5/5/16(d)		253,960

				253,960

	Electrical Equipment (0.0%):
	210,000	Amphenol Corp., 1.55%, 9/15/17		209,415

	Food & Staples Retailing (0.5%):
	746,250	Rite Aid Corp., 3.50%, 2/21/20(d)		741,586
	2,800,000	Rite Aid Corp., 8.00%, 8/15/20, Callable 8/15/15 @ 104		2,992,500

				3,734,086

	Food Products (1.2%):
	250,000	B&G Foods, Inc., 4.63%, 6/1/21, Callable 6/1/16 @ 103.47		244,025
	8,913,008	H.J. Heinz Co., 3.50%, 6/5/20(d)		8,847,764

				9,091,789

	Gas Utilities (0.1%):
	625,000	Suburban Propane Partners LP, 7.38%, 3/15/20, Callable 3/15/15 @ 103.69		648,438

	Health Care Equipment & Supplies (0.8%):
	650,000	Becton, Dickinson & Co., 1.80%, 12/15/17		652,397
	630,000	Becton, Dickinson & Co., 2.68%, 12/15/19		638,285
	575,000	Becton, Dickinson & Co., 3.73%, 12/15/24, Callable 9/15/24 @ 100		592,006
	155,000	Becton, Dickinson & Co., 4.69%, 12/15/44, Callable 6/15/44 @ 100		166,929
	500,000	Medtronic, Inc., 1.50%, 3/15/18(c)		497,611
	795,000	Medtronic, Inc., 2.50%, 3/15/20(c)		797,085
	1,040,000	Medtronic, Inc., 3.50%, 3/15/25(c)		1,063,889
	1,405,000	Medtronic, Inc., 4.63%, 3/15/45(c)		1,523,005

				5,931,207


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Health Care Providers & Services (1.3%):
$	2,023,063	DaVita Healthcare Partners, Inc., 3.50%, 6/24/21(d)	$	1,998,240
	3,700,000	DaVita HealthCare Partners, Inc., 5.13%, 7/15/24, Callable 7/15/19 @ 102.56^		3,774,000
	975,000	DaVita, Inc., 6.63%, 11/1/20, Callable 2/6/15 @ 104.97^		1,023,750
	2,600,000	DaVita, Inc., 5.75%, 8/15/22, Callable 8/15/17 @ 102.88		2,756,000
	350,000	Omnicare, Inc., 5.00%, 12/1/24, Callable 9/1/24 @ 100		358,750
	470,000	UnitedHealth Group, Inc., 1.40%, 12/15/17		469,581

				10,380,321

	Health Care Services (0.2%):
	600,000	Fresenius Medical Care, 5.63%, 7/31/19(c)		640,500
	525,000	Fresenius Medical Care, 5.88%, 1/31/22(c)		569,625

				1,210,125

	Hotels, Restaurants & Leisure (0.3%):
	200,000	Cedar Fair LP, 5.25%, 3/15/21, Callable 3/15/16 @ 103.94		201,000
	850,000	Hilton Worldwide Finance LLC, 3.50%, 10/25/20(d)		839,018
	989,975	Wendy’s International LLC, 3.25%, 5/15/19(d)		980,283

				2,020,301

	Internet & Catalog Retail (0.3%):
	1,305,000	Amazon.com, Inc., 2.60%, 12/5/19, Callable 11/5/19 @ 100^		1,318,260
	650,000	Amazon.com, Inc., 3.80%, 12/5/24, Callable 9/5/24 @ 100		665,938

				1,984,198

	Machinery (0.1%):
	550,000	Xylem, Inc., 3.55%, 9/20/16		571,556

	Media (1.6%):
	575,000	Charter Communications, Inc., 4.25%, 8/12/21(d)		578,237
	250,000	Lamar Media Corp., 5.88%, 2/1/22, Callable 2/1/17 @ 102.94		259,375
	270,000	Lamar Media Corp., 5.00%, 5/1/23, Callable 5/1/18 @ 102.5^		267,300
	4,575,000	Univision Communications, Inc., 6.88%, 5/15/19, Callable 5/15/15 @ 103.44(c)		4,763,719
	3,250,000	Univision Communications, Inc., 7.88%, 11/1/20, Callable 11/1/15 @ 103.94(c)		3,461,250
	2,009,000	Univision Communications, Inc., 6.75%, 9/15/22, Callable 9/15/17 @ 103.38(c)		2,149,630
	850,000	Univision Communications, Inc., 5.13%, 5/15/23, Callable 5/15/18 @ 102.56(c)		858,500

				12,338,011


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Multiline Retail (0.1%):
$	75,000	Amerigas Finance Corp. LLC, 6.75%, 5/20/20, Callable 5/20/16 @ 103.38	$	77,250
	525,000	Amerigas Finance Corp. LLC, 7.00%, 5/20/22, Callable 5/20/17 @ 103.5		543,375

				620,625

	Multi-Utilities (0.6%):
	725,000	Berkshire Hathaway Energy Co., 2.40%, 2/1/20, Callable 1/1/20 @ 100^(c)		721,843
	750,000	Berkshire Hathaway Energy Co., 3.50%, 2/1/25, Callable 12/1/24 @ 100(c)		754,769
	550,000	Berkshire Hathaway Energy Co., 4.50%, 2/1/45, Callable 8/1/44 @ 100(c)		575,491
	450,000	CMS Energy Corp., 8.75%, 6/15/19		563,373
	1,250,000	Dominion Resources, Inc., 2.50%, 12/1/19, Callable 11/1/19 @ 100^		1,253,650
	525,000	Dominion Resources, Inc., 3.63%, 12/1/24, Callable 9/1/24 @ 100		531,805

				4,400,931

	Oil Gas & Consumable Fuels (0.0%):
	210,000	Noble Energy, Inc., 3.90%, 11/15/24, Callable 8/15/24 @ 100^		207,553

	Oil, Gas & Consumable Fuels (6.0%):
	1,075,000	Antero Resources Finance Corp., 6.00%, 12/1/20, Callable 12/1/15 @ 104.03		1,072,313
	1,000,000	Antero Resources Finance Corp., 5.38%, 11/1/21, Callable 11/1/16 @ 104.03		967,500
	475,000	Antero Resources Finance Corp., 5.13%, 12/1/22, Callable 6/1/17 @ 103.84^(c)		447,688
	725,000	Chesapeake Energy Corp., 3.25%, 3/15/16, Callable 2/6/15 @ 101		723,188
	525,000	Chesapeake Energy Corp., 3.48%, 4/15/19, Callable 4/15/15 @ 101(d)		514,500
	3,175,000	Concho Resources, Inc., 7.00%, 1/15/21, Callable 1/15/16 @ 103.5^		3,325,812
	825,000	Concho Resources, Inc., 6.50%, 1/15/22, Callable 1/15/17 @ 103.25		862,125
	1,375,000	Concho Resources, Inc., 5.50%, 4/1/23, Callable 10/1/17 @ 102.75		1,381,463
	700,000	CONSOL Energy, Inc., 5.88%, 4/15/22, Callable 4/15/17 @ 104.41(c)		651,000
	500,000	Energy Transfer Partners LP, 4.15%, 10/1/20, Callable 8/1/20 @ 100		512,590
	550,000	Energy Transfer Partners LP, 4.90%, 2/1/24, Callable 11/1/23 @ 100		576,329
	210,000	EQT Corp., 6.50%, 4/1/18		236,321
	350,000	EQT Corp., 8.13%, 6/1/19		421,951
	2,025,000	EQT Corp., 4.88%, 11/15/21		2,187,622
	2,025,000	Laredo Petroleum, Inc., 9.50%, 2/15/19, Callable 2/15/15 @ 104.75		2,014,875
	600,000	Laredo Petroleum, Inc., 5.63%, 1/15/22, Callable 1/15/17 @ 104.22^		525,000


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Oil, Gas & Consumable Fuels, continued
$	1,525,000	Markwest Energy Partners LP, 6.75%, 11/1/20, Callable 11/1/15 @ 103.38^	$	1,586,000
	1,225,000	Markwest Energy Partners LP, 6.50%, 8/15/21, Callable 2/15/16 @ 103.25		1,261,750
	1,875,000	Markwest Energy Partners LP, 6.25%, 6/15/22, Callable 12/15/16 @ 103.13		1,940,625
	2,625,000	Markwest Energy Partners LP, 5.50%, 2/15/23, Callable 8/15/17 @ 102.75^		2,657,813
	3,650,000	Markwest Energy Partners LP, 4.50%, 7/15/23, Callable 4/15/23 @ 100		3,513,124
	1,000,000	MarkWest Energy Partners LP, 4.88%, 12/1/24, Callable 9/1/24 @ 100^		977,500
	1,850,000	Range Resources Corp., 6.75%, 8/1/20, Callable 8/1/15 @ 103.38		1,924,000
	4,625,000	Range Resources Corp., 5.75%, 6/1/21, Callable 6/1/16 @ 102.88^		4,775,312
	4,275,000	Range Resources Corp., 5.00%, 8/15/22, Callable 2/15/17 @ 102.5		4,274,999
	5,150,000	Range Resources Corp., 5.00%, 3/15/23, Callable 3/15/18 @ 102.5^		5,149,999
	875,000	SM Energy Co., 6.50%, 11/15/21, Callable 11/15/16 @ 103.25		848,750
	350,000	Targa Resources Partners LP, 6.88%, 2/1/21, Callable 2/1/16 @ 103.44^		357,875
	700,000	Targa Resources Partners LP, 5.25%, 5/1/23, Callable 11/1/17 @ 102.63		675,500
	750,000	Targa Resources Partners LP, 4.25%, 11/15/23, Callable 5/15/18 @ 102.13		682,500
	725,000	WPX Energy, Inc., 5.25%, 1/15/17^		732,250

				47,778,274

	Pharmaceuticals (0.4%):
	405,000	Johnson & Johnson, 1.13%, 11/21/17^		403,791
	1,850,000	Johnson & Johnson, 3.38%, 12/5/23		1,979,543
	200,000	Novartis Capital Corp., 3.40%, 5/6/24		208,056
	830,000	Roche Holding, Inc., 3.35%, 9/30/24, Callable 6/30/24 @ 100(c)		854,242

				3,445,632

	Real Estate Investment Trusts (REITs) (0.9%):
	300,000	American Tower Corp., 5.00%, 2/15/24^		318,140
	4,341,169	Crown Castle Operating Co., 3.00%, 1/31/21(d)		4,265,198
	500,000	DE Master Blenders, 4.25%, 7/2/21		601,711
	1,975,000	DE Master Blenders, 4.25%, 7/2/21		1,930,563

				7,115,612

	Real Estate Management & Development (0.1%):
	750,000	CBRE Services, Inc., 5.00%, 3/15/23, Callable 3/15/18 @ 102.5		766,425

	Specialty Retail (0.3%):
	125,000	Group 1 Automotive, Inc., 5.00%, 6/1/22, Callable 6/1/17 @ 103.75(c)		122,188
	350,000	L Brands, Inc., 6.90%, 7/15/17^		385,000
	250,000	L Brands, Inc., 8.50%, 6/15/19		296,250


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Specialty Retail, continued
$	250,000	L Brands, Inc., 7.00%, 5/1/20	$	283,750
	500,000	L Brands, Inc., 6.63%, 4/1/21		562,500
	525,000	L Brands, Inc., 5.63%, 2/15/22		564,375
	350,000	Penske Automotive Group, Inc., 5.38%, 12/1/24, Callable 12/1/19 @ 102.69		354,375

				2,568,438

	Wireless Telecommunication Services (0.4%):
	1,050,000	Crown Castle International Corp., 4.88%, 4/15/22		1,060,500
	725,000	Crown Castle International Corp., 5.25%, 1/15/23		739,500
	225,000	SBA Communications Corp., 5.63%, 10/1/19, Callable 10/1/16 @ 102.81		230,063
	500,000	SBA Communications Corp., 5.75%, 7/15/20, Callable 7/15/16 @ 102.88		508,900
	750,000	Sprint Communications, Inc., 9.00%, 11/15/18(c)		853,050

				3,392,013

	Total Corporate Bonds (Cost $165,590,979)			164,000,053

	Foreign Bonds (0.3%):
	Containers & Packaging (0.1%):
	750,000	Rexam plc, 6.75%, 6/29/67, Callable 6/29/17 @ 100+(d)		907,430

	Wireless Telecommunication Services (0.2%):
	1,025,000	Matterhorn Mobile SA, 6.75%, 5/15/19, Callable 2/15/15 @ 105.06+(c)		1,082,959

	Total Foreign Bonds (Cost $2,194,744)			1,990,389

	Yankee Dollars (5.2%):
	Banks (0.8%):
	1,225,000	KFW, Series G, 0.50%, 4/19/16		1,224,976
	4,715,000	KFW, 2.50%, 11/20/24		4,780,873

				6,005,849

	Diversified Telecommunication Services (1.5%):
	1,975,000	Intelsat Jackson Holding SA, 7.25%, 4/1/19, Callable 4/1/15 @ 103.65		2,061,406
	4,885,000	Intelsat Jackson Holding SA, 7.25%, 10/15/20, Callable 10/15/15 @ 103.63		5,159,781
	1,715,000	Intelsat Jackson Holding SA, 5.50%, 8/1/23, Callable 8/1/18 @ 102.75^		1,704,539
	1,850,000	Intelsat Jackson Holdings SA, 7.50%, 4/1/21, Callable 4/1/15 @ 103.75		1,979,500
	530,000	Telesat Canada, 6.00%, 5/15/17, Callable 2/6/15 @ 103(c)		540,600

				11,445,826

	Media (0.5%):
	2,475,000	Unitymedia Hessen, 7.50%, 3/15/19, Callable 3/15/15 @ 103.75(c)		2,598,750
	650,000	Unitymedia Hessen, 5.50%, 1/15/23, Callable 1/15/18 @ 103(c)		679,250
	950,000	Unitymedia Kabelbw GMBH, 6.13%, 1/15/25(c)		980,875

				4,258,875


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Yankee Dollars, continued
	Oil, Gas & Consumable Fuels (0.1%):
$	360,000	Canadian Natural Resources, 1.75%, 1/15/18	$	357,882
	770,000	Canadian Natural Resources, 3.90%, 2/1/25, Callable 11/1/24 @ 100		759,040

				1,116,922

	Semiconductors & Semiconductor Equipment (0.5%):
	1,550,000	NXP Funding BV/NXP Funding LLC, 3.75%, 6/1/18(c)		1,550,000
	1,150,000	NXP Funding BV/NXP Funding LLC, 5.75%, 2/15/21, Callable 2/15/17 @ 102.88(c)		1,207,500
	1,400,000	NXP Funding BV/NXP Funding LLC, 5.75%, 3/15/23, Callable 3/15/18 @ 102.88(c)		1,473,500

				4,231,000

	Wireless Telecommunication Services (1.8%):
	5,880,000	UPCB Finance III, Ltd., 6.63%, 7/1/20, Callable 7/1/15 @ 103.31(c)		6,173,999
	3,800,000	UPCB Finance V, Ltd., 7.25%, 11/15/21, Callable 11/15/16 @ 103.63(c)		4,156,250
	3,325,000	UPCB Finance VI, Ltd., 6.88%, 1/15/22, Callable 1/15/17 @ 103.44(c)		3,615,938

				13,946,187

	Total Yankee Dollars (Cost $40,724,139)			41,004,659

	U.S. Treasury Obligation (1.3%):
	U.S. Treasury Note (1.3%)
	10,000,000	0.25%, 10/31/15		9,999,220

	Total U.S. Treasury Obligation (Cost $9,998,451)			9,999,220

	Securities Held as Collateral for Securities on Loan (6.1%):
	48,016,055	Allianz Variable Insurance Products Securities Lending Collateral Trust(e)		48,016,055

	Total Securities Held as Collateral for Securities on Loan (Cost $48,016,055)			48,016,055

	Unaffiliated Investment Company (12.0%):
	94,849,675	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(f)		94,849,675

	Total Unaffiliated Investment Company (Cost $94,849,675)			94,849,675

	Total Investment Securities (Cost $792,194,228)(g) —107.6%			847,540,862
	Net other assets (liabilities) — (7.6)%			(59,970,579	)

	Net Assets — 100.0%		$	787,570,283

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2014:

Cash of $967,087 has been segregated to cover margin requirements for the following open contracts as of December 31, 2014:


Description	Counterparty	Put/Call	Strike Price			Expiration Date		Contracts		Fair Value
Cisco Systems, Inc.	Citibank	Call		USD	25.00		01/15/16		510	$	(186,611	)
CVS Health Corp.	Morgan Stanley	Call		USD	78.00		01/16/15		19		(35,762	)
CVS Health Corp.	Morgan Stanley	Call		USD	80.00		01/16/15		19		(31,036	)
CVS Health Corp.	Morgan Stanley	Call		USD	90.00		01/15/16		126		(134,305	)
CVS Health Corp.	Morgan Stanley	Call		USD	95.00		01/15/16		126		(96,942	)
Danaher Corp.	JPMorgan Chase	Call		USD	80.00		01/16/15		18		(10,571	)
Danaher Corp.	JPMorgan Chase	Call		USD	85.00		01/16/15		18		(3,069	)
Danaher Corp.	JPMorgan Chase	Call		USD	90.00		01/16/15		61		(591	)
Lowe’s Cos., Inc.	Morgan Stanley	Call		USD	60.00		01/15/16		315		(335,234	)
Lowe’s Cos., Inc.	Morgan Stanley	Call		USD	75.00		01/15/16		119		(38,870	)
Lowe’s Cos., Inc.	Morgan Stanley	Call		USD	53.00		01/16/15		14		(22,537	)
Lowe’s Cos., Inc.	Morgan Stanley	Call		USD	55.00		01/16/15		14		(19,069	)
Lowe’s Cos., Inc.	JPMorgan Chase	Call		USD	55.00		01/16/15		153		(208,403	)
Mondelez International, Inc.	Citibank	Call		USD	45.00		01/15/16		194		(12,886	)
Occidental Petroleum Corp.	Citibank	Call		USD	95.00		01/15/16		239		(58,201	)
Occidental Petroleum Corp.	Citibank	Call		USD	98.00		01/15/16		239		(47,708	)
PepsiCo, Inc.	Morgan Stanley	Call		USD	100.00		01/15/16		177		(56,119	)
PepsiCo, Inc.	Morgan Stanley	Call		USD	105.00		01/15/16		108		(20,527	)
PepsiCo, Inc.	Morgan Stanley	Call		USD	110.00		01/15/16		184		(20,776	)
Pfizer, Inc.	Citibank	Call		USD	30.00		01/15/16		721		(182,643	)
Pfizer, Inc.	Citibank	Call		USD	32.00		01/16/15		98		(1,763	)
Pfizer, Inc.	Citibank	Call		USD	35.00		01/16/15		98		(159	)
State Street Corp.	Morgan Stanley	Call		USD	85.00		01/15/16		99		(43,807	)
TD Ameritrade Holding Corp.	Citibank	Call		USD	30.00		01/16/15		1,211		(759,165	)
TD Ameritrade Holding Corp.	JPMorgan Chase	Call		USD	33.00		01/16/15		607		(173,521	)
TD Ameritrade Holding Corp.	Citibank	Call		USD	30.00		02/20/15		723		(417,162	)
Texas Instruments, Inc.	Citibank	Call		USD	45.00		01/16/15		489		(416,416	)
Texas Instruments, Inc.	Citibank	Call		USD	50.00		01/16/15		215		(80,755	)
The Boeing Co.	Citibank	Call		USD	140.00		01/15/16		61		(35,491	)
The Boeing Co.	Citibank	Call		USD	145.00		01/16/15		40		(47	)
The Boeing Co.	Citibank	Call		USD	150.00		01/16/15		41		(16	)
The Boeing Co.	Citibank	Call		USD	155.00		01/16/15		40		(5	)
Thermo Fisher Scientific, Inc.	Citibank	Call		USD	150.00		01/15/16		49		(19,976	)
United Technologies Corp.	Citibank	Call		USD	120.00		01/15/16		160		(95,852	)
United Technologies Corp.	Citibank	Call		USD	120.00		01/16/15		83		(1,651	)
UnitedHealth Group, Inc.	Citibank	Call		USD	100.00		01/15/16		102		(94,464	)
UnitedHealth Group, Inc.	Citibank	Call		USD	105.00		01/15/16		102		(69,963	)
Wal-Mart Stores, Inc.	Citibank	Call		USD	80.00		01/15/16		123		(102,604	)
Wal-Mart Stores, Inc.	Citibank	Call		USD	83.00		01/15/16		123		(82,327	)

Total Over-the-counter options										$	(4,387,591	)

At December 31, 2014, the Fund’s open forward currency contracts were as follows:

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	792,194,228

Investment securities, at value*	$	847,540,862
Cash		57,143
Segregated cash for collateral		967,087
Interest and dividends receivable		3,141,713
Foreign currency, at value (cost $509,959)		504,231
Unrealized appreciation on forward currency contracts		9,817
Receivable for capital shares issued		2,521,057
Receivable for investments sold		3,131,261
Reclaims receivable		42,846
Prepaid expenses		6,158

Total Assets		857,922,175

Liabilities:
Payable for investments purchased		16,736,296
Payable for capital shares redeemed		303,496
Payable for collateral received on loaned securities		48,016,055
Written Options (Premiums received $2,178,591)		4,604,092
Manager fees payable		459,984
Administration fees payable		19,020
Distribution fees payable		164,280
Custodian fees payable		7,056
Administrative and compliance services fees payable		2,108
Trustee fees payable		42
Other accrued liabilities		39,463

Total Liabilities		70,351,892

Net Assets	$	787,570,283

Net Assets Consist of:
Capital	$	694,488,080
Accumulated net investment income/(loss)		5,989,304
Accumulated net realized gains/(losses) from investment transactions		33,684,672
Net unrealized appreciation/(depreciation) on investments		53,408,227

Net Assets	$	787,570,283

Shares of beneficial interest (unlimited number of shares authorized, no par value)		49,520,499
Net Asset Value (offering and redemption price per share)	$	15.90

*	Includes securities on loan of $46,362,614.

Statement of Operations

For the Year Ended December 31, 2014


Investment Income:
Dividends	$	6,367,248
Interest		5,878,615
Income from securities lending		30,812
Foreign withholding tax		(35,690	)

Total Investment Income		12,240,985

Expenses:
Manager fees		4,740,351
Administration fees		184,513
Distribution fees		1,580,117
Custodian fees		28,511
Administrative and compliance services fees		8,251
Trustee fees		31,118
Professional fees		37,113
Shareholder reports		38,759
Other expenses		17,630

Total expenses before reductions		6,666,363
Less expenses voluntarily waived/reimbursed by the Manager		(316,033	)

Net expenses		6,350,330

Net Investment Income/(Loss)		5,890,655

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		34,130,209
Net realized gains/(losses) on futures contracts		(790,069	)
Net realized gains/(losses) on options contracts		560,092
Net realized gains/(losses) on forward currency contracts		(31,125	)
Change in net unrealized appreciation/depreciation on investments		31,445,254

Net Realized/Unrealized Gains/(Losses) on Investments		65,314,361

Change in Net Assets Resulting From Operations	$	71,205,016

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL T. Rowe Price Capital Appreciation Fund (the “Fund”), and 30 are presented in separate reports.

To generate additional income, the Fund may lend up to 33 ¹/₃% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2014 are presented on the Fund’s Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $17.8 million for the year ended December 31, 2014.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $3,069 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

During the year ended December 31, 2014, the Fund entered into forward currency contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or the seller, is the unrealized appreciation of the contract. The forward currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The contract amount of forward currency contracts outstanding was $1.5 million as of December 31, 2014. The monthly average amount for these contracts was $0.1 million for the year ended December 31, 2014.

During the year ended December 31, 2014, the Fund used futures contracts to provide market exposure on the Fund’s cash balances. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $12.1 million as of December 31,2014. The monthly average notional amount for these contracts was $1 million for the year ended December 31, 2014. Realized gains and losses are reported as “Net realized gains/(losses) on futures contracts” on the Statement of Operations.

The following is a summary of the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2014:

December 31, 2014. For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to master netting arrangements in the Statement of Assets and Liabilities. This table also summarizes the fair values of derivative instruments on the Fund’s Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2014.

As of December 31, 2014, the Fund’s derivative assets and liabilities by type are as follows:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to subadvisory agreement with T. Rowe Price Associates, Inc. (“T. Rowe Price”), T. Rowe Price provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $7,639 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $793,082,177. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2014 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2013 were as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL T. Rowe Price Capital Appreciation Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

For the year ended December 31, 2014, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2014, the Fund declared net long-term capital gain distributions of $66,596,069.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 800-624-0197; (ii) on the Allianz Variable Insurance Products Fund of Funds Trust’s website at https://www.allianzlife.com; and (iii) on the Commission’s website at http://www.sec.gov.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

What factors affected the Fund’s performance from its inception on April 25, 2014 to the period ended December 31, 2014?

From its inception on April 25, 2014 to the period ended December 31, 2014, the AZL^® Wells Fargo Large Cap Growth Fund returned 12.70%. That compared to a 13.13% total return for its benchmark, the Russell 1000^® Growth Index¹.

Equities generally performed strongly during the period, and the Fund’s absolute returns benefited from the largely positive investor sentiment. Investors were encouraged by improved U.S. economic data, including increased gross domestic product² growth. However, concerns about the potential for deflation in Europe and slowing growth in China created some headwinds that dragged on absolute returns.

Investors made a dramatic move away from fast-growing equities in the early part of the period, regardless of the companies’ fundamentals. In the second half of the year they continued to prioritize slower-growing, dividend-paying stocks, even as growth stocks reported strong earnings.

The Fund slightly underperformed the benchmark. Underweight positions in slower growing dividend-paying, mega-cap brands, which do not meet the Fund’s investment criteria, detracted from relative performance as investors moved away from growth stocks during the first and second quarters. For example, the Fund holds underweight positions in two global tech giants, whose stock prices rose over the period. However, the firms were not growing fast enough to merit a larger investment from the Fund. In addition, an underweight position in the consumer staples sector slightly detracted from the Fund’s relative performance.*

Fund Objective

The Fund’s investment objective is to seek long-term capital appreciation. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing at least 80% of its net assets in equity securities of large-capitalization companies.

Investment Concerns

Growth based investments can perform differently from the market as a whole and can be more volatile than other types of securities.

The Fund is subject to the risk that principal values reacts in opposition to the movement of interest rates and that a rising interest rate environment increases the risk of loss of principal.

For a complete description of these and other risks associated with investing in a mutual Fund, please refer to the Fund’s prospectus.

Growth of $10,000 Investment

LOGO

Aggregate Total Returns as of December 31, 2014


	6 Month			Since Inception (4/25/14)
AZL^® Wells Fargo Large Cap Growth Fund		5.43	%		12.70	%
Russell 1000^® Growth Index		6.34	%		13.13	%


Expense Ratio	Gross
AZL^® Wells Fargo Large Cap Growth Fund		1.15	%

The above expense ratio is based on the current Fund prospectus dated April 28, 2014. The Manager voluntarily reduced the management fee to 0.70%. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expense and Acquired Fund fees and expenses), to 1.20% through April 30, 2016. Additional information pertaining to the December 31, 2014 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Russell 1000^® Growth Index, an unmanaged index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment fees for services provided to the Fund. Investors cannot invest directly in an index.

As a shareholder of the AZL Wells Fargo Large Cap Growth Fund (the “Fund”), you incur ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in each table do not reflect expenses that apply to the subaccount or the insurance contract. If the expenses that apply to the subaccount of the insurance contract were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the periods presented below.


Shares			Fair Value
	Common Stocks (99.7%):
	Aerospace & Defense (2.4%):
	7,140	Boeing Co. (The)	$	928,057
	2,590	Precision Castparts Corp.		623,879
	7,420	United Technologies Corp.		853,300

				2,405,236

	Air Freight & Logistics (1.0%):
	8,810	United Parcel Service, Inc., Class B		979,408

	Airlines (0.8%):
	18,400	Southwest Airlines Co.		778,688

	Auto Components (0.6%):
	7,930	Delphi Automotive plc		576,670

	Biotechnology (9.2%):
	14,350	Alexion Pharmaceuticals, Inc.*		2,655,180
	5,600	Biogen Idec, Inc.*		1,900,920
	14,900	Celgene Corp.*		1,666,714
	14,500	Gilead Sciences, Inc.*		1,366,770
	4,480	Regeneron Pharmaceuticals, Inc.*		1,837,920

				9,427,504

	Capital Markets (2.7%):
	4,180	Ameriprise Financial, Inc.		552,805
	9,730	Northern Trust Corp.		655,802
	44,000	TD Ameritrade Holding Corp.		1,574,320

				2,782,927

	Chemicals (4.2%):
	14,550	Ecolab, Inc.		1,520,766
	5,630	Monsanto Co.		672,616
	15,920	Praxair, Inc.		2,062,595

				4,255,977

	Commercial Services & Supplies (0.6%):
	14,520	Tyco International plc		636,847

	Communications Equipment (1.2%):
	16,610	QUALCOMM, Inc.		1,234,621

	Consumer Finance (3.1%):
	17,720	American Express Co.		1,648,669
	22,220	Discover Financial Services		1,455,188

				3,103,857

	Energy Equipment & Services (1.3%):
	14,940	Schlumberger, Ltd.		1,276,025

	Food & Staples Retailing (2.2%):
	15,980	Costco Wholesale Corp.		2,265,165

	Health Care Equipment & Supplies (1.3%):
	12,810	Covidien plc		1,310,207

	Health Care Providers & Services (2.7%):
	12,500	AmerisourceBergen Corp.		1,127,000
	24,600	Cerner Corp.*		1,590,636

				2,717,636

	Hotels, Restaurants & Leisure (6.4%):
	2,310	Chipotle Mexican Grill, Inc.*		1,581,218
	15,790	Hilton Worldwide Holdings, Inc.*		411,961


Shares			Fair Value
	Common Stocks, continued
	Hotels, Restaurants & Leisure, continued
	18,000	Marriott International, Inc., Class A	$	1,404,540
	20,680	Starbucks Corp.		1,696,793
	9,610	Wynn Resorts, Ltd.		1,429,584

				6,524,096

	Household Products (0.9%):
	13,000	Colgate-Palmolive Co.		899,470

	Industrial Conglomerates (2.0%):
	7,170	3M Co.		1,178,174
	10,480	Danaher Corp.		898,241

				2,076,415

	Internet & Catalog Retail (2.3%):
	4,010	Amazon.com, Inc.*		1,244,503
	770	Netflix, Inc.*		263,040
	720	Priceline.com, Inc.*		820,951

				2,328,494

	Internet Software & Services (7.7%):
	10,690	Akamai Technologies, Inc.*		673,042
	33,840	Facebook, Inc., Class A*		2,640,196
	4,230	Google, Inc., Class C*		2,226,672
	4,260	Google, Inc., Class A*		2,260,612

				7,800,522

	IT Services (6.4%):
	9,300	Accenture plc, Class A		830,583
	5,350	Alliance Data Systems Corp.*		1,530,368
	27,000	MasterCard, Inc., Class A		2,326,320
	7,130	Visa, Inc., Class A		1,869,486

				6,556,757

	Media (3.6%):
	30,000	CBS Corp., Class B		1,660,200
	21,440	Pandora Media, Inc.*		382,275
	17,100	Walt Disney Co. (The)		1,610,649

				3,653,124

	Multiline Retail (3.9%):
	35,180	Dollar Tree, Inc.*		2,475,968
	18,420	Nordstrom, Inc.		1,462,364

				3,938,332

	Oil, Gas & Consumable Fuels (2.9%):
	8,800	Antero Resources Corp.*		357,104
	12,360	Concho Resources, Inc.*		1,232,910
	9,190	Pioneer Natural Resources Co.		1,367,932

				2,957,946

	Personal Products (1.1%):
	14,430	Estee Lauder Co., Inc. (The), Class A		1,099,566

	Pharmaceuticals (2.2%):
	9,630	Merck & Co., Inc.		546,888
	10,210	Perrigo Co. plc		1,706,704

				2,253,592


Shares			Fair Value
	Common Stocks, continued
	Real Estate Investment Trusts (REITs) (0.4%):
	4,590	American Tower Corp.	$	453,722

	Road & Rail (3.9%):
	7,330	Kansas City Southern Industries, Inc.		894,480
	8,440	Norfolk Southern Corp.		925,108
	18,130	Union Pacific Corp.		2,159,827

				3,979,415

	Semiconductors & Semiconductor Equipment (3.3%):
	18,960	Arm Holdings plc, ADR		877,848
	30,160	Microchip Technology, Inc.		1,360,517
	22,350	Texas Instruments, Inc.		1,194,943

				3,433,308

	Software (5.9%):
	9,450	Adobe Systems, Inc.*		687,016
	41,420	Microsoft Corp.		1,923,959
	25,270	Salesforce.com, Inc.*		1,498,764
	16,500	ServiceNow, Inc.*		1,119,525
	12,540	Splunk, Inc.*		739,233

				5,968,497


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Common Stocks, continued
	Specialty Retail (5.2%):
	28,590	CarMax, Inc.*	$	1,903,522
	8,830	O’Reilly Automotive, Inc.*		1,700,835
	22,000	Tractor Supply Co.		1,734,040

				5,338,397

	Technology Hardware, Storage & Peripherals (2.6%):
	23,620	Apple, Inc.		2,607,176

	Textiles, Apparel & Luxury Goods (4.0%):
	22,390	Nike, Inc., Class B		2,152,799
	26,260	V.F. Corp.		1,966,874

				4,119,673

	Trading Companies & Distributors (1.7%):
	6,710	W.W. Grainger, Inc.		1,710,312

	Total Common Stocks (Cost $89,618,093)			101,449,582

	Securities Held as Collateral for Securities on Loan (8.4%):
$	8,569,423	Allianz Variable Insurance Products Securities Lending Collateral Trust(b)		8,569,423

	Total Securities Held as Collateral for Securities on Loan (Cost $8,569,423)			8,569,423

	Unaffiliated Investment Company (0.4%):
	403,642	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(a)		403,642

	Total Unaffiliated Investment Company (Cost $403,642)			403,642

	Total Investment Securities (Cost $98,591,158)(b) — 108.5%			110,422,647
	Net other assets (liabilities) — (8.5)%			(8,682,976	)

	Net Assets — 100.0%		$	101,739,671

Statement of Assets and Liabilities

December 31, 2014


Assets:
Investment securities, at cost	$	98,591,158

Investment securities, at value*	$	110,422,647
Interest and dividends receivable		69,035
Prepaid expenses		893

Total Assets		110,492,575

Liabilities:
Payable for investments purchased		64,020
Payable for capital shares redeemed		27,806
Payable for collateral received on loaned securities		8,569,423
Manager fees payable		60,647
Administration fees payable		2,430
Distribution fees payable		21,659
Custodian fees payable		2,288
Administrative and compliance services fees payable		430
Trustee fees payable		9
Other accrued liabilities		4,192

Total Liabilities		8,752,904

Net Assets	$	101,739,671

Net Assets Consist of:
Capital	$	90,079,559
Accumulated net investment income/(loss)		68,566
Accumulated net realized gains/(losses) from investment transactions		(239,943	)
Net unrealized appreciation/(depreciation) on investments		11,831,489

Net Assets	$	101,739,671

Shares of beneficial interest (unlimited number of shares authorized, no par value)		9,027,024
Net Asset Value (offering and redemption price per share)		11.27

*	Includes securities on loan of $8,380,697.

Statement of Operations

For the Period Ended December 31, 2014(a)


Investment Income:
Dividends	$	677,168
Income from securities lending		5,205

Total Investment Income		682,373

Expenses:
Manager fees		545,733
Administration fees		5,820
Distribution fees		170,541
Custodian fees		5,295
Administrative and compliance services fees		925
Trustee fees		3,799
Professional fees		5,712
Shareholder reports		1,499
Other expenses		1,391

Total expenses before reductions		740,715
Less expenses voluntarily waived/reimbursed by the Manager		(68,216	)

Net expenses		672,499

Net Investment Income/(Loss)		9,874

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		(239,943	)
Change in net unrealized appreciation/depreciation on investments		11,831,489

Net Realized/Unrealized Gains/(Losses) on Investments		11,591,546

Change in Net Assets Resulting From Operations	$	11,601,420

(a)	For the period April 28, 2014 (commencement of operations) to December 31, 2014

(Selected data for a share of beneficial interest outstanding throughout the periods indicated)

The Allianz Variable Insurance Products Trust (the “Trust”) was organized as a Delaware statutory trust on July 13, 1999. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 31 separate investment portfolios (individually a “Fund,” collectively, the “Funds”), of which one is included in this report, the AZL Wells Fargo Large Cap Growth Fund (the “Fund”), and 30 are presented in separate reports.

Cash collateral received in connection with securities lending is invested in the Allianz Variable Insurance Products Securities Lending Collateral Trust (the “Securities Lending Collateral Trust”) managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The Securities Lending Collateral Trust invests in short-term investments that have a remaining maturity of 397 days or less as calculated in accordance with Rule 2a-7 under the 1940 Act. The Fund pays the Securities Lending Agent 9% of the gross revenues received from securities lending activities and keeps 91%. The Fund paid securities lending fees of $514 during the year ended December 31, 2014. These fees have been netted against “Income from securities lending” on the Statement of Operations.

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a portfolio management agreement with Wells Capital Management Incorporated (“Wells Capital”), Wells Capital provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, other expenditures that are capitalized in accordance with U.S. GAAP and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, based on the daily net assets of the Fund, through April 30, 2016.

For the year ended December 31, 2014, the annual rate due to the Manager and the annual expense limit were as follows:

Citi Fund Services Ohio, Inc. (“Citi” or the “Administrator”), a wholly owned subsidiary of Citigroup, Inc., with which an officer of the Trust is affiliated, serves as the Trust’s administrator, transfer agent, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. In addition, the Administrator is entitled to annual account fees related to the transfer agency system, an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair value services, and a Trust-wide annual fee for providing infrastructure and support in implementing the written policies and procedures comprising the Fund’s compliance program. Fees payable to the Administrator are subject to certain reductions associated with services provided to new funds. Beginning January 1, 2015, these reductions are no longer applicable to new funds. The Administrator is also reimbursed for certain expenses incurred. The total expenses incurred by the Fund for these services are reflected on the Statement of Operations as “Administration fees.”

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is a partner. During the year ended December 31, 2014, $742 was paid from the Fund relating to these fees and expenses.

For the period ended December 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

The following is a summary of the valuation inputs used as of December 31, 2014 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2014, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost for federal income tax purposes at December 31, 2014 is $98,598,410. The gross unrealized appreciation/ (depreciation) on a tax basis is as follows:

As of December 31, 2014, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL Wells Fargo Large Cap Growth Fund (the “Fund”) of the Allianz Variable Insurance Products Trust, including the schedule of portfolio investments, as of December 31, 2014, and the related statements of operations and changes in net assets, and the financial highlights for the period April 28, 2014 to December 31, 2014. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial highlights based on our audit.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2014, the results of its operations, the changes in its net assets, and the financial highlights for the period April 28, 2014 to December 31, 2014, in conformity with U.S. generally accepted accounting principles.


Name, Address, and Age	Positions Held with VIP Trust and FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for VIP Trust and FOF Trust	Other Directorships Held Outside the AZL Fund Complex
Peter R. Burnim, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to 2012; Chairman,Northstar Group Holdings Ltd.Bermuda, 2011 to present; Expert Witness, Massachusetts Department of Revenue, 2011 to 2012; Executive Vice President, Northstar Companies, 2002 to 2005; Senior Officer, Citibank and Citicorp for over 25 years.	43	Argus Group Holdings; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; and Bank of Bermuda NY
Peggy L. Ettestad, Age 57 5701 Golden Hills Drive Minneapolis, MN 55416	Lead Independent Trustee	Since 10/14 (Trustee since 2/07)	Managing Director, Red Canoe Management Consulting LLC, 2008 to present; Senior Managing Director, Residential Capital LLC, 2003 to 2008; Chief Operations Officer, Transamerica Reinsurance 2002 to 2003.	43	Luther College
Roger Gelfenbien, Age 71 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999.	43	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 59 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Connecticut Innovations, Inc., 2012 to present; General Partner, Fairview Capital, L.P., 1994 to 2012.	43	Connecticut Technology Council and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 66 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Consultant to Lifetouch National School Studios; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2013; Vice President/General Manager of Jostens, Inc., 2002 to 2006; Senior Vice President of Fortis Group, 1997 to 2002.	43	None
Peter W. McClean, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; President and CEO of Measurisk, LLC, 2001 to 2003; Chief Risk Management Officer at Bank Of Bermuda Ltd., 1996 to 2001.	43	PNMAC Opportunity Fund; Northeast Bank; and FHI
Arthur C. Reeds III, Age 70 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Senior Investment Officer, Hartford Foundation for Public Giving, 2000 to 2003; Chairman, Chief Executive and President of Conning Corp., 1999 to 2000; Investment Consultant 1997 to 1999.	43	Connecticut Water Service, Inc.

(a) The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit.

(b) During the period covered by the report, with respect to the registrant’s code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

3(a)(1) The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

3(a)(2) The audit committee financial expert is Arthur C. Reeds III, who is “independent” for purposes of this Item 3 of

Audit-related fees for both years relate to the review of the annual registration statement filed with the Securities and Exchange Commission (“SEC”). Audit-related fees for 2013 also include the consent for issuance of one Form N-14 filing.

Tax fees for both years relate to the preparation of the Funds’ federal and state income tax returns, federal excise tax return review and review of capital gain and income distribution calculations.

4(e)(1) The Audit Committee (“Committee”) of the Registrant is responsible for pre-approving all audit and non-audit services performed by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. Before the Registrant engages the independent auditor to render a service, the engagement must be

either specifically approved by the Committee or entered into pursuant to the pre-approval policy. The Committee may delegate preapproval authority to one or more of its members. The member or members to whom such authority is delegated shall report any pre-approval decisions to the Committee at its next scheduled meeting. The Committee may not delegate to management the Committee’s responsibilities to pre-approve services performed by the independent auditor. The Committee has delegated pre-approval authority to its Chairman for any services not exceeding $10,000.

4(e)(2) During the previous two fiscal years, the Registrant did not receive any non-audit services pursuant to a waiver from the audit committee approval or pre-approval requirement under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(a) The Schedule of Investments as of the close of the reporting period are included as part of the report to shareholders filed under Item 1 of the Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(a)(1) The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Beginning Account Value 7/1/14			Ending Account Value 12/31/14			Expenses Paid During Period 7/1/14 - 12/31/14*			Annualized Expense Ratio During Period 7/1/14 - 12/31/14
AZL BlackRock Capital Appreciation Fund		$	1,000.00		$	1,083.10		$	5.25		1.00	%


	Beginning Account Value 7/1/14			Ending Account Value 12/31/14			Expenses Paid During Period 7/1/14 - 12/31/14*			Annualized Expense Ratio During Period 7/1/14 - 12/31/14
AZL BlackRock Capital Appreciation Fund		$	1,000.00		$	1,020.16		$	5.09		1.00	%


	AZL BlackRock Capital Appreciation Fund
	For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Change In Net Assets:
Operations:
Net investment income/(loss)		$	(2,079,421)		$	(1,357,741)
Net realized gains/(losses) on investment transactions			116,923,544			128,641,753
Change in unrealized appreciation/depreciation on investments			(67,502,717)			55,425,199

Change in net assets resulting from operations			47,341,406			182,709,211

Dividends to Shareholders:
From net investment income			—			(3,318,026)
From net realized gains			(59,367,203)			—

Change in net assets resulting from dividends to shareholders			(59,367,203)			(3,318,026)

Capital Transactions:
Proceeds from shares issued			15,715,895			39,281,631
Proceeds from dividends reinvested			59,367,203			3,318,026
Value of shares redeemed			(182,044,463)			(68,680,901)

Change in net assets resulting from capital transactions			(106,961,365)			(26,081,244)

Change in net assets			(118,987,162)			153,309,941
Net Assets:
Beginning of period			711,132,997			557,823,056

End of period		$	592,145,835		$	711,132,997

Accumulated net investment income/(loss)		$	—		$	—

Share Transactions:
Shares issued			850,880			2,445,729
Dividends reinvested			3,348,404			198,803
Shares redeemed			(9,905,890)			(4,183,127)

Change in shares			(5,706,606)			(1,538,595)


	Year Ended December 31,
	2014				2013				2012				2011				2010
Net Asset Value, Beginning of Period		$	18.97			$	14.29			$	12.57			$	13.83			$	11.73

Investment Activities:
Net Investment Income/(Loss)			(0.07	)			(0.03	)			0.09				0.01				(0.01	)
Net Realized and Unrealized Gains/(Losses) on Investments			1.70				4.80				1.64				(1.27	)			2.24

Total from Investment Activities			1.63				4.77				1.73				(1.26	)			2.23

Dividends to Shareholders From:
Net Investment Income			—				(0.09	)			(0.01	)			—				(0.01	)
Net Realized Gains			(1.97	)			—				—				—				(0.12	)
Return of Capital			—				—				—				—				—	(a)

Total Dividends			(1.97	)			(0.09	)			(0.01	)			—				(0.13	)

Net Asset Value, End of Period		$	18.63			$	18.97			$	14.29			$	12.57			$	13.83

Total Return(b)			9.11	%			33.44	%			13.73	%			(9.11	)%			19.20	%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	592,146			$	711,133			$	557,823			$	477,619			$	562,801
Net Investment Income/(Loss)			(0.34	)%			(0.22	)%			0.62	%			0.05	%			(0.06	)%
Expenses Before Reductions(c)			1.10	%			1.11	%			1.11	%			1.13	%			1.13	%
Expenses Net of Reductions			1.00	%			1.00	%			1.01	%			1.02	%			1.00	%
Expenses Net of Reductions, Excluding Expenses Paid Indirectly(d)			1.00	%			1.01	%			1.01	%			1.02	%			1.00	%
Portfolio Turnover Rate(e)			101	%			161	%			62	%			81	%			80	%(f)


	Purchases			Sales
AZL BlackRock Capital Appreciation Fund		$	622,173,911		$	791,688,595


Investments	Percent of Net Assets
Information Technology		32.5	%
Consumer Discretionary		25.0
Health Care		22.7
Industrials		7.2
Financials		4.8
Energy		3.9
Consumer Staples		2.9
Materials		0.6

Total Common Stocks		99.6
Securities Held as Collateral for Securities on Loan		22.6
Money Market		0.2

Total Investment Securities		122.4
Net other assets (liabilities)		(22.4	)

Net Assets		100.0	%


	Annual Rate*			Annual Expense Limit
AZL BlackRock Capital Appreciation Fund		0.80	%		1.20	%


Investment Securities:	Level 1			Level 2			Level 3			Total

Common Stocks
Oil, Gas & Consumable Fuels		$	16,329,409		$	—		$	6,748,180		$	23,077,589
All Other Common Stocks+			566,578,087			—			—			566,578,087
Securities Held as Collateral for Securities on Loan			—			133,898,895			—			133,898,895
Unaffiliated Investment Company			953,298			—			—			953,298

Total Investment Securities		$	583,860,794		$	133,898,895		$	6,748,180		$	724,507,869


Security	Acquisition Date(a)		Acquisition Cost			Shares		Fair Value			Percentage of Net Assets

Alibaba Group Holding, Ltd.		4/25/14		$	7,405,812		108,909		$	11,320,001		1.91	%
Palantir Technologies, Inc.		2/7/14			5,157,898		841,419			6,748,180		1.14	%


Unrealized appreciation	$	108,266,675
Unrealized depreciation		(9,586,396	)

Net unrealized appreciation/(depreciation)	$	98,680,279


	Ordinary Income			Net Long-Term Capital Gains			Total Distributions(a)
AZL BlackRock Capital Appreciation Fund		$	—		$	59,367,203		$	59,367,203


	Undistributed Ordinary Income			Undistributed Long-Term Capital Gains			Accumulated Capital and Other Losses			Unrealized Appreciation/ (Depreciation)(a)			Total Accumulated Earnings/ (Deficit)
AZL BlackRock Capital Appreciation Fund		$	6,968,622		$	108,868,405		$	—		$	98,680,240		$	214,517,267


The Allianz VIP Funds are distributed by Allianz Life Financial Services, LLC.
These Funds are not FDIC Insured.		ANNRPT1214 2/15


	AZL BlackRock Global Allocation Fund
	For the Year Ended December 31, 2014				For the Year Ended December 31, 2013
Change In Net Assets:
Operations:
Net investment income/(loss)		$	8,314,781			$	3,428,686
Net realized gains/(losses) on investment transactions			39,803,587				15,537,052
Change in unrealized appreciation/depreciation on investments			(34,975,914	)			43,890,720

Change in net assets resulting from operations			13,142,454				62,856,458

Dividends to Shareholders:
From net investment income			(4,674,726	)			(48,119	)
From net realized gains			(15,060,387	)			(976,480	)

Change in net assets resulting from dividends to shareholders			(19,735,113	)			(1,024,599	)

Capital Transactions:
Proceeds from shares issued			125,520,079				276,183,753
Proceeds from dividends reinvested			19,735,113				1,024,599
Value of shares redeemed			(7,607,923	)			(1,414,434	)

Change in net assets resulting from capital transactions			137,647,269				275,793,918

Change in net assets			131,054,610				337,625,777
Net Assets:
Beginning of period			646,688,772				309,062,995

End of period		$	777,743,382			$	646,688,772

Accumulated net investment income/(loss)		$	13,218,014			$	3,393,450

Share Transactions:
Shares issued			10,340,877				24,476,115
Dividends reinvested			1,622,953				89,877
Shares redeemed			(629,704	)			(120,241	)

Change in shares			11,334,126				24,445,751


	Year Ended December 31, 2014				Year Ended December 31, 2013				January 10, 2012 to December 31, 2012 (a)
Net Asset Value, Beginning of Period		$	12.05			$	10.58			$	10.00

Investment Activities:
Net Investment Income/(Loss)			0.12				0.07				0.13
Net Realized and Unrealized Gains/(Losses) on Investments			0.12				1.42				0.58

Total from Investment Activities			0.24				1.49				0.71

Dividends to Shareholders From:
Net Investment Income			(0.08	)			—	(b)			(0.13	)
Realized Gains			(0.24	)			(0.02	)			—

Total Dividends			(0.32	)			(0.02	)			(0.13	)

Net Asset Value, End of Period		$	11.97			$	12.05			$	10.58

Total Return(c)			1.95	%			14.11	%			7.13	%(d)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	777,743			$	646,689			$	309,063
Net Investment Income/(Loss)(e)			1.14	%			0.72	%			1.09	%
Expenses Before Reductions(e)(f)			1.11	%			1.14	%			1.15	%
Expenses Net of Reductions(e)			1.11	%			1.14	%			1.14	%
Expenses Net of Reductions, Excluding Expenses Paid Indirectly(e)(g)			1.11	%			1.14	%			1.15	%
Portfolio Turnover Rate			74	%			50	%			74	%(d)


	Number of Contracts			Notional Amount(a)			Cost
Options outstanding at December 31, 2013		2,988,566			1,029,171			$	4,217,942
Options purchased		7,723,772			3,262,792				26,175,134
Options exercised		(66,756	)		—				(149,158	)
Options expired		(2,160,735	)		—				(4,306,881	)
Options closed		(3,935,449	)		(627,294	)			(17,193,407	)

Options outstanding at December 31, 2014		4,549,398			3,664,669			$	8,743,630


	Number of Contracts			Notional Amount(a)			Premiums Received
Options outstanding at December 31, 2013		(58,831	)		(5,014	)		$	(1,043,812	)
Options written		(8,905,644	)		(358,936	)			(12,611,314	)
Options exercised		51,431			—				279,644
Options expired		596,561			—				1,199,447
Options closed		3,565,005			360,850				9,152,719

Options outstanding at December 31, 2014		(4,751,478	)		(3,100	)		$	(3,023,316	)


	Realized Gain (Loss) on Derivatives Recognized as a Result from Operations															Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result from Operations
	Net Realized Gains (Losses) on Futures Contracts				Net Realized Gains (Losses) on Swap Agreements				Net Realized Gains (Losses) on Option Contracts				Net Realized Gains (Losses) on Forward Currency Contracts			Change in Net Unrealized Appreciation/Depreciation on Investments
Equity Risk Exposure		$	(3,388,486	)		$	—			$	(80,344	)		$	—		$	2,365,837
Credit Risk Exposure			—				(19,079	)			—				—			325,968
Interest Rate Risk Exposure			—				59,698				(702,135	)			—			885,573
Foreign Exchange Rate Risk Exposure			—				—				(248,653	)			8,777,270			2,534,352


	Assets				Liabilities
Derivative Financial Instruments:
Futures contracts		$	165,934			$	10,279
Forward currency contracts			3,899,788				249,659
Option contracts*			10,448,717				4,175,267
Swap agreements			476,279				4,730

Total derivative assets and liabilities in the Consolidated Statement of Assets and Liabilities			14,990,718				4,439,935
Derivatives not subject to a master netting agreement or similar agreement (“MNA”)			(214,202	)			(229,880	)

Total assets and liabilities subject to a MNA		$	14,776,516			$	4,210,055


Counterparty	Derivative Assets Subject to a MNA by Counterparty			Derivatives Available for Offset				Non-cash Collateral Received*			Cash Collateral Received*				Net Amount of Derivative Assets
Bank of America		$	1,276,412		$	(404,253	)		$	—		$	(570,000	)		$	302,159
Barclays Bank			1,189,109			(634,793	)			—			(550,000	)			4,316
BNP Paribas			865,006			(71,989	)			—			—				793,017
Citibank			2,266,204			(1,166,656	)			—			(1,099,548	)			—
Credit Suisse First Boston			1,092,937			(75,363	)			—			—				1,017,574
Deutsche Bank			2,596,858			(298,597	)			—			(1,400,000	)			898,261
Goldman Sachs			2,309,100			(950,114	)			—			(1,300,000	)			58,986
HSBC			364,005			(23,899	)			—			—				340,106
JPMorgan Chase			938,252			(79,562	)			—			—				858,690
Morgan Stanley			1,278,886			(310,148	)			—			(520,000	)			448,738
UBS Warburg			599,747			(194,681	)			—			—				405,066

Total		$	14,776,516		$	(4,210,055	)		$	—		$	(5,439,548	)		$	5,126,913


Counterparty	Derivative Liabilities Subject to a MNA by Counterparty			Derivatives Available for Offset				Non-cash Collateral Pledged*			Cash Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America		$	404,253		$	(404,253	)		$	—		$	—		$	—
Barclays Bank			634,793			(634,793	)			—			—			—
BNP Paribas			71,989			(71,989	)			—			—			—
Citibank			1,166,656			(1,166,656	)			—			—			—
Credit Suisse First Boston			75,363			(75,363	)			—			—			—
Deutsche Bank			298,597			(298,597	)			—			—			—
Goldman Sachs			950,114			(950,114	)			—			—			—
HSBC			23,899			(23,899	)			—			—			—
JPMorgan Chase			79,562			(79,562	)			—			—			—
Morgan Stanley			310,148			(310,148	)			—			—			—
UBS Warburg			194,681			(194,681	)			—			—			—

Total		$	4,210,055		$	(4,210,055	)		$	—		$	—		$	—


	Annual Rate			Annual Expense Limit
AZL BlackRock Global Allocation Fund		0.75	%		1.19	%


Unrealized appreciation	$	61,235,992
Unrealized depreciation		(38,735,056	)

Net unrealized appreciation/(depreciation)	$	22,500,936


The Allianz VIP Fund of Funds are distributed by Allianz Life Financial Services, LLC.
These Funds are not FDIC Insured.		ANNRPT1214 2/15


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Affiliated Investment Company (2.0%):
	6,976,164	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(a)	$	6,976,164

	Total Affiliated Investment Company (Cost $6,976,164)			6,976,164

	Total Investment Securities (Cost $244,442,802)(b) — 100.1%			341,807,278
	Net other assets (liabilities) — (0.1)%			(328,670	)

	Net Assets — 100.0%		$	341,478,608


	AZL Dreyfus Research Growth Fund
	For the Year Ended December 31, 2014				For the Year Ended December 31, 2013
Change in Net Assets:
Operations:
Net investment income/(loss)		$	599,522			$	643,804
Net realized gains/(losses) on investment transactions			42,895,777				29,632,495
Change in unrealized appreciation/depreciation on investments			(15,932,685	)			68,018,427

Change in net assets resulting from operations			27,562,614				98,294,726

Dividends to Shareholders:
From net investment income			(536,742	)			(1,345,946	)
From net realized gains			(17,640,893	)			—

Change in net assets resulting from dividends to shareholders			(18,177,635	)			(1,345,946	)

Capital Transactions:
Proceeds from shares issued			16,458,753				20,353,105
Proceeds from dividends reinvested			18,177,635				1,345,946
Value of shares redeemed			(63,316,636	)			(39,532,733	)

Change in net assets resulting from capital transactions			(28,680,248	)			(17,833,682	)

Change in net assets			(19,295,269	)			79,115,098
Net Assets:
Beginning of period			360,773,877				281,658,779

End of period		$	341,478,608			$	360,773,877

Accumulated net investment income/(loss)		$	599,506			$	643,780

Share Transactions:
Shares issued			1,097,285				1,617,698
Dividends reinvested			1,238,259				102,353
Shares redeemed			(4,252,112	)			(3,128,891	)

Change in shares			(1,916,568	)			(1,408,840	)


	Annual Rate			Annual Expense Limit
AZL Dreyfus Research Growth Fund		1.00	%		1.20	%


Unrealized appreciation	$	98,006,396
Unrealized depreciation		(865,532	)

Net unrealized appreciation/(depreciation)	$	97,140,864


Name effective on April 27, 2015		Previous Name
AZL^® Boston Company Research Growth Fund		AZL^® Dreyfus Research Growth Fund


Name, Address, and Age	Positions Held with VIP and VIP FOF Trust	Term of Office(2)/ Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian Muench, Age 44 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present; Vice President, Allianz Investment Management LLC from December 2005 to November 2010.
Michael Radmer, Age 69 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 2/02	Partner, Dorsey and Whitney LLP since 1976.
Steve Rudden, Age 45 Citi Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 6/14	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc., April 2011 to present; Vice President, JPMorgan, April 2006 to April 2010.
Chris R. Pheiffer, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-Money Laundering Compliance Officer	Since 2/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.


Investments	Percent of Net Assets
U.S. Government Agency Mortgages		36.0	%
U.S. Treasury Obligation		24.1
Corporate Bonds		18.0
Securities Held as Collateral for Securities on Loan		17.4
Asset Backed Securities		8.9
Yankee Dollars		8.2
Collateralized Mortgage Obligations		6.6
Money Market		5.4
Municipal Bonds		1.0
Convertible Preferred Stock		0.1

Total Investment Securities		125.7
Net other assets (liabilities)		(25.7	)

Net Assets		100.0	%


	AZL Enhanced Bond Index Fund
	For the Year Ended December 31, 2014				For the Year Ended December 31, 2013
Change in Net Assets:
Operations:
Net investment income/(loss)		$	13,049,920			$	7,243,910
Net realized gains/(losses) on investment transactions			17,046,934				(6,611,504	)
Change in unrealized appreciation/depreciation on investments			15,133,180				(14,704,971	)

Change in net assets resulting from operations			45,230,034				(14,072,565	)

Dividends to Shareholders:
From net investment income			(8,934,761	)			(7,329,474	)
From net realized gains			—				(7,727,147	)

Change in net assets resulting from dividends to shareholders			(8,934,761	)			(15,056,621	)

Capital Transactions:
Proceeds from shares issued			188,396,560				317,585,411
Proceeds from dividends reinvested			8,934,761				15,056,621
Value of shares redeemed			(73,114,167	)			(18,147,991	)

Change in net assets resulting from capital transactions			124,217,154				314,494,041

Change in net assets			160,512,427				285,364,855
Net Assets:
Beginning of period			788,913,336				503,548,481

End of period		$	949,425,763			$	788,913,336

Accumulated net investment income/(loss)		$	14,170,123			$	8,936,842

Share Transactions:
Shares issued			17,171,705				29,111,948
Dividends reinvested			818,202				1,427,168
Shares redeemed			(6,635,017	)			(1,679,500	)

Change in shares			11,354,890				28,859,616


Primary Risk Exposure	Location of Gains/(Losses) on Derivatives Recognized in Income	Realized Gains/(Losses) on Derivatives Recognized in Income		Change in Net Unrealized Appreciation/ Depreciation on Derivatives Recognized in Income

Foreign Currency Risk Exposure

Foreign Currency Contracts	Net realized gains/(losses) on forward currency contracts/ Change in unrealized appreciation/depreciation on investments	$	20,700	$	33,738

Currency Contracts	Net realized gains/(losses) on futures contracts/Change in unrealized appreciation/depreciation on investments		—		(119,919	)

Interest Rate Risk Exposure

Interest Rate Contracts	Net realized gains/(losses) on futures contracts/Change in unrealized appreciation/depreciation on investments		2,763,411		1,357,249


	Annual Rate			Annual Expense Limit
AZL Enhanced Bond Index Fund		0.35	%		0.70	%


Unrealized appreciation	$	12,935,691
Unrealized depreciation		(3,808,167	)

Net unrealized appreciation/(depreciation)	$	9,127,524