ALLIANZ VARIABLE INSURANCE PRODUCTS FUND OF FUNDS 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, 2015?

For the year ended December 31, 2015, the AZL^® Balanced Index Strategy Fund had a total return of 0.01%. That compared to a 1.38%, 0.55% and 1.12% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The AZL Balanced Index Strategy Fund is a fund of funds that pursues broad diversification across four equity sub-portfolios and one fixed income sub-portfolio. The four equity sub-portfolios pursue passive strategies that aim to achieve, before fees, returns similar to the S&P 500 Index, the S&P 400 Index², the S&P 600 Index³ and the MSCI EAFE Index⁴, which represents shares of large companies in developed foreign markets. The fixed income sub-portfolio is an enhanced bond index strategy that seeks to achieve a return that exceeds that of the Barclays U.S. Aggregate Bond Index. Generally, the Fund allocates 40% to 60% of its assets to the underlying equity index funds and between 40% and 60% to the underlying bond index fund.*

U.S. stock returns were fairly muted during the 12 months through December 31, 2015, with the S&P 500 gaining only 1.38%. Financial markets faced significant headwinds during the second half of the year, including the risk of slower global economic growth, the Federal Reserve’s move to normalize monetary policy by raising the federal funds target rate by 0.25%, the challenge corporate earnings faced in growing from already elevated levels, and liquidity and contagion worries in the high-yield bond sector. The U.S. labor market remained a bright spot during the year, with job creation and unemployment trending favorably and wage growth picking up. Industrial activity was challenged in 2015 as a strong U.S. dollar and weak global demand placed pressure on U.S. manufacturers.

Developed international equity markets lagged during the calendar year, with the MSCI EAFE declining 0.81% over this period. The euro declined significantly against the U.S. dollar, boosting European exports and creating a favorable environment for consumer-related stocks. Europe gained 5% in terms of local currency, however declined approximately 3% for U.S. dollar investors. Japanese equities were a bright spot in 2015, gaining approximately 9.6% in U.S. dollar terms.

Fixed income markets experienced modest gains, with the Barclays Aggregate Index gaining 0.55% in 2015. The yield on the 10-year Treasury⁵ note increased 10 basis points (0.10%) to finish the year at 2.27%. Corporate bond spreads widened during the year, resulting in a negative 0.68% return for the Barclays Corporate Index⁶ during the period.

The Fund underperformed the Composite in 2015 due to its exposure to small- and mid-cap stocks and international equities. The underlying fixed income fund lagged its benchmark during the period, detracting from relative performance.*

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, 2015.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

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.

⁴	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.

⁵

Barclays U.S. Treasury Index measures the performance of the public obligations of the U.S. Treasury with a remaining maturity of one year or more, are non-convertible and are denominated in U.S. dollars. Securities must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody’s, S&P, Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment grade.

⁶	Barclays U.S. Corporate Bond Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers. Investors cannot invest directly in an index.

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 consideration. 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 Permitted Underlying Funds that represent different classes in the Fund’s asset allocation.

Investment Concerns

The Fund invests in underlying funds, so its investment performance is directly related to the performance of those underlying funds. Before investing, investors should assess the risks associated with and types of investments made by each of the underlying funds in which the Fund invests.

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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.

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

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

The performance of the Fund is expected to be lower than that of the Indices 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

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, 2015


	1 Year			3 Year			5 Year			Since Inception (7/10/09)
AZL^® Balanced Index Strategy Fund		0.01	%		6.22	%		6.24	%		8.63	%
S&P 500 Index		1.38	%		15.13	%		12.57	%		16.34	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		3.25	%		3.94	%
Balanced Composite Index		1.12	%		8.25	%		8.09	%		10.31	%

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^® Balanced Index Strategy Fund		0.69	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.20% through April 30, 2017. Additional information pertaining to the December 31, 2015 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 Permitted Underlying Funds. 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 0.08%.

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 Standard & Poor’s 500 Index (“S&P 500”), the Barclays U.S. Aggregate Bond Index and the Balanced Composite Index (“Composite”). 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. The Composite is a blended index comprised of (50%) S&P 500 and (50%) Barclays U.S. Aggregate Bond Index. 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 Balanced Index Strategy 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

	Affiliated Investment Companies (99.9%):
	20,157,723	AZL Enhanced Bond Index Fund	$	217,300,256
	3,732,189	AZL International Index Fund		53,818,168
	1,518,878	AZL Mid Cap Index Fund		32,048,328
	7,882,536	AZL S&P 500 Index Fund, Class 2		112,168,493
	1,257,358	AZL Small Cap Stock Index Fund		16,961,754

	Total Affiliated Investment Companies (Cost $358,528,103)			432,296,999

	Unaffiliated Investment Company (0.0%):
	1,470	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(a)		1,470

	Total Unaffiliated Investment Company (Cost $1,470)			1,470

	Total Investment Securities (Cost $358,529,573)(b) — 99.9%			432,298,469
	Net other assets (liabilities) — 0.1%			237,256

	Net Assets — 100.0%		$	432,535,725

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	1,470
Investments in affiliates, at cost		358,528,103

Total Investment securities, at cost	$	358,529,573

Investments in non-affiliates, at value	$	1,470
Investments in affiliates, at value		432,296,999

Total Investment securities, at value	$	432,298,469
Cash		354,721
Receivable for capital shares issued		283,365

Total Assets		432,936,555

Liabilities:
Payable for affiliated investments purchased		354,720
Payable for capital shares redeemed		6,897
Manager fees payable		18,389
Administration fees payable		4,622
Custodian fees payable		854
Administrative and compliance services fees payable		1,414
Trustee fees payable		1,040
Other accrued liabilities		12,894

Total Liabilities		400,830

Net Assets	$	432,535,725

Net Assets Consist of:
Capital	$	340,107,847
Accumulated net investment income/(loss)		11,827,596
Accumulated net realized gains/(losses) from investment transactions		6,831,386
Net unrealized appreciation/(depreciation) on investments		73,768,896

Net Assets	$	432,535,725

Shares of beneficial interest (unlimited number of shares authorized, no par value)		28,017,235
Net Asset Value (offering and redemption price per share)	$	15.44

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	9,844,580

Total Investment Income		9,844,580

Expenses:
Manager fees		221,553
Administration fees		53,327
Custodian fees		2,042
Administrative and compliance services fees		6,612
Trustee fees		22,961
Professional fees		18,461
Shareholder reports		12,062
Other expenses		6,769

Total expenses		343,787

Net Investment Income/(Loss)		9,500,793

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		3,565,591
Net realized gains distributions from affiliated underlying funds		6,358,942
Change in net unrealized appreciation/depreciation on investments		(19,559,324	)

Net Realized/Unrealized Gains/(Losses) on Investments		(9,634,791	)

Change in Net Assets Resulting From Operations	$	(133,998	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL Balanced Index Strategy Fund (the “Fund”), and 12 are presented in separate reports.

The Fund is a “fund of funds,” which means that the Fund invests primarily in other mutual funds. Underlying Funds invest in stock, bonds, and other securities and reflect varying amounts of potential investment risk and reward. The Underlying Funds record their investments at fair value. Periodically, the Fund will adjust its asset allocation as it seeks to achieve its investment objective.

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 offered through the separate accounts of participating insurance companies. Currently, the Fund only offers its shares to separate accounts of Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York, affiliates of the Trust and the Manager, as defined below.

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 that 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.

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.

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.

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.

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 Trust.

The Manager provides investment advisory and management services for the Fund. 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, acquired fund fees and expenses, 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, 2017. Expenses incurred for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.”

For the year ended December 31, 2015, 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, 2015, 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 period can be found on the Statement of Operations. During year ended December 31, 2015, there were no voluntary waivers.

The Manager or an affiliate of the Manager serves as the investment adviser of certain underlying funds in which the Fund invests. At December 31, 2015, these underlying funds are noted as Affiliated Investment Companies in the Fund’s Schedule of Portfolio Investments. The Manager or an affiliate of the Manager is paid a separate fee from the underlying funds for such services. A summary of the Fund’s investments in affiliated investment companies for the year ended December 31, 2015 is as follows:

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.”

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 and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a fee, accrued daily and paid monthly. Prior to April 1, 2015, Citi also served as transfer agent for the Trust under the same agreement. The Administrator was 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.” Effective April 1, 2015, the Trust’s transfer agent became SunGard Investor Services, LLC.

Allianz Life Financial Services, LLC (“ALFS”), an affiliate of the Manager, serves as distributor of the Fund and receives a Trust-wide annual fee of $7,500, paid by the Manager from its profits and not by the Trust, for recordkeeping and reporting services.

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is Senior Counsel. During the year ended December 31, 2015, $4,299 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 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 Trust in proportion to the assets under management of each trust. During the year ended December 31, 2015, actual Trustee compensation was $1,165,450 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.

Investments in other investment companies are valued at their published net asset value (“NAV”). 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). The investments utilizing Level 1 valuations represent investments in open-end investment companies.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Derivatives Risk: The Fund may invest directly or through affiliated or unaffiliated mutual funds or unregistered investment pools in derivative instruments such as futures, options, and options on futures. 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 other party to a derivatives contract could default. During the year ended December 31, 2015, the Fund did not directly invest in derivatives.

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, 2015 is $359,674,781. 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, 2015 were as follows:

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

As of December 31, 2015, 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 Balanced Index Strategy Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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, 2015, by correspondence with the custodian and transfer agents of the underlying funds. 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 AZL Balanced Index Strategy Fund as of December 31, 2015, 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.

For the year ended December 31, 2015, 36.18% 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, 2015, the Fund declared net long-term capital gain distributions of $8,184,855.

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 Fund of Funds 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.

Subject to the general supervision of the Board of Trustees and in accordance with each Fund’s investment objectives and restrictions, investment advisory services are provided to the Funds by Allianz Investment Management LLC (the “Manager”). The Manager manages each Fund pursuant to an investment management agreement (the “Management Agreement”) with the Trust in respect of each such Fund. The Management Agreement provides that the Manager, subject to the supervision and approval of the Board of Trustees, is responsible for the management of each Fund. For management services, each Fund pays the Manager an investment advisory fee based upon each Fund’s average daily net assets. The Manager has contractually agreed to limit the expenses of each Fund by reimbursing each Fund if and when total Fund operating expenses exceed certain amounts until at least May 1, 2017.

Wilshire Funds Management (“Wilshire”) serves as a consultant to the Manager in preparing statistical and other factual information for use in the creation and maintenance of the asset allocation models for the Fusion Funds (the AZL MVP Fusion Conservative, Balanced, Moderate and Growth Funds), pursuant to an agreement between the Manager and Wilshire. Wilshire serves as a consultant to the Manager with respect to selecting the Fusion Permitted Underlying Investments and the Fund’s asset allocations among the Permitted Underlying Investments. The Manager, not any Fund, pays a consultant fee to Wilshire. Wilshire began serving in its capacity as a consultant beginning January 1, 2010.

In reviewing the services provided by the Manager and the terms of the 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.

As required by the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board has reviewed and approved the Management Agreement with the Manager. The Board’s decision to approve this contract reflects the exercise of its business judgment on whether to approve new arrangements and continue the existing arrangements. During its review of the contract, the Board considered many factors, among the most material of which are: the Funds’ investment objectives, the Manager’s management philosophy, personnel, processes and investment performance, including its compliance history and the adequacy of its 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 considered the compensation and benefits received by the Manager. This includes fees received for services provided to a Fund by employees of the Manager or of affiliates of the Manager and research services received by the Manager 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 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 Underlying Funds 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 the Manager’s compensation: the nature and quality of the services provided by the Manager, including the performance of the funds; the Manager’s cost of providing the services; the extent to which the Manager may realize “economies of scale” as the funds grow larger; any indirect benefits that may accrue to the Manager and its affiliates as a result of the Manager’s relationship with the funds; performance and expenses of comparable funds; the profitability to the Manager from acting as adviser to the funds; and the extent which the independent Board members are fully informed about all facts bearing on the Manager’s services and fees. The Trust’s Board is aware of these factors and took them into account in its review of the Management Agreement for the Funds.

The Board considered and weighed these circumstances in light of its experience in governing the Trust, 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 Manager. 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 the Management Agreement is informed by reports covering such matters as: the Manager’s investment philosophy, personnel and processes, and the Fund’s investment performance (in absolute terms as well as in relationship to its benchmark). In connection with comparing the performance of each Fund versus its benchmark, the Board receives reports on the extent to which the Fund’s performance may be attributed to various applicable factors, such as asset class allocation decisions and volatility management strategies, the performance of the Underlying Funds, rebalancing decisions, and the impact of cash positions and Fund fees and expenses. The Board also receives reports on the Funds’ expenses (including the advisory fee itself and the overall expense structure of the Funds, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature and extent of the advisory and other services provided to the Fund by the Manager and its 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 the Manager are responding to them.

The Board also receives financial information about the Manager, including reports on the compensation and benefits the Manager derives from its relationships with the Funds. These reports cover not only the fees under the Management Agreement, but also fees, if any, received for providing other services to the Funds. The reports also discuss any indirect or “fall out” benefits the Manager or its affiliates may derive from its relationship with the Funds.

The Management Agreement was most recently considered at Board of Trustees meetings held in the fall of 2015. Information relevant to the approval of such Agreement was considered at a telephonic Board of Trustees meeting on October 14, 2015, and at an “in person” Board of Trustees meeting held October 20, 2015. The Agreement was approved at the Board meeting of October 20, 2015. At such meeting the Board also approved an Expense Limitation Agreement between the Manager and the Trust for the period ending April 30, 2017. 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 Agreement 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 Agreement, in respect of each Fund, the Trustees considered all factors they believed relevant. The Board based its decision to approve the Management Agreement 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 each 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 the investment adviser and the approval of the advisory fee. 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. The Trustees noted that the Manager, subject to the control of the Board of Trustees, administers each Fund’s business and other affairs. The Trustees noted that the Manager also 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 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 is responsible for maintaining and monitoring its own compliance program, and this compliance program has been 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 was 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 Management Agreement.

(2) The investment performance of the Fund and the Manager. In connection with the fall 2015 contract review process, Trustees received extensive information on the performance results of each of the Funds. This included, for example, performance information on absolute total return, performance versus the appropriate benchmark(s), the contribution to performance of the Manager’s asset class allocation decisions and volatility management strategies (the volatility management strategy was modified to incorporate a volatility cap in the second quarter of 2013), the performance of the Underlying Funds, and the impact on performance of rebalancing decisions, cash and Fund fees. This included Lipper performance information on all of the Funds for the previous quarter, and previous one, three and five year periods, to the extent the Funds were in existence for such periods. For example, in connection with the Board of Trustees meeting held October 20, 2015, the Manager reported that for the three year period ended June 30, 2015, for the 11 Funds for which three year performance information was available, five Funds were in the top 40%, four Funds were in the middle 20% and two Funds were in the bottom 20%. For the 12 Funds for which one year performance information was available, for the one year period ended June 30, 2015, seven Funds were in the top 40%, one Fund was in the middle 20%, and two Funds were in the bottom 40%. The Manager also reported that for the six Funds for which five year performance information was available, for the five year period ended June 30, 2015, two were in the top 40%, one was in the middle 20%, and three were in the bottom 40%.

At the Board of Trustees meeting held October 20, 2015 the Manager reported upon the performance of the MVP Funds compared to custom managed volatility peer groups. For the nine Funds for which three year performance information was available, for the three year period ended June 30, 2015, seven Funds were in the top 40%, and two Funds were in the middle 20%. For the 10 Funds for which one year performance was available, for the one year period ended June 30, 2015, seven Funds were in the top 40%, one was in the middle 20%, and two were in the bottom 40%.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

(3) The costs of services to be provided and profits to be realized by the Manager and its affiliates from the relationship with the Funds. The Board considered that the Manager receives an advisory fee from each of the Funds. The Manager reported that for the four MVP Fusion Funds the advisory fee paid put these Funds in the 37th percentile of the customized peer group. The Manager reported that for three Index Strategy Funds the advisory fee paid put them in the 32nd percentile (or lower) of the customized peer group. The Manager reported that for the AZL MVP BlackRock Global Allocation, AZL MVP DFA Multi-Strategy, AZL MVP Franklin Templeton Founding Strategy Plus, AZL MVP Invesco Equity and Income, and AZL MVP T. Rowe Price Capital Appreciation Funds, the advisory fee paid put them in the 10th percentile of the customized peer group, and for the AZL DFA Multi-Strategy Fund, the advisory fee was in the 15th percentile. Trustees were provided with information on the total expense ratios of the Funds and other funds in the customized peer groups, and the Manager reported upon the challenges in making peer group comparisons for the Funds.

The Manager provided information concerning the profitability of the Manager’s investment advisory activities for the period from 2012 through June 30, 2015. 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.

Based upon the information provided, the Board concluded that the Funds’ advisory fees and expense ratios are not unreasonable, and determined that there was no evidence that the Manager’s level of profitability from its relationship with 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 the advisory fee schedules for the Funds do not contain breakpoints that reduce the fee rate on assets above specified levels. 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 services 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, 2015 were approximately $10.6 billion and that the largest Fund, the AZL MVP Fusion Moderate Fund, had assets of approximately $2.7 billion.

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

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 Management Agreement at a meeting to be held prior to December 31, 2016, 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.


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

The Fund’s Statement of Additional Information (“SAI”) contains additional information about the Fund’s Trustees and Officers. The SAI is available upon request, without charge, by calling toll free 1-800-624-0197.

What factors affected the Fund’s performance during the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL^® DFA Multi-Strategy Fund returned -0.67%. That compared to a 1.38%, 0.55% and 1.20% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Multi-Strategy Composite Index¹, respectively.

The AZL^® DFA Multi-Index Strategy Fund is a fund of funds that pursues broad diversification across four equity sub-portfolios and one fixed income sub-portfolio. The five underlying portfolios are managed by Dimensional Fund Advisors. Generally, the Fund allocates 50% to 70% of its assets to the underlying equity funds and between 30% and 50% to the underlying fixed income fund.

Developed international equity markets lagged during the calendar year, with the MSCI EAFE Index² declining 0.81% over this period. The euro declined significantly against the U.S. dollar, boosting European exports and creating a favorable environment for consumer-related stocks. Europe gained 5% in terms of local currency but declined approximately 3% for U.S. dollar investors. Japanese equities were a bright spot in 2015, gaining approximately 9.6% in U.S. dollar terms. These gains were supported by Japan’s large-scale quantitative easing program; its continued corporate governance reform, which has steadily improved shareholder returns; and a persistently weak yen. Emerging markets faced challenges in 2015, dragged down by weak commodity prices; concerns about slowing growth in China and throughout the global economy more broadly; and continued headwinds from a rising U.S. dollar. Against this backdrop the MSCI EM Index³ declined 14.60% during the year.

Fixed income markets experienced modest gains, with the Barclays Aggregate Index gaining 0.55% in 2015. The yield on the 10-year Treasury⁴ note increased 10 basis points (0.10%) to finish the year at 2.27%. Corporate bond spreads widened during the year, resulting in a negative 0.68% return for the Barclays Corporate Index⁵ during the period. Global bonds also experienced weakness, with the Barclays Global Aggregate Index⁶ losing 3.15% during the year.

The Fund underperformed the Composite in 2015 due to its exposure to emerging markets, international equities and small-cap equities. The Fund’s relative performance was also hampered by the underperformance of its underlying large-cap and emerging market funds.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

³	The Morgan Stanley Capital International, Emerging Markets (“MSCI EM”) Index is a free float adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

⁴

⁵	Barclays U.S. Corporate Bond Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers.

⁶	Barclays Global Aggregate Index is a measure of global investment-grade debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

Investors cannot invest directly in an index.

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 in a combination of Permitted Underlying Funds that represent different classes in the Fund’s asset allocation.

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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.

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

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.

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

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, 2015


	1 Year			3 Year			5 Year			Since Inception (7/10/09)
AZL^® DFA Multi-Strategy Fund		-0.67	%		8.61	%		7.74	%		10.87	%
S&P 500 Index		1.38	%		15.13	%		12.57	%		16.34	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		3.25	%		3.94	%
Multi-Strategy Composite Index		1.20	%		9.62	%		9.02	%		11.55	%


Expense Ratio	Gross
AZL^® DFA Multi-Strategy Fund		0.98	%

Acquired Fund Fees and Expenses are incurred indirectly by the Fund through the valuation of the Fund’s investments in the Permitted Underlying Funds. 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 0.07%.

The Fund’s performance is measured against the Standard & Poor’s 500 Index (“S&P 500”), the Barclays U.S. Aggregate Bond Index and the Multi-Strategy Composite Index (“Composite”). 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. The Composite is a blended index comprised of (60%) S&P 500 and (40%) Barclays U.S. Aggregate Bond Index. 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 DFA Multi-Strategy 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

	Affiliated Investment Companies (100.1%):
	8,024,068	AZL DFA Emerging Markets Core Equity Fund	$	60,421,230
	51,159,094	AZL DFA Five-Year Global Fixed Income Fund		506,986,619
	9,840,151	AZL DFA International Core Equity Fund		88,856,567
	50,316,551	AZL DFA U.S. Core Equity Fund		477,504,072
	13,619,044	AZL DFA U.S. Small Cap Fund		125,295,203

	Total Affiliated Investment Companies (Cost $1,328,383,007)			1,259,063,691

	Unaffiliated Investment Company (0.0%):
	10,231	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(a)		10,231

	Total Unaffiliated Investment Company (Cost $10,231)			10,231

	Total Investment Securities (Cost $1,328,393,238)(b) — 100.1%			1,259,073,922
	Net other assets (liabilities) — (0.1)%			(1,280,408	)

	Net Assets — 100.0%		$	1,257,793,514

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investment securities, at cost	$	10,231
Investments in affiliates, at cost		1,328,383,007

Total Investment securities, at cost	$	1,328,393,238

Investment securities, at value	$	10,231
Investments in affiliates, at value		1,259,063,691

Total Investment securities, at value	$	1,259,073,922
Receivable for affiliated investments sold		795,781

Total Assets		1,259,869,703

Liabilities:
Cash overdraft		806,012
Payable for capital shares redeemed		1,159,647
Manager fees payable		54,075
Administration fees payable		5,118
Custodian fees payable		1,933
Administrative and compliance services fees payable		5,213
Trustee fees payable		3,831
Other accrued liabilities		40,360

Total Liabilities		2,076,189

Net Assets	$	1,257,793,514

Net Assets Consist of:
Capital	$	903,599,431
Accumulated net realized gains/(losses) from investment transactions		423,513,399
Net unrealized appreciation/(depreciation) on investments		(69,319,316	)

Net Assets	$	1,257,793,514

Shares of beneficial interest (unlimited number of shares authorized, no par value)		69,577,531
Net Asset Value (offering and redemption price per share)	$	18.08

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends	$	46

Total Investment Income		46

Expenses:
Manager fees		695,328
Administration fees		61,011
Custodian fees		16,442
Administrative and compliance services fees		22,066
Trustee fees		76,548
Professional fees		60,473
Shareholder reports		34,951
Other expenses		23,848

Total expenses		990,667

Net Investment Income/(Loss)		(990,621	)

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		427,232,722
Net realized gains/(losses) on securities transactions		(57,192	)
Change in net unrealized appreciation/depreciation on investments		(431,648,756	)

Net Realized/Unrealized Gains/(Losses) on Investments		(4,473,226	)

Change in Net Assets Resulting From Operations	$	(5,463,847	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL DFA Multi-Strategy Fund (the “Fund”), and 12 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 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.

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.

For the year ended December 31, 2015, 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, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a fee, accrued daily and paid monthly. Prior to April 1, 2015, Citi also served as transfer agent for the Trust under the same agreement. The Administrator was 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.” Effective April 1, 2015, the Trust’s transfer agent became SunGard Investor Services, LLC.

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is Senior Counsel. During the year ended December 31, 2015, $13,686 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, 2015, actual Trustee compensation was $1,165,450 in total for both trusts.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Derivatives Risk: The Fund may invest directly or through affiliated or unaffiliated mutual funds or unregistered investment pools in derivative instruments such as futures, options, and options on futures. 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 other party to a derivatives contract could default. During the year ended December 31, 2014, the Fund did not directly invest in derivatives.

Cost for federal income tax purposes at December 31, 2015 is $1,328,518,314. 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, 2015 were as follows:

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

As of December 31, 2015, 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, 2015, the Fund had a controlling interest (in excess of 50%) in the AZL DFA Emerging Markets Core Equity Fund, the AZL DFA Five-Year Global Fixed Income Fund, AZL DFA International Core Equity Fund, AZL DFA U.S. Core Equity Fund, and the AZL DFA U.S. Small Cap Fund, which are affiliated with the Investment Adviser.

We have audited the accompanying statement of assets and liabilities of AZL DFA Multi-Strategy Fund (formerly, AZL Growth Index Strategy Fund) (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of AZL DFA Multi-Strategy Fund as of December 31, 2015, 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.

For the year ended December 31, 2015, 49.53% 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, 2015, the Fund declared net long-term capital gain distributions of $18,692,567.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance for the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL^® MVP Balanced Index Strategy Fund returned -0.22%. That compared to a 1.38%, 0.55% and 1.12% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The AZL^® MVP Balanced Index Strategy Fund is a fund of funds that pursues broad diversification across four equity sub-portfolios and one fixed-income sub-portfolio. The four equity sub-portfolios pursue passive strategies that aim to achieve, before fees, returns similar to the S&P 500 Index, the S&P 400 Index², the S&P 600 Index³, and the MSCI EAFE Index⁴, which represents shares of large companies in developed foreign markets. The fixed income sub-portfolio is an enhanced bond index strategy that seeks to achieve a return that exceeds the Barclays U.S. Aggregate Bond Index. Generally, the Fund allocates 40% to 60% of its assets to the underlying equity index funds and between 40% and 60% to the underlying bond index fund. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process that is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.

Developed international equity markets lagged during the calendar year, with the MSCI EAFE declining 0.81% over this period. The euro declined significantly against the U.S. dollar, boosting European exports and creating a favorable environment for consumer-related stocks. Europe gained 5% in terms of local currency but declined approximately 3% for U.S. dollar investors. Japanese equities were a bright spot in 2015, gaining approximately 9.6% in U.S. dollar terms.

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased toward the end of the third quarter, the MVP process modestly reduced the Fund’s equity exposure. Overall, the impact of the MVP risk management process, which includes the use of derivatives, resulted in a modest drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

⁴	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.

⁵

⁶	Barclays U.S. Corporate Bond Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

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, 2015


	1 Year			3 Year			Since Inception (1/10/12)
AZL^® MVP Balanced Index Strategy Fund		-0.22	%		6.01	%		6.67	%
S&P 500 Index		1.38	%		15.13	%		14.66	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		2.16	%
Balanced Composite Index		1.12	%		8.25	%		8.42	%


Expense Ratio	Gross
AZL^® MVP Balanced Index Strategy Fund		0.74	%

As a shareholder of the AZL MVP Balanced Index Strategy 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
	Affiliated Investment Companies (95.0%):
	11,301,544	AZL Enhanced Bond Index Fund	$	121,830,641
	2,198,765	AZL International Index Fund		31,706,193
	899,118	AZL Mid Cap Index Fund		18,971,382
	4,194,250	AZL S&P 500 Index Fund, Class 2		59,684,175
	748,913	AZL Small Cap Stock Index Fund		10,102,837

	Total Affiliated Investment Companies (Cost $232,910,766)			242,295,228

	Unaffiliated Investment Company (2.9%):
	7,525,013	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		7,525,013

	Total Unaffiliated Investment Company (Cost $7,525,013)			7,525,013

	Total Investment Securities (Cost $240,435,779)(b) — 97.9%			249,820,241
	Net other assets (liabilities) — 2.1%			5,308,661

	Net Assets — 100.0%		$	255,128,902

Cash of $5,266,080 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	7,525,013
Investments in affiliates, at cost		232,910,766

Total Investment securities, at cost	$	240,435,779

Investments in non-affiliates, at value	$	7,525,013
Investments in affiliates, at value		242,295,228

Total Investment securities, at value	$	249,820,241
Cash		160,122
Segregated cash for collateral		5,266,080
Receivable for capital shares issued		106,633
Receivable for variation margin on futures contracts		15,513

Total Assets		255,368,589

Liabilities:
Payable for affiliated investments purchased		143,480
Payable for variation margin on futures contracts		59,992
Manager fees payable		21,580
Administration fees payable		4,605
Custodian fees payable		668
Administrative and compliance services fees payable		866
Trustee fees payable		637
Other accrued liabilities		7,859

Total Liabilities		239,687

Net Assets	$	255,128,902

Net Assets Consist of:
Capital	$	238,115,968
Accumulated net investment income/(loss)		6,185,767
Accumulated net realized gains/(losses) from investment transactions		1,467,226
Net unrealized appreciation/(depreciation) on investments		9,359,941

Net Assets	$	255,128,902

Shares of beneficial interest (unlimited number of shares authorized, no par value)		20,740,075
Net Asset Value (offering and redemption price per share)	$	12.30

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	5,261,562
Dividends		352

Total Investment Income		5,261,914

Expenses:
Manager fees		237,553
Administration fees		52,121
Custodian fees		2,098
Administrative and compliance services fees		3,720
Trustee fees		12,963
Professional fees		10,707
Shareholder reports		7,973
Other expenses		3,627

Total expenses		330,762

Net Investment Income/(Loss)		4,931,152

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		(191,614	)
Net realized gains distributions from affiliated underlying funds		3,504,050
Net realized gains/(losses) on futures contracts		(216,706	)
Change in net unrealized appreciation/depreciation on investments		(9,371,354	)

Net Realized/Unrealized Gains/(Losses) on Investments		(6,275,624	)

Change in Net Assets Resulting From Operations	$	(1,344,472	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Balanced Index Strategy Fund (the “Fund”), and 12 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 and on foreign currency transactions are recorded on the basis of identified cost of the security lot sold with the net sales proceeds. 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.

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.

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. The Fund’s allocation to the MVP (Managed Volatility Portfolio) risk management process may include (a) derivatives such as index futures, other futures contracts, options, and other similar securities and (b) cash, money market equivalents, short-term debt instruments, money market funds, and short-term debt funds to satisfy all applicable margin requirements and to provide additional portfolio liquidity to satisfy large redemptions and any margin calls. Due to the leverage provided by derivatives, the notional value of the Fund’s derivative positions could exceed 20% of the Fund’s value. The Fund may also use futures to gain equity exposure and may hold cash as a buffer in the event of market shocks.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $12.6 million as of December 31, 2015. The monthly average notional amount for these contracts was $12.1 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $2,219 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 Trust in proportion to the assets under management of each trust. During the year ended December 31, 2015, actual Trustee compensation was $1,165,450 in total for both trusts.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $241,017,645. 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, 2015 were as follows:

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

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Balanced Index Strategy Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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 or periods in the four-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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP Balanced Index Strategy Fund as of December 31, 2015, 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 or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2015, 31.63% 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, 2015, the Fund declared net long-term capital gain distributions of $2,260,138.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $337,026.

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.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance for the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL^® MVP BlackRock Global Allocation Fund returned -1.57%. That compared to a -1.37%, 1.38%, -4.16%, 1.49%, -5.54% and a -0.83% total return for its benchmarks, the FTSE World Index¹, the S&P 500 Index¹, the FTSE World ex U.S. Index¹, the BofA Merrill Lynch 5-Year U.S. Treasury Bond Index¹, the Citigroup Non-USD World Government Bond Index¹, and the Reference Benchmark¹, respectively.

The AZL^® MVP BlackRock Global Allocation Fund is a fund of funds that invests primarily in the shares of the AZL^® BlackRock Global Allocation Fund—managed by the Manager. This underlying holding invests in a global portfolio of equity, debt, and money market securities. The Fund also employs the MVP (Managed Volatility Portfolio) risk-management process that primarily uses derivatives and is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.*

In general, U.S. equity markets outperformed international equities for the 12-month period, while fixed income markets managed slight gains amid increased volatility. Global equities spent much of the calendar year bouncing between gains and losses in response to macroeconomic headlines. In particular, investors focused on sluggish global growth, a surprise currency devaluation by China in late summer, persistent uncertainty about the timing of the Federal Reserve’s (the Fed) decision to raise interest rates, and the combined impact of weak commodity prices (especially oil) and a strong U.S. dollar.

By contrast, the relative strength of the U.S. economy helped support U.S. equities and ultimately permitted the Federal Reserve to raise interest rates for the first time in nearly a decade. The labor market, housing market and U.S. consumer were all bright spots in the U.S. economic landscape.

For fixed income markets, the European Central Bank’s quantitative easing program was one of the main themes early in the year. The bond-buying program drove prices high enough that yields on $1.7 trillion in eurozone debt fell into negative territory. Most other central banks remained highly accommodative for the year, although the Fed went against that trend, raising its target for the federal funds rate late in the year—the first increase since 2006.

Falling energy prices helped keep inflation in check in the U.S. and helped delay the Fed’s interest rate increase until December. But the low commodity prices, including the cost of oil, and expectations of tightening liquidity following the rate hike, challenged many emerging market economies, which dragged on emerging market debt.

The Fund underperformed its Reference Benchmark for the period. Within equities, the Fund’s underperformance was in large part due to stock selection in the U.S. and Canada. In the materials sector, choice of stocks and an overweight allocation dragged on relative results, as that sector underperformed due to weak commodity prices. In the consumer discretionary and consumer staples sectors, stock selection and underweight allocations also weighed on the Fund’s relative performance, as those sectors outperformed the broader markets for the year. Other detractors included an overweight allocation to the underperforming energy sector, as well as stock selection in the health care, utilities and industrials sectors.*

An underweight allocation to fixed income securities also weighed on the Fund’s relative results.*

Within equities, the Fund benefited from a larger-than-benchmark exposure to the outperforming Japanese equity market, although those benefits were partially offset by stock selection within the country. In general, the Fund’s choice of stocks within the information technology, financials and telecom sectors added to relative results. The Fund also benefited from a larger-than-benchmark exposure to U.S. dollar-denominated securities, which benefited as the U.S. dollar gained against most foreign currencies during the year.*

The Fund uses derivatives to augment positions, hedge exposure and to manage cash flows, all where consistent with the stated investment objectives, and policies. These derivatives utilized by the Fund contributed positively to the Fund’s performance during the period.

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased towards the end of the third quarter the MVP process reduced the Fund’s equity exposure. Over the full year the MVP risk management process resulted in a drag on relative performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

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 primarily in shares of another mutual fund managed by the manager; the AZL^® BlackRock Global Allocation Fund, combined with the MVP risk management process.

Investment Concerns

The Fund invests in an underlying fund, so its investment performance is directly related to the performance of that underlying fund. Before investing, investors should assess the risks associated with and types of investments made by the underlying fund in which the Fund invests.

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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

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.

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, 2015


	1 Year			3 Year			Since Inception (1/10/12)
AZL^® MVP BlackRock Global Allocation Fund		-1.57	%		4.69	%		5.23	%
FTSE World Index		-1.37	%		8.81	%		10.27	%
S&P 500 Index		1.38	%		15.13	%		14.66	%
FTSE World ex U.S. Index		-4.16	%		2.70	%		5.84	%
BofA Merrill Lynch 5-Year U.S. Treasury Bond Index		1.49	%		0.64	%		1.06	%
Citigroup Non-U.S. Dollar World Government Bond Index		-5.54	%		-4.27	%		-2.66	%
Reference Benchmark		-0.83	%		5.56	%		6.57	%


Expense Ratio	Gross
AZL^® MVP BlackRock Global Allocation Fund		1.18	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.15% through April 30, 2017. Additional information pertaining to the December 31, 2015 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 0.12%.

The Fund’s performance is measured against the FTSE World Index, which is a market-capitalization weighted index representing the performance of the large- and mid-capitalization stocks from the FTSE Global Equity Index Series and covers 90-95% of the investable market capitalization. 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 is comprised of (84%) large- and (16%) mid-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, 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 U.S. The Reference Benchmark is comprised of (36%) S&P 500; (24%) FTSE World ex U.S. Index; (24%) BofA Merrill Lynch 5-Year U.S. Treasury Bond; and (16%) Citigroup Non-U.S. Dollar World Government Bond. 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 MVP 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.


Investments	Percent of Net Assets
Common Stocks		50.2	%
U.S. Treasury Obligation		23.3
Foreign Bonds		8.7
Securities Held as Collateral for Securities on Loan		4.1
Corporate Bonds		3.4
Yankee Dollars		3.2
Money Market		3.1
Preferred Stocks		2.1
Convertible Bonds		1.2
Floating Rate Loans		1.0
Exchange Traded Funds		0.9
Private Placements		0.5
Purchased Options		0.5
U.S. Government Agency Mortgages		0.4
Convertible Preferred Stocks		0.2
Collateralized Mortgage Obligation		0.1
Warrant		—^
Purchased Swaptions		—^

Total Investment Securities		102.9
Net other assets (liabilities)		(2.9	)

Net Assets		100.0	%


Shares			Fair Value
	Common Stocks (50.2%):
	Aerospace & Defense (0.8%):
	1,021	Boeing Co. (The)(a)	$	147,626
	762	Dassault Aviation SA(a)		947,843
	26,129	European Aeronautic Defence & Space Co. NV(a)		1,754,153
	1,444	General Dynamics Corp.(a)		198,348
	1,285	Northrop Grumman Corp.(a)		242,621
	1,550	Raytheon Co.(a)		193,022
	23,085	Safran SA(a)		1,580,796
	6,470	Textron, Inc.(a)		271,805
	11,622	United Technologies Corp.(a)		1,116,525

				6,452,739

	Air Freight & Logistics (0.5%):
	3,545	BPOST SA(a)		86,884
	4,429	Compania de Distribucion Integral Logista Holdings SA^(a)		93,315
	7,395	CTT-Correios de Portugal SA(a)		71,076
	24,649	Deutsche Post AG(a)		694,060
	11,846	FedEx Corp.(a)		1,764,936
	1,149	Oesterreichische Post AG(a)		41,886
	48,258	PostNL NV*(a)		182,441
	14,054	United Parcel Service, Inc., Class B(a)		1,352,416

				4,287,014

	Airlines (0.7%):
	19,662	American Airlines Group, Inc.(a)		832,686
	13,284	Delta Air Lines, Inc.(a)		673,366
	60,300	Japan Airlines Co., Ltd.(a)		2,159,701
	10,392	Southwest Airlines Co.(a)		447,480
	28,292	United Continental Holdings, Inc.*(a)		1,621,131

				5,734,364

	Auto Components (1.2%):
	24,700	Aisin Sieki Co., Ltd.(a)		1,062,129
	42,800	Bridgestone Corp.(a)		1,465,735
	138,683	Cheng Shin Rubber Industry Co., Ltd.(a)		224,030
	831	Compagnie Generale des Establissements Michelin SCA, Class B(a)		78,891
	18,220	Delphi Automotive plc(a)		1,562,001
	44,400	Denso Corp.(a)		2,117,229
	2,100	Exedy Corp.(a)		50,736
	26,400	Futaba Industrial Co., Ltd.(a)		125,759
	2,946	Goodyear Tire & Rubber Co.^(a)		96,246
	2,082	Hyundai Wia Corp.(a)		196,704
	12,600	Koito Manufacturing Co., Ltd.(a)		515,458
	2,098	Lear Corp.(a)		257,697
	3,500	Stanley Electric Co., Ltd.(a)		77,103
	44,400	Sumitomo Electric Industries, Ltd.^(a)		625,691
	45,100	Toyota Industries Corp.(a)		2,410,532

				10,865,941

	Automobiles (1.6%):
	5,568	Bayerische Motoren Werke AG (BMW)(a)		586,334
	190,000	Brilliance China Automotive Holdings, Ltd.(a)		238,205


Shares			Fair Value
	Common Stocks, continued
	Automobiles, continued
	108,000	Dongfeng Motor Corp., Series H(a)	$	143,024
	108,122	Ford Motor Co.(a)		1,523,439
	77,300	Fuji Heavy Industries, Ltd.(a)		3,178,072
	33,700	Honda Motor Co., Ltd.(a)		1,079,935
	8,623	Hyundai Motor Co.(a)		1,086,776
	67,100	Isuzu Motors, Ltd.(a)		722,176
	9,416	Maruti Suzuki India, Ltd.(a)		655,927
	45,048	PSA Peugeot Citroen SA*(a)		789,756
	5,064	Renault SA(a)		507,572
	33,600	Suzuki Motor Corp.(a)		1,020,170
	34,600	Toyota Motor Corp.(a)		2,124,015
	270	Volkswagen AG(a)		41,593
	168,770	Yulon Motor Co., Ltd.(a)		154,013

				13,851,007

	Banks (3.9%):
	148,862	Banco Santander SA(a)		730,744
	206,069	Bank of America Corp.(a)		3,468,141
	25,000	Bank of Yokohama, Ltd. (The)(a)		153,042
	73,236	Barclays plc(a)		237,008
	10,935	BNP Paribas SA(a)		618,881
	21,000	Chiba Bank, Ltd. (The)(a)		148,907
	73,445	Citigroup, Inc.(a)		3,800,779
	3,089	Citizens Financial Group, Inc.(a)		80,901
	3,984	Fifth Third Bancorp(a)		80,078
	50,000	Fukuoka Financial Group, Inc.(a)		248,022
	512,993	HSBC Holdings plc(a)		4,047,678
	50,913	ING Groep NV(a)		685,249
	429,308	Intesa Sanpaolo SpA(a)		1,430,517
	34,800	Japan Post Bank Co., Ltd.*(a)		506,740
	58,936	JPMorgan Chase & Co.(a)		3,891,544
	446,558	Lloyds Banking Group plc(a)		480,571
	188,000	Mitsubishi UFJ Financial Group, Inc.(a)		1,163,657
	279,100	Mizuho Financial Group, Inc.(a)		557,218
	58,688	Regions Financial Corp.(a)		563,405
	14,000	Shizuoka Bank, Ltd. (The)(a)		135,719
	8,416	Societe Generale(a)		388,156
	70,661	Standard Chartered plc(a)		586,144
	15,700	Sumitomo Mitsui Financial Group, Inc.(a)		592,314
	9,819	SunTrust Banks, Inc.(a)		420,646
	46,076	Svenska Handelsbanken AB, A Shares(a)		608,623
	26,845	Toronto-Dominion Bank (The)(a)		1,052,456
	26,889	U.S. Bancorp(a)		1,147,354
	73,414	UniCredit SpA(a)		404,307
	77,900	Wells Fargo & Co.(a)		4,234,643

				32,463,444

	Beverages (1.3%):
	573	Anheuser-Busch InBev NV(a)		70,770
	13,000	Asahi Breweries, Ltd.(a)		406,457
	66,202	Coca-Cola Co. (The)(a)		2,844,037
	1,525	Coca-Cola Enterprises, Inc.(a)		75,091
	1,881	Constellation Brands, Inc., Class A(a)		267,930


Shares			Fair Value
	Common Stocks, continued
	Beverages, continued
	8,632	Diageo plc, ADR(a)	$	941,492
	1,778	Diageo plc(a)		48,480
	1,028	Dr Pepper Snapple Group, Inc.(a)		95,810
	13,713	PepsiCo, Inc.(a)		1,370,203
	67,054	SABMiller plc(a)		4,015,942
	10,000	Suntory Beverage & Food, Ltd.(a)		438,505

				10,574,717

	Biotechnology (1.1%):
	22,566	AbbVie, Inc.(a)		1,336,810
	3,611	Alexion Pharmaceuticals, Inc.*(a)		688,798
	2,773	Alkermes plc*(a)		220,121
	14,015	Amgen, Inc.(a)		2,275,054
	149	Anacor Pharmaceuticals, Inc.*(a)		16,833
	3,562	Biogen Idec, Inc.*(a)		1,091,219
	5,935	Celgene Corp.*(a)		710,776
	11,452	Gilead Sciences, Inc.(a)		1,158,828
	31,581	Invitae Corp.*^(a)		259,280
	557	Regeneron Pharmaceuticals, Inc.*(a)		302,379
	4,590	Tesaro, Inc.*^(a)		240,149
	1,808	Ultragenyx Pharmaceutical, Inc.*^(a)		202,821
	1,770	Vertex Pharmaceuticals, Inc.*(a)		222,719

				8,725,787

	Building Products (0.2%):
	15,430	Compagnie de Saint-Gobain SA(a)		663,687
	14,300	Daikin Industries, Ltd.(a)		1,040,850

				1,704,537

	Capital Markets (0.8%):
	1,290	Ameriprise Financial, Inc.(a)		137,282
	14,867	Bank of New York Mellon Corp. (The)(a)		612,818
	21,782	Charles Schwab Corp. (The)(a)		717,281
	20,553	Credit Suisse Group AG(a)		444,352
	25,479	Deutsche Bank AG, Registered Shares(a)		625,275
	5,018	Goldman Sachs Group, Inc. (The)(a)		904,394
	28,498	Morgan Stanley(a)		906,522
	100,800	Nomura Holdings, Inc.(a)		560,285
	80,706	UBS Group AG(a)		1,553,564

				6,461,773

	Chemicals (1.7%):
	2,471	Air Liquide SA(a)		277,490
	1,909	Air Products & Chemicals, Inc.(a)		248,380
	33,060	AkzoNobel NV(a)		2,207,894
	109,000	Asahi Kasei Corp.(a)		737,805
	30,631	Axalta Coating Systems, Ltd.*(a)		816,315
	2,680	Ecolab, Inc.(a)		306,538
	14,637	FMC Corp.^(a)		572,746
	34,700	Hitachi Chemical Co., Ltd.(a)		549,901
	35,900	JSR Corp.(a)		560,376
	34,600	Kuraray Co., Ltd.(a)		418,440
	2,290	Linde AG(a)		332,356
	8,427	LyondellBasell Industries NV, Class A(a)		732,306
	4,957	Monsanto Co.(a)		488,364
	24,100	Nitto Denko Corp.(a)		1,758,190


Shares			Fair Value
	Common Stocks, continued
	Chemicals, continued
	2,725	PPG Industries, Inc.(a)	$	269,285
	2,892	Praxair, Inc.(a)		296,141
	33,900	Shin-Etsu Chemical Co., Ltd.(a)		1,841,543
	3,507	Syngenta AG, Registered Shares(a)		1,376,924
	256,000	Ube Industries, Ltd.(a)		540,357

				14,331,351

	Commercial Services & Supplies (0.2%):
	2,086	Cintas Corp.(a)		189,930
	10,796	Elis SA(a)		178,629
	1,800	SECOM Co., Ltd.(a)		121,820
	4,700	Sohgo Security Services Co., Ltd.(a)		219,977
	25,301	Tyco International plc(a)		806,849

				1,517,205

	Communications Equipment (0.8%):
	21,138	Alcatel-Lucent*(a)		83,638
	93,395	Cisco Systems, Inc.(a)		2,536,141
	21,094	El Towers SpA(a)		1,359,073
	3,000	Hitachi Kokusai Electric, Inc.(a)		40,732
	44,401	QUALCOMM, Inc.(a)		2,219,384
	2,103	Telefonaktiebolaget LM Ericsson, B Shares(a)		20,385

				6,259,353

	Construction & Engineering (0.3%):
	6,000	Chiyoda Corp.(a)		45,512
	1,900	ComSys Holdings Corp.(a)		26,691
	19,000	JGC Corp.(a)		290,775
	6,900	Kinden Corp.(a)		87,985
	3,000	Maeda Road Construction Co., Ltd.(a)		50,160
	1,000	Nippo Corp.(a)		16,246
	84,000	Okumura Corp.(a)		471,972
	300	Sho-Bond Holdings Co., Ltd.(a)		10,908
	88,000	Toda Corp.(a)		468,969
	10,542	Vinci SA(a)		675,957

				2,145,175

	Consumer Finance (0.1%):
	2,213	Capital One Financial Corp.(a)		159,734
	2,823	Discover Financial Services(a)		151,369
	23,551	Synchrony Financial*(a)		716,187

				1,027,290

	Containers & Packaging (0.1%):
	3,167	International Paper Co.(a)		119,396
	1,561	Sealed Air Corp.(a)		69,621
	17,720	WestRock Co.(a)		808,386

				997,403

	Distributors (0.0%):
	3,100	Canon Marketing Japan, Inc.(a)		48,314

	Diversified Consumer Services (0.0%):
	1,000	Benesse Holdings, Inc.(a)		28,798


Shares			Fair Value
	Common Stocks, continued
	Diversified Financial Services (0.5%):
	7	Berkshire Hathaway, Inc., Class A*(a)	$	1,384,600
	16,855	Berkshire Hathaway, Inc., Class B*(a)		2,225,535
	7,519	CME Group, Inc.(a)		681,221
	615,711	Delta Topco, Ltd.(a)(b)		269,681

				4,561,037

	Diversified Telecommunication Services (1.7%):
	91,006	AT&T, Inc.(a)		3,131,516
	9,954	Belgacom SA(a)		322,892
	116,521	BT Group plc(a)		805,187
	75,955	Cellnex Telecom SAU^(a)		1,415,946
	48,502	Deutsche Telekom AG, Registered Shares(a)		877,466
	21,122	France Telecom SA(a)		354,302
	1,433	Iliad SA(a)		341,839
	186,353	Koninklijke (Royal) KPN NV(a)		703,579
	22,500	Nippon Telegraph & Telephone Corp.(a)		893,403
	294,500	Singapore Telecommunications, Ltd.(a)		758,239
	633,329	Telecom Italia SpA*(a)		798,151
	32,883	Telecom Italia SpA(a)		33,629
	28,146	Telefonica Deutschland Holding AG(a)		150,242
	522,923	Telesites SAB de C.V.*(a)		340,258
	8,542	Verizon Communications, Inc.(a)		396,732
	62,803	Verizon Communications, Inc.(a)		2,902,755

				14,226,136

	Electric Utilities (0.5%):
	11,319	American Electric Power Co., Inc.(a)		659,558
	52,900	Chubu Electric Power Co., Inc.(a)		723,677
	3,000	CLP Holdings, Ltd.(a)		25,441
	1,637	Duke Energy Corp.(a)		116,865
	794	Edison International(a)		47,013
	136,052	Enel SpA(a)		568,998
	477	Entergy Corp.(a)		32,608
	778	Eversource Energy(a)		39,732
	2,299	Exelon Corp.(a)		63,843
	1,030	FirstEnergy Corp.(a)		32,682
	2,500	Hongkong Electric Holdings, Ltd.(a)		22,953
	33,380	Iberdrola SA(a)		236,609
	7,600	Kansai Electric Power Co., Inc. (The)*(a)		90,947
	33,200	Kyushu Electric Power Co., Inc.*^(a)		362,825
	9,464	NextEra Energy, Inc.(a)		983,215
	1,661	PPL Corp.(a)		56,690
	1,815	Scottish & Southern Energy plc(a)		40,637
	2,125	Southern Co. (The)(a)		99,429
	13,100	Tokyo Electric Power Co., Inc. (The)*(a)		75,356
	1,342	Xcel Energy, Inc.(a)		48,191

				4,327,269

	Electrical Equipment (0.6%):
	33,435	Eaton Corp. plc(a)		1,739,956
	19,238	Emerson Electric Co.(a)		920,154
	85,000	GS Yuasa Corp.^(a)		315,454
	3,300	Mabuchi Motor Co., Ltd.(a)		178,317


Shares			Fair Value
	Common Stocks, continued
	Electrical Equipment, continued
	153,000	Mitsubishi Electric Corp.(a)	$	1,604,332
	1,766	Rockwell Automation, Inc.^(a)		181,209

				4,939,422

	Electronic Equipment, Instruments & Components (0.3%):
	1,244	Corning, Inc.(a)		22,740
	32,000	Delta Electronics, Inc.(a)(d)		150,212
	4,152	Fitbit, Inc., Class A*^(a)		122,858
	4,900	Hitachi High-Technologies Corp.(a)		132,432
	9,750	Hon Hai Precision Industry Co., Ltd.(a)		23,851
	500	Keyence Corp.(a)		274,457
	15,800	Kyocera Corp.(a)		732,409
	2,300	Murata Manufacturing Co., Ltd.(a)		330,153
	10,200	Omron Corp.(a)		339,791
	1,630	Samsung SDI Co., Ltd.(a)		156,554
	395	TE Connectivity, Ltd.(a)		25,521

				2,310,978

	Energy Equipment & Services (0.7%):
	1,558	Baker Hughes, Inc.(a)		71,902
	1,384	Cameron International Corp.*(a)		87,469
	3,051	Halliburton Co.(a)		103,856
	1,698	Helmerich & Payne, Inc.(a)		90,928
	19,523	Ocean Rig UDW, Inc.(a)		31,822
	27,324	Oceaneering International, Inc.^(a)		1,025,196
	175,649	SBM Offshore NV*^(a)		2,232,783
	35,180	Schlumberger, Ltd.(a)		2,453,804

				6,097,760

	Food & Staples Retailing (1.0%):
	3,374	Colruyt SA(a)		173,271
	423	Costco Wholesale Corp.(a)		68,315
	20,138	CVS Health Corp.(a)		1,968,892
	108,418	Distribuidora Internacional de Alimentacion SA(a)		636,875
	12,500	FamilyMart Co., Ltd.(a)		580,885
	6,630	Kroger Co. (The)(a)		277,333
	9,600	Seven & I Holdings Co., Ltd.(a)		437,771
	15,583	Walgreens Boots Alliance, Inc.(a)		1,326,970
	35,427	Wal-Mart Stores, Inc.(a)		2,171,675
	786	Wesfarmers, Ltd.(a)		23,642
	12,750	Whole Foods Market, Inc.(a)		427,125

				8,092,754

	Food Products (0.6%):
	18,000	Ajinomoto Co., Inc.(a)		426,081
	3,080	Archer-Daniels-Midland Co.(a)		112,974
	11,037	Danone SA(a)		744,757
	584	General Mills, Inc.(a)		33,673
	3,862	Hain Celestial Group, Inc.*(a)		155,987
	5,257	Kraft Heinz Co. (The)(a)		382,500
	1,654	Mondelez International, Inc., Class A(a)		74,165
	38,967	Nestle SA, Registered Shares(a)		2,889,242
	28,589	SLC Agricola SA(a)		118,910

				4,938,289


Shares			Fair Value
	Common Stocks, continued
	Gas Utilities (0.2%):
	12,000	Hong Kong & China Gas Co., Ltd.(a)	$	23,477
	384,000	Tokyo Gas Co., Ltd.(a)		1,804,003

				1,827,480

	Health Care Equipment & Supplies (0.3%):
	16,072	Abbott Laboratories(a)		721,793
	13,245	Baxter International, Inc.(a)		505,297
	392	Becton, Dickinson & Co.^(a)		60,403
	6,973	Getinge AB, B Shares(a)		181,598
	16,700	HOYA Corp.(a)		680,922
	1,403	Stryker Corp.(a)		130,395

				2,280,408

	Health Care Providers & Services (2.0%):
	22,038	Aetna, Inc.(a)		2,382,749
	36,197	Al Noor Hospitals Group plc(a)		590,941
	1,904	AmerisourceBergen Corp.(a)		197,464
	11,789	Anthem, Inc.(a)		1,643,858
	955,300	Bangkok Dusit Medical Services Public Co., Ltd., Class F(a)		590,080
	68,200	Bumrungrad Hospital Public Co., Ltd.(a)		399,452
	2,323	Cardinal Health, Inc.(a)		207,374
	7,849	DaVita, Inc.*(a)		547,154
	5,874	Envision Healthcare Holdings, Inc.*(a)		152,548
	13,325	HCA Holdings, Inc.*(a)		901,170
	383,817	Healthscope, Ltd.(a)		739,803
	468,800	IHH Healthcare Berhad(a)		719,193
	26,627	Integrated Diagnostics Holdings plc *(a)		131,568
	15,432	McKesson, Inc.(a)		3,043,653
	1,500	Medipal Holdings Corp.(a)		25,545
	61,358	NMC Health plc(a)		760,634
	393,999	PT Siloam International Hospital Tbk(a)		279,376
	49,800	Raffles Medical Group, Ltd.(a)		145,981
	8,700	Ship Healthcare Holdings, Inc.(a)		214,989
	239,663	Spire Healthcare Group plc(a)		1,104,197
	14,786	Surgery Partners, Inc.*(a)		302,965
	27,287	Tenet Healthcare Corp.*^(a)		826,796
	2,635	UnitedHealth Group, Inc.(a)		309,981

				16,217,471

	Health Care Technology (0.2%):
	5,500	HTG Molecular Diagnostics, Inc.*^(a)		23,980
	43,899	Veeva Systems, Inc., Class A*^(a)		1,266,486

				1,290,466

	Hotels, Restaurants & Leisure (0.2%):
	14,259	Accor SA(a)		614,978
	8,340	Las Vegas Sands Corp.^(a)		365,625
	1,256	McDonald’s Corp.(a)		148,384
	936	Starbucks Corp.(a)		56,188
	17,769	TUI AG(a)		315,202
	1,949	Wyndham Worldwide Corp.^(a)		141,595

				1,641,972


Shares			Fair Value
	Common Stocks, continued
	Household Durables (0.4%):
	4,400	Alpine Electronics, Inc.(a)	$	68,438
	31,698	Cyrela Brazil Realty SA Empreendimentos e Participacoes(a)		60,110
	5,002	Garmin, Ltd.(a)		185,924
	213,000	Haier Electronics Group Co., Ltd.(a)		428,913
	1,906	MRV Engenharia e Participacoes SA(a)		4,183
	68,100	Nikon Corp.^(a)		909,862
	7,300	Rinnai Corp.(a)		646,370
	34,870	Tomtom NV*(a)		438,394
	6,044	Whirlpool Corp.(a)		887,682

				3,629,876

	Household Products (0.8%):
	16,208	Colgate-Palmolive Co.(a)		1,079,777
	6,569	Henkel AG & Co. KGaA(a)		732,160
	6,294	Kimberly-Clark Corp.(a)		801,226
	49,048	Procter & Gamble Co. (The)(a)		3,894,904
	459	Reckitt Benckiser Group plc(a)		42,244

				6,550,311

	Independent Power and Renewable Electricity Producers (0.3%):
	38,447	AES Corp. (The)(a)		367,938
	44,175	Calpine Corp.*(a)		639,213
	7,800	Electric Power Development Co., Ltd.(a)		277,610
	20,291	NextEra Energy Partners LP(a)		605,686
	31,863	NRG Energy, Inc.^(a)		375,028
	5,407	NRG Yield, Inc., Class A(a)		75,211
	5,590	NRG Yield, Inc., Class A^(a)		82,508
	17,531	TerraForm Power, Inc., Class A^(a)		220,540

				2,643,734

	Industrial Conglomerates (1.0%):
	1,009	3M Co., Class B(a)		151,996
	151,219	Beijing Enterprises Holdings, Ltd.(a)		910,408
	157,308	General Electric Co.(a)		4,900,144
	194,500	Keppel Corp., Ltd.(a)		887,937
	43,577	Koninklijke Philips Electronics NV(a)		1,107,813

				7,958,298

	Insurance (2.0%):
	1,152	ACE, Ltd.^(a)		134,611
	128,200	AIA Group, Ltd.(a)		763,784
	15,630	Allstate Corp. (The)(a)		970,467
	26,359	American International Group, Inc.(a)		1,633,467
	49,339	AXA SA(a)		1,348,678
	3,088	Axis Capital Holdings, Ltd.(a)		173,607
	21,098	Chubb Corp. (The)(a)		2,798,438
	3,301	CNA Financial Corp.(a)		116,030
	8,486	Hartford Financial Services Group, Inc. (The)(a)		368,802
	145,457	Legal & General Group plc(a)		573,574
	5,161	Lincoln National Corp.(a)		259,392
	16,889	Marsh & McLennan Cos., Inc.(a)		936,495
	8,050	MetLife, Inc.(a)		388,091


Shares			Fair Value
	Common Stocks, continued
	Insurance, continued
	8,100	MS&AD Insurance Group Holdings, Inc.(a)	$	236,909
	6,600	NKSJ Holdings, Inc.(a)		215,908
	1,599	Prudential Financial, Inc.(a)		130,175
	56,099	Prudential plc(a)		1,255,762
	1,779	Reinsurance Group of America, Inc.(a)		152,193
	43,900	Sony Financial Holdings, Inc.(a)		784,281
	16,600	Tokio Marine Holdings, Inc.(a)		639,686
	3,887	Travelers Cos., Inc. (The)^(a)		438,687
	22,774	UnumProvident Corp.(a)		758,146
	19,921	XL Group plc(a)		780,505
	1,324	Zurich Insurance Group AG(a)		337,933

				16,195,621

	Internet & Catalog Retail (0.0%):
	48	Amazon.com, Inc.*(a)		32,443
	200	Askul Corp.(a)		8,043
	1,817	Expedia, Inc.(a)		225,853

				266,339

	Internet Software & Services (1.9%):
	14,692	Alibaba Group Holding, Ltd., ADR*^(a)		1,194,019
	3,378	Alphabet, Inc., Class A*(a)		2,628,117
	7,554	Alphabet, Inc., Class C*(a)		5,732,579
	8,700	DeNA Co., Ltd.^(a)		136,152
	95,700	Dropbox, Inc.*(a)(b)		1,268,982
	16,744	eBay, Inc.*(a)		460,125
	17,713	Facebook, Inc., Class A*(a)		1,853,842
	7,561	GoDaddy, Inc., Class A*^(a)		242,406
	5,547	Lookout, Inc.*(a)(b)		63,364
	32,802	Twitter, Inc.*^(a)		759,038
	6,647	United Internet AG, Registered Shares(a)		365,477
	2,508	VeriSign, Inc.*^(a)		219,099
	76,800	Yahoo! Japan Corp.^(a)		312,159
	11,952	Yahoo!, Inc.*(a)		397,524

				15,632,883

	IT Services (1.0%):
	2,619	Accenture plc, Class A(a)		273,686
	542	Alliance Data Systems Corp.*(a)		149,901
	3,091	Amdocs, Ltd.(a)		168,676
	13,828	Atos Origin SA(a)		1,161,244
	468	Automatic Data Processing, Inc.(a)		39,649
	591	Cognizant Technology Solutions Corp., Class A*(a)		35,472
	2,890	Computer Sciences Corp.(a)		94,445
	3,045	Fidelity National Information Services, Inc.(a)		184,527
	1,429	Global Payments, Inc.(a)		92,185
	10,850	International Business Machines Corp.(a)		1,493,177
	14,536	MasterCard, Inc., Class A(a)		1,415,225
	800	NS Solutions Corp.(a)		18,169
	6,326	PayPal Holdings, Inc.*(a)		229,001
	800	SCSK Corp.(a)		32,287
	1,260	Sopra Steria Group(a)		147,970


Shares			Fair Value
	Common Stocks, continued
	IT Services, continued
	18,453	Square, Inc., Class A*(a)	$	241,550
	28,873	Visa, Inc., Class A(a)		2,239,101
	14,747	Worldline SA*(a)		381,238

				8,397,503

	Leisure Products (0.1%):
	6,300	Namco Bandai Holdings, Inc.(a)		132,392
	40,300	Sega Sammy Holdings, Inc.(a)		376,392
	8,600	Yamaha Corp.(a)		207,813

				716,597

	Life Sciences Tools & Services (0.1%):
	4,159	Thermo Fisher Scientific, Inc.(a)		589,954

	Machinery (0.7%):
	5,161	Caterpillar, Inc.^(a)		350,742
	4,015	CNH Industrial NV(a)		27,463
	19,219	Colfax Corp.*^(a)		448,764
	1,334	Dover Corp.(a)		81,788
	2,600	FANUC Corp.(a)		448,273
	169,090	Haitian International Holdings, Ltd.(a)		245,901
	93,000	IHI Corp.^(a)		255,732
	10,489	Ingersoll-Rand plc(a)		579,937
	27,700	Komatsu, Ltd.(a)		451,395
	38,000	Kubota Corp.(a)		585,846
	151,000	Mitsubishi Heavy Industries, Ltd.(a)		659,655
	8,300	Nabtesco Corp.(a)		168,687
	11,811	PACCAR, Inc.(a)		559,841
	1,100	SMC Corp.(a)		285,298
	7,836	WABCO Holdings, Inc.*(a)		801,309

				5,950,631

	Media (1.3%):
	1,568	Axel Springer AG^(a)		87,186
	39,304	Comcast Corp., Class A(a)		2,217,926
	16,776	DISH Network Corp., Class A*(a)		959,252
	5,499	Eutelsat Communications SA(a)		164,196
	7,208	Liberty Broadband Corp., Class A*(a)		372,293
	16,034	Liberty Broadband Corp., Class C*(a)		831,523
	11,579	Liberty Global plc, Class A*(a)		490,486
	39,306	Liberty Media Corp., Class C*(a)		1,496,772
	20,943	Liberty Media Corp.*(a)		822,013
	2,163	M6 Metropole Television SA(a)		37,183
	15,439	Mediaset Espana Comunicacion SA(a)		167,196
	69,743	Mediaset SpA(a)		288,803
	2,012	Numericable-SFR(a)		73,042
	6,873	ProSiebenSat.1 Media AG(a)		347,616
	121,704	RAI Way SpA(a)		621,785
	1,818	RTL Group(a)		151,826
	721	Scripps Networks Interactive, Class A^(a)		39,806
	6,166	Societe Television Francaise 1(a)		68,562
	1,470	Stroeer Media SE^(a)		92,132
	1,463	Telenet Group Holding NV*(a)		78,834
	3,390	Time Warner Cable, Inc., Class A(a)		629,150
	3,100	TV Asahi Holdings Corp.(a)		53,537


Shares			Fair Value
	Common Stocks, continued
	Media, continued
	14,450	Vivendi Universal SA(a)	$	311,114
	68,725	Zon Multimedia Servicos de Telecommunicacoes e Multimedia SGPS SA(a)		540,433

				10,942,666

	Metals & Mining (1.1 %):
	140,492	Antofagasta plc(a)		962,591
	116,487	Barrick Gold Corp., ADR(a)		859,674
	23,104	BHP Billiton plc(a)		259,355
	46,861	Constellium NV*(a)		360,830
	91,809	Eldorado Gold Corp.(a)		272,076
	132,369	First Quantum Minerals, Ltd.(a)		495,606
	38,102	Freeport-McMoRan Copper & Gold, Inc.^(a)		257,951
	115,936	Gerdau SA, ADR(a)		139,123
	551,248	Glencore International plc(a)		733,371
	57,535	Goldcorp, Inc.(a)		665,105
	12,700	Nippon Steel Corp.(a)		251,503
	6,368	Nucor Corp.(a)		256,630
	353,956	Platinum Group Metals, Ltd.*(a)		49,889
	216,347	Platinum Group Metals, Ltd.*(a)		31,760
	53,411	Rio Tinto plc(a)		1,556,319
	46,309	Southern Copper Corp.^(a)		1,209,591
	1,309	Steel Dynamics, Inc.(a)		23,392
	74,817	Tahoe Resources, Inc.(a)		647,314
	400	Yamato Kogyo Co., Ltd.(a)		10,205

				9,042,285

	Multiline Retail (0.1%):
	7,451	Macy’s, Inc.(a)		260,636
	10,739	Target Corp.^(a)		779,759

				1,040,395

	Multi-Utilities (0.4%):
	551	Ameren Corp.(a)		23,820
	9,902	Centrica plc(a)		31,801
	676	CMS Energy Corp.(a)		24,390
	760	Consolidated Edison, Inc.^(a)		48,845
	10,574	Dominion Resources, Inc.(a)		715,225
	395	DTE Energy Co.(a)		31,675
	3,369	E.ON AG(a)		32,600
	33,209	Engie Group(a)		587,643
	61,406	National Grid plc(a)		844,472
	1,207	PG&E Corp.(a)		64,200
	1,208	Public Service Enterprise Group, Inc.(a)		46,738
	12,022	Sempra Energy(a)		1,130,189
	797	WEC Energy Group, Inc.(a)		40,894

				3,622,492

	Oil, Gas & Consumable Fuels (3.3%):
	72,954	Anadarko Petroleum Corp.(a)		3,544,104
	105,940	Athabasca Oil Corp.*(a)		117,924
	8,879	BG Group plc(a)		128,739
	47,582	BP plc(a)		247,912
	61,539	Cameco Corp.(a)		758,776


Shares			Fair Value
	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	117,031	Cenovus Energy, Inc.(a)	$	1,480,333
	8,049	Chevron Corp.(a)		724,088
	142,471	Coal India, Ltd.(a)		707,763
	4,442	ConocoPhillips^(a)		207,397
	129,595	CONSOL Energy, Inc.^(a)		1,023,801
	2,179	Enbridge, Inc.(a)		72,450
	6,498	ENI SpA(a)		96,249
	5,888	EOG Resources, Inc.(a)		416,812
	20,512	EQT Corp.(a)		1,069,291
	15,282	Exxon Mobil Corp.(a)		1,191,232
	138,200	INPEX Corp.(a)		1,364,014
	28,913	KazMunaiGas Exploration Production JSC, Registered Shares, GDR(a)		215,291
	6,118	Kinder Morgan, Inc.(a)		91,281
	108,781	Marathon Petroleum Corp.(a)		5,639,206
	2,793	Occidental Petroleum Corp.(a)		188,835
	157,714	Oil & Natural Gas Corp., Ltd.(a)		573,133
	286,201	Ophir Energy plc*(a)		413,071
	72,803	Petroleo Brasileiro SA, ADR*^(a)		313,053
	11,163	Pioneer Natural Resources Co.(a)		1,399,616
	80,753	Reliance Industries, Ltd.(a)		1,232,948
	6,398	Royal Dutch Shell plc, B Shares(a)		146,073
	10,268	Royal Dutch Shell plc, A Shares(a)		230,653
	121,490	Statoil ASA^(a)		1,699,781
	3,803	Suncor Energy, Inc.(a)		98,188
	2,322	Total SA, ADR^(a)		104,374
	21,016	Total SA(a)		935,838
	1,095	TransCanada Corp.(a)		35,767
	5,487	Valero Energy Corp.(a)		387,986
	75,905	Whiting Petroleum Corp.*(a)		716,543
	2,421	Williams Cos., Inc. (The)(a)		62,220

				27,634,742

	Personal Products (0.1%):
	7,959	Edgewell Personal Care Co.(a)		623,747
	1,852	L’Oreal SA(a)		311,539
	1,985	Unilever NV(a)		85,990

				1,021,276

	Pharmaceuticals (3.3%):
	5,429	Allergan plc*(a)		1,696,563
	44,200	Astellas Pharma, Inc.(a)		627,904
	2,305	AstraZeneca plc, ADR^(a)		78,255
	33,891	AstraZeneca plc(a)		2,291,012
	6,287	Bayer AG(a)		788,668
	21,072	Bristol-Myers Squibb Co.(a)		1,449,543
	34,798	Catalent, Inc.*^(a)		870,994
	5,000	Eisai Co., Ltd.(a)		330,556
	24,923	Eli Lilly & Co.(a)		2,100,012
	21,683	Johnson & Johnson Co.(a)		2,227,277
	19,073	Merck & Co., Inc.(a)		1,007,436
	28,771	Mylan NV*(a)		1,555,648
	20,260	Novartis AG, Registered Shares(a)		1,732,275
	17,900	Otsuka Holdings Co., Ltd.(a)		633,321


Shares			Fair Value
	Common Stocks, continued
	Pharmaceuticals, continued
	74,942	Pfizer, Inc.(a)#	$	2,419,127
	5,180	Roche Holding AG(a)		1,427,974
	20,749	Sanofi-Aventis SA(a)		1,770,184
	2,300	Sawai Pharmaceutical Co., Ltd.(a)		157,489
	8,592	Shire plc(a)		588,759
	432,000	Sino Biopharmaceutical, Ltd.(a)		390,524
	35,121	Teva Pharmaceutical Industries, Ltd., ADR(a)		2,305,342
	12,395	Zoetis, Inc.(a)		593,968

				27,042,831

	Professional Services (0.1%):
	11,345	Randstad Holding NV(a)		705,617

	Real Estate Investment Trusts (REITs) (0.7%):
	1,336	American Tower Corp.(a)		129,525
	448	AvalonBay Communities, Inc.(a)		82,490
	519	Boston Properties, Inc.(a)		66,193
	8,940	Crown Castle International Corp.(a)		772,864
	188	Equinix, Inc.^(a)		56,851
	1,221	Equity Residential Property Trust(a)		99,621
	213	Essex Property Trust, Inc.(a)		50,994
	491,670	Fibra UNO Amdinistracion SA(a)		1,084,197
	1,921	General Growth Properties, Inc.(a)		52,270
	1,458	HCP, Inc.(a)		55,754
	2,394	Host Hotels & Resorts, Inc.(a)		36,724
	1,914	Land Securities Group plc(a)		33,178
	463	Macerich Co. (The)(a)		37,359
	55,280	Merlin Properties Socimi SA^(a)		689,768
	18,829	ProLogis, Inc.(a)		808,142
	479	Public Storage, Inc.(a)		118,648
	783	Realty Income Corp.^(a)		40,426
	13,342	Scentre Group(a)		40,423
	1,028	Simon Property Group, Inc.(a)		199,885
	335	SL Green Realty Corp.(a)		37,848
	3,859	Unibail-Rodamco SE(a)		978,332
	1,010	Ventas, Inc.(a)		56,994
	551	Vornado Realty Trust(a)		55,078
	1,193	Welltower, Inc.(a)		81,160
	1,625	Weyerhaeuser Co.(a)		48,718

				5,713,442

	Real Estate Management & Development (1.4%):
	2,242	Brookfield Asset Management, Inc., Class A(a)		70,736
	15,085	Brookfield Asset Management, Inc., Class A(a)		475,630
	684,700	CapitaLand, Ltd.(a)		1,607,654
	6,500	Cheung Kong Property Holdings, Ltd.(a)		41,934
	330,000	China Resources Land, Ltd.(a)		951,817
	42,000	Daikyo, Inc.(a)		68,155
	5,000	Daito Trust Construction Co., Ltd.(a)		578,945
	1,500	Daiwa House Industry Co., Ltd.(a)		43,011
	1,185,200	Global Logistic Properties, Ltd.(a)		1,785,285
	71,000	Mitsubishi Estate Co., Ltd.(a)		1,471,798
	2,000	Mitsui Fudosan Co., Ltd.(a)		50,121


Shares			Fair Value
	Common Stocks, continued
	Real Estate Management & Development, continued
	116,666	Sun Hung Kai Properties, Ltd.(a)	$	1,400,253
	67,467	The St. Joe Co.*^(a)		1,248,814
	12,694	Vonovia SE(a)		393,140
	234,000	Wharf Holdings, Ltd. (The)(a)		1,291,650

				11,478,943

	Road & Rail (0.5%):
	7,319	Canadian National Railway Co.(a)		408,986
	263,932	CAR, Inc.*^(a)		436,197
	20,975	CSX Corp.(a)		544,301
	22,200	East Japan Railway Co.(a)		2,086,666
	5,200	Kansas City Southern(a)		388,284
	37,000	Nippon Express Co., Ltd.(a)		173,622
	9,700	Seino Holdings Co., Ltd.(a)		100,856

				4,138,912

	Semiconductors & Semiconductor Equipment (0.7%):
	1,183	Applied Materials, Inc.(a)		22,087
	245	Avago Technologies, Ltd.(a)		35,562
	530	Broadcom Corp., Class A(a)		30,645
	34,487	Intel Corp.(a)		1,188,076
	1,630	KLA-Tencor Corp.(a)		113,041
	52,294	Micron Technology, Inc.*(a)		740,483
	4,959	Qorvo, Inc.*(a)		252,413
	23,600	ROHM Co., Ltd.(a)		1,192,822
	18,551	SK Hynix, Inc.(a)		479,028
	1,984	Skyworks Solutions, Inc.(a)		152,431
	49,700	SUMCO Corp.^(a)		373,432
	175,000	Taiwan Semiconductor Manufacturing Co., Ltd.(a)		755,276
	4,784	Texas Instruments, Inc.(a)		262,211

				5,597,507

	Software (1.7%):
	23,890	Activision Blizzard, Inc.^(a)		924,782
	2,800	Adobe Systems, Inc.*(a)		263,032
	2,110	Check Point Software Technologies, Ltd.*^(a)		171,712
	2,228	Electronic Arts, Inc.*(a)		153,108
	17,900	Gungho Online Enetertainment, Inc.^(a)		48,734
	2,065	Intuit, Inc.(a)		199,273
	55,896	Microsoft Corp.(a)		3,101,110
	26,022	Mobileye NV*^(a)		1,100,210
	9,300	Nexon Co., Ltd.(a)		150,981
	7,200	Nintendo Co., Ltd.(a)		991,289
	20,945	Nuance Communications, Inc.*(a)		416,596
	51,988	Oracle Corp.(a)		1,899,122
	570	Salesforce.com, Inc.*(a)		44,688
	631	SAP AG(a)		50,253
	6,200	Trend Micro, Inc.(a)		251,536
	68,532	Uber Technologies, Inc.*(a)(b)		3,342,456
	22,359	UbiSoft Entertainment SA*(a)		646,787
	5,448	VMware, Inc., Class A*(a)		308,193

				14,063,862


Shares			Fair Value
	Common Stocks, continued
	Specialty Retail (0.5%):
	2,000	Autobacs Seven Co., Ltd.(a)	$	36,527
	7,993	Bed Bath & Beyond, Inc.*^(a)		385,662
	1,316	Home Depot, Inc. (The)(a)		174,041
	19,946	Industria de Diseno Textil SA(a)		684,379
	2,044	Lowe’s Cos., Inc.(a)		155,426
	20,400	Sanrio Co., Ltd.^(a)		477,668
	900	Shimamura Co., Ltd.^(a)		105,205
	6,997	Tiffany & Co.^(a)		533,801
	26,694	Urban Outfitters, Inc.*(a)		607,288
	2,692	Williams-Sonoma, Inc.(a)		157,240
	111,800	Yamada Denki Co., Ltd.^(a)		483,548
	229,760	Zhongsheng Group Holdings, Ltd.^(a)		138,068

				3,938,853

	Technology Hardware, Storage & Peripherals (0.9%):
	42,438	Apple, Inc.(a)#		4,467,024
	1,976	EMC Corp.(a)		50,744
	37,309	Hewlett Packard Enterprise Co.(a)		567,097
	50,417	HP, Inc.(a)		596,937
	215,000	NEC Corp.(a)		682,987
	26,149	Pure Storage, Inc., Class A*^(a)		407,140
	101	Samsung Electronics Co., Ltd.(a)		107,874
	3,779	Western Digital Corp.^(a)		226,929

				7,106,732

	Textiles, Apparel & Luxury Goods (0.1%):
	22,863	Michael Kors Holdings, Ltd.*^(a)		915,892
	1,578	Nike, Inc., Class B(a)		98,625

				1,014,517

	Tobacco (0.3%):
	2,831	Altria Group, Inc.(a)		164,793
	1,310	British American Tobacco plc(a)		72,746
	677	Imperial Tobacco Group plc(a)		35,602
	12,600	Japan Tobacco, Inc.(a)		462,694
	20,561	Philip Morris International, Inc.(a)		1,807,517
	812	Reynolds American, Inc.(a)		37,474

				2,580,826

	Trading Companies & Distributors (0.5%):
	41,700	Mitsubishi Corp.(a)		692,867
	65,200	Mitsui & Co., Ltd.(a)		774,464
	64,300	Sumitomo Corp.(a)		654,981
	12,800	Toyota Tsushu Corp.(a)		299,423
	16,962	United Rentals, Inc.*^(a)		1,230,423
	32,255	Univar, Inc.*^(a)		548,658

				4,200,816

	Transportation Infrastructure (0.1%):
	2,956	Aena SA*(a)		336,739
	724	Aeroports de Paris(a)		83,933
	2,733	Fraport AG^(a)		174,358
	12,104	Groupe Eurotunnel SA(a)		150,192
	6,000	Kamigumi Co., Ltd.(a)		51,653

				796,875


Shares			Fair Value
	Common Stocks, continued
	Water Utilities (0.1%):
	15,578	American Water Works Co., Inc.(a)	$	930,786

	Wireless Telecommunication Services (0.6%):
	375,531	America Movil SAB de C.V., Series L(a)		264,188
	30,360	America Movil SAB de C.V., Series L, ADR(a)		426,862
	314,500	Axiata Group Berhad(a)		469,273
	35,200	KDDI Corp.(a)		911,335
	421,554	Vodafone Group plc(a)		1,363,334
	44,788	Vodafone Group plc, ADR(a)		1,444,861

				4,879,853

	Total Common Stocks (Cost $412,876,109)			416,253,629

	Preferred Stocks (2.1%):
	Automobiles (0.1%):
	8,493	Volkswagen AG, 3.65%(a)		1,230,211

	Banks (0.6%):
	26,982	Citigroup Capital XIII, 0.62%^(a)		701,262
	15,683	HSBC Holdings plc, Series 2, 1.23%(a)		408,856
	23,033	RBS Capital Fund Trust V, Series E, 0.96%(a)		565,230
	27,501	RBS Capital Funding Trust VII, Series G, 0.97%(a)		685,600
	15,719	Royal Bank of Scotland Group plc, Series T, ADR(a)		406,336
	15,159	U.S. Bancorp, Series F, Series F, 0.91%^(a)		435,063
	7,909	U.S. Bancorp, Series G, Series G, 0.89%(a)		212,119
	576,000	USB Capital IX, 3.50%(a)		443,520

				3,857,986

	Capital Markets (0.0%):
	134,000	Deutsche Bank Capital Funding Trust VII, 5.63%(a)		134,176

	Consumer Finance (0.1%):
	36,300	GMAC Capital Trust I, 1.28%(a)		920,568

	Food & Staples Retailing (0.0%):
	11,174	Companhia Brasileira de Destribuicao Grupo Pao de Acucar, Series A, 2.89%(a)		118,266

	Health Care Providers & Services (0.2%):
	19,462	Anthem, Inc.(a)		900,118
	143,925	Grand Rounds, Inc., Series C*(a)(b)		411,395

				1,311,513

	Internet Software & Services (0.2%):
	63,925	Lookout, Inc., Series F*(a)(b)		730,222
	116,157	Palantir Technologies, Inc., Series I*(a)(b)		1,108,137

				1,838,359

	Multi-Utilities (0.0%):
	7,500	Dominion Resources, Inc., 1.66%(a)		360,600

	Pharmaceuticals (0.5%):
	2,159	Allergan plc, Series A(a)		2,224,159
	2,004	Teva Pharmaceutical Industries, Ltd., 0.11%(a)		2,038,786

				4,262,945


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Preferred Stocks, continued
	Real Estate Investment Trusts (REITs) (0.1%):
	3,376	American Tower Corp., Series A(a)	$	344,774
	13,344	Welltower, Inc., Series I, 5.34%(a)		812,783

				1,157,557

	Real Estate Management & Development (0.0%):
	15,600	Forestar Group, Inc., 2.47%(a)		236,418

	Technology Hardware, Storage & Peripherals (0.3%):
	2,383	Samsung Electronics Co., Ltd., 1.89%(a)		2,205,914

	Total Preferred Stocks (Cost $17,531,636)			17,634,513

	Warrant (0.0%):
	Paper & Forest Products (0.0%):
	157,250	TFS Corp., Ltd.*(a)(c)		51,551

	Total Warrant (Cost $–)			51,551

	Convertible Preferred Stocks (0.2%):
	Banks (0.0%):
	272	Wells Fargo & Co., Series L, Class A, 0.13%(a)		315,010

	Internet Software & Services (0.1%):
	144,482	Domo, Inc., Series E, 0.00%*(a)(b)		1,219,009

	Metals & Mining (0.0%):
	11,422	Cliffs Natural Resources, Inc., Series A, 19.31%(a)		16,562

	Real Estate Investment Trusts (REITs) (0.1%):
	8,784	Crown Castle International Corp., Series A, 0.00%(a)		942,260

	Total Convertible Preferred Stocks (Cost $2,676,747)			2,492,841

	Private Placements (0.5%):
	Communications Equipment (0.5%):
$	3,065,000	AliphCom, Inc., 12.00%, 4/1/20(a)(d)		4,358,430

	Diversified Financial Services (0.0%):
	268,000	Project Samson BND Corp., 12.00%, 4/1/20(a)(d)		380,292

	Total Private Placements (Cost $3,333,000)			4,738,722

	Convertible Bonds (1.2%):
	Biotechnology (0.2%):
	178,000	BioMarin Pharmaceutical, Inc., 0.75%, 10/15/18(a)		228,508
	175,000	BioMarin Pharmaceutical, Inc., 1.50%, 10/15/20(a)		233,844
	295,000	Gilead Sciences, Inc., Series D, 1.63%, 5/1/16(a)		1,318,096

				1,780,448

	Diversified Financial Services (0.1%):
	600,000	Telecom Italia Finance SA, Registered Shares, 6.13%, 11/15/16+(a)(c)		960,339

	Diversified Telecommunication Services (0.2%):
	300,000	Telefonica SA, Series TIT, 6.00%, 7/24/17+(a)(c)		406,400
	900,000	Telefonica SA, Series TEF, 4.90%, 9/25/17+(a)		931,490

				1,337,890


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Convertible Bonds, continued
	Electrical Equipment (0.1%):
$	478,000	Suzlon Energy, Ltd., Series SUEL, 3.25%, 7/16/19(a)(c)(e)	$	587,940

	Food Products (0.0%):
	400,000	REI Agro, Ltd., Registered Shares, 5.50%, 11/13/14(a)(b)(f)		2,000

	Internet Software & Services (0.1%):
	430,000	SINA Corp., 1.00%, 12/1/18, Callable 12/1/16 @ 100(a)		415,488
	375,000	Twitter, Inc., 1.00%, 9/15/21(a)		313,359

				728,847

	Oil, Gas & Consumable Fuels (0.3%):
	936,000	Cobalt International Energy, Inc., 2.63%, 12/1/19(a)		524,746
	1,146,000	Cobalt International Energy, Inc., 3.13%, 5/15/24(a)		598,784
	1,123,330	Dana Gas Sukuk, Ltd., 7.00%, 10/31/17(a)(c)		966,064

				2,089,594

	Real Estate Management & Development (0.1%):
	750,000	CapitaLand, Ltd., 2.10%, 11/15/16+(a)(c)		525,868
	750,000	CapitaLand, Ltd., 1.95%, 10/17/23+(a)(c)		541,081

				1,066,949

	Semiconductors & Semiconductor Equipment (0.0%):
	246,000	Intel Corp., 3.25%, 8/1/39(a)		409,129

	Software (0.1%):
	340,000	Take-Two Interactive Software, Inc., 1.75%, 12/1/16(a)		620,925

	Total Convertible Bonds (Cost $10,110,839)			9,584,061

	Floating Rate Loans (1.0%):
	Biotechnology (0.1%):
	1,115,961	Grifols Worldwide Operations USA, 3.19%, 3/3/21(a)(e)		1,104,243

	Capital Markets (0.1%):
	103,544	Sheridan Production Partners, 4.25%, 12/2/20(a)(d)(e)		58,761
	744,179	Sheridan Production Partners, 4.25%, 12/2/20(a)(d)(e)		422,321
	38,627	Sheridan Production Partners, 4.25%, 12/2/20(a)(d)(e)		21,921

				503,003

	Commercial Services & Supplies (0.1%):
	964,472	Promontoria Blue Holding 2 BV, 0.00%, 4/17/20(a)(d)(e)		1,041,709

	Energy Equipment & Services (0.1%):
	373,237	Drillships Financing Holdings, Inc., 5.50%, 3/31/21(a)(e)		147,895
	1,286,603	Seadrill, Ltd., 4.00%, 2/21/21(a)(e)		531,792

				679,687


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Floating Rate Loans, continued
	Hotels, Restaurants & Leisure (0.2%):
$	1,460,648	Hilton Worldwide Finance LLC, 3.50%, 10/25/20(a)(e)	$	1,456,544

	Independent Power and Renewable Electricity Producers (0.1%):
	603,488	Calpine Corp., 3.50%, 6/15/22(a)(e)		574,218

	Marine (0.0%):
	473,214	Drillships Ocean Ventures, Inc., 3.50%, 7/9/21(a)(e)		221,228

	Media (0.1%):
	1,099,687	Univision Communications, Inc., 4.00%, 3/1/20(a)(e)		1,074,394

	Metals & Mining (0.0%):
	349,125	Novelis, Inc., 0.00%, 6/15/22(a)(e)		332,168

	Oil, Gas & Consumable Fuels (0.0%):
	405,533	Fieldwood Energy LLC, 8.38%, 9/20/20(a)(e)		60,830

	Pharmaceuticals (0.1%):
	605,000	ENDO Luxembourg Finance Co., 0.00%, 6/30/22(a)(e)		596,179
	187,249	Mallinckrodt International Finance SA, 3.25%, 2/24/21(a)(e)		181,163

				777,342

	Trading Companies & Distributors (0.1%):
	585,000	Univar USA, Inc., 0.00%, 6/30/22(a)(e)		565,092

	Total Floating Rate Loans (Cost $10,406,425)			8,390,458

	Corporate Bonds (3.4%):
	Automobiles (0.1%):
	620,000	General Motors Financial Co., Inc., 3.50%, 7/10/19(a)		622,077
	327,000	Volkswagen AG, Registered Shares, 2.45%, 11/20/19(a)(c)		313,436

				935,513

	Banks (1.0%):
	558,000	Bank of America Corp., 2.00%, 1/11/18, MTN(a)		557,289
	332,000	Bank of America Corp., 1.66%, 3/22/18, MTN(a)(e)		333,065
	385,000	Bank of America Corp., 2.60%, 1/15/19(a)		386,255
	365,000	Capital One Bank USA NA, Series BNKT, 2.15%, 11/21/18, Callable 10/21/18 @ 100(a)		361,855
	1,124,000	Citigroup, Inc., 1.80%, 2/5/18(a)		1,119,697
	298,000	Citigroup, Inc., Series A, 5.95%, 12/29/49, Callable 1/30/23 @ 100(a)(e)		291,593
	829,000	Citigroup, Inc., Series O, 5.88%, 12/29/49, Callable 3/27/20 @ 100(a)(e)		822,783
	210,000	HSBC USA, Inc., 1.63%, 1/16/18(a)		208,960
	323,000	JPMorgan Chase & Co., 4.35%, 8/15/21(a)		343,747
	1,565,000	JPMorgan Chase & Co., Series X, 6.10%, 10/29/49, Callable 10/1/24 @ 100(a)(e)		1,572,981


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Banks, continued
$	778,000	JPMorgan Chase & Co., Series Q, 5.15%, 12/29/49, Callable 5/1/23 @ 100, Perpetual Bond(a)(e)	$	735,210
	391,000	Merrill Lynch & Co., 6.88%, 4/25/18, MTN(a)		431,373

				7,164,808

	Biotechnology (0.1%):
	849,000	AbbVie, Inc., 2.50%, 5/14/20, Callable 4/14/20 @ 100(a)		840,464

	Capital Markets (0.3%):
	595,000	Ford Motor Credit Co. LLC, 5.00%, 5/15/18(a)		624,985
	662,000	Goldman Sachs Group, Inc. (The), Series L, 5.70%, 12/29/49, Callable 5/10/19 @ 100^(a)(e)		657,863
	695,000	Goldman Sachs Group, Inc. (The), Series M, 5.37%, 12/31/49, Callable 5/10/20 @ 100(a)(e)		689,787
	268,000	Morgan Stanley, Series G, 7.30%, 5/13/19(a)		307,854
	509,000	Morgan Stanley, Series H, 5.45%, 7/29/49, Callable 7/15/19 @ 100(a)(e)		496,911

				2,777,400

	Communications Equipment (0.2%):
	1,380,000	QUALCOMM, Inc., 3.00%, 5/20/22^(a)		1,366,170

	Consumer Finance (0.4%):
	628,000	Ally Financial, Inc., 2.75%, 1/30/17(a)		626,430
	431,000	Ally Financial, Inc., 3.50%, 1/27/19(a)		425,074
	430,000	American Express Co., Series C, 4.95%, 12/29/49, Callable 3/15/20 @ 100(a)(e)		408,500
	773,000	Ford Motor Credit Co. LLC, 1.72%, 12/6/17(a)		761,094
	408,000	Ford Motor Credit Co. LLC, 2.38%, 1/16/18(a)		407,026
	255,000	Hyundai Capital America, 2.00%, 3/19/18(a)		251,969
	198,000	Synchrony Financial, 3.75%, 8/15/21, Callable 6/15/21 @ 100(a)		197,783

				3,077,876

	Diversified Financial Services (0.2%):
	567,978	Delta Topco, Ltd., 10.00%, 11/24/60(a)(b)		569,682
	88,000	General Electric Capital Corp., Series A, 5.55%, 5/4/20, MTN(a)		99,530
	460,000	General Electric Capital Corp., 6.38%, 11/15/67, Callable 11/15/17 @ 100(a)(e)		480,378

				1,149,590

	Diversified Telecommunication Services (0.3%):
	988,000	AT&T, Inc., 2.38%, 11/27/18(a)		994,731
	1,620,000	AT&T, Inc., 3.00%, 6/30/22, Callable 4/30/22 @ 100(a)		1,581,151


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Diversified Telecommunication Services, continued
$	110,000	Hughes Satellite Systems Corp., 7.63%, 6/15/21(a)	$	116,600

				2,692,482

	Health Care Equipment & Supplies (0.1%):
	890,000	Medtronic, Inc., 3.15%, 3/15/22(a)		899,716

	Industrial Conglomerates (0.1%):
	710,580	General Electric Co., Series B, 4.10%, 12/29/49, Callable 12/15/22 @ 100(a)(e)		708,804

	Internet Software & Services (0.0%):
	266,000	eBay, Inc., 2.20%, 8/1/19, Callable 7/1/19 @ 100(a)		262,978

	IT Services (0.0%):
	263,000	Xerox Corp., 6.35%, 5/15/18^(a)		281,174

	Media (0.1%):
	245,000	Cablevision Systems Corp., 5.88%, 9/15/22^(a)		208,250
	200,000	NBCUniversal Enterprise, Inc., 5.25%, 12/31/2099, Callable 3/19/21 @ 100(a)		212,000

				420,250

	Oil, Gas & Consumable Fuels (0.0%):
	399,000	Chesapeake Energy Corp., 3.57%, 4/15/19, Callable 2/8/16 @ 101(a)(e)		111,720
	270,000	Sabine Pass Liquefaction LLC, 5.63%, 4/15/23, Callable 1/15/23 @ 100(a)		236,925

				348,645

	Personal Products (0.0%):
	234,000	Edgewell Personal Care Co., 4.70%, 5/19/21(a)		236,109
	146,000	Edgewell Personal Care Co., 4.70%, 5/24/22(a)		144,933

				381,042

	Pharmaceuticals (0.2%):
	510,000	Forest Laboratories, Inc., 4.38%, 2/1/19(a)		534,264
	361,000	Forest Laboratories, Inc., 5.00%, 12/15/21, Callable 9/16/21 @ 100(a)		392,264
	553,000	Mylan, Inc., 2.55%, 3/28/19(a)		545,764

				1,472,292

	Real Estate Investment Trusts (REITs) (0.0%):
	162,000	American Tower Corp., 3.40%, 2/15/19(a)		166,178

	Real Estate Management & Development (0.1%):
	1,216,000	Global Logistic Properties, Ltd., 3.88%, 6/4/25(a)		1,187,737

	Technology Hardware, Storage & Peripherals (0.2%):
	1,535,000	Hewlett-Packard Co., 2.85%, 10/5/18, Callable 9/5/18 @ 100(a)		1,534,143

	Total Corporate Bonds (Cost $28,084,508)			27,667,262


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Foreign Bonds (8.7%):
	Banks (0.2%):
$	610,000	Lloyds TSB Bank plc, Series E, 13.00%, 1/29/49, Callable 1/21/29 @ 100+(a)(e)	$	1,553,762

	Metals & Mining (0.0%):
	270,000	Constellium NV, 7.00%, 1/15/23, Callable 1/15/18 @ 105.25+(a)		238,740

	Sovereign Bonds (8.5%):
	11,711,000	Brazil Nota do Tesouro Nacional, Series NTNF, 4.61%, 1/1/21+(a)(g)(h)		2,357,059
	1,025,000	Buoni del Tesoro Poliennali, 2.50%, 12/1/24+(a)		1,209,618
	3,606,000	Buoni del Tesoro Poliennali, 1.50%, 6/1/25+(a)		3,920,913
	159,750,000	Government of Japan, Series 350, 0.10%, 3/15/17+(a)		1,331,755
	3,768,000	Government of Poland, 5.75%, 10/25/21+(a)		1,133,306
	423,160,000	Hungary Government Bond, Series 25/B, 5.50%, 6/24/25+(a)		1,708,187
	26,500,000,000	Indonesia Government, Series FR53, 8.25%, 7/15/21+(a)		1,875,731
	2,862,000,000	Indonesia Government, Series FR70, 8.38%, 3/15/24+(a)		201,933
	340,000,000	Japan Treasury Discount Bill, Series 543, 0.04%, 1/13/16+(a)(g)		2,829,047
	330,000,000	Japan Treasury Discount Bill, Series 564, 0.00%, 1/25/16+(a)(g)		2,745,870
	410,000,000	Japan Treasury Discount Bill, Series 549, 0.00%, 2/10/16+(a)(g)		3,411,611
	390,000,000	Japan Treasury Discount Bill, Series 570, 0.00%, 2/22/16+(a)(g)		3,245,210
	830,000,000	Japan Treasury Discount Bill, Series 572, 0.00%, 2/29/16+(a)(g)		6,906,494
	840,000,000	Japan Treasury Discount Bill, Series 573, 0.00%, 3/7/16+(a)(g)		6,989,732
	430,000,000	Japan Treasury Discount Bill, Series 574, 0.00%, 3/14/16+(a)(g)		3,578,092
	580,000,000	Japan Treasury Discount Bill, Series 576, 0.00%, 3/22/16+(a)(g)		4,826,282
	74,661,200	Mexican Bonos Desarr, Series M, 6.50%, 6/10/21+(a)(e)(i)		4,483,330
	205,624,300	Mexican Cetes, Series BI, 0.00%, 1/7/16+(a)(i)		1,192,843
	123,424,300	Mexican Cetes, Series BI, 0.00%, 2/18/16+(a)(i)		713,501
	206,000,000	Mexican Cetes, Series BI, 0.00%, 3/31/16+(a)(i)		1,185,899
	262,000,000	Mexican Cetes, Series BI, 0.00%, 4/14/16+(a)(i)		1,506,165
	7,659,000	Poland Government Bond, Series 1020, 5.25%, 10/25/20+(a)		2,223,020
	5,159,000	Poland Government Bond, Series 0725, 3.25%, 7/25/25+(a)		1,355,112


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Foreign Bonds, continued
	Sovereign Bonds, continued
$	6,361,498	United Kingdom Treasury, 2.00%, 9/7/25+(a)	$	9,426,678

				70,357,388

	Total Foreign Bonds (Cost $74,080,802)			72,149,890

	Yankee Dollars (3.2%):
	Banks (0.8%):
	450,000	Banco Santander Chile SA, 2.33%, 6/7/18(a)(e)		450,000
	1,181,000	BNP Paribas SA, 2.40%, 12/12/18(a)		1,190,286
	1,275,000	HSBC Holdings plc, 6.38%, 12/29/49, Callable 9/17/24 @ 100^(a)(e)		1,259,063
	325,000	ING Groep NV, 6.00%, 12/31/49, Callable 4/16/20 @ 100^(a)(e)		325,000
	221,000	Intesa Sanpaolo SpA, 3.88%, 1/16/18(a)		226,616
	1,065,000	Intesa Sanpaolo SpA, 3.88%, 1/15/19(a)		1,096,552
	200,000	Lloyds Bank plc, 2.30%, 11/27/18(a)		200,794
	250,000	Rabobank Nederland, 3.95%, 11/9/22^(a)		253,056
	455,000	Standard Chartered plc, 6.50%, 12/31/49, Callable 4/2/20 @ 100^(a)(e)		438,770
	460,000	Sumitomo Mitsui Banking Corp., 2.45%, 1/10/19(a)		461,641
	366,000	UBS AG Stamford CT, 2.38%, 8/14/19(a)		365,572

				6,267,350

	Capital Markets (0.2%):
	400,000	CSG Guernsey I, Ltd., Registered Shares, 7.88%, 2/24/41, Callable 8/24/16 @ 100(a)(c)(e)		412,000
	475,000	Deutsche Bank AG, 1.88%, 2/13/18(a)		470,961
	495,000	UBS Group AG, 4.13%, 9/24/25(a)(c)		494,487

				1,377,448

	Diversified Financial Services (0.2%):
	253,000	Export-Import Bank of Korea, 2.88%, 9/17/18(a)		256,889
	811,000	Export-Import Bank of Korea, 2.63%, 12/30/20^(a)		809,989
	255,000	GE Capital International Holdings, Ltd., 2.34%, 11/15/20(a)(c)		252,873
	222,000	Volkswagen International Finance NV, Registered Shares, 4.00%, 8/12/20(a)(c)		223,624

				1,543,375

	Diversified Telecommunication Services (0.1%):
	568,000	Intelsat Jackson Holdings SA, 7.50%, 4/1/21, Callable 4/1/16 @ 103.75^(a)		494,160
	572,000	Telecom Italia SpA, 5.30%, 5/30/24(a)(c)		564,850

				1,059,010

	Electric Utilities (0.0%):
	85,000	Empresa Distribuidora Y Comercializadora Norte SA, 9.75%, 10/25/22, Callable 10/25/18 @ 104.88(a)(c)		81,600


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Yankee Dollars, continued
	Energy Equipment & Services (0.1%):
$	562,000	Petroleos Mexicanos, 5.75%, 3/1/18(a)	$	585,042

	Industrial Conglomerates (0.1%):
	400,000	Hutchison Whampoa International 11, Ltd., 3.50%, 1/13/17(a)(c)		406,771
	400,000	Odebrecht Finance, Ltd., 4.38%, 4/25/25(a)(c)		208,000

				614,771

	Internet Software & Services (0.1%):
	670,000	Alibaba Group Holding, Ltd., 3.13%, 11/28/21, Callable 9/28/21 @ 100(a)		649,816
	313,000	Alibaba Group Holding, Ltd., 3.60%, 11/28/24, Callable 8/28/24 @ 100^(a)		298,991

				948,807

	Media (0.0%):
	200,000	Unitymedia Hessen, 5.50%, 1/15/23, Callable 1/15/18 @ 103(a)(c)		199,500

	Metals & Mining (0.1%):
	192,000	First Quantum Minerals, Ltd., Registered Shares, 6.75%, 2/15/20, Callable 2/15/17 @ 103.38(a)(c)		124,560
	804,000	First Quantum Minerals, Ltd., Registered Shares, 7.00%, 2/15/21, Callable 2/15/18 @ 103.5(a)(c)		504,510

				629,070

	Oil, Gas & Consumable Fuels (0.3%):
	152,000	Petrobras Global Finance BV, 2.46%, 1/15/19(a)(e)		115,520
	775,000	Petroleos Mexicanos, 3.50%, 7/23/20^(a)(c)		733,538
	494,000	YPF SA, 8.88%, 12/19/18(a)(c)		499,558
	1,481,000	YPF Sociedad Anonima, 8.50%, 7/28/25(a)(c)		1,410,652

				2,759,268

	Paper & Forest Products (0.2%):
	1,287,000	TFS Corp., Ltd., 11.00%, 7/15/18, Callable 2/8/16 @ 108(a)		1,259,651

	Pharmaceuticals (0.1%):
	675,000	Actavis Funding SCS, 3.00%, 3/12/20, Callable 2/12/20 @ 100(a)		674,463

	Real Estate Investment Trusts (REITs) (0.0%):
	316,000	Trust F/1401, 5.25%, 12/15/24(a)(c)		313,630

	Real Estate Management & Development (0.0%):
	200,000	Sun Hung Kai Properties, Ltd., Series E, 4.50%, 2/14/22(a)(c)		212,483

	Road & Rail (0.0%):
	527,380	Inversiones Alsacia SA, 8.00%, 12/31/18, Callable 1/22/16 @ 100(a)(c)		152,940


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Yankee Dollars, continued
	Sovereign Bonds (0.9%):
$	388,000	City of Buenos Aires Agrentina, 8.95%, 2/19/21^(a)(c)	$	409,340
	516,000	Federal Republic of Brazil, 6.00%, 1/17/17^(a)		530,190
	1,610,607	Republic of Argentina, 0.00%, 5/7/24(a)(g)		1,718,518
	781,000	Republic of Colombia, 7.38%, 1/27/17(a)		820,050
	1,740,000	Republic of Hungary, 6.38%, 3/29/21(a)		1,983,600
	480,000	Republic of Indonesia, 6.88%, 1/17/18(a)(c)		520,580
	1,437,000	Republic of Turkey, 6.75%, 4/3/18(a)		1,546,212
	248,000	United Mexican States, 5.95%, 3/19/19(a)		275,280

				7,803,770

	Total Yankee Dollars (Cost $27,171,239)			26,482,178

	U.S. Government Agency Mortgages (0.4%):
	2,940,000	Federal National Mortgage Association, 3.00%, 1/25/46(a)		2,940,027

	Total U.S. Government Agency Mortgages (Cost $2,940,689)			2,940,027

	U.S. Treasury Obligations (23.3%):
	U.S. Treasury Bills (16.7%)
	10,000,000	0.02%, 1/7/16(a)(g)		9,999,960
	669,000	0.05%, 1/14/16(a)(g)		668,979
	4,134,000	0.08%, 1/21/16(a)(g)		4,133,802
	9,500,000	0.04%, 1/28/16(a)(g)		9,499,174
	2,000,000	0.07%, 2/4/16(a)(g)		1,999,826
	16,500,000	0.14%, 2/11/16(a)(g)		16,497,707
	39,000,000	0.20%, 2/18/16(a)(g)		38,994,539
	16,000,000	0.20%, 2/25/16(a)(g)		15,998,064
	15,000,000	0.16%, 3/3/16(a)(g)		14,997,359
	5,000,000	0.19%, 3/10/16(a)(g)		4,998,915
	2,000,000	0.04%, 3/17/16(a)(g)		1,999,594
	8,279,000	0.16%, 3/24/16(a)(g)		8,275,738
	11,731,000	0.07%, 4/14/16(a)(g)		11,724,923

				139,788,580

	U.S. Treasury Inflation Index Notes (0.7%)
	826,100	0.13%, 4/15/20(a)		828,309
	329,600	0.25%, 1/15/25(a)		315,906
	5,035,900	0.38%, 7/15/25(a)		4,889,928

				6,034,143


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	U.S. Treasury Obligations, continued
	U.S. Treasury Notes (5.9%)
$	1,940,000	0.38%, 3/15/16(j)	$	1,940,454
	513,000	2.13%, 8/15/21(a)		522,295
	3,296,500	1.75%, 3/31/22(a)		3,245,764
	4,236,100	1.88%, 8/31/22(a)		4,187,287
	4,530,000	1.75%, 9/30/22(a)		4,440,107
	4,220,000	1.88%, 10/31/22(a)		4,166,592
	2,475,200	2.00%, 2/15/25(a)		2,419,605
	6,565,900	2.13%, 5/15/25(a)		6,480,235
	21,230,600	2.00%, 8/15/25(a)		20,700,662

				48,103,001

	Total U.S. Treasury Obligations (Cost $194,512,408)			193,925,724

	Purchased Swaptions (0.0%):
	Total Purchased Swaptions (Cost $534,945)			72,255

	Collateralized Mortgage Obligation (0.1%):
	459,000	Logistics UK, Class F, Series 2015-1A, 4.20%, 8/20/25(a)(d)(e)		649,635

	Total Collateralized Mortgage Obligation (Cost $687,580)			649,635

	Purchased Options (0.5%):
	Total Purchased Options (Cost $5,543,774)			3,801,434

	Exchange Traded Funds (0.9%):
	4,667	ETFS Platinum Trust (j)		400,569
	5,528	ETFS Physical Palladium Shares (j)		299,452
	124,200	iShares Gold Trust (j)		1,270,566
	50,428	SPDR Gold Trust (j)		5,116,424

	Total Exchange Traded Fund (Cost $9,061,594)			7,087,011

	Securities Held as Collateral for Securities on Loan (4.1%):
	34,359,979	AZL MVP BlackRock Global Allocation Fund Securities Lending Collateral Account(k)		34,359,979

	Total Securities Held as Collateral for Securities on Loan (Cost $34,359,979)			34,359,979

	Unaffiliated Investment Companies (3.1%):
	673,535	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00% (g) (l)		673,535
	25,149,900	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.01% (g)		25,149,900

	Total Unaffiliated Investment Company (Cost $25,823,435)			25,823,435

	Total Investment Securities (Cost $859,735,709)(m) — 102.9%			854,104,605
	Net other assets (liabilities) — (2.9)%			(23,741,755	)

	Net Assets — 100.0%		$	830,362,850

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, 2015:


Country	Percentage
Argentina		0.6	%
Australia		0.2	%
Austria		—	%^NM
Belgium		0.1	%
Bermuda		—	%^NM
Brazil		0.5	%
Canada		0.9	%
Cayman Islands		0.2	%
Chile		0.1	%
China		0.3	%
Colombia		0.1	%
Cyprus		—	%^NM
European Community		0.1	%
France		2.2	%
Germany		1.0	%
Guernsey		—	%^NM
Hong Kong		0.9	%
Hungary		0.4	%
India		0.5	%
Indonesia		0.3	%
Ireland (Republic of)		0.8	%
Israel		0.6	%
Italy		1.5	%


Country	Percentage
Japan		12.2	%
Jersey		0.2	%
Kazakhstan		—	%^NM
Korea, Republic Of		0.4	%
Luxembourg		0.2	%
Malaysia		0.1	%
Mexico		1.5	%
Netherlands		1.8	%
Norway		0.2	%
Poland		0.6	%
Portugal		0.1	%
Republic of Korea (South)		0.2	%
Singapore		0.7	%
Spain		0.8	%
Sweden		0.1	%
Switzerland		1.3	%
Taiwan		0.1	%
Thailand		0.1	%
Turkey		0.2	%
United Arab Emirates		0.2	%
United Kingdom		4.8	%
United States		62.9	%

		100.0	%


Security Description	Proceeds Received			Fair Value			Unrealized Appreciation/ Deprecation
Aeon Co., Ltd.	$	(383,052	)	$	(393,697	)	$	(10,645	)
Autoliv, Inc.		(394,589	)		(390,654	)		3,935
Avery Dennison Corp.		(31,184	)		(30,014	)		1,170
Franklin Resources, Inc.		(303,279	)		(300,341	)		2,938
Gentex Corp.		(374,525	)		(374,074	)		451
T. Rowe Price Group, Inc.		(303,472	)		(316,129	)		(12,657	)
Waddell & Reed Financial, Inc.		(293,544	)		(232,748	)		60,796

	$	(2,083,645	)	$	(2,037,657	)	$	45,988

Cash of $16,163,129 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:


Description	Type		Expiration Date		Number of Contracts			Notional Value			Unrealized Appreciation/ (Depreciation)
E-Mini MSCI Emerging Markets Index March Futures (U.S. Dollar)(a)		Short		3/18/16		(123	)	$	(4,843,125	)	$	(16,290	)
Russell 2000 Mini Index March Futures (U.S. Dollar)(a)		Short		3/18/16		(50	)		(5,657,500	)		(4,030	)
CAC 40 10 Euro January Futures (Euro)(a)		Short		1/15/16		(3	)		(151,206	)		(540	)
S&P 500 Index E-Mini March Futures (U.S. Dollar)(a)		Short		3/18/16		(111	)		(11,296,470	)		(40,096	)
FTSE 100 Index March Futures (British Pounds)(a)		Long		3/18/16		1			91,358			3,313
DJ EURO STOXX 50 March Futures (Euro)(a)		Long		3/18/16		12			427,947			5,934
ASX SPI 200 Index March Futures (Australian Dollar)(a)		Long		3/17/16		1			95,743			6,433
Tokyo Price Index March Futures (Japanese Yen)(a)		Long		3/10/16		47			6,051,964			47,833
U.S. Treasury 10-Year Note March Futures (U.S. Dollar)		Long		3/21/16		131			16,493,719			(74,965	)
NIKKEI 225 Index March Futures (Japanese Yen)(a)		Long		3/10/16		8			624,397			(16,931	)
NASDAQ 100 E-Mini March Futures U.S. Dollar)(a)		Long		3/18/16		7			642,285			2,390
S&P 500 Index E-Mini March Futures (U.S. Dollar)		Long		3/18/16		243			24,730,110			22,500

Total											$	(64,449	)

Description

Counterparty

Put/Call

Strike Price

Expiration
Date

Contracts

Fair
Value

Abbott Laboratories

Citigroup Global Markets

Call

49.00 USD

01/15/16

39,100

639

Activision Blizzard, Inc.

Deutsche Bank

Call

19.00 USD

01/15/16

40,927

814,812

Bank of New York Mellon Corp. (The)

Deutsche Bank

Call

46.00 USD

05/20/16

59,789

43,700

Baxter International, Inc.

Goldman Sachs

Call

72.75 USD

03/18/16

15,855

–

Euro Stoxx 50 Index

Goldman Sachs

Call

3500.00 EUR

03/16/18

424

95,602

Euro Stoxx 50 Index

Morgan Stanley

Call

3450.00 EUR

03/20/17

495

89,202

Euro Stoxx 50 Index

UBS Warburg

Call

3600.00 EUR

06/15/18

206

38,974

Euro Stoxx 50 Index

Citigroup Global Markets

Call

3500.00 EUR

06/16/17

462

75,035

Euro Stoxx 50 Index

Bank of America

Call

3600.00 EUR

09/15/17

477

72,709

Euro Stoxx 50 Index

Deutsche Bank

Call

3426.55 EUR

09/21/18

225

60,188

Euro Stoxx 50 Index

Barclays Bank

Call

3500.00 EUR

12/15/17

488

99,963

Gilead Sciences, Inc.

Citigroup Global Markets

Call

95.00 USD

01/15/16

7,700

53,329

Gilead Sciences, Inc.

Deutsche Bank

Call

99.00 USD

05/20/16

8,091

65,369

Goldman Sachs Group, Inc.

Deutsche Bank

Call

220.00 USD

01/15/16

5,500

Goldman Sachs Group, Inc.

Deutsche Bank

Call

220.00 USD

05/20/16

14,300

13,334

Ingersoll-Rand plc

Morgan Stanley

Call

63.50 USD

01/15/16

13,291

International Business Machines Corp.

Deutsche Bank

Call

182.00 USD

01/15/16

7,500

—

International Business Machines Corp.

Barclays Bank

Call

182.00 USD

01/15/16

7,500

—

Johnson & Johnson

Goldman Sachs

Call

103.00 USD

04/15/16

79,556

262,842

KeyCorp

Deutsche Bank

Call

15.75 USD

05/20/16

79,719

15,530

Merck & Co., Inc.

Goldman Sachs

Call

59.00 USD

01/15/16

78,450

194

MetLife, Inc.

UBS Warburg

Call

50.00 USD

01/20/17

12,874

47,969

MetLife, Inc.

UBS Warburg

Call

52.50 USD

01/20/17

11,800

31,951

Morgan Stanley

Deutsche Bank

Call

40.75 USD

05/20/16

59,789

6,572

MS Japan Custom Index

Morgan Stanley

Call

148.58 JPY

03/11/16

1,520,519

85,209

MS Japan Custom Index

Morgan Stanley

Call

155.62 JPY

03/11/16

391,111

20,024

Nikkei 225

Goldman Sachs

Call

21968.28 JPY

03/09/18

16,713

135,375

Prudential Financial, Inc.

Morgan Stanley

Call

87.50 USD

01/20/17

14,400

80,714

Qualcomm, Inc.

Deutsche Bank

Call

52.50 USD

05/19/17

25,613

120,287

S&P 500 Index

Morgan Stanley

Call

2100.00 USD

01/15/16

977

5,519

S&P 500 Index

Morgan Stanley

Call

2150.00 USD

02/19/16

977

6,370

S&P 500 Index

Morgan Stanley

Call

2200.00 USD

03/18/16

977

4,985

Stoxx Europe 600 Index

Credit Suisse First Boston

Call

355.61 EUR

03/17/17

4,134

133,577

Description

Counterparty

Put/Call

Strike Price

Expiration
Date

Contracts

Fair
Value

Stoxx Europe 600 Index

JPMorgan Chase

Call

380.00 EUR

06/17/16

5,257

49,960

Stoxx Europe 600 Index

JPMorgan Chase

Call

372.06 EUR

09/15/17

3,057

74,854

Stoxx Europe 600 Index

Credit Suisse First Boston

Call

375.00 EUR

09/16/16

6,488

100,762

SunTrust Banks, Inc.

Deutsche Bank

Call

45.50 USD

05/20/16

59,800

86,985

Taiwan Stock Exchange

Citigroup Global Markets

Call

9000.77 TWD

9/22/16

6,700

29,372

Taiwan Stock Exchange Weighted Index

Morgan Stanley

Call

9000.00 TWD

09/20/17

6,476

55,811

Taiwan Stock Exchange Weighted Index

Morgan Stanley

Call

9000.00 TWD

12/20/17

6,603

65,657

Teva Pharmaceutical Industries, Ltd.

Deutsche Bank

Call

63.50 USD

05/20/16

15,900

77,973

Tokyo Stock Exchange Price Index

Citigroup Global Markets

Call

1625.00 JPY

04/08/16

315,481

54,413

Tokyo Stock Exchange Price Index

Citigroup Global Markets

Call

1675.00 JPY

06/10/16

254,440

46,830

Tokyo Stock Exchange Price Index

Morgan Stanley

Call

1675.00 JPY

06/10/16

135,033

24,853

United Continental Holdings, Inc.

Morgan Stanley

Call

60.00 USD

03/18/16

1,004

2,325

Wells Fargo & Co.

Deutsche Bank

Call

59.00 USD

05/20/16

59,789

42,511

Gentex Corp.

UBS Warburg

Put

15.00 USD

03/21/16

8,153

4,060

Ibovespa Brasil Sao Paulo Index

Goldman Sachs

Put

44000.00 BRL

02/17/16

15,719

Ibovespa Brasil Sao Paulo Index

BNP Paribas

Put

46600.00 BRL

02/17/16

35,979

Ibovespa Brasil Sao Paulo Index

Morgan Stanley

Put

47000.00 BRL

02/17/16

44,776

Ibovespa Brasil Sao Paulo Index

Morgan Stanley

Put

15.00 USD

03/18/16

24,177

12,038

Ibovespa Brasil Sao Paulo Index

Bank of America

Put

49122.00 BRL

08/17/16

59,632

Ibovespa Brasil Sao Paulo Index

Bank of America

Put

51369.43 BRL

08/17/16

101

171,783

Russell 2000 Index

Societe Generale

Put

1135.00 USD

01/15/16

944

12,863

Russell 2000 Index

Credit Suisse First Boston

Put

1150.00 USD

01/15/16

1,439

29,091

Russell 2000 Index

Bank of America

Put

1110.00 USD

02/19/16

3,368

68,732

S&P 500 Index

UBS Warburg

Put

2000.00 USD

01/15/16

2,003

19,744

S&P 500 Index

BNP Paribas

Put

1990.00 USD

02/19/16

2,526

71,356

Total

3,738,156

Description

Counterparty

Put/Call

Strike Price

Expiration
Date

Contracts

Fair
Value

Abbott Laboratories

Citigroup Global Markets

Call

55.00 USD

01/15/16

39,100

)

Activision Blizzard, Inc.

Deutsche Bank

Call

24.00 USD

01/15/16

40,927

(610,223

)

Bank of New York Mellon Corp. (The)

Deutsche Bank

Call

51.25 USD

05/20/16

59,789

(11,662

)

Baxter International, Inc.

Goldman Sachs

Call

82.00 USD

03/18/16

15,855

—

General Electric Co.

Deutsche Bank

Call

32.50 USD

01/20/17

65,566

(98,778

)

Gilead Sciences, Inc.

Deutsche Bank

Call

107.50 USD

05/20/16

8,091

(31,890

)

Goldman Sachs Group, Inc.

Deutsche Bank

Call

245.00 USD

05/20/16

14,300

(3,070

)

Ibovespa Brasil Sao Paulo Index

BNP Paribas

Call

51000.00 BRL

02/17/16

(997

)

Ibovespa Brasil Sao Paulo Index

Morgan Stanley

Call

51500.00 BRL

02/17/16

(915

)

Ibovespa Brasil Sao Paulo Index

Bank of America

Call

60785.00 BRL

08/17/16

(3,639

)

Ibovespa Brasil Sao Paulo Index

Bank of America

Call

63004.60 BRL

08/17/16

101

(5,552

)

KeyCorp

Deutsche Bank

Call

17.90 USD

05/20/16

79,719

(5,325

)

Kimberly-Clark Corp.

Goldman Sachs

Call

0.74 GBP

02/19/16

305,000

(11,114

)

Merck & Co., Inc.

Goldman Sachs

Call

65.00 USD

01/15/16

78,450

)

MetLife, Inc.

UBS Warburg

Call

55.00 USD

01/20/17

12,874

(25,024

)

MetLife, Inc.

UBS Warburg

Call

57.50 USD

01/20/17

11,800

(16,425

)

Morgan Stanley

Deutsche Bank

Call

46.00 USD

05/20/16

59,789

(1,302

)

Prudential Financial, Inc.

Morgan Stanley

Call

93.50 USD

01/20/17

14,400

(52,952

)

Qualcomm, Inc.

Deutsche Bank

Call

70.00 USD

05/19/17

25,613

(23,840

)

Russell 2000 Index

Bank of America

Call

1210.00 USD

02/19/16

3,368

(16,402

)

S&P 500 Index

BNP Paribas

Call

2115.00 USD

02/19/16

2,526

(37,928

)

SunTrust Banks, Inc.

Deutsche Bank

Call

51.75 USD

05/20/16

59,800

(20,911

)

Teva Pharmaceutical Industries, Ltd.

Deutsche Bank

Call

73.00 USD

05/20/16

15,900

(15,176

)

United Continental Holdings, Inc.

Citigroup Global Markets

Call

60.00 USD

01/15/16

7,117

(3,208

)

United Continental Holdings, Inc.

Morgan Stanley

Call

70.00 USD

03/18/16

1,004

(350

)

Description

Counterparty

Put/Call

Strike Price

Expiration
Date

Contracts

Fair
Value

Wells Fargo & Co.

Deutsche Bank

Call

66.00 USD

05/20/16

59,789

(5,002

)

Euro Stoxx 50 Index

Goldman Sachs

Put

3050.00 EUR

06/17/16

770

(113,591

)

Euro Stoxx 50 Index

Morgan Stanley

Put

3150.00 EUR

06/17/16

770

(144,816

)

Euro Stoxx 50 Index

Deutsche Bank

Put

2586.07 EUR

09/21/18

225

(62,923

)

Gilead Sciences, Inc.

Deutsche Bank

Put

90.00 USD

05/20/16

8,091

(22,170

)

Ingersoll-Rand plc

Morgan Stanley

Put

56.00 USD

01/15/16

13,291

(14,745

)

MetLife, Inc.

UBS Warburg

Put

45.00 USD

01/20/17

6,437

(23,752

)

MetLife, Inc.

UBS Warburg

Put

46.00 USD

01/20/17

5,900

(24,018

)

MS Japan Custom Index

Morgan Stanley

Put

148.58 JPY

03/11/16

1,520,519

(101,399

)

MS Japan Custom Index

Morgan Stanley

Put

155.62 JPY

03/11/16

391,111

(18,622

)

Mylan NV

Barclays Bank

Put

60.00 USD

01/15/16

6,018

(32,778

)

Nikkei 225

Goldman Sachs

Put

17974.04 JPY

03/09/18

16,713

(262,213

)

Prudential Financial, Inc.

Morgan Stanley

Put

77.50 USD

01/20/17

7,200

(52,837

)

Qualcomm, Inc.

Deutsche Bank

Put

40.00 USD

05/19/17

25,613

(75,320

)

Russell 2000 Index

Societe Generale

Put

1035.00 USD

01/15/16

944

(721

)

Russell 2000 Index

Credit Suisse First Boston

Put

1050.00 USD

01/15/16

1,439

(1,768

)

Russell 2000 Index

Bank of America

Put

1010.00 USD

02/19/16

3,368

(17,250

)

S&P 500 Index

UBS Warburg

Put

1850.00 USD

01/15/16

2,003

(1,268

)

S&P 500 Index

BNP Paribas

Put

1885.00 USD

02/19/16

2,526

(31,398

)

Taiwan Stock Exchange

Citigroup Global Markets

Put

8100.70 TWD

09/21/16

6,700

(107,911

)

Taiwan Stock Exchange Weighted Index

Morgan Stanley

Put

8600.00 TWD

09/20/17

6,476

(241,934

)

Taiwan Stock Exchange Weighted Index

Morgan Stanley

Put

8600.00 TWD

12/20/17

6,603

(257,334

)

Teva Pharmaceutical Industries, Ltd.

Deutsche Bank

Put

55.00 USD

05/20/16

15,900

(14,035

)

Tokyo Stock Exchange Price Index

Citigroup Global Markets

Put

1500.00 JPY

04/08/16

315,481

(105,604

)

Tokyo Stock Exchange Price Index

Morgan Stanley

Put

1450.00 JPY

06/10/16

135,033

(45,042

)

Tokyo Stock Exchange Price Index

Citigroup Global Markets

Put

1475.00 JPY

06/10/16

127,220

(50,335

)

Tokyo Stock Price Index

Citigroup Global Markets

Put

1500.00 JPY

06/10/16

127,220

(59,606

)

Twitter, Inc.

Citigroup Global Markets

Put

30.00 USD

01/15/16

13,679

(97,017

)

United Continental Holdings, Inc.

Morgan Stanley

Put

53.50 USD

03/18/16

1,004

(2,245

)

Total

(2,984,347

)

Over-the-counter interest rate swaptions purchased as of December 31, 2015 were as follows:

Over-the-counter interest rate swaptions written as of December 31, 2015 were as follows:

At December 31, 2015, 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	JPMorgan Chase	1/14/16		2,705,000	$	1,944,652	$	1,969,180	$	(24,528	)
Australian Dollar	Morgan Stanley	1/28/16		661,000		474,096		480,847		(6,751	)
Brazilian Real	Citibank	1/11/16		3,053,000		809,707		768,869		40,838
Brazilian Real	Deutsche Bank	1/11/16		2,872,000		763,424		723,286		40,138
Brazilian Real	Goldman Sachs	1/15/16		5,229,000		1,373,198		1,314,965		58,233
Brazilian Real	Deutsche Bank	1/28/16		2,872,000		731,180		718,830		12,350
Brazilian Real	Morgan Stanley	2/16/16		6,284,000		1,633,183		1,564,575		68,608
Canadian Dollar	Morgan Stanley	1/14/16		2,705,079		1,971,000		1,955,323		15,677
Chilean Peso	Goldman Sachs	3/10/16		540,253,000		756,180		757,249		(1,069	)
Chinese Renminbi	Goldman Sachs	5/17/16		25,350,558		3,815,000		3,873,569		(58,569	)
Chinese Renminbi	Deutsche Bank	3/15/16		12,920,700		1,950,000		1,946,422		3,578
Chinese Renminbi	Deutsche Bank	11/4/16		12,566,000		1,933,796		1,905,961		27,835
European Euro	Goldman Sachs	1/11/16		2,456,000		2,714,128		2,669,397		44,731
European Euro	Goldman Sachs	1/29/16		1,903,000		2,067,495		2,069,239		(1,744	)
Indonesian Rupiah	Credit Suisse First Boston	1/28/16		10,533,983,000		734,587		759,300		(24,713	)
Japanese Yen	JPMorgan Chase	1/7/16		325,254,000		2,639,856		2,706,812		(66,956	)
Japanese Yen	Credit Suisse First Boston	1/8/16		212,979,000		1,726,924		1,772,482		(45,558	)
Japanese Yen	Morgan Stanley	1/13/16		340,000,000		2,780,913		2,829,908		(48,995	)
Japanese Yen	Morgan Stanley	1/14/16		204,135,000		1,686,662		1,699,106		(12,444	)
Japanese Yen	Citibank	1/21/16		230,000,000		1,875,163		1,914,691		(39,528	)
Japanese Yen	Goldman Sachs	1/25/16		330,000,000		2,783,753		2,747,409		36,344
Japanese Yen	Deutsche Bank	1/29/16		212,698,000		1,732,351		1,770,971		(38,620	)
Japanese Yen	Deutsche Bank	2/10/16		410,000,000		3,313,145		3,414,649		(101,504	)
Japanese Yen	Deutsche Bank	2/22/16		390,000,000		3,170,732		3,248,934		(78,202	)
Japanese Yen	Morgan Stanley	2/29/16		830,000,000		6,748,736		6,915,455		(166,719	)
Japanese Yen	Credit Suisse First Boston	3/7/16		840,000,000		6,862,184		7,000,819		(138,635	)
Japanese Yen	HSBC Bank	3/14/16		430,000,000		3,499,349		3,584,800		(85,451	)
Japanese Yen	JPMorgan Chase	3/22/16		580,000,000		4,798,683		4,836,924		(38,241	)
Korean Won	Credit Suisse First Boston	1/25/16		1,769,925,000		1,548,084		1,509,146		38,938
Korean Won	Deutsche Bank	1/25/16		2,151,428,000		1,886,225		1,834,439		51,786
Korean Won	Morgan Stanley	3/9/16		2,227,666,000		1,889,053		1,899,005		(9,952	)


Type of Contract	Counterparty	Delivery Date	Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Malaysian Ringgit	Credit Suisse First Boston	1/22/16		3,342,000	$	783,863	$	777,759	$	6,104
Mexican Peso	HSBC Bank	1/7/16		8,220,000		477,643		476,890		753
Mexican Peso	Morgan Stanley	1/7/16		12,342,430		725,108		716,056		9,052
Mexican Peso	Deutsche Bank	1/8/16		23,660,000		1,407,140		1,372,555		34,585
Mexican Peso	Citibank	1/21/16		13,197,000		796,141		764,862		31,279
Mexican Peso	Credit Suisse First Boston	1/21/16		34,277,532		1,967,000		1,986,632		(19,632	)
Mexican Peso	BNP Paribas	2/18/16		12,314,140		719,734		712,356		7,378
Mexican Peso	Goldman Sachs	3/31/16		20,600,000		1,231,689		1,188,027		43,662
Mexican Peso	JPMorgan Chase	4/14/16		26,200,000		1,558,967		1,509,551		49,416
Singapore Dollar	HSBC Bank	1/7/16		2,236,000		1,568,110		1,577,303		(9,193	)
Singapore Dollar	Deutsche Bank	1/8/16		1,097,000		768,907		773,813		(4,906	)
Singapore Dollar	Morgan Stanley	1/15/16		1,116,000		792,335		787,044		5,291
Taiwanese Dollar	Credit Suisse First Boston	5/12/16		12,832,000		391,100		391,626		(526	)
Taiwanese Dollar	Deutsche Bank	5/12/16		26,133,000		794,969		797,566		(2,597	)

					$	86,596,145	$	86,994,602	$	(398,457	)

Long Contracts:
European Euro	Deutsche Bank	1/11/16		1,138,000	$	1,245,257	$	1,236,879	$	(8,378	)
European Euro	Goldman Sachs	1/11/16		2,456,000		2,691,972		2,669,397		(22,575	)
European Euro	Citibank	1/14/16		369,000		403,011		401,091		(1,920	)
European Euro	Credit Suisse First Boston	1/14/16		738,000		808,575		802,181		(6,394	)
European Euro	Goldman Sachs	1/14/16		723,000		788,997		785,877		(3,120	)
European Euro	Deutsche Bank	1/21/16		735,000		790,176		799,054		8,878
European Euro	Citibank	1/22/16		735,000		800,367		799,073		(1,294	)
European Euro	Credit Suisse First Boston	1/29/16		2,181,000		2,309,308		2,371,523		62,215
European Euro	Goldman Sachs	1/29/16		3,597,000		3,811,439		3,911,220		99,781
Japanese Yen	JPMorgan Chase	1/7/16		325,254,000		2,696,496		2,706,812		10,316
Japanese Yen	Credit Suisse First Boston	1/8/16		212,979,000		1,746,215		1,772,482		26,267
Japanese Yen	Morgan Stanley	1/14/16		204,135,000		1,672,449		1,699,106		26,657
Japanese Yen	Citibank	1/21/16		96,874,000		794,082		806,451		12,369

					$	20,558,344	$	20,761,146	$	202,802

At December 31, 2015, the Fund’s open centrally cleared credit default swap agreements were as follows:


Underlying Instrument	Counterparty	Expiration Date	Implied Credit Spread at December 31, 2015 (%)(d)		Notional Amount ($)(e)		Fixed Rate (%)		Value ($)		Upfront Premiums Paid/ (Received) ($)		Unrealized Appreciation/ (Depreciation) ($)
CDX North America Investment Grade Index Swap Agreement with JPMorgan Chase Bank, N.A., Series 25	JPMorgan Chase	12/20/20		0.88		4,802,000		1.00		25,310		39,107		(13,797	)
iTraxx Crossover Swap Agreement with JPMorgan Chase Bank, N.A., Series 24	JPMorgan Chase	12/20/20		1.36		2,074,269		5.00		187,897		126,469		61,428

										213,207		165,576		47,631

At December 31, 2015, the Fund’s open over-the-counter currency swap agreements were as follows:

At December 31, 2015, the Fund’s open over-the-counter interest rate swap agreements were as follows:

At December 31, 2015, 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) ($)
Pay	3-Month U.S. Dollar LIBOR BBA	0.745		3/11/17		JPMorgan Chase		5,833,000 USD		64		(64	)		(128	)
Pay	3-Month U.S. Dollar LIBOR BBA	1.029		3/11/17		JPMorgan Chase		20,300,000 USD		149		(88,681	)		(88,830	)
Pay	3-Month U.S. Dollar LIBOR BBA	0.768		4/7/17		JPMorgan Chase		10,330,000 USD		115		11,566			11,451
Pay	3-Month U.S. Dollar LIBOR BBA	1.081		4/7/17		JPMorgan Chase		39,600,000 USD		306		(141,010	)		(141,316	)
Pay	3-Month U.S. Dollar LIBOR BBA	1.878		3/11/20		JPMorgan Chase		7,990,000 USD		98		128,260			128,162
Pay	3-Month U.S. Dollar LIBOR BBA	1.952		9/11/22		JPMorgan Chase		4,110,000 USD		63		(26,121	)		(26,184	)
Pay	3-Month U.S. Dollar LIBOR BBA	1.640		10/19/22		JPMorgan Chase		4,120,000 USD		64		72,625			72,561
Pay	3-Month U.S. Dollar LIBOR BBA	0.334		11/3/22		JPMorgan Chase		4,140,000 USD		65		25,493			25,428
Pay	3-Month U.S. Dollar LIBOR BBA	2.276		4/7/25		JPMorgan Chase		90,000 USD		2		1,262			1,260
Pay	3-Month U.S. Dollar LIBOR BBA	2.220		4/7/25		JPMorgan Chase		8,590,000 USD		138		77,957			77,819
Pay	6-Month U.S. Dollar EURLIBOR BBA	1.550		10/20/25		JPMorgan Chase		8,242,000 EUR		138		(44,070	)		(44,208	)

												17,217			16,015

Pay/Receive

Reference Entity

Expiration
Date

Counterparty

Notional
Amount
(Local)

Unrealized
Appreciation/
(Depreciation)

Pay

EURO Stoxx 50 Index Dividends December Futures

12/15/17

BNP Paribas SA

357,346 EUR

(17,586

)

Pay

EURO Stoxx 50 Index Dividends December Futures

12/15/17

BNP Paribas SA

365,440 EUR

(14,720

)

Pay

EURO Stoxx 50 Index Dividends December Futures

12/21/18

BNP Paribas SA

363,120 EUR

(22,960

)

Pay

EURO Stoxx 50 Index Dividends December Futures

12/21/18

BNP Paribas SA

192,100 EUR

(11,390

)

Pay

EURO Stoxx 50 Index Dividends December Futures

12/21/18

BNP Paribas SA

179,040 EUR

(8,960

)

Pay

NIKKEI 225 Dividend Index E-Mini March Futures

3/31/16

BNP Paribas SA

26,350,000 JPY

52,338

Pay

NIKKEI 225 Dividend Index E-Mini March Futures

3/31/16

BNP Paribas SA

26,800,000 JPY

48,594

Pay

NIKKEI 225 Dividend Index E-Mini March Futures

3/31/17

BNP Paribas SA

25,515,000 JPY

62,906

Pay

NIKKEI 225 Dividend Index E-Mini March Futures

3/31/17

BNP Paribas SA

27,850,000 JPY

74,055

Pay

PT Siloam International Hospitals Tbk

2/08/16

Credit Suisse

125,759 USD

2,466

164,743

Consolidated Statement of Assets and Liabilities

December 31, 2015


Assets:
Investment securities, at cost	$	859,735,709

Investment securities, at value*	$	854,104,605
Cash		181,420
Foreign currency, at value (cost $70,312)		73,402
Segregated cash for collateral		17,965,444
Deposits with brokers for securities sold short		1,945,857
Interest and dividends receivable		2,278,104
Unrealized appreciation on forward currency contracts		873,059
Unrealized appreciation on swap agreements		246,175
Receivable for investments sold		1,588,972
Reclaims receivable		85,296
Receivable for variation margin on swaps		218,936
Receivable for variation margin on futures contracts		169,106
Prepaid expenses		15,385

Total Assets		879,745,761

Liabilities:
Cash received as collateral for derivatives		1,950,000
Written options (Proceeds received $3,251,054)		3,044,955
Unrealized depreciation on forward currency contracts		1,068,714
Unrealized depreciation on swap agreements		84,095
Payable for collateral received on loaned securities		34,359,979
Payable for investments purchased		5,603,976
Payable for investments redeemed		86,995
Securities sold short (Proceeds received $2,083,645)		2,037,657
Dividends payable on securities sold short		1,468
Payable for variation margin on futures contracts		6,052
Payable for variation margin on swaps		28,967
Manager fees payable		573,162
Administration fees payable		50,720
Distribution fees payable		167,536
Custodian fees payable		121,234
Administrative and compliance services fees payable		5,351
Trustee fees payable		3,933
Other accrued liabilities		188,117

Total Liabilities		49,382,911

Net Assets	$	830,362,850

Net Assets Consist of:
Capital	$	769,360,926
Accumulated net investment income/(loss)		10,684,714
Accumulated net realized gains/(losses) from investment transactions		55,887,419
Net unrealized appreciation/(depreciation) on investments		(5,570,209	)

Net Assets	$	830,362,850

Shares of beneficial interest (unlimited number of shares authorized, no par value)		71,048,846
Net Asset Value (offering and redemption price per share)	$	11.69

*	Includes securities on loan of $33,154,886

Consolidated Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends	$	9,791,313
Interest		5,931,470
Income from securities lending		314,148
Foreign withholding tax		(530,072	)

Total Investment Income		15,506,859

Expenses:
Manager fees		6,806,890
Administration fees		418,996
Distribution fees		1,989,647
Custodian fees		366,700
Administrative and compliance services fees		25,575
Trustee fees		88,898
Professional fees		81,841
Shareholder reports		64,218
Dividends on securities sold short		39,532
Other expenses		32,610

Net expenses		9,914,907

Net Investment Income/(Loss)		5,591,952

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains (losses) on securities transactions		161,865
Net realized gains (losses) on futures contracts		2,995,356
Net realized gains (losses) on options contracts		46,384
Net realized gains (losses) on securities transactions held short		(31,236	)
Net realized gains (losses) on swap agreements		1,810,289
Net realized gains (losses) on forward currency contracts		9,193,446
Change in net unrealized appreciation/depreciation on investments		(33,614,554	)

Net Realized/Unrealized Gains/(Losses) on Investments		(19,438,450	)

Change in Net Assets Resulting From Operations	$	(13,846,498	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP BlackRock Global Allocation Fund (the “Fund”), and 12 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 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.

During the year ended December 31, 2015, the Fund primarily invested in shares of another mutual fund managed by the Manager, the AZL BlackRock Global Allocation Fund (the “VIP Subsidiary”), a wholly-owned and controlled subsidiary of the Fund.

As of December 31, 2015, the Fund’s aggregate investment in the VIP Subsidiary was $788,609,274, representing 95.0% of the Fund’s net assets.

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

The Fund’s operations have been consolidated with the operations of the VIP Subsidiary and the Cayman Subsidiary.

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.

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 variable 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.

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 or dividend expense if a security that has been sold short has an interest or dividend 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.

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.

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, 2015 are presented on the Fund’s Consolidated Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $43.1 million for the year ended December 31, 2015.

Cash collateral received in connection with securities lending is invested in a collateral account on behalf of the Fund managed by The Dreyfus Corporation, an affiliate of the Custodian and Securities Lending Agent. The collateral account invests in short-term investments that have a remaining maturity of 397 days or less, 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 $31,040 during the year ended December 31, 2015. 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 Statement of Operations. The Fund ceased participation in the program in June 2014.

Pursuant to Rule 17a-7 under the 1940 Act, the Fund may engage in securities transactions with affiliated investment companies and advisory accounts managed by the adviser and sub-adviser. Any such purchase or sale transaction must be effected without a brokerage commission or other remuneration, except for customary transfer fees. The transaction must be effected at the current market price, which is either the security’s last sale price on an exchange or, if there are no transactions in the security that day, at the average of the highest bid and lowest asked price. During the year ending December 31, 2015, the Fund engaged in such affiliated transactions at the current market price.

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, 2015, 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 $107.2 million as of December 31, 2015. The monthly average amount for these contracts was $106.4 million for the year ended December 31, 2015.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $71.1 million as of December 31, 2015. The monthly average notional amount for these contracts was $78.9 million for the year ended December 31, 2015. 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 period ended December 31, 2015:

The Fund had the following transactions in written call and put options during the period ended December 31, 2015:

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, foreign currencies 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.

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.

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 VIP Subsidiary or Cayman 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, 2015, 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 $114.9 million as of December 31, 2015. The monthly average gross notional amount for interest rate swaps was $127.7 million for the year ended December 31, 2015.

Currency swaps are interest rate swaps in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Currency swaps may also involve an exchange of notional amounts at the start, during and/or at expiration of the contract, either at the current spot rate or another specified rate. The gross notional amount of currency swaps outstanding was $13,000 million as of December 31, 2015. The monthly average gross notional amount for currency swaps was $11,000 for the year ended December 31, 2015.

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 $2.5 million as of December 31, 2015. The monthly average gross notional amount for total return swaps was $1.9 million for the year ended December 31, 2015.

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 owed 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, 2015, the Fund entered into 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 $9.8 million as of December 31, 2015. The monthly average gross notional amount for credit default swaps was $5.3 million for the year ended December 31, 2015.

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, 2015:

Asset Derivatives

Liability Derivatives

Primary Risk Exposure

Consolidated Statement of
Assets and Liabilities Location

Total Fair
Value

Consolidated Statement of
Assets and Liabilities Location

Total Fair
Value

Equity Risk Exposure

Futures Contracts

Receivable for variation margin on futures contracts*

88,403

Payable for variation margin on futures contracts*

152,852

Option Contracts

Investment securities, at value (purchased options)

3,801,434

Written options

3,027,358

Total Return Swap Agreements

Unrealized appreciation on swap agreements

240,359

Unrealized depreciation on swap agreements

75,616

Credit Risk Exposure

Credit Default Swap Agreements

Unrealized appreciation on swap agreements*

61,428

Unrealized depreciation on swap agreements*

33,606

Interest Rate Risk

Interest Rate Swap Agreements

Unrealized appreciation on swap agreements**

322,497

Unrealized depreciation on swap agreements*

300,666

Swaption Contracts

Investment securities, at value (purchased options)

72,255

Written options

17,597

Foreign Exchange Rate Risk Exposure

Currency Swap Agreements

Unrealized appreciation on swap agreements

—

Unrealized depreciation on swap agreements

8,479

Forward Currency Contracts

Unrealized appreciation on forward currency contracts

873,059

Unrealized depreciation on forward currency contracts

1,068,714

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, 2015:

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 transact net amounts in accordance with the master netting agreements at December 31, 2015. 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, 2015.

As of December 31, 2015, 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, 2015:

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, 2015:

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 VIP Subsidiary. Pursuant to a portfolio management agreement with BlackRock Investment Management, LLC

(“BlackRock Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the VIP Subsidiary 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 VIP Subsidiary. The Manager receives no fee from the Subsidiary. Expenses incurred by the Fund and the VIP Subsidiary 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 and the VIP Subsidiary to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, acquired fund fees and expenses, 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 and the VIP Subsidiary’s business, based on the daily net assets of the Fund and the VIP Subsidiary, through April 30, 2017.

For the year ended December 31, 2015, 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, 2015, 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 Consolidated Statement of Operations. During the year ended December 31, 2015, there were no voluntary waivers.

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 Consolidated Statement of Operations as “Administrative and compliance services fees.”

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 and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a fee, accrued daily and paid monthly. Prior to April 1, 2015, Citi served as transfer agent for the Trust under the same agreement. The Administrator was 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.” Effective April 1, 2015, the Trust’s transfer agent became SunGard Investor Services, LLC.

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is Senior Counsel. During the year ended December 31, 2015, $8,070 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.

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.

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, 2015 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, 2015, 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, 2015, purchases and sales of long-term U.S. government securities 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, 2015 are identified below.

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”) and 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, 2015 is $865,445,339. 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, 2015 were as follows:

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

At December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying consolidated statement of assets and liabilities of AZL MVP BlackRock Global Allocation Fund and Subsidiary (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the consolidated schedule of portfolio investments, as of December 31, 2015, and 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 years or periods in the four-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, 2015, by correspondence with the custodian, brokers, and transfer agents of the underlying funds 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 AZL MVP BlackRock Global Allocation Fund and Subsidiary as of December 31, 2015, 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 or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2015, 22.60% 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, 2015, the Fund declared net long-term capital gain distributions of $11,828,353.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $1,531,917.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

The Fund’s Statement of Additional Information (“SAI”) contains additional information about the Fund’s Trustees and officers. The SAI is available upon request, without charge, by calling toll free 1-800-624-0197.

What factors affected the Fund’s performance from its inception on April 27, 2015 through the period ended December 31, 2015?

From its inception on April 27, 2015 to the period ended December 31, 2015, the AZL^® MVP DFA Multi-Strategy Fund returned -5.00%. That compared to a -1.61%, -1.26% and a -1.41% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Multi-Strategy Composite Index¹, respectively.

The AZL^® MVP DFA Multi-Strategy Fund is a fund of funds that pursues broad diversification across four equity sub-portfolios and one fixed income sub-portfolio. The five underlying portfolios are managed by Dimensional Fund Advisors. Generally, the Fund allocates 50% to 70% of its assets to the underlying equity funds and between 30% and 50% to the underlying fixed income fund. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process, which is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.*

Fixed income markets experienced modest gains, with the Barclays Aggregate Index gaining 0.55% in 2015. The yield on the 10-year Treasury⁴ note increased 10 basis points (0.10%) to finish the year at 2.27%. Corporate bond spreads widened during the year, resulting in a negative 0.68% return for the Barclays Corporate Index⁵ during the period. Global bonds also experienced weakness, with the Barclays Global Aggregate Index⁶ losing 3.15% during the year.

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased towards the end of the third quarter the MVP process reduced the Fund’s equity exposure. Overall, the impact of the MVP risk management process, which includes the use of derivatives, resulted in a modest drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

³	The Morgan Stanley Capital International, Emerging Markets (“MSCI EM”) Index is a free float adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

⁴

⁵	Barclays U.S. Corporate Bond Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers.

⁶	Barclays Global Aggregate Index is a measure of global investment-grade debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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.

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

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

Aggregate Total Returns as of December 31, 2015


	6 Month			Since Inception (4/27/15)
AZL^® MVP DFA Multi-Strategy Fund		-3.36	%		-5.00	%
S&P 500 Index		0.15	%		-1.61	%
Barclays U.S. Aggregate Bond Index		0.65	%		-1.26	%
Multi-Strategy Composite Index		0.39	%		-1.41	%


Expense Ratio	Gross
AZL^® MVP DFA Multi-Strategy Fund		1.12	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.15% through April 30, 2017. Additional information pertaining to the December 31, 2015 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”), the Barclays U.S. Aggregate Bond Fund and the Multi-Strategy Composite Index (“Composite”). 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. The Composite is a blended index comprised of (75%) S&P 500 and (25%) Barclays U.S. Aggregate Bond Index. 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 MVP DFA Multi-Strategy 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
	Affiliated Investment Companies (94.7%):
	173,526	AZL DFA Emerging Markets Core Equity Fund	$	1,306,652
	1,003,342	AZL DFA Five-Year Global Fixed Income Fund		9,943,121
	200,812	AZL DFA International Core Equity Fund		1,813,335
	955,012	AZL DFA U.S. Core Equity Fund		9,063,066
	280,748	AZL DFA U.S. Small Cap Fund		2,582,883

	Total Affiliated Investment Companies (Cost $25,501,640)			24,709,057

	Total Investment Securities (Cost $25,501,640)(a) — 94.7%			24,709,057
	Net other assets (liabilities) — 5.3%			1,378,235

	Net Assets — 100.0%		$	26,087,292

Cash of $1,303,140 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in affiliates, at cost	$	25,501,640

Investments in affiliates, at value	$	24,709,057
Cash		71,418
Segregated cash for collateral		1,303,140
Receivable for capital shares issued		86,382
Prepaid assets		3,225
Receivable for variation margin on futures contracts		1,188

Total Assets		26,174,410

Liabilities:
Payable for affiliated investments purchased		67,719
Payable for capital shares redeemed		29
Payable for variation margin on futures contracts		6,720
Manager Fees payable		7,076
Administration fees payable		4,704
Custodian fees payable		683
Administrative and compliance services fees payable		108
Trustee fees payable		79

Total Liabilities		87,118

Net Assets	$	26,087,292

Net Assets Consist of:
Capital	$	26,941,202
Accumulated net investment income/(loss)		—
Accumulated net realized gains/(losses) from investment transactions		(59,515	)
Net unrealized appreciation/(depreciation) on investments		(794,395	)

Net Assets	$	26,087,292

Shares of beneficial interest (unlimited number of shares authorized, no par value)		2,746,040
Net Asset Value (offering and redemption price per share)	$	9.50

Statement of Operations

For the Period Ended December 31, 2015(a)


Investment Income:
Dividends from affiliates	$	—

Total Investment Income		—

Expenses:
Manager fees		23,412
Administration fees		34,233
Custodian fees		1,184
Administrative and compliance services fees		193
Trustee fees		678
Professional fees		720
Shareholder reports		398
Other expenses		311

Total expenses before reductions		61,129
Less expenses voluntarily waived/reimbursed by the Manager		(11,650	)
Less expense contractually waived/reimbursed by the Manager		(32,620	)

Net expenses		16,859

Net Investment Income/(Loss)		(16,859	)

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		(6,595	)
Net realized gains/(losses) on futures contracts		(52,920	)
Change in net unrealized appreciation/depreciation on investments		(794,395	)

Net Realized/Unrealized Gains/(Losses) on Investments		(853,910	)

Change in Net Assets Resulting From Operations	$	(870,769	)

(a)	For the period April 27, 2015 (commencement of operations) to December 31, 2015.

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP DFA Multi-Strategy Fund (the “Fund”), and 12 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 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.

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.

During the period ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $1.2 million as of December 31, 2015. The monthly average notional amount for these contracts was $800 thousand for the year ended December 31, 2015. 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, 2015:

The following is a summary of the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the period ended December 31, 2015:

For the period ended December 31, 2015, 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 period are reflected on the Statement of Operations as “Recoupment of prior expenses reimbursed by the Manager.”

At December 31, 2015, 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, and fund accountant, and assists the Trust in all aspects of its administration and operation. The Administrator is entitled to a fee, accrued daily and paid monthly. Prior to April 1, 2015, Citi also served as transfer agent for the Trust under the same agreement. The Administrator was 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.” Effective April 1, 2015, the Trust’s transfer agent became SunGard Investor Services, LLC.

In addition, certain legal fees and expenses are paid to a law firm, Dorsey & Whitney LLP, of which the Secretary of the Fund is Senior Counsel. During the period ended December 31, 2015, $78 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 period ended December 31, 2015, actual Trustee compensation was $1,165,450 in total for both trusts.

utilizing Level 1 valuations represent investments in open-end investment companies. 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.

For the period ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the period ended December 31, 2015, 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, 2015 is $25,508,235. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

As of the end of its tax year ended December 31, 2015, 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.

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP DFA Multi-Strategy Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, and the related statements of operations and changes in net assets, and the financial highlights for the period April 27, 2015 (commencement of operations) to December 31, 2015. 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 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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP DFA Multi-Strategy Fund as of December 31, 2015, the results of its operations, the changes in its net assets, and the financial highlights for the period April 27, 2015 to December 31, 2015, in conformity with U.S. generally accepted accounting principles.

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.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

AZL^® MVP Franklin Templeton Founding Strategy Plus Fund Review (unaudited)

What factors affected the Fund’s performance for year ended December 31, 2015?

For the year ended December 31, 2015, the AZL^® MVP Franklin Templeton Founding Strategy Plus Fund returned -6.21%. That compared to a 1.38%, 0.55% and a 1.20% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The AZL^® MVP Franklin Templeton Founding Strategy Plus Fund is a fund of funds that invests primarily in the shares of another mutual fund—the AZL^® Franklin Templeton Founding Strategy Plus Fund—managed by the Manager. This Fund invests in a combination of sub-portfolios, or strategies, each of which is managed by a Franklin Templeton asset manager.

•

Templeton Growth Strategy

•

Franklin Mutual Shares Strategy

•

Franklin Income Strategy

•

Templeton Global Bond Strategy

The Fund also employs the MVP (Managed Volatility Portfolio) risk-management process that primarily uses derivatives and is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.

The global economy expanded moderately during the reporting period. As measured by the MSCI World Index, stocks in global developed markets overall were nearly unchanged for the year amid some positive developments. However, worries about China’s slowing economy and tumbling stock market, declining commodity prices, geopolitical tensions between Russia and Turkey, and ongoing uncertainty over the U.S. Federal Reserve’s (the Fed) timing for raising interest rates weighed on global stocks at times.

Toward the year’s end, equity markets recovered somewhat as the Fed increased its federal funds target range after maintaining a near-zero rate for seven years, alleviating some uncertainty about a change in the U.S. monetary policy. During the year, oil prices declined sharply largely due to strong global supply, and gold and other commodity prices also fell. The U.S. dollar appreciated against most currencies during the period, which reduced returns of many foreign assets in U.S. dollar terms.

The Fund’s absolute performance benefited from its component funds’ equity holdings in the health care sector. However, the energy and industrials sectors weighed on absolute returns. While holdings in Israel performed well, most other regions declined.*

The Fund’s relative performance was hindered by stock selection in its underlying funds, including the AZL Templeton Growth Strategy Fund’s holdings in the industrials, consumer discretionary and telecommunication services sectors. Detractors for the AZL Franklin Mutual Shares Strategy Fund included holdings in a U.S. utility provider, a natural resources company and an oil and gas producer. Additionally, the AZL Templeton Global Bond

Strategy Fund’s interest rate strategies and select bond duration exposures in Europe and the U.S. detracted from relative performance. The AZL Franklin Income Strategy Fund’s fixed income assets remained positioned largely in high-yield corporate bonds, which posted negative returns as yield spreads over Treasuries widened. Among fixed income investments across the underlying funds, energy and materials were the primary detractors to relative returns.*

In contrast, fixed income securities of large U.S. banks and information technology holdings benefited the Fund’s relative performance. Investments by the AZL Franklin Mutual Shares Strategy Fund in a U.S. software company, a manufacturer of injection drugs and biosimilars, and a pharmaceutical company with treatments for cancer, psoriasis and rheumatoid arthritis were key contributors to the Fund’s relative performance.*

Some of the Fund’s underlying funds employed currency positions during the period, to varying effect. For example, the AZL Franklin Mutual Shares Strategy Fund held currency forwards with the goal of 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 exposure to the euro within the AZL Templeton Global Bond Strategy Fund was a relative contributor. However, exposure to several other currencies that also depreciated had a negative effect on relative returns.*

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased toward the end of the third quarter the MVP process reduced the Fund’s equity exposure. Over the full year, the MVP risk management process resulted in a drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

AZL^® MVP Franklin Templeton Founding Strategy Plus Fund Review (unaudited)

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 primarily in shares of another mutual fund managed by the manager, the AZL^® Franklin Templeton Founding Strategy Plus Fund, combined with the MVP risk management process.

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

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, 2015


	1 Year			3 Year			Since Inception (4/30/12)
AZL^® MVP Franklin Templeton Founding Strategy Plus Fund		-6.21	%		4.17	%		5.27	%
S&P 500 Index		1.38	%		15.13	%		13.33	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		1.93	%
Balanced Composite Index		1.20	%		9.62	%		8.78	%


Expense Ratio	Gross
AZL^® MVP Franklin Templeton Founding Strategy Plus Fund		1.14	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.15% through April 30, 2017. Additional information pertaining to the December 31, 2015 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”), the Barclays U.S. Aggregate Bond Index and the Balanced Composite Index (“Composite”). 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. The Composite is a blended index comprised of (60%) S&P 500 and (40%) Barclays U.S. Aggregate Bond Index. 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 MVP 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

	Affiliated Investment Company (95.0%):
	24,237,370	AZL Franklin Templeton Founding Strategy Plus Fund	$	292,302,682

	Total Affiliated Investment Company (Cost $317,659,911)			292,302,682

	Unaffiliated Investment Company (2.4%):
	7,405,579	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		7,405,579

	Total Unaffiliated Investment Company (Cost $7,405,579)			7,405,579

	Total Investment Securities (Cost $325,065,490)(b) — 97.4%			299,708,261
	Net other assets (liabilities) — 2.6%			7,959,586

	Net Assets — 100.0%		$	307,667,847

Percentages indicated are based on net assets as of December 31, 2015.

(a)	The rate represents the effective yield at December 31, 2015.

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

Cash of $8,062,411 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	7,405,579
Investments in affiliates, at cost		317,659,911

Total Investment securities, at cost	$	325,065,490

Investments in non-affiliates, at value	$	7,405,579
Investments in affiliates, at value		292,302,682

Total Investment securities, at value	$	299,708,261
Segregated cash for collateral		8,062,411
Receivable for capital shares issued		39,240
Receivable for affiliated investments sold		32,459
Receivable for variation margin on futures contracts		14,547

Total Assets		307,856,918

Liabilities:
Cash overdraft		53,432
Payable for variation margin on futures contracts		86,400
Manager fees payable		26,241
Administration fees payable		4,601
Custodian fees payable		564
Administrative and compliance services fees payable		1,020
Trustee fees payable		750
Other accrued liabilities		16,063

Total Liabilities		189,071

Net Assets	$	307,667,847

Net Assets Consist of:
Capital	$	317,202,494
Accumulated net investment income/(loss)		11,849,948
Accumulated net realized gains/(losses) from investment transactions		3,992,056
Net unrealized appreciation/(depreciation) on investments		(25,376,651	)

Net Assets	$	307,667,847

Shares of beneficial interest (unlimited number of shares authorized, no par value)		27,154,704
Net Asset Value (offering and redemption price per share)	$	11.33

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	12,297,987
Dividends		498

Total Investment Income		12,298,485

Expenses:
Manager fees		308,222
Administration fees		53,913
Custodian fees		2,284
Administrative and compliance services fees		5,822
Trustee fees		20,288
Professional fees		16,506
Shareholder reports		30,617
Recoupment of prior expenses reimbursed by the manager		5,206
Other expenses		5,645

Total expenses		448,503

Net Investment Income/(Loss)		11,849,982

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		(517,826	)
Net realized gains distributions from affiliated underlying funds		7,607,154
Net realized gains/(losses) on futures contracts		(2,787,174	)
Change in net unrealized appreciation/depreciation on investments		(36,121,291	)

Net Realized/Unrealized Gains/(Losses) on Investments		(31,819,137	)

Change in Net Assets Resulting From Operations	$	(19,969,155	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Franklin Templeton Founding Strategy Plus Fund (the “Fund”), and 12 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 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.

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.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $15.3 million as of December 31, 2015. The monthly average notional amount for these contracts was $21.7 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, the annual rate due to the Manager and the annual expense limit were as follows:

At December 31, 2015, the contractual reimbursements that are subject to repayment by the Fund in subsequent years 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 Senior Counsel. During the year ended December 31, 2015, $2,956 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $325,730,442. 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, 2015 were as follows:

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

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Franklin Templeton Founding Strategy Plus Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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 or periods in the four-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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP Franklin Templeton Founding Strategy Plus Fund as of December 31, 2015, 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 or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2015, 29.06% 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, 2015, the Fund declared net long-term capital gain distributions of $4,790,363.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $516,924.

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.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL MVP Fusion^SM Balanced Fund returned -1.27%. That compared to a 1.38%, 0.55% and a 1.12% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index1, and the Balanced Composite Index¹, respectively.

The AZL MVP Fusion^SM Balanced Fund is a fund of funds that achieves broad diversification by investing in underlying funds. It was invested in 32 funds at year-end. The Fund typically holds between 40% and 60% of its assets in equity funds and 40% to 60% of its assets in fixed income funds. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process, which is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.*

Emerging markets faced challenges in 2015, dragged down by weak commodity prices; concerns about slowing growth in China and throughout the global economy more broadly; and continued headwinds from a rising U.S. dollar. Against this backdrop the MSCI EM Index³ Index declined 14.60% during the year.

Fixed income markets experienced modest gains, with the Barclays Aggregate Index gaining 0.55% in 2015. The yield on the 10-year Treasury⁴ note increased 10 basis points (0.10%) to finish the year at 2.27%. Other segments in the fixed income market lagged during the year. Treasury inflation-protected securities⁵ (TIPS) declined 1.44% during the period as inflation expectations remained low. High-yield bonds struggled in 2015 as liquidity fears and lower oil prices continued to put pressure on leveraged companies in the energy sector. As a result, the Barclays U.S. Corporate High Yield Index⁶ declined 4.47% for the calendar year. Global bonds also experienced weakness, as the Barclays Global Aggregate Index⁷ declined 3.15% during the year.

The Fund underperformed the Composite in 2015 due to exposure to a broad range of asset classes that underperformed the Composite, as well as underperformance by a select group of underlying funds.*

Relative performance was hurt by the Fund’s allocation to small- and mid-cap stocks, international stocks and emerging market equities, as well as its exposure to TIPS, high-yield and global bonds. The Fund’s relative performance was also hampered by a select number of underlying funds that lagged their stated benchmarks, most notably those invested in core fixed income, large- and mid-cap equities, international equity and TIPS. A select group of underlying funds within small-cap, international equity and high-yield bonds beat their stated benchmarks, contributing positively to relative performance.*

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased toward the end of the third quarter the MVP process reduced the Fund’s equity exposure. Overall, the impact of the MVP risk management process, which includes the use of derivatives, resulted in a modest drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

³	The Morgan Stanley Capital International, Emerging Markets (“MSCI EM”) Index is a free float adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

⁴

⁵	Barclays U.S. Treasury Inflation-Linked Bond Index measures the performance of the U.S. Treasury Inflation Protected Securities (TIPS) market. Federal Reserve holdings of U.S. TIPS are not index eligible and are excluded from the face amount outstanding of each bond in the index.

⁶	Barclays U.S. Corporate High Yield Bond Index measures the USD-denominated, high-yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below.

⁷	Barclays Global Aggregate Index is a measure of global investment-grade debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

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, 2015


	1 Year			3 Year			5 Year			10 Year
AZL MVP Fusion^SM Balanced Fund		-1.27	%		4.80	%		4.90	%		4.29	%
S&P 500 Index		1.38	%		15.13	%		12.57	%		7.31	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		3.25	%		4.51	%
Balanced Composite Index		1.12	%		8.25	%		8.09	%		6.32	%


Expense Ratio	Gross
AZL MVP Fusion^SM Balanced Fund		1.03	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.30% through April 30, 2017. Additional information pertaining to the December 31, 2015 expense ratios can be found in the financial highlights.

As a shareholder of the AZL MVP Fusion Balanced 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
	Affiliated Investment Companies (95.0%):
	1,159,883	AZL BlackRock Capital Appreciation Fund	$	17,804,205
	1,304,506	AZL Boston Company Research Growth Fund		17,832,600
	1,295,195	AZL DFA International Core Equity Fund		11,695,614
	1,247,573	AZL DFA U.S. Core Equity Fund		11,839,464
	1,868,858	AZL DFA U.S. Small Cap Fund		17,193,496
	1,001,527	AZL Federated Clover Small Value Fund		17,276,335
	1,985,634	AZL Gateway Fund		23,748,181
	1,597,205	AZL International Index Fund		23,031,702
	2,159,869	AZL Invesco Growth and Income Fund		29,244,633
	2,148,660	AZL Invesco International Equity Fund		35,302,480
	2,494,769	AZL JPMorgan International Opportunities Fund		41,138,740
	2,521,751	AZL JPMorgan U.S. Equity Fund		41,104,543
	13,100,019	AZL MetWest Total Return Bond Fund		131,131,192
	913,780	AZL MFS Investors Trust Fund		17,782,165
	1,379,062	AZL MFS Mid Cap Value Fund		11,763,400
	2,790,828	AZL MFS Value Fund		35,220,247
	554,101	AZL Mid Cap Index Fund		11,691,526
	1,697,679	AZL Morgan Stanley Global Real Estate Fund		17,842,604
	873,741	AZL Multi-Manager Mid Cap Growth Fund		11,480,951
	2,278,448	AZL NFJ International Value Fund		22,123,729
	1,795,265	AZL Oppenheimer Discovery Fund		22,692,149
	13,339,418	AZL Pyramis Total Bond Fund		131,393,263


Shares			Fair Value
	Affiliated Investment Companies, continued
	1,352,099	AZL Russell 1000 Growth Index Fund	$	20,714,157
	3,858,520	AZL Russell 1000 Value Index Fund		49,813,499
	1,756,511	AZL Schroder Emerging Markets Equity Fund, Class 2		10,609,329
	1,508,338	AZL Wells Fargo Large Cap Growth Fund		17,753,139
	1,564,104	NFJ Dividend Value Portfolio		17,517,968
	1,372,605	PIMCO PVIT Global Advantage Strategy Bond Portfolio		12,037,749
	4,893,029	PIMCO PVIT High Yield Portfolio		35,523,393
	6,908,226	PIMCO PVIT Low Duration Portfolio		70,809,315
	3,960,745	PIMCO PVIT Real Return Portfolio		47,251,691
	12,373,697	PIMCO PVIT Total Return Portfolio		130,913,717

	Total Affiliated Investment Companies (Cost $1,003,692,897)			1,113,277,176

	Unaffiliated Investment Company (2.9%):
	33,764,502	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		33,764,502

	Total Unaffiliated Investment Company (Cost $33,764,502)			33,764,502

	Total Investment Securities (Cost $1,037,457,399)(b) — 97.9%			1,147,041,678
	Net other assets (liabilities) — 2.1%			24,328,087

	Net Assets — 100.0%		$	1,171,369,765

Cash of $24,996,290 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	33,764,502
Investments in affiliates, at cost		1,003,692,897

Total Investment securities, at cost	$	1,037,457,399

Investments in non-affiliates, at value	$	33,764,502
Investments in affiliates, at value		1,113,277,176

Total Investment securities, at value	$	1,147,041,678
Cash		41,634
Segregated cash for collateral		24,996,290
Interest and dividends receivable		63,625
Receivable for capital shares issued		4,732
Receivable for variation margin on futures contracts		69,980

Total Assets		1,172,217,939

Liabilities:
Payable for affiliated investments purchased		41,634
Payable for capital shares redeemed		288,968
Payable for variation margin on futures contracts		274,072
Manager fees payable		200,408
Administration fees payable		4,835
Custodian fees payable		1,189
Administrative and compliance services fees payable		3,857
Trustee fees payable		2,835
Other accrued liabilities		30,376

Total Liabilities		848,174

Net Assets	$	1,171,369,765

Net Assets Consist of:
Capital	$	994,239,373
Accumulated net investment income/(loss)		25,843,573
Accumulated net realized gains/(losses) from investment transactions		41,807,617
Net unrealized appreciation/(depreciation) on investments		109,479,202

Net Assets	$	1,171,369,765

Shares of beneficial interest (unlimited number of shares authorized, no par value)		96,399,620
Net Asset Value (offering and redemption price per share)	$	12.15

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	25,171,125
Dividends		2,233

Total Investment Income		25,173,358

Expenses:
Manager fees		2,496,646
Administration fees		59,193
Custodian fees		2,922
Administrative and compliance services fees		18,593
Trustee fees		64,923
Professional fees		51,627
Shareholder reports		31,095
Other expenses		21,099

Total expenses		2,746,098

Net Investment Income/(Loss)		22,427,260

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		23,238,158
Net realized gains distributions from affiliated underlying funds		39,011,377
Net realized gains/(losses) on futures contracts		(2,055,768	)
Change in net unrealized appreciation/depreciation on investments		(97,957,526	)

Net Realized/Unrealized Gains/(Losses) on Investments		(37,763,759	)

Change in Net Assets Resulting From Operations	$	(15,336,499	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Balanced Fund (the “Fund”), and 12 are presented in separate reports.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $58.4 million as of December 31, 2015. The monthly average notional amount for these contracts was $64.6 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $12,216 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $1,051,663,744. 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, 2015 were as follows:

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

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Fusion Balanced Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP Fusion Balanced Fund as of December 31, 2015, 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.

For the year ended December 31, 2015, 19.28% 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, 2015, the Fund declared net long-term capital gain distributions of $47,784,798.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $1,638,545.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL MVP Fusion^SM Conservative Fund returned -0.77%. That compared to a 1.38%, 0.55% and a 0.98% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Conservative Composite Index¹, respectively.

The AZL MVP Fusion^SM Conservative Fund is a fund of funds that achieves broad diversification by investing in underlying funds. It was invested in 27 funds at year-end. The Fund typically holds between 25% and 45% of its assets in equity funds and 55% to 75% of its assets in fixed income funds. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process, which is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.*

Fixed income markets experienced modest gains, with the Barclays Aggregate Index gaining 0.55% in 2015. The yield on the 10-year Treasury³ note increased 10 basis points (0.10%) to finish the year at 2.27%. Other segments in the fixed income market lagged during the year. Treasury inflation-protected securities⁴ (TIPS) declined 1.44% during the period as inflation expectations remained low. High-yield bonds struggled in 2015 as liquidity fears and lower oil prices continued to put pressure on leveraged companies in the energy sector. As a result, the Barclays U.S. Corporate High Yield Index⁵ declined 4.47% for the calendar year. Global bonds also experienced weakness, as the Barclays Global Aggregate Index⁶ declined 3.15% during the year.

The Fund underperformed the Composite in 2015 due to exposure to a broad range of asset classes that underperformed the Composite, as well as underperformance by a select group of underlying funds.*

underlying funds that lagged their stated benchmarks, most notably those invested in core fixed income, large- and mid-cap equities, international equity and TIPS. A select group of underlying funds within small-cap, international equity and high-yield bonds beat their stated benchmarks, contributing positively to relative performance.*

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased toward the end of the third quarter the MVP process reduced the Fund’s equity exposure. Overall, the impact of the MVP risk management process, which includes the use of derivatives, resulted in a modest drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

⁴	Barclays U.S. Treasury Inflation-Linked Bond Index measures the performance of the U.S. Treasury Inflation Protected Securities (TIPS) market. Federal Reserve holdings of U.S. TIPS are not index eligible and are excluded from the face amount outstanding of each bond in the index.

⁵	Barclays U.S. Corporate High Yield Bond Index measures the USD-denominated, high-yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below.

⁶	Barclays Global Aggregate Index is a measure of global investment-grade debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

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, 2015


	1 Year			3 Year			5 Year			Since Inception (10/23/09)
AZL MVP Fusion^SM Conservative Fund		-0.77	%		3.94	%		4.69	%		5.83	%
S&P 500 Index		1.38	%		15.13	%		12.57	%		13.23	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		3.25	%		3.71	%
Conservative Composite Index		0.98	%		6.20	%		6.67	%		7.25	%


Expense Ratio	Gross
AZL MVP Fusion^SM Conservative Fund		1.02	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.35% through April 30, 2017. Additional information pertaining to the December 31, 2015 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”), the Barclays U.S. Aggregate Bond Index and the Conservative Composite Index (“Composite”). 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. The Composite is a blended index comprised of (35%) S&P 500 and (65%) Barclays U.S. Aggregate Bond Index. 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 MVP Fusion Conservative 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
	Affiliated Investment Companies, continued
	225,608	AZL Wells Fargo Large Cap Growth Fund	$	2,655,401
	358,301	NFJ Dividend Value Portfolio		4,012,969
	308,037	PIMCO PVIT Global Advantage Strategy Bond Portfolio		2,701,480
	1,865,940	PIMCO PVIT High Yield Portfolio		13,546,724
	2,360,234	PIMCO PVIT Low Duration Portfolio		24,192,395
	1,131,479	PIMCO PVIT Real Return Portfolio		13,498,545
	3,533,762	PIMCO PVIT Total Return Portfolio		37,387,202

	Total Affiliated Investment Companies (Cost $248,707,657)			255,016,079

	Unaffiliated Investment Company (3.1%):
	8,230,508	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		8,230,508

	Total Unaffiliated Investment Company (Cost $8,230,508)			8,230,508

	Total Investment Securities (Cost $256,938,165)(b) — 98.1%			263,246,587
	Net other assets (liabilities) — 1.9%			5,088,575

	Net Assets — 100.0%		$	268,335,162

Percentages indicated are based on net assets as of December 31, 2015.

(a)	The rate represents the effective yield at December 31, 2015.

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

Cash of $5,203,016 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	8,230,508
Investments in affiliates, at cost		248,707,657

Total Investment securities, at cost	$	256,938,165

Investments in non-affiliates, at value	$	8,230,508
Investments in affiliates, at value		255,016,079

Total Investment securities, at value	$	263,246,587
Cash		26,652
Segregated cash for collateral		5,203,016
Interest and dividends receivable		20,956
Receivable for variation margin on futures contracts		20,484

Total Assets		268,517,695

Liabilities:
Payable for affiliated investments purchased		26,652
Payable for capital shares redeemed		52,619
Payable for variation margin on futures contracts		43,200
Manager fees payable		45,836
Administration fees payable		4,601
Custodian fees payable		1,072
Administrative and compliance services fees payable		898
Trustee fees payable		660
Other accrued liabilities		6,995

Total Liabilities		182,533

Net Assets	$	268,335,162

Net Assets Consist of:
Capital	$	248,968,597
Accumulated net investment income/(loss)		6,400,113
Accumulated net realized gains/(losses) from investment transactions		6,694,334
Net unrealized appreciation/(depreciation) on investments		6,272,118

Net Assets	$	268,335,162

Shares of beneficial interest (unlimited number of shares authorized, no par value)		22,498,775
Net Asset Value (offering and redemption price per share)	$	11.93

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	6,323,475
Dividends		427

Total Investment Income		6,323,902

Expenses:
Manager fees		542,909
Administration fees		52,232
Custodian fees		2,565
Administrative and compliance services fees		4,103
Trustee fees		14,373
Professional fees		11,549
Shareholder reports		7,108
Other expenses		4,246

Total expenses		639,085

Net Investment Income/(Loss)		5,684,817

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		1,594,201
Net realized gains distributions from affiliated underlying funds		7,397,340
Net realized gains/(losses) on futures contracts		(27,572	)
Change in net unrealized appreciation/depreciation on investments		(16,648,582	)

Net Realized/Unrealized Gains/(Losses) on Investments		(7,684,613	)

Change in Net Assets Resulting From Operations	$	(1,999,796	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Conservative Fund (the “Fund”), and 12 are presented in separate reports.

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 $13.3 million as of December 31, 2015. The monthly average notional amount for these contracts was $13.3 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $2,635 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $259,026,760. 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, 2015 were as follows:

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

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Fusion Conservative Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP Fusion Conservative Fund as of December 31, 2015, 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.

For the year ended December 31, 2015, 14.06% 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, 2015, the Fund declared net long-term capital gain distributions of $8,718,822.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $474,703.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL MVP Fusion^SM Growth Fund returned -2.07%. That compared to a 1.38%, 0.55% and a 1.31% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Growth Composite Index¹, respectively.

The AZL MVP Fusion^SM Growth Fund is a fund of funds that achieves broad diversification by investing in underlying funds. It was invested in 29 funds at year-end. The Growth Fund typically holds between 70% and 90% of its assets in equity funds and 10% to 30% of its assets in fixed income funds. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process, which is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.

Emerging markets faced challenges in 2015, dragged down by weak commodity prices; concerns about slowing growth in China and the global economy; and strong U.S. dollar. Against this backdrop the MSCI EM Index³ declined 14.60% during the year.

Fixed income markets experienced modest gains, with the Barclays Aggregate Index gaining 0.55% in 2015. The yield on the 10-year Treasury⁴ note increased 10 basis points (0.10%) to finish the year at 2.27%. Other segments in the fixed income market lagged during the year, including Treasury inflation-protected securities⁵ (TIPS), which declined 1.44%. High-yield bonds struggled in 2015 as liquidity fears and lower oil prices continued to put pressure on leveraged companies in the energy sector. Global bonds also experienced weakness.

The Fund underperformed the Composite in 2015 due to exposure to a broad range of asset classes that underperformed the Composite, as well as underperformance by a select group of underlying funds.*

Relative performance was hurt by the Fund’s allocations to small- and mid-cap stocks, international stocks and emerging market equities, as well as its exposure to TIPS, high-yield and global bonds. The Fund’s relative performance was also hampered by a select number of underlying funds that lagged their stated benchmarks, most notably those invested in core fixed income, large- and mid-cap equities, international equity and TIPS. A select group of underlying funds within small-cap, international equity and high-yield bonds beat their stated benchmarks, contributing positively to relative performance.*

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased toward the end of the third quarter the MVP process reduced the Fund’s equity exposure. Overall, the impact of the MVP risk management process, which includes the use of derivatives, resulted in a modest drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

³	The Morgan Stanley Capital International, Emerging Markets (“MSCI EM”) Index is a free float adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

⁴

⁵	Barclays U.S. Treasury Inflation-Linked Bond Index measures the performance of the U.S. Treasury Inflation Protected Securities (TIPS) market. Federal Reserve holdings of U.S. TIPS are not index eligible and are excluded from the face amount outstanding of each bond in the index.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

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, 2015


	1 Year			3 Year			5 Year			10 Year
AZL MVP Fusion^SM Growth Fund		-2.07	%		6.77	%		5.68	%		3.61	%
S&P 500 Index		1.38	%		15.13	%		12.57	%		7.31	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		3.25	%		4.51	%
Growth Composite Index		1.31	%		12.37	%		10.83	%		7.02	%


Expense Ratio	Gross
AZL MVP Fusion^SM Growth Fund		1.16	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.30% through April 30, 2017. Additional information pertaining to the December 31, 2015 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”), the Barclays U.S. Aggregate Bond Index and the Growth Composite Index (“Composite”). 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. The Composite is a blended index comprised of (80%) S&P 500 and (20%) Barclays U.S. Aggregate Bond Index. 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 MVP Fusion 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
	Affiliated Investment Companies (95.9%):
	1,206,254	AZL BlackRock Capital Appreciation Fund	$	18,515,992
	1,353,473	AZL Boston Company Research Growth Fund		18,501,975
	2,047,593	AZL DFA International Core Equity Fund		18,489,761
	1,949,680	AZL DFA U.S. Core Equity Fund		18,502,462
	1,590,331	AZL DFA U.S. Small Cap Fund		14,631,047
	853,368	AZL Federated Clover Small Value Fund		14,720,605
	1,858,613	AZL Gateway Fund		22,229,014
	2,548,239	AZL International Index Fund		36,745,603
	1,637,330	AZL Invesco Growth and Income Fund		22,169,452
	2,685,853	AZL Invesco International Equity Fund		44,128,563
	3,559,075	AZL JPMorgan International Opportunities Fund		58,689,142
	2,483,974	AZL JPMorgan U.S. Equity Fund		40,488,768
	2,929,201	AZL MetWest Total Return Bond Fund		29,321,306
	762,371	AZL MFS Investors Trust Fund		14,835,745
	1,742,419	AZL MFS Mid Cap Value Fund		14,862,838
	2,336,684	AZL MFS Value Fund		29,488,953
	353,970	AZL Mid Cap Index Fund		7,468,763
	2,108,843	AZL Morgan Stanley Global Real Estate Fund		22,163,939
	1,132,878	AZL Multi-Manager Mid Cap Growth Fund		14,886,012
	2,578,998	AZL NFJ International Value Fund		25,042,068
	1,428,775	AZL Oppenheimer Discovery Fund		18,059,719
	2,983,587	AZL Pyramis Total Bond Fund		29,388,328


Shares			Fair Value
	Affiliated Investment Companies, continued
	967,743	AZL Russell 1000 Growth Index Fund	$	14,825,828
	2,004,036	AZL Russell 1000 Value Index Fund		25,872,103
	1,786,408	AZL Schroder Emerging Markets Equity Fund, Class 2		10,789,905
	1,566,382	AZL Wells Fargo Large Cap Growth Fund		18,436,313
	1,325,723	NFJ Dividend Value Portfolio		14,848,094
	2,517,207	PIMCO PVIT Global Advantage Strategy Bond Portfolio		22,075,908
	1,016,318	PIMCO PVIT High Yield Portfolio		7,378,469
	723,322	PIMCO PVIT Low Duration Portfolio		7,414,046
	1,236,600	PIMCO PVIT Real Return Portfolio		14,752,643
	2,768,960	PIMCO PVIT Total Return Portfolio		29,295,593

	Total Affiliated Investment Companies (Cost $589,494,712)			699,018,957

	Unaffiliated Investment Company (1.9%):
	13,832,177	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		13,832,177

	Total Unaffiliated Investment Company (Cost $13,832,177)			13,832,177

	Total Investment Securities (Cost $603,326,889)(b) — 97.8%			712,851,134
	Net other assets (liabilities) — 2.2%			16,159,601

	Net Assets — 100.0%		$	729,010,735

Cash of $16,525,287 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	13,832,177
Investments in affiliates, at cost		589,494,712

Total Investment securities, at cost	$	603,326,889

Investments in non-affiliates, at value	$	13,832,177
Investments in affiliates, at value		699,018,957

Total Investment securities, at value	$	712,851,134
Segregated cash for collateral		16,525,287
Interest and dividends receivable		14,556
Receivable for affiliated investments sold		203,541
Receivable for variation margin on futures contracts		14,250

Total Assets		729,608,768

Liabilities:
Cash overdraft		203,541
Payable for capital shares redeemed		12,899
Payable for variation margin on futures contracts		227,032
Manager fees payable		125,213
Administration fees payable		4,719
Custodian fees payable		834
Administrative and compliance services fees payable		2,410
Trustee fees payable		1,771
Other accrued liabilities		19,614

Total Liabilities		598,033

Net Assets	$	729,010,735

Net Assets Consist of:
Capital	$	685,087,305
Accumulated net investment income/(loss)		14,539,523
Accumulated net realized gains/(losses) from investment transactions		(80,132,856	)
Net unrealized appreciation/(depreciation) on investments		109,516,763

Net Assets	$	729,010,735

Shares of beneficial interest (unlimited number of shares authorized, no par value)		58,691,597
Net Asset Value (offering and redemption price per share)	$	12.42

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	13,388,883
Dividends		1,637

Total Investment Income		13,390,520

Expenses:
Manager fees		1,621,525
Administration fees		55,998
Custodian fees		2,371
Administrative and compliance services fees		11,920
Trustee fees		41,477
Professional fees		32,733
Shareholder reports		20,237
Other expenses		14,130

Total expenses		1,800,391

Net Investment Income/(Loss)		11,590,129

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		37,048,079
Net realized gains distributions from affiliated underlying funds		35,100,942
Net realized gains/(losses) on futures contracts		(4,126,236	)
Change in net unrealized appreciation/depreciation on investments		(94,967,859	)

Net Realized/Unrealized Gains/(Losses) on Investments		(26,945,074	)

Change in Net Assets Resulting From Operations	$	(15,354,945	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Growth Fund (the “Fund”), and 12 are presented in separate reports.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $30.2 million as of December 31, 2015. The monthly average notional amount for these contracts was $44.6 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $8,006 was paid from the Fund relating to these fees and expenses.

expenses associated with attending Board meetings. Compensation to the Trustees is allocated between the Trust and the Allianz Variable Insurance Products Trust in proportion to the assets under management of each trust. During the year ended December 31, 2015, actual Trustee compensation was $1,165,450 in total for both trusts.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $638,441,197. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

During the year ended December 31, 2015, the Fund utilized $62,069,520 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2015 were as follows:

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

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Fusion Growth Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP Fusion Growth Fund as of December 31, 2015, 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.

For the year ended December 31, 2015, 31.63% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL MVP FusionSM Moderate Fund returned -1.71%. That compared to a 1.38%, 0.55% and a 1.23% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Moderate Composite Index¹, respectively.

The AZL MVP FusionSM Moderate Fund is a fund of funds that achieves broad diversification by investing in underlying funds. It was invested in 32 funds at year-end. The Fund typically holds between 55% and 75% of its assets in equity funds and 25% to 45% of its assets in fixed income funds. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process, which is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.

U.S. stock returns were fairly muted during the 12 months through December 31, 2015, with the S&P 500 gaining only 1.38%. Financial markets faced significant headwinds during the second half of the year, including the risk of slower global economic growth, the Federal Reserve’s move to normalize monetary policy by raising the federal funds target rate by 0.25%, the challenge corporate earnings faced in growing from already elevated levels, and liquidity and contagion worries in the high yield bond sector. The U.S. labor market remained a bright spot during the year, with job creation and unemployment trending favorably and wage growth picking up. Industrial activity was challenged in 2015 as a strong U.S. dollar and weak global demand placed pressure on U.S. manufacturers.

Emerging markets faced challenges in 2015, dragged down by weak commodity prices; concerns about slowing growth in China and throughout global economy more broadly; and continued headwinds from a rising U.S. dollar. Against this backdrop the MSCI EM Index³ Index declined 14.60% during the year.

Fixed income markets experienced modest gains, with the Barclays U.S. Aggregate Bond Index gaining 0.55% in 2015. The yield on the 10-year Treasury⁴ note increased 10 basis points (0.10%) to finish the year at 2.27%. Other segments in the fixed income market lagged during the year. Treasury inflation-protected securities⁵ (TIPS) declined 1.44% during this period as inflation expectations remained low. High-yield bonds struggled in 2015 as liquidity fears and lower oil prices continued to put pressure on leveraged companies in the energy sector. As a result, the Barclays U.S. Corporate High Yield Index⁶ declined 4.47% during this period. Global bonds also experienced weakness, as the Barclays Global Aggregate Index⁷ declined 3.15% during the year.

The Fund underperformed the Composite in 2015 due to exposure to a broad range of asset classes that underperformed the Composite, as well as underperformance by a select group of underlying funds.

Relative performance was hurt by the Fund’s allocation to small- and mid-cap stocks, international stocks and emerging market equities, as well as its exposure to TIPS, high yield and global bonds. The Fund’s relative performance was also

hampered by a select number of underlying funds that lagged their stated benchmarks, most notably those invested in core fixed income, large- and mid-cap equities, international equity and TIPS. A select group of underlying funds within small-cap, international equity and high-yield bonds beat their stated benchmarks, contributing positively to relative performance.

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased toward the end of the third quarter the MVP process reduced the Fund’s equity exposure. Overall, the impact of the MVP risk management process, which includes the use of derivatives, resulted in a modest drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

³	The Morgan Stanley Capital International, Emerging Markets (“MSCI EM”) Index is a free float adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

⁴

⁵	Barclays U.S. Treasury Inflation-Linked Bond Index measures the performance of the U.S. Treasury Inflation Protected Securities (TIPS) market. Federal Reserve holdings of U.S. TIPS are not index eligible and are excluded from the face amount outstanding of each bond in the index.

⁶	Barclays U.S. Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below.

⁷	Barclays Global Aggregate Index is a measure of global investment-grade debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

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, 2015


	1 Year			3 Year			5 Year			10 Year
AZL MVP Fusion^SM Moderate Fund		-1.71	%		5.67	%		5.23	%		4.00	%
S&P 500 Index		1.38	%		15.13	%		12.57	%		7.31	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		3.25	%		4.51	%
Moderate Composite Index		1.23	%		10.30	%		9.48	%		6.71	%


Expense Ratio	Gross
AZL MVP Fusion^SM Moderate Fund		1.10	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.30% through April 30, 2017. Additional information pertaining to the December 31, 2015 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”), the Barclays U.S. Aggregate Bond Index and the Moderate Composite Index (“Composite”). 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. The Composite is a blended index comprised of (65%) S&P 500 and (35%) Barclays U.S. Aggregate Bond Index. 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 MVP Fusion Moderate 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
	Affiliated Investment Companies (95.5%):
	3,278,752	AZL BlackRock Capital Appreciation Fund	$	50,328,837
	3,682,361	AZL Boston Company Research Growth Fund		50,337,874
	5,474,807	AZL DFA International Core Equity Fund		49,437,510
	3,986,012	AZL DFA U.S. Core Equity Fund		37,827,249
	5,314,308	AZL DFA U.S. Small Cap Fund		48,891,631
	2,152,797	AZL Federated Clover Small Value Fund		37,135,743
	5,259,389	AZL Gateway Fund		62,902,297
	5,103,398	AZL International Index Fund		73,591,005
	5,529,511	AZL Invesco Growth and Income Fund		74,869,579
	7,537,658	AZL Invesco International Equity Fund		123,843,714
	9,006,531	AZL JPMorgan International Opportunities Fund		148,517,692
	6,108,050	AZL JPMorgan U.S. Equity Fund		99,561,222
	18,385,863	AZL MetWest Total Return Bond Fund		184,042,489
	2,579,468	AZL MFS Investors Trust Fund		50,196,448
	4,414,920	AZL MFS Mid Cap Value Fund		37,659,270
	6,912,326	AZL MFS Value Fund		87,233,557
	1,196,969	AZL Mid Cap Index Fund		25,256,049
	4,789,474	AZL Morgan Stanley Global Real Estate Fund		50,337,373
	2,777,892	AZL Multi-Manager Mid Cap Growth Fund		36,501,500
	6,970,837	AZL NFJ International Value Fund		67,686,831
	3,820,763	AZL Oppenheimer Discovery Fund		48,294,451
	18,721,847	AZL Pyramis Total Bond Fund		184,410,195


Shares			Fair Value
	Affiliated Investment Companies, continued
	3,076,930	AZL Russell 1000 Growth Index Fund	$	47,138,571
	7,482,962	AZL Russell 1000 Value Index Fund		96,605,035
	3,645,216	AZL Schroder Emerging Markets Equity Fund, Class 2		22,017,103
	4,266,285	AZL Wells Fargo Large Cap Growth Fund		50,214,179
	4,456,119	NFJ Dividend Value Portfolio		49,908,535
	8,607,935	PIMCO PVIT Global Advantage Strategy Bond Portfolio		75,491,591
	6,939,672	PIMCO PVIT High Yield Portfolio		50,382,020
	7,355,390	PIMCO PVIT Low Duration Portfolio		75,392,750
	6,318,669	PIMCO PVIT Real Return Portfolio		75,381,720
	17,352,568	PIMCO PVIT Total Return Portfolio		183,590,172

	Total Affiliated Investment Companies (Cost $2,104,032,156)			2,354,984,192

	Unaffiliated Investment Company (2.4%):
	59,598,930	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		59,598,930

	Total Unaffiliated Investment Company (Cost $59,598,930)			59,598,930

	Total Investment Securities (Cost $2,163,631,086)(b) — 97.9%			2,414,583,122
	Net other assets (liabilities) — 2.1%			51,850,509

	Net Assets — 100.0%		$	2,466,433,631

Cash of $53,225,149 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	59,598,930
Investments in affiliates, at cost		2,104,032,156

Total Investment securities, at cost	$	2,163,631,086

Investments in non-affiliates, at value	$	59,598,930
Investments in affiliates, at value		2,354,984,192

Total Investment securities, at value	$	2,414,583,122
Segregated cash for collateral		53,225,149
Interest and dividends receivable		92,192
Receivable for affiliated investments sold		468,239
Receivable for variation margin on futures contracts		94,929

Total Assets		2,468,463,631

Liabilities:
Cash overdraft		468,239
Payable for capital shares redeemed		373,009
Payable for variation margin on futures contracts		685,895
Manager fees payable		421,757
Administration fees payable		5,179
Custodian fees payable		557
Administrative and compliance services fees payable		8,113
Trustee fees payable		5,963
Other accrued liabilities		61,288

Total Liabilities		2,030,000

Net Assets	$	2,466,433,631

Net Assets Consist of:
Capital	$	2,054,540,542
Accumulated net investment income/(loss)		50,970,543
Accumulated net realized gains/(losses) from investment transactions		110,088,045
Net unrealized appreciation/(depreciation) on investments		250,834,501

Net Assets	$	2,466,433,631

Shares of beneficial interest (unlimited number of shares authorized, no par value)		203,077,392
Net Asset Value (offering and redemption price per share)	$	12.15

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	48,327,942
Dividends		5,045

Total Investment Income		48,332,987

Expenses:
Manager fees		5,287,214
Administration fees		69,349
Custodian fees		3,222
Administrative and compliance services fees		39,625
Trustee fees		137,871
Professional fees		109,756
Shareholder reports		61,383
Other expenses		44,330

Total expenses		5,752,750

Net Investment Income/(Loss)		42,580,237

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		67,839,473
Net realized gains distributions from affiliated underlying funds		100,275,550
Net realized gains/(losses) on futures contracts		(8,863,760	)
Change in net unrealized appreciation/depreciation on investments		(245,260,925	)

Net Realized/Unrealized Gains/(Losses) on Investments		(86,009,662	)

Change in Net Assets Resulting From Operations	$	(43,429,425	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Moderate Fund (the “Fund”), and 12 are presented in separate reports.

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 $112.3 million as of December 31, 2015. The monthly average notional amount for these contracts was $139.1 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $25,883 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $2,201,950,390. 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, 2015 were as follows:

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

As of December 31, 2015, 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, 2015, the Fund had a controlling interest (in excess of 50%) in the AZL NFJ International Value Fund, the AZL Russell 1000 Value Index Fund, and the AZL Wells Fargo Large Cap Growth Fund, which are affiliated with the Investment Adviser.

We have audited the accompanying statement of assets and liabilities of AZL MVP Fusion Moderate Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP Fusion Moderate Fund as of December 31, 2015, 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.

For the year ended December 31, 2015, 25.16% 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, 2015, the Fund declared net long-term capital gain distributions of $99,506,982.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance for the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL^® MVP Growth Index Strategy Fund returned -0.80%. That compared to a 1.38%, 0.55% and a 1.29% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Growth Composite Index¹, respectively.

The AZL^® MVP Growth Index Strategy Fund is a fund of funds that pursues broad diversification across four equity sub-portfolios and one fixed-income sub-portfolio. The four equity sub-portfolios pursue passive strategies that aim to achieve, before fees, returns similar to the S&P 500 Index, the S&P 400 Index², the S&P 600³ Index and the MSCI EAFE Index⁴, which represents shares of large companies in developed foreign markets. The fixed income sub-portfolio is an enhanced bond index strategy that seeks to achieve a return that exceeds the Barclays U.S. Aggregate Bond Index. Generally, the Fund allocates 65% to 85% of its assets to the underlying equity index funds and between 15% and 35% to the underlying bond index fund. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process, which is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.*

Developed international equity markets lagged during the calendar year, with the MSCI EAFE declining 0.81% over this period. The euro declined significantly against the U.S. dollar, boosting European exports and creating a favorable environment for consumer-related stocks. Europe gained 5% in terms of local currency but declined approximately 3% for U.S. dollar investors. Japanese equities were a bright spot in 2015, gaining approximately 9.6% in U.S. dollar terms.

Fixed income markets experienced modest gains, with the Barclays U.S. Aggregate Bond Index gaining 0.55% in 2015. The yield on the 10-year Treasury⁵ note increased 10 basis points (0.10%) to finish the year at 2.27%. Corporate bond spreads widened during the year, resulting in a -0.68% return for the Barclays U.S. Corporate Bond Index⁶ during the period.

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased toward the end of the third quarter the MVP process reduced the Fund’s equity exposure. Overall, the impact of the MVP risk management process, which includes the use of derivatives, resulted in a modest drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

²	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.

⁴	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.

⁵

⁶	Barclays U.S. Corporate Bond Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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

Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss.

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, 2015


	1 Year			3 Year			Since Inception (1/10/12)
AZL^® MVP Growth Index Strategy Fund		-0.80	%		8.47	%		9.15	%
S&P 500 Index		1.38	%		15.13	%		14.66	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		2.16	%
Growth Composite Index		1.29	%		11.68	%		11.54	%


Expense Ratio	Gross
AZL^® MVP Growth Index Strategy Fund		0.69	%

The Fund’s performance is measured against the Standard & Poor’s 500 Index (“S&P 500”), the Barclays U.S. Aggregate Bond Index and the Growth Composite Index (“Composite”). 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. The Composite is a blended index comprised of (75%) S&P 500 and (25%) Barclays U.S. Aggregate Bond Index. 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 MVP Growth Index Strategy 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
	Affiliated Investment Companies (94.9%):
	30,777,154	AZL Enhanced Bond Index Fund	$	331,777,725
	18,337,396	AZL International Index Fund		264,425,252
	7,220,184	AZL Mid Cap Index Fund		152,345,889
	34,941,723	AZL S&P 500 Index Fund, Class 2		497,220,720
	5,631,597	AZL Small Cap Stock Index Fund		75,970,242

	Total Affiliated Investment Companies (Cost $1,254,857,196)			1,321,739,828

	Unaffiliated Investment Companies (2.9%):
	6,773	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.00%(a)		6,773
	40,544,021	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		40,544,021

	Total Unaffiliated Investment Companies (Cost $40,550,794)			40,550,794

	Total Investment Securities (Cost $1,295,407,990)(b) — 97.8%			1,362,290,622
	Net other assets (liabilities) — 2.2%			30,169,824

	Net Assets — 100.0%		$	1,392,460,446

Cash of $29,519,671 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	40,550,794
Investments in affiliates, at cost		1,254,857,196

Total Investment securities, at cost	$	1,295,407,990

Investments in non-affiliates, at value	$	40,550,794
Investments in affiliates, at value		1,321,739,828

Total Investment securities, at value	$	1,362,290,622
Cash		22,643
Segregated cash for collateral		29,519,671
Receivable for capital shares issued		1,254,096
Receivable for variation margin on futures contracts		42,074

Total Assets		1,393,129,106

Liabilities:
Payable for affiliated investments purchased		9,522
Payable for variation margin on futures contracts		491,975
Manager fees payable		117,829
Administration fees payable		4,863
Custodian fees payable		655
Administrative and compliance services fees payable		4,517
Trustee fees payable		3,320
Other accrued liabilities		35,979

Total Liabilities		668,660

Net Assets	$	1,392,460,446

Net Assets Consist of:
Capital	$	1,285,418,675
Accumulated net investment income/(loss)		31,942,865
Accumulated net realized gains/(losses) from investment transactions		8,250,921
Net unrealized appreciation/(depreciation) on investments		66,847,985

Net Assets	$	1,392,460,446

Shares of beneficial interest (unlimited number of shares authorized, no par value)		102,773,543
Net Asset Value (offering and redemption price per share)	$	13.55

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	29,395,418
Dividends		2,021

Total Investment Income		29,397,439

Expenses:
Manager fees		1,282,331
Administration fees		59,792
Custodian fees		2,184
Administrative and compliance services fees		20,155
Trustee fees		69,580
Professional fees		58,124
Shareholder reports		34,191
Other expenses		20,497

Total expenses		1,546,854

Net Investment Income/(Loss)		27,850,585

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		(258,539	)
Net realized gains distributions from affiliated underlying funds		19,771,056
Net realized gains/(losses) on futures contracts		(6,094,000	)
Change in net unrealized appreciation/depreciation on investments		(58,218,218	)

Net Realized/Unrealized Gains/(Losses) on Investments		(44,799,701	)

Change in Net Assets Resulting From Operations	$	(16,949,116	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Growth Index Strategy Fund (the “Fund”), and 12 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, 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.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $69.7 million as of December 31, 2015. The monthly average notional amount for these contracts was $77.1 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $11,945 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $1,296,080,301. 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, 2015 were as follows:

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

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Growth Index Strategy Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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 or periods in the four-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, 2015, by correspondence with the custodian, brokers, and transfer agents of the underlying funds. 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 AZL MVP Growth Index Strategy Fund as of December 31, 2015, 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 or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2015, 42.12% 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, 2015, the Fund declared net long-term capital gain distributions of $9,389,107.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $2,126,065.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance for the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL^® MVP Invesco Equity and Income Fund returned
-3.21%. That compared to a 1.38%, 0.55% and a 1.20% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The AZL^® MVP Invesco Equity and Income Fund is a fund of funds that invests primarily in the shares of another mutual fund managed by the Manager, the AZL^® Invesco Equity and Income Fund. This underlying fund primarily invests in income-producing equity instruments (including common stocks, preferred stocks and convertible securities) and investment-grade quality debt securities. The Fund also employs the MVP (Managed Volatility Portfolio) risk management process that primarily uses derivatives and is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.*

U.S. stocks delivered modest gains amid sharp volatility during the 12 months through December 31, 2015. In the first half of the period, the U.S. economy recorded slow but steady growth. The increasing availability of credit and an improving employment picture contributed to higher consumer confidence and spending, which drove U.S. equity markets higher. These positive trends were countered somewhat by a strong U.S. dollar, which created foreign-exchange headwinds for U.S.-based companies. The strong dollar also hurt commodity- and materials-based sectors. During the summer, global markets reversed sharply, declining on concerns about China’s slowing economy. The continued slump in oil prices also contributed to market volatility.

U.S. markets eventually rallied in the fall, and the U.S. Federal Reserve saw enough positive economic data to raise short-term interest rates in December. As a result, most major indexes finished the year in positive territory. Sector performance within the S&P 500 was mixed, however, with health care, telecommunication services, information technology, consumer discretionary and consumer staples posting positive performance.

The equity portion of the portfolio underperformed the S&P 500. Stock selection and an overweight position in the energy sector hurt the Fund’s relative performance, as energy stocks suffered from declining oil prices. Underweight positions and stock selection in the consumer discretionary and information technology sectors also detracted from relative performance.*

The Fund benefitted from an underweight position and stock selection in the industrial sector. An underweight position in the poor-performing utilities sector also boosted relative performance.*

The fixed-income portion of the portfolio underperformed the Barclays U.S. Aggregate Bond Index. Security selection among high-grade issuers in the telecommunications, media and technology sectors detracted the most from relative performance. Underweight positions and security selection in government bonds and high-quality energy bonds also hurt relative performance. The Fund also maintained a lower average duration than the index, which detracted from performance. However, the portfolio’s bond allocation helped the Fund’s absolute performance, as it outperformed by a large margin the large value equities that are the focus of the Fund’s investing style.*

The underlying fund 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. These contracts had a large positive impact on the Fund’s performance due to the strength of the U.S. dollar compared to the foreign currencies in which the non-U.S. holdings were denominated.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

Fund Objective

The Fund’s investment objective is to seek the highest possible income consistent with safety of principal, with long-term growth 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 primarily in the shares of another mutual fund managed by the manager, the AZL^® Invesco Equity and Income Fund, combined with the MVP risk management process.

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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.

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, 2015


	1 Year			3 Year			Since Inception (1/10/12)
AZL^® MVP Invesco Equity and Income Fund		-3.21	%		9.14	%		9.13	%
S&P 500 Index		1.38	%		15.13	%		14.66	%
Barclays U.S. Aggregate Bond Index		0.55	%		1.44	%		2.16	%
Balanced Composite Index		1.20	%		9.62	%		9.67	%


Expense Ratio	Gross
AZL^® MVP Invesco Equity and Income Fund		1.05	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.15% through April 30, 2017. Additional information pertaining to the December 31, 2015 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”), the Barclays U.S. Aggregate Bond Index and the Balanced Composite Index (“Composite”). 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. The Composite is a blended index comprised of (60%) S&P 500 and (40%) Barclays U.S. Aggregate Bond Index. 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 MVP 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
	Affiliated Investment Company (94.9%):
	32,905,226	AZL Invesco Equity and Income Fund	$	494,565,552

	Total Affiliated Investment Company (Cost $488,782,711)			494,565,552

	Unaffiliated Investment Company (3.0%):
	15,554,080	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		15,554,080

	Total Unaffiliated Investment Company (Cost $15,554,080)			15,554,080

	Total Investment Securities (Cost $504,336,791)(b) — 97.9%			510,119,632
	Net other assets (liabilities) — 2.1%			10,724,575

	Net Assets — 100.0%		$	520,844,207

Cash of $10,581,340 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investments in non-affiliates, at cost	$	15,554,080
Investments in affiliates, at cost		488,782,711

Total Investment securities, at cost	$	504,336,791

Investments in non-affiliates, at value	$	15,554,080
Investments in affiliates, at value		494,565,552

Total Investment securities, at value	$	510,119,632
Cash		374,380
Segregated cash for collateral		10,581,340
Receivable for capital shares issued		285,070
Receivable for variation margin on futures contracts		35,080

Total Assets		521,395,502

Liabilities:
Payable for affiliated investments purchased		357,748
Payable for variation margin on futures contracts		116,160
Manager fees payable		44,393
Administration fees payable		4,679
Custodian fees payable		670
Administrative and compliance services fees payable		1,771
Trustee fees payable		1,302
Other accrued liabilities		24,572

Total Liabilities		551,295

Net Assets	$	520,844,207

Net Assets Consist of:
Capital	$	488,205,584
Accumulated net investment income/(loss)		11,530,335
Accumulated net realized gains/(losses) from investment transactions		15,540,349
Net unrealized appreciation/(depreciation) on investments		5,567,939

Net Assets	$	520,844,207

Shares of beneficial interest (unlimited number of shares authorized, no par value)		38,598,395
Net Asset Value (offering and redemption price per share)	$	13.49

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	10,687,796
Dividends		828

Total Investment Income		10,688,624

Expenses:
Manager fees		507,559
Administration fees		54,739
Custodian fees		2,216
Administrative and compliance services fees		8,614
Trustee fees		29,784
Professional fees		24,493
Shareholder reports		33,956
Other expenses		8,262

Total expenses		669,623

Net Investment Income/(Loss)		10,019,001

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		(19,970	)
Net realized gains distributions from affiliated underlying funds		20,674,578
Net realized gains/(losses) on futures contracts		(3,329,301	)
Change in net unrealized appreciation/depreciation on investments		(44,072,890	)

Net Realized/Unrealized Gains/(Losses) on Investments		(26,747,583	)

Change in Net Assets Resulting From Operations	$	(16,728,582	)

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Invesco Equity and Income Fund (the “Fund”), and 12 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, 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.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $26.0 million as of December 31, 2015. The monthly average notional amount for these contracts was $36.9 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $4,800 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $504,570,365. 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, 2015 were as follows:

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

As of December 31, 2015, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Invesco Equity and Income Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, 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 or periods in the four-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, 2015, by correspondence with brokers and transfer agents of the underlying funds. 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 AZL MVP Invesco Equity and Income Fund as of December 31, 2015, 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 or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2015, 93.53% 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, 2015, the Fund declared net long-term capital gain distributions of $11,775,520.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $749,008.

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.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

What factors affected the Fund’s performance during the year ended December 31, 2015?

For the year ended December 31, 2015, the AZL^® MVP T. Rowe Price Capital Appreciation Fund returned 4.15%. That compared to a 1.38%, 0.55% and a 1.20% total return for its benchmarks, the S&P 500 Index¹, the Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index1, respectively.

The AZL^® MVP T. Rowe Price Capital Appreciation Fund is a fund of funds that invests primarily in the shares of the AZL^® T. Rowe Price Capital Appreciation Fund—managed by the Manager. This underlying holding invests in a portfolio of equity, debt, and money market securities. The Fund also employs the MVP (Managed Volatility Portfolio) risk-management process that primarily uses derivatives and is intended to adjust the risk of the portfolio based on quantitative indicators of market risk, such as the current level of fund and market volatility.*

After a volatile year the S&P 500 finished 2015 in positive territory. Equities benefited from steady U.S. economic and employment growth; generally favorable corporate earnings outside the energy sector, which has been hammered by plummeting oil prices since mid-2014; increased merger activity; and aggressive stimulus measures by central banks in Europe and Asia. Sector performance was widely mixed, with the consumer discretionary sector making strong gains while the energy sector finished down significantly. The health care, consumer staples and information technology sectors were also areas of strength.

The portfolio’s equity holdings drove performance, outpacing the S&P 500 Index. The portfolio’s fixed income holdings also posted a positive return during the one-year period, slightly outperforming the Barclays U.S. Aggregate Index. Within equities, the health care sector contributed substantially to relative outperformance due to stock selection and an overweight position. On the downside, the consumer discretionary sector detracted from relative performance due to an underweight position and stock selection.*

The Fund’s subadvisor trimmed holdings within the consumer discretionary, health care and information technology sectors during the period and slightly decreased its overall equity exposure from the prior year. The subadvisor also added to certain positions in the industrials and financials sectors. 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.*

The Fund’s overall weighting to fixed income declined during the year, as the subadvisor trimmed select high-yield bonds and bank loans and added to investment-grade corporate bonds. High-yield bonds continued to decline as tumbling oil prices caused weakness among energy companies. Regardless of the recent volatility, high yield remained the Fund’s largest fixed income asset class, and the subadvisor tended to invest in the highest-quality high-yield bonds. The Fund’s decrease in high yield during the period was largely a function of the subadvisor’s efforts to reduce overall duration in order to provide protection from rising rates.*

The underlying fund held equity options throughout the period, as well as currency forwards and index futures at certain points during the period. Throughout the year, the subadvisor’s covered call strategy represented, on average, 3.88% of the overall portfolio and generated a return of approximately 9.84%. The covered call strategy’s estimated contribution to the portfolio’s total return was 0.34%. The estimated impact on the Fund’s return from employing currency forwards was 2 basis points (bps) (0.02%), while the estimated impact of futures was 26 bps (0.26%) and the estimated impact of options was 6 bps (0.06%).*

The MVP risk management process worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. However, as volatility increased towards the end of the third quarter the MVP process reduced the Fund’s equity exposure. Over the full year the MVP risk management process, which includes derivatives, resulted in a drag on performance.*

Past performance does not guarantee future results.

¹	For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.

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 primarily in shares of another mutual fund managed by the manager; the AZL^® T. Rowe Price Capital Appreciation Fund, combined with the MVP risk management process.

Investment Concerns

Stocks are more volatile and carry more risk and return potential than other forms of investments.

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.

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

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.

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

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, 2015


	1 Year			Since Inception (1/10/14)
AZL^® MVP T. Rowe Price Capital Appreciation Fund		4.15	%		7.72	%
S&P 500 Index		1.38	%		7.62	%
Barclays U.S. Aggregate Bond Index		0.55	%		2.90	%
Balanced Composite Index		1.20	%		5.80	%


Expense Ratio	Gross
AZL^® MVP T. Rowe Price Capital Appreciation Fund		1.06	%

The above expense ratio is based on the current Fund prospectus dated April 27, 2015. 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 0.15% through April 30, 2017. Additional information pertaining to the December 31, 2015 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 0.13%.

The Fund’s performance is measured against the Standard and Poor’s 500 Index (“S&P 500”), the Barclays U.S. Aggregate Bond Index and the Balanced Composite Index (“Composite”). 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. The Composite is a blended index comprised of (60%) of the S&P 500 and (40%) of the Barclays U.S. Aggregate Bond Index. 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 MVP 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
	Affiliated Investment Company (94.9%):
	39,291,956	AZL T. Rowe Price Capital Appreciation Fund	$	630,242,972

	Total Affiliated Investment Company (Cost $634,821,345)			630,242,972

	Unaffiliated Investment Company (2.7%):
	18,136,911	Goldman Sachs Financial Square Federal Fund, Institutional Shares, 0.61%(a)		18,136,911

	Total Unaffiliated Investment Company (Cost $18,136,911)			18,136,911

	Time Deposit (0.0%):
	923,025	BNY Mellon Cash Reserve, 0.00%, 1/4/16(a)		923,025

	Total Time Deposits (Cost $923,025)			923,025

	Total Investment Securities (Cost $653,881,281)(b) — 97.6%			649,302,908
	Net other assets (liabilities) — 2.4%			15,095,749

	Net Assets — 100.0%		$	664,398,657

Cash of $15,139,950 has been segregated to cover margin requirements for the following open contracts as of December 31, 2015:

Statement of Assets and Liabilities

December 31, 2015


Assets:
Investment securities, at cost	$	19,059,936
Investments in affiliates, at cost		634,821,345

Total Investment securities, at cost	$	653,881,281

Investment securities, at value	$	19,059,936
Investments in affiliates, at value		630,242,972

Total Investment securities, at value	$	649,302,908
Segregated cash for collateral		15,139,950
Receivable for capital shares issued		1,037,651
Receivable for variation margin on futures contracts		31,980

Total Assets		665,512,489

Liabilities:
Payable for affiliated investments purchased		842,711
Payable for variation margin on futures contracts		185,752
Manager fees payable		55,287
Administration fees payable		4,662
Custodian fees payable		731
Administrative and compliance services fees payable		2,132
Trustee fees payable		1,567
Other accrued liabilities		20,990

Total Liabilities		1,113,832

Net Assets	$	664,398,657

Net Assets Consist of:
Capital	$	652,057,164
Accumulated net investment income/(loss)		12,329,140
Accumulated net realized gains/(losses) from investment transactions		4,630,111
Net unrealized appreciation/(depreciation) on investments		(4,617,758	)

Net Assets	$	664,398,657

Shares of beneficial interest (unlimited number of shares authorized, no par value)		61,054,496
Net Asset Value (offering and redemption price per share)	$	10.88

Statement of Operations

For the Year Ended December 31, 2015


Investment Income:
Dividends from affiliates	$	3,069,898
Dividends		425

Total Investment Income		3,070,323

Expenses:
Manager fees		500,001
Administration fees		53,590
Custodian fees		2,301
Administrative and compliance services fees		7,657
Trustee fees		25,871
Professional fees		23,245
Shareholder reports		22,781
Other expenses		6,526

Total expenses		641,972

Net Investment Income/(Loss)		2,428,351

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions of affiliates		(119,793	)
Net realized gains distributions from affiliated underlying funds		18,171,208
Net realized gains/(losses) on futures contracts		(3,357,172	)
Change in net unrealized appreciation/depreciation on investments		(2,256,692	)

Net Realized/Unrealized Gains/(Losses) on Investments		12,437,551

Change in Net Assets Resulting From Operations	$	14,865,902

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. 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 13 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP T. Rowe Price Capital Appreciation Fund (the “Fund”), and 12 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, 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.

During the year ended December 31, 2015, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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 $33.0 million as of December 31, 2015. The monthly average notional amount for these contracts was $31.1 million for the year ended December 31, 2015. 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, 2015:

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, 2015:

For the year ended December 31, 2015, 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 Senior Counsel. During the year ended December 31, 2015, $4,267 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, 2015, actual Trustee compensation was $1,165,450 in total for both trusts.

For the year ended December 31, 2015, 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, 2015 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2015, 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, 2015 is $654,009,950. 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, 2015 were as follows:

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

At December 31, 2015, 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, 2015, the Fund had a controlling interest (in excess of 50%) in the AZL T. Rowe Price Capital Appreciation Fund, which is affiliated with the Investment Adviser.

We have audited the accompanying statement of assets and liabilities of AZL MVP T. Rowe Price Capital Appreciation Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2015, and the related statement of operations for the year then ended, and the statements of changes in net assets and the financial highlights for the year or period in the two-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, 2015, by correspondence with the custodian, brokers, and transfer agents of the underlying funds. 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 AZL MVP T. Rowe Price Capital Appreciation Fund as of December 31, 2015, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year or period in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2015, 84.10% 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, 2015, the Fund declared net long-term capital gain distributions of $121,838.

During the year ended December 31, 2015, the Fund declared net short-term capital gain distributions of $79,923.

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.

At the Board of Trustees meeting held October 20, 2015, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Age	Positions Held with Allianz VIP and VIP FOF Trust	Term of Office(2)/Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios Overseen for Allianz VIP and VIP FOF Trust	Other Directorships Held Outside the AZL Fund Complex During Past 5 Years
Peter R. Burnim, Age 68 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, LDN Risk Management and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to present; Managing Director, iQ Venture Advisors, LLC. 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; and Expert Witness, Massachusetts Department of Revenue, 2011 to present.	49	Argus Group Holdings and Subsidiaries; Northstar Group Holdings, NRIL, Sterling Centrecorp Inc.; Highland Financial Holdings; Bank of Bermuda NY; Sterling Trust (Cayman) Ltd.; and LDN Risk Management and Subsidiaries.
Peggy L. Ettestad, Age 58 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	49	Luther College
Roger A. Gelfenbien, Age 72 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	49	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 60 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Chief Executive Officer, Health eSense Inc., 2015 to Present; CEO, Connecticut Innovations, Inc., 2012 to 2015; General Partner, Fairview Capital, L.P., 1994 to 2012	49	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 67 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; 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	49	None
Peter W. McClean, Age 71 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	49	PNMAC Opportunity Fund and Northeast Bank
Arthur C. Reeds III, Age 71 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	49	Connecticut Water Service, Inc.

The fees relate to the review of post-effective registration statements paid to KPMG LLP.

The fees relate to the preparation of the registrant’s tax returns and review of capital gain distribution calculations and preparation of excise tax returns.

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.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


5701 Golden Hills Drive, Minneapolis, MN		55416-1297
(Address of principal executive offices)		(Zip code)


	Beginning Account Value 7/1/15			Ending Account Value 12/31/15			Expenses Paid During Period 7/1/15 - 12/31/15*			Annualized Expense Ratio During Period 7/1/15 - 12/31/15
AZL Balanced Index Strategy Fund		$	1,000.00		$	986.50		$	0.40		0.08	%


	Beginning Account Value 7/1/15			Ending Account Value 12/31/15			Expenses Paid During Period 7/1/15 - 12/31/15*			Annualized Expense Ratio During Period 7/1/15 - 12/31/15
AZL Balanced Index Strategy Fund		$	1,000.00		$	1,024.82		$	0.41		0.08	%


	AZL Balanced Index Strategy Fund
	For the Year Ended December 31, 2015				For the Year Ended December 31, 2014
Change In Net Assets:
Operations:
Net investment income/(loss)		$	9,500,793			$	4,327,937
Net realized gains/(losses) on investment transactions			9,924,533				8,373,210
Change in unrealized appreciation/depreciation on investments			(19,559,324	)			12,413,607

Change in net assets resulting from operations			(133,998	)			25,114,754

Distributions to Shareholders:
From net investment income			(4,617,163	)			(6,008,353	)
From net realized gains			(8,184,855	)			(5,277,414	)

Change in net assets resulting from distributions to shareholders			(12,802,018	)			(11,285,767	)

Capital Transactions:
Proceeds from shares issued			46,025,398				41,123,732
Proceeds from dividends reinvested			12,802,018				11,285,767
Value of shares redeemed			(52,006,249	)			(41,570,033	)

Change in net assets resulting from capital transactions			6,821,167				10,839,466

Change in net assets			(6,114,849	)			24,668,453
Net Assets:
Beginning of period			438,650,574				413,982,121

End of period		$	432,535,725			$	438,650,574

Accumulated net investment income/(loss)		$	11,827,596			$	4,617,148

Share Transactions:
Shares issued			2,880,212				2,613,550
Dividends reinvested			837,828				720,215
Shares redeemed			(3,264,041	)			(2,646,644	)

Change in shares			453,999				687,121


	Year Ended December 31,
	2015				2014				2013				2012				2011
Net Asset Value, Beginning of Period		$	15.91			$	15.40			$	13.91			$	12.84			$	12.63

Investment Activities:
Net Investment Income/(Loss)			0.34				0.16				0.15				0.13				0.10
Net Realized and Unrealized Gains/(Losses) on Investments			(0.34	)			0.78				1.63				1.19				0.20

Total from Investment Activities			—	(a)			0.94				1.78				1.32				0.30

Dividends to Shareholders From:
Net Investment Income			(0.17	)			(0.23	)			(0.25	)			(0.19	)			(0.09	)
Net Realized Gains			(0.30	)			(0.20	)			(0.04	)			(0.06	)			—

Total Dividends			(0.47	)			(0.43	)			(0.29	)			(0.25	)			(0.09	)

Net Asset Value, End of Period		$	15.44			$	15.91			$	15.40			$	13.91			$	12.84

Total Return(b)			0.01	%			6.11	%			12.93	%			10.29	%			2.41	%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	432,536			$	438,651			$	413,982			$	354,111			$	298,174
Net Investment Income/(Loss)			2.14	%			1.02	%			1.10	%			1.08	%			1.10	%
Expenses Before Reductions*(c)			0.08	%			0.08	%			0.08	%			0.09	%			0.09	%
Expenses Net of Reductions*			0.08	%			0.08	%			0.08	%			0.09	%			0.09	%
Portfolio Turnover Rate			11	%			9	%			8	%			7	%			6	%


Investments	Percent of Net Assets
Fixed Income		50.3	%
Domestic Equities		37.2
International Equities		12.4
Money Market		—	^

Total Investment Securities		99.9
Net other assets (liabilities)		0.1

Net Assets		100.0	%


	Annual Rate			Annual Expense Limit
AZL Balanced Index Strategy Fund		0.05	%		0.20	%


	Fair Value 12/31/14			Purchases at Cost			Proceeds from Sales				Fair Value 12/31/15			Dividend Income
AZL Enhanced Bond Index Fund		$	220,420,305		$	30,226,791		$	(26,378,792	)		$	217,300,256		$	4,685,678
AZL International Index Fund			53,671,377			9,948,452			(7,107,076	)			53,818,168			2,265,199
AZL Mid Cap Index Fund			33,040,394			4,249,963			(2,012,401	)			32,048,328			362,586
AZL S&P 500 Index Fund, Class 2			113,073,935			12,937,770			(12,882,801	)			112,168,493			2,345,182
AZL Small Cap Stock Index Fund			17,870,443			2,290,771			(1,047,635	)			16,961,754			185,935

		$	438,076,454		$	59,653,747		$	(49,428,705	)		$	432,296,999		$	9,844,580


Investment Securities:	Level 1			Level 2			Total

Affiliated Investment Companies		$	432,296,999		$	—		$	432,296,999
Unaffiliated Investment Company			1,470			—			1,470

Total Investment Securities		$	432,298,469		$	—		$	432,298,469


	Purchases			Sales
AZL Balanced Index Strategy Fund		$	59,653,747		$	49,428,705


Unrealized appreciation	$	73,768,896
Unrealized depreciation		(1,145,208	)

Net unrealized appreciation/(depreciation)	$	72,623,688


	Ordinary Income			Net Long-Term Capital Gains			Total Distributions(a)
AZL Balanced Index Strategy Fund		$	6,008,353		$	5,277,414		$	11,285,767


The Allianz VIP Fund of Funds are distributed by Allianz Life Financial Services, LLC.
These Funds are not FDIC Insured.		ANNRPT1215 2/16


	AZL DFA Multi-Strategy Fund
	For the Year Ended December 31, 2015				For the Year Ended December 31, 2014
Change In Net Assets:
Operations:
Net investment income/(loss)		$	(990,621	)		$	15,222,330
Net realized gains/(losses) on investment transactions			427,175,530				19,522,321
Change in unrealized appreciation/depreciation on investments			(431,648,756	)			53,635,818

Change in net assets resulting from operations			(5,463,847	)			88,380,469

Distributions to Shareholders:
From net investment income			(16,616,509	)			(16,767,136	)
From net realized gains			(18,692,510	)			(6,699,515	)

Change in net assets resulting from distributions to shareholders			(35,309,019	)			(23,466,651	)

Capital Transactions:
Proceeds from shares issued			67,727,097				120,876,423
Proceeds from dividends reinvested			35,309,019				23,466,651
Value of shares redeemed			(244,017,781	)			(117,544,432	)

Change in net assets resulting from capital transactions			(140,981,665	)			26,798,642

Change in net assets			(181,754,531	)			91,712,460
Net Assets:
Beginning of period			1,439,548,045				1,347,835,585

End of period		$	1,257,793,514			$	1,439,548,045

Accumulated net investment income/(loss)		$	—			$	16,616,452

Share Transactions:
Shares issued			3,586,937				6,625,896
Dividends reinvested			1,961,612				1,270,528
Shares redeemed			(12,894,522	)			(6,453,249	)

Change in shares			(7,345,973	)			1,443,175


	Annual Rate			Annual Expense Limit
AZL DFA Multi-Strategy Fund		0.05	%		0.20	%


	Fair Value 12/31/14			Purchases at Cost			Proceeds from Sales				Fair Value 12/31/15			Dividend Income
AZL DFA Emerging Markets Core Equity Fund		$	—		$	81,378,111		$	(2,260,609	)		$	60,421,230		$	—
AZL DFA Five-Year Global Fixed Income Fund			—			615,514,725			(103,183,407	)			506,986,619			—
AZL DFA International Core Equity Fund			—			105,898,670			(7,347,989	)			88,856,567			—
AZL DFA U.S. Core Equity Fund			—			575,335,004			(71,123,616	)			477,504,072			—
AZL DFA U.S. Small Cap Fund			—			151,283,814			(14,921,301	)			125,295,203			—
AZL Enhanced Bond Index Fund			359,306,887			18,095,297			(383,615,298	)			—			—
AZL International Index Fund			266,650,920			9,601,586			(304,617,087	)			—			—
AZL Mid Cap Index Fund			161,878,009			86,080			(171,254,451	)			—			—
AZL S&P 500 Index Fund, Class 2			570,401,744			19,234,823			(609,215,307	)			—			—
AZL Small Cap Stock Index Fund			82,263,307			—			(85,910,188	)			—			—

		$	1,440,500,867		$	1,576,428,110		$	(1,753,449,253	)		$	1,259,063,691		$	—


Unrealized appreciation	$	—
Unrealized depreciation		(69,444,392	)

Net unrealized appreciation/(depreciation)	$	(69,444,392	)


	AZL MVP Balanced Index Strategy Fund
	For the Year Ended December 31, 2015				For the Year Ended December 31, 2014
Change In Net Assets:
Operations:
Net investment income/(loss)		$	4,931,152			$	1,765,548
Net realized gains/(losses) on investment transactions			3,095,730				2,540,870
Change in unrealized appreciation/depreciation on investments			(9,371,354	)			6,369,014

Change in net assets resulting from operations			(1,344,472	)			10,675,432

Distributions to Shareholders:
From net investment income			(1,897,495	)			(1,840,865	)
From net realized gains			(2,597,183	)			(1,270,967	)

Change in net assets resulting from distributions to shareholders			(4,494,678	)			(3,111,832	)

Capital Transactions:
Proceeds from shares issued			62,074,359				55,390,586
Proceeds from dividends reinvested			4,494,678				3,111,832
Value of shares redeemed			(14,219,428	)			(12,994,224	)

Change in net assets resulting from capital transactions			52,349,609				45,508,194

Change in net assets			46,510,459				53,071,794
Net Assets:
Beginning of period			208,618,443				155,546,649

End of period		$	255,128,902			$	208,618,443

Accumulated net investment income/(loss)		$	6,185,767			$	1,897,488

Share Transactions:
Shares issued			4,896,361				4,472,211
Dividends reinvested			368,416				251,563
Shares redeemed			(1,131,967	)			(1,046,419	)

Change in shares			4,132,810				3,677,355


	Year Ended December 31, 2015				Year Ended December 31, 2014				Year Ended December 31, 2013				January 10, 2012 to December 31, 2012 (a)
Net Asset Value, Beginning of Period		$	12.56			$	12.03			$	10.69			$	10.00

Investment Activities:
Net Investment Income/(Loss)			0.22				0.08				0.10				0.08
Net Realized and Unrealized Gains/(Losses) on Investments			(0.25	)			0.65				1.24				0.77

Total from Investment Activities			(0.03	)			0.73				1.34				0.85

Dividends to Shareholders From:
Net Investment Income			(0.10	)			(0.12	)			—				(0.14	)
Net Realized Gains			(0.13	)			(0.08	)			—	(b)			(0.02	)

Total Dividends			(0.23	)			(0.20	)			—	(b)			(0.16	)

Net Asset Value, End of Period		$	12.30			$	12.56			$	12.03			$	10.69

Total Return(c)			(0.22	)%			6.09	%			12.56	%			8.50	%(d)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	255,129			$	208,618			$	155,547			$	73,830
Net Investment Income/(Loss)			2.08	%			0.97	%			1.09	%			1.41	%
Expenses Before Reductions*(e)			0.14	%			0.15	%			0.17	%			0.39	%
Expenses Net of Reductions*			0.14	%			0.15	%			0.17	%			0.21	%
Portfolio Turnover Rate			5	%			6	%			4	%			11	%(d)


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

Equity Risk Exposure

Equity Contracts	Net Realized gains/(losses) on futures contracts/Change in unrealized appreciation/depreciation on investments	$	(337,579	)	$	(77,202	)

Interest Rate Risk Exposure

Interest Rate			120,873			(56,661	)


	Annual Rate			Annual Expense Limit
AZL MVP Balanced Index Strategy Fund		0.10	%		0.20	%


Unrealized appreciation	$	12,474,078
Unrealized depreciation		(3,671,482	)

Net unrealized appreciation/(depreciation)	$	8,802,596


	Undistributed Ordinary Income			Undistributed Long-Term Capital Gains			Accumulated Capital and Other Losses			Unrealized Appreciation/ (Depreciation)(a)			Total Accumulated Earnings/ (Deficit)
AZL MVP Balanced Strategy Index Strategy Fund		$	6,185,766		$	2,024,572		$	—		$	8,802,596		$	17,012,934


	AZL MVP BlackRock Global Allocation Fund
	For the Year Ended December 31, 2015				For the Year Ended December 31, 2014
Change In Net Assets:
Operations:
Net investment income/(loss)		$	5,591,952			$	7,357,675
Net realized gains/(losses) on investment transactions			14,176,104				43,631,939
Change in unrealized appreciation/depreciation on investments			(33,614,554	)			(34,974,443	)

Change in net assets resulting from operations			(13,846,498	)			16,015,171

Dividends to Shareholders:
From net investment income			(9,611,041	)			(363,407	)
From net realized gains			(13,360,270	)			(3,741,774	)

Change in net assets resulting from dividends to shareholders			(22,971,311	)			(4,105,181	)

Capital Transactions:
Proceeds from shares issued			54,905,887				133,931,989
Proceeds from dividends reinvested			22,971,311				4,105,181
Value of shares redeemed			(29,131,353	)			(13,203,575	)

Change in net assets resulting from capital transactions			48,745,845				124,833,595

Change in net assets			11,928,036				136,743,585
Net Assets:
Beginning of period			818,434,814				681,691,229

End of period		$	830,362,850			$	818,434,814

Accumulated net investment income/(loss)		$	10,684,714			$	16,232,346

Share Transactions:
Shares issued			4,466,783				11,005,694
Dividends reinvested			1,975,177				331,330
Shares redeemed			(2,376,490	)			(1,085,635	)

Change in shares			4,065,470				10,251,389


	Year Ended December 31, 2015				Year Ended December 31, 2014				Year Ended December 31, 2013				January 10, 2012 to December 31, 2012 (a)
Net Asset Value, Beginning of Period		$	12.22			$	12.02			$	10.54			$	10.00

Investment Activities:
Net Investment Income/(Loss)			0.07				0.10				0.05				0.11
Net Realized and Unrealized Gains/(Losses) on Investments			(0.26	)			0.16				1.43				0.56

Total from Investment Activities			(0.19	)			0.26				1.48				0.67

Dividends to Shareholders From:
Net Investment Income			(0.14	)			—	(b)			—				(0.12	)
Realized Gains			(0.20	)			(0.06	)			—	(b)			(0.01	)

Total Dividends			(0.34	)			(0.06	)			—	(b)			(0.13	)

Net Asset Value, End of Period		$	11.69			$	12.22			$	12.02			$	10.54

Total Return(c)			(1.57	)%			2.18	%			14.08	%			6.71	%(d)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	830,363			$	818,435			$	681,691			$	326,544
Net Investment Income/(Loss)(e)			0.67	%			0.96	%			0.55	%			2.01	%
Expenses Before Reductions(e)(f)			1.18	%			1.18	%			1.21	%			2.44	%
Expenses Net of Reductions(e)			1.18	%			1.18	%			1.21	%			2.37	%
Expenses Net of Reductions, Excluding Expenses Paid Indirectly(e)(g)			1.18	%			1.18	%			1.21	%			2.37	%
Portfolio Turnover Rate			64	%			61	%			40	%			119	%(d)


	Number of Contracts			Notional Amount			Cost
Options outstanding at December 31, 2014		4,549,398			3,664,669			$	8,743,630
Options purchased		9,827,021			173,901				15,979,780
Options exercised		(129,653	)		—				(666,949	)
Options expired		(1,068,886	)		(347,627	)			(5,283,541	)
Options closed		(9,737,662	)		(497,845	)			(12,694,201	)

Options outstanding at December 31, 2015		3,440,218			2,993,098			$	6,078,719


	Number of Contracts			Notional Amount			Premiums Received
Options outstanding at December 31, 2014		(4,751,478	)		(3,100	)		$	(3,023,316	)
Options written		(10,108,872	)		(41,479	)			(7,399,924	)
Options exercised		186,374			—				439,746
Options expired		400,670			11,428				901,915
Options closed		10,523,974			28,615				5,830,525

Options outstanding at December 31, 2015		(3,749,332	)		(4,536	)		$	(3,251,054	)


	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		$	2,995,356		$	—			$	38,624		$	—		$	(2,309,996	)
Credit Risk Exposure			—			(29,731	)			—			—			(246,465	)
Interest Rate Risk Exposure			—			1,840,020				7,760			—			(563,976	)
Foreign Exchange Rate Risk Exposure			—			—				—			9,193,446			(3,592,457	)


	Assets				Liabilities
Derivative Financial Instruments:
Futures contracts		$	169,106			$	6,052
Forward currency contracts			873,059				1,068,714
Option contracts*			3,873,689				3,044,955
Swap agreements			465,111				113,062

Total derivative assets and liabilities in the Consolidated Statement of Assets and Liabilities			5,380,965				4,232,783
Derivatives not subject to a master netting agreement or similar agreement (“MNA”)			(451,320	)			(78,030	)

Total assets and liabilities subject to a MNA		$	4,929,645			$	4,154,753


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		$	372,856		$	(51,322	)		$	—			$	(40,000	)		$	281,534
Barclays Bank			99,963			(32,778	)			—				—				67,185
BNP Paribas			352,606			(145,939	)			—				—				206,667
Citibank			344,104			(344,104	)			—				—				—
Credit Suisse First Boston			399,420			(237,226	)			(162,194	)			—				—
Deutsche Bank			1,566,656			(1,251,581	)			—				(315,075	)			—
Goldman Sachs			830,323			(475,847	)			—				(354,476	)			—
HSBC Bank			753			(753	)			—				—				—
JPMorgan Chase			184,546			(129,725	)			—				(54,821	)			—
Morgan Stanley			622,857			(622,857	)			—				—				—
Societe Generale			12,863			(721	)			—				—				12,142
UBS Warburg			142,698			(90,487	)			—				—				52,211

Total		$	4,929,645		$	(3,383,340	)		$	(162,194	)		$	(764,372	)		$	619,739


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		$	51,322		$	(51,322	)		$	—		$	—		$	—
Barclays Bank			32,778			(32,778	)			—			—			—
BNP Paribas			145,939			(145,939	)			—			—			—
Citibank			466,431			(344,104	)			—			—			122,327
Credit Suisse First Boston			237,226			(237,226	)			—			—			—
Deutsche Bank			1,251,581			(1,251,581	)			—			—			—
Goldman Sachs			475,847			(475,847	)			—			—			—
HSBC Bank			94,644			(753	)			—			—			93,891
JPMorgan Chase			129,725			(129,725	)			—			—			—
Morgan Stanley			1,178,052			(622,857	)			—			—			555,195
Societe Generale			721			(721	)			—			—			—
UBS Warburg			90,487			(90,487	)			—			—			—

Total		$	4,154,753		$	(3,383,340	)		$	—		$	—		$	771,413


Security	Acquisition Date(a)		Acquisition Cost			Shares or Principal Amount			Fair Value			Percentage of Net Assets
AliphCom, Inc., 12.00%, 4/1/20		4/27/15		$	3,065,000		$	3,065,000		$	4,358,430		0.52	%
Delta Topco, Ltd.		5/2/12			379,997			615,711			269,681		0.03	%
Delta Topco, Ltd., 10.00%, 11/24/60		5/2/12			701,862			567,978			569,682		0.07	%
Domo, Inc., Series E		4/1/15			1,218,214			144,482			1,219,009		0.15	%
Dropbox, Inc.		1/28/14			1,827,985			95,700			1,268,982		0.15	%
Grand Rounds, Inc.		3/31/15			399,608			143,925			411,395		0.05	%
Lookout, Inc.		3/4/15			63,364			5,547			63,364		0.01	%
Lookout, Inc., Preferred Shares		9/19/14			730,222			63,925			730,222		0.09	%
Palantir Technologies, Inc., Series I, 0.00%, Series I		3/27/14			712,042			116,157			1,108,137		0.13	%
Project Samson BND Corp., 12.00%, 4/1/20		11/11/15			268,000			268,000			380,292		0.05	%
REI Agro, Ltd., Registered Shares, 5.50%, 11/13/14		2/7/12			300,000			400,000			2,000		0.00	%
Uber Technologies, Inc.		3/21/14			1,063,120			68,532			3,342,456		0.40	%


Unrealized appreciation	$	49,175,778
Unrealized depreciation		(60,516,512	)

Net unrealized appreciation/(depreciation)	$	(11,340,734	)


	AZL MVP DFA Multi-Strategy Fund
	April 27, 2015 to December 31, 2015 (a)
Change In Net Assets:
Operations:
Net investment income/(loss)		$	(16,859	)
Net realized gains/(losses) on investment transactions			(59,515	)
Change in unrealized appreciation/depreciation on investments			(794,395	)

Change in net assets resulting from operations			(870,769	)

Capital Transactions:
Proceeds from shares issued			27,572,107
Value of shares redeemed			(614,046	)

Change in net assets resulting from capital transactions			26,958,061

Change in net assets			26,087,292
Net Assets:
Beginning of period			—

End of period		$	26,087,292

Accumulated net investment income/(loss)		$	—

Share Transactions:
Shares issued			2,809,530
Shares redeemed			(63,490	)

Change in shares			2,746,040


	Annual Rate*	Annual Expense Limit**

AZL MVP DFA Multi-Strategy Fund	0.20%		0.30	%