ALLIANZ VARIABLE INSURANCE PRODUCTS FUND OF FUNDS TRUST

Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219-8000

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, 2016?

For the year ended December 31, 2016, the AZL^® Balanced Index Strategy Fund (the “Fund”) had a total return of 6.75%. That compared to a 11.96%, 2.65% and 7.28% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The 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 Bloomberg Barclays Capital 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.*

Overall, 2016 brought a favorable economic backdrop for stocks. Major equity categories posted gains during the period under review, as U.S. economic growth remained steady, corporate earnings in most sectors proved robust, central banks in many major economies continued to pursue accommodative strategies, and merger activity increased. Even so, the path of equity returns was not linear. For example, global markets declined sharply following Britain’s June vote to leave the European Union, but stocks recovered quickly. Meanwhile, U.S. equities posted particularly strong gains during a year-end rally after Donald Trump’s victory in the U.S. presidential election. The S&P 500 gained 11.96% during the period while the MSCI EAFE, burdened in part by the impact of a strengthening dollar, rose 1.00%.

Fixed-income markets were generally positive during the period under review. The Federal Reserve raised the federal funds rate for the second time in a decade and indicated that more rate hikes are likely in 2017. Spreads between U.S. Treasuries and corporate bonds tightened during the year, as investors searched for higher yields. The Bloomberg Barclays U.S. Aggregate Bond Index gained 2.65% during the period under review.

The Fund underperformed its composite benchmark for the period under review. The underperformance was primarily driven by the Fund’s strategic allocation to international equity markets, which broadly lagged domestic stocks during the period. The underlying fixed-income portfolio also lagged its benchmark during the period, which further weighed on the Fund’s relative performance against the composite benchmark.*

The Fund’s allocations to small- and mid-cap U.S. equities, however, contributed positively to relative returns as they collectively outperformed the larger stocks found in the S&P 500 Index. The S&P 400 Index gained 20.74% during the period while the S&P 600 Index rose 26.56%.*

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, 2016.

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.

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 Index Strategy 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.

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, 2016


	1 Year			3 Year			5 Year			Since Inception (7/10/09)
AZL^® Balanced Index Strategy Fund		6.75	%		4.25	%		7.13	%		8.38	%
S&P 500 Index		11.96	%		8.87	%		14.66	%		15.74	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.23	%		3.77	%
Balanced Composite Index		7.28	%		6.00	%		8.44	%		9.90	%

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		0.70	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 Bloomberg 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 Bloomberg 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%) Bloomberg 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 (100.0%):
	20,027,501	AZL Enhanced Bond Index Fund	$	213,693,435
	3,942,947	AZL International Index Fund, Class 2		55,595,556
	1,618,162	AZL Mid Cap Index Fund, Class 2		34,709,583
	8,178,042	AZL S&P 500 Index Fund, Class 2		114,983,267
	1,364,053	AZL Small Cap Stock Index Fund, Class 2		19,410,475

	Total Affiliated Investment Companies (Cost $365,875,172)			438,392,316

	Total Investment Securities (Cost $365,875,172)(a) — 100.0%			438,392,316
	Net other assets (liabilities) — 0.0%			(92,188	)

	Net Assets — 100.0%		$	438,300,128

Percentages indicated are based on net assets as of December 31, 2016.

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

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in affiliates, at cost	$	365,875,172

Investments in affiliates, at value	$	438,392,316
Interest and dividends receivable		7
Receivable for affiliated investments sold		15,960
Prepaid expenses		2,478

Total Assets		438,410,761

Liabilities:
Cash overdraft		12,088
Payable for capital shares redeemed		57,318
Manager fees payable		18,619
Administration fees payable		4,782
Custodian fees payable		1,015
Administrative and compliance services fees payable		1,243
Trustee fees payable		944
Other accrued liabilities		14,624

Total Liabilities		110,633

Net Assets	$	438,300,128

Net Assets Consist of:
Capital	$	337,170,922
Accumulated net investment income/(loss)		9,832,388
Accumulated net realized gains/(losses) from investment transactions		18,779,674
Net unrealized appreciation/(depreciation) on investments		72,517,144

Net Assets	$	438,300,128

Shares of beneficial interest (unlimited number of shares authorized, no par value)		27,836,662
Net Asset Value (offering and redemption price per share)	$	15.75

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	8,364,785
Dividends		2,814

Total Investment Income		8,367,599

Expenses:
Manager fees		219,461
Administration fees		54,461
Custodian fees		1,915
Administrative and compliance services fees		7,401
Trustee fees		25,128
Professional fees		18,807
Shareholder reports		12,387
Other expenses		8,979

Total expenses		348,539

Net Investment Income/(Loss)		8,019,060

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		584,036
Net realized gains distributions from affiliated underlying funds		21,154,188
Change in net unrealized appreciation/depreciation on investments		(1,251,752	)

Net Realized/Unrealized Gains/(Losses) on Investments		20,486,472

Change in Net Assets Resulting From Operations	$	28,505,532

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL Balanced Index Strategy Fund (the “Fund”), and 11 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.

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) 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, 2018. Expenses incurred for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.”

For the year ended December 31, 2016, 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, 2016, 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, 2016, 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 and is paid a separate fee from the underlying funds for such services. At December 31, 2016, these underlying funds are noted as Affiliated Investment Companies in the Fund’s Schedule of Portfolio Investments. A summary of the Fund’s investments in affiliated investment companies for the year ended December 31, 2016 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 (“SEC” or the “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. The Administrator is entitled to an annual fee for each additional class of shares of any Fund, certain annual fees in supporting fair values 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. 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.”

Fidelity National Information Services, Inc. (“FIS”) (formerly, SunGard Investor Services LLC) serves as the Fund’s transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Bank of New York Mellon (“BNY Mellon” or the “Custodian”) serves as the Trust’s custodian and securities lending agent. For these services as custodian, the Funds pay BNY Mellon a fee based on a percentage of assets held on behalf of the Funds, plus certain out-of-pocket charges.

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, 2016, $4,485 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 $170,000 annual Board retainer; the Lead Director receives an additional $42,500 annually and the Chair of the Nominating and Corporate Governance Committee receives an additional $25,500 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, 2016, actual Trustee compensation was $1,258,000 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 (the “Board” or “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, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, 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, 2016, the Fund did not directly invest in derivatives.

It is the policy of the Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined under Subchapter M of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provisions for federal income taxes are required in the financial statements.

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 of securities for federal income tax purposes at December 31, 2016 is $367,827,544. 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, 2016 were as follows:

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

At December 31, 2016, the components of accumulated earnings on a tax basis were as follows:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the “Rules”). The Rules which introduce two new regulatory reporting forms for investment companies - Form N-PORT and Form N-CEN - also contain amendments to Regulation S-X which require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The amendments are effective for filings made with the SEC after August 1, 2017. Management is currently evaluating the impact of the amendments on the fund’s financial statements. The adoption will have no effect on the Funds’ net assets or results of operations.

Management of the Fund has evaluated the need for additional disclosures or adjustments resulting from events through the date the financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have material impact on the Fund’s financial statements.

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, 2016, 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, 2016, by correspondence with the 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, 2016, 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, 2016, 24.40% 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, 2016, the Fund declared net long-term capital gain distributions of $7,976,603.

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, 2018.

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, and Moderate 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 2016. Information relevant to the approval of such Agreement was considered at a telephonic Board of Trustees meeting on October 19, 2016, and at an “in person” Board of Trustees meeting held October 25, 2016. The Agreement was approved at the Board meeting of October 25, 2016. At such meeting the Board also approved an Expense Limitation Agreement between the Manager and the Trust for the period ending April 30, 2018. 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 2016 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 25, 2016, the Manager reported that for the three year period ended June 30, 2016, for the 10 Funds for which three year performance information was available, five Funds were in the top 40% and five Funds were in the bottom 40%. For the 12 Funds for which one year performance information was available, for the one year period ended June 30, 2016, three Funds were in the top 40%, five Funds were in the middle 20%, and four Funds were in the bottom 40%. The Manager also reported that for the five Funds for which five year performance information was available, for the five year period ended June 30, 2016, three were in the top 40% and two were in the bottom 40%.

At the Board of Trustees meeting held October 25, 2016 the Manager reported upon the performance of the MVP Funds compared to custom managed volatility peer groups. For the eight Funds for which three year performance information was available, for the three year period ended June 30, 2016, five Funds were in the top 40%, one Fund was in the middle 20%, and two were in the bottom 40%. For the ten Funds for which one year performance was available, for the one year period ended June 30, 2016, four Funds were in the top 40%, three were in the middle 20%, and three were in the bottom 40%.

At the Board of Trustees meeting held October 25, 2016, 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 three MVP Fusion Funds the advisory fee paid put these Funds in the 41^st percentile of the customized peer group. The Manager reported that for three Index Strategy Funds the advisory fee paid put them in the 33^rd percentile of the customized peer group. The Manager reported that for the AZL MVP BlackRock Global Allocation, AZL MVP DFA Multi-Strategy, AZL MVP T. Rowe Price Capital Appreciation, and for the AZL DFA Multi-Strategy Funds, the advisory paid fee was in the 10^th 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 2013 through June 30, 2016. 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, 2016 were approximately $10.4 billion and that the largest Fund, the AZL MVP Fusion Moderate Fund, had assets of approximately $2.4 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, 2017, 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.

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


Name, Address, and Age	Positions Held with 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

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, 2016?

For the year ended December 31, 2016, the AZL^® DFA Multi-Strategy Fund (the “Fund”) returned 9.32%. That compared to a 11.96%, 2.65% and 8.21% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Multi-Strategy Composite Index¹, respectively.

The 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.*

U.S. stocks posted solid gains for the period under review despite a challenging start. Concerns about global economic growth in January and February drove investors away from higher risk securities, pushing down equity markets to start the year. Markets rebounded in mid-February, however, and went on to post steady gains for most of the rest of the year, with the exception of a brief spike in volatility in June following the U.K.’s vote to exit the European Union.

U.S. labor markets continued to make gains during the year, although muted inflation figures kept the Federal Reserve in a dovish stance for most of the year. U.S. equity markets experienced a boost late in the year following the U.S. presidential election, as investors anticipated a more business-friendly environment.

Value stocks significantly outperformed growth stocks during 2016 while smaller stocks outperformed larger stocks; the S&P 500 Index gained 11.96% during the period while the S&P 600 Index² gained 26.56% and the S&P 400 Index³ gained 20.74%. International equity markets were unable to keep up with their U.S. counterparts and generally experienced smaller gains, despite continued quantitative easing efforts by central banks in Europe and Japan. The MSCI EAFE Index⁴, burdened by the impact of a strengthening dollar, rose 1.00%.

Meanwhile, the U.S. bond market faced a significant headwind from rising interest rates. Treasury yields trended downward during the first half of the year, only to rise sharply after the surprising U.S. presidential election results led investors to believe inflation was on the horizon. Spreads fell throughout the year, after briefly rising during the first two months. The Bloomberg Barclays U.S. Aggregate Bond Index gained 2.65%.

The Fund outperformed its composite benchmark during the period under review. Its domestic equity holdings benefited from a bias toward value stocks, which outperformed growth stocks for the period. The Fund’s greater-than-benchmark exposure to small- and mid-cap stocks also added to relative results, as those assets outperformed their large-cap counterparts. However, the Fund’s exposure to developed international equities negatively affected performance.*

Within its fixed-income portfolio, the Fund’s tilt toward short duration contributed positively to returns compared to its composite benchmark as interest rates rose during the year. However, the Fund’s high-credit-quality portfolio negatively affected performance as spreads generally tightened during the year.*

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.

³	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.

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

Investment Concerns

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

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

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

Debt securities held by the Fund may decline in value due to rising interest rates. Interest rates in the U.S. are at, or near, historic lows, which may increase the Fund’s exposure to risks related to rising rates.

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, 2016


										Since
	1			3			5			Inception
	Year			Year			Year			(7/10/09)
AZL^® DFA Multi-Strategy Fund		9.32	%		4.97	%		9.68	%		10.66	%
S&P 500 Index		11.96	%		8.87	%		14.66	%		15.74	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.23	%		3.77	%
Multi-Strategy Composite Index		8.21	%		6.58	%		9.68	%		11.09	%


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 Bloomberg 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 Bloomberg 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%) Bloomberg 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 (100.0%):
	6,577,678	AZL DFA Emerging Markets Core Equity Fund	$	55,318,276
	46,426,456	AZL DFA Five-Year Global Fixed Income Fund		462,407,497
	8,997,409	AZL DFA International Core Equity Fund		82,866,140
	43,085,107	AZL DFA U.S. Core Equity Fund		462,734,052
	11,432,987	AZL DFA U.S. Small Cap Fund		130,564,710

	Total Affiliated Investment Companies (Cost $1,163,394,585)			1,193,890,675

	Total Investment Securities (Cost $1,163,394,585)(a) —100.0%			1,193,890,675
	Net other assets (liabilities) — 0.0%			278,675

	Net Assets — 100.0%		$	1,194,169,350

Percentages indicated are based on net assets as of December 31, 2016.

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

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in affiliates, at cost	$	1,163,394,585

Investments in affiliates, at value	$	1,193,890,675
Cash		3,815
Interest and dividends receivable		94
Receivable for capital shares issued		393,277
Receivable for affiliated investments sold		369,926
Prepaid expenses		6,167

Total Assets		1,194,663,954

Liabilities:
Payable for capital shares redeemed		392,353
Manager fees payable		50,769
Administration fees payable		5,253
Custodian fees payable		2,301
Administrative and compliance services fees payable		3,418
Trustee fees payable		2,595
Other accrued liabilities		37,915

Total Liabilities		494,604

Net Assets	$	1,194,169,350

Net Assets Consist of:
Capital	$	1,158,280,574
Accumulated net investment income/(loss)		9,184,122
Accumulated net realized gains/(losses) from investment transactions		(3,791,436	)
Net unrealized appreciation/(depreciation) on investments		30,496,090

Net Assets	$	1,194,169,350

Shares of beneficial interest (unlimited number of shares authorized, no par value)		94,079,291
Net Asset Value (offering and redemption price per share)	$	12.69

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	9,828,500
Dividends		69

Total Investment Income		9,828,569

Expenses:
Manager fees		598,599
Administration fees		59,643
Custodian fees		3,875
Administrative and compliance services fees		19,404
Trustee fees		65,222
Professional fees		48,548
Shareholder reports		28,341
Other expenses		26,018

Total expenses		849,650

Net Investment Income/(Loss)		8,978,919

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(3,676,956	)
Net realized gains distributions from affiliated underlying funds		215,858
Change in net unrealized appreciation/depreciation on investments		99,815,406

Net Realized/Unrealized Gains/(Losses) on Investments		96,354,308

Change in Net Assets Resulting From Operations	$	105,333,227

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL DFA Multi-Strategy Fund (the “Fund”), and 11 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) 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, 2016, 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, 2016, $12,337 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $1,163,762,909. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

As of the end of its tax year ended December 31, 2016, the Fund has capital loss carry forwards (“CLCFs”) as summarized in the table below. CLCFs subject to expiration are applied as short-term capital loss regardless of whether the originating capital loss was short-term or long-term. CLCFs that are not subject to expiration must be utilized before those that are subject to expiration. The Board does not intend to authorize a distribution of any realized gain for the Fund until any applicable CLCF has been offset or expires.

The tax character of dividends paid to shareholders during the year ended December 31, 2016 were as follows:

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

At December 31, 2016, 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, 2016, the Fund had an individual shareholder account which is affiliated with the Investment Adviser representing ownership in excess of 90% of the Fund. As of December 31, 2016, 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 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 (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2016, 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, 2016, by correspondence with 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 DFA Multi-Strategy Fund as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

During the year ended December 31, 2016, the Fund declared net long-term capital gain distributions of $421,138,752.

During the year ended December 31, 2016, the Fund declared net short-term capital gain distributions of $2,499,723.

At the Board of Trustees meeting held October 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL^® MVP Balanced Index Strategy Fund (the “Fund”) returned 6.61%. That compared to a 11.96%, 2.65% and a 7.28% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The 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 Bloomberg Barclays Capital 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, 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.*

Overall, 2016 brought a favorable economic backdrop for stocks. Major equity categories posted gains during the period under review, as U.S. economic growth remained steady, corporate earnings in most sectors proved robust, central banks in many major economies continued to pursue accommodative strategies, and merger activity increased. Even so, the path of equity returns was not linear. For example, global markets declined sharply following Britain’s June vote to leave the European Union, but stocks recovered quickly. Meanwhile, U.S. equities posted particularly strong gains during a year-end rally after Donald Trump’s victory in the U.S. presidential election. The S&P 500 gained 11.96% during 2016 while the MSCI EAFE, burdened by the impact of a strengthening dollar, rose 1.00%.

The MVP risk management process that includes the use of derivatives worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. In early 2016, global growth concerns led to increased volatility and the MVP reduced the Fund’s equity exposure. Equity markets quickly recovered, however, and the MVP risk management process ultimately caused a drag on the Fund’s performance relative to its benchmark.*

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.

Investors cannot invest directly in an index.

Fund Objective

Investment Concerns

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, 2016


							Since
	1			3			Inception
	Year			Year			(1/10/12)
AZL^® MVP Balanced Index Strategy Fund		6.61	%		4.11	%		6.66	%
S&P 500 Index		11.96	%		8.87	%		14.10	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.26	%
Balanced Composite Index		7.28	%		6.00	%		8.19	%


Expense Ratio	Gross
AZL^® MVP Balanced Index Strategy Fund		0.73	%

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%):
	13,888,556	AZL Enhanced Bond Index Fund	$	148,190,890
	2,727,556	AZL International Index Fund, Class 2		38,458,535
	1,134,810	AZL Mid Cap Index Fund, Class 2		24,341,674
	5,140,234	AZL S&P 500 Index Fund, Class 2		72,271,689
	973,383	AZL Small Cap Stock Index Fund, Class 2		13,851,238

	Total Affiliated Investment Companies (Cost $285,678,819)			297,114,026

	Unaffiliated Investment Company (0.2%):
	514,226	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares , 0.31%(a)		514,226

	Total Unaffiliated Investment Company (Cost $514,226)			514,226

	Total Investment Securities (Cost $286,193,045)(b) — 95.2%			297,628,252
	Net other assets (liabilities) — 4.8%			15,116,714

	Net Assets — 100.0%		$	312,744,966

Percentages indicated are based on net assets as of December 31, 2016.

(a)	The rate represents the effective yield at December 31, 2016.

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

Cash of $15,630,418 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in non-affiliates, at cost	$	514,226
Investments in affiliates, at cost		285,678,819

Total Investment securities, at cost	$	286,193,045

Investments in non-affiliates, at value	$	514,226
Investments in affiliates, at value		297,114,026

Total Investment securities, at value	$	297,628,252
Segregated cash for collateral		15,630,418
Interest and dividends receivable		98
Receivable for capital shares issued		45,553
Receivable for variation margin on futures contracts		591
Prepaid expenses		1,564

Total Assets		313,306,476

Liabilities:
Cash overdraft		483,152
Payable for affiliated investments purchased		27,204
Payable for capital shares redeemed		6,755
Payable for variation margin on futures contracts		783
Manager fees payable		25,634
Administration fees payable		4,695
Custodian fees payable		1,087
Administrative and compliance services fees payable		854
Trustee fees payable		648
Other accrued liabilities		10,698

Total Liabilities		561,510

Net Assets	$	312,744,966

Net Assets Consist of:
Capital	$	285,884,391
Accumulated net investment income/(loss)		5,886,408
Accumulated net realized gains/(losses) from investment transactions		9,570,421
Net unrealized appreciation/(depreciation) on investments		11,403,746

Net Assets	$	312,744,966

Shares of beneficial interest (unlimited number of shares authorized, no par value)		24,547,610
Net Asset Value (offering and redemption price per share)	$	12.74

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	5,144,794
Dividends		4,613

Total Investment Income		5,149,407

Expenses:
Manager fees		281,433
Administration fees		53,295
Custodian fees		2,057
Administrative and compliance services fees		4,710
Trustee fees		15,874
Professional fees		12,430
Shareholder reports		9,173
Other expenses		5,686

Total expenses		384,658

Net Investment Income/(Loss)		4,764,749

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(2,107,017	)
Net realized gains distributions from affiliated underlying funds		12,859,477
Net realized gains/(losses) on futures contracts		496,993
Change in net unrealized appreciation/depreciation on investments		2,043,805

Net Realized/Unrealized Gains/(Losses) on Investments		13,293,258

Change in Net Assets Resulting From Operations	$	18,058,007

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Balanced Index Strategy Fund (the “Fund”), and 11 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) 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, 2016, 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 $15.5 million as of December 31, 2016. The monthly average notional amount for these contracts was $13.6 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $2,833 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $288,606,341. 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, 2016 were as follows:

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

At December 31, 2016, 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, 2016, 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 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, 2016, 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 Balanced Index Strategy Fund as of December 31, 2016, 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 five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2016, 23.93% 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, 2016, the Fund declared net long-term capital gain distributions of $2,024,582.

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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance for the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL^® MVP BlackRock Global Strategy Plus Fund (the “Fund”) returned 3.34%. That compared to a 8.65%, 11.96%, 4.82%, 0.54%, 1.81% and a 5.22% 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 Fund is a fund of funds that invests primarily in a combination of three underlying mutual funds (the “Underlying Funds”), which are managed by the Manager. The Fund is designed to provide a diversified portfolio consisting of Underlying Funds in equity and fixed income asset classes, combined with the MVP (Managed Volatility Portfolio) risk management process 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. equity markets generally outperformed international equities for the 12-month period; the S&P 500 Index gained 11.96% while the FTSE World Ex US Index posted a more modest advance of 4.82%. These gains came despite a weak start to the year due to concerns about slowing global economic growth, particularly in China, and falling commodity prices. Markets rebounded in mid-February as China’s central banks announced stimulus measures and the Federal Reserve (the Fed) adopted a cautious tone on interest rates. Equity market gains were briefly interrupted in late June when the U.K. voted to leave the European Union, and again prior to the U.S. elections in November. However, domestic equities rallied strongly following the election of Donald Trump in anticipation of stronger economic growth.

In fixed-income markets, the year began with risk-averse investors driving credit spreads wider. As sentiment recovered in the middle of the first quarter, spreads narrowed once again, pushing volatility to its lowest level since August 2015. For much of the period, investors flocked to U.S. investment-grade bonds in search of yield amid historically low interest rates fueled in part by continued quantitative easing efforts by the European Central Bank and Bank of Japan. This shift drove up bond prices and further squeezed credit spreads. The victory of President Trump fueled inflation expectations. In this environment, the Fed decided to raise interest rates in December and strike a slightly more hawkish tone for 2017.

The Fund underperformed its reference benchmark for the 12-month period under review. A higher-than-benchmark exposure to Japanese stocks dragged on relative performance as that country’s equities underperformed. An underweight position to U.S. equities also detracted, as domestic stocks largely outperformed their international counterparts. Stock selection in the telecom services, utilities, real estate² and consumer discretionary sectors also weighed on relative results. Other detractors included exposure to commodity-related securities. The Fund’s currency management strategy—particularly an underweight position to the Brazilian real, Japanese yen, and Canadian dollar—also detracted from relative performance.*

Within equities, the Fund’s relative performance benefited from lower-than-benchmark exposure to both financials and consumer staples stocks, which struggled for much of the period under review. Stock selection among financials also contributed to relative results. The Fund’s stock selection and overweight position in the energy sector added to relative performance, as that sector benefited from the rebound in oil prices that began midway through the first quarter.*

Among fixed income holdings, the Fund’s tilt toward corporate bonds contributed to relative returns; the sector outperformed for much of the period as credit spreads narrowed.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review and largely maintained a neutral equity allocation for most of the year relative to its target. There were two periods of volatility in 2016 during which the MVP process reduced the Fund’s equity exposure. In both instances, markets quickly recovered, and the MVP risk management process ultimately dragged on 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, 2016.
¹		For a complete description of the Fund’s performance benchmarks please refer to page 2 of this report.
²		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), real estate operating companies (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.


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 a combination of Underlying Funds, which are managed by the manager, combined with the MVP risk management process.
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.
Returns on growth stocks may not move in tandem with returns on other categories of stocks or the market as a whole. Growth stocks may be susceptible to rapid price savings or to adverse developments in certain sectors of the market.
Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries.
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.
Mortgage-backed investments involve risk of loss due to prepayments and, like any bond, due to default. Because of the sensitivity of mortgage-related securities to changes in interest rates, the Fund’s performance may be more volatile than if it did not hold these securities.
Debt securities held by the Fund may decline in value due to rising interest rates. Interest rates in the U.S. are at, or near, historic lows, which may increase the Fund’s exposure to risks related to rising rates.
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, 2016
							Since Inception (1/10/12)
	1 Year			3 Year			Since Inception (1/10/12)
AZL^® MVP BlackRock Global Strategy Plus Fund		3.34	%		1.30	%		4.84	%
FTSE World Index		8.65	%		3.93	%		9.94	%
S&P 500 Index		11.96	%		8.87	%		14.10	%
FTSE World ex U.S. Index		4.82	%		-1.11	%		5.63	%
BofA Merrill Lynch 5-Year U.S. Treasury Bond Index		0.54	%		1.65	%		0.96	%
Citigroup Non-U.S. Dollar World Government Bond Index		1.81	%		-2.18	%		-1.78	%
Reference Benchmark		5.22	%		2.62	%		5.37	%


Expense Ratio	Gross
AZL^® MVP BlackRock Global Strategy Plus Fund		0.97	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 0.67%.

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 (30%) S&P 500; (20%) FTSE World ex U.S. Index; (30%) BofA Merrill Lynch 5-Year U.S. Treasury Bond; and (20%) 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 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.


Investments	Percent of Net Assets
Affiliated Investment Companies		44.9	%
Common Stocks		27.4
U.S. Treasury Obligations		7.7
Foreign Bonds		7.1
Securities Held as Collateral for Securities on Loan		2.2
Corporate Bonds		1.5
Exchange Traded Funds		1.4
Yankee Dollars		1.4
Money Markets		1.0
Preferred Stocks		0.9
Bank Loans		0.6
Convertible Bonds		0.5
Purchased Options		0.5
U.S. Government Agency Mortgages		0.3
Convertible Preferred Stocks		0.2
Collateralized Mortgage Obligations		0.1
Mutual Funds		0.1
Purchased Swaptions		—	^
Private Placements		—	^
Warrants		—	^
Rights		—	^

Total Investment Securities		97.8
Net other assets (liabilities)		2.2

Net Assets		100.0	%

^	Represents less than 0.05%


Investments	Percent of Net Assets
United States		75.1	%
Japan		8.3
United Kingdom		2.2
France		1.4
Germany		1.2
Canada		1.2
Netherlands		1.0
Australia		0.8
India		0.5
Italy		0.5
All other countries		5.6

Total Investment Securities		97.8
Net other assets (liabilities)		2.2

Net Assets		100.0	%


Shares			Fair Value
	Common Stocks (27.4%):
	Aerospace & Defense (0.6%):
	149,433	BAE Systems plc	$	1,085,029
	382	Boeing Co. (The)		59,470
	530	Dassault Aviation SA		591,292
	21,926	European Aeronautic Defence & Space Co. NV		1,446,877
	493	General Dynamics Corp.		85,121
	3,382	Hexcel Corp.^		173,971
	42,667	Meggitt plc		240,906
	349	Northrop Grumman Corp.		81,170
	398	Raytheon Co.		56,516
	19,213	Safran SA		1,383,087

				5,203,439

	Airlines (0.6%):
	20,251	Delta Air Lines, Inc.		996,147
	41,500	Japan Airlines Co., Ltd.		1,211,172
	20,195	Southwest Airlines Co.		1,006,519
	24,735	United Continental Holdings, Inc.*		1,802,686

				5,016,524

	Auto Components (0.5%):
	9,700	Aisin Sieki Co., Ltd.		419,832
	16,600	Bridgestone Corp.		597,214
	95,683	Cheng Shin Rubber Industry Co., Ltd.		179,910
	21,500	Denso Corp.		928,896
	1,800	Exedy Corp.		50,563
	13,400	Futaba Industrial Co., Ltd.		78,150
	1,317	Goodyear Tire & Rubber Co.^		40,656
	5,300	Koito Manufacturing Co., Ltd.		279,903
	956	Lear Corp.		126,546
	3,800	Stanley Electric Co., Ltd.		103,593
	30,500	Sumitomo Electric Industries, Ltd.		437,993
	23,000	Toyota Industries Corp.		1,092,453

				4,335,709

	Automobiles (0.6%):
	158,000	Brilliance China Automotive Holdings, Ltd.		216,861
	47,720	Ford Motor Co.		578,844
	31,600	Fuji Heavy Industries, Ltd.		1,285,535
	2,258	Hero MotoCorp, Ltd.		100,896
	17,800	Honda Motor Co., Ltd.		518,281
	4,381	Hyundai Motor Co.		526,433
	9,300	Isuzu Motors, Ltd.		117,420
	3,683	Maruti Suzuki India, Ltd.		286,925
	37,100	Suzuki Motor Corp.		1,302,484
	4,100	Toyota Motor Corp.		239,387
	144	Volkswagen AG		20,679

				5,193,745

	Banks (2.2%):
	60,829	Banco Bilbao Vizcaya Argentaria SA		410,313
	109,951	Banco Santander SA		573,887
	137,809	Bank of America Corp.		3,045,579
	12,581	BNP Paribas SA		801,312
	30,626	Citigroup, Inc.		1,820,103


Shares			Fair Value
	Common Stocks, continued
	Banks, continued
	1,328	Fifth Third Bancorp^	$	35,816
	206,417	HSBC Holdings plc		1,668,733
	66,782	ING Groep NV		939,682
	29,178	JPMorgan Chase & Co.		2,517,770
	115,400	Mitsubishi UFJ Financial Group, Inc.		709,566
	38,200	Sumitomo Mitsui Financial Group, Inc.		1,448,350
	11,507	SunTrust Banks, Inc.		631,159
	50,560	Svenska Handelsbanken AB, Class A		702,799
	13,358	Toronto-Dominion Bank (The)		658,895
	17,783	Wells Fargo & Co.		980,021

				16,943,985

	Beverages (0.4%):
	12,737	Anheuser-Busch InBev NV		1,344,922
	13,900	Asahi Breweries, Ltd.		438,318
	477	Constellation Brands, Inc., Class C		73,129
	6,820	Diageo plc, ADR^		708,871
	1,475	PepsiCo, Inc.		154,329

				2,719,569

	Biotechnology (0.5%):
	983	AbbVie, Inc.		61,555
	2,834	Amgen, Inc.		414,359
	1,599	Biogen Idec, Inc.*		453,444
	28,639	Gilead Sciences, Inc.		2,050,840
	15,263	Invitae Corp.*		121,188
	16,063	Shire plc		910,077
	2,812	Vertex Pharmaceuticals, Inc.*		207,160

				4,218,623

	Building Products (0.3%):
	12,025	Compagnie de Saint-Gobain SA		559,880
	4,900	Daikin Industries, Ltd.		448,798
	8,066	Fortune Brands Home & Security, Inc.^		431,208
	16,733	Masco Corp.		529,098

				1,968,984

	Capital Markets (0.5%):
	503	Ameriprise Financial, Inc.		55,803
	762	Bank of New York Mellon Corp. (The)		36,104
	1,070	Brookfield Asset Management, Inc., Class A		35,308
	20,018	Charles Schwab Corp. (The)		790,110
	533	CME Group, Inc.		61,482
	19,000	Daiwa Securities Group, Inc.		116,733
	5,239	Goldman Sachs Group, Inc. (The)		1,254,478
	26,170	Morgan Stanley		1,105,682
	34,837	UBS Group AG		545,532

				4,001,232

	Chemicals (1.3%):
	8,422	Air Products & Chemicals, Inc.		1,211,252
	11,287	AkzoNobel NV		704,788
	2,657	Arkema SA		259,535
	55,000	Asahi Kasei Corp.		478,896
	46,960	Axalta Coating Systems, Ltd.*		1,277,312


Shares			Fair Value
	Common Stocks, continued
	Chemicals, continued
	6,032	BASF SE	$	562,469
	21,823	E.I. du Pont de Nemours & Co.		1,601,808
	11,250	Evonik Industries AG		334,919
	20,000	Formosa Chemicals & Fibre Corp.		59,545
	22,000	Formosa Plastics Corp.		60,712
	16,200	Hitachi Chemical Co., Ltd.		404,310
	342	LG Chem, Ltd.		73,758
	28,000	Nan Ya Plastics Corp.		61,699
	8,400	Nitto Denko Corp.		643,262
	47,800	PTT Global Chemical Public Co., Ltd.		83,768
	772	Sherwin Williams Co.		207,467
	19,700	Shin-Etsu Chemical Co., Ltd.		1,518,486
	54,000	Toray Industries, Inc.		436,510
	150,000	Ube Industries, Ltd.		313,718
	5,429	Umicore SA		308,969

				10,603,182

	Commercial Services & Supplies (0.0%):
	1,700	SECOM Co., Ltd.		124,074

	Communications Equipment (0.3%):
	1,583	Cisco Systems, Inc.		47,838
	31,923	CommScope Holding Co., Inc.*		1,187,536
	210,228	Nokia OYJ		1,010,887

				2,246,261

	Construction & Engineering (0.2%):
	12,000	Chiyoda Corp.		82,959
	4,700	ComSys Holdings Corp.		85,968
	11,100	JGC Corp.		201,021
	10,800	Kinden Corp.		134,331
	3,000	Maeda Road Construction Co., Ltd.		50,106
	4,000	Nippo Corp.		74,562
	42,000	Okumura Corp.		235,965
	1,000	Sho-Bond Holdings Co., Ltd.^		41,572
	44,000	Toda Corp.		231,796
	7,084	Vinci SA		481,778

				1,620,058

	Construction Materials (0.0%):
	12,200	The Siam Cement Public Co., Ltd.		168,719

	Consumer Finance (0.1%):
	997	Capital One Financial Corp.		86,978
	10,825	Discover Financial Services		780,375

				867,353

	Containers & Packaging (0.1%):
	1,028	Crown Holdings, Inc.*		54,042
	1,425	International Paper Co.		75,611
	893	Packaging Corp. of America		75,744
	12,496	WestRock Co.		634,422

				839,819

	Distributors (0.0%):
	3,700	Canon Marketing Japan, Inc.		62,146


Shares			Fair Value
	Common Stocks, continued
	Diversified Consumer Services (0.0%):
	15,078	H&R Block, Inc.^	$	346,643

	Diversified Financial Services (0.4%):
	6	Berkshire Hathaway, Inc., Class A*		1,464,726
	9,090	Berkshire Hathaway, Inc., Class B*		1,481,488
	65,000	Fubon Financial Holdings Co., Ltd.		102,989
	2,400	Zenkoku Hosho Co., Ltd.		77,025

				3,126,228

	Diversified Telecommunication Services (0.5%):
	42,356	Cellnex Telecom SAU		608,224
	31,000	Chunghwa Telecom Co., Ltd.		97,812
	54,167	Deutsche Telekom AG, Registered Shares		930,435
	13,794	El Towers SpA*		743,086
	58,000	HKT Trust & HKT, Ltd.		70,987
	13,000	Nippon Telegraph & Telephone Corp.		546,535
	37,600	Singapore Telecommunications, Ltd.		94,384
	1,134,637	Telecom Italia SpA*		998,874
	32,883	Telecom Italia SpA		23,763
	3,876	Verizon Communications, Inc.		206,901

				4,321,001

	Electric Utilities (0.3%):
	4,352	CEZ		72,863
	9,000	Cheung Kong Infrastructure Holdings, Ltd.		71,585
	17,700	Chubu Electric Power Co., Inc.		246,940
	10,500	CLP Holdings, Ltd.		95,947
	145,084	Enel SpA		638,368
	8,500	Hongkong Electric Holdings, Ltd.		74,888
	14,009	NextEra Energy, Inc.		1,673,515
	4,133	Vistra Energy Corp.^		64,062

				2,938,168

	Electrical Equipment (0.2%):
	42,000	GS Yuasa Corp.		174,297
	2,300	Mabuchi Motor Co., Ltd.		119,458
	89,100	Mitsubishi Electric Corp.		1,238,792
	364	Rockwell Automation, Inc.		48,922

				1,581,469

	Electronic Equipment, Instruments & Components (0.3%):
	36,188	Fitbit, Inc., Class A*^		264,896
	800	Hirose Electric Co., Ltd.		98,942
	43,400	Hon Hai Precision Industry Co., Ltd.		112,442
	500	Keyence Corp.		342,633
	3,800	Kyocera Corp.		188,501
	6,900	Murata Manufacturing Co., Ltd.		918,971
	29,763	VeriFone Systems, Inc.*^		527,698

				2,454,083

	Energy Equipment & Services (0.1%):
	788	Helmerich & Payne, Inc.		60,991
	7,741	Schlumberger, Ltd.^		649,857

				710,848


Shares			Fair Value
	Common Stocks, continued
	Equity Real Estate Investment Trusts (0.4%):
	1,288	American Tower Corp.	$	136,116
	7,206	Crown Castle International Corp.		625,265
	189,350	Fibra UNO Amdinistracion SA		289,486
	8,000	Link REIT (The)		51,663
	7,207	Simon Property Group, Inc.		1,280,467
	1,766	Unibail-Rodamco SE		420,916

				2,803,913

	Food & Staples Retailing (0.3%):
	7,003	CVS Health Corp.		552,607
	15,000	Seven & I Holdings Co., Ltd.		570,916
	6,104	Walgreens Boots Alliance, Inc.		505,167
	28,136	Whole Foods Market, Inc.^		865,463

				2,494,153

	Food Products (0.5%):
	37,500	Ajinomoto Co., Inc.		754,306
	25,960	Danone SA		1,642,910
	5,590	Mead Johnson Nutrition Co.		395,549
	3,116	Mondelez International, Inc., Class A		138,132
	33,335	Nestle SA, Registered Shares		2,391,694
	690	Tyson Foods, Inc., Class A		42,559
	44,000	Uni-President Enterprises Corp.		72,646
	89,000	Want Want China Holdings, Ltd.^		56,881

				5,494,677

	Gas Utilities (0.1%):
	13,556	Gas Natural SDG SA		255,338
	2,641	Italgas SpA*		10,390
	176,000	Tokyo Gas Co., Ltd.		794,605

				1,060,333

	Health Care Equipment & Supplies (0.4%):
	14,560	Baxter International, Inc.		645,590
	27,800	HOYA Corp.		1,165,297
	2,377	Medtronic plc		169,314
	403	Stryker Corp.^		48,283
	12,768	Zimmer Holdings, Inc.		1,317,658

				3,346,142

	Health Care Providers & Services (0.9%):
	13,395	Aetna, Inc.		1,661,113
	4,600	Alfresa Holdings Corp.		75,848
	8,497	Anthem, Inc.		1,221,613
	33,609	Brookdale Senior Living, Inc.*^		417,424
	1,042	Cardinal Health, Inc.		74,993
	8,059	Centene Corp.*		455,414
	11,606	HCA Holdings, Inc.*		859,076
	330	McKesson Corp.		46,349
	5,300	Medipal Holdings Corp.		83,221
	39,182	NMC Health plc		743,920
	482,998	PT Siloam International Hospital Tbk*		390,772
	103,489	Spire Healthcare Group plc		429,803
	2,200	Suzuken Co., Ltd.		71,770
	35,378	Tenet Healthcare Corp.*		525,010


Shares			Fair Value
	Common Stocks, continued
	Health Care Providers & Services, continued
	449	UnitedHealth Group, Inc.	$	71,858

				7,128,184

	Hotels, Restaurants & Leisure (0.3%):
	12,770	Accor SA		476,011
	2,997	Chipotle Mexican Grill, Inc.*^		1,130,828
	665	McDonald’s Corp.		80,944
	6,452	Norwegian Cruise Line Holdings, Ltd.*^		274,404
	8,397	Starbucks Corp.		466,201
	877	Wyndham Worldwide Corp.		66,976

				2,495,364

	Household Durables (0.1%):
	3,000	Alpine Electronics, Inc.		38,875
	11,726	Berkeley Group Holdings plc (The)		405,252
	1,262	Coway Co., Ltd.		92,187
	2,639	Mohawk Industries, Inc.*		526,956
	2,700	Rinnai Corp.		217,528

				1,280,798

	Household Products (0.1%):
	1,859	Colgate-Palmolive Co.		121,653
	5,377	Kimberly-Clark Corp.		613,624

				735,277

	Independent Power & Renewable Electricity Producers (0.0%):
	13,439	NextEra Energy Partners LP		343,232

	Industrial Conglomerates (0.5%):
	308	3M Co., Class C		55,000
	8,500	CK Hutchison Holdings, Ltd.		95,962
	1,300	Jardine Matheson Holdings, Ltd.		71,712
	36,543	Koninklijke Philips Electronics NV		1,113,707
	6,778	Roper Industries, Inc.^		1,240,916
	4,446	Siemens AG, Registered Shares		546,432
	24,066	Smiths Group plc		417,987

				3,541,716

	Insurance (1.0%):
	75,000	AIA Group, Ltd.		419,742
	12,790	Allstate Corp. (The)		947,994
	615	American International Group, Inc.		40,166
	23,743	AXA SA		599,042
	1,057	Axis Capital Holdings, Ltd.		68,990
	65,289	Cathay Financial Holding Co., Ltd.		97,773
	6,959	Chubb, Ltd.		919,423
	742	Fairfax Financial Holdings, Ltd.		358,426
	2,372	Hartford Financial Services Group, Inc. (The)		113,026
	11,704	Marsh & McLennan Cos., Inc.		791,073
	13,950	MetLife, Inc.		751,766
	10,700	MS&AD Insurance Group Holdings, Inc.		330,636
	21,600	NKSJ Holdings, Inc.		729,464
	719	Prudential Financial, Inc.		74,819
	612	Reinsurance Group of America, Inc.		77,008
	20,900	Sony Financial Holdings, Inc.		323,990


Shares			Fair Value
	Common Stocks, continued
	Insurance, continued
	20,400	Tokio Marine Holdings, Inc.	$	834,273
	1,235	Travelers Cos., Inc. (The)		151,189
	9,783	UnumProvident Corp.		429,767

				8,058,567

	Internet & Direct Marketing Retail (0.4%):
	4,020	Amazon.com, Inc.*		3,014,477
	4,221	Expedia, Inc.		478,155

				3,492,632

	Internet Software & Services (1.2%):
	13,587	Alibaba Group Holding, Ltd., ADR*^		1,193,074
	5,373	Alphabet, Inc., Class C*		4,146,989
	95,700	Dropbox, Inc.*(a)(b)		1,042,173
	27,248	Facebook, Inc., Class A*		3,134,882
	5,547	Lookout, Inc.*(a)(b)		30,786
	982	VeriSign, Inc.*^		74,701

				9,622,605

	IT Services (0.5%):
	905	Accenture plc, Class C		106,003
	246	Alliance Data Systems Corp.		56,211
	1,418	Amdocs, Ltd.		82,599
	11,975	Cognizant Technology Solutions Corp., Class A*		670,959
	1,326	Computer Sciences Corp.		78,791
	7,572	Global Payments, Inc.		525,573
	37,607	Infosys, Ltd.		559,201
	6,707	MasterCard, Inc., Class A		692,498
	21,172	Sabre Corp.^		528,241
	29,557	Square, Inc., Class A*^		402,862
	7,868	Visa, Inc., Class A		613,861

				4,316,799

	Leisure Products (0.0%):
	3,100	Yamaha Corp.		94,488

	Life Sciences Tools & Services (0.0%):
	11,156	Patheon NV*^		320,289
	904	Thermo Fisher Scientific, Inc.		127,554

				447,843

	Machinery (0.6%):
	21,659	Doosan Bobcat, Inc.*		642,991
	11,408	GEA Group AG		457,205
	104,090	Haitian International Holdings, Ltd.		202,911
	8,100	Hino Motors, Ltd.		82,209
	417	Illinois Tool Works, Inc.		51,065
	26,300	Komatsu, Ltd.		593,698
	30,800	Kubota Corp.		438,517
	3,300	Kurita Water Industries, Ltd.		72,501
	1,300	Makita Corp.		86,975
	3,400	Nabtesco Corp.		78,943
	82,098	SKF AB, Class B		1,507,613
	444	WABCO Holdings, Inc.*		47,131

				4,261,759


Shares			Fair Value
	Common Stocks, continued
	Media (0.9%):
	2,542	Charter Communications, Inc., Class A*	$	731,893
	28,344	Comcast Corp., Class A		1,957,152
	615,711	Delta Topco, Ltd.*(a)(b)		30,786
	10,520	DISH Network Corp., Class A*		609,424
	2,903	Liberty Broadband Corp., Class A*		210,351
	5,632	Liberty Broadband Corp., Class C*^		417,162
	9,071	Liberty Global plc, Class A*		277,482
	10,623	Liberty SiriusXM Group, Class A*		366,706
	19,918	Liberty SiriusXM Group, Class C*		675,619
	5,500	Nippon Television Holdings, Inc.		99,703
	432	Omnicom Group, Inc.^		36,768
	41,172	Pearson plc		413,119
	8,173	Publicis Groupe SA		563,738
	68,858	RAI Way SpA^		259,449
	561	Scripps Networks Interactive, Class C^		40,039
	8,600	SKY Perfect JSAT Holdings, Inc.		39,520
	3,500	Toho Co., Ltd.		98,926
	3,100	TV Asahi Holdings Corp.		61,116
	37,820	Zon Multimedia Servicos de Telecommunicacoes e Multimedia SGPS SA		224,374

				7,113,327

	Metals & Mining (0.0%):
	17,183	Platinum Group Metals, Ltd.*		24,831
	81,742	Platinum Group Metals, Ltd.*		116,891
	462	POSCO		97,677
	5,800	Tokyo Steel Manufacturing Co., Ltd.		44,426
	2,300	Yamato Kogyo Co., Ltd.		63,799

				347,624

	Multiline Retail (0.1%):
	10,918	Target Corp.		788,607

	Multi-Utilities (0.2%):
	35,663	Innogy Se*		1,239,787
	4,211	National Grid plc		49,241
	7,685	Sempra Energy		773,418

				2,062,446

	Oil, Gas & Consumable Fuels (2.4%):
	34,884	Anadarko Petroleum Corp.		2,432,461
	38,452	BP plc, ADR		1,437,335
	19,672	BP plc		122,212
	19,757	Cenovus Energy, Inc.		298,746
	284	Chevron Corp.		33,427
	94,227	Coal India, Ltd.		415,935
	101,639	EnCana Corp.^		1,193,242
	7,645	EQT Corp.		499,983
	16,000	Formosa Petrochemical Corp.		55,385
	77,100	INPEX Corp.		769,840
	73,962	Marathon Oil Corp.		1,280,282
	68,545	Marathon Petroleum Corp.		3,451,241
	32,131	Oil & Natural Gas Corp., Ltd.		90,520
	778	Phillips 66		67,227


Shares			Fair Value
	Common Stocks, continued
	Oil, Gas & Consumable Fuels, continued
	98,439	Reliance Industries, Ltd.	$	1,567,944
	37,124	Royal Dutch Shell plc, ADR		2,018,802
	11,288	Royal Dutch Shell plc, Class A		306,785
	14,022	Snam SpA		57,669
	27,800	Thai Oil Public Co., Ltd.		55,953
	862	Total SA, ADR		43,936
	18,499	Total SA		944,196
	1,620	Valero Energy Corp.		110,678
	23,284	Williams Cos., Inc. (The)		725,064

				17,978,863

	Personal Products (0.4%):
	19,489	Edgewell Personal Care Co.*^		1,422,502
	42,167	Unilever NV		1,732,797

				3,155,299

	Pharmaceuticals (1.4%):
	5,500	Astellas Pharma, Inc.		76,246
	20,930	AstraZeneca plc		1,134,914
	4,909	Bayer AG, Registered Shares		512,062
	16,132	Catalent, Inc.*		434,919
	30,058	GlaxoSmithKline plc		573,927
	11,716	Johnson & Johnson Co.		1,349,800
	8,433	Merck & Co., Inc.		496,451
	22,669	Mylan NV*		864,822
	6,357	Novartis AG, Registered Shares		462,536
	3,100	Otsuka Holdings Co., Ltd.		134,896
	14,609	Perrigo Co. plc^		1,215,907
	71,983	Pfizer, Inc.		2,338,008
	12,350	Sanofi-Aventis SA		998,673
	1,500	Sawai Pharmaceutical Co., Ltd.		80,423

				10,673,584

	Professional Services (0.1%):
	9,235	Randstad Holding NV		500,119

	Real Estate Management & Development (0.9%):
	505,700	CapitaLand, Ltd.		1,050,698
	630,200	Global Logistic Properties, Ltd.		954,936
	20,000	Hang Lung Properties, Ltd.		41,879
	68,000	Mitsubishi Estate Co., Ltd.		1,348,111
	38,000	Sino Land Co., Ltd.		56,250
	72,666	Sun Hung Kai Properties, Ltd.		909,834
	6,500	Swire Pacific, Ltd., Class A		62,051
	49,034	The St. Joe Co.*^		931,646
	14,940	Vonovia SE		486,582
	13,000	Wharf Holdings, Ltd. (The)		85,435

				5,927,422

	Road & Rail (0.4%):
	39,900	ComfortDelGro Corp., Ltd.		67,795
	16,600	East Japan Railway Co.		1,432,138
	12,738	Kansas City Southern		1,080,819
	10,200	Kyushu Railway Co.*		266,385
	5,700	Seino Holdings Co., Ltd.		63,172


Shares			Fair Value
	Common Stocks, continued
	Road & Rail, continued
	7,000	West Japan Railway Co.	$	429,011

				3,339,320

	Semiconductors & Semiconductor Equipment (0.2%):
	1,835	Intel Corp.		66,555
	734	KLA-Tencor Corp.		57,751
	15,183	QUALCOMM, Inc.		989,932
	10,000	ROHM Co., Ltd.		573,963
	11,094	SK Hynix, Inc.		405,589
	27,800	SUMCO Corp.		357,209

				2,450,999

	Software (0.9%):
	685	Adobe Systems, Inc.*		70,521
	7,228	Electronic Arts, Inc.*		569,277
	5,202	Intuit, Inc.		596,201
	2,297	Microsoft Corp.		142,736
	3,000	Nintendo Co., Ltd.		627,217
	37,810	Nuance Communications, Inc.*		563,369
	4,400	Trend Micro, Inc.		156,061
	68,532	Uber Technologies, Inc.*(a)(b)		3,386,166
	12,536	UbiSoft Entertainment SA*		445,899
	6,208	VMware, Inc., Class A*^		488,756

				7,046,203

	Specialty Retail (0.6%):
	12,924	Bed Bath & Beyond, Inc.^		525,231
	626	Dick’s Sporting Goods, Inc.		33,241
	4,788	Home Depot, Inc. (The)		641,975
	23,537	Lowe’s Cos., Inc.		1,673,951
	1,100	Shimamura Co., Ltd.		137,254
	5,288	Tiffany & Co.^		409,450
	13,008	Williams-Sonoma, Inc.^		629,457
	65,200	Yamada Denki Co., Ltd.		350,727

				4,401,286

	Technology Hardware, Storage & Peripherals (1.0%):
	58,767	Apple, Inc.(c)		6,806,394
	3,000	Fujifilm Holdings Corp.		113,684
	130,000	NEC Corp.		343,476
	36,155	Pure Storage, Inc., Class A*^		408,913
	1,580	Western Digital Corp.		107,361

				7,779,828

	Textiles, Apparel & Luxury Goods (0.3%):
	4,821	Compagnie Financiere Richemont SA		319,301
	5,565	Hugo Boss AG		343,333
	11,588	Luxottica Group SpA		624,075
	3,259	LVMH Moet Hennessy Louis Vuitton SA		621,328
	16,220	Michael Kors Holdings, Ltd.*^		697,136
	406	PVH Corp.		36,637
	3,093	Ralph Lauren Corp.^		279,360

				2,921,170


Shares			Fair Value
	Common Stocks, continued
	Tobacco (0.0%):
	1,451	Altria Group, Inc.	$	98,117
	3,300	Japan Tobacco, Inc.		108,430
	963	KT&G Corp.		80,505

				287,052

	Trading Companies & Distributors (0.0%):
	6,751	HD Supply Holdings, Inc.*		286,985
	574	United Rentals, Inc.*		60,603

				347,588

	Transportation Infrastructure (0.0%):
	8,000	Kamigumi Co., Ltd.		76,127

	Wireless Telecommunication Services (0.5%):
	23,500	Advanced Information Service plc		96,192
	1,777	China Mobile, Ltd., ADR		93,168
	40,000	Far EasTone Telecommunications Co., Ltd.		89,931
	52,700	Intouch Holdings Public Co., Ltd.		73,150
	13,900	KDDI Corp.		350,991
	10,200	NTT DoCoMo, Inc.		231,985
	405	SK Telecom Co., Ltd.		75,361
	33,000	Taiwan Mobile Co., Ltd.		106,386
	22,277	Vodafone Group plc, ADR		544,227
	595,287	Vodafone Group plc		1,463,851

				3,125,242

	Total Common Stocks (Cost $198,175,651)			222,952,452

	Preferred Stocks (0.9%):
	Automobiles (0.1%):
	3,540	Volkswagen AG, 0.13%		495,891

	Banks (0.1%):
	12,428	Citigroup Capital XIII, Series A, 7.41%^		320,892
	2,611	U.S. Bancorp, Series G, 6.00%		65,823
	7,094	U.S. Bancorp, Series F, 6.50%		200,689
	84,000	USB Capital IX, 3.50%		68,985

				656,389

	Commercial Services & Supplies (0.0%):
	3,136	Stericycle, Inc., 5.25%^		198,415

	Consumer Finance (0.1%):
	16,911	GMAC Capital Trust I, Series 2, 6.85%		429,539

	Equity Real Estate Investment Trusts (0.1%):
	1,639	American Tower Corp., Series A, 5.25%		171,685
	6,282	Welltower, Inc., Series I, 6.50%		378,051

				549,736

	Health Care Providers & Services (0.1%):
	19,771	Anthem, Inc., 5.25%		929,829
	143,925	Grand Rounds, Inc., Series C*(a)(b)		395,794

				1,325,623

	Internet Software & Services (0.1%):
	63,925	Lookout, Inc., Series F*(a)(b)		613,680

	Multi-Utilities (0.1%):
	13,401	Dominion Resources, Inc., 6.75%		678,091


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Preferred Stocks, continued
	Pharmaceuticals (0.2%):
	867	Allergan plc, Series A, 5.50%	$	661,053
	1,410	Teva Pharmaceutical Industries, Ltd., 7.00%		909,450

				1,570,503

	Software (0.0%):
	116,157	Palantir Technologies, Inc., Series I*(a)(b)		939,710

	Total Preferred Stocks (Cost $7,793,069)			7,457,577

	Warrant (0.0%):
	Paper & Forest Products (0.0%):
	157,250	TFS Corp., Ltd.		50,365

	Total Warrant (Cost $–)			50,365

	Convertible Preferred Stocks (0.2%):
	Banks (0.0%):
	131	Wells Fargo & Co., Series L, Class A, 7.50%		155,890

	Internet Software & Services (0.2%):
	144,482	Domo, Inc., Series E*(a)(b)		1,174,638

	Total Convertible Preferred Stocks (Cost $1,361,004)			1,330,528

	Right (0.0%):
	Oil, Gas & Consumable Fuels (0.0%):
	9,579	TOTAL SA, Expires on 1/05/17(b)^		6,150

	Total Right (Cost $6,080)			6,150

	Private Placements (0.0%):
	Household Durables (0.0%):
$	3,065,000	AliphCom, Inc., 0.00%, 4/1/20(a)(b)(d)		138,231

	Oil, Gas & Consumable Fuels (0.0%):
	268,000	Project Samson BND Corp., 0.00%, 4/1/20(a)(b)(d)		12,087

	Total Private Placements (Cost $3,333,000)			150,318

	Convertible Bonds (0.5%):
	Diversified Telecommunication Services (0.1%):
	300,000	Telefonica SA, Series TIT, 6.00%, 7/24/17+(e)		297,752
	500,000	Telefonica SA, Series TEF, 4.90%, 9/25/17+		461,521

				759,273

	Electrical Equipment (0.1%):
	478,000	Suzlon Energy, Ltd., Series SUEL, 5.75%, 7/16/19(d)(e)		475,610

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

	Multi-Utilities (0.0%):
	3,561	Dominion Resources, Inc., 6.38%, 7/1/17		178,264

	Oil, Gas & Consumable Fuels (0.1%):
	486,000	Cobalt International Energy, Inc., 2.63%, 12/1/19		190,755
	596,000	Cobalt International Energy, Inc., 3.13%, 5/15/24		166,880
	631,620	Dana Gas Sukuk, Ltd., 7.00%, 10/31/17(e)		566,879

				924,514

	Pharmaceuticals (0.1%):
	800,000	Bayer Capital Corp. BV, 5.63%, 11/22/19+(e)		918,621

	Real Estate Management & Development (0.0%):
	250,000	CapitaLand, Ltd., 1.95%, 10/17/23+(e)		170,776


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Convertible Bonds, continued
	Semiconductors & Semiconductor Equipment (0.0%):
$	113,000	Intel Corp., 3.25%, 8/1/39	$	199,233

	Wireless Telecommunication Services (0.1%):
	6,388	Mandatory Exchange Trust, 5.75%, 6/1/19(e)		697,888

	Total Convertible Bonds (Cost $5,651,750)			4,326,179

	Bank Loans (0.6%):
	Capital Markets (0.2%):
	857,857	Promontoria Blue Holding 2 BV, 7.00%, 4/15/20(b)(d)(g)		902,894
	102,751	Sheridan Production Partners, 4.50%, 12/16/20(d)(g)		82,029
	38,331	Sheridan Production Partners, 4.50%, 12/16/20(d)(g)		30,601
	738,483	Sheridan Production Partners, 4.50%, 12/16/20(d)(g)		589,554

				1,605,078

	Energy Equipment & Services (0.1%):
	369,419	Drillships Financing Holdings, Inc., 6.00%, 3/31/21(d)		237,906
	1,273,508	Seadrill, Ltd., 4.00%, 2/21/21(d)		867,258

				1,105,164

	Hotels, Restaurants & Leisure (0.1%):
	513,713	Hilton Worldwide Finance LLC, 3.50%, 10/26/20(d)		529,459

	Marine (0.1%):
	469,620	Drillships Ocean Ventures, Inc., 5.50%, 7/25/21(d)		369,140

	Media (0.1%):
	430,160	Univision Communications, Inc., 4.00%, 3/1/20(d)		432,311

	Metals & Mining (0.0%):
	166,625	Novelis, Inc., 4.25%, 6/2/22(d)		167,510

	Oil, Gas & Consumable Fuels (0.1%):
	405,533	Fieldwood Energy LLC, 8.38%, 9/20/20(d)		283,873
	111,961	Fieldwood Holdings LLC, 8.00%, 8/31/20(d)		105,803

				389,676

	Trading Companies & Distributors (0.0%):
	279,150	Univar USA, Inc., 4.25%, 7/1/22(d)		281,534

	Total Bank Loans (Cost $5,785,124)			4,879,872

	Collateralized Mortgage Obligations (0.0%):
	459,000	Logistics UK, Class F, Series 2015-1A, 0.66%, 8/20/25(a)(b)(d)		543,067

	Total Collateralized Mortgage Obligations (Cost $689,595)			543,067

	Corporate Bonds (1.5%):
	Banks (0.4%):
	168,000	Bank of America Corp., 2.00%, 1/11/18, MTN		168,387
	163,000	Bank of America Corp., 2.60%, 1/15/19		164,393
	473,000	Citigroup, Inc., 1.80%, 2/5/18		472,735
	389,000	Citigroup, Inc., Series O, 5.87%, 12/29/49, Callable 3/27/20 @ 100^(d)		392,890


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Banks, continued
$	451,000	JPMorgan Chase & Co., 2.30%, 8/15/21, Callable 8/15/20 @ 100	$	442,645
	137,000	JPMorgan Chase & Co., 4.35%, 8/15/21		146,562
	386,000	JPMorgan Chase & Co., 1.94%, 1/15/23, Callable 1/15/22 @ 100(d)		387,377
	162,000	Merrill Lynch & Co., 6.88%, 4/25/18, MTN		172,191

				2,347,180

	Biotechnology (0.1%):
	353,000	AbbVie, Inc., 2.50%, 5/14/20, Callable 4/14/20 @ 100		353,092
	286,000	AbbVie, Inc., 2.30%, 5/14/21, Callable 4/14/21 @ 100		280,219

				633,311

	Capital Markets (0.1%):
	321,000	Goldman Sachs Group, Inc. (The), Series L, 5.70%, 12/29/49, Callable 5/10/19 @ 100^(d)		328,961
	337,000	Goldman Sachs Group, Inc. (The), Series M, 5.38%, 12/31/49, Callable 5/10/20 @ 100^(d)		340,370
	238,000	Morgan Stanley, Series H, 5.45%, 7/29/49, Callable 7/15/19 @ 100^(d)		235,620

				904,951

	Communications Equipment (0.0%):
	229,000	Cisco Systems, Inc., 2.20%, 2/28/21		228,507

	Consumer Finance (0.2%):
	292,000	Ally Financial, Inc., 2.75%, 1/30/17		292,057
	203,000	Ally Financial, Inc., 3.50%, 1/27/19		204,015
	209,000	American Express Co., Series C, 4.93%, 12/29/49, Callable 3/15/20 @ 100^(d)		198,289
	264,000	Ford Motor Credit Co. LLC, 5.00%, 5/15/18		274,357
	250,000	General Motors Financial Co., 3.50%, 7/10/19		254,564
	122,000	Hyundai Capital America, 2.00%, 3/19/18(e)		121,978
	87,000	Synchrony Financial, 3.75%, 8/15/21, Callable 6/15/21 @ 100		89,420

				1,434,680

	Diversified Financial Services (0.0%):
	231,000	Berkshire Hathaway, Inc., 2.75%, 3/15/23, Callable 1/15/23 @ 100		230,133

	Diversified Telecommunication Services (0.2%):
	412,000	AT&T, Inc., 2.38%, 11/27/18		415,600
	660,000	AT&T, Inc., 3.00%, 6/30/22, Callable 4/30/22 @ 100		647,862
	53,000	Hughes Satellite Systems Corp., 7.63%, 6/15/21^		58,168
	71,000	Verizon Communications, Inc., 1.75%, 8/15/21, Callable 7/15/21 @ 100^		68,110
	156,000	Verizon Communications, Inc., 2.63%, 8/15/26^		143,606

				1,333,346

	Equity Real Estate Investment Trusts (0.0%):
	80,000	American Tower Corp., 3.40%, 2/15/19		81,756


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Corporate Bonds, continued
	Health Care Equipment & Supplies (0.1%):
$	370,000	Medtronic, Inc., 3.15%, 3/15/22	$	378,962

	Industrial Conglomerates (0.1%):
	38,000	General Electric Capital Corp., Series A, 5.55%, 5/4/20, MTN^		41,980
	196,000	General Electric Capital Corp., 6.38%, 11/15/67, Callable 11/15/17 @ 100(d)		197,225
	332,000	General Electric Co., Series D, 5.00%, 12/29/49, Callable 1/21/21 @ 100(d)		344,516

				583,721

	Internet Software & Services (0.0%):
	163,000	eBay, Inc., 3.80%, 3/9/22, Callable 2/9/22 @ 100^		168,400

	Media (0.1%):
	114,000	Cablevision Systems Corp., 5.88%, 9/15/22		111,150
	624,776	Delta Topco, Ltd., 10.00%, 11/24/60(a)(b)		643,519
	300,000	NBCUniversal Enterprise, Inc., 5.25%, 12/31/99, Callable 3/19/21 @ 100(e)		315,000

				1,069,669

	Metals & Mining (0.0%):
	319,000	Freeport-McMoRan, Inc., 3.88%, 3/15/23, Callable 12/15/22 @ 100^		292,683

	Oil, Gas & Consumable Fuels (0.0%):
	136,000	Sabine Pass Liquefaction LLC, 5.63%, 4/15/23, Callable 1/15/23 @ 100		144,500

	Personal Products (0.0%):
	179,000	Edgewell Personal Care Co., 4.70%, 5/19/21^		188,413
	167,000	Edgewell Personal Care Co., 4.70%, 5/24/22		172,010

				360,423

	Pharmaceuticals (0.0%):
	149,000	Forest Laboratories, Inc., 5.00%, 12/15/21, Callable 9/16/21 @ 100(e)		161,096
	228,000	Mylan, Inc., 2.55%, 3/28/19^		227,511

				388,607

	Real Estate Management & Development (0.1%):
	473,000	Global Logistic Properties, Ltd., 3.88%, 6/4/25(b)(e)		459,176

	Semiconductors & Semiconductor Equipment (0.0%):
	388,000	QUALCOMM, Inc., 3.00%, 5/20/22^		393,155

	Software (0.1%):
	80,000	Activision Blizzard, 2.30%, 9/15/21, Callable 8/15/21 @ 100(e)		78,068

	511,000	Oracle Corp., 1.90%, 9/15/21, Callable 8/15/21 @ 100		499,345

				577,413

	Wireless Telecommunication Services (0.0%):
	210,000	T-Mobile USA, Inc., 6.00%, 4/15/24, Callable 4/15/19 @ 104.5		221,288

	Total Corporate Bonds (Cost $11,994,446)			12,231,861


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Foreign Bonds (7.1%):
	Banks (0.1%):
$	330,000	Lloyds TSB Bank plc, Series E, 13.00%, 1/29/49, Callable 1/21/29 @ 126+(d)	$	712,990

	Metals & Mining (0.0%):
	139,000	Constellium NV, 7.00%, 1/15/23+(e)		147,029

	Sovereign Bonds (7.0%):
	2,093,000	Australian Government, Series 124, 5.75%, 5/15/21+		1,734,336
	3,758,000	Australian Government, Series 128, 5.75%, 7/15/22+		3,191,852
	609,000	Australian Government, Series 133, 5.50%, 4/21/23+		517,693
	3,209,000	Brazil Nota do Tesouro Nacional, Series NTNF, 0.94%, 1/1/21+(h)(i)		949,944
	209,000	Brazil Nota do Tesouro Nacional, Series NTNB, 0.00%, 8/15/22+(i)		194,487
	582,959	Bundesobligation, Series 173, 0.00%, 4/9/21+		629,786
	1,804,831	Bundesrepub. Deutshland, 0.20%, 8/15/26+(e)		1,864,244
	1,155,000	Canada Housing Trust, 1.25%, 6/15/21+(e)		852,850
	1,774,000	Canadian Government, 0.25%, 5/1/18+		1,313,844
	4,518,000	Canadian Government, 0.50%, 8/1/18+		3,353,584
	1,126,000	Canadian Government, 0.75%, 3/1/21+		827,755
	128,000	Federative Republic of Brazil, 2.88%, 4/1/21+		137,246
	79,850,000	Government of Japan, Series 350, 0.10%, 3/15/17+		683,822
	1,789,000	Government of Poland, 5.75%, 10/25/21+		481,855
	470,000,000	Japan Treasury Discount Bill, Series 638, 0.00%, 1/16/17+(h)		4,021,987
	240,000,000	Japan Treasury Discount Bill, Series 641, 0.00%, 1/30/17+(h)		2,054,140
	490,000,000	Japan Treasury Discount Bill, Series 643, 0.00%, 2/13/17+(h)		4,194,079
	510,000,000	Japan Treasury Discount Bill, Series 647, 0.00%, 2/27/17+(h)		4,366,034
	230,000,000	Japan Treasury Discount Bill, Series 631, 0.00%, 3/10/17+(h)		1,969,072
	520,000,000	Japan Treasury Discount Bill, Series 651, 0.00%, 3/21/17+(h)		4,452,559
	520,000,000	Japan Treasury Discount Bill, Serries 650, 0.00%, 6/12/17+(h)		4,455,403
	218,500,000	Japan Treasury Discount Bill, Series 362, 0.10%, 3/15/18+		1,877,686
	273,450,000	Japan Treasury Discount Bill, Series 369, 0.10%, 10/15/18+		2,352,077
	63,750,500	Mexican Bonos Desarr, Series M, 6.50%, 6/10/21+(d)(j)		2,999,995
	2,503,000	New Zealand Government, Series 0521, 6.00%, 5/15/21+		1,973,841
	2,485,000	Nota Do Tesouro Nacional, Series NTNF, 1.23%, 1/1/18+(i)		754,504
	2,118,000	Poland Government Bond, Series 1020, 5.25%, 10/25/20+		553,149


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Foreign Bonds, continued
	Sovereign Bonds, continued
$	4,046,000	Poland Government Bond, Series 0725, 3.25%, 7/25/25+	$	949,335
	4,234,000	Poland Government Bond, Series 0726, 2.50%, 7/25/26+		919,709
	100,000	Republic of Argentina, 3.88%, 1/15/22+(e)		100,724
	488,000	Republic of Indonesia, 2.63%, 6/14/23+(e)		515,945
	1,520,000	Romania Government Bond, 4.75%, 2/24/25+		382,455
	1,113,373	United Kingdom Treasury, 2.00%, 9/7/25+		1,474,236

				57,100,228

	Total Foreign Bonds (Cost $62,205,898)			57,960,247

	Yankee Dollars (1.4%):
	Banks (0.3%):
	494,000	BNP Paribas SA, 2.40%, 12/12/18		497,879
	273,000	Export-Import Bank of Korea, 2.63%, 12/30/20		272,490
	614,000	HSBC Holdings plc, 6.38%, 12/29/49, Callable 9/17/24 @ 100(d)		604,023
	403,000	Intesa Sanpaolo SpA, 3.88%, 1/15/19		410,221

				1,784,613

	Capital Markets (0.0%):
	207,000	UBS Group AG, 4.13%, 9/24/25(e)		210,988

	Diversified Telecommunication Services (0.1%):
	272,000	Intelsat Jackson Holdings SA, 7.50%, 4/1/21, Callable 2/6/17 @ 103.75^		207,399
	89,000	Intelsat Jackson Holdings SA, 8.00%, 2/15/24, Callable 2/15/19 @ 104^(e)		91,448
	289,000	Telecom Italia SpA, 5.30%, 5/30/24^(e)		282,498

				581,345

	Industrial Conglomerates (0.0%):
	200,000	Odebrecht Finance, Ltd., 4.38%, 4/25/25(e)		115,500

	Internet Software & Services (0.1%):
	314,000	Alibaba Group Holding, Ltd., 3.13%, 11/28/21, Callable 9/28/21 @ 100		313,779

	Oil, Gas & Consumable Fuels (0.2%):
	355,000	Petroleos Mexicanos, 4.61%, 3/11/22^(d)(e)		366,094
	368,000	Petroleos Mexicanos, 4.63%, 9/21/23(e)		357,990
	753,000	YPF SA, 8.50%, 7/28/25^(e)		763,542

				1,487,626

	Paper & Forest Products (0.1%):
	1,018,000	TFS Corp., Ltd., 8.75%, 8/1/23, Callable 8/1/19 @ 106.56(e)		1,079,080

	Pharmaceuticals (0.0%):
	287,000	Actavis Funding SCS, 3.00%, 3/12/20, Callable 2/12/20 @ 100		290,979

	Real Estate Management & Development (0.0%):
	167,500	IRSA Propiedades Comerciales SA, 8.75%, 3/23/23, Callable 3/23/20 @ 104.38(e)		177,341

	Road & Rail (0.0%):
	527,380	Inversiones Alsacia SA, 8.00%, 12/31/18, Callable 1/23/17 @ 100		27,687


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
	Yankee Dollars, continued
	Sovereign Bonds (0.7%):
$	234,000	Federal Republic of Brazil, 4.88%, 1/22/21	$	241,020
	257,000	Federal Republic of Brazil, 2.63%, 1/5/23		228,730
	736,000	Republic of Argentina, 6.88%, 4/22/21^(e)		783,840
	630,000	Republic of Argentina, 7.50%, 4/22/26(e)		661,500
	631,000	Republic of Argentina, 7.13%, 7/6/36^(e)		600,239
	338,000	Republic of Hungary, 6.25%, 1/29/20		369,688
	934,000	Republic of Hungary, 6.38%, 3/29/21		1,045,856
	233,000	Republic of Indonesia, 6.88%, 1/17/18(e)		245,078
	200,000	Republic of Indonesia, 3.70%, 1/8/22(e)		200,449
	154,000	Republic of Poland, 5.00%, 3/23/22		167,760
	309,000	Republic of Turkey, 6.75%, 4/3/18		322,457
	461,000	Saudi International Bond, 2.38%, 10/26/21(e)		447,602

				5,314,219

	Total Yankee Dollars (Cost $11,858,838)			11,383,157

	U.S. Government Agency Mortgages (0.3%):
	Federal National Mortgage Association (0.3%)
	2,574,283	3.00%, 1/25/46		2,557,328

	Total U.S. Government Agency Mortgages (Cost $2,563,021)			2,557,328

	U.S. Treasury Obligations (7.3%):
	U.S. Treasury Bills (4.1%)
	7,000,000	0.35%, 1/19/17(h)		6,998,712
	4,000,000	0.37%, 1/26/17(h)		3,998,924
	4,000,000	0.38%, 2/2/17(h)		3,998,592
	9,000,000	0.41%, 2/9/17(h)		8,995,861
	6,000,000	0.46%, 3/9/17(h)		5,994,804
	4,000,000	0.48%, 3/23/17(h)		3,995,612

				33,982,505

	U.S. Treasury Inflation Index Notes (1.4%)
	3,623,800	0.13%, 4/15/21		3,717,138
	3,584,200	0.63%, 1/15/26		3,678,332
	3,622,700	0.13%, 7/15/26		3,532,791

				10,928,261

	U.S. Treasury Notes (2.1%)
	1,140,500	0.88%, 1/31/17(k)		1,140,954
	946,500	1.13%, 7/31/21		914,926
	16,379,900	1.25%, 10/31/21		15,883,393

				17,939,273

	Total U.S. Treasury Obligations (Cost $63,664,590)			62,850,039

	Purchased Swaptions (0.0%):
	Total Purchased Swaptions (Cost $165,464)			405,711

	Purchased Options (0.6%):
	Total Purchased Options (Cost $1,793,484)			4,651,266

	Exchange Traded Funds (1.4%):
	2,334	ETFS Platinum Trust(k)		201,681
	2,764	ETFS Physical Palladium Shares(k)		180,240
	61,700	iShares Gold Trust(k)		683,636
	96,776	SPDR Gold Trust*(c)(k)		10,607,618

	Total Exchange Traded Fund (Cost $12,809,626)			11,673,175


Shares			Fair Value

	Mutual Fund (0.0%):
$	4,496	iShares Iboxx $ High Yield Corporate Bond Fund, 5.27%	$	389,129

	Total Mutual Fund (Cost $376,034)			389,129

	Securities Held as Collateral for Securities on Loan (2.2%):
	17,802,661	AZL BlackRock Global Allocation Fund Securities Lending Collateral Account(l)		17,802,661

	Total Securities Held as Collateral for Securities on Loan (Cost $17,802,661)			17,802,661

	Unaffiliated Investment Company (1.0%):
	4,125,473	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.31%(h)		4,125,473

	Total Unaffiliated Investment Company (Cost $4,125,473)			4,125,473

	Affiliated Investment Companies (44.9%):
	15,460,079	AZL Global Equity Index Fund		144,706,339
	20,681,413	AZL Enhanced Bond Index Fund		220,670,678

	Total Affiliated Investment Company (Cost $363,565,788)			365,377,017

	Total Investment Securities
	(Cost $775,719,468)(m) — 97.4%			793,103,572
	Net other assets (liabilities) — 2.6%			21,415,781

	Net Assets — 100.0%		$	814,519,353

Percentages indicated are based on net assets as of December 31, 2016.

ADR — American Depositary Receipt

MTN — Medium Term Note

SPDR — Standard & Poor’s Depository Receipts

TBA — To Be Announced Security

*	Non-income producing security.

^	This security or a partial position of this security was on loan as of December 31, 2016. The total value of securities on loan as of December 31, 2016, was $16,801,712.

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

(a)

Rule 144A, Section 4(2) or other security which is restricted to resale to institutional investors. The sub-adviser has deemed these securities to be illiquid based on procedures approved by the Board of Trustees. As of December 31, 2016, these securities represent 1.10% of the net assets of the fund.

(b)	Security was valued in good faith pursuant to procedures approved by the Board of Trustees as of December 31, 2016. The total of all such securities represent 1.27% of the net assets of the fund.

(c)	All or a portion of this security has been pledged as collateral for open derivative positions.

(d)	Variable rate security. The rate presented represents the rate in effect at December 31, 2016. The date presented represents the final maturity date.

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

(f)	Defaulted bond.

(g)	The sub-adviser has deemed these securities to be illiquid based on procedures approved by the Board of Trustees. As of December 31, 2016, these securities represent 0.20% of the net assets of the Fund.

(h)	The rate represents the effective yield at December 31, 2016.

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

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

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

(l)	Purchased with cash collateral held from securities lending. The value of the collateral could include collateral held for securities that were sold on or before December 31, 2016.

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

The following represents the concentrations by country of risk (based on the domicile of the security issuer) relative to the total fair value of investments as of December 31, 2016: (Unaudited)


Country	Percentage
Argentina		0.3	%
Australia		0.8	%
Belgium		0.2	%
Bermuda		—	%^NM
Brazil		0.4	%
Canada		1.0	%
Cayman Islands		28.1	%
Chile		—	%^NM
China		0.2	%
Czech Republic		—	%^NM
European Community		—	%^NM
Finland		0.1	%
France		1.5	%
Germany		1.2	%
Guernsey		—	%^NM
Hong Kong		0.4	%
Hungary		0.2	%
India		0.5	%
Indonesia		0.3	%
Ireland (Republic of)		0.3	%
Israel		0.1	%
Italy		0.5	%


Country	Percentage
Japan		8.6	%
Jersey		0.1	%
Luxembourg		0.1	%
Mexico		0.5	%
Netherlands		1.1	%
New Zealand		0.3	%
Poland		0.4	%
Portugal		—	%^NM
Republic of Korea (South)		0.3	%
Romania		—	%^NM
Saudi Arabia		0.1	%
Singapore		0.3	%
Spain		0.3	%
Sweden		0.3	%
Switzerland		0.6	%
Taiwan, Province Of China		0.1	%
Thailand		0.1	%
Turkey		—	%^NM
United Arab Emirates		0.1	%
United Kingdom		2.3	%
United States		76.3	%

		100.0	%

Cash of $41,425,327 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Over-the-counter currency options purchased as of December 31, 2016 were as follows:

Over-the-counter currency options written as of December 31, 2016 were as follows:

Over-the-counter interest rate swaptions purchased as of December 31, 2016 were as follows:

Over-the-counter interest rate swaptions written as of December 31, 2016 were as follows:

At December 31, 2016, the Fund’s open forward currency contracts were as follows:

At December 31, 2016, the Fund’s open forward cross currency contracts were as follows:

At December 31, 2016, the Fund’s open centrally cleared credit default swap agreements were as follows:

At December 31, 2016, the Fund’s open over-the-counter currency swap agreements were as follows:

At December 31, 2016, the Fund’s open centrally cleared interest rate swap agreements were as follows:

Consolidated Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in non-affiliates, at cost	$	412,153,680
Investments in affiliates, at cost		363,565,789

Total Investment securities, at cost	$	775,719,469

Investments in non-affiliates, at value*	$	427,726,555
Investments in affiliates, at value		365,377,017

Total Investment securities, at value	$	793,103,572

Cash		2,289
Segregated cash for collateral		41,852,212
Deposits with brokers for securities sold short		3,342,801
Interest and dividends receivable		1,225,766
Foreign currency, at value (cost $120,678)		121,616
Unrealized appreciation on forward currency contracts		4,171,455
Unrealized appreciation on swap agreements		620,642
Receivable for variation margin on swap agreements		18,435
Receivable for investments sold		3,820,434
Receivable for variation margin on futures contracts		78,277
Reclaims receivable		158,869
Prepaid expenses		121,751

Total Assets		848,638,119

Liabilities:
Cash received as collateral for derivatives		3,991,000
Written options (Premiums received $902,304)		1,203,950
Unrealized depreciation on swap agreements		22,493
Unrealized depreciation on forward currency contracts		1,628,742
Payable for investments purchased		3,610,550
Payable for collateral received on loaned securities		17,802,661
Payable for capital shares redeemed		1,746,275
Securities sold short (Proceeds received $3,292,769)		3,407,576
Payable for variation margin on futures contracts		18,304
Payable for variation margin on swap agreements		28,189
Interest payable on securities sold short		1,866
Manager fees payable		327,877
Administration fees payable		18,319
Distribution fees payable		87,232
Custodian fees payable		174,781
Administrative and compliance services fees payable		3,396
Trustee fees payable		2,579
Other accrued liabilities		42,976

Total Liabilities		34,118,766

Net Assets	$	814,519,353

Net Assets Consist of:
Capital	$	777,150,367
Accumulated net investment income/(loss)		(7,218,620	)
Accumulated net realized gains/(losses) from investment transactions		25,634,553
Net unrealized appreciation/(depreciation) on investments		18,953,053

Net Assets	$	814,519,353

Shares of beneficial interest (unlimited number of shares authorized, no par value)		71,886,101
Net Asset Value (offering and redemption price per share)	$	11.33

*	Includes securities on loan of $16,801,712.

Consolidated Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends	$	10,079,815
Interest		6,308,491
Income from securities lending		265,067
Foreign withholding tax		(564,841	)

Total Investment Income		16,088,532

Expenses:
Manager fees		6,253,896
Administration fees		297,739
Distribution fees — Class 2		1,810,477
Custodian fees		362,776
Administrative and compliance services fees		25,180
Trustee fees		87,591
Professional fees		63,014
Shareholder reports		39,871
Dividends on securities sold short		55,117
Other expenses		133,666

Total expenses before reductions		9,129,327
Less expense contractually waived/reimbursed by the Manager		(3,050	)

Net expenses		9,126,277

Net Investment Income/(Loss)		6,962,255

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions		4,234,420
Net realized gains/(losses) from affiliated transactions		225,264
Net realized gains/(losses) on futures contracts		(1,681,813	)
Net realized gains/(losses) on options contracts		(4,218,481	)
Net realized gains (losses) on securities transactions held short		169,844
Net realized gains/(losses) on swap agreements		1,419,038
Net realized gains/(losses) on forward currency contracts		(4,773,939	)
Change in net unrealized appreciation/depreciation on investments		24,523,262

Net Realized/Unrealized Gains/(Losses) on Investments		19,897,595

Change in Net Assets Resulting From Operations	$	26,859,850

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services — Investment Companies.” The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP BlackRock Global Strategy Plus Fund (formerly, AZL MVP BlackRock Global Allocation Fund) (the “Fund”), and 11 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. Income received by the Fund from sources within foreign countries may be subject to withholding or similar taxes imposed by such countries. The Funds accrue such taxes, as applicable, based on their current interpretation of tax rules in the foreign markets in which they invest.

During the period ended December 31, 2016, 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, 2016, the Fund’s aggregate investment in the VIP Subsidiary was $410,101,214, representing 50.3% 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 I, 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 expense if a security that has been sold short has an interest payment. When a Fund engages in a short sale, the Fund records a liability for securities sold short and records an asset equal to the proceeds received. The amount of the liability is subsequently marked to market to reflect the market value of the securities sold short. To borrow the security, a Fund also may be required to pay a premium, which would increase the cost of the security sold.

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 differing treatment on certain investments) 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.

The Fund may invest in bank loans, which generally have interest rates which are reset periodically by reference to a base lending rate plus a premium. These base rates are primarily the London-Interbank Offered Rate and, secondarily, the prime rate offered by one or more major U. S. banks and the certificate of deposit rate or other base lending rates used by commercial lenders. Bank loans often require prepayments from excess cash flows or allow the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. Therefore, the anticipated or actual maturity may be considerably earlier than the stated maturity shown in the Portfolio of Investments.

All or a portion of any bank loans may be unfunded. The Portfolio is obligated to fund any commitments at the borrower’s discretion. Therefore, the Portfolio must have funds sufficient to cover its contractual obligation.

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, 2016 are presented on the Fund’s Consolidated Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $32.3 million for the year ended December 31, 2016.

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 $26,557 during the year ended December 31, 2016. These fees have been netted against “Income from securities lending” on the Consolidated Statement of Operations.

The Portfolio has adopted the disclosure provisions of FASB Accounting Standards Update No. 2014-11 (“ASU No. 2014-11”), “Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. ASU No. 2014-11 is intended to provide increased transparency about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of December 31, 2016.

The Fund may enter into to-be-announced (TBA) purchase or sale commitments, pursuant to which it agrees to purchase or sell, respectively, mortgage-backed securities for a fixed unit price, with payment and delivery at a scheduled future date beyond the customary settlement period for such securities. With TBA transactions, the particular securities to be delivered are not identified at the trade date; however, delivered securities must meet specified terms, including issuer, rate, and mortgage term, and be within industry-accepted “good delivery” standards. The Fund may enter into TBA purchase transactions with the intention of taking possession of the underlying securities, may elect to extend the settlement by “rolling” the transaction, and/or may use TBAs to gain interim exposure to underlying securities. Until settlement, the Fund maintains liquid assets sufficient to settle its TBA commitments.

To mitigate counterparty risk, the Fund has entered into agreements with TBA counterparties that provide for collateral and the right to offset amounts due to or from those counterparties under specified conditions. Subject to minimum transfer amounts, collateral requirements are determined and transfers made based on the net aggregate unrealized gain or loss on all TBA commitments with a particular counterparty. At any time, the Fund’s risk of loss from a particular counterparty related to its TBA commitments is the aggregate unrealized gain on appreciated TBAs in excess of unrealized loss on depreciated TBAs and collateral held, if any, by such counterparty. As of December 31, 2016, no collateral had been posted by the Fund to counterparties for TBAs.

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

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 Manager 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, the Fund engaged in such affiliated transactions at the current market price.

The Fund is permitted to purchase and sell securities (“crosstrade”) from and to other Allianz Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the “Rule”). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2016, the Fund participated in the following cross-trade transactions:

During the year ended December 31, 2016, 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 $98.8 million as of December 31, 2016. The monthly average for these contracts was $124.2 million for the year ended December 31, 2016.

During the year ended December 31, 2016, the Fund used futures contracts to gain exposure to, or economically hedge against changes in the value of equity securities. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to segregate liquid assets in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and a payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin disclosed in the Consolidated Statement of Assets and Liabilities. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in fair value of the underlying securities and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. The notional amount of futures contracts outstanding was $55.1 million as of December 31, 2016. The monthly average notional amount for these contracts was $53.1 million for the year ended December 31, 2016. 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, 2016, 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 options that expire are treated as realized losses. When an option is exercised or closed, premiums paid for purchasing 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 are reported as “Net realized gains/(losses) on options contracts” on the Consolidated Statement of Operations.

The Fund had the following transactions in purchased call and put options during the year ended December 31, 2016:

The Fund had the following transactions in written call and put options during the year ended December 31, 2016:

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 identified as collateral in accordance with the terms of the swap agreements to provide assets of value and recourse in the event of default or bankruptcy by the counterparty.

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 the 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 a 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, 2016, 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 $48.4 million as of December 31, 2016. The monthly average gross notional amount for interest rate swaps was $61.9 for the year ended December 31, 2016.

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 $4.2 million as of December 31, 2016. The monthly average gross notional amount for currency swaps was $3.6 million for the year ended December 31, 2016.

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 $3.4 million as of December 31, 2016. The monthly average gross notional amount for total return swaps was $4.5 million for the year ended December 31, 2016.

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, 2016, the Fund entered into OTC and centrally cleared credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk). The gross notional amount of OTC and centrally cleared credit default swaps outstanding was $5.7 million as of December 31, 2016. The monthly average gross notional amount for credit default swaps was $20.2 million for the year ended December 31, 2016.

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, 2016:

Asset Derivatives

Liability Derivatives

Primary Risk Exposure

Statement of Assets and Liabilities Location

Total Fair
Value

Statement of Assets and Liabilities Location

Total Fair
Value

Equity Risk Exposure

Futures Contracts

Receivable for variation margin on futures contracts*

90,487

Payable for variation margin on futures contracts*

149,920

Option Contracts

Investment securities, at value (purchased options)

4,221,522

Written options

389,270

Total Return Swap Agreements

Unrealized appreciation on swap agreements

275,998

Unrealized depreciation on swap agreements

—

Credit Risk Exposure

Credit Default Swap

Agreements

Unrealized appreciation on swap agreements*

53,622

Unrealized depreciation on swap agreements*

—

Interest Rate Risk

Interest Rate Swap Agreements

Unrealized appreciation on swap agreements*

140,538

Unrealized depreciation on swap agreements*

475,338

Swaption Contracts

Investment securities, at value (purchased options)

405,711

Written options

481,380

Foreign Exchange Risk Exposure

Currency Swap Agreements

Unrealized appreciation on swap agreements

344,644

Unrealized depreciation on swap agreements

22,493

Forward Currency Contracts

Unrealized appreciation on forward currency contracts

4,171,455

Unrealized depreciation on forward currency contracts

1,628,742

Option Contracts

Investment securities, at value (purchased options)

429,744

Written options

333,300

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, 2016:

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, 2016. 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 Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2016.

At December 31, 2016, the Fund’s derivative assets and liabilities by type were 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, 2016:

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, 2016:

The Manager provides investment advisory and management services for the Fund. The Manager has retained an independent money management organization (the “Subadviser”), to make investment decisions on behalf of the Fund. Pursuant to a subadvisory agreement with BlackRock Investment Management, LLC (“BlackRock

Investment”), BlackRock Investment provides investment advisory services as the Subadviser for the Fund subject to the general supervision of the Trustees and the Manager. The Manager is entitled to a fee, computed daily and paid monthly, based on the average daily net assets of the Fund. Expenses incurred by the Fund for investment advisory and management services are reflected on the Consolidated Statement of Operations as “Manager fees.” For its services, the Subadviser is entitled to a fee payable by the Manager. The Manager has contractually agreed to waive fees and reimburse the Fund to limit the annual expenses, excluding interest expense (e.g., cash overdraft fees), taxes, brokerage commissions, 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, 2018.

For the year ended December 31, 2016, 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, 2016, the reimbursements that are subject to repayment by the Fund in subsequent years were as follows:

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, 2016, 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 and is paid a separate fee from the underlying funds for such services. At December 31, 2016, these underlying funds are noted as Affiliated Investment Companies in the Fund’s Consolidated Schedule of Portfolio Investments. A summary of the Fund’s investments in affiliated investment companies for the year ended December 31, 2016 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 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 Trust-wide asset-based fee, which is based on the following schedule: 0.05% of daily average net assets on the first $4 billion, 0.04% of daily average net assets on the next $2 billion, 0.02% of daily average net assets on the next $2 billion and 0.01% of daily average net assets over $8 billion. The overall Trust-wide fees are accrued daily and paid monthly and are subject to a minimum annual fee. The Administrator is entitled to 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. 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.”

Allianz Life Financial Services, LLC (“ALFS”), an affiliate of the Manager, serves as distributor of the Fund and receives 12b-1 fees directly from the Fund, plus a Trust-wide annual fee of $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, 2016, $8,584 was paid from the Fund relating to these fees and expenses.

Governance Committee receives an additional $25,500 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, 2016, actual Trustee compensation was $1,258,000 in total for both trusts.

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.

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

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

Non exchange-traded derivatives, such as swaps and certain options, are generally valued by approved independent pricing services utilizing techniques which take into account factors such as yields, quality, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes and are typically categorized as Level 2 in the fair value hierarchy. The Fund generally values index options at the average of the closing bid and ask quotations on the principal exchange on which the option is traded and are typically categorized as Level 1 in the fair value hierarchy. For options where market quotations are not readily available, fair value procedures as described below may be applied.

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

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, 2016 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, 2016, 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, 2016, cost of purchases and proceeds from sales of long-term U.S. government securities included above 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, 2016 are identified below.

Bank Loan Risk: There are a number of risks associated with an investment in bank loans including credit risk, interest rate risk, liquidity risk and prepayment risk. Lack of an active trading market, restrictions on resale, irregular trading activity, wide bid/ask spreads and extended trade settlement periods may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding bank loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. These risks could cause the Fund to lose income or principal on a particular investment, which in turn could affect the Fund’s returns. The value of bank loans can be affected by and sensitive to changes in government regulation and to economic downturns in the United States and abroad. Bank loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts periodically based on changes in widely accepted reference rates.

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.

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.

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, 2016 is $ 781,221,711. 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, 2016 were as follows:

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

At December 31, 2016, the components of accumulated earnings on a tax basis were as follows:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the “Rules”). The Rules which introduce two new regulatory reporting forms for investment companies – Form N-PORT and Form N-CEN – also contain amendments to Regulation S-X which require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The amendments are effective for filings made with the SEC after August 1, 2017. Management is currently evaluating the impact of the amendments on the fund’s financial statements. The adoption will have no effect on the Funds’ net assets or results of operations.

We have audited the accompanying consolidated statement of assets and liabilities of AZL MVP BlackRock Global Strategy Plus Fund (formerly, 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, 2016, 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 five-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, 2016, 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 Strategy Plus Fund as of December 31, 2016, the results of their operations for the year then ended, the changes in their 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 five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2016, 14.51% 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, 2016, the Fund declared net long-term capital gain distributions of $29,417,134.

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

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

At the Board of Trustees meeting held October 25, 2016, 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 three MVP Fusion Funds the advisory fee paid put these Funds in the 41st percentile of the customized peer group. The Manager reported that for three Index Strategy Funds the advisory fee paid put them in the 33rd percentile of the customized peer group. The Manager reported that for the AZL MVP BlackRock Global Allocation, AZL MVP DFA Multi-Strategy, AZL MVP T. Rowe Price Capital Appreciation, and for the AZL DFA Multi-Strategy Funds, the advisory paid fee was in the 10th 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.

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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.


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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 45 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 53 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 47 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance for year ended December 31, 2016?

For the year ended December 31, 2016, the AZL^® MVP DFA Multi-Strategy Fund (the “Fund”) returned 9.05%. That compared to a 11.96%, 2.65% and a 8.21% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Multi-Strategy Composite Index¹, respectively.

The 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.*

Value stocks significantly outperformed growth stocks during 2016 while smaller stocks outperformed larger stocks; the S&P 500 gained 11.96% during the period while the S&P 600 Index² gained 26.56% and the S&P 400 Index³ gained 20.74%. International equity markets were unable to keep up with their U.S. counterparts and generally experienced smaller gains, despite continued quantitative easing efforts by central banks in Europe and Japan. The MSCI EAFE Index⁴, burdened by the impact of a strengthening dollar, rose 1.00%.

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review and largely maintained a neutral equity allocation for most of the year relative to its target. There were two periods of volatility in 2016 during which the MVP process reduced the Fund’s equity exposure. Global growth concerns led to increased volatility at the start of the year, and volatility returned in mid-2016 as markets grappled with the U.K.’s vote in June to exit the European Union. In both instances, markets quickly recovered, and the MVP risk management process ultimately dragged 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.

³	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.

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 DFA Strategy Underlying Funds that represent different classes in the Fund’s asset allocation.

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 of 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.

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 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, 2016


				Since
	1			Inception
	Year			(4/27/15)
AZL^® MVP DFA Multi-Strategy Fund		9.05	%		2.12	%
S&P 500 Index		11.96	%		5.92	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		0.80	%
Multi-Strategy Composite Index		8.21	%		3.98	%


Expense Ratio	Gross
AZL^® MVP DFA Multi-Strategy Fund		1.39	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 Bloomberg 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 Bloomberg 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%) Bloomberg 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%):
	320,597	AZL DFA Emerging Markets Core Equity Fund	$	2,696,219
	2,036,286	AZL DFA Five-Year Global Fixed Income Fund		20,281,404
	405,358	AZL DFA International Core Equity Fund		3,733,344
	1,724,989	AZL DFA U.S. Core Equity Fund		18,526,385
	461,000	AZL DFA U.S. Small Cap Fund		5,264,616

	Total Affiliated Investment Companies (Cost $47,947,996)			50,501,968

	Unaffiliated Investment Company (0.2%):
	90,208	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares , 0.31%(a)		90,208

	Total Unaffiliated Investment Company (Cost $90,208)			90,208

	Total Investment Securities (Cost $48,038,204)(b) — 94.9%			50,592,176
	Net other assets (liabilities) — 5.1%			2,733,471

	Net Assets — 100.0%		$	53,325,647

Percentages indicated are based on net assets as of December 31, 2016.

(a)	The rate represents the effective yield at December 31, 2016.

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

Cash of $2,660,281 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investment securities in non-affiliates, at cost	$	90,208
Investments in affiliates, at cost		47,947,996

Total Investment securities, at cost	$	48,038,204

Investment securities in non-affiliates, at value	$	90,208
Investments in affiliates, at value		50,501,968

Total Investment securities, at value	$	50,592,176
Cash		1,323
Segregated cash for collateral		2,660,281
Interest and dividends receivable		434
Receivable for capital shares issued		168,521
Prepaid expenses		256

Total Assets		53,422,991

Liabilities:
Payable for affiliated investments purchased		88,389
Manager fees payable		1,234
Administration fees payable		4,528
Custodian fees payable		995
Administrative and compliance services fees payable		145
Trustee fees payable		110
Other accrued liabilities		1,943

Total Liabilities		97,344

Net Assets	$	53,325,647

Net Assets Consist of:
Capital	$	50,660,985
Accumulated net investment income/(loss)		277,991
Accumulated net realized gains/(losses) from investment transactions		(163,878	)
Net unrealized appreciation/(depreciation) on investments		2,550,549

Net Assets	$	53,325,647

Shares of beneficial interest (unlimited number of shares authorized, no par value)		5,149,172
Net Asset Value (offering and redemption price per share)	$	10.36

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	327,711
Dividends		179

Total Investment Income		327,890

Expenses:
Manager fees		75,930
Administration fees		51,496
Custodian fees		1,967
Administrative and compliance services fees		621
Trustee fees		2,087
Professional fees		1,867
Shareholder reports		1,600
Other expenses		673

Total expenses before reductions		136,241
Less expenses voluntarily waived/reimbursed by the Manager		(47,930	)
Less expense contractually waived/reimbursed by the Manager		(31,356	)

Net expenses		56,955

Net Investment Income/(Loss)		270,935

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(196,562	)
Net realized gains distributions from affiliated underlying funds		7,434
Net realized gains/(losses) on futures contracts		91,821
Change in net unrealized appreciation/depreciation on investments		3,344,944

Net Realized/Unrealized Gains/(Losses) on Investments		3,247,637

Change in Net Assets Resulting From Operations	$	3,518,572

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP DFA Multi-Strategy Fund (the “Fund”), and 11 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) 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, 2016, 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 $2.6 million as of December 31, 2016. The monthly average notional amount for these contracts was $2 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, the annual rate due to the Manager and the annual expense limit were as follows:

At December 31, 2016, the 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, 2016, $360 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $48,274,708. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

Capital loss carry forwards (“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.

During the year ended December 31, 2016, the Fund utilized $54,732 in capital loss carry forwards to offset capital gains.

At December 31, 2016, 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, 2016, and the related statement of operations for the year then ended and the statements of changes in net assets and the financial highlights for each of the years or periods 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, 2016, 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 DFA Multi-Strategy Fund as of December 31, 2016, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the years or periods in the two-year period then ended, 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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

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

What factors affected the Fund’s performance for the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL MVP FusionSM Dynamic Balanced Fund (the “Fund”) returned 5.40%. That compared to a 11.96%, 2.65% and 7.28% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The Fund is a fund of funds that achieves broad diversification by investing in underlying funds. 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.*

Overall, 2016 brought a favorable economic backdrop for stocks. Major equity categories posted gains during the period under review, as U.S. economic growth remained steady, corporate earnings in most sectors proved robust, central banks in many major economies continued to pursue accommodative strategies, and merger activity increased. Even so, the path of equity returns was not linear. For example, global markets declined sharply following Britain’s June vote to leave the European Union, but stocks recovered quickly. Meanwhile, U.S. equities posted particularly strong gains during a year-end rally after Donald Trump’s victory in the U.S. presidential election. The S&P 500 Index gained 11.96% during the period while the MSCI EAFE Index², burdened in part by the impact of a strengthening dollar, rose 1.00%.

The Fund underperformed its composite benchmark during the period under review. This underperformance was primarily due to the Fund’s strategic allocation to international and emerging markets, which broadly lagged domestic stocks during the period. The Fund’s underlying equity portfolios also broadly detracted from relative performance, as the actively managed domestic and international funds struggled to beat their benchmarks. However, the selection of securities within the Fund’s underlying fixed-income portfolios contributed positively to relative performance on an overall basis. An out-of-benchmark allocation to high-yield bonds and a tilt towards small- and mid-cap U.S. stocks also supported relative performance. The Bloomberg Barclays U.S. Corporate High Yield Bond Index3 returned 17.13% during the period while the S&P 400 Index4 gained 20.74% and the S&P 600 Index5 rose 26.56%.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review and largely maintained a neutral equity allocation for most of the year relative to its target. There were two periods of volatility in 2016 during which the MVP process reduced the Fund’s equity exposure. Global growth concerns led to increased volatility at the start of the year, and volatility returned in mid-2016 as markets grappled with the U.K.’s vote to exit the European Union. In both instances, markets quickly recovered, and the MVP risk management process ultimately dragged 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.

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	Bloomberg 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.

⁴	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.

⁵

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

Returns on growth stocks may not move in tandem with returns on other categories of stocks or the market as a whole. Growth stocks may be susceptible to rapid price savings or to adverse developments in certain sectors of the market.

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.

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, 2016


	1			3			5			10
	Year			Year			Year			Year
AZL MVP Fusion^SMDynamic Balanced Fund		5.40	%		2.86	%		6.21	%		3.89	%
S&P 500 Index		11.96	%		8.87	%		14.66	%		6.95	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.23	%		4.34	%
Balanced Composite Index		7.28	%		6.00	%		8.44	%		6.06	%


Expense Ratio	Gross
AZL MVP Fusion^SMDynamic Balanced Fund		0.95	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 expense ratios can be found in the financial highlights.

As a shareholder of the AZL MVP Fusion Dynamic 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 (95.1%):
	4,293,575	AZL DFA International Core Equity Fund	$	39,543,825
	3,149,936	AZL DFA U.S. Core Equity Fund		33,830,315
	1,523,381	AZL DFA U.S. Small Cap Fund		17,397,011
	4,873,238	AZL Emerging Markets Equity Index Fund, Class 2		32,163,373
	7,578,681	AZL Enhanced Bond Index Fund		80,864,521
	1,852,853	AZL Gateway Fund		22,771,561
	6,732,541	AZL International Index Fund, Class 2		94,928,827
	10,793,391	AZL MetWest Total Return Bond Fund		108,689,445
	2,090,238	AZL Mid Cap Index Fund, Class 2		44,835,598
	10,815,094	AZL Pyramis Total Bond Fund, Class 2		108,691,698
	8,681,030	AZL Russell 1000 Growth Index Fund, Class 2		112,766,586
	8,437,665	AZL Russell 1000 Value Index Fund, Class 2		112,980,337
	1,225,329	AZL Small Cap Stock Index Fund, Class 2		17,436,434
	5,505,122	PIMCO PVIT Income Portfolio		56,097,198
	5,432,807	PIMCO PVIT Low Duration Portfolio		55,631,939
	10,256,095	PIMCO PVIT Total Return Portfolio		109,124,850

	Total Affiliated Investment Companies (Cost $1,007,805,451)			1,047,753,518

	Total Investment Securities (Cost $1,007,805,451)(a) — 95.1%			1,047,753,518
	Net other assets (liabilities) — 4.9%			54,370,053

	Net Assets — 100.0%		$	1,102,123,571

Percentages indicated are based on net assets as of December 31, 2016.

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

Cash of $55,080,010 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in affiliates, at cost	$	1,007,805,451

Investments in affiliates, at value	$	1,047,753,518
Segregated cash for collateral		55,080,010
Interest and dividends receivable		379,102
Receivable for variation margin on futures contracts		76,313
Receivable for affiliated investments sold		204,690
Prepaid expenses		6,026

Total Assets		1,103,499,659

Liabilities:
Cash overdraft		198,823
Payable for affiliated investments purchased		372,555
Payable for capital shares redeemed		460,147
Payable for variation margin on futures contracts		109,143
Manager fees payable		187,105
Administration fees payable		5,198
Custodian fees payable		1,786
Administrative and compliance services fees payable		3,140
Trustee fees payable		2,385
Other accrued liabilities		35,806

Total Liabilities		1,376,088

Net Assets	$	1,102,123,571

Net Assets Consist of:
Capital	$	947,763,456
Accumulated net investment income/(loss)		18,502,976
Accumulated net realized gains/(losses) from investment transactions		96,026,168
Net unrealized appreciation/(depreciation) on investments		39,830,971

Net Assets	$	1,102,123,571

Shares of beneficial interest (unlimited number of shares authorized, no par value)		92,739,379
Net Asset Value (offering and redemption price per share)	$	11.88

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	19,262,006
Dividends		18,735

Total Investment Income		19,280,741

Expenses:
Manager fees		2,261,579
Administration fees		59,685
Custodian fees		3,239
Administrative and compliance services fees		19,224
Trustee fees		65,074
Professional fees		47,960
Shareholder reports		29,639
Other expenses		25,478

Total expenses		2,511,878

Net Investment Income/(Loss)		16,768,863

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		82,291,439
Net realized gains distributions from affiliated underlying funds		31,192,474
Net realized gains/(losses) on futures contracts		(1,622,331	)
Change in net unrealized appreciation/depreciation on investments		(69,648,231	)

Net Realized/Unrealized Gains/(Losses) on Investments		42,213,351

Change in Net Assets Resulting From Operations	$	58,982,214

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Dynamic Balanced Fund (formerly, AZL MVP Fusion Balanced Fund) (the “Fund”), and 11 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) 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, 2016, 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 $55 million as of December 31, 2016. The monthly average notional amount for these contracts was $52.6 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $11,650 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $1,011,429,981. 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, 2016 were as follows:

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

At December 31, 2016, 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 Dynamic Balanced Fund (formerly, 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, 2016, 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, 2016, 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 Dynamic Balanced Fund as of December 31, 2016, 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, 2016, 18.50% 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, 2016, the Fund declared net long-term capital gain distributions of $55,908,893.

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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL MVP Fusion^SM Dynamic Conservative Fund (the “Fund”) returned 5.32%. That compared to a 11.96%, 2.65% and a 5.89% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Conservative Composite Index¹, respectively.

The Fund is a fund of funds that achieves broad diversification by investing in underlying funds. 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.*

Overall, 2016 brought a favorable economic backdrop for stocks. Major equity categories posted gains during the period under review, as U.S. economic growth remained steady, corporate earnings in most sectors proved robust, central banks in many major economies continued to pursue accommodative strategies, and merger activity increased. Even so, the path of equity returns was not linear. For example, global markets declined sharply following Britain’s June vote to leave the European Union, but stocks recovered quickly. Meanwhile, U.S. equities posted particularly strong gains during a year-end rally after Donald Trump’s victory in the U.S. presidential election. The S&P 500 Index gained 11.96% during the period while the MSCI EAFE Index², burdened in part by the impact of a strengthening dollar, rose 1.00%.

The Fund underperformed its composite benchmark during the period under review. This underperformance was primarily due to the Fund’s strategic allocation to international and emerging markets, which broadly lagged domestic stocks during the period. The Fund’s underlying equity portfolios also broadly detracted from relative performance, as the actively managed domestic and international funds struggled to beat their benchmarks. However, the selection of securities within the Fund’s underlying fixed-income portfolios contributed positively to relative performance on an overall basis. An out-of-benchmark allocation to high-yield bonds and a tilt towards small- and mid-cap U.S. stocks also supported relative performance. The Bloomberg Barclays U.S. Corporate High Yield Bond Index³ returned 17.13% during the period while the S&P 400 Index⁴ gained 20.74% and the S&P 600 Index5 rose 26.56%.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review and largely maintained a neutral equity allocation for most of the year relative to its target. There were two periods of volatility in 2016 during which the MVP process reduced the Fund’s equity exposure. Global growth concerns led to increased volatility at the start of the year, and volatility returned in mid-2016 as markets grappled with the U.K.’s vote to exit the European Union. In both instances, markets quickly recovered, and the MVP risk management process ultimately dragged 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.

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	Bloomberg 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.

⁴	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.

⁵

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

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.

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, 2016


										Since
	1			3			5			Inception
	Year			Year			Year			(10/23/09)
AZL MVP Fusion^SMDynamic Conservative Fund		5.32	%		3.08	%		5.64	%		5.76	%
S&P 500 Index		11.96	%		8.87	%		14.66	%		13.05	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.23	%		3.56	%
Conservative Composite Index		5.89	%		5.12	%		6.58	%		7.06	%


Expense Ratio	Gross
AZL MVP Fusion^SMDynamic Conservative Fund		1.01	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 Bloomberg 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 Bloomberg 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%) Bloomberg 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 Dynamic 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 (95.0%):
	759,142	AZL DFA International Core Equity Fund	$	6,991,694
	384,480	AZL DFA U.S. Core Equity Fund		4,129,311
	241,040	AZL DFA U.S. Small Cap Fund		2,752,679
	617,777	AZL Emerging Markets Equity Index Fund, Class 2		4,077,330
	2,551,755	AZL Enhanced Bond Index Fund		27,227,225
	334,808	AZL Gateway Fund		4,114,793
	1,088,448	AZL International Index Fund, Class 2		15,347,118
	3,599,800	AZL MetWest Total Return Bond Fund		36,249,988
	385,248	AZL Mid Cap Index Fund, Class 2		8,263,574
	3,606,977	AZL Pyramis Total Bond Fund, Class 2		36,250,115
	1,611,664	AZL Russell 1000 Growth Index Fund, Class 2		20,935,518
	1,566,451	AZL Russell 1000 Value Index Fund, Class 2		20,974,784
	290,166	AZL Small Cap Stock Index Fund, Class 2		4,129,057
	1,645,167	PIMCO PVIT Income Portfolio		16,764,247
	1,909,739	PIMCO PVIT Low Duration Portfolio		19,555,728
	3,412,276	PIMCO PVIT Total Return Portfolio		36,306,623

	Total Affiliated Investment Companies (Cost $259,849,429)			264,069,784

	Total Investment Securities (Cost $259,849,429)(a) — 95.0%			264,069,784
	Net other assets (liabilities) — 5.0%			13,818,912

	Net Assets — 100.0%		$	277,888,696

Percentages indicated are based on net assets as of December 31, 2016.

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

Cash of $13,907,075 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in affiliates, at cost	$	259,849,429

Investments in affiliates, at value	$	264,069,784
Segregated cash for collateral		13,907,075
Interest and dividends receivable		123,778
Receivable for affiliated investments sold		606,035
Receivable for variation margin on futures contracts		25,140
Prepaid expenses		1,483

Total Assets		278,733,295

Liabilities:
Cash overdraft		599,462
Payable for affiliated investments purchased		128,583
Payable for capital shares redeemed		33,130
Payable for variation margin on futures contracts		19,538
Manager fees payable		47,506
Administration fees payable		4,684
Custodian fees payable		1,289
Administrative and compliance services fees payable		786
Trustee fees payable		597
Other accrued liabilities		9,024

Total Liabilities		844,599

Net Assets	$	277,888,696

Net Assets Consist of:
Capital	$	259,267,159
Accumulated net investment income/(loss)		4,942,255
Accumulated net realized gains/(losses) from investment transactions		9,507,443
Net unrealized appreciation/(depreciation) on investments		4,171,839

Net Assets	$	277,888,696

Shares of beneficial interest (unlimited number of shares authorized, no par value)		23,370,044
Net Asset Value (offering and redemption price per share)	$	11.89

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	5,185,925
Dividends		4,846

Total Investment Income		5,190,771

Expenses:
Manager fees		555,362
Administration fees		53,292
Custodian fees		2,460
Administrative and compliance services fees		4,665
Trustee fees		15,762
Professional fees		11,855
Shareholder reports		7,498
Other expenses		5,751

Total expenses		656,645

Net Investment Income/(Loss)		4,534,126

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		5,647,705
Net realized gains distributions from affiliated underlying funds		5,920,403
Net realized gains/(losses) on futures contracts		399,793
Change in net unrealized appreciation/depreciation on investments		(2,100,279	)

Net Realized/Unrealized Gains/(Losses) on Investments		9,867,622

Change in Net Assets Resulting From Operations	$	14,401,748

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Dynamic Conservative Fund (formerly, AZL MVP Fusion Conservative Fund) (the “Fund”), and 11 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) 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, 2016, 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 $13.8 million as of December 31, 2016. The monthly average notional amount for these contracts was $13.5 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $2,831 was paid from the Fund relating to these fees and expenses.

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 (the ”Board” or “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. 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 year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $261,622,152. 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, 2016 were as follows:

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

At December 31, 2016, 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 Dynamic Conservative Fund (formerly, 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, 2016, 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, 2016, 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 Dynamic Conservative Fund as of December 31, 2016, 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, 2016, 14.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2016, the Fund declared net long-term capital gain distributions of $8,746,642.

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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

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

What factors affected the Fund’s performance during the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL MVP Fusion^SM Dynamic Moderate Fund (the “Fund”) returned 4.29%. That compared to a 11.96%, 2.65% and a 8.21% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Moderate Composite Index¹, respectively.

The Fund is a fund of funds that achieves broad diversification by investing in underlying funds. The Fund typically holds between 50% and 70% of its assets in equity funds and 30% to 50% 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.*

Overall, 2016 brought a favorable economic backdrop for stocks. Major equity categories posted gains during the period under review, as U.S. economic growth remained steady, corporate earnings in most sectors proved robust, central banks in many major economies continued to pursue accommodative strategies, and merger activity increased. Even so, the path of equity returns was not linear. For example, global markets declined sharply following Britain’s June vote to leave the European Union, but stocks recovered quickly. Meanwhile, U.S. equities posted particularly strong gains during a year-end rally after Donald Trump’s victory in the U.S. presidential election. The S&P 500 Index gained 11.96% during the period while the MSCI EAFE Index², burdened in part by the impact of a strengthening dollar, rose 1.00%.

The Fund underperformed its composite benchmark during the period under review. This underperformance was primarily due to the Fund’s strategic allocation to international and emerging markets, which broadly lagged domestic stocks during the period. The Fund’s underlying equity portfolios also broadly detracted from relative performance, as the actively managed domestic and international funds struggled to beat their benchmarks. However, the selection of securities within the Fund’s underlying fixed-income portfolios contributed positively to relative performance on an overall basis. An out-of-benchmark allocation to high-yield bonds and a tilt towards small- and mid-cap U.S. stocks also supported relative performance. The Bloomberg Barclays Corporate U.S. High Yield Bond Index3 returned 17.13% during the period while the S&P 400 Index4 gained 20.74% and the S&P 600 Index5 rose 26.56%.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review and largely maintained a neutral equity allocation for most of the year relative to its target. There were two periods of volatility in 2016 during which the MVP process reduced the Fund’s equity exposure. Global growth concerns led to increased volatility at the start of the year, and volatility returned in mid-2016 as markets grappled with the U.K.’s vote to exit the European Union. In both instances, markets quickly recovered, and the MVP risk management process ultimately dragged 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.

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	Bloomberg 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.

⁴	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.

⁵

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

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.

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, 2016


	1			3			5			10
	Year			Year			Year			Year
AZL MVP Fusion^SMDynamic Moderate Fund		4.29	%		2.23	%		6.73	%		3.38	%
S&P 500 Index		11.96	%		8.87	%		14.66	%		6.95	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.23	%		4.34	%
Moderate Composite Index		8.21	%		6.58	%		9.68	%		6.30	%


Expense Ratio	Gross
AZL MVP Fusion^SMDynamic Moderate Fund		0.96	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 Bloomberg 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 Bloomberg 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%) Bloomberg 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 Dynamic 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, continued
	9,398,496	PIMCO PVIT Income Portfolio	$	95,770,673
	6,873,208	PIMCO PVIT Low Duration Portfolio		70,381,649
	17,920,944	PIMCO PVIT Total Return Portfolio		190,678,846

	Total Affiliated Investment Companies (Cost $2,151,660,143)			2,245,778,807

	Unaffiliated Investment Company (0.0%):
	72,032	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.31%(a)		72,032

	Total Unaffiliated Investment Company (Cost $72,032)			72,032

	Total Investment Securities
	(Cost $2,151,732,175)(b) — 96.1%			2,245,850,839
	Net other assets (liabilities) — 3.9%			90,482,063

	Net Assets — 100.0%		$	2,336,332,902

Cash of $91,469,571 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in non-affiliates, at cost	$	72,032
Investments in affiliates, at cost		2,151,660,143

Total Investment securities, at cost	$	2,151,732,175

Investments in non-affiliates, at value	$	72,032
Investments in affiliates, at value		2,245,778,807

Total Investment securities, at value	$	2,245,850,839
Cash		3,616
Segregated cash for collateral		91,469,571
Interest and dividends receivable		630,289
Receivable for variation margin on futures contracts		101,851
Receivable for affiliated investments sold		116,337
Prepaid expenses		12,883

Total Assets		2,338,185,386

Liabilities:
Payable for affiliated investments purchased		760,826
Payable for capital shares redeemed		390,261
Payable for variation margin on futures contracts		217,491
Manager fees payable		396,167
Administration fees payable		5,976
Custodian fees payable		2,600
Administrative and compliance services fees payable		6,713
Trustee fees payable		5,098
Other accrued liabilities		67,352

Total Liabilities		1,852,484

Net Assets	$	2,336,332,902

Net Assets Consist of:
Capital	$	2,026,156,371
Accumulated net investment income/(loss)		36,718,833
Accumulated net realized gains/(losses) from investment transactions		179,450,496
Net unrealized appreciation/(depreciation) on investments		94,007,202

Net Assets	$	2,336,332,902

Shares of beneficial interest (unlimited number of shares authorized, no par value)		201,477,721
Net Asset Value (offering and redemption price per share)	$	11.60

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	37,750,495
Dividends		27,422

Total Investment Income		37,777,917

Expenses:
Manager fees		4,735,672
Administration fees		68,988
Custodian fees		4,501
Administrative and compliance services fees		40,519
Trustee fees		136,689
Professional fees		101,337
Shareholder reports		48,663
Other expenses		50,763

Total expenses		5,187,132

Net Investment Income/(Loss)		32,590,785

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		173,320,256
Net realized gains distributions from affiliated underlying funds		78,130,932
Net realized gains/(losses) on futures contracts		(29,670,647	)
Change in net unrealized appreciation/depreciation on investments		(156,827,299	)

Net Realized/Unrealized Gains/(Losses) on Investments		64,953,242

Change in Net Assets Resulting From Operations	$	97,544,027

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Dynamic Moderate Fund (formerly, AZL MVP Fusion Moderate Fund) (the “Fund”), and 11 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) 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, 2016, 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 $91.1 million as of December 31, 2016. The monthly average notional amount for these contracts was $128.9 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $24,395 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $2,158,001,201. 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, 2016 were as follows:

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

At December 31, 2016, 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, 2016, the Fund had a controlling interest (in excess of 50%) in the AZL MetWest Total Return Bond Fund, which is affiliated with the Investment Adviser.

We have audited the accompanying statement of assets and liabilities of AZL MVP Fusion Dynamic Moderate Fund (formerly, 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, 2016, 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, 2016, 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 Fusion Dynamic Moderate Fund as of December 31, 2016, 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, 2016, 22.71% 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, 2016, the Fund declared net long-term capital gain distributions of $148,289,923.

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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance for the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL^® MVP Growth Index Strategy Fund (the “Fund”) returned 6.80%. That compared to a 11.96%, 2.65% and a 9.62% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Growth Composite Index¹, respectively.

The 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 Bloomberg Barclays Capital 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.

The Fund underperformed its composite benchmark for the period under review. The underperformance was primarily due to the Fund’s strategic allocation to international equity markets, which broadly lagged domestic stocks during the period. The underlying fixed-income portfolio also lagged its benchmark during the period, detracting further from relative performance. The Fund’s allocations to small- and mid-cap U.S. equities, however, contributed positively to relative returns as they collectively outperformed the larger stocks found in the S&P 500 Index. The S&P 400 Index gained 20.74% during the period while the S&P 600 Index rose 26.56%.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review and largely maintained a neutral equity allocation for most of the year relative to its target. There were two periods of volatility in 2016 during which the MVP process reduced the Fund’s equity exposure. Global growth concerns led to increased volatility at the start of the year, and volatility returned in mid-2016 as markets grappled with the U.K.’s vote to exit the European Union. In both instances, markets quickly recovered, and the MVP risk management process ultimately dragged 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.

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.

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 Index Strategy Underlying Funds that represent different classes in the Fund’s asset allocation.

Investment Concerns

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, 2016


							Since
	1			3			Inception
	Year			Year			(1/10/12)
AZL^® MVP Growth Index Strategy Fund		6.80	%		4.10	%		8.68	%
S&P 500 Index		11.96	%		8.87	%		14.10	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.26	%
Growth Composite Index		9.62	%		7.45	%		11.15	%


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 Bloomberg 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 Bloomberg 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%) Bloomberg 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 (95.1%):
	48,576,453	AZL Enhanced Bond Index Fund	$	518,310,753
	29,249,324	AZL International Index Fund, Class 2		412,415,467
	11,887,598	AZL Mid Cap Index Fund, Class 2		254,988,987
	57,917,436	AZL S&P 500 Index Fund, Class 2		814,319,154
	9,329,214	AZL Small Cap Stock Index Fund, Class 2		132,754,720

	Total Affiliated Investment Companies (Cost $2,039,308,927)			2,132,789,081

	Unaffiliated Investment Company (0.0%):
	5,857	Dreyfus Treasury Prime Cash Management Fund Institutional Shares, 0.31%(a)		5,857

	Total Unaffiliated Investment Company (Cost $5,857)			5,857

	Total Investment Securities (Cost $2,039,314,784)(b) — 95.1%			2,132,794,938
	Net other assets (liabilities) — 4.9%			110,577,849

	Net Assets — 100.0%		$	2,243,372,787

Percentages indicated are based on net assets as of December 31, 2016.

(a)	The rate represents the effective yield at December 31, 2016.

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

Cash of $111,073,150 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in non-affiliates, at cost	$	5,857
Investments in affiliates, at cost		2,039,308,927

Total Investment securities, at cost	$	2,039,314,784

Investments in non-affiliates, at value	$	5,857
Investments in affiliates, at value		2,132,789,081

Total Investment securities, at value	$	2,132,794,938
Segregated cash for collateral		111,073,150
Interest and dividends receivable		3,445
Receivable for variation margin on futures contracts		504
Receivable for capital shares issued		1,128,129
Receivable for affiliated investments sold		1,055,130
Prepaid expenses		12,862

Total Assets		2,246,068,158

Liabilities:
Cash overdraft		2,143,972
Payable for capital shares redeemed		211,497
Payable for variation margin on futures contracts		217
Manager fees payable		189,404
Administration fees payable		5,829
Custodian fees payable		2,104
Administrative and compliance services fees payable		6,240
Trustee fees payable		4,739
Other accrued liabilities		131,369

Total Liabilities		2,695,371

Net Assets	$	2,243,372,787

Net Assets Consist of:
Capital	$	2,054,942,233
Accumulated net investment income/(loss)		28,019,266
Accumulated net realized gains/(losses) from investment transactions		66,926,830
Net unrealized appreciation/(depreciation) on investments		93,484,458

Net Assets	$	2,243,372,787

Shares of beneficial interest (unlimited number of shares authorized, no par value)		159,301,510
Net Asset Value (offering and redemption price per share)	$	14.08

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	26,652,730
Dividends		25,767

Total Investment Income		26,678,497

Expenses:
Manager fees		1,597,546
Administration fees		60,368
Custodian fees		3,116
Administrative and compliance services fees		26,662
Trustee fees		88,497
Professional fees		79,772
Shareholder reports		51,411
Other expenses		14,361

Total expenses		1,921,733

Net Investment Income/(Loss)		24,756,764

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(4,886,324	)
Net realized gains distributions from affiliated underlying funds		92,372,988
Net realized gains/(losses) on futures contracts		(16,651,571	)
Change in net unrealized appreciation/depreciation on investments		24,123,149

Net Realized/Unrealized Gains/(Losses) on Investments		94,958,242

Change in Net Assets Resulting From Operations	$	119,715,006

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Growth Index Strategy Fund (the “Fund”), and 11 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) 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, 2016, 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 $111.1 million as of December 31, 2016. The monthly average notional amount for these contracts was $101.6 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $16,078 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $2,044,292,039. 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, 2016 were as follows:

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

At December 31, 2016, the components of accumulated earnings on a tax basis were as follows:

Effective as of the close of business October 21, 2016, the Fund acquired all of the net assets of the AZL MVP Fusion Growth Fund (“Acquired Fund”), an open-end management investment company, pursuant to a plan of reorganization approved by the Board on June 14, 2016. The purpose of the transaction was to combine two funds managed by the Manager with comparable investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of 47,001,133 shares of the Fund, valued at $642,975,499, for 53,513,953 shares of the Acquired Fund outstanding as of close of business October 21, 2016.

The investment portfolio and cash of the Acquired Fund were the principal assets acquired by the Fund. At the close of business October 21, 2016, the Acquired Fund had a fair value of $643,223,205 and identified cost of $640,882,959. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from the Acquired Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the merger, the Fund’s net assets were $1,520,825,037. All fees and expenses incurred by the Acquired Fund and the Fund directly in connection with the plan of reorganization were borne equally by the Manager and the Acquired Fund, except that the expenses borne by the Acquired Fund did not exceed $178,000, as provided by the plan of reorganization.

Assuming the acquisition had been completed on January 1, 2016, the beginning of the annual reporting period of the Fund, the Fund’s pro forma results of operations for the year ended December 31, 2016, are as follows:

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the Fund’s statement of operations since October 22, 2016.

In the calculation of the portfolio turnover as presented in the Financial Highlights, the Fund excluded the cost of purchases and proceeds from sales of portfolio securities that occurred in the effort to realign a combined fund’s portfolio after the merger. The amounts of excluded purchases and sales are 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, 2016, 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 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, 2016, 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 Growth Index Strategy Fund as of December 31, 2016, 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 five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2016, 37.58% 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, 2016, the Fund declared net long-term capital gain distributions of $8,888,678.

At the Board of Trustees meeting held October 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance for the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL^® MVP Moderate Index Strategy Fund (the “Fund”) returned 5.43%. That compared to a 11.96%, 2.65% and a 8.21% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

Effective October 14, 2016, the Fund’s name was changed to the AZL MVP Moderate Index Strategy Fund and Allianz Investment Management LLC (the “Manager”) assumed direct responsibility for the day-to-day management of the Fund’s assets. At the same time, the Fund’s investment strategies changed such that the Fund became a fund of funds which invested primarily in the shares of other mutual funds managed by the manager (the “Index Strategy Underlying Funds”).

The Fund is designed to provide a diversified portfolio consisting of index funds in equity and fixed income asset classes,combined with the MVP (Managed Volatility Portfolio) risk management process 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 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.

Overall, 2016 brought a favorable economic backdrop for stocks. Major equity categories posted gains during the period under review as U.S. economic growth remained steady and central banks in many major economies continued to pursue accommodative strategies. Even so, the path of equity returns was not linear as global markets declined sharply following Britain’s June vote to leave the European Union only to rebound days later. U.S. equities also posted strong gains following the U.S. presidential election. The S&P 500 Index gained 11.96% during the period while the MSCI EAFE Index², burdened in part by the impact of a strengthening dollar, rose 1.00%.

The Fund underperformed its reference benchmark for the 12-month period under review. Weak stock selection within materials was a large detractor from relative performance. In particular, low exposure to metal mining companies hurt relative performance when these stocks rallied on rising metal prices.*

The high-quality bonds and convertible bonds, including the Fund’s use of futures to gain exposure to U.S. Treasuries, in the fixed-income portion of the portfolio posted positive performance, but underperformed equities. As a result, these holdings detracted from the Fund’s performance relative to its composite benchmark.*

Strong stock selection and underweight allocations in consumer discretionary and health care stocks were large contributors to the Fund’s performance relative to its composite benchmark. Stock selection and an overweight allocation to energy stocks also enhanced relative performance, as did stock selection in consumer staples. The Fund made use of currency forward contracts for the purpose of hedging currency exposure to non-U.S.-based companies held in the portfolio. These currency forward contracts had a positive impact on the Fund’s performance during the period.*

Following the change which occurred on October 14, 2016 through December 31, 2016, the Fund had a total return of 2.35%, and performed in line with its composite benchmark (2.33% total return).

Allocations to small- and mid-cap U.S. equities supported relative returns as they collectively outperformed the larger stocks found in the S&P 500. The Fund’s relative performance was hurt by a strategic allocation to international equity as non-U.S. equity markets broadly lagged their domestic counterparts during the period.*

The MVP risk management process which includes the use of derivatives, futures in particular, worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. In early 2016, global growth concerns led to increased volatility and the MVP reduced the Fund’s equity exposure. Equity markets quickly recovered, however, and the MVP risk management process ultimately caused a drag on the Fund’s performance relative to its benchmark.*

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.

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 Index Strategy Underlying Funds that represent different classes in the Fund’s asset allocation.

Investment Concerns

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, 2016


							Since
	1			3			Inception
	Year			Year			(1/10/12)
AZL^® MVP Moderate Index Strategy Fund		5.43	%		3.43	%		8.38	%
S&P 500 Index		11.96	%		8.87	%		14.10	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.26	%
Balanced Composite Index		8.21	%		6.58	%		9.37	%


Expense Ratio	Gross
AZL^® MVP Moderate Index Strategy Fund		0.71	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 Bloomberg 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 Bloomberg 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%) Bloomberg 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 Moderate 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%):
	18,097,624	AZL Enhanced Bond Index Fund	$	193,101,645
	5,617,310	AZL International Index Fund, Class 2		79,204,077
	2,241,417	AZL Mid Cap Index Fund, Class 2		48,078,403
	10,603,610	AZL S&P 500 Index Fund, Class 2		149,086,758
	1,740,684	AZL Small Cap Stock Index Fund, Class 2		24,769,929

	Total Affiliated Investment Companies (Cost $482,038,254)			494,240,812

	Total Investment Securities (Cost $482,038,254)(a) — 95.0%			494,240,812
	Net other assets (liabilities) — 5.0%			25,871,365

	Net Assets — 100.0%		$	520,112,177

Percentages indicated are based on net assets as of December 31, 2016.

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

Cash of $26,013,922 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in affiliates, at cost	$	482,038,254

Investments in affiliates, at value	$	494,240,812
Segregated cash for collateral		26,013,922
Interest and dividends receivable		11
Receivable for capital shares issued		31,193
Receivable for affiliated investments sold		1,681,737
Prepaid expenses		2,940

Total Assets		521,970,615

Liabilities:
Cash overdraft		1,692,845
Payable for capital shares redeemed		93,775
Manager fees payable		44,349
Administration fees payable		4,832
Custodian fees payable		1,095
Administrative and compliance services fees payable		1,478
Trustee fees payable		1,122
Other accrued liabilities		18,942

Total Liabilities		1,858,438

Net Assets	$	520,112,177

Net Assets Consist of:
Capital	$	486,624,517
Accumulated net investment income/(loss)		8,896,980
Accumulated net realized gains/(losses) from investment transactions		12,419,409
Net unrealized appreciation/(depreciation) on investments		12,171,271

Net Assets	$	520,112,177

Shares of beneficial interest (unlimited number of shares authorized, no par value)		38,537,921
Net Asset Value (offering and redemption price per share)	$	13.50

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	9,550,108
Dividends		3,304

Total Investment Income		9,553,412

Expenses:
Manager fees		520,252
Administration fees		54,617
Custodian fees		1,874
Administrative and compliance services fees		7,776
Trustee fees		26,474
Professional fees		19,805
Shareholder reports		15,188
Other expenses		10,436

Total expenses		656,422

Net Investment Income/(Loss)		8,896,990

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		12,276,655
Net realized gains distributions from affiliated underlying funds		16,154,057
Net realized gains/(losses) on futures contracts		(15,992,619	)
Change in net unrealized appreciation/depreciation on investments		6,603,332

Net Realized/Unrealized Gains/(Losses) on Investments		19,041,425

Change in Net Assets Resulting From Operations	$	27,938,415

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Moderate Index Strategy Fund (formerly, AZL MVP Invesco Equity and Income Fund) (the “Fund”), and 11 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) 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, 2016, 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 million as of December 31, 2016. The monthly average notional amount for these contracts was $53.7 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $5,318 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $482,038,285. 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, 2016 were as follows:

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

At December 31, 2016, 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 Moderate Index Strategy Fund (formerly, 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, 2016, 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 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, 2016, 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 Moderate Index Strategy Fund as of December 31, 2016, 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 five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2016, 38.65% 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, 2016, the Fund declared net long-term capital gain distributions of $15,559,033.

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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance for year ended December 31, 2016?

For the year ended December 31, 2016, the AZL^® MVP Pyramis^® Multi-Strategy Fund (the “Fund”) returned 0.82%. That compared to a 11.96%, 2.65% and a 6.35% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The Fund currently invests in one underlying fund, the AZL^® Pyramis^® Multi-Strategy Fund. Approximately 60% of the underlying fund’s assets are managed by its subadviser, FIAM LLC, investing primarily in investment-grade fixed-income securities, and approximately 40% of the underlying fund’s assets will be managed by its subadviser, Geode Capital Management, LLC, investing in primarily in large-cap common stocks.

The global economy grew moderately during the 12-month period, despite slower growth in some countries. Domestic equities tumbled early in the period amid investor concerns over a slowing Chinese economy and falling commodity prices. Stocks rebounded as China’s central bank announced stimulus measures and the U.S. Federal Reserve adopted a cautious tone on interest rates. The U.K.’s Brexit roiled stock markets in June, but equities recovered quickly. Stocks also dipped before the U.S. presidential election but rallied after the election of Donald Trump. Most major bond sectors rose during the period.

Bonds performed well in the first half of the period, due in large part to a decline in interest rates, an improvement in commodity prices, an accommodative monetary policy and mostly stable U.S. economic conditions. The second half of the year proved more challenging for bonds as interest rates moved higher and inflation expectations rose.

The Fund’s returns were helped by exposure in its underlying funds to fixed income assets, particularly among high-yield corporate bonds and exposure to corporate credits in the energy and communications sectors. The Fund also benefited from investments by its underlying funds in a California-based information technology company, a New Jersey-based global pharmaceutical company and a U.K.-based global tobacco company. Stock selection by an underlying fund in the materials and industrials sectors, as well as stock selection in the energy sector, also benefited relative results. However, individual fixed income securities of several oil and gas companies detracted from Fund results during this period. The Fund was also hurt by stock selection in the health care and financials sectors.*

The Fund’s underlying fund used derivatives during the period, including FX forward contracts to manage foreign currency exposures, and interest rate swaps to hedge against duration and yield curve risks. The fund benefited from many currency positions during the period, including those held through FX forwards. However, select currency positions dragged on relative results, such as underweighted positions in the Japanese yen, the euro and the Australian dollar.*

The Fund’s relative performance benefited from exposure to Treasury inflation-protected securities, as well from an underweight position in mortgage-backed securities. The Fund also benefited from stock selection in the health care sector and the financials sector, particularly among large banks. The choice of stocks in the energy sector dragged on relative results. The Fund employed S&P 500 Index futures, which had no material impact on performance.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review and largely maintained a neutral equity allocation for most of the year relative to its target. There were two periods of volatility in 2016 during which the MVP process reduced the Fund’s equity exposure. Global growth concerns led to increased volatility at the start of the year, and volatility returned in mid-2016 as markets grappled with the U.K.’s vote to exit the European Union. In both instances, markets quickly recovered, and the MVP risk management process ultimately dragged 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 a high level of current income while maintaining prospects for 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 primarily in shares of another mutual fund managed by the manager, the AZL^® Pyramis^® Multi-Strategy Fund, combined with the MVP risk management process.

Investment Concerns

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

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

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, 2016


							Since
	1			3			Inception
	Year			Year			(4/30/12)
AZL^® MVP Pyramis^® Multi-Strategy Fund		0.82	%		-1.09	%		4.31	%
S&P 500 Index		11.96	%		8.87	%		13.03	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		3.03	%		2.09	%
Balanced Composite Index		6.35	%		5.41	%		6.47	%


Expense Ratio	Gross
AZL^® MVP Pyramis Multi-Strategy Fund		0.83	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 Bloomberg 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 Bloomberg 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 (40%) S&P 500 and (60%) Bloomberg 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 Pyramis 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 Company (95.1%):
	21,961,877	AZL Pyramis Multi-Strategy Fund	$	272,986,136

	Total Affiliated Investment Company (Cost $282,917,627)			272,986,136

	Total Investment Securities (Cost $282,917,627)(a) — 95.1%			272,986,136
	Net other assets (liabilities) — 4.9%			14,169,536

	Net Assets — 100.0%		$	287,155,672

Percentages indicated are based on net assets as of December 31, 2016.

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

Cash of $14,393,395 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in affiliates, at cost	$	282,917,627

Investments in affiliates, at value	$	272,986,136
Segregated cash for collateral		14,393,395
Interest and dividends receivable		4
Receivable for affiliated investments sold		44,944
Prepaid expenses		1,541

Total Assets		287,426,020

Liabilities:
Cash overdraft		44,908
Payable for capital shares redeemed		173,339
Payable for variation margin on futures contracts		9,519
Manager fees payable		24,422
Administration fees payable		4,685
Custodian fees payable		1,076
Administrative and compliance services fees payable		810
Trustee fees payable		615
Other accrued liabilities		10,974

Total Liabilities		270,348

Net Assets	$	287,155,672

Net Assets Consist of:
Capital	$	310,825,876
Accumulated net investment income/(loss)		3,716,470
Accumulated net realized gains/(losses) from investment transactions		(17,414,514	)
Net unrealized appreciation/(depreciation) on investments		(9,972,160	)

Net Assets	$	287,155,672

Shares of beneficial interest (unlimited number of shares authorized, no par value)		26,602,341
Net Asset Value (offering and redemption price per share)	$	10.79

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	4,109,665
Dividends		1,661

Total Investment Income		4,111,326

Expenses:
Manager fees		297,017
Administration fees		52,729
Custodian fees		1,678
Administrative and compliance services fees		4,168
Trustee fees		14,058
Professional fees		10,340
Shareholder reports		8,603
Recoupment of prior expenses reimbursed by the manager		51
Other expenses		6,192

Total expenses		394,836

Net Investment Income/(Loss)		3,716,490

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(6,544,419	)
Net realized gains distributions from affiliated underlying funds		5,087,086
Net realized gains/(losses) on futures contracts		(15,311,651	)
Change in net unrealized appreciation/depreciation on investments		15,404,491

Net Realized/Unrealized Gains/(Losses) on Investments		(1,364,493	)

Change in Net Assets Resulting From Operations	$	2,351,997

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Pyramis Multi-Strategy Fund (formerly, AZL MVP Franklin Templeton Founding Strategy Plus Fund) (the “Fund”), and 11 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) 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, 2016, 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 $14.3 million as of December 31, 2016. The monthly average notional amount for these contracts was $37.8 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $3,062 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $285,125,788. 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, 2016 were as follows:

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

At December 31, 2016, 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 Pyramis Multi-Strategy Fund (formerly, 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, 2016, 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 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, 2016, 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 Pyramis Multi-Strategy Fund as of December 31, 2016, 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 five-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2016, 19.89% 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, 2016, the Fund declared net long-term capital gain distributions of $4,637,586.

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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

What factors affected the Fund’s performance during the year ended December 31, 2016?

For the year ended December 31, 2016, the AZL^® MVP T. Rowe Price Capital Appreciation Plus Fund (the “Fund”) returned 7.62%. That compared to a 11.96%, 2.65% and a 8.21% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

The 12 months ended December 31, 2016 included strong returns for equities and several political surprises that impacted financial markets. The S&P 500 Index had a poor start to the year, driven by fears of a global economic slowdown, especially in China, and a collapse in oil prices. Stocks recovered in February and rose through late June as investor outlook improved. A brief but intense sell-off followed the U.K.’s unexpected vote in favor of leaving the European Union on June 23, but stocks quickly resumed their upward trajectory on expectations that global central banks would provide additional monetary policy.

After trading mostly flat in the weeks leading up to the November 8 U.S. election, stocks rallied strongly on a surprise presidential victory by Donald Trump. Investors drove share prices higher in anticipation of a more accommodating regulatory environment and fiscal stimulus such as tax cuts and increased infrastructure spending. Most sectors gained ground during the annual period, with energy, telecommunication services and financials leading. Health care and consumer staples were the main laggards.

The equity portion of the Fund strongly outperformed through the first three quarters of the year, driven by holdings in high quality names with durable growth and defensive characteristics. Weak performance in the final quarter, driven by the surprise election results, offset most of those gains. The postelection rally drove investors out of defensive areas of the market and into cyclical and lower-quality areas. The Fund maintained a cautious position in its portfolio holdings given relatively high valuations and a persistent uncertainty regarding the new administration’s policies. We maintained an overweight exposure to health care companies and added to the Fund’s position in consumer staples throughout the year under review.*

Stock selection decisions in the health care and consumer discretionary sectors contributed positively to the Fund’s performance relative to its equity benchmark, the S&P 500 Index. Stock selection in the information technology sector and an overweight position to consumer staples detracted from relative performance, however.*

The Fund’s above-benchmark exposure to high-yield securities within its fixed income holdings added to performance relative to its fixed income benchmark. The portfolio’s short duration securities also helped relative results later in the year as interest rates moved higher.*

The Fund maintained significant exposure to covered call options—this derivative provided downside protection for the portfolio while offering the benefits of owning a stock as long as the stock remains below the option strike price. These benefits included dividends and capital appreciation. The Fund held equity options throughout the period while equity rights were held periodically. Both options and rights were held at the end of the annual period.*

The MVP risk management process, which involves the use of derivatives, worked as intended and largely maintained a neutral equity allocation for most of the year relative to its target. In early 2016, concerns about global growth led to increased volatility, and the MVP reduced the Fund’s equity exposure. Equity markets quickly recovered, however, and the MVP risk management process dragged 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 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 in a combination of Index Strategy Underlying Funds that represent different classes in the Fund’s asset allocation.

Investment Concerns

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

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

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.

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.

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, 2016


				Since
	1			Inception
	Year			(1/10/14)
AZL^® MVP T. Rowe Price Capital Appreciation Plus Fund		7.62	%		7.69	%
S&P 500 Index		11.96	%		9.06	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		2.81	%
Balanced Composite Index		8.21	%		6.60	%


Expense Ratio	Gross
AZL^® MVP T. Rowe Price Capital Appreciation Plus Fund		0.91	%

The above expense ratio is based on the current Fund prospectus dated April 25, 2016, as supplemented October 14, 2016. 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, 2018. Additional information pertaining to the December 31, 2016 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 Bloomberg 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 Bloomberg 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 Bloomberg 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 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 Companies (95.0%):
	15,145,165	AZL Enhanced Bond Index Fund	$	161,598,910
	17,434,629	AZL S&P 500 Index Fund, Class 2		245,130,882
	27,179,714	AZL T. Rowe Price Capital Appreciation Fund		447,921,695

	Total Affiliated Investment Companies (Cost $831,020,962)			854,651,487

	Unaffiliated Investment Company (0.1%):
	934,933	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 0.31%(a)		934,933

	Total Unaffiliated Investment Company (Cost $934,933)			934,933

	Total Investment Securities (Cost $831,955,895)(b) — 95.1%			855,586,420
	Net other assets (liabilities) — 4.9%			44,129,584

	Net Assets — 100.0%		$	899,716,004

Percentages indicated are based on net assets as of December 31, 2016.

(a)	The rate represents the effective yield at December 31, 2016.

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

Cash of $45,038,093 has been segregated to cover margin requirements for the following open contracts as of December 31, 2016:

Statement of Assets and Liabilities

December 31, 2016


Assets:
Investments in non-affiliates, at cost	$	934,933
Investments in affiliates, at cost		831,020,962

Total Investment securities, at cost	$	831,955,895

Investments in non-affiliates, at value	$	934,933
Investments in affiliates, at value		854,651,487

Total Investment securities, at value	$	855,586,420
Cash		3,886
Segregated cash for collateral		45,038,093
Interest and dividends receivable		221
Receivable for capital shares issued		96,894
Prepaid expenses		4,643

Total Assets		900,730,157

Liabilities:
Payable for affiliated investments purchased		778,728
Payable for capital shares redeemed		120,905
Manager fees payable		75,628
Administration fees payable		5,064
Custodian fees payable		1,070
Administrative and compliance services fees payable		2,558
Trustee fees payable		1,943
Other accrued liabilities		28,257

Total Liabilities		1,014,153

Net Assets	$	899,716,004

Net Assets Consist of:
Capital	$	845,900,984
Accumulated net investment income/(loss)		12,492,263
Accumulated net realized gains/(losses) from investment transactions		17,746,412
Net unrealized appreciation/(depreciation) on investments		23,576,345

Net Assets	$	899,716,004

Shares of beneficial interest (unlimited number of shares authorized, no par value)		78,434,420
Net Asset Value (offering and redemption price per share)	$	11.47

Statement of Operations

For the Year Ended December 31, 2016


Investment Income:
Dividends from affiliates	$	5,730,427
Dividends		11,896

Total Investment Income		5,742,323

Expenses:
Manager fees		785,607
Administration fees		56,828
Custodian fees		1,968
Administrative and compliance services fees		12,743
Trustee fees		43,475
Professional fees		34,942
Shareholder reports		20,554
Other expenses		15,372

Total expenses		971,489

Net Investment Income/(Loss)		4,770,834

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(6,270,993	)
Net realized gains distributions from affiliated underlying funds		31,696,004
Net realized gains/(losses) on futures contracts		132,178
Change in net unrealized appreciation/depreciation on investments		28,194,103

Net Realized/Unrealized Gains/(Losses) on Investments		53,751,292

Change in Net Assets Resulting From Operations	$	58,522,126

(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, and follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services - Investment Companies. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP T. Rowe Price Capital Appreciation Plus Fund (formerly, AZL MVP T. Rowe Price Capital Appreciation Fund) (the “Fund”), and 11 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) 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, 2016, 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 $44.9 million as of December 31, 2016. The monthly average notional amount for these contracts was $40.2 million for the year ended December 31, 2016. 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, 2016:

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, 2016:

For the year ended December 31, 2016, 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, 2016, $7,757 was paid from the Fund relating to these fees and expenses.

For the year ended December 31, 2016, 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, 2016 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2016, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities for federal income tax purposes at December 31, 2016 is $832,692,005. 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, 2016 were as follows:

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

(a) Total distributions paid may differ from the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes.

At December 31, 2016, 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 T. Rowe Price Capital Appreciation Plus Fund (formerly, 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, 2016, 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 three-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

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, 2016, 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 Plus Fund as of December 31, 2016, 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 three-year period then ended, in conformity with U.S. generally accepted accounting principles.

For the year ended December 31, 2016, 19.53% 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, 2016, the Fund declared net long-term capital gain distributions of $4,719,452.

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 25, 2016, 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 69 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.	35	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 59 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	35	Luther College
Roger A. Gelfenbien, Age 73 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 10/99	Retired; Partner of Accenture 1983 to 1999	35	Virtus Funds (8 Funds)
Claire R. Leonardi, Age 61 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	35	reSet Social Enterprise Investment Fund; Connecticut Technology Council; and Connecticut Bioscience Innovation Fund
Dickson W. Lewis, Age 68 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	35	None
Arthur C. Reeds III, Age 72 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	35	Connecticut Water Service, Inc.
Interested Trustees(3)
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
Robert DeChellis, Age 49* 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 3/08	President and CEO, Allianz Life Financial Services, LLC, 2007 to present	35	None
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 6/11	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present	35	None


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
Brian Muench, Age 46 5701 Golden Hills Drive Minneapolis, MN 55416	President	Since 11/10	President, Allianz Investment Management LLC, November 2010 to present; Vice President, Allianz Life, April 2011 to present.
Michael Radmer, Age 71 Dorsey & Whitney LLP, Suite 1500 50 South Sixth Street Minneapolis, MN 55402-1498	Secretary	Since 02/02	Senior Counsel (previously, Partner), Dorsey and Whitney LLP since 1976.
Bashir C. Asad, Age 54 Citi Fund Services Ohio, Inc. 4400 Easton Commons, Suite 200 Columbus, OH 43219	Treasurer, Principal Accounting Officer and Principal Financial Officer	Since 06/16	Senior Vice President, Citi Fund Services Ohio, Inc.
Chris R. Pheiffer, Age 48 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti- Money Laundering Compliance Officer	Since 02/14	Chief Compliance Officer of the VIP Trust and the FOF Trust, February 2014 to present; Deputy Chief Compliance Officer of the VIP Trust and the FOF Trust and Compliance Director, Allianz Life, February 2007 to February 2014.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

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.


	Beginning Account Value 7/1/16			Ending Account Value 12/31/16			Expenses Paid During Period 7/1/16 - 12/31/16*			Annualized Expense Ratio During Period 7/1/16 - 12/31/16
AZL Balanced Index Strategy Fund		$	1,000.00		$	1,027.60		$	0.41		0.08	%


	Beginning Account Value 7/1/16			Ending Account Value 12/31/16			Expenses Paid During Period 7/1/16 - 12/31/16*			Annualized Expense Ratio During Period 7/1/16 - 12/31/16
AZL Balanced Index Strategy Fund		$	1,000.00		$	1,024.73		$	0.41		0.08	%


	AZL Balanced Index Strategy Fund
	For the Year Ended December 31, 2016				For the Year Ended December 31, 2015
Change in Net Assets:
Operations:
Net investment income/(loss)		$	8,019,060			$	9,500,793
Net realized gains/(losses) on investment transactions			21,738,224				9,924,533
Change in unrealized appreciation/depreciation on investments			(1,251,752	)			(19,559,324	)

Change in net assets resulting from operations			28,505,532				(133,998	)

Distributions to Shareholders:
From net investment income			(11,827,600	)			(4,617,163	)
From net realized gains			(7,976,603	)			(8,184,855	)

Change in net assets resulting from distributions to shareholders			(19,804,203	)			(12,802,018	)

Capital Transactions:
Proceeds from shares issued			30,164,569				46,025,398
Proceeds from dividends reinvested			19,804,203				12,802,018
Value of shares redeemed			(52,905,698	)			(52,006,249	)

Change in net assets resulting from capital transactions			(2,936,926	)			6,821,167

Change in net assets			5,764,403				(6,114,849	)
Net Assets:
Beginning of period			432,535,725				438,650,574

End of period		$	438,300,128			$	432,535,725

Accumulated net investment income/(loss)		$	9,832,388			$	11,827,596

Share Transactions:
Shares issued			1,926,476				2,880,212
Dividends reinvested			1,277,690				837,828
Shares redeemed			(3,384,739	)			(3,264,041	)

Change in shares			(180,573	)			453,999


	Year Ended December 31,
	2016				2015				2014				2013				2012
Net Asset Value, Beginning of Period		$	15.44			$	15.91			$	15.40			$	13.91			$	12.84

Investment Activities:
Net Investment Income/(Loss)			0.30				0.34				0.16				0.15				0.13
Net Realized and Unrealized Gains/(Losses) on Investments			0.73				(0.34	)			0.78				1.63				1.19

Total from Investment Activities			1.03				—	(a)			0.94				1.78				1.32

Dividends to Shareholders From:
Net Investment Income			(0.43	)			(0.17	)			(0.23	)			(0.25	)			(0.19	)
Net Realized Gains			(0.29	)			(0.30	)			(0.20	)			(0.04	)			(0.06	)

Total Dividends			(0.72	)			(0.47	)			(0.43	)			(0.29	)			(0.25	)

Net Asset Value, End of Period		$	15.75			$	15.44			$	15.91			$	15.40			$	13.91

Total Return(b)			6.75	%			0.01	%			6.11	%			12.93	%			10.29	%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	438,300			$	432,536			$	438,651			$	413,982			$	354,111
Net Investment Income/(Loss)			1.83	%			2.14	%			1.02	%			1.10	%			1.08	%
Expenses Before Reductions*(c)			0.08	%			0.08	%			0.08	%			0.08	%			0.09	%
Expenses Net of Reductions*			0.08	%			0.08	%			0.08	%			0.08	%			0.09	%
Portfolio Turnover Rate			12	%			11	%			9	%			8	%			7	%


	Fair Value 12/31/15			Purchases at Cost			Proceeds from Sales				Fair Value 12/31/16			Dividend Income
AZL Enhanced Bond Index Fund		$	217,300,256		$	22,260,513		$	(23,623,435	)		$	213,693,435		$	4,339,676
AZL International Index Fund, Class 2			53,818,168			6,783,103			(4,054,259	)			55,595,556			1,427,574
AZL Mid Cap Index Fund, Class 2			32,048,328			6,444,534			(5,051,767	)			34,709,583			338,224
AZL S&P 500 Index Fund, Class 2			112,168,493			18,504,307			(15,476,927	)			114,983,267			2,068,710
AZL Small Cap Stock Index Fund, Class 2			16,961,754			3,688,647			(2,711,683	)			19,410,475			190,601

		$	432,296,999		$	57,681,104		$	(50,918,071	)		$	438,392,316		$	8,364,785


Investments	Percent of Net Assets
Fixed Income		48.8	%
Domestic Equities		38.5
International Equities		12.7

Total Investment Securities		100.0
Net other assets (liabilities)		—	^

Net Assets		100.0	%


	Annual Rate			Annual Expense Limit
AZL Balanced Index Strategy Fund		0.05	%		0.20	%


Investment Securities:	Level 1			Level 2			Total

Affiliated Investment Companies		$	438,392,316		$	—		$	438,392,316

Total Investment Securities		$	438,392,316		$	—		$	438,392,316


	Purchases			Sales
AZL Balanced Index Strategy Fund		$	57,681,104		$	50,918,071


Unrealized appreciation	$	72,517,144
Unrealized (depreciation)		(1,952,372	)

Net unrealized appreciation/(depreciation)	$	70,564,772


	Ordinary Income			Net Long-Term Capital Gains			Total Distributions(a)
AZL Balanced Index Strategy Fund		$	11,827,600		$	7,976,603		$	19,804,203


	Undistributed Ordinary Income			Undistributed Long-Term Capital Gains			Accumulated Capital and Other Losses			Unrealized Appreciation/ Depreciation(a)			Total Accumulated Earnings/ (Deficit)
AZL Balanced Index Strategy Fund		$	9,834,478		$	20,729,956		$	—		$	70,564,772		$	101,129,206


The Allianz VIP Fund of Funds are distributed by Allianz Life Financial Services, LLC.
These Funds are not FDIC Insured.		ANNRPT1216 2/17


	AZL DFA Multi-Strategy Fund
	For the Year Ended December 31, 2016				For the Year Ended December 31, 2015
Change in Net Assets:
Operations:
Net investment income/(loss)		$	8,978,919			$	(990,621	)
Net realized gains/(losses) on investment transactions			(3,461,098	)			427,175,530
Change in unrealized appreciation/depreciation on investments			99,815,406				(431,648,756	)

Change in net assets resulting from operations			105,333,227				(5,463,847	)

Distributions to Shareholders:
From net investment income			—				(16,616,509	)
From net realized gains			(423,638,534	)			(18,692,510	)

Change in net assets resulting from distributions to shareholders			(423,638,534	)			(35,309,019	)

Capital Transactions:
Proceeds from shares issued			15,533,641				67,727,097
Proceeds from dividends reinvested			423,638,534				35,309,019
Value of shares redeemed			(184,491,032	)			(244,017,781	)

Change in net assets resulting from capital transactions			254,681,143				(140,981,665	)

Change in net assets			(63,624,164	)			(181,754,531	)
Net Assets:
Beginning of period			1,257,793,514				1,439,548,045

End of period		$	1,194,169,350			$	1,257,793,514

Accumulated net investment income/(loss)		$	9,184,122			$	—

Share Transactions:
Shares issued			995,074				3,586,937
Dividends reinvested			34,696,030				1,961,612
Shares redeemed			(11,189,344	)			(12,894,522	)

Change in shares			24,501,760				(7,345,973	)


	Annual Rate			Annual Expense Limit
AZL DFA Multi-Strategy Fund		0.05	%		0.20	%


Unrealized appreciation	$	48,404,583
Unrealized (depreciation)		(18,276,817	)

Net unrealized appreciation/(depreciation)	$	30,127,766


	Short Term Amount			Long Term Amount			Total Amount
AZL DFA Multi-Strategy Fund		$	2,345,371		$	1,077,741		$	3,423,112


Description	Type		Expiration Date		Number of Contracts		Notional Value		Unrealized Appreciation/ (Depreciation)
S&P 500 Index E-Mini March Futures		Long		3/17/17		69	$	7,714,890	$	14,306
U.S. Treasury 10-Year Note March Futures		Long		3/22/17		63		7,829,719		(45,767	)

Total									$	(31,461	)


	AZL MVP Balanced Index Strategy Fund
	For the Year Ended December 31, 2016				For the Year Ended December 31, 2015
Change In Net Assets:
Operations:
Net investment income/(loss)		$	4,764,749			$	4,931,152
Net realized gains/(losses) on investment transactions			11,249,453				3,095,730
Change in unrealized appreciation/depreciation on investments			2,043,805				(9,371,354	)

Change in net assets resulting from operations			18,058,007				(1,344,472	)

Distributions to Shareholders:
From net investment income			(6,185,785	)			(1,897,495	)
From net realized gains			(2,024,582	)			(2,597,183	)

Change in net assets resulting from distributions to shareholders			(8,210,367	)			(4,494,678	)

Capital Transactions:
Proceeds from shares issued			75,326,220				62,074,359
Proceeds from dividends reinvested			8,210,367				4,494,678
Value of shares redeemed			(35,768,163	)			(14,219,428	)

Change in net assets resulting from capital transactions			47,768,424				52,349,609

Change in net assets			57,616,064				46,510,459
Net Assets:
Beginning of period			255,128,902				208,618,443

End of period		$	312,744,966			$	255,128,902

Accumulated net investment income/(loss)		$	5,886,408			$	6,185,767

Share Transactions:
Shares issued			6,087,629				4,896,361
Dividends reinvested			654,213				368,416
Shares redeemed			(2,934,307	)			(1,131,967	)

Change in shares			3,807,535				4,132,810


	Year Ended December 31,																January 10, 2012 to December 31, 2012 (a)
	2016				2015				2014				2013				January 10, 2012 to December 31, 2012 (a)
Net Asset Value, Beginning of Period		$	12.30			$	12.56			$	12.03			$	10.69			$	10.00

Investment Activities:
Net Investment Income/(Loss)			0.17				0.22				0.08				0.10				0.08
Net Realized and Unrealized Gains/(Losses) on Investments			0.64				(0.25	)			0.65				1 .24				0.77

Total from Investment Activities			0.81				(0.03	)			0.73				1 .34				0.85

Dividends to Shareholders From:
Net Investment Income			(0.28	)			(0.10	)			(0.12	)			—				(0.14	)
Net Realized Gains			(0.09	)			(0.13	)			(0.08	)			—	(b)			(0.02	)

Total Dividends			(0.37	)			(0.23	)			(0.20	)			—	(b)			(0.16	)

Net Asset Value, End of Period		$	12.74			$	12.30			$	12.56			$	12.03			$	10.69

Total Return(c)			6 .61	%			(0.22	)%			6 .09	%			12 .56	%			8.50	%(d)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	312,745			$	255,129			$	208,618			$	155,547			$	73,830
Net Investment Income/(Loss)(e)			1 .69	%			2 .08	%			0.97	%			1 .09	%			1 .41	%
Expenses Before Reductions*(e)(f)			0.14	%			0.14	%			0.15	%			0.17	%			0.39	%
Expenses Net of Reductions*(e)			0.14	%			0.14	%			0.15	%			0.17	%			0.21	%
Portfolio Turnover Rate			11	%			5	%			6	%			4	%			11	%(d)


Primary Risk Exposure	Location of Gains/(Losses) on Derivatives Recognized in Income	Realized Gains/(Losses) on Derivatives Recognized			Change in Net Unrealized Appreciation/ Depreciation on Derivatives Recognized

Equity Risk Exposure

Equity Contracts	Net Realized gains/(losses) on futures contracts/Change in unrealized appreciation/depreciation on investments	$	502,687			$10,327

Interest Rate Risk Exposure

Interest Rate Contracts			(5,694	)		(17,267)


	Annual Rate			Annual Expense Limit
AZL MVP Balanced Index Strategy Fund		0.10	%		0.20	%


Unrealized appreciation	$	15,686,539
Unrealized (depreciation)		(6,664,628	)

Net unrealized appreciation/(depreciation)	$	9,021,911


Security Description	Proceeds Received				Fair Value				Unrealized Appreciation/ Deprecation
Bank of Montreal		$	(493,793	)		$	(552,517	)		$	(58,724	)
Ecolab, Inc.			(552,580	)			(550,465	)			2,115
LafargeHolcim, Ltd., Registered Shares			(238,257	)			(253,745	)			(15,488	)
Procter & Gamble Co. (The)			(599,100	)			(567,036	)			32,064
ProLogis, Inc.			(787,708	)			(835,032	)			(47,324	)
Royal Bank of Canada			(621,331	)			(648,781	)			(27,450	)

		$	(3,292,769	)		$	(3,407,576	)		$	(114,807	)


Description	Counterparty	Put/ Call	Strike Price			Expiration Date		Contracts		Fair Value
Apple, Inc.	UBS Warburg	Call		130.00	USD		9/15/17		13,425	$	(45,713	)
Euro Stoxx 50 Index	Morgan Stanley	Call		3450.00	EUR		3/17/17		150		(5,188	)
Ibovespa Brasil Sao Paulo Index	Bank of America	Call		64946.76	BRL		4/12/17		76		(37,467	)
Johnson & Johnson	Barclays Bank	Call		110.00	USD		1/20/17		10,152		(57,405	)
Qualcomm, Inc.	Deutsche Bank	Call		70.00	USD		5/19/17		12,183		(25,946	)
Russell 2000 Index	Barclays Bank	Call		1400.00	USD		1/20/17		1,140		(6,007	)
S&P 500 Index	BNP Paribas	Call		2265.00	USD		1/20/17		1,270		(14,988	)
S&P 500 Index	JPMorgan Chase	Call		2275.00	USD		2/17/17		759		(15,304	)
S&P 500 Index	Morgan Stanley	Call		2290.00	USD		3/17/17		761		(19,467	)
Tokyo Stock Exchange Price Index	Citigroup	Call		1650.00	JPY		2/10/17		88,014		(1,618	)
Apple, Inc.	UBS Warburg	Put		100.00	USD		9/15/17		13,425		(49,573	)
Euro Stoxx 50 Index	Citigroup Global Markets	Put		2350.00	EUR		6/16/17		256		(4,742	)
Euro Stoxx 50 Index	Deutsche Bank	Put		2586.07	EUR		9/21/18		106		(19,555	)
Ibovespa Brasil Sao Paulo Index	Bank of America	Put		50300.45	BRL		4/12/17		76		(8,889	)
Qualcomm, Inc.	Deutsche Bank	Put		40.00	USD		5/19/17		12,183		(1,573	)
S&P 500 Index	Citigroup	Put		2195.00	USD		2/17/17		710		(18,872	)

Total										$	(332,307	)


Type of Contract	Counterparty		Delivery Date		Contract Amount (Local Currency)		Contract Value		Value		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
Australian Dollar		Deutsche Bank		1/5/17		530,000	$	399,101	$	382,343	$	16,758
Australian Dollar		Citigroup Global Markets		5/10/17		1,315,000		1,012,938		945,763		67,175
Australian Dollar		Goldman Sachs		5/10/17		1,296,000		997,881		932,098		65,783
British Pound		UBS Warburg		1/13/17		1,159,000		1,448,634		1,428,625		20,009
British Pound		Deutsche Bank		2/9/17		185,000		230,974		228,188		2,786
Emirati Dirham		BNP Paribas		1/19/17		2,788,058		753,000		759,166		(6,166	)
Emirati Dirham		Goldman Sachs		1/19/17		2,790,242		753,000		759,761		(6,761	)
Emirati Dirham		BNP Paribas		1/25/17		2,766,290		747,000		753,231		(6,231	)
European Euro		Credit Suisse First Boston		1/6/17		695,000		742,072		731,723		10,349
European Euro		Deutsche Bank		1/26/17		561,000		600,663		591,277		9,386
European Euro		Morgan Stanley		1/26/17		491,000		529,362		517,499		11,863
European Euro		Morgan Stanley		2/2/17		874,000		942,609		921,486		21,123
European Euro		UBS Warburg		2/24/17		578,000		605,363		609,979		(4,616	)
European Euro		Deutsche Bank		3/9/17		580,000		606,402		612,506		(6,104	)
Japanese Yen		BNP Paribas		1/12/17		123,847,200		1,200,000		1,060,566		139,434
Japanese Yen		Deutsche Bank		1/12/17		113,284,025		1,025,000		970,108		54,892
Japanese Yen		Goldman Sachs		1/17/17		950,000,000		9,176,749		8,137,806		1,038,943
Japanese Yen		UBS Warburg		1/30/17		480,000,000		4,597,745		4,114,986		482,759
Japanese Yen		UBS Warburg		2/2/17		63,539,000		557,883		544,773		13,110
Japanese Yen		BNP Paribas		2/13/17		240,000,000		2,332,577		2,058,548		274,029
Japanese Yen		HSBC Bank		2/13/17		3,510,006		32,399		30,106		2,293
Japanese Yen		UBS Warburg		2/13/17		250,000,000		2,433,801		2,144,321		289,480
Japanese Yen		Goldman Sachs		2/16/17		112,054,634		1,027,000		961,230		65,770
Japanese Yen		Goldman Sachs		2/17/17		121,460,730		1,042,000		1,041,956		44
Japanese Yen		UBS Warburg		2/24/17		73,046,230		620,000		626,790		(6,790	)
Japanese Yen		Morgan Stanley		2/27/17		510,000,000		4,682,508		4,376,656		305,852
Japanese Yen		Barclays Bank		3/2/17		116,243,049		1,027,000		997,691		29,309
Japanese Yen		UBS Warburg		3/2/17		117,059,514		1,027,000		1,004,698		22,302
Japanese Yen		Barclays Bank		3/3/17		116,295,584		1,028,000		998,199		29,801
Japanese Yen		JPMorgan Chase		3/3/17		116,580,812		1,029,000		1,000,647		28,353
Japanese Yen		Deutsche Bank		3/9/17		73,399,248		624,000		630,224		(6,224	)
Japanese Yen		BNP Paribas		3/10/17		480,000,000		4,753,369		4,121,637		631,732
Japanese Yen		JPMorgan Chase		3/21/17		520,000,000		4,575,330		4,467,928		107,402
Japanese Yen		Credit Suisse First Boston		4/7/17		116,412,660		1,030,000		1,001,179		28,821
Japanese Yen		Goldman Sachs		4/7/17		117,520,597		1,031,000		1,010,708		20,292
Japanese Yen		Credit Suisse First Boston		6/12/17		520,000,000		4,609,888		4,487,634		122,254
New Zealand Dollar		UBS Warburg		5/4/17		1,421,000		1,040,740		983,053		57,687
New Zealand Dollar		JPMorgan Chase		5/10/17		1,430,000		1,045,674		989,089		56,585
Taiwanese Dollar		Citibank		1/9/17		65,071,070		1,943,000		2,020,177		(77,177	)
Taiwanese Dollar		Goldman Sachs		1/9/17		65,604,850		1,945,000		2,036,748		(91,748	)
Taiwanese Dollar		JPMorgan Chase		1/9/17		64,779,873		1,943,000		2,011,136		(68,136	)
Taiwanese Dollar		Credit Suisse First Boston		1/11/17		64,579,900		1,925,000		2,005,127		(80,127	)
Taiwanese Dollar		Deutsche Bank		2/16/17		24,630,540		737,000		766,105		(29,105	)

							$	70,410,662	$	66,773,471	$	3,637,191


Purchase/Sale	Counterparty	Amount Purchased	Amount Sold		Contract Value			Value			Net Unrealized Appreciation/ (Depreciation)
European Euro/Japanese Yen	HSBC Bank	668,000 EUR		83,094,190 JPY		$	762,378		$	754,282		$	(8,096	)
Japanese Yen/European Euro	HSBC Bank	86,604,196 JPY		668,000 EUR			764,503			802,705			38,202

						$	1,526,881		$	1,556,987		$	30,106


Underlying Instrument	Clearing Agent	Expiration Date	Implied Credit Spread at December 31, 2016 (%)(d)		Notional Amount ($)(e)		Fixed Rate (%)		Value ($)		Premiums Paid/ (Received) ($)		Unrealized Appreciation/ (Depreciation) ($)
CDX North America High Yield Index Swap Agreement with JPMorgan Chase Bank, N.A., Series 27	JPMorgan Chase	12/20/21		1.06		138,759		5.00		8,592		5,557		3,035
CDX North America Investment Grade Index Swap Agreement with JPMorgan Chase Bank, N.A., Series 27	JPMorgan Chase	12/20/21		0.67		3,533,328		1.00		53,493		41,505		11,988
iTraxx Crossover Swap Agreement with JPMorgan Chase Bank, N.A., Series 26	JPMorgan Chase	12/20/21		2.89		2,056,328		5.00		205,680		167,081		38,599

										267,765		214,143		53,622


Pay/Receive Fixed Rate	Fixed Rate (%)	Expiration Date		Counterparty		Notional Amount (Local)			Value ($)			Unrealized Appreciation/ (Depreciation) ($)
Pay	1.230		3/15/17		Bank of America		798,500	JPY		(22,493	)		(22,493	)
Pay	1.963		3/15/18		Bank of America		131,550,000	JPY		30,535			30,535
Pay	1.838		3/15/18		Bank of America		86,950,000	JPY		24,631			24,631
Pay	2.012		10/15/18		Bank of America		273,450,000	JPY		289,478			289,478

										322,151			322,151


Pay/Receive Fixed Rate	Floating Rate Index	Fixed Rate (%)	Expiration Date		Clearing Agent		Notional Amount (Local)			Upfront Premiums Paid/ (Received) ($)		Value ($)			Unrealized Appreciation/ (Depreciation) ($)
Pay	6-Month Sterling LIBOR BBA	0.568		7/2/20		JPMorgan Chase		2,189,680	GBP		34		14,833			14,799
Pay	6-Month Sterling LIBOR BBA	0.563		7/2/20		JPMorgan Chase		2,188,934	GBP		34		15,096			15,062
Pay	6-Month Sterling LIBOR BBA	0.584		7/2/20		JPMorgan Chase		2,189,624	GBP		35		13,976			13,941
Pay	6-Month Sterling LIBOR BBA	0.537		7/2/20		JPMorgan Chase		2,189,747	GBP		—		16,494			16,494
Receive	3-Month U.S. Dollar LIBOR BBA	0.989		7/5/20		JPMorgan Chase		2,860,162	USD		—		(62,541	)		(62,541	)
Receive	3-Month U.S. Dollar LIBOR BBA	1.015		7/5/20		JPMorgan Chase		2,860,266	USD		—		(61,107	)		(61,107	)
Receive	3-Month U.S. Dollar LIBOR BBA	1.058		7/5/20		JPMorgan Chase		2,910,347	USD		34		(59,760	)		(59,794	)
Receive	3-Month U.S. Dollar LIBOR BBA	1.018		7/5/20		JPMorgan Chase		2,860,125	USD		34		(60,966	)		(61,000	)
Pay	6-Month Sterling LIBOR BBA	0.638		7/16/20		JPMorgan Chase		2,221,848	GBP		—		11,688			11,688
Pay	6-Month Sterling LIBOR BBA	0.608		7/16/20		JPMorgan Chase		2,221,876	GBP		35		13,291			13,256
Pay	6-Month Sterling LIBOR BBA	0.604		7/16/20		JPMorgan Chase		2,221,731	GBP		—		13,508			13,508
Receive	3-Month U.S. Dollar LIBOR BBA	1.219		7/19/20		JPMorgan Chase		2,933,552	USD		—		(51,770	)		(51,770	)
Receive	3-Month U.S. Dollar LIBOR BBA	1.183		7/19/20		JPMorgan Chase		2,933,279	USD		—		(53,803	)		(53,803	)
Receive	3-Month U.S. Dollar LIBOR BBA	1.208		7/19/20		JPMorgan Chase		2,933,432	USD		—		(52,419	)		(52,419	)
Pay	3-Month U.S. Dollar LIBOR BBA	0.016		4/9/21		JPMorgan Chase		582,500	EUR		8		(756	)		(764	)
Pay	6-Month Euro Interbank Offer Rate (EURIBOR)	0.373		8/15/26		JPMorgan Chase		1,804,831	EUR		32		41,821			41,790
Pay	6-Month Euro Interbank Offer Rate (EURIBOR)	3.027		4/19/27		JPMorgan Chase		7,110,414	USD		—		(72,140	)		(72,140	)

													(334,554	)		(334,800	)


	AZL MVP BlackRock Global Strategy Plus Fund
	For the Year Ended December 31, 2016				For the Year Ended December 31, 2015
Change In Net Assets:
Operations:
Net investment income/(loss)		$	6,962,255			$	5,591,952
Net realized gains/(losses) on investment transactions			(4,625,667	)			14,176,104
Change in unrealized appreciation/depreciation on investments			24,523,262				(33,614,554	)

Change in net assets resulting from operations			26,859,850				(13,846,498	)

Distributions to Shareholders:
From net investment income			(21,857,180	)			(9,611,041	)
From net realized gains			(29,417,164	)			(13,360,270	)

Change in net assets resulting from distributions to shareholders			(51,274,344	)			(22,971,311	)

Capital Transactions:
Proceeds from shares issued			18,938,747				54,905,887
Proceeds from dividends reinvested			51,274,343				22,971,311
Value of shares redeemed			(61,642,093	)			(29,131,353	)

Change in net assets resulting from capital transactions			8,570,997				48,745,845

Change in net assets			(15,843,497	)			11,928,036
Net Assets:
Beginning of period			830,362,850				818,434,814

End of period		$	814,519,353			$	830,362,850

Accumulated net investment income/(loss)		$	(7,218,620	)		$	10,684,714

Share Transactions:
Shares issued			1,644,044				4,466,783
Dividends reinvested			4,565,836				1,975,177
Shares redeemed			(5,372,625	)			(2,376,490	)

Change in shares			837,255				4,065,470


	Year Ended December 31, 2016				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		$	11.69			$	12.22			$	12.02			$	10.54			$	10.00

Investment Activities:
Net Investment Income/(Loss)			0.10				0.07				0.10				0.05				0.11
Net Realized and Unrealized Gains/(Losses) on Investments			0.27				(0.26	)			0.16				1.43				0.56

Total from Investment Activities			0.37				(0.19	)			0.26				1.48				0.67

Dividends to Shareholders From:
Net Investment Income			(0.31	)			(0.14	)			—	%(b)			—				(0.12	)
Net Realized Gains			(0.42	)			(0.20	)			(0.06	)			—	%(b)			(0.01	)

Total Dividends			(0.73	)			(0.34	)			(0.06	)			—	%(b)			(0.13	)

Net Asset Value, End of Period		$	11.33			$	11.69			$	12.22			$	12.02			$	10.54

Total Return(c)			3.34	%			(1.57	)%			2.18	%			14.08	%			6.71	%(d)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	814,519			$	830,363			$	818,435			$	681,691			$	326,544
Net Investment Income/(Loss)(e)			0.85	%			0.67	%			0.96	%			0.55	%			2.01	%
Expenses Before Reductions(e)(f)			1.11	%			1.18	%			1.18	%			1.21	%			2.44	%
Expenses Net of Reductions(e)			1.11	%			1.18	%			1.18	%			1.21	%			2.37	%
Expenses Net of Reductions, Excluding Expenses Paid Indirectly(e)(g)			1.11	%			1.18	%			1.18	%			1.21	%			2.37	%
Portfolio Turnover Rate(h)			91	%			64	%			61	%			40	%			119	%(d)


	Overnight and Continuous			Less than 30 Days			Between 30 & 90 Days			Greater than 90 Days			Total

Securities Lending Transactions
Common Stocks		$	12,839,117		$	—		$	—		$	—		$	12,839,117
Corporate Debt Securities			4,963,544			—			—			—			4,963,544

Total Securities Lending Transactions			17,802,661			—			—			—			17,802,661

Total Borrowings		$	17,802,661		$	—		$	—		$	—		$	17,802,661

Gross Amount of Recognized Liabilities for Securities Lending Transactions														$	17,802,661


	Purchases				Sales			Realized (Gain/Loss)
AZL MVP BlackRock Global Strategy Plus Fund		$	(797,100	)		$	273,400		$	24,029


	Number of Contracts			Notional Amount(a)				Cost

Options outstanding at December 31, 2015		3,440,218			$	2,993,098			$	6,078,719
Options purchased		3,736,809				609,711				10,829,342
Options exercised		(110,832	)			—				(397,930	)
Options expired		(855,172	)			(2,158,595	)			(4,204,115	)
Options closed		(5,203,502	)			(296,831	)			(10,347,068	)

Options outstanding at December 31, 2016		1,007,521			$	1,147,383			$	1,958,948