Allianz Variable Insurance Products Fund of Funds Trust Annual Report

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, 2017?

For the year ended December 31, 2017, the AZL^® Balanced Index Strategy Fund (the “Fund”) had a total return of 11.50%. That compared to a 21.83%, 3.54% and 12.42% 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.*

Global economic expansion led major stock indexes to new all-time highs during the 12-month period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low-volatility environment. Mid- and small-cap stocks also performed well during the period: The S&P MidCap 400 Index generated a 16.24% return and the SmallCap 600 Index returned 13.23%. Growth stocks were also heavily favored during the year and significantly outperformed value stocks.

International developed markets, as measured by the MSCI EAFE Index, fared even better than U.S. equities, posting a 25.62% return for the year. Emerging markets equities, as measured by the MSCI Emerging Markets Equity Index⁵, posted a return of 37.75%. The strong return ended years of underperformance versus domestic and international developed markets.

The U.S. bond market was generally positive, as the market rewarded investors who took on interest rate and spread risk. The Bloomberg Barclays U.S. Aggregate Bond Index gained 3.54%. Bond investors generally tolerated risk in their quest for more attractive yields. Credit spreads on corporate bonds ended the year tighter than when the year began, with high-yield bond spreads tightening markedly. Meanwhile, the yield curve flattened sharply, as three rate hikes by the Federal Reserve sent short-term yields higher, while investor demand for attractive yield pushed long-term yields lower.

The Fund, which invests in both U.S. and international markets, underperformed its composite benchmark in 2017. The underperformance was primarily driven by the Fund’s strategic allocation to U.S. mid- and small-cap equities during a period when U.S. large-cap equities outperformed their smaller counterparts. The Fund’s overweight allocation to international equities, on the other hand, supported relative returns as they outperformed their U.S. counterparts.*

Within the Fund’s fixed income holdings, an overweight allocation to 30-year bonds added to relative results. That benefit, however, was more than offset by an underweight allocation to corporate bonds, which outperformed. As a result, the Fund modestly lagged its fixed income benchmark during the period.*

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, 2017.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

The Standard & Poor’s SmallCap 600 Index (“S&P 600”) covers approximately 3% of the domestic equities market. Measuring the small-cap segment of the market that is typically renowned for poor trading liquidity and financial instability, the index is designed to be an efficient portfolio of companies that meet specific inclusion criteria to ensure that they are investable and financially viable.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

Investors cannot invest directly in an index.

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, 2017


	1 Year			3 Year			5 Year			Since Inception (7/10/09)
AZL^®Balanced Index Strategy Fund		11.50	%		5.98	%		7.36	%		8.74	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		16.44	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		3.74	%
Balanced Composite Index		12.42	%		6.84	%		8.87	%		10.19	%

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 May 1, 2017. 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, 2019. Additional information pertaining to the December 31, 2017 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, as shown in the current prospectus, 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 expense 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 indexes 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%):
	20,603,877	AZL Enhanced Bond Index Fund	$	224,376,218
	3,257,089	AZL International Index Fund, Class 2		56,347,640
	1,435,238	AZL Mid Cap Index Fund, Class 2		33,670,676
	7,202,763	AZL S&P 500 Index Fund, Class 2		116,180,562
	1,209,750	AZL Small Cap Stock Index Fund, Class 2		18,001,081

	Total Affiliated Investment Companies (Cost $347,535,745)			448,576,177

	Total Investment Securities (Cost $347,535,745)(a) — 100.0%			448,576,177
	Net other assets (liabilities) — 0.0%			(194,687	)

	Net Assets — 100.0%		$	448,381,490

Percentages indicated are based on net assets as of December 31, 2017.

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

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	347,535,745

Investments in affiliates, at value	$	448,576,177
Interest and dividends receivable		76
Receivable for affiliated investments sold		37,505
Prepaid expenses		2,588

Total Assets		448,616,346

Liabilities:
Cash overdraft		37,505
Payable for capital shares redeemed		159,621
Manager fees payable		18,980
Administration fees payable		3,595
Custodian fees payable		338
Administrative and compliance services fees payable		1,036
Transfer agent fees payable		692
Trustee fees payable		667
Other accrued liabilities		12,422

Total Liabilities		234,856

Net Assets	$	448,381,490

Net Assets Consist of:
Capital	$	329,596,530
Accumulated net investment income/(loss)		3,957,705
Accumulated net realized gains/(losses) from investment transactions		13,786,823
Net unrealized appreciation/(depreciation) on investments		101,040,432

Net Assets	$	448,381,490

Shares of beneficial interest (unlimited number of shares authorized, no par value)		27,442,299
Net Asset Value (offering and redemption price per share)	$	16.34

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	3,794,852
Interest		89
Dividends		305
Other income		892

Total Investment Income		3,796,138

Expenses:
Manager fees		221,184
Administration fees		49,261
Custodian fees		1,994
Administrative and compliance services fees		5,318
Transfer agent fees		4,898
Trustee fees		18,934
Professional fees		19,247
Shareholder reports		10,783
Other expenses		5,499

Total expenses		337,118

Net Investment Income/(Loss)		3,459,020

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		7,671,621
Net realized gains distributions from affiliated underlying funds		8,566,271
Change in net unrealized appreciation/depreciation on affiliated transactions		28,523,288

Net Realized/Unrealized Gains/(Losses) on Investments		44,761,180

Change in Net Assets Resulting From Operations	$	48,220,200

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 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., miscellaneous adjustments on return of capital), 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, 2019. Expenses incurred for investment advisory and management services are reflected on the Statement of Operations as “Manager fees.”

For the year ended December 31, 2017, the annual rate paid 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, 2017, 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 the year ended December 31, 2017, there were no voluntary waivers.

The Manager or an affiliate of the Manager serves as the investment adviser of certain underlying funds in which the Fund invests. At December 31, 2017, these underlying funds are noted as Affiliated Investment Companies in the Fund’s Schedule of Portfolio Investments. Additional information, including financial statements, about these Funds is available at www.allianzlife.com. The Manager or an affiliate of the Manager is paid a separate fee from the underlying funds for such services. A summary of the Fund’s investments in affiliated investment companies for the year ended December 31, 2017 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.”

FIS Investor Services LLC (“FIS”) 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. ALFS receives an annual 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, 2017, $4,541 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, 2017, actual Trustee compensation was $1,116,333 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. 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, 2017, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value. There were no significant transfers between Levels 1 and 2 as of December 31, 2017, based on levels assigned to securities on December 31, 2016.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, 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.

Fund of Funds Risk: The Fund, as a shareholder of the underlying funds, indirectly bears its proportionate share of any investment management fees and other expenses of the underlying funds. Further due to the fees and expenses paid by the Fund, as well as small variations in the Fund’s actual allocations to the underlying funds and any futures and cash held in the Fund’s portfolio, the performance and income distributions of the Fund will not be the same as the performance and income distributions of the underlying funds.

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, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $349,174,566. 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, 2017 were as follows:

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

At December 31, 2017, the components of accumulated earnings on a tax basis were as follows:

In October 2016, the SEC released its Final Rule 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 to Regulation S-X became effective for filings made with the SEC after August 1, 2017. The compliance date for form N-PORT and Form N-CEN will vary based on the reporting entity’s size and, in the case of the Fund, is expected to be April 30, 2019. The Fund’s adoption of these amendments, as applicable for the financial statements prepared as of December 31, 2017, had no effect on the Fund’s 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, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with the transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 24.97% 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, 2017, the Fund declared net short-term capital gain distributions of $2,091.

During the year ended December 31, 2017, the Fund declared net long-term capital gain distributions of $20,729,966.

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 (the “Board”) and in accordance with the investment objectives and restrictions of each separate series (together, the “Funds”) of the Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”), investment advisory services are provided to the Funds by Allianz Investment Management LLC (the “Manager”). As used in this section, “Fund” refers to any of the Funds. 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, 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 the Fund if and when total Fund operating expenses exceed certain amounts until at least May 1, 2019 (the “Expense Limitation Agreement”).

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 (“Allianz Life”) and its subsidiary, Allianz Life Insurance Company of New York (“Allianz 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 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 Fund’s investment objectives and long-term performance; 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 Services Agreement and a Compliance Services Agreement, under which the Manager is compensated by the Trust for performing certain administrative and compliance services including providing an employee of the Manager or one of its affiliates to act as the Trust’s Chief Compliance Officer; and (2) Allianz Life Financial Services, LLC, an affiliated person of the Manager, is a registered securities broker-dealer and received (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 an adviser’s compensation: the nature and quality of the services provided by the adviser, including the performance of the fund; the adviser’s cost of providing the services; the extent to which the adviser may realize “economies of scale” as the fund grows larger; any indirect benefits that may accrue to the adviser and its affiliates as a result of the adviser’s relationship with the fund; performance and expenses of comparable funds; the profitability of acting as adviser to the fund; and the extent to which the independent Board members, who are not “interested persons” of a fund as defined by the 1940 Act, are fully informed about all facts bearing on the adviser’s services and fees. The Board is aware of these factors and takes 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 independent 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 the Expense Limitation Agreement and additional 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 meetings held in the fall of 2017. Information relevant to the approval of the Management Agreement was considered at a telephonic Board meeting on October 18, 2017, and at an “in person” Board meeting held October 23, 2017. The Management Agreement was approved at the Board meeting of October 23, 2017. At such meeting the Board also approved the Expense Limitation Agreement between the Manager and the Trust for the period ending April 30, 2019. 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 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 Board considered all factors it 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 every Fund, and the Board did not assign relative weights to factors discussed herein or deem any one or group of them to be controlling in and of themselves.

An SEC rule requires that shareholder reports include a discussion of certain factors relating to the selection of 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, 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 and certain compliance staff, the Manager pays all of the compensation of Trustees and officers of the Trust who are employees of the Manager or its affiliates.

The Board 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 Board 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 Board considered the capabilities and resources which the Manager has dedicated to performing services on behalf of the Trust and its Funds. The quality of administrative and other services, including the Manager’s role in coordinating the activities of the Trust’s other service providers, also were considered. The Board 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 Funds and the Manager. In connection with every in-person quarterly Board meeting and the fall 2017 contract review process, Trustees received extensive information on the performance results of each Fund. 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 performance of the underlying funds, and the impact on performance of rebalancing decisions, cash and Fund fees. This included Lipper performance information on the Funds for the previous quarter, year-to-date, and previous one-, three- and five-year periods, to the extent the Funds were in existence for such periods. (For Funds which have been in existence for less than five years, the Board received performance information on shorter time periods to the extent available.) For example, in connection with the Board meeting held October 23, 2017, the Manager reported that for the five Funds for which performance information for the five year period ended June 30, 2017 was available, two were in the top 40%, two were in the middle 20%, and one was in the bottom 40%. None of these Funds was in the bottom 40% for the three- or one-year periods. The Manager reported that for the three-year period ended June 30, 2017, for the six Funds for which three year performance information was available, four Funds were in the top 40% and two Funds were in the middle 20%. For the eight Funds for which one-year performance information was available, for the one-year period ended June 30, 2017, four Funds were in the top 40%, two Funds were in the middle 20%, and two Funds were in the bottom 40%.

At the Board meeting held October 23, 2017, the Manager also reported upon the performance of the MVP Funds compared to custom managed-volatility peer groups. For the seven Funds for which three-year performance information was available, for the three-year period ended June 30, 2017, five Funds were in the top 40%, one Fund was in the middle 20%, and one was in the bottom 40%. For the eight Funds for which one year performance was available, for the one-year period ended June 30, 2017, four Funds were in the top 40% and four Funds were in the middle 20%. All six Funds for which five-year performance information was available were in the top 40%.

At the Board meeting held October 23, 2017, 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 Dynamic Funds the advisory fee paid put these Funds in the 44th percentile of the customized peer group. The Manager reported that for three MVP Index Strategy Funds the advisory fee paid put them in the 27th percentile of the customized peer group, and for the two non-MVP Index Strategy Funds, as well as the AZL DFA Multi-Strategy Fund, the advisory fee paid put them in the 13th percentile of the customized peer group. The Manager reported that for the AZL MVP BlackRock Global Strategy Plus, AZL MVP DFA Multi-Strategy, AZL MVP Pyramis Multi-Strategy, and AZL MVP T. Rowe Price Capital Appreciation Plus Funds, the advisory fee paid was in the 9th percentile. (A lower percentile reflects lower fund fees and is better for fund shareholders.) 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 2014 through June 30, 2017. The Board 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 Board considered the possible effect of certain fall-out benefits to the Manager and its affiliates. The Board focused on profitability of the Manager’s relationships with the Funds before taxes and distribution expenses. The Board recognized that the Manager should earn a reasonable level of profits for the services it provides to each Fund.

The Board also considered that 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 Dynamic 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 Funds’ underlying funds and the asset allocations among the underlying funds. The Manager, not any Fund, pays a consultant fee to Wilshire.

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 Board noted that the advisory fee schedules for the Funds do not contain breakpoints that reduce the fee rate on assets above specified levels. The Board 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. The Board found there was no uniform methodology for establishing breakpoints that give effect to Fund-specific services provided by the Manager. The Board 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 Board 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 Board also noted that the total assets in all of the Funds, as of June 30, 2017, were approximately $10.8 billion and that the largest Fund, the AZL MVP Growth Index Strategy Fund, had assets of approximately $2.4 billion.

The Board noted that the Manager has agreed to temporarily limit Fund expenses under the Expense Limitation Agreement, 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 expense limits and/or advisory fee breakpoints as the Funds grow larger. The Board receives quarterly reports on the level of Fund assets. The Board expects to continue to consider: (a) the extent to which economies of scale have been realized, and (b) whether the advisory fee should be modified, either in connection with the next renewal of the Agreements or by modifying the Expense Limitation Agreement, to reflect such economies of scale, if any.

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

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® DFA Multi-Strategy Fund (the “Fund”) returned 12.69%. That compared to a 21.83%, 3.54% and 14.26% 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.*

Global economic expansion led major stock indexes to new all-time highs during the 12-month period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low-volatility environment. Mid- and small-cap stocks also performed well during the period: The S&P MidCap 400 Index² generated a 16.24% return and the SmallCap 600 Index³ returned 13.23%. Growth stocks were also heavily favored during the year and significantly outperformed value stocks.

International developed markets, as measured by the MSCI EAFE Index⁴, fared even better, and posted a 25.62% return for the period. Emerging markets equities, as measured by the MSCI Emerging Markets Equity Index⁵, posted an impressive return of 37.75% and thereby ended years of underperformance versus domestic and developed international markets.

than-benchmark exposure to small- and mid-cap stocks also detracted from relative results, as those stocks underperformed their large-cap counterparts. The Fund’s exposure to developed and emerging market international equities contributed to returns relative to the composite benchmark, which has no non-U.S. equity exposure.*

Within its fixed-income portfolio, the Fund’s duration exposure was shorter than that of the Bloomberg Barclays U.S. Aggregate Bond Index. That positioning detracted from relative returns as the yield curve flattened during the year. The Fund’s high-credit-quality portfolio also negatively affected performance as spreads tightened during the year, leading to outperformance among lower-rated bonds.*

Past performance does not guarantee future results.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

Investors cannot invest directly in an index.

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, 2017


	1 Year			3 Year			5 Year			Since Inception (7/10/09)
AZL^®DFA Multi-Strategy Fund		12.69	%		6.96	%		9.56	%		10.90	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		16.44	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		3.74	%
Multi-Strategy Composite Index		14.26	%		7.76	%		10.25	%		11.46	%


Expense Ratio	Gross
AZL^®DFA Multi-Strategy Fund		0.97	%

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, as shown in the current prospectus, 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 expense 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 indexes are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services provided to the Fund. Investors cannot invest directly in an index.

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

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


Shares			Fair Value
Affiliated Investment Companies (100.1%):
	5,627,452	AZL DFA Emerging Markets Core Equity Fund	$	63,140,016
	47,292,061	AZL DFA Five-Year Global Fixed Income Fund		472,920,612
	7,609,217	AZL DFA International Core Equity Fund		87,201,630
	35,988,260	AZL DFA U.S. Core Equity Fund		459,210,202
	9,875,596	AZL DFA U.S. Small Cap Fund		122,556,147

	Total Affiliated Investment Companies (Cost $1,063,540,017)			1,205,028,607

	Total Investment Securities (Cost $1,063,540,017)(a) — 100.1%			1,205,028,607
	Net other assets (liabilities) — (0.1)%			(832,096	)

	Net Assets — 100.0%		$	1,204,196,511

Percentages indicated are based on net assets as of December 31, 2017.

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

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	1,063,540,017

Investments in affiliates, at value	$	1,205,028,607
Receivable for affiliated investments sold		431,698
Prepaid expenses		6,938

Total Assets		1,205,467,243

Liabilities:
Cash overdraft		431,698
Payable for capital shares redeemed		746,620
Manager fees payable		51,207
Administration fees payable		3,977
Custodian fees payable		502
Administrative and compliance services fees payable		2,730
Transfer agent fees payable		755
Trustee fees payable		1,759
Other accrued liabilities		31,484

Total Liabilities		1,270,732

Net Assets	$	1,204,196,511

Net Assets Consist of:
Capital	$	1,034,088,872
Accumulated net investment income/(loss)		13,032,239
Accumulated net realized gains/(losses) from investment transactions		15,586,810
Net unrealized appreciation/(depreciation) on investments		141,488,590

Net Assets	$	1,204,196,511

Shares of beneficial interest (unlimited number of shares authorized, no par value)		84,855,744
Net Asset Value (offering and redemption price per share)	$	14.19

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	13,086,689
Interest		65
Dividends		108
Other income		2,420

Total Investment Income		13,089,282

Expenses:
Manager fees		601,525
Administration fees		53,867
Custodian fees		2,583
Administrative and compliance services fees		14,308
Transfer agent fees		5,496
Trustee fees		51,029
Professional fees		51,702
Shareholder reports		26,713
Other expenses		15,427

Total expenses		822,650

Net Investment Income/(Loss)		12,266,632

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		17,323,076
Net realized gains distributions from affiliated underlying funds		2,820,829
Change in net unrealized appreciation/depreciation on affiliated transactions		110,992,500

Net Realized/Unrealized Gains/(Losses) on Investments		131,136,405

Change in Net Assets Resulting From Operations	$	143,403,037

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 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.

For the year ended December 31, 2017, the annual rate paid 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, 2017, $12,381 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 $25,000 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, 2017, actual Trustee compensation was $1,116,333 in total for both trusts.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $1,063,908,341. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

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, 2017, the Fund utilized $3,423,112 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2017 were as follows:

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

At December 31, 2017, 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, 2017, 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, 2017, 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, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 53.72% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

At the Board meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® MVP Balanced Index Strategy Fund (the “Fund”) returned 11.40%. That compared to a 21.83%, 3.54% and a 12.42% 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.*

The Fund, which invests in both U.S. and international markets, underperformed its composite benchmark in 2017. The underperformance was primarily driven by the Fund’s

strategic allocation to U.S. mid- and small-cap equities during a period when U.S. large-cap equities outperformed their smaller counterparts. The Fund’s overweight allocation to international equities, on the other hand, supported relative returns as they outperformed their U.S. counterparts.*

Past performance does not guarantee future results.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

Investors cannot invest directly in an index.

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, 2017


	1 Year			3 Year			5 Year			Since Inception (1/10/12)
AZL^®MVP Balanced Index Strategy Fund		11.40	%		5.82	%		7.19	%		7.44	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		15.36	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		2.47	%
Balanced Composite Index		12.42	%		6.84	%		8.87	%		8.89	%


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 (95.1%):
	14,056,214	AZL Enhanced Bond Index Fund	$	153,072,168
	2,341,672	AZL International Index Fund, Class 2		40,510,932
	1,031,765	AZL Mid Cap Index Fund, Class 2		24,205,200
	4,689,232	AZL S&P 500 Index Fund, Class 2		75,637,309
	869,643	AZL Small Cap Stock Index Fund, Class 2		12,940,281

	Total Affiliated Investment Companies (Cost $270,824,187)			306,365,890

	Total Investment Securities (Cost $270,824,187)(a) — 95.1%			306,365,890
	Net other assets (liabilities) — 4.9%			15,864,740

	Net Assets — 100.0%		$	322,230,630

Percentages indicated are based on net assets as of December 31, 2017.

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

Cash of $16,105,607 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	270,824,187

Investments in affiliates, at value	$	306,365,890
Segregated cash for collateral		16,105,607
Interest and dividends receivable		14,880
Receivable for capital shares issued		37,337
Receivable for affiliated investments sold		191,127
Prepaid expenses		1,869

Total Assets		322,716,710

Liabilities:
Cash overdraft		191,127
Payable for capital shares redeemed		252,058
Manager fees payable		27,264
Administration fees payable		3,575
Custodian fees payable		569
Administrative and compliance services fees payable		756
Transfer agent fees payable		689
Trustee fees payable		487
Other accrued liabilities		9,555

Total Liabilities		486,080

Net Assets	$	322,230,630

Net Assets Consist of:
Capital	$	279,091,576
Accumulated net investment income/(loss)		2,615,699
Accumulated net realized gains/(losses) from investment transactions		4,894,824
Net unrealized appreciation/(depreciation) on investments		35,628,531

Net Assets	$	322,230,630

Shares of beneficial interest (unlimited number of shares authorized, no par value)		24,084,573
Net Asset Value (offering and redemption price per share)	$	13.38

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	2,553,675
Interest		140,005
Dividends		348
Other income		798

Total Investment Income		2,694,826

Expenses:
Manager fees		316,561
Administration fees		48,500
Custodian fees		3,111
Administrative and compliance services fees		3,815
Transfer agent fees		4,797
Trustee fees		13,466
Professional fees		13,832
Shareholder reports		8,707
Other expenses		3,708

Total expenses		416,497

Net Investment Income/(Loss)		2,278,329

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		490,929
Net realized gains distributions from affiliated underlying funds		5,728,617
Net realized gains/(losses) on futures contracts		1,426,333
Change in net unrealized appreciation/depreciation on affiliated transactions		24,106,496
Change in net unrealized appreciation/depreciation on futures contracts		118,289

Net Realized/Unrealized Gains/(Losses) on Investments		31,870,664

Change in Net Assets Resulting From Operations	$	34,148,993

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 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., miscellaneous adjustments on return of capital), 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.

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, 2017, 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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $15.8 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid 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, 2017, $3,235 was paid from the Fund relating to these fees and expenses.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $273,470,856. 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, 2017 were as follows:

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

At December 31, 2017, 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, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with brokers and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 23.90% 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, 2017, the Fund declared net short-term capital gain distributions of $197,284.

During the year ended December 31, 2017, the Fund declared net long-term capital gain distributions of $11,786,810.

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® MVP BlackRock Global Strategy Plus Fund (the “Fund”) returned 11.54%. That compared to a 24.09%, 21.83%, 26.57%, 0.72%, 10.33% and a 13.81% total return for its benchmarks, the FTSE World Index¹, the S&P 500 Index¹, the FTSE World ex U.S. Index¹, the ICE 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 generated robust returns for the year, but generally underperformed international equities for the 12-month period. The S&P 500 Index gained 21.83%, while the FTSE World Ex US Index posted a stronger advance of 26.57%. Gains among European and Japanese stocks came amid positive corporate earnings reports and accommodative monetary policies from the Bank of Japan and European Central Bank. In the U.S., stocks were driven higher amid expectations of lower tax rates and higher growth rates—an environment that favored growth-oriented stocks.

Positive corporate earnings reports, healthy global economic growth and mild interest rates allowed investors to see past geopolitical tensions, most notably from a hostile North Korea.

In fixed income markets, investors began the year with an appetite for risk, which drove up prices on risk assets, particularly corporate and high-yield bonds. Demand was strong enough to absorb record levels of issuance, leading to narrowing credit spreads. Positive economic data and accommodative policy from most central banks—aside from the well-telegraphed interest rate increases from the Federal Reserve—made for modest but steady returns. Rising short-term rates and strong demand that pushed down yields on long-term bonds led to a dramatic flattening of the yield curve in the fourth quarter, following passage of the tax reform bill in the U.S.

The Fund underperformed its reference benchmark for the 12-month period. The Fund’s active component, AZL BlackRock Global Allocation Fund, underperformed the passive components, which are composed of AZL MSCI Global Equity Index Fund and AZL Enhanced Bond Index Fund.*

Within the Fund’s equities holdings, a higher-than-benchmark exposure to Japanese stocks dragged on relative performance as that country’s equities underperformed international markets.*

From a sector perspective, a below-benchmark exposure to information technology stocks dragged on relative results, as that sector outperformed for the period. Stock selection in the industrials sector also detracted. In addition, the Fund’s currency management strategy—particularly an above-benchmark exposure to the U.S. dollar and an underweight position in the euro—detracted from relative performance.*

The Fund’s relative performance benefited from an above-benchmark exposure to India, which was one of the top-performing markets for the period. Stock selection within the consumer discretionary and utilities sectors also benefited relative results. Stock selection among energy and telecommunications stocks also added.*

The Fund’s underweight position in fixed income contributed to relative results during a period in which stocks strongly outperformed bonds. Exposure to credit, particularly investment grade corporate bonds, added to results as credit spreads tightened.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review. Given that the period was marked by low volatility, the MVP process maintained a neutral equity allocation for the year relative to its target. The MVP process detracted slightly from relative results due to mismatches between the hedging instruments used and the target equity and fixed income exposure.*

Past performance does not guarantee future results.

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

Fund Objective

The Fund’s investment objective is to seek high total investment return. This objective may be changed by the Trustees of the Fund without shareholder approval. The Fund seeks to achieve its objective by investing primarily a combination of Underlying Funds, which are managed by the manager, combined with the MVP risk management process.

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.

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

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

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 four 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, 2017


										Since
	1			3			5			Inception
	Year			Year			Year			(1/10/12)
AZL^®MVP BlackRock Global Strategy Plus Fund		11.54	%		4.33	%		5.73	%		5.92	%
FTSE World Index		24.09	%		9.96	%		11.67	%		12.19	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		15.36	%
FTSE World ex U.S. Index		26.57	%		8.34	%		7.52	%		8.88	%
ICE BofA Merrill Lynch 5-Year U.S. Treasury Bond Index		0.72	%		0.92	%		0.64	%		0.92	%
Citigroup Non-U.S. Dollar World Government Bond Index		10.33	%		1.99	%		-0.29	%		0.15	%
Reference Benchmark		13.81	%		5.88	%		6.39	%		6.74	%


Expense Ratio	Gross
AZL^®MVP BlackRock Global Strategy Plus Fund		1.09	%

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. The Manager and the Fund have entered into a written contract limiting operating expenses, excluding certain expenses (such as interest expenses, acquired fund fees and expenses and consolidated expenses) to 0.15% through April 30, 2019. Additional information pertaining to the December 31, 2017 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, as shown in the current prospectus, 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 expense ratio would be 0.77%. 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 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 ICE 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%) ICE BofA Merrill Lynch 5-Year U.S. Treasury Bond; and (20%) Citigroup Non-U.S. Dollar World Government Bond Index. These indexes 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.

Consolidated Portfolio Composition

(Unaudited)


Investments	Percent of Net Assets
Affiliated Investment Companies		45.0	%
Common Stocks		28.0
U.S. Treasury Obligations		10.9
Foreign Bonds		4.1
Securities Held as Collateral for Securities on Loan		2.1
Exchange Traded Funds		1.9
Yankee Dollars		1.3
Corporate Bonds		1.2
Money Markets		1.1
Convertible Preferred Stocks		0.5
Preferred Stocks		0.4
Bank Loans		0.2
Options		0.1
Convertible Bonds		0.2
Collateralized Mortgage Obligations		0.1
Private Placements		—	^
Warrants		—	^

Total Investment Securities		97.0
Net other assets (liabilities)		3.0

Net Assets		100.0	%

^	Represents less than 0.05%


Investments*	Percent of Net Assets
United States		77.8	%
Japan		4.7
United Kingdom		1.9
France		1.4
Germany		1.3
Australia		1.1
Brazil		0.9
Netherlands		0.9
Switzerland		0.7
India		0.7
All other countries		5.7

Total Investment Securities		97.1
Net other assets (liabilities)		2.9

Net Assets		100.0	%

*	The portfolio composition percent of net assets by country does not include geographical information of the investments of the Affiliated Investment Companies held by the Fund.


Shares			Fair Value
Common Stocks (28.0%):
Aerospace & Defense (0.4%):
	73,962	BAE Systems plc(a)	$	568,752
	358	Boeing Co. (The)(a)		105,577
	452	Dassault Aviation SA(a)		702,591
	310	General Dynamics Corp.(a)		63,070
	72,578	Meggitt plc(a)		469,854
	264	Northrop Grumman Corp.(a)		81,024
	300	Raytheon Co.(a)		56,355
	9,619	Safran SA(a)		988,995
	19	Thales SA(a)		2,044
	15	United Technologies Corp.(a)		1,914

				3,040,176

Air Freight & Logistics (0.0%):
	243	Deutsche Post AG(a)		11,542

Airlines (0.5%):
	34,660	Azul SA, ADR*^(a)		825,947
	705	Delta Air Lines, Inc.(a)		39,480
	41,000	Japan Airlines Co., Ltd.(a)		1,604,541
	27,856	United Continental Holdings, Inc.*(a)		1,877,494

				4,347,462

Auto Components (0.9%):
	9,300	Aisin Sieki Co., Ltd.(a)		522,627
	34,100	Bridgestone Corp.(a)		1,586,066
	51,683	Cheng Shin Rubber Industry Co., Ltd.(a)		91,198
	4,229	Compagnie Generale des Establissements Michelin SCA, Class B(a)		605,706
	22,200	Denso Corp.(a)		1,333,023
	2,400	Exedy Corp.(a)		74,266
	754	Goodyear Tire & Rubber Co.^(a)		24,362
	5,000	Koito Manufacturing Co., Ltd.(a)		351,632
	315	Lear Corp.(a)		55,648
	191	Magna International(a)		10,827
	2,400	Stanley Electric Co., Ltd.(a)		97,489
	30,600	Sumitomo Electric Industries, Ltd.(a)		516,421
	25,200	Toyota Industries Corp.(a)		1,620,031

				6,889,296

Automobiles (0.4%):
	140,000	Brilliance China Automotive Holdings, Ltd.(a)		371,968
	2,000	Dongfeng Motor Corp., Series H(a)		2,421
	236	Ford Motor Co.(a)		2,948
	18,600	Fuji Heavy Industries, Ltd.(a)		588,970
	72	General Motors Co.(a)		2,951
	2,633	Hero MotoCorp, Ltd.(a)		156,101
	4,355	Maruti Suzuki India, Ltd.(a)		662,876
	600	Mazda Motor Corp.(a)		8,052
	37,100	Suzuki Motor Corp.(a)		2,149,121
	87	Tata Motors, Ltd.*(a)		585
	500	Tata Motors, Ltd., Class A*(a)		1,898

				3,947,891

Banks (2.2%):
	29,662	ABN AMRO Group NV(a)		954,351
	15,000	Agricultural Bank of China, Ltd.(a)		6,981


Shares			Fair Value
Common Stocks, continued
Banks, continued
	576	Banco do Brasil SA(a)	$	5,527
	147,147	Bank of America Corp.(a)		4,343,780
	12,000	Bank of China, Ltd.(a)		5,889
	3,000	Bank of Communications Co., Ltd., Class H(a)		2,224
	4	Bank of Montreal(a)		320
	112	Bank of Nova Scotia(a)		7,229
	253	Barclays Africa Group, Ltd.(a)		3,734
	2,027	Barclays plc(a)		5,526
	90	BNP Paribas SA(a)		6,711
	12,000	China Construction Bank(a)		11,038
	32,208	Citigroup, Inc.(a)		2,396,597
	6	Credicorp, Ltd.(a)		1,245
	1,049	Criteria Caixacorp SA(a)		4,879
	197	Danske Bank A/S(a)		7,660
	201	DnB NOR ASA(a)		3,718
	1,502	Fifth Third Bancorp^(a)		45,571
	144	Grupo Financiero Banorte SAB de C.V.(a)		791
	95	Hana Financial Holdings Group, Inc.(a)		4,421
	217,505	HSBC Holdings plc(a)		2,242,711
	8,000	Industrial & Commercial Bank of China(a)		6,416
	75,541	ING Groep NV(a)		1,389,844
	13,874	JPMorgan Chase & Co.(a)		1,483,686
	47,849	Kotak Mahindra Bank, Ltd.(a)		756,786
	14,698	Lloyds Banking Group plc(a)		13,456
	600	Mitsubishi UFJ Financial Group, Inc.(a)		4,403
	122	National Australia Bank, Ltd.(a)		2,806
	260	Nordea Bank AB(a)		3,148
	700	Resona Holdings, Inc.(a)		4,184
	128	Royal Bank of Canada(a)		10,454
	325	Skandinaviska Enskilda Banken AB, Class A(a)		3,809
	98	Societe Generale(a)		5,052
	96,283	State Bank of India(a)		466,486
	41,300	Sumitomo Mitsui Financial Group, Inc.(a)		1,783,984
	10,333	SunTrust Banks, Inc.(a)		667,408
	14	Swedbank AB, Class A(a)		337
	46	Toronto-Dominion Bank (The)(a)		2,696
	26	Wells Fargo & Co.(a)		1,577
	142	Woori Bank(a)		2,088
	48,846	Yes Bank, Ltd.(a)		240,792

				16,910,315

Beverages (0.2%):
	15,072	Anheuser-Busch InBev NV(a)		1,680,968
	10	Brown-Forman Corp., Class B^(a)		687
	3	Carlsberg A/S, Class B(a)		359
	267	Coca-Cola Co. (The)(a)		12,250
	361	Constellation Brands, Inc., Class C(a)		82,514
	44	Diageo plc(a)		1,610
	100	Kirin Holdings Co., Ltd.(a)		2,516
	1,526	PepsiCo, Inc.(a)		182,997

				1,963,901


Shares			Fair Value
Common Stocks, continued
Biotechnology (0.3%):
	822	AbbVie, Inc.(a)	$	79,496
	551	Amgen, Inc.(a)		95,819
	597	Biogen Idec, Inc.*(a)		190,186
	112	Celgene Corp.*(a)		11,688
	24,464	Gilead Sciences, Inc.(a)		1,752,601
	4,128	Tesaro, Inc.*^(a)		342,087

				2,471,877

Building Products (0.3%):
	100	Asahi Glass Co., Ltd.(a)		4,326
	10,975	Compagnie de Saint-Gobain SA(a)		603,943
	4,700	Daikin Industries, Ltd.(a)		556,518
	10,737	Fortune Brands Home & Security, Inc.(a)		734,840
	1,923	Masco Corp.(a)		84,497
	5,000	Nichias Corp.(a)		66,562

				2,050,686

Capital Markets (1.0%):
	314	Ameriprise Financial, Inc.(a)		53,214
	852	Bank of New York Mellon Corp. (The)(a)		45,889
	28,770	Charles Schwab Corp. (The)(a)		1,477,914
	32	Franklin Resources, Inc.(a)		1,387
	5,497	Goldman Sachs Group, Inc. (The)(a)		1,400,416
	100	Hong Kong Exchanges & Clearing, Ltd.(a)		3,055
	38	Moody’s Corp.(a)		5,609
	53,674	Morgan Stanley(a)		2,816,274
	54	Northern Trust Corp.(a)		5,394
	337	State Street Corp.(a)		32,895
	244	Thomson Reuters Corp.(a)		10,637
	127,367	UBS Group AG(a)		2,340,869

				8,193,553

Chemicals (1.6%):
	32	Agrium, Inc.(a)		3,681
	15,239	Air Products & Chemicals, Inc.(a)		2,500,415
	52,500	Asahi Kasei Corp.(a)		676,397
	25,722	Axalta Coating Systems, Ltd.*(a)		832,364
	95	BASF SE(a)		10,425
	15,400	Daicel Chemical Industries, Ltd.(a)		175,274
	46,106	DowDuPont, Inc.(a)		3,283,670
	14,744	Evonik Industries AG(a)		553,077
	32,000	Formosa Chemicals & Fibre Corp.(a)		110,715
	34,000	Formosa Plastics Corp.(a)		112,677
	15,600	Hitachi Chemical Co., Ltd.(a)		400,877
	767	Huntsman Corp.(a)		25,533
	5,200	Kuraray Co., Ltd.(a)		98,162
	554	LG Chem, Ltd.(a)		209,384
	6	Lotte Chemical Corp.(a)		2,058
	79	Lyondellbasell Industries NV(a)		8,715
	123	Monsanto Co.(a)		14,364
	43,000	Nan Ya Plastics Corp.(a)		112,539
	8,100	Nitto Denko Corp.(a)		720,061
	22	Praxair, Inc.(a)		3,403
	70,800	PTT Global Chemical Public Co., Ltd.(a)		184,517


Shares			Fair Value
Common Stocks, continued
Chemicals, continued
	18,400	Shin-Etsu Chemical Co., Ltd.(a)	$	1,866,466
	5,000	Toagosei Co., Ltd.(a)		63,426
	56,600	Toray Industries, Inc.(a)		533,937
	14,400	Ube Industries, Ltd.(a)		423,877

				12,926,014

Commercial Services & Supplies (0.0%):
	27	Republic Services, Inc., Class A(a)		1,825
	57	Waste Management, Inc.(a)		4,920

				6,745

Communications Equipment (0.3%):
	132	Cisco Systems, Inc.(a)		5,056
	33,036	CommScope Holding Co., Inc.*^(a)		1,249,752
	18	Motorola Solutions, Inc.^(a)		1,626
	214,598	Nokia OYJ(a)		1,002,229

				2,258,663

Construction & Engineering (0.2%):
	4,100	ComSys Holdings Corp.(a)		118,703
	12,500	Kinden Corp.(a)		203,504
	2,000	Kyudenko Corp.(a)		96,419
	5,000	Maeda Road Construction Co., Ltd.(a)		114,647
	5,000	Nippo Corp.(a)		116,843
	4,600	Okumura Corp.(a)		189,292
	22,000	Toda Corp.(a)		176,361
	6,430	Vinci SA(a)		655,953

				1,671,722

Construction Materials (0.0%):
	16,108	Cemex SAB de C.V.*(a)		12,053
	11,000	Siam Cement PCL(a)		165,180

				177,233

Consumer Finance (0.0%):
	1,079	Ally Financial, Inc.(a)		31,464
	89	American Express Co.(a)		8,839
	562	Capital One Financial Corp.(a)		55,964
	731	Discover Financial Services(a)		56,228

				152,495

Containers & Packaging (0.1%):
	94	Amcor, Ltd.(a)		1,129
	776	Crown Holdings, Inc.*(a)		43,650
	1,075	International Paper Co.(a)		62,286
	673	Packaging Corp. of America(a)		81,130
	11,291	WestRock Co.(a)		713,704

				901,899

Distributors (0.0%):
	3,400	Canon Marketing Japan, Inc.(a)		91,785

Diversified Consumer Services (0.0%):
	90	New Oriental Education & Technology Group, Inc., ADR(a)		8,460

Diversified Financial Services (0.0%):
	365	AMP, Ltd.(a)		1,474
	897	Berkshire Hathaway, Inc., Class B*(a)		177,803


Shares			Fair Value
Common Stocks, continued
Diversified Financial Services, continued
	79,000	Fubon Financial Holdings Co., Ltd.(a)	$	134,444
	346	Rmb Holdings, Ltd.(a)		2,210

				315,931

Diversified Telecommunication Services (0.8%):
	189	AT&T, Inc.(a)		7,348
	51,559	Cellnex Telecom SAU(a)		1,319,467
	4,000	China Telecom Corp., Ltd., Class H(a)		1,903
	200,000	Chunghwa Telecom Co., Ltd.(a)		712,379
	34,000	Deutsche Telekom AG, Registered Shares(a)		602,903
	12,293	El Towers SpA(a)		788,422
	80,000	HKT Trust & HKT, Ltd.(a)		102,022
	2,900	Nippon Telegraph & Telephone Corp.(a)		136,479
	66,100	Singapore Telecommunications, Ltd.(a)		176,476
	1,156,044	Telecom Italia SpA*(a)		997,849
	29,641	Telecom Italia RSP(a)		21,169
	506	Telefonica SA(a)		4,926
	104	Telenor ASA(a)		2,228
	408	Telstra Corp., Ltd.(a)		1,155
	22,669	Verizon Communications, Inc.(a)		1,199,870

				6,074,596

Electric Utilities (0.3%):
	7,397	CEZ(a)		172,618
	14,500	CK Infrastructure Holdings, Ltd.(a)		124,481
	15,000	CLP Holdings, Ltd.(a)		153,504
	170,709	Enel SpA(a)		1,049,152
	13	FirstEnergy Corp.(a)		398
	13,000	Hongkong Electric Holdings, Ltd.(a)		109,714
	13,251	NextEra Energy, Inc.(a)		2,069,674
	103	PG&E Corp.(a)		4,617
	1,755	PGE SA*(a)		6,076
	297	Scottish & Southern Energy plc(a)		5,290

				3,695,524

Electrical Equipment (0.2%):
	154	ABB, Ltd.(a)		4,119
	134	Eaton Corp. plc(a)		10,587
	24	Emerson Electric Co.(a)		1,673
	16,000	GS Yuasa Corp.(a)		79,705
	3,000	Mabuchi Motor Co., Ltd.(a)		161,971
	93,600	Mitsubishi Electric Corp.(a)		1,555,442
	274	Rockwell Automation, Inc.(a)		53,799

				1,867,296

Electronic Equipment, Instruments & Components (0.1%):
	120	Corning, Inc.(a)		3,839
	2,000	Hitachi, Ltd.(a)		15,560
	40,400	Hon Hai Precision Industry Co., Ltd.(a)		128,729
	7,000	Innolux Corp.(a)		2,912
	5,000	Japan Aviation Electronics Industry, Ltd.(a)		84,666
	300	Keyence Corp.(a)		167,532
	60	LG Display Co., Ltd.(a)		1,676
	6,500	Murata Manufacturing Co., Ltd.(a)		868,870

				1,273,784


Shares			Fair Value
Common Stocks, continued
Energy Equipment & Services (0.1%):
	84	Halliburton Co.(a)	$	4,105
	595	Helmerich & Payne, Inc.(a)		38,461
	9,259	Schlumberger, Ltd.(a)		623,964

				666,530

Equity Real Estate Investment Trusts (0.1%):
	621	American Tower Corp.(a)		88,598
	142	Equity Residential Property Trust(a)		9,055
	195	HCP, Inc.(a)		5,086
	18,500	Link REIT (The)(a)		171,437
	834	Stockland Trust Group(a)		2,917
	2,585	Unibail-Rodamco SE(a)		651,150
	49	Vornado Realty Trust(a)		3,831
	148	Weyerhaeuser Co.(a)		5,218

				937,292

Food & Staples Retailing (0.2%):
	35	Costco Wholesale Corp.(a)		6,514
	18,136	CVS Health Corp.(a)		1,314,861
	2,850	Jeronimo Martins SGPS SA(a)		55,341
	12	Koninklijke Ahold Delhaize NV(a)		263
	1,400	Seven & I Holdings Co., Ltd.(a)		58,156
	7	Sysco Corp.(a)		425
	149	Walgreens Boots Alliance, Inc.(a)		10,820
	115	Wal-Mart Stores, Inc.(a)		11,356
	69	Wesfarmers, Ltd.(a)		2,389
	334	Woolworths, Ltd.(a)		7,108

				1,467,233

Food Products (0.7%):
	46,600	Ajinomoto Co., Inc.(a)		878,272
	94	Associated British Foods plc(a)		3,573
	350	ConAgra Foods, Inc.(a)		13,185
	38,863	Danone SA(a)		3,257,781
	1,173	JBS SA(a)		3,470
	3,023	Mondelez International, Inc., Class A(a)		129,383
	32,090	Nestle SA, Registered Shares(a)		2,758,271
	137	Tiger Brands, Ltd.(a)		5,109
	522	Tyson Foods, Inc., Class A(a)		42,319
	85,000	Uni-President Enterprises Corp.(a)		188,458
	125,000	Want Want China Holdings, Ltd.(a)		104,587
	6,500	WH Group, Ltd.(a)		7,327
	900	Wilmar International, Ltd.(a)		2,075

				7,393,810

Gas Utilities (0.2%):
	327	GAIL India, Ltd.(a)		2,553
	12,748	Gas Natural SDG SA(a)		294,102
	59,500	Tokyo Gas Co., Ltd.(a)		1,358,957

				1,655,612

Health Care Equipment & Supplies (0.3%):
	3,159	Baxter International, Inc.(a)		204,198
	152	Boston Scientific Corp.*(a)		3,768
	18,000	HOYA Corp.(a)		899,542


Shares			Fair Value
Common Stocks, continued
Health Care Equipment & Supplies, continued
	1,508	Medtronic plc(a)	$	121,771
	100	Olympus Co., Ltd.(a)		3,829
	826	Stryker Corp.(a)		127,898
	12,748	Zimmer Holdings, Inc.(a)		1,538,301

				2,899,307

Health Care Providers & Services (0.9%):
	18,144	Acadia Healthcare Co., Inc.*^(a)		592,039
	521	Aetna, Inc.(a)		93,983
	4,100	Alfresa Holdings Corp.(a)		96,242
	5,524	Anthem, Inc.(a)		1,242,955
	217	Express Scripts Holding Co.*(a)		16,197
	24,733	HCA Holdings, Inc.*(a)		2,172,547
	187	McKesson Corp.(a)		29,163
	4,700	Medipal Holdings Corp.(a)		92,055
	39,737	NMC Health plc(a)		1,547,343
	606,122	PT Siloam International Hospital Tbk*(a)		427,596
	2,100	Suzuken Co., Ltd.(a)		86,421
	31,311	Tenet Healthcare Corp.*^(a)		474,675
	979	UnitedHealth Group, Inc.(a)		215,830

				7,087,046

Hotels, Restaurants & Leisure (0.2%):
	225	Carnival Corp., Class A(a)		14,933
	18	Compass Group plc(a)		389
	10,200	Genting Singapore plc(a)		9,970
	60	Hilton Worldwide Holdings, Inc.(a)		4,792
	215	Las Vegas Sands Corp.(a)		14,940
	589	McDonald’s Corp.(a)		101,379
	28,573	MGM Resorts International(a)		954,052
	322	Royal Caribbean Cruises, Ltd.(a)		38,408
	5,226	Sodexo SA(a)		701,588
	662	Wyndham Worldwide Corp.(a)		76,706
	400	Wynn Resorts, Ltd.(a)		67,436
	70	Yum China Holdings, Inc.(a)		2,801

				1,987,394

Household Durables (0.3%):
	2,800	Alpine Electronics, Inc.(a)		58,007
	11,076	Berkeley Group Holdings plc (The)(a)		627,071
	1,485	Coway Co., Ltd.(a)		135,315
	5,268	Mohawk Industries, Inc.*(a)		1,453,441
	400	Panasonic Corp.(a)		5,859
	200	Sony Corp.(a)		8,985

				2,288,678

Household Products (0.0%):
	1,498	Colgate-Palmolive Co.(a)		113,024
	227	Hindustan Unilever, Ltd.(a)		4,856
	38	Kimberly-Clark Corp.(a)		4,585
	256	Procter & Gamble Co. (The)(a)		23,521
	31	Reckitt Benckiser Group plc(a)		2,895
	200	Unicharm Corp.(a)		5,200

				154,081


Shares			Fair Value
Common Stocks, continued
Independent Power & Renewable Electricity Producers (0.1%):
	4,000	China Resources Power Holdings Co.(a)	$	7,448
	14,067	NextEra Energy Partners LP^(a)		606,429
	10,679	Vistra Energy Corp.*^(a)		195,639

				809,516

Industrial Conglomerates (0.7%):
	240	3M Co., Class C(a)		56,489
	93,186	General Electric Co.(a)		1,626,096
	2,000	Jardine Matheson Holdings, Ltd.(a)		121,429
	75,244	Koninklijke Philips Electronics NV(a)		2,846,238
	3,708	Siemens AG, Registered Shares(a)		514,418
	29,751	Smiths Group plc(a)		595,059
	4,000	Toshiba Corp.*^(a)		11,245

				5,770,974

Insurance (0.7%):
	10,427	Allstate Corp. (The)(a)		1,091,811
	51	American International Group, Inc.(a)		3,039
	78	Aon plc(a)		10,452
	278	Aviva plc(a)		1,900
	33,007	AXA SA(a)		978,156
	75,000	Cathay Financial Holding Co., Ltd.(a)		134,516
	6,959	Chubb, Ltd.(a)		1,016,919
	2,275	Hartford Financial Services Group, Inc. (The)(a)		128,037
	1,727	Legal & General Group plc(a)		6,356
	10,324	Marsh & McLennan Cos., Inc.(a)		840,270
	24,886	MetLife, Inc.(a)		1,258,236
	2	Muenchener Rueckversicherungs-Gesellschaft AG(a)		434
	12	Progressive Corp. (The)(a)		676
	502	Prudential Financial, Inc.(a)		57,720
	53	Prudential plc(a)		1,362
	364	Reinsurance Group of America, Inc.(a)		56,759
	4,671	SBI Life Insurance Co., Ltd.*(a)		50,955
	15	Swiss Re AG(a)		1,404
	19,500	Tokio Marine Holdings, Inc.(a)		890,126
	1,202	Travelers Cos., Inc. (The)(a)		163,039
	35	Zurich Insurance Group AG(a)		10,647

				6,702,814

Internet & Direct Marketing Retail (0.6%):
	3,625	Amazon.com, Inc.*(a)		4,239,328
	149	Expedia, Inc.(a)		17,846
	7	Priceline Group, Inc. (The)*(a)		12,164
	200	Rakuten, Inc.(a)		1,829
	16,758	TripAdvisor, Inc.*^(a)		577,481

				4,848,648

Internet Software & Services (1.3%):
	4,334	Alibaba Group Holding, Ltd., ADR*^(a)		747,311
	24	Alphabet, Inc., Class A*(a)		25,282
	4,113	Alphabet, Inc., Class C*(a)		4,303,844
	55,564	Cloudera, Inc.*^(a)		917,917
	95,700	Dropbox, Inc.*(a)(b)(c)		1,358,940
	295	eBay, Inc.*(a)		11,133
	15,296	Facebook, Inc., Class A*(a)		2,699,132
	5,547	Lookout, Inc.*(a)(b)(c)		1,165


Shares			Fair Value
Common Stocks, continued
Internet Software & Services, continued
	100	Tencent Holdings, Ltd.(a)	$	5,170
	660	VeriSign, Inc.*^(a)		75,530

				10,145,424

IT Services (0.8%):
	514	Accenture plc, Class C(a)		78,689
	151	Alliance Data Systems Corp.(a)		38,275
	12	Amadeus IT Holding SA(a)		864
	1,070	Amdocs, Ltd.(a)		70,064
	17	Automatic Data Processing, Inc.(a)		1,992
	46	Cognizant Technology Solutions Corp., Class A(a)		3,267
	59	DXC Technology Co.(a)		5,599
	9,393	FleetCor Technologies, Inc.*(a)		1,807,496
	2,000	Fujitsu, Ltd.(a)		14,178
	6,615	Global Payments, Inc.(a)		663,088
	198	HCL Technologies, Ltd.(a)		2,763
	85,114	Infosys, Ltd.(a)		1,387,963
	7,635	International Business Machines Corp.(a)		1,171,362
	5,504	MasterCard, Inc., Class A(a)		833,085
	332	Tech Mahindra, Ltd.(a)		2,619
	7,110	Visa, Inc., Class A(a)		810,682

				6,891,986

Life Sciences Tools & Services (0.0%):
	54	Agilent Technologies, Inc.(a)		3,616
	14	Illumina, Inc.*(a)		3,059
	13	IQVIA Holdings, Inc.*(a)		1,273
	718	Thermo Fisher Scientific, Inc.(a)		136,334

				144,282

Machinery (0.5%):
	255	Caterpillar, Inc.(a)		40,183
	209	Cummins, Inc.(a)		36,918
	20,258	Doosan Bobcat, Inc.(a)		677,651
	10,308	GEA Group AG(a)		494,199
	7,200	Hino Motors, Ltd.(a)		93,411
	333	Illinois Tool Works, Inc.(a)		55,561
	85	Ingersoll-Rand plc(a)		7,581
	28,100	Komatsu, Ltd.(a)		1,018,014
	29,500	Kubota Corp.(a)		577,737
	125	PACCAR, Inc.(a)		8,885
	165	Sandvik AB(a)		2,885
	33,134	SKF AB, Class B(a)		735,011
	452	Volvo AB, Class B(a)		8,413
	334	WABCO Holdings, Inc.*(a)		47,929

				3,804,378

Marine (0.0%):
	1	A.P. Moeller — Maersk A/S, Class A(a)		1,667
	3	A.P. Moeller — Maersk A/S, Class B(a)		5,229

				6,896

Media (1.1%):
	4,341	Charter Communications, Inc., Class A*(a)		1,458,402
	97,369	Comcast Corp., Class A(a)		3,899,628


Shares			Fair Value
Common Stocks, continued
Media, continued
	8,573	DISH Network Corp., Class A*(a)	$	409,361
	15,329	I-Cable Communications, Ltd.*(a)		451
	2,623	Liberty Broadband Corp., Class A*(a)		223,086
	8,271	Liberty Broadband Corp., Class C*(a)		704,358
	11,226	Liberty Global plc, Class A*^(a)		402,340
	64	Liberty Global plc, Series C*(a)		2,166
	9,407	Liberty SiriusXM Group, Class A*(a)		373,082
	15,764	Liberty SiriusXM Group, Class C*(a)		625,200
	9,400	Nippon Television Holdings, Inc.(a)		161,064
	84,407	RAI Way SpA(a)		515,220
	72	Time Warner, Inc.(a)		6,586
	3,100	Toho Co., Ltd.(a)		107,390
	6,800	TV Asahi Holdings Corp.(a)		136,519
	48	Vivendi Universal SA(a)		1,291
	54,080	Zon Multimedia Servicos de Telecommunicacoes e Multimedia SGPS SA(a)		355,537

				9,381,681

Metals & Mining (0.0%):
	35	Anglo American plc(a)		731
	128	Barrick Gold Corp.(a)		1,852
	280	BHP Billiton, Ltd.(a)		6,444
	1,900	DOWA Mining Co.(a)		77,607
	569	Eregli Demir ve Celik Fabrikalari T.A.S.(a)		1,503
	72,391	Platinum Group Metals, Ltd.*(a)		22,007
	11,061	Platinum Group Metals, Ltd.*(a)		3,344
	533	POSCO(a)		165,520
	103	Rio Tinto plc(a)		5,435
	94	Rio Tinto, Ltd.(a)		5,546
	249	Teck Cominco, Ltd., Class B(a)		6,512
	14,200	Tokyo Steel Manufacturing Co., Ltd.(a)		127,463
	326	Vale SA(a)		3,958
	550	Vedanta, Ltd.(a)		2,835
	2,900	Yamato Kogyo Co., Ltd.(a)		84,067

				514,824

Multiline Retail (0.1%):
	437	Kohl’s Corp.^(a)		23,699
	12,784	Target Corp.(a)		834,156

				857,855

Multi-Utilities (0.3%):
	73	AGL Energy, Ltd.(a)		1,385
	809	CenterPoint Energy, Inc.(a)		22,943
	1,789	Centrica plc(a)		3,312
	2,096	Dominion Energy, Inc.(a)		169,902
	803	E.ON AG(a)		8,706
	44	Engie Group(a)		756
	61,469	Innogy Se(a)		2,395,177
	3,630	National Grid plc(a)		42,633
	6,944	Sempra Energy(a)		742,452

				3,387,266


Shares			Fair Value
Common Stocks, continued
Oil, Gas & Consumable Fuels (2.1%):
	34,776	Anadarko Petroleum Corp.(a)	$	1,865,385
	33,191	BP plc, ADR(a)		1,395,018
	53,501	BP plc(a)		377,244
	337	Chevron Corp.(a)		42,189
	7,000	CNOOC, Ltd.(a)		10,064
	25,479	Coal India, Ltd.(a)		104,979
	107	ConocoPhillips Co.(a)		5,873
	134,367	EnCana Corp.(a)		1,791,113
	9,739	EQT Corp.(a)		554,344
	344	Exxon Mobil Corp.(a)		28,772
	23,000	Formosa Petrochemical Corp.(a)		89,170
	415	Hindustan Petroleum Corp., Ltd.(a)		2,721
	323	Indian Oil Corp., Ltd.(a)		1,966
	208	Kinder Morgan, Inc.(a)		3,759
	19,519	Marathon Petroleum Corp.(a)		1,287,864
	37,305	Oil & Natural Gas Corp., Ltd.(a)		114,059
	49	ONEOK, Inc.(a)		2,619
	354	Petroleo Brasileiro SA*(a)		1,719
	587	Phillips 66(a)		59,375
	9,688	Pioneer Natural Resources Co.(a)		1,674,571
	43	Polski Koncern Naftowy Orlen SA(a)		1,306
	1,205	Polskie Gornictwo Naftowe i Gazownictwo SA(a)		2,175
	127,411	Reliance Industries, Ltd.(a)		1,838,318
	53	Repsol SA(a)		937
	70	Royal Dutch Shell plc, Class A(a)		2,343
	24,408	Royal Dutch Shell plc, Class A, ADR(a)		1,628,258
	38,168	Royal Dutch Shell plc, Class A(a)		1,272,706
	429	Royal Dutch Shell plc, Class B(a)		14,466
	31	SK Energy Co., Ltd.(a)		5,904
	14,967	Snam SpA(a)		73,273
	6	Suncor Energy, Inc.(a)		220
	32,300	Thai Oil Public Co., Ltd.(a)		102,614
	650	Total SA, ADR(a)		35,932
	17,028	Total SA(a)		939,410
	233	Tupras-Turkiye Petrol Rafine(a)		7,472
	1,337	Valero Energy Corp.(a)		122,884
	94,613	Williams Cos., Inc. (The)(a)		2,884,749

				18,345,771

Personal Products (0.2%):
	1,344	Amorepacific Corp.(a)		381,775
	19,407	Edgewell Personal Care Co.*^(a)		1,152,582
	100	Kao Corp.(a)		6,765
	180	LG Household & Health Care, Ltd.(a)		199,582
	162	Unilever NV(a)		9,101

				1,749,805

Pharmaceuticals (1.0%):
	8	Allergan plc(a)		1,309
	71,200	Astellas Pharma, Inc.(a)		904,439
	20,048	Bayer AG, Registered Shares(a)		2,493,165
	23	Bristol-Myers Squibb Co.(a)		1,409
	64,215	GlaxoSmithKline plc(a)		1,135,608
	2,439	Gw Pharmaceuticals, ADR*(a)		321,972


Shares			Fair Value
Common Stocks, continued
Pharmaceuticals, continued
	1,315	Johnson & Johnson Co.(a)	$	183,732
	89	Merck & Co., Inc.(a)		5,008
	100	Mitsubishi Tanabe Pharma Corp.(a)		2,062
	101	Novartis AG, Registered Shares(a)		8,541
	2,100	Otsuka Holdings Co., Ltd.(a)		91,977
	78,571	Pfizer, Inc.(a)		2,845,842
	69	Roche Holding AG(a)		17,457
	12,986	Sanofi-Aventis SA(a)		1,118,004
	200	Shionogi & Co., Ltd.(a)		10,815
	10	UCB SA(a)		792

				9,142,132

Professional Services (0.1%):
	29	Experian plc(a)		637
	290	Manpower, Inc.(a)		36,572
	8,345	Randstad Holding NV(a)		511,953
	3	SGS SA, Registered Shares(a)		7,822

				556,984

Real Estate Management & Development (0.7%):
	301,000	CapitaLand, Ltd.(a)		793,226
	30,000	Hang Lung Properties, Ltd.(a)		73,213
	600	Hongkong Land Holdings, Ltd.(a)		4,219
	1,000	Longfor Properties Co., Ltd.(a)		2,506
	56,000	Sino Land Co., Ltd.(a)		99,149
	112,666	Sun Hung Kai Properties, Ltd.(a)		1,876,832
	12,000	Swire Pacific, Ltd., Class A(a)		111,073
	600	Swire Properties, Ltd.(a)		1,935
	42,143	The St. Joe Co.*^(a)		760,681
	14,611	Vonovia SE(a)		723,158
	19,000	Wharf Holdings, Ltd. (The)(a)		65,703
	20,000	Wharf Real Estate Investment Co., Ltd.*(a)		133,118

				4,644,813

Road & Rail (0.7%):
	78	Canadian National Railway Co.(a)		6,433
	66,400	ComfortDelGro Corp., Ltd.(a)		98,217
	32	CSX Corp.(a)		1,760
	20,600	East Japan Railway Co.(a)		2,008,583
	12,483	Kansas City Southern(a)		1,313,461
	100	Kintetsu Corp.(a)		3,825
	12,000	Kyushu Railway Co.(a)		371,344
	21	Norfolk Southern Corp.(a)		3,043
	5,300	Seino Holdings Co., Ltd.(a)		83,945
	28	Union Pacific Corp.(a)		3,755
	7,900	West Japan Railway Co.(a)		576,407

				4,470,773

Semiconductors & Semiconductor Equipment (0.6%):
	259	Applied Materials, Inc.(a)		13,240
	2	Broadcom, Ltd.(a)		514
	1,690	Intel Corp.(a)		78,010
	554	KLA-Tencor Corp.(a)		58,209
	45	Lam Research Corp.(a)		8,283
	164	Micron Technology, Inc.*(a)		6,744


Shares			Fair Value
Common Stocks, continued
Semiconductors & Semiconductor Equipment, continued
	7	NVIDIA Corp.(a)	$	1,355
	53,731	QUALCOMM, Inc.(a)		3,439,858
	28,800	Renesas Electronics Corp.*(a)		333,410
	11,600	ROHM Co., Ltd.(a)		1,278,124
	73	SK Hynix, Inc.(a)		5,155
	17,000	Taiwan Semiconductor Manufacturing Co., Ltd.(a)		130,666
	134	Texas Instruments, Inc.(a)		13,995

				5,367,563

Software (1.6%):
	10,014	Activision Blizzard, Inc.(a)		634,086
	547	Adobe Systems, Inc.*(a)		95,856
	8	Autodesk, Inc.*(a)		839
	335	CA, Inc.(a)		11,149
	107	Check Point Software Technologies, Ltd.*^(a)		11,087
	101	Dell Technologies, Inc., Class V*(a)		8,209
	6,063	Electronic Arts, Inc.*(a)		636,979
	584	Intuit, Inc.(a)		92,144
	86,582	Microsoft Corp.(a)		7,406,224
	308	Oracle Corp.(a)		14,562
	111	SAP AG(a)		12,445
	39,037	Snap, Inc., Class A*^(a)		570,331
	33	Symantec Corp.^(a)		926
	68,532	Uber Technologies, Inc.*(a)(b)(c)		2,259,500
	5,380	VMware, Inc., Class A*^(a)		674,222

				12,428,559

Specialty Retail (0.4%):
	621	Home Depot, Inc. (The)(a)		117,698
	1,660	Hotel Shilla Co., Ltd.(a)		131,425
	2,231	Lowe’s Cos., Inc.(a)		207,349
	7,865	O’Reilly Automotive, Inc.*^(a)		1,891,847
	323	Ross Stores, Inc.(a)		25,921
	700	Shimamura Co., Ltd.(a)		77,004
	8,454	TJX Cos., Inc. (The)(a)		646,393
	11,753	Williams-Sonoma, Inc.^(a)		607,630

				3,705,267

Technology Hardware, Storage & Peripherals (0.8%):
	32,737	Apple, Inc.(a)		5,540,082
	430	Hewlett Packard Enterprise Co.(a)		6,175
	659	HP, Inc.(a)		13,846
	4,000	Pegatron Corp.(a)		9,670
	45,476	Pure Storage, Inc., Class A*^(a)		721,249
	9	Samsung Electronics Co., Ltd.(a)		21,385
	517	Western Digital Corp.(a)		41,117

				6,353,524

Textiles, Apparel & Luxury Goods (0.1%):
	16	Adidas AG(a)		3,194
	12,670	Luxottica Group SpA(a)		776,341
	4	LVMH Moet Hennessy Louis Vuitton SA(a)		1,175
	239	PVH Corp.(a)		32,793
	78	Swatch Group AG (The), Registered Shares(a)		5,963

				819,466


Shares			Fair Value
Common Stocks, continued
Thrifts & Mortgage Finance (0.0%):
	7,983	Housing Development Finance Corp., Ltd.(a)	$	213,678

Tobacco (0.1%):
	174	Imperial Tobacco Group plc, Class A(a)		7,434
	100	Japan Tobacco, Inc.(a)		3,221
	5,110	KT&G Corp.(a)		551,488
	135	Philip Morris International, Inc.(a)		14,263

				576,406

Trading Companies & Distributors (0.0%):
	700	Marubeni Corp.(a)		5,084
	433	United Rentals, Inc.*(a)		74,437

				79,521

Transportation Infrastructure (0.0%):
	65	Aena SA(a)		13,157
	46	Atlantia SpA(a)		1,451
	3,800	Kamigumi Co., Ltd.(a)		83,999

				98,607

Wireless Telecommunication Services (0.6%):
	33,500	Advanced Information Service plc(a)		196,365
	1,000	China Mobile, Ltd.(a)		10,123
	111,000	Far EasTone Telecommunications Co., Ltd.(a)		274,200
	85,100	Intouch Holdings Public Co., Ltd.(a)		146,765
	5,500	KDDI Corp.(a)		136,954
	26	MTN Group, Ltd.(a)		288
	646	SK Telecom Co., Ltd.(a)		161,196
	99,000	Taiwan Mobile Co., Ltd.(a)		357,659
	20,129	Vodafone Group plc, ADR^(a)		642,115
	750,920	Vodafone Group plc(a)		2,371,754

				4,297,419

	Total Common Stocks (Cost $186,122,892)			233,902,661

Preferred Stocks (0.4%):
Banks (0.1%):
	240	Banco Bradesco SA, 0.51%(a)		2,450
	14,150	Citigroup Capital XIII, Series A, 3.49%^(a)		388,842
	318	Itau Unibanco Holding SA, Preferred Shares, Series S, 0.42%(a)		4,083
	84,000	USB Capital IX, 3.50%(US0003M+102bps)(a)		76,020

				471,395

Consumer Finance (0.1%):
	16,151	GMAC Capital Trust I, Series 2, 1.54%^(a)		419,118

Health Care Providers & Services (0.1%):
	16,042	Anthem, Inc., 4.82%^(a)		898,353
	143,925	Grand Rounds, Inc., Series C*(a)(b)(c)		410,186

				1,308,539

Internet Software & Services (0.1%):
	63,925	Lookout, Inc., Preffered Shares, Series F*(a)(b)(c)		596,420

Software (0.0%):
	116,157	Palantir Technologies, Inc., Series I*(a)(b)(c)		658,610

Technology Hardware, Storage & Peripherals (0.0%):
	4	Samsung Electronics Co., Ltd., 1.34%(a)		7,799

	Total Preferred Stocks (Cost $3,360,442)			3,461,881


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
Warrant (0.0%):
Paper & Forest Products (0.0%):
	157,250	TFS Corp., Ltd.(a)	$	11

	Total Warrant (Cost $—)			11

Convertible Preferred Stocks (0.5%):
Banks (0.0%):
	125	Wells Fargo & Co., Series L, Class A, 7.5%(a)		163,749

Equity Real Estate Investment Trusts (0.1%):
	526	Crown Castle International Corp., Series A, 8.68%^(a)		593,749
	6,022	Welltower, Inc., Series I, 6.50%^(a)		360,537

				954,286

Internet Software & Services (0.1%):
	144,482	Domo, Inc., Series E*(a)(b)(c)		905,902

Multi-Utilities (0.1%):
	12,830	Dominion Resources, Inc., Series A, 6.75%^(a)		662,798

Wireless Telecommunication Services (0.2%):
	6,269	Mandatory Exchange Trust, 5.75%(a)(d)		1,220,950

	Total Convertible Preferred Stocks (Cost $3,430,141)			3,907,685

Private Placements (0.0%):
Household Durables (0.0%):
$	3,065,000	AliphCom, Inc., 12.00%, 4/1/20(a)(b)(c)		12,567
	23,389	Jawbone, 0.00%*(a)(b)(c)		31,893

				44,460

Oil, Gas & Consumable Fuels (0.0%):
	268,000	Aliphcom, 12.00%, 4/1/20(a)(b)(c)		1,099

	Total Private Placements (Cost $3,333,000)			45,559

Convertible Bonds (0.2%):
Food Products (0.0%):
	400,000	REI Agro, Ltd., Registered Shares, 5.50%, 11/13/14(a)(b)(c)(e)		—

Oil, Gas & Consumable Fuels (0.1%):
	631,620	Dana Gas Sukuk, Ltd., 7.00%, 10/31/18(a)(b)		517,928

Pharmaceuticals (0.1%):
	600,000	Bayer Capital Corp. BV, 5.63%, 11/22/19+(a)(d)		808,943

Real Estate Management & Development (0.0%):
	250,000	CapitaLand, Ltd., 1.95%, 10/17/23+(a)(d)		188,374

	Total Convertible Bonds (Cost $1,851,930)			1,515,245

Bank Loans (0.2%):
Capital Markets (0.1%):
	101,695	Sheridan Production Partners, 4.98%, 12/2/20(a)		87,796
	37,937	Sheridan Production Partners, 4.98%, 12/16/20(a)(f)		32,752
	730,890	Sheridan Production Partners, 4.98%, 12/16/20(a)(f)		631,000

				751,548

Energy Equipment & Services (0.0%):
	371,737	Seadrill, Ltd., 4.69%, 2/21/21(a)		299,248

Hotels, Restaurants & Leisure (0.1%):
	522,684	Hilton Worldwide Finance LLC, 3.55%, 10/25/23(a)		525,099


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
Bank Loans, continued
Oil, Gas & Consumable Fuels (0.0%):
$	254,386	Fieldwood Energy LLC, 8.69%, 9/30/20(a)	$	81,614
	111,961	Fieldwood Holdings LLC, 8.82%, 8/31/20(a)		100,765

				182,379

	Total Bank Loans (Cost $2,021,409)			1,758,274

Collateralized Mortgage Obligations (0.1%):
	459,000	Logistics UK, Class F, Series 2015-1A, 1.21%, 8/20/25(a)(b)(g)		617,841

	Total Collateralized Mortgage Obligations (Cost $691,605)			617,841

Corporate Bonds (1.2%):
Banks (0.3%):
	348,000	Bank of America Corp., 3.30%, 1/11/23, MTN(a)		356,003
	162,000	Bank of America Corp., 4.00%, 1/22/25, MTN(a)		168,539
	312,000	Citigroup, Inc., 2.70%, 3/30/21(a)		312,948
	149,000	Citigroup, Inc., 2.90%, 12/8/21, Callable 11/8/21 @ 100(a)		149,981
	373,000	Citigroup, Inc., Series O, 5.87% (US0003M + 406 bps), 12/29/49, Callable 3/27/20 @ 100(a)		386,987
	137,000	JPMorgan Chase & Co., 4.35%, 8/15/21(a)		145,304
	351,000	JPMorgan Chase & Co., 2.36% (US0003M + 100 bps), 1/15/23, Callable 1/15/22 @ 100(a)		355,723
	85,000	Santander Holdings USA, 3.70%, 3/28/22, Callable 2/28/22 @ 100(a)(d)		86,023

				1,961,508

Capital Markets (0.1%):
	323,000	Goldman Sachs Group, Inc. (The), Series M, 5.38% (US0003M + 392 bps), 12/31/49, Callable 5/10/20 @ 100(a)		332,690
	228,000	Morgan Stanley, Series H, 5.45% (US0003M + 361 bps), 7/29/49, Callable 7/15/19 @ 100(a)		234,042

				566,732

Chemicals (0.0%):
	115,000	Sherwin-Williams, 2.75%, 6/1/22, Callable 5/1/22 @ 100(a)		114,554

Communications Equipment (0.0%):
	53,000	Hughes Satellite Systems Corp., 7.63%, 6/15/21(a)		58,565

Consumer Finance (0.1%):
	191,000	Ally Financial, Inc., 3.50%, 1/27/19(a)		191,955
	200,000	American Express Co., Series C, 4.90% (US0003M + 329 bps), 12/29/49, Callable 3/15/20 @ 100^(a)		204,000
	125,000	General Motors Financial Co., Inc., 3.45%, 4/10/22, Callable 2/10/22 @ 100(a)		126,666
	87,000	Synchrony Financial, 3.75%, 8/15/21, Callable 6/15/21 @ 100(a)		89,211

				611,832

Diversified Telecommunication Services (0.5%):
	475,000	AT&T, Inc., 3.00%, 6/30/22, Callable 4/30/22 @ 100(a)		475,844
	465,000	AT&T, Inc., 2.85%, 2/14/23, Callable 1/14/23 @ 100(a)		466,844


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
Corporate Bonds, continued
Diversified Telecommunication Services, continued
$	75,000	AT&T, Inc., 4.45%, 4/1/24, Callable 1/1/24 @ 100(a)	$	79,336
	831,000	AT&T, Inc., 3.40%, 8/14/24, Callable 6/14/24 @ 100^(a)		835,267
	1,506,000	Verizon Communications, 3.13%, 3/16/22(a)		1,526,941
	149,000	Verizon Communications, Inc., 2.63%, 8/15/26		140,341

				3,524,573

Health Care Equipment & Supplies (0.1%):
	135,000	Becton Dickinson & Co., 3.36%, 6/6/24, Callable 4/6/24 @ 100(a)		135,377
	306,000	Becton, Dickinson & Co., 3.13%, 11/8/21(a)		308,581
	245,000	Becton, Dickinson & Co., 2.89%, 6/6/22, Callable 5/6/22 @ 100(a)		243,467

				687,425

Industrial Conglomerates (0.0%):
	318,000	General Electric Co., Series D, 5.00% (US0003M + 333 bps), 12/31/49, Callable 1/21/21 @ 100(a)		327,731

Insurance (0.0%):
	173,000	Prudential Financial, Inc., 5.87% (US0003M + 418 bps), 9/15/42, Callable 9/15/22 @ 100(a)		189,003
	115,000	Prudential Financial, Inc., 5.63% (US0003M + 392 bps), 6/15/43, Callable 6/15/23 @ 100^(a)		124,545

				313,548

Internet Software & Services (0.0%):
	159,000	eBay, Inc., 2.75%, 1/30/23, Callable 12/30/22 @ 100(a)		157,451

Media (0.0%):
	200,000	NBCUniversal Enterprise, Inc., 5.25%, 12/31/99, Callable 3/19/21 @ 100(a)(d)		212,500

Oil, Gas & Consumable Fuels (0.0%):
	151,147	Fieldwood Energy LLC, 8.82%, 9/30/20(a)		103,788

Personal Products (0.0%):
	171,000	Edgewell Personal Care Co., 4.70%, 5/19/21(a)		176,558
	149,000	Edgewell Personal Care Co., 4.70%, 5/24/22(a)		152,725

				329,283

Pharmaceuticals (0.0%):
	149,000	Forest Laboratories, Inc., 5.00%, 12/15/21, Callable 9/16/21 @ 100(a)(d)		159,352

Software (0.0%):
	80,000	Activision Blizzard, Inc., 2.30%, 9/15/21, Callable 8/15/21 @ 100(a)		78,950

Technology Hardware, Storage & Peripherals (0.1%):
	531,000	Apple, Inc., 3.35%, 2/9/27, Callable 11/9/26 @ 100(a)		543,942
	510,000	Apple, Inc., 3.20%, 5/11/27, Callable 2/11/27 @ 100(a)		516,477

				1,060,419

	Total Corporate Bonds (Cost $10,170,606)			10,268,211


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
Foreign Bonds (4.1%):
Banks (0.1%):
$	330,000	Lloyds TSB Bank plc, Series E, 13.00%(GUKG5+1,340bps), 1/29/49, Callable 1/21/29 @ 126+(a)	$	834,577

Sovereign Bond (4.0%):
	1,888,000	Australian Government, Series 124, 5.75%, 5/15/21+(a)(d)		1,642,203
	2,111,000	Australian Government, Series 133, 5.50%, 4/21/23+(a)(d)		1,900,923
	4,986,000	Australian Government, Series 137, 2.75%, 4/21/24+(a)(d)		3,952,969
	1,269,000	Australian Government, 3.00%, 3/21/47+(a)(d)		923,680
	1,145,000	Brazil Nota do Tesouro Nacional, Series NTNB, 6.00%, 8/15/22+(a)(h)		1,127,464
	6,911,000	Brazil Nota do Tesouro Nacional, Series NTNF, 10.00%, 1/1/23+(a)(h)		2,109,357
	4,930,000	Brazil Nota do Tesouro Nacional, Series NTNF, 0.15%, 1/1/27+(a)(h)		1,466,084
	1,778,707	Bundesrepub. Deutshland, 0.29%, 8/15/26+(a)(d)		2,081,595
	4,001,000	Canadian Government, 0.50%, 8/1/18+(a)		3,168,105
	1,018,000	Canadian Government, 0.75%, 3/1/21+(a)		784,536
	532,000	Italy Buoni Poliennali Del Tesoro, 1.85%, 5/15/24+(a)		660,358
	218,500,000	Japan Treasury Discount Bill, Series 362, 0.10%, 3/15/18+(a)		1,940,395
	273,450,000	Japan Treasury Discount Bill, Series 369, 0.10%, 10/15/18+(a)		2,431,899
	29,209,300	Mexican Bonos Desarr, 8.50%, 12/13/18+(a)(i)		1,496,333
	3,672,000	Poland Government Bond, Series 0725, 3.25%, 7/25/25+(a)		1,064,128
	3,695,000	Poland Government Bond, Series 0726, 2.50%, 7/25/26+(a)		1,004,320
	12,214,000	Poland Government Bond, 2.50%, 7/25/27+(a)		3,283,897
	217,000	Republic of Argentina, 3.88%, 1/15/22+(a)(d)		274,011
	410,000	Republic of Argentina, 3.38%, 1/15/23+(a)		501,607
	28,603,100	United Mexican States, 6.50%, 6/9/22+(a)(i)		1,392,733

				33,206,597

	Total Foreign Bonds (Cost $32,986,675)			34,041,174

Yankee Dollars (1.3%):
Banks (0.1%):
	273,000	Export-Import Bank of Korea, 2.63%, 12/30/20(a)		270,589
	614,000	HSBC Holdings plc, 6.38% (USISDA05 + 371 bps), 12/29/49, Callable 9/17/24 @ 100(a)		653,910

				924,499

Capital Markets (0.0%):
	207,000	UBS Group AG, 4.13%, 9/24/25(a)(d)		217,237

Diversified Telecommunication Services (0.1%):
	260,000	Intelsat Jackson Holdings SA, 7.50%, 4/1/21, Callable 2/5/18 @ 102.5(a)		236,600
	89,000	Intelsat Jackson Holdings SA, 8.00%, 2/15/24, Callable 2/15/19 @ 104^(a)(d)		93,673
	289,000	Telecom Italia SpA, 5.30%, 5/30/24^(a)(d)		308,508

				638,781


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
Yankee Dollars, continued
Food Products (0.0%):
$	408,000	Danone SA, 2.59%, 11/2/23, Callable 9/2/23 @ 100(a)(d)	$	397,884

Industrial Conglomerates (0.0%):
	200,000	Odebrecht Finance, Ltd., 4.38%, 4/25/25(a)(d)		59,000

Oil, Gas & Consumable Fuels (0.2%):
	288,000	Petrobras Global Finance, 6.13%, 1/17/22(a)		305,640
	340,000	Petrobras Global Finance, 7.38%, 1/17/27^(a)		374,340
	339,000	Petroleos Mexicanos, 5.19% (US0003M + 365 bps), 3/11/22^(a)(d)		372,220
	754,000	Petroleos Mexicanos, 4.63%, 9/21/23(a)		775,677

				1,827,877

Paper & Forest Products (0.1%):
	1,018,000	TFS Corp., Ltd., 8.75%, 8/1/23, Callable 8/1/19 @ 106.56(a)(b)		712,600

Pharmaceuticals (0.0%):
	300,000	Actavis Funding SCS, 3.45%, 3/15/22, Callable 1/15/22 @ 100(a)		304,816

Road & Rail (0.0%):
	527,380	Inversiones Alsacia SA, 8.00%, 12/31/18, Callable 1/22/18 @ 100(a)(b)(e)		13,185

Sovereign Bond (0.8%):
	1,071,000	Federal Republic of Brazil, 4.63%, 1/13/28, Callable 10/13/27 @ 100^(a)		1,075,820
	747,000	Federal Republic of Brazil, 5.00%, 1/27/45(a)		696,204
	206,000	Federal Republic of Brazil, 5.63%, 2/21/47^(a)		210,429
	429,000	Republic of Argentina, 6.88%, 4/22/21(a)		467,181
	780,000	Republic of Argentina, 5.63%, 1/26/22^(a)		822,900
	729,000	Republic of Argentina, 7.50%, 4/22/26^(a)		825,336
	527,000	Republic of Argentina, 6.88%, 1/26/27^(a)		575,748
	874,000	Republic of Hungary, 6.38%, 3/29/21(a)		970,210
	200,000	Republic of Indonesia, 3.70%, 1/8/22(a)(d)		205,553
	144,000	Republic of Poland, 5.00%, 3/23/22(a)		157,680

				6,007,061

	Total Yankee Dollars (Cost $11,673,197)			11,102,940

U.S. Treasury Obligations (10.9%):
U.S. Treasury Bills (3.3%)
	9,000,000	1.06%, 1/2/18(a)(j)		9,000,000
	14,000,000	0.57%, 1/4/18(a)(j)		13,999,117
	1,000,000	0.96%, 1/11/18(a)(j)		999,706
	3,000,000	1.10%, 1/18/18(a)(j)		2,998,348


Contracts, Shares, Notional Amount or Principal Amount			Fair Value
U.S. Treasury Obligations, continued
U.S. Treasury Bills, continued
$	1,000,000	1.19%, 2/1/18(a)(j)	$	998,945

				27,996,116

U.S. Treasury Notes (7.6%)
	1,000,000	1.25%, 12/15/18(k)		994,766
	872,100	1.13%, 7/31/21(a)		843,348
	13,205,400	2.00%, 10/31/22(a)		13,090,369
	13,953,200	2.00%, 11/30/22(a)		13,826,204
	10,100,400	2.13%, 9/30/24(a)		9,973,356
	10,490,000	2.25%, 10/31/24(a)		10,441,648
	13,706,800	2.25%, 11/15/27(a)		13,513,513

				62,683,204

	Total U.S. Treasury Obligations (Cost $91,039,322)			90,679,320

Purchased Options (0.1%):
	Total Purchased Options (Cost $815,159)			1,171,821

Purchased Currency Options (0.0%):
	Total Purchased Options (Cost $297,701)			411,269

Purchased Swaptions (0.0%):
	Total Purchased Swaptions (Cost $287,138)			92,200

Exchange Traded Funds (1.9%):
	2,334	ETFS Platinum Trust(k)		206,489
	2,764	ETFS Physical Palladium Shares(k)		280,684
	61,700	iShares Gold Trust(k)		771,867
	116,243	SPDR Gold Trust(k)		14,373,447

	Total Exchange Traded Fund (Cost $15,147,927)			15,632,487

Securities Held as Collateral for Securities on Loan (2.1%):
$	17,308,385	AZL MVP BlackRock Global Strategy Plus Fund Securities Lending Collateral Account(l)		17,308,385

	Total Securities Held as Collateral for Securities on Loan (Cost $17,308,385)			17,308,385

Affiliated Investment Companies (45.0%):
	20,988,279	AZL Enhanced Bond Index Fund		228,562,361
	13,052,201	AZL MSCI Global Equity Index Fund		146,445,694

	Total Affiliated Investment Company (Cost $345,414,602)			375,008,055

Unaffiliated Investment Company (1.1%):
	8,839,261	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 1.11%(j)(k)		8,839,261

	Total Unaffiliated Investment Company (Cost $8,839,261)			8,839,261

	Total Investment Securities (Cost $734,791,392)(m)(l) — 97.0%			809,764,280
	Net other assets (liabilities) — 3.0%			24,400,067

	Net Assets — 100.0%		$	834,164,347

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, 2017: (Unaudited)


Country*	Percentage
Argentina		0.5	%
Australia		1.0	%
Belgium		0.2	%
Bermuda		—	%^
Brazil		1.0	%
Canada		0.7	%
Cayman Islands		—	%^
Chile		—	%^
China		0.1	%
Czech Republic		—	%^
Denmark		—	%^
European Community		0.2	%
Finland		0.1	%
France		1.4	%
Germany		1.4	%
Guernsey		—	%^
Hong Kong		0.4	%
Hungary		0.1	%
India		0.7	%
Indonesia		0.1	%
Ireland (Republic of)		—	%^
Israel		—	%^
Italy		0.6	%


Country	Percentage
Japan		4.8	%
Jersey		0.1	%
Liberia		—	%^
Luxembourg		0.1	%
Mexico		0.6	%
Netherlands		0.9	%
Norway		—	%^
Panama		—	%^
Poland		0.7	%
Portugal		0.1	%^
Republic of Korea (South)		0.3	%
Singapore		0.1	%
South Africa		—	%^
Spain		0.2	%
Sweden		0.1	%
Switzerland		0.8	%
Taiwan, Province Of China		0.3	%
Thailand		0.1	%
Turkey		—	%^
United Arab Emirates		0.2	%
United Kingdom		2.0	%
United States		80.1	%

		100.0	%

Cash of $41,090,547 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

At December 31, 2017, the Fund’s over-the-counter options purchased were as follows:

At December 31, 2017, the Funds’s over-the-counter options written were as follows:

At December 31, 2017, the Fund’s over-the-counter currency options purchased were as follows:

At December 31, 2017, the Fund’s over-the-counter currency options written were as follows:

At December 31, 2017, the Fund’s open over-the-counter interest rate swaptions purchased were as follows:

At December 31, 2017, the Fund’s open over-the-counter interest rate swaptions written were as follows:

At December 31, 2017, the Fund’s open forward currency contracts were as follows:

At December 31, 2017, the Fund’s open centrally cleared credit default swap agreements (buy protection) were as follows:

At December 31, 2017, the Fund’s open over-the-counter variance swap agreements were as follows:

At December 31, 2017, the Fund’s open over-the-counter currency swap agreements were as follows:

At December 31, 2017, the Fund’s open centrally cleared interest rate swap agreements were as follows:

At December 31, 2017, the Fund’s open over-the-counter total return swap agreements were as follows:

Consolidated Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in non-affiliates, at cost	$	389,376,790
Investments in affiliates, at cost		345,414,602

Total Investment securities, at cost	$	734,791,392

Investments in non-affiliates, at value*	$	434,756,225
Investments in affiliates, at value		375,008,055

Total Investment securities, at value	$	809,764,280
Segregated cash for collateral		42,065,547
Interest and dividends receivable		1,196,229
Foreign currency, at value (cost $263,136)		264,413
Unrealized appreciation on forward currency contracts		339,452
Unrealized appreciation on swap agreements		1,029,621
Premiums paid on swaps		25,546
Receivable for investments sold		600,983
Receivable for capital shares issued		89,172
Receivable for variation margin on swap agreements		17,779
Receivable for variation margin on futures contracts		37,272
Reclaims receivable		234,362
Prepaid expenses		7,240

Total Assets		855,671,896

Liabilities:
Cash overdraft		226,705
Cash received as collateral for derivatives		2,100,042
Written options contracts (Proceeds received $840,029)		378,577
Unrealized depreciation on swap agreements		45,659
Premiums received on swaps		81,977
Unrealized depreciation on forward currency contracts		84,440
Payable for investments purchased		414,559
Payable for collateral received on loaned securities		17,308,385
Payable for capital shares redeemed		159,701
Payable for variation margin on swap agreements		696
Interest payable on securities sold short		1,145
Accrued foreign taxes		45,834
Manager fees payable		338,738
Administration fees payable		15,935
Distribution fees payable		88,633
Custodian fees payable		17,228
Administrative and compliance services fees payable		6,201
Transfer agent fees payable		1,022
Trustee fees payable		1,497
Other accrued liabilities		190,575

Total Liabilities		21,507,549

Net Assets	$	834,164,347

Net Assets Consist of:
Capital	$	709,054,805
Accumulated net investment income/(loss)		(2,485,215	)
Accumulated net realized gains/(losses) from investment transactions		50,778,574
Net unrealized appreciation/(depreciation) on investments		76,816,183

Net Assets	$	834,164,347

Shares of beneficial interest (unlimited number of shares authorized, no par value)		66,271,296
Net Asset Value (offering and redemption price per share)	$	12.59

*	Includes securities on loan of $16,727,800.

Consolidated Statement of Operations

For the Period Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	4,890,399
Dividends		5,638,999
Interest		3,465,021
Income from securities lending		160,809
Other Income		18,474
Foreign withholding tax		(275,772	)

Total Investment Income		13,897,930

Expenses:
Manager fees		3,961,746
Administration fees		228,526
Distribution fees — Class 2		1,043,261
Custodian fees		341,133
Administrative and compliance services fees		16,060
Transfer agent fees		11,770
Trustee fees		57,135
Professional fees		62,332
Shareholder reports		33,361
Dividends on securities sold short		45,326
Recoupment of prior expenses reimbursed by the manager		3,050
Other expenses		98,120

Total expenses		5,901,820

Net Investment Income/(Loss)		7,996,110

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions and foreign currencies		18,904,114
Net realized gains/(losses) on affiliated transactions		3,443,956
Net realized gains/(losses) on futures contracts		1,443,636
Net realized gains/(losses) on written options contracts		862,277
Net realized gains/(losses) on securities transactions held short		(607,227	)
Net realized gains/(losses) on swap agreements		(71,966	)
Net realized gains/(losses) on forward currency contracts		1,124,464
Change in net unrealized appreciation/depreciation on investments and foreign currencies		29,827,617
Change in net unrealized appreciation/depreciation on affiliated transactions		27,782,226
Change in net unrealized appreciation/depreciation on futures contracts		261,254
Change in net unrealized appreciation/depreciation on written option contracts		763,098
Change in net unrealized appreciation/depreciation on securities transactions held short		114,807
Change in net unrealized appreciation/depreciation on swap agreements		760,743
Change in net unrealized appreciation/depreciation on forward currency contracts		(2,287,701	)
Change in accrued foreign tax liability		(41,298	)

Net Realized/Unrealized Gains/(Losses) on Investments		82,280,000

Change in Net Assets Resulting From Operations	$	90,276,110

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP BlackRock Global Strategy Plus Fund (the “Fund”), and 11 are presented in separate reports.

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 Fund accrues such taxes, as applicable, based on their current interpretation of tax rules in the foreign markets in which they invest.

During the year ended December 31, 2017, 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, 2017, the Fund’s aggregate investment in the VIP Subsidiary was $417,665,987, representing 50.07% 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 Subsidiaries’ financial statements, including its investments, and its operating results have been consolidated with those of the Fund which includes the consolidation of the Cayman Subsidiary. All intercompany transactions have been eliminated.

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, or from other assets and liabilities, from fluctuations arising from changes in market prices of securities held. Such fluctuations are included in the net realized and unrealized gain or loss on investments and foreign currencies. Income received by the Fund from sources within foreign countries may be subject to withholding and other income or similar taxes imposed by such countries. The Funds accrue such taxes, as applicable, based on their current interpretation of tax rules in the foreign markets in which they invest.

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.

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 Consolidated Schedule of Portfolio of Investments.

To generate additional income, the Fund may lend up to 33 1/3% of its assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. government or U.S. government agency securities, equal initially to at least 102% of the fair value plus accrued interest on the securities loaned (105% for foreign securities). The borrower of securities is at all times required to post collateral to the Fund in an amount equal to 100% of the fair value of the securities loaned based on the previous day’s fair value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. The Fund bears all of the gains and losses on such investments. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral received. In extremely low interest rate environments, the broker rebate fee may exceed the interest earned or the cash collateral which would result in a loss to the Fund. The investment of cash collateral deposited by the borrower is subject to inherent market risks such as interest rate risk, credit risk, liquidity risk, and other risks that are present in the market, and as such, the value of these investments may not be sufficient, when liquidated, to repay the borrower when the loaned security is returned. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by the Manager to be of good standing and credit worthy and when in its judgment, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Trust or the borrower at any time, and are, therefore, not considered to be illiquid investments. Securities on loan at December 31, 2017 are noted on the Fund’s Consolidated Schedule of Portfolio Investments. The average outstanding amount of securities on loan was $24 million for the year ended December 31, 2017.

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 $15,163 during the year ended December 31, 2017. These fees have been netted against “Income from securities lending” on the Consolidated Statement of Operations.

The fund had securities lending transactions of $17,308,385 accounted for as secured borrowings with cash collateral of overnight and continuous maturities as of December 31, 2017.

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, 2017, no collateral had been posted by the Fund to counterparties for TBAs.

Pursuant to Rule 17a-7 under the 1940 Act (the “Rule”), the Fund may engage in securities transactions with affiliated investment companies and advisory accounts managed by the Manager and Subadviser. 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. For the year ended December 31, 2017, the Fund participated in the following cross-trade transactions:

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

During the year ended December 31, 2017, 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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $10.4 million and the monthly average notional amount for short contracts was $15.7 million. Realized gains and losses are reported as “Net realized gains/(losses) on forward currency contracts” on the Consolidated Statement of Operations.

During the year ended December 31, 2017, 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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $42.0 million and the monthly average notional amount for short contracts was $10.5 million. 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, 2017, 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 a put 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.

For the year ended December 31, 2017, the monthly average notional amount for written options contracts was $2.0 million. Realized gains and losses are reported as “Net realized gains/(losses) on options contracts” on the Consolidated Statement of Operations.

The Fund may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. 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, 2017, 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 monthly average gross notional amount for interest rate swaps was $27 million for the year ended December 31, 2017.

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 monthly average gross notional amount for currency swaps was $4.4 million for the year ended December 31, 2017.

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 monthly average gross notional amount for total return swaps was $4.9 million for the year ended December 31, 2017.

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, 2017, 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 monthly average gross notional amount for credit default swaps was $4.7 million for the year ended December 31, 2017.

Variance swaps involve the agreement of two parties to exchange cash flows based on the measured variance (or square of the volatility) of a specified underlying asset. One party agrees to exchange a “fixed rate” or strike price payment for the “floating rate” or realized price variance on the underlying asset with respect to the notional amount. At inception, the strike price is generally chosen such that the fair value of the swaps is zero. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price variance of the underlying asset and the strike price multiplied by the notional amount. As a receiver of the realized price variance, a Portfolio would receive the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would owe the payoff amount when the variance is less than the strike price. As a payer of the realized price variance, a Portfolio would owe the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would receive the payoff amount when the variance is less than the strike price. This type of swap is essentially a forward contract on the future realized price variance of the underlying asset. The monthly average gross notional amount for variance swaps was $1.4 million for the year ended December 31, 2017.

The following is a summary of the fair values of derivative instruments on the Fund’s Consolidated Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2017:

Asset Derivatives

Liability Derivatives

Primary Risk

Statement of Assets and Liabilities Location

Total
Fair
Value

Statement of Assets and Liabilities Location

Total Fair
Value

Equity Risk

Futures Contracts

Receivable for variation margin on futures contracts*

342,807

Payable for variation margin on futures contracts*

27,649

Option Contracts

Written options contracts

302,174

Total Return Swap

Agreements

Unrealized appreciation on swap agreements

820,520

Unrealized depreciation on swap agreements

—

Credit Risk

Centrally Cleared Credit Default Swap

Agreements

Unrealized appreciation on swap agreements*

—

Unrealized depreciation on swap agreements*

6,578

Over-The-Counter Credit Default Swap

Agreements

—

16,355

Interest Rate Risk

Futures Contracts

Receivable for variation margin on futures contracts*

—

Payable for variation margin on futures contracts*

113,337

Interest Rate Swap

Agreements

Unrealized appreciation on swap agreements*

117,267

Unrealized depreciation on swap agreements*

16,937

Swaption Contracts

Written options contracts

73,459

Variance Swap Agreements

Unrealized appreciation on swap agreements

—

Unrealized depreciation on swap agreements*

20,626

Foreign Exchange Risk

Currency Swap Agreements

Unrealized appreciation on swap agreements

209,101

Unrealized depreciation on swap agreements

8,678

Forward Currency Contracts

Unrealized appreciation on forward currency contracts

339,452

Unrealized depreciation on forward currency contracts

84,440

Options Contracts

Written options contracts

2,944

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, 2017:

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, 2017. For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to master netting arrangements in the Consolidated Statement of Assets and Liabilities. This table also summarizes the fair values of derivative instruments on the Fund’s Consolidated Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2017.

As of December 31, 2017, 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 MNA and net of the related collateral received by the Fund as of December 31, 2017:

The following table presents the Fund’s derivative liabilities by counterparty net of amounts available for offset under MNA and net of the related collateral received by the Fund as of December 31, 2017:

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, 2019.

For the year ended December 31, 2017, the annual rate paid 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, 2017, there were no remaining contractual reimbursements that are subject to repayments by the Fund in subsequent years.

In addition, the Manager may voluntarily waive or reimburse additional fees in order to maintain more competitive expense ratios. Any voluntary waivers or reimbursements are not subject to repayment in subsequent years. Information on the total amount waived/reimbursed by the Manager or repaid to the Manager by the Fund during the year can be found on the Consolidated Statement of Operations. During the year ended December 31, 2017, there were no voluntary waivers.

Pursuant to separate agreements between the Funds and the Manager, the Manager provides a Chief Compliance Officer (“CCO”) and certain compliance oversight and regulatory filing services to the Trust. Under these agreements the Manager is entitled to an amount equal to a portion of the compensation and certain other expenses related to the individuals performing the CCO and compliance oversight services, as well as $100 per hour for time incurred in connection with the preparation and filing of certain documents with the Securities and Exchange Commission (“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 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, 2017, $8,542 was paid from the Fund relating to these fees and expenses.

Certain Officers and Trustees of the Trust are affiliated with the Manager or the Administrator. Such Officers (except for the Trust’s CCO as noted above) and Trustees receive no compensation from the Trust for serving in their respective roles. For their service to the Trust and to the Allianz Variable Insurance Products Fund of Funds Trust, each non-interested Trustee receives a $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 Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2017, actual Trustee compensation was $1,116,333 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 (the “Board” or “Trustees”) as of the close of the New York Stock Exchange (“NYSE”) (generally 4:00 pm Eastern Time). Equity securities are valued at the last quoted sale price or, if there is no sale, the last quoted bid price is used for long securities and the last quoted ask price is used for securities sold short. Securities listed on NASDAQ Stock Market, Inc. (“NASDAQ”) are valued at the official closing price as reported by NASDAQ. In each of these situations, valuations are typically categorized as a Level 1 in the fair value hierarchy. Investments in open-end investment companies are valued at their respective net asset value as reported by such companies and are typically categorized as Level 1 in the fair value hierarchy.

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

Futures contracts are valued at the last sales price as of the close of the primary exchange and are typically categorized as Level 1 in the fair value hierarchy.

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

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

There were no significant transfers between Levels 1 and 2 as of December 31, 2017, based on levels assigned to securities on December 31, 2016. The following is a summary of the valuation inputs used as of December 31, 2017 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, 2017, 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, 2017, purchases and sales of long-term U.S. government securities were as follows:

A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”) or pursuant to the resale limitations provided by Rule 144A under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Trustees. Not all restricted securities are considered illiquid. The illiquid restricted securities held as of December 31, 2017 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 of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $738,503,613. 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, 2017, the Fund utilized $439,156 in CLCFs to offset capital gains.

The tax character of dividends paid to shareholders during the year ended December 31, 2017 were as follows:

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

At December 31, 2017, 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, 2017, the Fund had an individual shareholder account which is affiliated with the Investment Adviser representing ownership in excess of 85% of the Fund. As of December 31, 2017, the Fund had a controlling interest (in excess of 50%) in the AZL MSCI Global Equity Index Fund, which is affiliated with the Investment Adviser.

In October 2016, the SEC released its Final Rule 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 to Regulation S-X became effective for filings made with the SEC after August 1, 2017. The compliance date for filing Form N-PORT and Form N-CEN will vary based on the reporting entity’s size and, in the case of the Fund, is expected to be April 30, 2019. The Fund’s adoption of these amendments, as applicable for the financial statements prepared as of December 31, 2017, had no effect on the Fund’s 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 and Subsidiaries (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the consolidated schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “consolidated financial statements”) and the consolidated financial highlights for each of the years in the five-year period then ended. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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 consolidated financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements and consolidated financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements and consolidated financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian, transfer agents of the underlying funds, and brokers or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and consolidated financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 100.00% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deductions available to corporate shareholders.

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.

(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, 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 and certain compliance staff, the Manager pays all of the compensation of Trustees and officers of the Trust who are employees of the Manager or its affiliates.

(2) The investment performance of the Funds and the Manager. In connection with every in-person quarterly Board meeting and the fall 2017 contract review process, Trustees received extensive information on the performance results of each Fund. 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 performance of the underlying funds, and the impact on performance of rebalancing decisions, cash and Fund fees. This included Lipper performance information on the Funds for the previous quarter, year-to-date, and previous one-, three- and five-year periods, to the extent the Funds were in existence for such periods. (For Funds which have been in existence for less than five years, the Board received performance information on shorter time periods to the extent available.) For example, in connection with the Board meeting held October 23, 2017, the Manager reported that for the five Funds for which performance information for the five year period ended June 30, 2017 was available, two were in the top 40%, two were in the middle 20%, and one was in the bottom 40%. None of these Funds was in the bottom 40% for the three- or one-year periods. The Manager reported that for the three-year period ended June 30, 2017, for the six Funds for which three year performance information was available, four Funds were in the top 40% and two Funds were in the middle 20%. For the eight Funds for which one-year performance information was available, for the one-year period ended June 30, 2017, four Funds were in the top 40%, two Funds were in the middle 20%, and two Funds were in the bottom 40%.

At the Board meeting held October 23, 2017, 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 Dynamic Funds the advisory fee paid put these Funds in the 44th percentile of the customized peer group. The Manager reported that for three MVP Index Strategy Funds the advisory fee paid put them in the 27th percentile of the customized peer group, and for the two non-MVP Index Strategy Funds, as well as the AZL DFA Multi-Strategy Fund, the advisory fee paid put them in the 13th percentile of the customized peer group. The Manager reported that for the AZL MVP BlackRock Global Strategy Plus, AZL MVP DFA Multi-Strategy, AZL MVP Pyramis Multi-Strategy, and AZL MVP T. Rowe Price Capital Appreciation Plus Funds, the advisory fee paid was in the 9th percentile. (A lower percentile reflects lower fund fees and is better for fund shareholders.) 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.

(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 Board noted that the advisory fee schedules for the Funds do not contain breakpoints that reduce the fee rate on assets above specified levels. The Board 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. The Board found there was no uniform methodology for establishing breakpoints that give effect to Fund-specific services provided by the Manager. The Board 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 Board 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 Board also noted that the total assets in all of the Funds, as of June 30, 2017, were approximately $10.8 billion and that the largest Fund, the AZL MVP Growth Index Strategy Fund, had assets of approximately $2.4 billion.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® MVP DFA Multi-Strategy Fund (the “Fund”) returned 12.55%. That compared to a 21.83%, 3.54% and a 14.26% 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.*

Global economic expansion led major stock indexes to new all-time highs during the 12-month period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low-volatility environment. Mid- and small-cap stocks also performed well during the period: The S&P MidCap 400 Index² generated a 16.24% return and the SmallCap 600 Index³ returned 13.23%. Growth stocks were also heavily favored during the year and significantly outperformed value stocks.

The Fund underperformed its composite benchmark during the period. Its domestic equity holdings were negatively impacted by a bias toward value stocks, which generally underperformed growth stocks. The Fund’s greater-than-benchmark exposure to small- and mid-cap stocks also detracted from relative results, as those stocks underperformed their large-cap counterparts. The Fund’s exposure to developed and emerging international equities contributed to returns relative to the composite benchmark, which has no non-U.S. equity exposure.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review. Given that the period was marked by low volatility, the MVP maintained a neutral equity allocation for the year relative to its target. The MVP process detracted slightly due to mismatches between the hedging instruments used and the target equity and fixed income exposure.*

Past performance does not guarantee future results.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

Investors cannot invest directly in an index.

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, 2017


	1 Year			Since Inception (4/27/15)
AZL^®MVP DFA Multi-Strategy Fund		12.55	%		5.88	%
S&P 500 Index		21.83	%		11.60	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		1.82	%
Multi-Strategy Composite Index		14.26	%		7.70	%


Expense Ratio	Gross
AZL^®MVP DFA Multi-Strategy Fund		1.21	%

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. The Manager voluntarily reduced the management fee to 0.10% on all assets. 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, 2019. Additional information pertaining to the December 31, 2017 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 indexes 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 (94.8%):
	348,926	AZL DFA Emerging Markets Core Equity Fund	$	3,914,946
	2,951,666	AZL DFA Five-Year Global Fixed Income Fund		29,516,665
	475,812	AZL DFA International Core Equity Fund		5,452,804
	2,122,228	AZL DFA U.S. Core Equity Fund		27,079,624
	622,862	AZL DFA U.S. Small Cap Fund		7,729,721

	Total Affiliated Investment Companies (Cost $65,279,881)			73,693,760

	Total Investment Securities (Cost $65,279,881)(a) — 94.8%			73,693,760
	Net other assets (liabilities) — 5.2%			4,062,809

	Net Assets — 100.0%		$	77,756,569

Percentages indicated are based on net assets as of December 31, 2017.

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

Cash of $3,876,383 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	65,279,881

Investments in affiliates, at value	$	73,693,760
Segregated cash for collateral		3,876,383
Interest and dividends receivable		3,610
Receivable for capital shares issued		195,454
Receivable for affiliated investments sold		53,948
Prepaid expenses		437

Total Assets		77,823,592

Liabilities:
Cash overdraft		53,948
Manager fees payable		5,935
Administration fees payable		3,518
Custodian fees payable		352
Administrative and compliance services fees payable		186
Transfer agent fees payable		682
Trustee fees payable		120
Other accrued liabilities		2,282

Total Liabilities		67,023

Net Assets	$	77,756,569

Net Assets Consist of:
Capital	$	67,666,311
Accumulated net investment income/(loss)		670,948
Accumulated net realized gains/(losses) from investment transactions		976,233
Net unrealized appreciation/(depreciation) on investments		8,443,077

Net Assets	$	77,756,569

Shares of beneficial interest (unlimited number of shares authorized, no par value)		6,704,698
Net Asset Value (offering and redemption price per share)	$	11.60

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	696,766
Interest		28,922
Dividends		737
Other income		130

Total Investment Income		726,555

Expenses:
Manager fees		131,324
Administration fees		47,352
Custodian fees		2,112
Administrative and compliance services fees		808
Transfer agent fees		4,635
Trustee fees		2,766
Professional fees		3,122
Shareholder reports		1,952
Other expenses		718

Total expenses before reductions		194,789
Less expenses voluntarily waived/reimbursed by the Manager		(65,661	)
Less expense contractually waived/reimbursed by the Manager		(30,855	)

Net expenses		98,273

Net Investment Income/(Loss)		628,282

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		761,545
Net realized gains distributions from affiliated underlying funds		155,576
Net realized gains/(losses) on futures contracts		334,873
Change in net unrealized appreciation/depreciation on affiliated transactions		5,859,903
Change in net unrealized appreciation/depreciation on futures contracts		32,625

Net Realized/Unrealized Gains/(Losses) on Investments		7,144,522

Change in Net Assets Resulting From Operations	$	7,772,804

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 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., miscellaneous adjustments on return of capital), 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.

During the year ended December 31, 2017, the Fund invested in futures contracts to reduce volatility and limit the need to decrease or increase allocations to underlying funds. 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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $3.4 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid to the Manager and the annual expense limit were as follows:

At December 31, 2017, the contractual reimbursements 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, 2017, $655 was paid from the Fund relating to these fees and expenses.

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.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $65,535,426. 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, 2017 were as follows:

At December 31, 2017, the components of accumulated earnings on a tax basis were as follows:

In October 2016, the SEC released its Final Rule 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 to Regulation S-X became effective for filings made with the SEC after August 1, 2017. The compliance date for form N- PORT and Form N-CEN will vary based on the reporting entity’s size and, in the case of the Fund, is expected to be April 30, 2019. The Fund’s adoption of these amendments, as applicable for the financial statements prepared as of December 31, 2017, had no effect on the Fund’s net assets or results of operations.

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, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the two-year period then ended and the from period April 27, 2015 (commencement of operations) to December 31, 2015. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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 two-year period then ended and the period from April 27, 2015 to December 31, 2015, in conformity with U.S. generally accepted accounting principles.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with brokers and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 51.92% 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, 2017, the Fund declared net short-term capital gain distributions of $29,444.

During the year ended December 31, 2017, the Fund declared net long-term capital gain distributions of $39,769

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL MVP Fusion^SM Dynamic Balanced Fund (the “Fund”) returned 12.23%. That compared to a 21.83%, 3.54% and 12.42% 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.*

Global economic expansion led major stock indexes to new all-time highs during the 12-month period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low-volatility environment. Mid- and small-cap stocks also performed well during the period: The S&P MidCap 400 Index² generated a 16.24% return and the SmallCap 600 Index³ returned 13.23%. Growth stocks were also heavily favored during the year and significantly outperformed value stocks.

International developed markets, as measured by the MSCI EAFE Index⁴, fared even better than U.S. equities, posting a 25.62% return for the year. Emerging markets equities, as measured by the MSCI Emerging Markets Equity Index⁵, posted a return of 37.75%. The strong return ended years of underperformance versus domestic and international developed markets.

The Fund, which invests in both U.S. and international markets, modestly underperformed its composite benchmark in 2017. Above-benchmark allocations to mid- and small-cap U.S. equity detracted from the Fund’s performance relative to the S&P 500 Index, as smaller stocks generally lagged their large-cap counterparts. An allocation to hedged equity also hindered returns as higher beta⁶ (more volatile) strategies were better rewarded during the period*

The Fund’s off-benchmark allocation to shorter-term bonds also detracted modestly from relative returns as longer-term bonds outperformed.*

The Fund’s relative performance benefited from its strategic, off-benchmark allocations to international developed and emerging markets equities along with a dynamic tilt toward those indexes. These non-U.S. equity markets broadly outperformed their domestic counterparts during the period. Overall, the positive impact of allocations to international equities largely offset the negative impact from other allocation decisions.*

Stock selection within the Fund’s holdings had an overall modest positive impact on relative results. The negative effects of stock choice within the Fund’s equity holdings were more than offset by the benefits of security selection with its fixed income holdings.*

Past performance does not guarantee future results.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

⁶	Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model, which calculates the expected return of an asset based on its beta and expected market returns.

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

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, 2017


	1 Year			3 Year			5 Year			10 Year
AZL MVP Fusion^SMDynamic Balanced Fund		12.23	%		5.31	%		6.36	%		4.38	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		8.50	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		4.01	%
Balanced Composite Index		12.42	%		6.84	%		8.87	%		6.65	%


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

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. 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, 2019. Additional information pertaining to the December 31, 2017 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%):
	3,424,828	AZL DFA International Core Equity Fund	$	39,248,531
	2,630,052	AZL DFA U.S. Core Equity Fund		33,559,467
	1,378,322	AZL DFA U.S. Small Cap Fund		17,104,974
	2,531,991	AZL Enhanced Bond Index Fund		27,573,381
	2,524,083	AZL Gateway Fund		33,620,784
	7,204,944	AZL International Index Fund, Class 2		124,645,530
	10,820,944	AZL MetWest Total Return Bond Fund		110,373,633
	1,430,410	AZL Mid Cap Index Fund, Class 2		33,557,418
	6,065,372	AZL MSCI Emerging Markets Equity Index Fund, Class 2		53,193,311
	10,822,473	AZL Pyramis^® Total Bond Fund, Class 2		110,713,901
	5,987,198	AZL Russell 1000 Growth Index Fund, Class 2		91,065,279
	6,716,357	AZL Russell 1000 Value Index Fund, Class 2		91,073,802
	763,444	AZL Small Cap Stock Index Fund, Class 2		11,360,051
	4,515,555	PIMCO VIT Income Portfolio		48,497,065
	10,726,544	PIMCO VIT Low Duration Portfolio		109,839,812
	10,060,961	PIMCO VIT Total Return Portfolio		110,066,916

	Total Affiliated Investment Companies (Cost $951,871,525)			1,045,493,855

	Total Investment Securities (Cost $951,871,525)(a) — 95.1%			1,045,493,855
	Net other assets (liabilities) — 4.9%			54,000,530

	Net Assets — 100.0%		$	1,099,494,385

Percentages indicated are based on net assets as of December 31, 2017.

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

Cash of $54,865,300 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	951,871,525

Investments in affiliates, at value	$	1,045,493,855
Segregated cash for collateral		54,865,300
Interest and dividends receivable		454,850
Receivable for investments sold		639,818
Receivable for variation margin on futures contracts		661
Prepaid expenses		6,387

Total Assets		1,101,460,871

Liabilities:
Cash overdraft		639,818
Payable for investments purchased		404,186
Payable for capital shares redeemed		696,897
Manager fees payable		186,959
Administration fees payable		3,926
Custodian fees payable		465
Administrative and compliance services fees payable		2,511
Transfer agent fees payable		750
Trustee fees payable		1,618
Other accrued liabilities		29,356

Total Liabilities		1,966,486

Net Assets	$	1,099,494,385

Net Assets Consist of:
Capital	$	936,171,779
Accumulated net investment income/(loss)		12,529,638
Accumulated net realized gains/(losses) from investment transactions		56,871,626
Net unrealized appreciation/(depreciation) on investments		93,921,342

Net Assets	$	1,099,494,385

Shares of beneficial interest (unlimited number of shares authorized, no par value)		92,339,836
Net Asset Value (offering and redemption price per share)	$	11.91

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	13,013,453
Interest		491,835
Dividends		380
Other income		2,224

Total Investment Income		13,507,892

Expenses:
Manager fees		2,213,010
Administration fees		53,408
Custodian fees		2,685
Administrative and compliance services fees		13,211
Transfer agent fees		5,451
Trustee fees		47,134
Professional fees		47,632
Shareholder reports		25,454
Other expenses		14,789

Total expenses		2,422,774

Net Investment Income/(Loss)		11,085,118

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		33,646,760
Net realized gains distributions from affiliated underlying funds		23,162,736
Net realized gains/(losses) on futures contracts		5,014,226
Change in net unrealized appreciation/depreciation on affiliated transactions		53,674,263
Change in net unrealized appreciation/depreciation on futures contracts		416,108

Net Realized/Unrealized Gains/(Losses) on Investments		115,914,093

Change in Net Assets Resulting From Operations	$	126,999,211

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Dynamic 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., miscellaneous adjustments on return of capital), 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.

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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $55.3 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid 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, 2017, $11,393 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 Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2017, actual Trustee compensation was $1,116,333 in total for both trusts.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

Other Financial Instruments would include any derivative instruments, such as futures contracts. These investments are generally presented in the financial statements at variation margin.

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $954,466,346. 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, 2017 were as follows:

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

At December 31, 2017, 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 (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with the investees, brokers, and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 21.02% 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, 2017, the Fund declared net long-term capital gain distributions of $99,533,664.

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL MVP Fusion^SM Dynamic Conservative Fund (the “Fund”) returned 9.31%. That compared to a 21.83%, 3.54% and a 9.70% 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.*

Global economic expansion led major stock indexes to new all-time highs during the period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low volatility environment. Mid- and small-cap stocks also performed well during the period. The S&P MidCap 400 Index² generated a 16.24% return and the SmallCap 600 Index³ returned 13.23%. Growth stocks were also heavily favored during the year and significantly outperformed value stocks.

International developed markets, as measured by the MSCI EAFE Index⁴, fared even better than U.S. equities, posting a 25.62% return for the period. Emerging markets equities, as measured by the MSCI Emerging Markets Equity Index⁵, posted a return of 37.75% and thereby ended years of underperformance versus domestic and developed international markets.

The U.S. bond market was generally positive, as the market rewarded investors who took on interest rate and spread risk. The Bloomberg Barclays U.S. Aggregate Bond Index gained 3.54%. Bond investors generally tolerated risks in a hunt for yield. Spreads ended the year tighter than when the year began, and high yield spreads tightened markedly. Meanwhile, the yield curve flattened sharply, as three Fed rate hikes sent short-term yields higher while investor demand for yield pushed long-term yields lower.

The Fund, which invests in both U.S. and international markets, modestly underperformed its composite benchmark in 2017. Above-benchmark allocations to mid- and small-cap U.S. equity detracted from the Fund’s performance relative to the S&P 500 Index, as smaller stocks generally lagged their large-cap counterparts. An allocation to hedged equity also hindered returns, as higher beta⁶ (more volatile) strategies were better rewarded during the period.*

The Fund’s off-benchmark allocation to shorter-term bonds also detracted modestly from relative returns as longer-term bonds outperformed.*

These negative impacts were partly offset by the Fund’s exposure to overseas markets. Off-benchmark allocations to international developed and emerging markets equity along with a dynamic tilt toward those indexes supported relative returns, as non-U.S. equity markets broadly outperformed their domestic counterparts during the period.*

Stock selection within the Fund’s holdings had a net positive impact on relative results. The negative effects of stock choice within the Fund’s equity holdings were more than offset by the benefits of security selection with its fixed income holdings.*

Past performance does not guarantee future results.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

⁶	Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model, which calculates the expected return of an asset based on its beta and expected market returns.

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, 2017


	1 Year			3 Year			5 Year			Since Inception (10/23/09)
AZL MVP Fusion^SMDynamic Conservative Fund		9.31	%		4.53	%		5.27	%		6.19	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		14.09	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		3.56	%
Conservative Composite Index		9.70	%		5.46	%		6.83	%		7.38	%


Expense Ratio	Gross
AZL MVP Fusion^SMDynamic Conservative Fund		0.97	%

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. 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, 2019. Additional information pertaining to the December 31, 2017 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 indexes 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 (95.1%):
	610,665	AZL DFA International Core Equity Fund	$	6,998,217
	337,510	AZL DFA U.S. Core Equity Fund		4,306,633
	225,921	AZL DFA U.S. Small Cap Fund		2,803,677
	1,189,103	AZL Enhanced Bond Index Fund		12,949,335
	518,585	AZL Gateway Fund		6,907,550
	1,205,741	AZL International Index Fund, Class 2		20,859,328
	3,451,650	AZL MetWest Total Return Bond Fund		35,206,826
	299,174	AZL Mid Cap Index Fund, Class 2		7,018,616
	798,213	AZL MSCI Emerging Markets Equity Index Fund, Class 2		7,000,327
	3,068,502	AZL Pyramis^® Total Bond Fund, Class 2		31,390,779
	1,139,623	AZL Russell 1000 Growth Index Fund, Class 2		17,333,662
	1,281,707	AZL Russell 1000 Value Index Fund, Class 2		17,379,950
	187,047	AZL Small Cap Stock Index Fund, Class 2		2,783,265
	1,597,112	PIMCO VIT Income Portfolio		17,152,980
	2,868,307	PIMCO VIT Low Duration Portfolio		29,371,462
	3,289,109	PIMCO VIT Total Return Portfolio		35,982,856

	Total Affiliated Investment Companies (Cost $239,770,101)			255,445,463


Shares			Fair Value
Unaffiliated Investment Company (0.1%):
	259,642	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares, 1.11%(a)	$	259,642

	Total Unaffiliated Investment Company (Cost $259,642)			259,642

	Total Investment Securities (Cost $240,029,743)(b) — 95.2%			255,705,105
	Net other assets (liabilities) — 4.8%			12,866,436

	Net Assets — 100.0%		$	268,571,541

Percentages indicated are based on net assets as of December 31, 2017.

(a)	The rate represents the effective yield at December 31, 2017.

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

Cash of $13,440,344 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investment in non-affiliates, at cost	$	259,642
Investments in affiliates, at cost		239,770,101

Total Investment securities, at cost	$	240,029,743

Investment in non-affiliates, at value	$	259,642
Investments in affiliates, at value		255,445,463

Total Investment securities, at value		255,705,105
Segregated cash for collateral		13,440,344
Interest and dividends receivable		141,402
Receivable for capital shares issued		38,011
Prepaid expenses		1,561

Total Assets		269,326,423

Liabilities:
Payable for investments purchased		388,654
Payable for capital shares redeemed		307,685
Manager fees payable		45,563
Administration fees payable		3,467
Custodian fees payable		405
Administrative and compliance services fees payable		624
Transfer agent fees payable		673
Trustee fees payable		402
Other accrued liabilities		7,409

Total Liabilities		754,882

Net Assets	$	268,571,541

Net Assets Consist of:
Capital	$	241,586,502
Accumulated net investment income/(loss)		3,424,477
Accumulated net realized gains/(losses) from investment transactions		7,856,987
Net unrealized appreciation/(depreciation) on investments		15,703,575

Net Assets	$	268,571,541

Shares of beneficial interest (unlimited number of shares authorized, no par value)		21,955,868
Net Asset Value (offering and redemption price per share)	$	12.23

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	3,644,530
Interest		122,771
Dividends		249
Other income		553

Total Investment Income		3,768,103

Expenses:
Manager fees		549,804
Administration fees		48,468
Custodian fees		2,435
Administrative and compliance services fees		3,326
Transfer agent fees		4,807
Trustee fees		11,911
Professional fees		11,887
Shareholder reports		6,581
Other expenses		3,378

Total expenses		642,597

Net Investment Income/(Loss)		3,125,506

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		4,650,240
Net realized gains distributions from affiliated underlying funds		4,333,779
Net realized gains/(losses) on futures contracts		896,187
Change in net unrealized appreciation/depreciation on affiliated transactions		11,455,008
Change in net unrealized appreciation/depreciation on futures contracts		76,729

Net Realized/Unrealized Gains/(Losses) on Investments		21,411,943

Change in Net Assets Resulting From Operations	$	24,537,449

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Dynamic 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., miscellaneous adjustments on return of capital), 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.

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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $13.6 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid 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, 2017, $2,839 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 Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2017, actual Trustee compensation was $1,116,333 in total for both trusts.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $241,547,003. 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, 2017 were as follows:

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

At December 31, 2017, 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 (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian, investees, brokers and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 14.22% 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, 2017, the Fund declared net short-term capital gain distributions of $549,708.

During the year ended December 31, 2017, the Fund declared net long-term capital gain distributions of $10,681,966.

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL MVP Fusion^SM Dynamic Moderate Fund (the “Fund”) returned 13.98%. That compared to a 21.83%, 3.54% and a 14.26% 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.*

Global economic expansion led major stock indexes to new all-time highs during the 12-month period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low-volatility environment. Mid- and small-cap stocks also performed well during the period: The S&P MidCap 400 Index² generated a 16.24% return and the SmallCap 600 Index³ returned 13.23%. Growth stocks were also heavily favored during the year, and significantly outperformed value stocks.

The Fund, which invests in both U.S. and international markets, modestly underperformed its composite benchmark in 2017. Above-benchmark allocations to mid- and small-cap U.S. equity detracted from the Fund’s performance relative to the S&P 500 Index, as smaller stocks generally lagged their large-cap counterparts. An allocation to hedged equity also hindered returns, as higher beta⁶ (more volatile) strategies were better rewarded during the period.*

The Fund’s off-benchmark allocation to shorter-term bonds also detracted modestly from relative returns as longer-term bonds outperformed.*

These negative impacts were partly offset by the Fund’s exposure to overseas markets. Off-benchmark allocations to international developed and emerging markets equity, along with a dynamic tilt toward those indexes, supported the Fund’s returns relative to its benchmark, as non-U.S. equity markets broadly outperformed their domestic counterparts during the period.*

Security selection within the underlying funds also supported relative performance on an overall basis, with security selection among fixed income holdings adding, and stock selection within the equity allocation detracting modestly.*

Stock selection within the Fund’s holdings had an overall modestly negative impact on relative results. The negative effects of stock choice within the Fund’s equity holdings were only partly offset by the benefits of security selection with its fixed income holdings.*

Past performance does not guarantee future results.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

⁶	Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model, which calculates the expected return of an asset based on its beta and expected market returns.

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, 2017


	1 Year			3 Year			5 Year			10 Year
AZL MVP Fusion^SMDynamic Moderate Fund		13.98	%		5.32	%		7.00	%		4.08	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		8.50	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		4.01	%
Moderate Composite Index		14.26	%		7.76	%		10.25	%		7.09	%


Expense Ratio	Gross
AZL MVP Fusion^SMDynamic Moderate Fund		0.98	%

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. 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, 2019. Additional information pertaining to the December 31, 2017 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 indexes 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
	15,189,923	AZL Russell 1000 Growth Index Fund, Class 2	$	231,038,729
	17,080,924	AZL Russell 1000 Value Index Fund, Class 2		231,617,334
	2,456,426	AZL Small Cap Stock Index Fund, Class 2		36,551,620
	8,897,783	PIMCO VIT Income Portfolio		95,562,194
	15,166,280	PIMCO VIT Low Duration Portfolio		155,302,712
	17,760,222	PIMCO VIT Total Return Portfolio		194,296,831

	Total Affiliated Investment Companies (Cost $2,021,723,761)			2,255,107,381

	Total Investment Securities (Cost $2,021,723,761)(a) — 95.5%			2,255,107,381
	Net other assets (liabilities) — 4.5%			106,378,995

	Net Assets — 100.0%		$	2,361,486,376

Cash of $107,947,885 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	2,021,723,761

Investments in affiliates, at value	$	2,255,107,381
Segregated cash for collateral		107,947,885
Interest and dividends receivable		796,500
Receivable for investments sold		1,167,424
Receivable for variation margin on futures contracts		661
Prepaid expenses		13,594

Total Assets		2,365,033,445

Liabilities:
Cash overdraft		1,167,425
Payable for investments purchased		697,185
Payable for capital shares redeemed		1,206,635
Manager fees payable		400,445
Administration fees payable		4,671
Custodian fees payable		937
Administrative and compliance services fees payable		5,322
Transfer agent fees payable		876
Trustee fees payable		3,429
Other accrued liabilities		60,144

Total Liabilities		3,547,069

Net Assets	$	2,361,486,376

Net Assets Consist of:
Capital	$	1,963,913,698
Accumulated net investment income/(loss)		24,824,295
Accumulated net realized gains/(losses) from investment transactions		138,537,640
Net unrealized appreciation/(depreciation) on investments		234,210,743

Net Assets	$	2,361,486,376

Shares of beneficial interest (unlimited number of shares authorized, no par value)		197,248,294
Net Asset Value (offering and redemption price per share)	$	11.97

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	25,448,448
Interest		876,556
Dividends		152
Other income		4,754

Total Investment Income		26,329,910

Expenses:
Manager fees		4,715,944
Administration fees		62,346
Custodian fees		4,684
Administrative and compliance services fees		28,420
Transfer agent fees		6,574
Trustee fees		101,212
Professional fees		102,532
Shareholder reports		47,975
Other expenses		31,537

Total expenses		5,101,224

Net Investment Income/(Loss)		21,228,686

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		77,931,872
Net realized gains distributions from affiliated underlying funds		59,879,405
Net realized gains/(losses) on futures contracts		10,479,861
Change in net unrealized appreciation/depreciation on affiliated transactions		139,264,956
Change in net unrealized appreciation/depreciation on futures contracts		938,585

Net Realized/Unrealized Gains/(Losses) on Investments		288,494,679

Change in Net Assets Resulting From Operations	$	309,723,365

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Fusion Dynamic 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., miscellaneous adjustments on return of capital), 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.

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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $99.6 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid 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, 2017, $24,234 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 Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2017, actual Trustee compensation was $1,116,333 in total for both trusts.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

Other Financial Instruments would include any derivative instruments, such as futures contracts. These investments are generally presented in the financial statements at variation margin.

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $2,025,371,361. 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, 2017 were as follows:

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

At December 31, 2017, 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, 2017, the Fund had an individual shareholder account which is affiliated with the Investment Adviser representing ownership of 90% of the Fund. As of December 31, 2017, 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 (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We conducted our audits in accordance with the standards of the PCAOB. 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 whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with the investees, brokers, and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 25.77% 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, 2017, the Fund declared net long-term capital gain distributions of $185,608,214.

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® MVP Growth Index Strategy Fund (the “Fund”) returned 15.96%. That compared to a 21.83%, 3.54% and a 17.06% 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.

Global economic expansion led major stock indexes to new all-time highs during the 12-month period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low-volatility environment. Mid- and small-cap stocks also performed well during the period: The S&P MidCap 400 Index² generated a 16.24% return and the SmallCap 600 Index³ returned 13.23%. Growth stocks were also heavily favored during the year and significantly outperformed value stocks.

outperformed during the period. By comparison, an overweight allocation to international equities contributed to the Fund’s returns relative to its benchmark, as international stocks outperformed their U.S. counterparts.*

Within the Fund’s fixed income holdings, an underweight allocation to corporate bonds weighed on relative results, as those outperformed during the period. An overweight allocation to 30-year bonds added to relative performance, however.*

Past performance does not guarantee future results.

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

²	The Standard & Poor’s MidCap 400 Index (“S&P 400”) is the most widely used index for mid-sized companies. The S&P 400 covers 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

⁴	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

⁵	The MSCI Emerging Markets Index (“MSCI EM”) is a free float-adjusted market capitalization index that is designed to measure equity performance of emerging markets.

Investors cannot invest directly in an index.

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, 2017


	1 Year			3 Year			5 Year			Since Inception (1/10/12)
AZL^®MVP Growth Index Strategy Fund		15.96	%		7.10	%		9.59	%		9.86	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		15.36	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		2.47	%
Growth Composite Index		17.06	%		9.13	%		12.32	%		12.12	%


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 indexes 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 (95.0%):
	56,943,573	AZL Enhanced Bond Index Fund	$	620,115,513
	28,919,362	AZL International Index Fund, Class 2		500,304,956
	12,491,183	AZL Mid Cap Index Fund, Class 2		293,043,151
	58,515,822	AZL S&P 500 Index Fund, Class 2		943,860,209
	9,809,725	AZL Small Cap Stock Index Fund, Class 2		145,968,711

	Total Affiliated Investment Companies (Cost $2,152,991,434)			2,503,292,540

	Total Investment Securities (Cost $2,152,991,434)(a) — 95.0%			2,503,292,540
	Net other assets (liabilities) — 5.0%			131,262,443

	Net Assets — 100.0%		$	2,634,554,983

Percentages indicated are based on net assets as of December 31, 2017.

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

Cash of $131,413,610 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	2,152,991,434

Investments in affiliates, at value	$	2,503,292,540
Segregated cash for collateral		131,413,610
Interest and dividends receivable		121,249
Receivable for capital shares issued		111,119
Receivable for affiliated investments sold		794,465
Receivable for variation margin on futures contracts		1,322
Prepaid expenses		14,955

Total Assets		2,635,749,260

Liabilities:
Cash overdraft		794,465
Payable for capital shares redeemed		94,650
Manager fees payable		223,066
Administration fees payable		4,859
Administrative and compliance services fees payable		5,907
Transfer agent fees payable		893
Trustee fees payable		3,806
Other accrued liabilities		66,631

Total Liabilities		1,194,277

Net Assets	$	2,634,554,983

Net Assets Consist of:
Capital	$	2,203,571,274
Accumulated net investment income/(loss)		21,745,154
Accumulated net realized gains/(losses) from investment transactions		57,502,774
Net unrealized appreciation/(depreciation) on investments		351,735,781

Net Assets	$	2,634,554,983

Shares of beneficial interest (unlimited number of shares authorized, no par value)		169,292,686
Net Asset Value (offering and redemption price per share)	$	15.56

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	19,609,174
Interest		1,067,885
Other income		4,436

Total Investment Income		20,681,495

Expenses:
Manager fees		2,426,953
Administration fees		50,886
Administrative and compliance services fees		23,818
Transfer agent fees		5,351
Trustee fees		83,842
Professional fees		88,669
Shareholder reports		41,959
Other expenses		26,187

Total expenses		2,747,665

Net Investment Income/(Loss)		17,933,830

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(178,270	)
Net realized gains distributions from affiliated underlying funds		66,922,015
Net realized gains/(losses) on futures contracts		15,838,684
Change in net unrealized appreciation/depreciation on affiliated transactions		256,820,952
Change in net unrealized appreciation/depreciation on futures contracts		1,430,371

Net Realized/Unrealized Gains/(Losses) on Investments		340,833,752

Change in Net Assets Resulting From Operations	$	358,767,582

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 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., reclassification of distributions, miscellaneous adjustments on return of capital, and other permanent adjustments), 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.

During the year ended December 31, 2017, 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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $122.1 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid 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, 2017, $24,677 was paid from the Fund relating to these fees and expenses.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $2,158,306,838. 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, 2017 were as follows:

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

At December 31, 2017, the components of accumulated earnings on a tax basis were as follows:

We have audited the accompanying statement of assets and liabilities of AZL MVP Growth Index Strategy Fund (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with brokers and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 41.00% 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, 2017, the Fund declared net short-term capital gain distributions of $342,468.

During the year ended December 31, 2017, the Fund declared net long-term capital gain distributions of $87,679,342.

At the Board meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® MVP Moderate Index Strategy Fund (the “Fund”) returned 13.21%. That compared to a 21.83%, 3.54% and a 14.26% 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 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.

Global economic expansion supported equities during 2017 and led major stock indexes to all-time highs. U.S. large-cap equities, as measured by the S&P 500 Index, gained amid solid jobs growth, low unemployment, increased business investment, strong consumer confidence, and a low volatility environment. Mid- and small-cap stocks also performed well during the period, but could not keep pace with large-cap stocks. Growth stocks were heavily favored by investors during the year and significantly outperformed value stocks.

International developed markets outperformed U.S. domestic markets, returning 25.62% as measured by the MSCI EAFE Index² for the period. Emerging markets equities, as measured by the MSCI Emerging Markets Equity Index³, posted impressive returns of 37.75%, ending years of underperformance relative to domestic and international developed markets.

The U.S. bond market was generally positive, and the market rewarded investors who took on interest rate and spread risk. Although spread movement was variable, spreads tightened over the year, particularly in the high-yield space. Meanwhile, the yield curve flattened sharply, as three rate hikes by the U.S. Federal Reserve sent short-term yields higher while investor demand for yield pushed long-term yields lower.

The Fund underperformed its blended benchmark for the 12-month period under review. This underperformance was due largely to an overweight allocation to mid- and small-cap stocks, which lagged large-cap equities during the period. The Fund’s allocation to international equities boosted relative results as they outperformed their U.S. counterparts. An overweight allocation to 30-year bonds boosted relative performance of the underlying fixed-income portfolio. However, that benefit was offset by an underweight allocation to corporate bonds, which detracted from relative performance and caused the Fund to modestly lag its fixed-income benchmark for the period.*

Past performance does not guarantee future results.

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

²	The Morgan Stanley Capital International, Europe, Australasia and Far East (“MSCI EAFE”) Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

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

Investors cannot invest directly in an index.

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, 2017


	1 Year			3 Year			5 Year			Since Inception (1/10/12)
AZL^®MVP Moderate Index Strategy Fund		13.21	%		4.93	%		9.19	%		9.17	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		15.36	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		2.47	%
Balanced Composite Index		14.26	%		7.76	%		10.25	%		10.18	%


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

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. 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, 2019. Additional information pertaining to the December 31, 2017 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 indexes 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%):
	18,911,829	AZL Enhanced Bond Index Fund	$	205,949,814
	4,861,439	AZL International Index Fund, Class 2		84,102,886
	2,156,849	AZL Mid Cap Index Fund, Class 2		50,599,678
	9,792,028	AZL S&P 500 Index Fund, Class 2		157,945,419
	1,733,963	AZL Small Cap Stock Index Fund, Class 2		25,801,367

	Total Affiliated Investment Companies (Cost $469,108,280)			524,399,164

	Total Investment Securities (Cost $469,108,280)(a) — 95.0%			524,399,164
	Net other assets (liabilities) — 5.0%			27,468,475

	Net Assets — 100.0%		$	551,867,639

Percentages indicated are based on net assets as of December 31, 2017.

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

Cash of $27,551,389 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	469,108,280

Investments in affiliates, at value	$	524,399,164
Segregated cash for collateral		27,551,389
Interest and dividends receivable		25,412
Receivable for capital shares issued		3,655
Receivable for investments sold		142,277
Receivable for variation margin on futures contracts		661
Prepaid expenses		3,198

Total Assets		552,125,756

Liabilities:
Cash overdraft		142,277
Payable for capital shares redeemed		45,529
Manager fees payable		46,834
Administration fees payable		3,706
Custodian fees payable		212
Administrative and compliance services fees payable		1,293
Transfer agent fees payable		711
Trustee fees payable		833
Other accrued liabilities		16,722

Total Liabilities		258,117

Net Assets	$	551,867,639

Net Assets Consist of:
Capital	$	473,064,778
Accumulated net investment income/(loss)		4,602,884
Accumulated net realized gains/(losses) from investment transactions		18,699,884
Net unrealized appreciation/(depreciation) on investments		55,500,093

Net Assets	$	551,867,639

Shares of beneficial interest (unlimited number of shares authorized, no par value)		37,587,622
Net Asset Value (offering and redemption price per share)	$	14.68

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	4,355,913
Interest		237,138
Dividends		231
Other income		1,067

Total Investment Income		4,594,349

Expenses:
Manager fees		534,488
Administration fees		50,060
Custodian fees		1,891
Administrative and compliance services fees		6,447
Transfer agent fees		4,992
Trustee fees		22,918
Professional fees		23,592
Shareholder reports		15,609
Other expenses		7,090

Total expenses		667,087

Net Investment Income/(Loss)		3,927,262

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		4,703,592
Net realized gains distributions from affiliated underlying funds		11,790,250
Net realized gains/(losses) on futures contracts		2,850,437
Change in net unrealized appreciation/depreciation on affiliated transactions		43,088,326
Change in net unrealized appreciation/depreciation on futures contracts		240,496

Net Realized/Unrealized Gains/(Losses) on Investments		62,673,101

Change in Net Assets Resulting From Operations	$	66,600,363

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Moderate 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., miscellaneous adjustments on return of capital), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., 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.

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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $26.7 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid 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, 2017, $5,482 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 Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2017, actual Trustee compensation was $1,116,333 in total for both trusts.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $469,108,280. 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, 2017 were as follows:

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

At December 31, 2017, 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 (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with brokers and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 59.12% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

During the year ended December 31, 2017, the Fund declared net long-term capital gain distributions of $12,388,171.

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® MVP Pyramis^® Multi-Strategy Fund (the “Fund”) returned 10.93%. That compared to a 21.83%, 3.54% and a 10.61% 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 are managed by its sub-subadviser, Geode Capital Management, LLC, investing in primarily in large-cap common stocks. 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.*

Global economic expansion led major stock indexes to new all-time highs during the 12-month period under review. The S&P 500 Index gained 21.83% during the period, supported by a positive economic environment marked by solid jobs growth, low unemployment, increased business investment, strong consumer confidence and a low-volatility environment. Mid- and small-cap stocks also performed well during the period: The S&P MidCap 400 Index² generated a 16.24% return and the SmallCap 600 Index³ returned 13.23%. Growth stocks were also heavily favored during the year and significantly outperformed value stocks.

The Fund outperformed its composite benchmark during the period under review, due mostly to strong performance within the fixed income component.

Strategic allocation decisions added to the Fund’s relative performance, including an overweight position in information technology and an underweight position in energy. Stock selection within the industrials and energy sectors also added to relative results, even as security selection, overall, detracted from relative performance within the equity component.*

Stock selection in the information technology and consumer discretionary sectors weighed on relative results. The Fund’s value-oriented investment style also acted as a headwind for relative performance during most of 2017, as value stocks generally underperformed their growth counterparts.*

The Fund’s fixed income component performed well in 2017 relative to its benchmark, benefiting from strong security selection as well as sector selection. An overweight position in high-yield and investment-grade corporate bonds helped boost relative performance as those assets outperformed as spreads tightened. The Fund’s overweight positions in emerging markets bonds and taxable municipal bonds also contributed to performance. The Fund’s underweight position in investment grade industrial bonds detracted from the Fund’s performance relative to its benchmark.*

The Fund held futures to equitize its cash positions during the period. The exposure to this form of derivatives did not materially impact the Fund’s performance.*

The MVP risk management process, which includes the use of derivatives, worked as intended during the period under review. Given that the period was marked by low volatility, the MVP maintained a neutral equity allocation for the year relative to its target. The MVP process detracted slightly due to mismatches between the hedging instruments used and the target equity and fixed income exposure.*

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.

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.

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, 2017


	1 Year			3 Year			5 Year			Since Inception (4/30/12)
AZL^®MVP Pyramis^®Multi-Strategy Fund		10.93	%		1.60	%		4.80	%		5.44	%
S&P 500 Index		21.83	%		11.41	%		15.79	%		14.53	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.10	%		2.34	%
Balanced Composite Index		10.61	%		5.92	%		7.51	%		7.18	%


Expense Ratio	Gross
AZL^®MVP Pyramis Multi-Strategy Fund		0.81	%

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. 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, 2019. Additional information pertaining to the December 31, 2017 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 indexes 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.

Cash of $13,738,482 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in affiliates, at cost	$	248,304,827

Investments in affiliates, at value	$	260,858,132
Segregated cash for collateral		13,738,482
Interest and dividends receivable		12,656
Receivable for capital shares issued		287,213
Receivable for investments sold		60,967
Prepaid expenses		1,561

Total Assets		274,959,011

Liabilities:
Cash overdraft		60,967
Payable for capital shares redeemed		16,895
Manager fees payable		23,338
Administration fees payable		3,566
Custodian fees payable		421
Administrative and compliance services fees payable		651
Transfer agent fees payable		690
Trustee fees payable		420
Other accrued liabilities		9,012

Total Liabilities		115,960

Net Assets	$	274,843,051

Net Assets Consist of:
Capital	$	273,221,278
Accumulated net investment income/(loss)		8,614,083
Accumulated net realized gains/(losses) from investment transactions		(19,588,836	)
Net unrealized appreciation/(depreciation) on investments		12,596,526

Net Assets	$	274,843,051

Shares of beneficial interest (unlimited number of shares authorized, no par value)		23,271,449
Net Asset Value (offering and redemption price per share)	$	11.81

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Interest	$	125,026
Dividends		51
Other income		564

Total Investment Income		125,641

Expenses:
Manager fees		280,678
Administration fees		48,479
Custodian fees		2,362
Administrative and compliance services fees		3,389
Transfer agent fees		4,789
Trustee fees		12,138
Professional fees		12,100
Shareholder reports		9,074
Other expenses		3,496

Total expenses		376,505

Net Investment Income/(Loss)		(250,864	)

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		(3,211,802	)
Net realized gains distributions from affiliated underlying funds		8,864,966
Net realized gains/(losses) on futures contracts		1,037,481
Change in net unrealized appreciation/depreciation on affiliated transactions		22,484,796
Change in net unrealized appreciation/depreciation on futures contracts		83,890

Net Realized/Unrealized Gains/(Losses) on Investments		29,259,331

Change in Net Assets Resulting From Operations	$	29,008,467

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 12 separate investment portfolios (collectively, the “Funds”), of which one is included in this report, the AZL MVP Pyramis^® 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., miscellaneous adjustments on return of capital), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales, CLCF not subject to expiration, 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.

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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $13.9 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid to the Manager and the annual expense limit were as follows:

The Manager or an affiliate of the Manager serves as the investment adviser of certain underlying fund in which the Fund invests. At December 31, 2017, this underlying fund is noted as Affiliated Investment Company in the Fund’s Schedule of Portfolio Investments. Additional information, including financial statements, about this Fund is available at www.allianzlife.com. The Manager or an affiliate of the Manager is paid a separate fee from the underlying fund for such services. A summary of the Fund’s investments in affiliated investment company for the year ended December 31, 2017 is 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, 2017, $2,902 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 Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2017, actual Trustee compensation was $1,116,333 in total for both trusts.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $251,083,199. The gross unrealized appreciation/(depreciation) on a tax basis is as follows:

As of the end of its tax year ended December 31, 2017, the Fund has capital loss carry forwards (“CLCFs”).

The tax character of dividends paid to shareholders during the year ended December 31, 2017 were as follows:

The tax character of dividends paid to shareholders during the year ended December 31, 2016 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, 2017, 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 (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with brokers and the transfer agent of the underlying fund. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 69.03% of the total ordinary income dividends paid by the Fund qualify for the corporate dividends received deduction available to corporate shareholders.

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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, 2017?

For the year ended December 31, 2017, the AZL^® MVP T. Rowe Price Capital Appreciation Plus Fund (the “Fund”) returned 14.21%. That compared to a 21.83%, 3.54% and a 14.26% total return for its benchmarks, the S&P 500 Index¹, the Bloomberg Barclays U.S. Aggregate Bond Index¹, and the Balanced Composite Index¹, respectively.

Lifted in part by favorable corporate earnings and economic growth, U.S. stocks posted excellent returns for the 12-month period under review. Throughout the year, U.S. equities were buoyed by hopes for the new administration’s promise of lower tax rates, reduced regulation and increased infrastructure spending. The Federal Reserve raised short-term interest rates three times in 2017, but the central bank’s moves were widely expected and did not disrupt equity markets.

In the closing weeks of the year, the administration signed tax legislation that reduced tax rates for corporations and closely held businesses, reduced marginal tax rates for individuals at most income levels, and changed the limits for various individual tax deductions. Most major U.S. stock indexes finished the year near record levels amid expectations that the new tax law would accelerate gross domestic product² growth in 2018.

The Fund’s exposure to passive strategies through the AZL S&P 500 Index Fund and the AZL Enhanced Bond Index Fund dragged on absolute returns, as those portions underperformed the active equity and fixed income portions of the AZL T. Rowe Price Capital Appreciation Fund.*

The Fund’s equity holdings outperformed the S&P 500 Index for the period. Within equities, stock selection in the health care sector contributed to relative outperformance. An underweight position and stock selection in energy also benefited on a relative basis. By comparison, stock selection and a below-benchmark exposure to information technology stocks detracted, as that sector outperformed.

The portfolio’s fixed income holdings also posted a positive return during the one-year period, although AZL Enhanced Bond Index Fund underperformed the Fund’s active fixed income component.*

The Fund’s above-benchmark exposure to high-yield securities within its fixed income holdings added to relative performance. An underweight exposure to U.S. Treasuries also benefited, as the 10-year Treasury yield ended the year relatively unchanged.*

The Fund maintained exposure to covered call options—a type of derivative that provided downside protection for the portfolio while offering the benefits of owning a stock, such as dividends and capital appreciation, so long as the stock remains below the option strike price. The Fund’s exposure to equity options detracted from returns, as the Fund wrote call options on some stocks that increased significantly. The Fund held rights at various points during the period to buy stocks at a predetermined price in the future, generating minimal exposure.*

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	Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced in a period of time.

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, 2017


	1 Year			3 Year			Since Inception (1/10/14)
AZL^®MVP T. Rowe Price Capital Appreciation Plus Fund		14.21	%		8.58	%		9.29	%
S&P 500 Index		21.83	%		11.41	%		12.14	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.99	%
Balanced Composite Index		14.26	%		7.76	%		8.48	%


Expense Ratio	Gross
AZL^®MVP T. Rowe Price Capital Appreciation Plus Fund		0.87	%

The above expense ratio is based on the current Fund prospectus dated May 1, 2017. 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, 2019. Additional information pertaining to the December 31, 2017 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, as shown in the current prospectus, 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 expense ratio would be 0.12%.

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 indexes 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%):
	18,070,528	AZL Enhanced Bond Index Fund	$	196,788,055
	18,467,863	AZL S&P 500 Index Fund, Class 2		297,886,624
	30,302,669	AZL T. Rowe Price Capital Appreciation Fund		546,357,130

	Total Affiliated Investment Companies (Cost $933,916,360)			1,041,031,809

Unaffiliated Investment Company (0.0%):
	57,682	Dreyfus Treasury Prime Cash Management Fund, Institutional Shares , 1.11%(a)		57,682

	Total Unaffiliated Investment Company (Cost $57,682)			57,682

	Total Investment Securities (Cost $933,974,042)(b) — 95.0%			1,041,089,491
	Net other assets (liabilities) — 5.0%			55,003,695

	Net Assets — 100.0%		$	1,096,093,186

Cash of $54,765,387 has been segregated to cover margin requirements for the following open contracts as of December 31, 2017:

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investment in non-affiliates, at cost	$	57,682
Investments in affiliates, at cost		933,916,360

Total Investment securities, at cost	$	933,974,042

Investment in non-affiliates, at value	$	57,682
Investments in affiliates, at value		1,041,031,809

Total Investment securities, at value		1,041,089,491
Segregated cash for collateral		54,765,387
Interest and dividends receivable		50,563
Receivable for capital shares issued		368,681
Prepaid expenses		6,354

Total Assets		1,096,280,476

Liabilities:
Payable for investments purchased		57,682
Manager fees payable		92,897
Administration fees payable		3,949
Administrative and compliance services fees payable		2,479
Transfer agent fees payable		747
Trustee fees payable		1,597
Other accrued liabilities		27,939

Total Liabilities		187,290

Net Assets	$	1,096,093,186

Net Assets Consist of:
Capital	$	940,932,224
Accumulated net investment income/(loss)		10,982,539
Accumulated net realized gains/(losses) from investment transactions		36,641,850
Net unrealized appreciation/(depreciation) on investments		107,536,573

Net Assets	$	1,096,093,186

Shares of beneficial interest (unlimited number of shares authorized, no par value)		86,222,376
Net Asset Value (offering and redemption price per share)	$	12.71

Statement of Operations

For the Year Ended December 31, 2017


Investment Income:
Dividends from affiliates	$	11,129,173
Interest		445,148
Dividends		2,568
Other income		2,005

Total Investment Income		11,578,894

Expenses:
Manager fees		1,004,169
Administration fees		52,705
Administrative and compliance services fees		12,061
Transfer agent fees		5,341
Trustee fees		42,270
Professional fees		44,902
Shareholder reports		22,413
Other expenses		11,443

Total expenses		1,195,304

Net Investment Income/(Loss)		10,383,590

Realized and Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on securities transactions from affiliates		1,333,041
Net realized gains distributions from affiliated underlying funds		31,289,697
Net realized gains/(losses) on futures contracts		5,300,132
Change in net unrealized appreciation/depreciation on affiliated transactions		83,484,924
Change in net unrealized appreciation/depreciation on futures contracts		475,304

Net Realized/Unrealized Gains/(Losses) on Investments		121,883,098

Change in Net Assets Resulting From Operations	$	132,266,688

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

The Allianz Variable Insurance Products Fund of Funds Trust (the “Trust”) was organized as a Delaware statutory trust on June 16, 2004. The Trust is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) and thus is determined to be an investment company for accounting purposes. The Trust consists of 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 (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., miscellaneous adjustments on return of capital), 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.

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. For the year ended December 31, 2017, the monthly average notional amount for long contracts was $50.5 million. 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, 2017:

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, 2017:

For the year ended December 31, 2017, the annual rate paid 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, 2017, $10,168 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 Fund of Funds Trust in proportion to the assets under management of each trust. During the year ended December 31, 2017, actual Trustee compensation was $1,116,333 in total for both trusts.

The following is a summary of the valuation inputs used as of December 31, 2017 in valuing the Fund’s investments based upon the three levels defined above:

For the year ended December 31, 2017, cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) were as follows:

Cost of securities, including derivatives and short positions as applicable, for federal income tax purposes at December 31, 2017 is $934,772,280. 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, 2017 were as follows:

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

At December 31, 2017, 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 (the “Fund”) of the Allianz Variable Insurance Products Fund of Funds Trust, including the schedule of portfolio investments, as of December 31, 2017, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the three-year period then ended and the period from January 10, 2014 (commencement of operations) to December 31, 2014. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, 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 three-year period then ended and the period from January 10, 2014 to December 31, 2014, in conformity with U.S. generally accepted accounting principles.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian, brokers and transfer agents of the underlying funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Allianz Variable Insurance Products investment companies since 1999.

For the year ended December 31, 2017, 16.24% 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, 2017, the Fund declared net short-term capital gain distributions of $60,007.

During the year ended December 31, 2017, the Fund declared net long-term capital gain distributions of $18,368,477.

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 meeting held October 23, 2017, the Trustees determined that the investment performance of the Funds was acceptable.

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


Name, Address, and Year of Birth	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 (1947) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/07	Consultant/Chair, various companies: Chairman, Emrys Analytics and subsidiaries, July 2015 to present; Chairman, Argus Investment Strategies Fund Ltd., February 2013 to 2017; Managing Director, iQ Venture Advisors, LLC, 2005 to present; Chairman, Northstar Group Holdings Ltd. Bermuda, 2011 to present; Chairman Sterling Bank & Trust (Bahamas) Ltd., 2016 to present, and Expert Witness, Massachusetts Department of Revenue, 2011 to 2016.	35	Argus Group Holdings and Subsidiaries; Northstar Group Holdings; Sterling Trust (Cayman) Ltd.; Sterling Bank & Trust Limited (Bahamas); Emrys Analytics; EGB Insurance.
Peggy L. Ettestad (1957) 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
Tamara Lynn Fagely (1958) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Retired; Chief Operations Officer, Hartford Funds, March 2012 to December 2013	35	Diamond Hill Funds (13 funds)
Richard H. Forde (1953) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 12/17	Member of the Board and Chairman of the Finance and Investment Committee, Connecticut Water Service, Inc., October 2013 to present; Senior Vice President and Chief Investment Officer, CIGNA, 2004 to 2012	35	Connecticut Water Service, Inc.
Claire R. Leonardi (1955) 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
Dickson W. Lewis (1948) 5701 Golden Hills Drive Minneapolis, MN 55416	Trustee	Since 2/04	Retired; Vice President/General Manager, Yearbooks & Canada-Lifetouch National School Studios, 2006 to 2014; 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 (1944) 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
Brian Muench (1970) 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 (1945) 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 (1963) 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 (1968) 5701 Golden Hills Drive Minneapolis, MN 55416	Chief Compliance Officer(4) and Anti-MoneyLaundering 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.

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 7/1/17			Ending Account Value 12/31/17			Expenses Paid During Period 7/1/17 - 12/31/17*			Annualized Expense Ratio During Period 7/1/17 - 12/31/17
AZL Balanced Index Strategy Fund		$	1,000.00		$	1,055.40		$	0.36		0.07	%


	Beginning Account Value 7/1/17			Ending Account Value 12/31/17			Expenses Paid During Period 7/1/17 - 12/31/17*			Annualized Expense Ratio During Period 7/1/17 - 12/31/17
AZL Balanced Index Strategy Fund		$	1,000.00		$	1,024.85		$	0.36		0.07	%


	For the Year Ended December 31, 2017				For the Year Ended December 31, 2016
Change In Net Assets:
Operations:
Net investment income/(loss)		$	3,459,020			$	8,019,060
Net realized gains/(losses) on investment transactions			16,237,892				21,738,224
Change in unrealized appreciation/depreciation on investments			28,523,288				(1,251,752	)

Change in net assets resulting from operations			48,220,200				28,505,532

Distributions to Shareholders:
From net investment income			(9,832,388	)			(11,827,600	)
From net realized gains			(20,732,059	)			(7,976,603	)

Change in net assets resulting from distributions to shareholders			(30,564,447	)			(19,804,203	)

Capital Transactions:
Proceeds from shares issued			15,459,952				30,164,569
Proceeds from dividends reinvested			30,564,447				19,804,203
Value of shares redeemed			(53,598,790	)			(52,905,698	)

Change in net assets resulting from capital transactions			(7,574,391	)			(2,936,926	)

Change in net assets			10,081,362				5,764,403
Net Assets:
Beginning of period			438,300,128				432,535,725

End of period		$	448,381,490			$	438,300,128

Accumulated net investment income/(loss)		$	3,957,705			$	9,832,388

Share Transactions:
Shares issued			950,921				1,926,476
Dividends reinvested			1,932,013				1,277,690
Shares redeemed			(3,277,297	)			(3,384,739	)

Change in shares			(394,363	)			(180,573	)


	Year Ended December 31,
	2017				2016				2015				2014				2013
Net Asset Value, Beginning of Period		$	15.75			$	15.44			$	15.91			$	15.40			$	13.91

Investment Activities:
Net Investment Income/(Loss)			0.15				0.30				0.34				0.16				0.15
Net Realized and Unrealized Gains/(Losses) on Investments			1.62				0.73				(0.34	)			0.78				1.63

Total from Investment Activities			1.77				1.03				—	(a)			0.94				1.78

Dividends to Shareholders From:
Net Investment Income			(0.38	)			(0.43	)			(0.17	)			(0.23	)			(0.25	)
Net Realized Gains			(0.80	)			(0.29	)			(0.30	)			(0.20	)			(0.04	)

Total Dividends			(1.18	)			(0.72	)			(0.47	)			(0.43	)			(0.29	)

Net Asset Value, End of Period		$	16.34			$	15.75			$	15.44			$	15.91			$	15.40

Total Return(b)			11.50	%			6.75	%			0.01	%			6.11	%			12.93	%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (000’s)		$	448,381			$	438,300			$	432,536			$	438,651			$	413,982
Net Investment Income/(Loss)			0.78	%			1.83	%			2.14	%			1.02	%			1.10	%
Expenses Before Reductions*(c)			0.08	%			0.08	%			0.08	%			0.08	%			0.08	%
Expenses Net of Reductions*			0.08	%			0.08	%			0.08	%			0.08	%			0.08	%
Portfolio Turnover Rate			6	%			12	%			11	%			9	%			8	%


	Fair Value 12/31/16			Purchases at Cost			Proceeds from Sales				Net Realized Gains/(Losses)				Net Change in Unrealized Appreciation/ Depreciation			Fair Value 12/31/17			Shares as of 12/31/2017		Dividend Income			Net realized gains distributions from affiliated underlying funds
AZL Enhanced Bond Index Fund		$	213,693,435		$	14,780,957		$	(8,627,045	)		$	(194,755	)		$	4,723,626		$	224,376,218		20,603,877		$	2,004,674		$	7,756
AZL International Index Fund, Class 2			55,595,556			1,032,506			(11,783,972	)			583,970				10,919,580			56,347,640		3,257,089			486,883			424,660
AZL Mid Cap Index Fund, Class 2			34,709,583			2,046,063			(6,188,478	)			849,441				2,254,067			33,670,676		1,435,238			156,942			1,719,565
AZL S&P 500 Index Fund, Class 2			114,983,267			7,080,363			(22,092,462	)			5,900,089				10,309,305			116,180,562		7,202,763			1,057,348			5,178,657
AZL Small Cap Stock Index Fund, Class 2			19,410,475			1,349,949			(3,608,929	)			532,876				316,710			18,001,081		1,209,750			89,005			1,235,633

		$	438,392,316		$	26,289,838		$	(52,300,886	)		$	7,671,621			$	28,523,288		$	448,576,177		33,708,717		$	3,794,852		$	8,566,271


Investments	Percent of Net Assets
Fixed Income		50.0
Domestic Equities		37.4
International Equities		12.6

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			Level 3			Total
Affiliated Investment Companies		$	448,576,177		$	—		$	—		$	448,576,177

Total Investment Securities		$	448,576,177		$	—		$	—		$	448,576,177


	Purchases			Sales
AZL Balanced Index Strategy Fund		$	26,289,838		$	52,300,886


Unrealized appreciation	$	99,401,611
Unrealized (depreciation)		—

Net unrealized appreciation/(depreciation)	$	99,401,611


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


Unrealized appreciation	$	141,186,814
Unrealized (depreciation)		(66,548	)

Net unrealized appreciation/(depreciation)	$	141,120,266


	Undistributed Ordinary Income			Undistributed Long-Term Capital Gains			Accumulated Capital and Other Losses			Unrealized Appreciation/ Depreciation(a)			Total Accumulated Earnings/ (Deficit)
AZL DFA Multi-Strategy Fund		$	13,032,239		$	15,955,134		$	—		$	141,120,266		$	170,107,639


Description	Expiration Date		Number of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)
S&P 500 Index E-Mini March Futures (U.S. Dollar)		3/19/18		59	$	7,894,200	$	130,019
U.S. Treasury 10-Year Note March Futures (U.S. Dollar)		3/21/18		65		8,063,047		(43,191	)

							$	86,828


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

Equity Risk
Equity Contracts	Net Realized gains/(losses) on futures contracts/Change in net unrealized appreciation/depreciation on futures contracts	$	1,357,732		$115,713

Interest Rate Risk
Interest Rate Contracts			68,601		2,576


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


Unrealized appreciation	$	33,400,919
Unrealized (depreciation)		(505,885	)

Net unrealized appreciation/(depreciation)	$	32,895,034


Description	Counterparty	Put/ Call		Strike Price		Expiration Date		Contracts		Notional Amount(b)		Fair Value
Chevron Corp.	UBS Warburg		Put		80.00 USD		1/18/19		10,746		859,680	$	(6,900	)
Conocophilips	UBS Warburg		Put		35.00 USD		1/18/19		17,866		625,310		(7,615	)
Euro Stoxx 50 Index	Deutsche Bank		Put		2586.07 EUR		9/21/18		106		274,123		(2,563	)
Exxon Mobil Corp.	UBS Warburg		Put		60.00 USD		1/18/19		7,306		438,360		(4,292	)
Occidental Petroleum Corp.	UBS Warburg		Put		45.00 USD		1/18/19		15,702		706,590		(7,450	)
Royal Dutch Shell plc	UBS Warburg		Put		40.00 USD		1/18/19		19,345		773,800		(3,160	)
S&P 500 Index	Deutsche Bank		Put		2500.00 USD		1/19/18		663		1,657,500		(1,921	)
S&P 500 Index	BNP Paribas		Put		2450.00 USD		2/16/18		797		1,952,650		(4,405	)
Schlumberger, Ltd.	UBS Warburg		Put		60.00 USD		1/18/19		10,576		634,560		(35,493	)
SPDR Gold Shares(c)	Morgan Stanley		Put		120.00 USD		1/19/18		10,749		1,289,880		(1,885	)
SPDR Gold Shares(c)	Morgan Stanley		Put		115.00 USD		2/16/18		9,491		1,091,465		(1,007	)
SPDR Gold Shares(c)	Morgan Stanley		Put		115.00 USD		3/16/18		5,666		651,590		(1,176	)
Suncor Energy, Inc.	UBS Warburg		Put		25.00 USD		1/18/19		22,818		570,450		(11,005	)
Tokyo Stock Exchange Price Index	Citigroup		Put		1675.00 JPY		2/09/18		95,294		159,617,450		(3,897	)
Tokyo Stock Exchange Price Index	Morgan Stanley		Put		1650.00 JPY		3/09/18		105,769		174,518,850		(7,475	)
Total SA	UBS Warburg		Put		40.00 USD		1/18/19		23,303		932,120		(11,335	)

Total (Premiums $554,141)												$	(302,174	)


Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Expiration Date		Counterparty	Notional Amount (Local)			Value		Unrealized Appreciation/ (Depreciation)
Fixed 2.46% Semi-annually	3-Month U.S. Dollar Libor BBA Quarterly		1/4/18	Goldman Sachs		538	USD	$	2,849	$	(17,684	)
Fixed 1.07% Semi-annually	6-Month Japanese Yen LIBOR Rate BBA Semi-annually		4/4/18	Deutsche Bank		1,006,980	JPY		3		(21,144	)
Fixed 2.15% Semi-annually	3-Month U.S. Dollar Libor BBA Quarterly		4/24/18	Goldman Sachs		2,680	USD		73,242		(111,125	)
Fixed 2.75% Quarterly	3-Month US Dollar LIBOR BBA Quarterly		5/2/18	Goldman Sachs		126	USD		16,106		(44,985	)

Total (Cost $287,138)								$	92,200	$	(194,938	)


Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Expiration Date		Counterparty	Notional Amount (Local)				Value			Unrealized Appreciation/ (Depreciation)
Fixed 2.61% Semi-annually	3-Month U.S. Dollar Libor BBA Quarterly		1/4/18	Goldman Sachs		(538	)	USD	$	(102	)	$	3,486
Fixed 2.4% Semi-annually	3-Month U.S. Dollar Libor BBA Quarterly		4/24/18	Goldman Sachs		(1,340	)	USD		(43,195	)		22,191
Fixed 1.9% Semi-annually	3-Month U.S. Dollar Libor BBA Quarterly		4/28/18	Goldman Sachs		(2,680	)	USD		(17,988	)		60,797
Fixed 2.50% Quarterly	3-Month US Dollar LIBOR BBA Quarterly		5/2/18	Goldman Sachs		(575	)	USD		(12,174	)		30,603

Total (Premiums $190,536)									$	(73,459	)	$	117,077


Currency Purchased		Currency Sold			Counterparty		Settlement Date		Net Unrealized Appreciation/ (Depreciation)
Short Contracts:
U.S. Dollar	1,033,000		Mexican Peso	19,196,961		UBS Warburg		1/11/18	$	58,560
U.S. Dollar	826,000		Mexican Peso	15,771,644		Deutsche Bank		1/18/18		26,515
U.S. Dollar	2,423,339		Australian Dollar	3,095,000		Goldman Sachs		1/25/18		8,903
U.S. Dollar	947,653		New Zealand Dollar	1,325,000		JPMorgan Chase		2/22/18		9,576
U.S. Dollar	875,157		European Euro	738,000		UBS Warburg		2/26/18		(13,170	)
U.S. Dollar	383,809		British Pound	290,000		UBS Warburg		2/26/18		(8,368	)
U.S. Dollar	427,691		Australian Dollar	550,000		Citigroup		4/6/18		(1,266	)
U.S. Dollar	1,060,911		Australian Dollar	1,395,000		Deutsche Bank		4/13/18		(27,067	)

									$	53,683

Long Contracts:
British Pound	789,000		U.S. Dollar	1,037,653		JPMorgan Chase		2/8/18	$	28,792
British Pound	789,000		U.S. Dollar	1,037,890		JPMorgan Chase		2/16/18		28,798
British Pound	787,000		U.S. Dollar	1,035,476		JPMorgan Chase		2/23/18		28,720
European Euro	1,628,000		U.S. Dollar	1,922,017		UBS Warburg		3/15/18		39,725
European Euro	876,000		Polish Zloty	3,713,101		Deutsche Bank		3/16/18		(11,793	)
European Euro	1,255,000		U.S. Dollar	1,485,976		UBS Warburg		3/16/18		26,401
European Euro	1,633,000		U.S. Dollar	1,931,676		UBS Warburg		4/12/18		39,723
Japanese Yen	6,817,986		U.S. Dollar	60,424		BNP Paribas SA		1/4/18		107
Japanese Yen	7,345,532		U.S. Dollar	65,276		Barclays Bank		1/5/18		(57	)
Japanese Yen	115,725,000		U.S. Dollar	1,031,027		Barclays Bank		3/8/18		(361	)
Japanese Yen	138,290,000		U.S. Dollar	1,224,805		Goldman Sachs		3/15/18		7,398
New Zealand Dollar	1,325,000		U.S. Dollar	913,091		JPMorgan Chase		2/22/18		24,986
Norwegian Krone	6,648,000		U.S. Dollar	833,041		Morgan Stanley		1/26/18		(22,358	)
Swedish Krona	8,719,893		European Euro	882,000		Deutsche Bank		3/22/18		5,445
Swedish Krona	8,722,980		European Euro	882,000		BNP Paribas SA		3/29/18		5,803

									$	201,329


Swap Agreements(a)
At December 31, 2017, the Fund’s open over-the-counter credit default swap agreements (buy protection) were as follows:(d)
Description	Counterparty	Payment Frequency	Implied Credit Spread at December 31, 2017(e)			Expiration Date		Notional Amount(f)			Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Airbus SE	Barclays Bank	Quarterly		0.28	%		6/20/22		269,838	EUR	$	(10,491	)	$	(9,250	)	$	(1,241	)
Airbus SE	Barclays Bank	Quarterly		0.28	%		6/20/22		134,950	EUR		(5,247	)		(4,979	)		(268	)
AKZO Nobel	Barclays Bank	Quarterly		0.46	%		6/20/22		269,838	EUR		(7,870	)		(6,389	)		(1,481	)
BASF SE	Barclays Bank	Quarterly		0.24	%		6/20/22		269,838	EUR		(11,041	)		(9,973	)		(1,068	)
Bayer AG	Barclays Bank	Quarterly		0.33	%		6/20/22		269,838	EUR		(9,712	)		(8,962	)		(750	)


Description	Clearing Agent	Payment Frequency		Implied Credit Spread at December 31, 2017(e)			Expiration Date		Notional Amount(f)		Fixed Rate			Value			Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX North America High Yield Index Swap Agreement with Series 29	Bank of America		Quarterly		3.07	%		12/20/22	$	759,099		5.00	%	$	(62,870	)	$	(56,292	)	$	(6,578	)

														$	(62,870	)	$	(56,292	)	$	(6,578	)


Reference Entity	Counterparty	Strike Price		Expiration Date		Notional Amount (Local)		Upfront Premiums Paid/ (Received)		Amount at Value		Unrealized Appreciation/ (Depreciation)
5yr-30yr Constant Maturity Swap Capital	Goldman Sachs	$	0.31		11/6/18	$	8,330,000	$	25,546	$	4,920	$	(20,626	)

Total (Premiums $25,546)										$	4,920	$	(20,626	)


Pay/ Receive Floating Rate	Fixed Rate	Expiration Date		Counterparty		Notional Amount			Value			Unrealized Appreciation/ (Depreciation)
Pay	1.963%		3/15/18		Bank of America		131,550,000	JPY	$	(8,454	)	$	(8,454	)
Pay	1.838%		3/15/18		Bank of America		86,950,000	JPY		(224	)		(224	)
Pay	2.012%		10/15/18		Bank of America		273,450,000	JPY		209,101			209,101

									$	200,423		$	200,423


Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Expiration Date		Clearing Agent	Notional Amount (Local)			Upfront Premiums Paid/ (Received)		Value			Unrealized Appreciation/ (Depreciation)
6-Month Euro Interbank Offer Rate (EURIBOR) Semi-annually	Fixed 0.415% Annually		3/7/23	Bank of America		4,684,846	EUR	$	59	$	(16,878	)	$	(16,937	)
Fixed 2.403% Semi-annually	3-Month U.S. Dollar LIBOR BBA Quarterly		3/7/23	Bank of America		5,293,612	USD		64		29,661			29,597
Fixed 2.33% Semi-annually	3-Month U.S. Dollar LIBOR BBA Quarterly		6/14/23	Bank of America		5,698,956	USD		69		2,302			2,233
6-Month Euro Interbank Offer Rate (EURIBOR) Semi-annually	Fixed 0.340% Annually		6/14/23	Bank of America		4,569,918	EUR		65		23,835			23,770


	For the Year Ended December 31, 2017				For the Year Ended December 31, 2016
Change In Net Assets:
Operations:
Net investment income/(loss)		$	7,996,110			$	6,962,255
Net realized gains/(losses) on investment transactions			25,099,254				(4,625,667	)
Change in unrealized appreciation/depreciation on investments			57,180,746				24,523,262

Change in net assets resulting from operations			90,276,110				26,859,850

Distributions to Shareholders:
From net investment income			(3,178,036	)			(21,857,180	)
From net realized gains			—				(29,417,164	)

Change in net assets resulting from distributions to shareholders			(3,178,036	)			(51,274,344	)

Capital Transactions:
Proceeds from shares issued			8,651,752				18,938,747
Proceeds from dividends reinvested			3,178,036				51,274,343
Value of shares redeemed			(79,282,868	)			(61,642,093	)

Change in net assets resulting from capital transactions			(67,453,080	)			8,570,997

Change in net assets			19,644,994				(15,843,497	)
Net Assets:
Beginning of period			814,519,353				830,362,850

End of period		$	834,164,347			$	814,519,353

Accumulated net investment income/(loss)		$	(2,485,215	)		$	(7,218,620	)

Share Transactions:
Shares issued			710,754				1,644,044
Dividends reinvested			258,587				4,565,836
Shares redeemed			(6,584,146	)			(5,372,625	)

Change in shares			(5,614,805	)			837,255


	Purchases			Sales			Realized (Gain/Loss)
AZL MVP BlackRock Global Strategy Plus Fund		$	87,390		$	—		$	—


	Realized Gain/(Loss) on Derivatives Recognized as a Result from Operations
	Net Realized Gains/(Losses) on Futures Contracts			Net Realized Gains/(Losses) on Swap Agreements				Net Realized Gains/(Losses) on Written Option Contracts				Net Realized Gains/(Losses) on Forward Currency Contracts
Equity Risk		$	1,275,664		$	100,141			$	377,827			$	—
Credit Risk			—			40,976				—				—
Interest Rate Risk			167,971			(213,083	)			(142,167	)			—
Foreign Exchange Rate Risk			—			—				626,617				1,124,464

	Change in Net Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result from Operations
	Change in Net Unrealized Appreciation/Depreciation on Futures Contracts			Change in Net Unrealized Appreciation/Depreciation on Swap Agreements				Change in Net Unrealized Appreciation/Depreciation on Written Option Contracts				Change in Net Unrealized Appreciation/Depreciation on Forward Currency Contracts
Equity Risk		$	248,759		$	544,522			$	147,183			$	—
Credit Risk			—			(76,555	)			—				—
Interest Rate Risk			12,495			414,504				471,228				—
Foreign Exchange Rate Risk			—			(121,728	)			144,687				(2,287,701	)


	Assets				Liabilities
Derivative Financial Instruments:
Futures contracts		$	37,272			$	—
Option contracts			—				378,577
Forward currency contracts			339,452				84,440
Swap agreements			1,052,320				107,706

Total derivative assets and liabilities in the Consolidated Statement of Assets and Liabilities			1,429,044				570,723
Derivatives not subject to a master netting agreement or similar agreement (“MNA”)			(55,051	)			(696	)

Total assets and liabilities subject to a MNA		$	1,373,993			$	570,027


Counterparty	Derivative Assets Subject to a MNA by Counterparty			Derivatives Available for Offset				Non-cash Collateral Received*			Cash Collateral Received*				Net Amount of Derivative Assets
Bank of America		$	209,101		$	(52,409	)		$	—		$	(197,413	)		$	—
BNP Paribas SA			797,166			(7,349	)			—			(830,000	)			—
Citigroup			—			—				—			(64,760	)			—
Deutsche Bank			31,960			(31,960	)			—			(7,127	))			—
Goldman Sachs			44,227			(44,227	)			—			(110,042	)			—
JPMorgan Chase			127,130			—				—			(10,000	)			117,130
Societe Generale			—			—				—			(30,000	)			—
UBS Warburg			164,409			(164,409	)			—			—				—

Total		$	1,373,993		$	(300,354	)		$	—		$	(1,249,342	)		$	117,130


Counterparty	Derivative Liabilities Subject to a MNA by Counterparty			Derivatives Available for Offset				Non-cash Collateral Pledged*			Cash Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America		$	52,409		$	(52,409	)		$	—		$	—		$	—
Barclays Bank			137,858			—				—			—			137,858
BNP Paribas SA			7,349			(7,349	)			—			—			—
Citigroup			5,163			—				—			—			5,163
Deutsche Bank			65,409			(31,960	)			—			—			33,449
Goldman Sachs			73,459			(44,227	)			—			—			29,232
Morgan Stanley			35,606			—				—			—			35,606
UBS Warburg			192,774			(164,409	)			—			—			28,365

Total		$	570,027		$	(300,354	)		$	—		$	—		$	269,673


	Fair Value 12/31/2016			Purchases at Cost			Proceeds from Sales				Net Realized Gains/(Losses)				Net Change in Unrealized Appreciation/ Depreciation			Fair Value 12/31/2017			Shares as of 12/31/2017		Dividend Income
AZL Enhanced Bond Index Fund		$	220,670,678		$	7,652,344		$	(4,344,150	)		$	(5,187	)		$	4,588,676		$	228,562,361		20,988,279		$	2,109,766
AZL MSCI Global Equity Index Fund			144,706,339			2,780,633			(27,683,969	)			3,449,143				23,193,548			146,445,694		13,052,201			2,780,633

		$	365,377,017		$	10,432,977		$	(32,028,119	)		$	3,443,956			$	27,782,224		$	375,008,055		34,040,480		$	4,890,399


Security	Acquisition Date(a)		Acquisition Cost			Shares or Principal Amount			Fair Value			Percentage of Net Assets
AliphCom, Inc., 12.00%, 4/1/20		4/27/15		$	735,000		$	3,065,000		$	12,567		0.00	%
Aliphcom, 12.00%, 4/1/20		11/11/15			268,000			268,000			1,099		0.00	%
Dana Gas Sukuk, Ltd., 7.00%, 10/31/18		5/8/13			650,390			631,620			517,928		0.06	%
Domo, Inc., Series E		4/1/15			998,866			144,482			905,902		0.11	%
Dropbox, Inc.		1/28/14			1,827,985			95,700			1,358,940		0.16	%
Grand Rounds, Inc., Series C		3/31/15			399,608			143,925			410,186		0.05	%
Inversiones Alsacia SA, 8.00%, 12/31/18, Callable 1/22/18 @ 100.00		12/22/14			312,032			527,380			13,185		0.00	%
Jawbone		1/24/2017			—			23,389			31,893		0.00	%
Logistics UK, Series 2015-1A, Class F, 1.21%, 8/20/25		8/3/15			440,732			459,000			617,841		0.07	%
Lookout, Inc.		3/4/15			63,364			5,547			1,165		0.00	%
Lookout, Inc., Preffered Shares, Series F		9/19/14			389,996			63,925			596,420		0.07	%
Palantir Technologies, Inc., Series I		3/27/14			712,042			116,157			658,610		0.08	%
REI Agro, Ltd., Registered Shares, 5.50%, 11/13/14		2/7/12			300,000			400,000			—		—	%
TFS Corp., Ltd., 8.75%, 8/1/23, Callable 8/1/19 @ 106.56		7/20/16			2,106,000			1,018,000			712,600		0.09	%
Uber Technologies, Inc.		3/21/14			1,063,120			68,532			2,259,500		0.27	%


Unrealized appreciation	$	83,178,118
Unrealized (depreciation)		(11,330,752	)

Net unrealized appreciation/(depreciation)	$	71,847,366