UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number			811-23039
AllianzGI Diversified Income & Convertible Fund
(Exact name of registrant as specified in charter)
1633 Broadway New York, New York					10019
(Address of principal executive offices)					(Zip code)
Lawrence G. Altadonna – 1633 Broadway New York, New York 10019
(Name and address of agent for service)
Registrant’s telephone number, including area code:				212-739-3371
Date of fiscal year end:	January 31, 2017
Date of reporting period:		October 31, 2016

Item 1. Schedule of Investments

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited)

Principal Amount (000s)			Value*
CONVERTIBLE BONDS & NOTES—63.6%
		Automobiles—2.4%
$	25	Fiat Chrysler, 7.875%, 12/15/16 (a)	$	1,790,340
3,445		Tesla Motors, Inc., 0.25%, 3/1/19 (a)	3,193,084
			4,983,424
		Biotechnology—2.7%
		BioMarin Pharmaceutical, Inc. (a),
840		0.75%, 10/15/18	943,950
760		1.50%, 10/15/20	889,200
715		Incyte Corp., 0.375%, 11/15/18 (a)	1,279,850
1,395		Ironwood Pharmaceuticals, Inc., 2.25%, 6/15/22 (a)	1,477,828
525		Ligand Pharmaceuticals, Inc., 0.75%, 8/15/19 (a)	730,734
325		Novavax, Inc., 3.75%, 2/1/23 (a)(b)(c)	147,469
185		Synergy Pharmaceuticals, Inc., 7.50%, 11/1/19 (a)(b)(c)	309,297
			5,778,328
		Communications Equipment—1.7%
690		Ciena Corp., 3.75%, 10/15/18 (a)(b)(c)	822,825
970		Finisar Corp., 0.50%, 12/15/33 (a)	1,099,131
1,160		Palo Alto Networks, Inc., zero coupon, 7/1/19 (a)	1,721,875
			3,643,831
		Construction & Engineering—1.5%
1,265		Dycom Industries, Inc., 0.75%, 9/15/21 (a)	1,361,456
1,740		Tutor Perini Corp., 2.875%, 6/15/21 (a)(b)(c)	1,740,000
			3,101,456
		Consumer Finance—0.3%
675		PRA Group, Inc., 3.00%, 8/1/20 (a)	608,766
		Electrical Equipment—0.8%
2,225		SolarCity Corp., 1.625%, 11/1/19 (a)	1,752,188
		Energy Equipment & Services—0.4%
930		Helix Energy Solutions Group, Inc., 4.25%, 5/1/22	942,788
		Equity Real Estate Investment Trust—0.1%
215		Spirit Realty Capital, Inc., 3.75%, 5/15/21 (a)	234,351
		Health Care Equipment & Supplies—3.9%
1,230		Hologic, Inc., 2.00%, 3/1/42 (a)(d)	1,572,862
1,045		Integra LifeSciences Holdings Corp., 1.625%, 12/15/16 (a)	1,581,869
1,410		NuVasive, Inc., 2.25%, 3/15/21 (a)(b)(c)	1,677,900
1,585		Spectranetics Corp., 2.625%, 6/1/34 (a)	1,559,244
365		Wright Medical Group, Inc., 2.00%, 2/15/20 (a)	375,265
1,135		Wright Medical Group NV, 2.25%, 11/15/21 (a)(b)(c)	1,374,769
			8,141,909
		Health Care Products—1.2%
1,310		Insulet Corp., 1.25%, 9/15/21 (a)(b)(c)	1,227,306
1,010		Nevro Corp., 1.75%, 6/1/21 (a)	1,210,107
			2,437,413
		Health Care Providers & Services—1.3%
650		Healthways, Inc., 1.50%, 7/1/18 (a)	894,156
1,515		Molina Healthcare, Inc., 1.625%, 8/15/44 (a)	1,761,188
			2,655,344
		Health Care Technology—0.5%
1,040		Medidata Solutions, Inc., 1.00%, 8/1/18 (a)	1,146,600
		Household Durables—1.1%
960		CalAtlantic Group, Inc., 1.625%, 5/15/18 (a)	1,131,600
695		Lennar Corp., 3.25%, 11/15/21 (a)	1,233,625
			2,365,225

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Principal Amount (000s)			Value*
		Insurance—0.9%
$	2,085	AmTrust Financial Services, Inc., 2.75%, 12/15/44 (a)	$	1,795,706
		Internet & Direct Marketing Retail—3.6%
		Ctrip.com International Ltd. (a),
1,390		1.00%, 7/1/20	1,480,350
1,345		1.25%, 9/15/22 (b)(c)	1,328,188
2,585		Priceline Group, Inc., 0.35%, 6/15/20 (a)	3,324,956
1,360		Vipshop Holdings Ltd., 1.50%, 3/15/19 (a)	1,451,800
			7,585,294
		Internet Software & Services—5.3%
855		Akamai Technologies, Inc., zero coupon, 2/15/19 (a)	900,426
1,120		Cornerstone OnDemand, Inc., 1.50%, 7/1/18 (a)	1,171,100
1,495		Gogo, Inc., 3.75%, 3/1/20 (a)	1,144,609
1,045		j2 Global, Inc., 3.25%, 6/15/29 (a)	1,269,675
2,060		LinkedIn Corp., 0.50%, 11/1/19 (a)	2,034,250
1,310		Pandora Media, Inc., 1.75%, 12/1/20 (a)(b)(c)	1,292,806
925		VeriSign, Inc., 4.485%, 8/15/37 (a)	2,278,391
1,050		WebMD Health Corp., 2.625%, 6/15/23 (a)(b)(c)	1,018,500
			11,109,757
		IT Services—3.7%
2,165		Blackhawk Network Holdings, Inc., 1.50%, 1/15/22 (a)(b)(c)	2,190,710
1,595		Cardtronics, Inc., 1.00%, 12/1/20 (a)	1,794,375
1,725		CSG Systems International, Inc., 4.25%, 3/15/36 (a)(b)(c)	1,830,656
1,640		Euronet Worldwide, Inc., 1.50%, 10/1/44 (a)	2,034,625
			7,850,366
		Life Sciences Tools & Services—0.8%
1,700		Illumina, Inc., 0.50%, 6/15/21 (a)	1,707,438
		Machinery—0.6%
1,155		Trinity Industries, Inc., 3.875%, 6/1/36 (a)	1,291,434
		Media—3.6%
2,180		DISH Network Corp., 3.375%, 8/15/26 (a)(b)(c)	2,508,362
1,810		Liberty Interactive LLC, 1.75%, 9/30/46 (a)(b)(c)	1,828,100
1,140		Liberty Media Corp., 2.25%, 9/30/46 (a)(b)(c)	1,177,763
1,840		Live Nation Entertainment, Inc., 2.50%, 5/15/19 (a)	2,005,600
			7,519,825
		Metals & Mining—0.5%
75		Royal Gold, Inc., 2.875%, 6/15/19 (a)	80,719
965		RTI International Metals, Inc., 1.625%, 10/15/19 (a)	1,000,584
			1,081,303
		Oil, Gas & Consumable Fuels—3.9%
2,820		Cheniere Energy, Inc., 4.25%, 3/15/45 (a)	1,744,875
745		Chesapeake Energy Corp., 5.50%, 9/15/26 (a)(b)(c)	703,094
		Cobalt International Energy, Inc. (a),
1,615		2.625%, 12/1/19	750,975
480		3.125%, 5/15/24	162,000
990		Energy XXI Ltd., 3.00%, 12/15/18 (a)(e)	7,425
1,275		Oasis Petroleum, Inc., 2.625%, 9/15/23 (a)	1,424,015
1,755		PDC Energy, Inc., 1.125%, 9/15/21 (a)	1,792,294
1,490		SM Energy Co., 1.50%, 7/1/21 (a)	1,666,937
			8,251,615

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Principal Amount (000s)			Value*
		Pharmaceuticals—3.9%
$	1,290	ANI Pharmaceuticals, Inc., 3.00%, 12/1/19 (a)	$	1,501,237
650		Depomed, Inc., 2.50%, 9/1/21 (a)	864,094
1,360		Horizon Pharma Investment Ltd., 2.50%, 3/15/22 (a)	1,292,000
1,945		Impax Laboratories, Inc., 2.00%, 6/15/22 (a)	1,697,013
1,905		Medicines Co., 2.75%, 7/15/23 (a)(b)(c)	1,816,894
960		Teva Pharmaceutical Finance Co. LLC, 0.25%, 2/1/26 (a)	1,125,000
			8,296,238
		Semiconductors & Semiconductor Equipment—9.4%
1,585		Advanced Micro Devices, Inc., 2.125%, 9/1/26 (a)	1,790,059
1,585		Cypress Semiconductor Corp., 4.50%, 1/15/22 (a)(b)(c)	1,671,184
1,755		Inphi Corp., 0.75%, 9/1/21 (a)(b)(c)	1,753,903
2,215		Intel Corp., 3.25%, 8/1/39 (a)	3,801,505
1,385		Lam Research Corp., 1.25%, 5/15/18 (a)	2,253,222
1,775		Microchip Technology, Inc., 1.625%, 2/15/25 (a)	2,212,094
		Micron Technology, Inc. (a),
90		2.125%, 2/15/33	154,406
2,890		3.00%, 11/15/43	2,563,069
1,100		NXP Semiconductors NV, 1.00%, 12/1/19 (a)	1,267,750
3,615		SunEdison, Inc., 3.375%, 6/1/25 (a)(b)(c)(e)	162,675
		SunPower Corp. (a),
1,115		0.875%, 6/1/21	836,250
1,035		4.00%, 1/15/23 (b)(c)	766,547
355		Xilinx, Inc., 2.625%, 6/15/17 (a)	626,575
			19,859,239
		Software—5.9%
1,175		BroadSoft, Inc., 1.00%, 9/1/22 (a)	1,465,813
		Nuance Communications, Inc. (a),
1,420		1.00%, 12/15/35 (b)(c)	1,238,062
975		1.50%, 11/1/35	920,766
1,870		Proofpoint, Inc., 0.75%, 6/15/20 (a)	2,251,012
955		Rovi Corp., 0.50%, 3/1/20 (a)	963,953
1,605		Salesforce.com, Inc., 0.25%, 4/1/18 (a)	1,979,166
1,575		ServiceNow, Inc., zero coupon, 11/1/18 (a)	2,062,266
1,515		Verint Systems, Inc., 1.50%, 6/1/21 (a)	1,435,462
150		Workday, Inc., 0.75%, 7/15/18 (a)	179,156
			12,495,656
		Thrifts & Mortgage Finance—1.8%
1,605		MGIC Investment Corp., 2.00%, 4/1/20 (a)	2,058,413
1,315		Radian Group, Inc., 2.25%, 3/1/19 (a)	1,706,212
			3,764,625
		Trading Companies & Distributors—0.8%
1,265		Air Lease Corp., 3.875%, 12/1/18 (a)	1,598,644
		Transportation Infrastructure—1.0%
1,820		Macquarie Infrastructure Corp., 2.875%, 7/15/19 (a)	2,099,825
		Total Convertible Bonds & Notes (cost-$152,582,572)	134,098,588

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Principal Amount (000s)			Value*
CORPORATE BONDS & NOTES (a)—35.6%
		Aerospace & Defense—1.0%
$	1,000	KLX, Inc., 5.875%, 12/1/22 (b)(c)	$	1,022,700
1,000		TransDigm, Inc., 6.50%, 5/15/25	1,048,750
			2,071,450
		Air Freight & Logistics—0.1%
200		XPO Logistics, Inc., 6.50%, 6/15/22 (b)(c)	208,500
		Banks—0.4%
160		CIT Group, Inc., 5.00%, 8/15/22	171,645
680		Royal Bank of Scotland Group PLC, 5.125%, 5/28/24	674,501
			846,146
		Building Products—0.3%
565		Builders FirstSource, Inc., 5.625%, 9/1/24 (b)(c)	569,266
		Chemicals—1.6%
1,000		Chemours Co., 7.00%, 5/15/25	977,500
750		OMNOVA Solutions, Inc., 7.875%, 11/1/18	750,000
1,000		Platform Specialty Products Corp., 6.50%, 2/1/22 (b)(c)	975,000
235		Tronox Finance LLC, 7.50%, 3/15/22 (b)(c)	211,500
365		Univar USA, Inc., 6.75%, 7/15/23 (b)(c)	379,600
			3,293,600
		Commercial Services—0.9%
		Cenveo Corp. (b)(c),
205		6.00%, 8/1/19	181,425
350		6.00%, 5/15/24	315,000
500		Harland Clarke Holdings Corp., 9.25%, 3/1/21 (b)(c)	430,000
1,000		United Rentals North America, Inc., 5.50%, 7/15/25	1,016,250
			1,942,675
		Commercial Services & Supplies—0.9%
915		RR Donnelley & Sons Co., 6.00%, 4/1/24	878,400
1,000		West Corp., 5.375%, 7/15/22 (b)(c)	966,250
			1,844,650
		Construction & Engineering—0.2%
500		AECOM, 5.875%, 10/15/24	530,625
		Consumer Finance—1.0%
1,000		Navient Corp., 8.45%, 6/15/18	1,084,620
1,000		Springleaf Finance Corp., 6.90%, 12/15/17	1,050,000
			2,134,620
		Diversified Financial Services—1.4%
1,500		Community Choice Financial, Inc., 10.75%, 5/1/19	802,500
1,000		International Lease Finance Corp., 8.25%, 12/15/20	1,192,500
1,000		Nationstar Mortgage LLC / Nationstar Capital Corp., 7.875%, 10/1/20	1,025,000
			3,020,000
		Diversified Telecommunications Services—0.5%
290		Cincinnati Bell, Inc., 7.00%, 7/15/24 (b)(c)	304,500
700		Frontier Communications Corp., 10.50%, 9/15/22	730,625
			1,035,125
		Electric—0.4%
1,000		Talen Energy Supply LLC, 6.50%, 6/1/25	840,000
		Electronic Equipment, Instruments & Components—0.4%
500		Kemet Corp., 10.50%, 5/1/18	501,562
250		Zebra Technologies Corp., 7.25%, 10/15/22	270,625
			772,187
		Energy-Alternate Sources—0.5%
1,000		TerraForm Power Operating LLC, 9.375%, 2/1/23 (b)(c)(d)	1,004,700
		Entertainment—0.4%
750		Cedar Fair LP / Canada’s Wonderland Co. / Magnum Management Corp., 5.375%, 6/1/24	795,000
		Equity Real Estate Investment Trust—0.8%
245		Communications Sales & Leasing, Inc. / CSL Capital LLC, 8.25%, 10/15/23	259,700
500		Equinix, Inc., 5.375%, 1/1/22	532,500
1,000		Kennedy-Wilson, Inc., 5.875%, 4/1/24	1,015,000
			1,807,200
		Food & Staples Retailing—0.5%
170		Albertsons Cos LLC / Safeway, Inc. / New Albertson’s, Inc. / Albertson’s LLC, 6.625%, 6/15/24 (b)(c)	176,800
1,000		SUPERVALU, Inc., 6.75%, 6/1/21	1,010,000
			1,186,800

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Principal Amount (000s)			Value*
		Forest Products & Paper—0.3%
$	525	Mercer International, Inc., 7.75%, 12/1/22	$	555,188
		Health Care Equipment & Supplies—0.2%
360		Hologic, Inc., 5.25%, 7/15/22 (b)(c)	382,086
		Health Care Products—0.3%
620		Kinetic Concepts, Inc. / KCI USA, Inc., 9.625%, 10/1/21 (b)(c)	599,850
		Health Care Providers & Services—1.1%
310		DaVita HealthCare Partners, Inc., 5.125%, 7/15/24	302,831
1,000		Kindred Healthcare, Inc., 8.75%, 1/15/23	973,750
1,000		Tenet Healthcare Corp., 8.125%, 4/1/22	982,500
			2,259,081
		Health Care Services—0.9%
1,000		CHS/Community Health Systems, Inc., 6.875%, 2/1/22	750,000
1,000		HCA, Inc., 7.50%, 2/15/22	1,140,000
			1,890,000
		Hotels Restaurants & Leisure—1.0%
1,000		International Game Technology PLC, 6.25%, 2/15/22 (b)(c)	1,065,938
1,000		MGM Resorts International, 6.625%, 12/15/21	1,119,380
			2,185,318
		Household Durables—1.0%
375		Beazer Homes USA, Inc., 8.75%, 3/15/22 (b)(c)	399,375
500		Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)(c)	517,500
1,000		KB Home, 8.00%, 3/15/20	1,115,000
			2,031,875
		Independent Power & Renewable Electricity Producers—0.5%
1,000		NRG Energy, Inc., 6.25%, 5/1/24	975,000
		Internet Software & Services—0.5%
1,000		EarthLink, Inc., 7.375%, 6/1/20	1,055,000
		Iron/Steel—0.1%
265		AK Steel Corp., 7.50%, 7/15/23	286,200
		IT Services—0.5%
1,000		Cardtronics, Inc., 5.125%, 8/1/22	1,027,500
		Lodging—0.5%
1,000		Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., 5.50%, 3/1/25 (b)(c)	1,005,000
		Machinery—0.9%
1,000		BlueLine Rental Finance Corp., 7.00%, 2/1/19 (b)(c)	877,500
940		Commercial Vehicle Group, Inc., 7.875%, 4/15/19	930,600
			1,808,100
		Media—2.6%
1,000		Cablevision Systems Corp., 8.00%, 4/15/20	1,062,500
500		CCO Holdings LLC / CCO Holdings Capital Corp., 5.75%, 1/15/24	530,000
1,000		Clear Channel Worldwide Holdings, Inc., 6.50%, 11/15/22	1,024,000
425		CSC Holdings LLC, 6.75%, 11/15/21	448,375
750		DISH DBS Corp., 5.875%, 7/15/22	780,000
500		LIN Television Corp., 5.875%, 11/15/22	525,625
1,000		Mediacom Broadband LLC / Mediacom Broadband Corp., 6.375%, 4/1/23	1,045,000
			5,415,500
		Metals & Mining—1.5%
305		Alcoa Nederland Holding BV, 6.75%, 9/30/24 (b)(c)	316,438
1,000		ArcelorMittal, 10.85%, 6/1/19	1,202,500
560		Freeport-McMoRan, Inc., 3.55%, 3/1/22	515,200
485		HudBay Minerals, Inc., 9.50%, 10/1/20	499,550
545		United States Steel Corp., 8.375%, 7/1/21 (b)(c)	580,425
			3,114,113

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Principal Amount (000s)			Value*
		Multiline Retail—0.2%
$	500	Dollar Tree, Inc., 5.75%, 3/1/23	$	533,125
		Oil & Gas—1.7%
1,000		BreitBurn Energy Partners LP / BreitBurn Finance Corp., 8.625%, 10/15/20 (e)	675,000
1,000		Calumet Specialty Products Partners LP / Calumet Finance Corp., 6.50%, 4/15/21	800,000
1,000		CVR Refining LLC / Coffeyville Finance, Inc., 6.50%, 11/1/22	930,000
1,000		Sunoco LP / Sunoco Finance Corp., 6.375%, 4/1/23	1,027,500
165		Weatherford International Ltd., 8.25%, 6/15/23	171,187
			3,603,687
		Oil, Gas & Consumable Fuels—2.4%
250		Callon Petroleum Co., 6.125%, 10/1/24 (b)(c)	258,125
1,000		Carrizo Oil & Gas, Inc., 6.25%, 4/15/23	1,042,500
1,000		Chesapeake Energy Corp., 6.625%, 8/15/20	950,000
1,000		Energy Transfer Equity LP, 5.875%, 1/15/24	1,017,500
1,000		Rice Energy, Inc., 6.25%, 5/1/22	1,022,500
1,000		Sanchez Energy Corp., 6.125%, 1/15/23	860,000
			5,150,625
		Pharmaceuticals—1.1%
615		Endo Finance LLC / Endo Finco, Inc., 5.375%, 1/15/23 (b)(c)	530,438
1,000		Horizon Pharma, Inc., 6.625%, 5/1/23	948,750
1,000		Valeant Pharmaceuticals International, Inc., 6.125%, 4/15/25 (b)(c)	772,500
			2,251,688
		Pipelines—0.5%
1,000		Sabine Pass Liquefaction LLC, 5.75%, 5/15/24	1,062,500
		Retail—0.4%
1,000		Neiman Marcus Group Ltd. LLC, 8.00%, 10/15/21 (b)(c)	830,000
		Semiconductors—0.2%
400		Sensata Technologies BV, 5.625%, 11/1/24 (b)(c)	425,500
		Semiconductors & Semiconductor Equipment—1.7%
1,000		Advanced Micro Devices, Inc., 6.75%, 3/1/19	1,075,000
1,000		Amkor Technology, Inc., 6.375%, 10/1/22	1,035,000
1,000		Micron Technology, Inc., 5.875%, 2/15/22	1,036,650
500		Qorvo, Inc., 7.00%, 12/1/25	550,000
			3,696,650
		Software—0.3%
340		Camelot Finance S.A., 7.875%, 10/15/24 (b)(c)	348,500
290		SS&C Technologies Holdings, Inc., 5.875%, 7/15/23	305,225
			653,725
		Technology Hardware, Storage & Peripherals—0.4%
520		Diamond 1 Finance Corp. / Diamond 2 Finance Corp., 7.125%, 6/15/24 (b)(c)	570,189
310		Western Digital Corp., 10.50%, 4/1/24 (b)(c)	359,212
			929,401
		Telecommunications—3.0%
1,000		Consolidated Communications, Inc., 6.50%, 10/1/22	990,000
1,000		Hughes Satellite Systems Corp., 7.625%, 6/15/21	1,098,750
1,000		Intelsat Jackson Holdings S.A., 7.25%, 4/1/19	802,500
500		Level 3 Financing, Inc., 5.375%, 5/1/25	508,750
1,000		Sprint Communications, Inc., 6.00%, 11/15/22	932,500
1,000		T-Mobile USA, Inc., 6.836%, 4/28/23	1,070,500
1,000		Windstream Services LLC, 7.50%, 6/1/22	950,000
			6,353,000
		Trading Companies & Distributors—0.5%
1,000		H&E Equipment Services, Inc., 7.00%, 9/1/22	1,057,000
		Total Corporate Bonds & Notes (cost-$76,919,060)	75,039,256

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Shares		Value*
COMMON STOCK (a)—35.1%
	Aerospace & Defense—1.0%
14,000	Boeing Co.	$	1,994,020
	Auto Components—0.1%
3,025	Adient PLC (f)	137,668
	Automobiles—1.0%
15,973	Ferrari NV	842,896
104,700	Ford Motor Co.	1,229,178
		2,072,074
	Banks—0.7%
34,000	Wells Fargo & Co.	1,564,340
	Beverages—1.3%
30,000	Coca-Cola Co.	1,272,000
14,200	PepsiCo, Inc.	1,522,240
		2,794,240
	Biotechnology—2.9%
30,600	AbbVie, Inc.	1,706,868
9,300	Amgen, Inc.	1,312,788
4,200	Biogen, Inc. (f)	1,176,756
18,600	Gilead Sciences, Inc.	1,369,518
1,843	Regeneron Pharmaceuticals, Inc. (f)	635,872
		6,201,802
	Building Products—0.6%
30,252	Johnson Controls International PLC	1,219,760
	Chemicals—0.7%
15,400	Monsanto Co.	1,551,858
	Communications Equipment—0.6%
17,200	Qualcomm, Inc.	1,181,984
	Construction & Engineering—0.4%
15,300	Fluor Corp.	795,447
	Diversified Telecommunications Services—0.6%
25,100	Verizon Communications, Inc.	1,207,310
	Electronic Equipment, Instruments & Components—0.6%
19,200	Amphenol Corp., Class A	1,265,856
	Energy Equipment & Services—0.6%
15,000	Schlumberger Ltd.	1,173,450
	Food & Staples Retailing—2.0%
8,400	Costco Wholesale Corp.	1,242,108
37,600	Kroger Co.	1,164,848
22,400	Walgreens Boots Alliance, Inc.	1,853,152
		4,260,108
	Health Care Equipment & Supplies—0.5%
21,400	Baxter International, Inc.	1,018,426
	Health Care Providers & Services—1.3%
9,300	McKesson Corp.	1,182,681
11,100	United Health Group, Inc.	1,568,763
		2,751,444
	Hotels Restaurants & Leisure—1.7%
12,100	McDonald’s Corp.	1,362,097
14,100	MGM Resorts International (f)	368,997
34,300	Starbucks Corp.	1,820,301
		3,551,395
	Household Products—0.5%
11,100	Procter & Gamble Co.	963,480

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Shares		Value*
	Industrial Conglomerates—1.2%
9,200	3M Co.	$	1,520,760
35,500	General Electric Co.	1,033,050
		2,553,810
	Insurance—0.7%
16,500	Prudential Financial, Inc.	1,399,035
	Internet & Direct Marketing Retail—1.0%
2,700	Amazon.com, Inc. (f)	2,132,514
	Internet Software & Services—2.6%
11,500	Alibaba Group Holding Ltd., ADR (f)	1,169,435
2,700	Alphabet, Inc., Class A (f)	2,186,730
16,400	Facebook, Inc., Class A (f)	2,148,236
		5,504,401
	IT Services—1.2%
7,400	International Business Machines Corp.	1,137,306
18,000	Visa, Inc., Class A	1,485,180
		2,622,486
	Machinery—1.0%
16,000	AGCO Corp.	817,280
11,200	Deere & Co.	988,960
12,200	Joy Global, Inc.	339,526
		2,145,766
	Media—1.7%
31,400	Comcast Corp., Class A	1,941,148
18,700	The Walt Disney Co.	1,733,303
		3,674,451
	Metals & Mining—0.5%
146,286	ArcelorMittal (f)	984,505
	Multiline Retail—0.8%
25,100	Target Corp.	1,725,123
	Oil, Gas & Consumable Fuels—0.7%
8,100	Occidental Petroleum Corp.	590,571
15,200	Valero Energy Corp.	900,448
		1,491,019
	Pharmaceuticals—0.5%
20,300	Bristol-Myers Squibb Co.	1,033,473
	Road & Rail—0.7%
17,300	Union Pacific Corp.	1,525,514
	Semiconductors & Semiconductor Equipment—1.6%
48,300	Intel Corp.	1,684,221
24,600	Texas Instruments, Inc.	1,742,910
		3,427,131
	Software—1.9%
36,500	Microsoft Corp.	2,187,080
47,000	Oracle Corp.	1,805,740
		3,992,820
	Specialty Retail—0.7%
12,300	Home Depot, Inc.	1,500,723
	Technology Hardware, Storage & Peripherals—1.2%
22,200	Apple, Inc.	2,520,588
	Total Common Stock (cost-$84,486,228)	73,938,021

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Shares		Value*
CONVERTIBLE PREFERRED STOCK—13.5%
	Commercial Services & Supplies—0.7%
23,485	Stericycle, Inc., 5.25%, 9/15/18 (a)	$	1,584,533
	Diversified Telecommunications Services—1.0%
24,375	Frontier Communications Corp., 11.125%, 6/29/18 (a)	2,035,556
	Electrical Components & Equipment—0.9%
19,120	Belden, Inc., 6.75%, 7/15/19 (a)	1,849,095
	Equity Real Estate Investment Trust—1.2%
22,950	American Tower Corp., 5.50%, 2/15/18 (a)	2,518,762
	Financial Services—1.1%
18,170	Mandatory Exchangeable Trust, 5.75%, 6/1/19 (a)(b)(c)	2,272,249
	Food Products—1.2%
12,105	Post Holdings, Inc., 5.25%, 6/1/17 (a)	1,629,030
10,630	Tyson Foods, Inc., 4.75%, 7/15/17 (a)	819,254
		2,448,284
	Health Care Providers & Services—2.1%
11,480	Amsurg Corp., 5.25%, 7/1/17 (a)	1,327,892
74,385	Anthem, Inc., 5.25%, 5/1/18 (a)	3,142,766
		4,470,658
	Independent Power & Renewable Electricity Producers—0.2%
6,130	Dynegy, Inc., 7.00%, 7/1/2019 (a)	459,137
	Media—0.0%
1,250	SFX Entertainment, Inc., Ser. B, 9.00%, 9/17/19 (b)(e)(g)(h)	13
	Oil, Gas & Consumable Fuels—1.3%
20,135	Hess Corp., 8.00%, 2/1/19 (a)	1,190,985
30,000	Sanchez Energy Corp., 6.50% (a)(i)	900,900
29,420	Southwestern Energy Co., 6.25%, 1/15/18 (a)	737,560
		2,829,445
	Pharmaceuticals—2.6%
4,870	Allergan PLC, 5.50%, 3/1/18 (a)	3,745,030
2,310	Teva Pharmaceutical Industries Ltd., 7.00%, 12/15/18 (a)	1,755,485
		5,500,515
	Wireless Telecommunication Services—1.2%
30,440	T-Mobile US, Inc., 5.50%, 12/15/17 (a)	2,515,866
	Total Convertible Preferred Stock (cost-$36,378,760)	28,484,113

Principal Amount (000s)
SENIOR LOANS (b)(g)(h)(j)—0.5%
		Media—0.5%
$	292	SFX Entertainment, Inc., 10.00% 1/31/17, Term B, DIP, PIK (k)(l)	267,384
861		SFXE Netherlands Holdings Coöperatief U.A., 20.00%, 1/14/17, Term B, DIP, PIK	789,137
35		SFXE Netherlands Holdings Coöperatief U.A., 20.00%, 1/14/17, Term B, DIP, PIK, (Accordion)	31,634
		Total Senior Loans (cost-$1,187,812)	1,088,155

Units
WARRANT (a)(f)(g)(h)—0.0%
	Commercial Services—0.0%
37,000	Cenveo, Inc., expires 6/10/24 (cost-$10,114)	13,362

Principal Amount (000s)
SHORT-TERM INVESTMENT—2.3%
		Time Deposit—2.3%
$	4,767	ANZ National Bank-London, 0.15%, 11/1/16 (cost-$4,766,992)	4,766,992
		Total Investments, before call options written
		(cost-$356,331,538)(m)—150.6%	317,428,487

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Contracts		Value*
CALL OPTIONS WRITTEN (f)—(0.0)%
	3M Co., (ASE),
23	strike price $182.50, expires 11/18/16	$	(449	)
	AGCO Corp., (CBOE),
70	strike price $55, expires 11/18/16	(1,050		)
	Alibaba Group Holding Ltd., (CBOE),
80	strike price $112, expires 11/18/16	(6,480		)
	Alphabet, Inc., (ASE),
14	strike price $905, expires 11/18/16	(1,750		)
	Amazon.com, Inc., (CBOE),
12	strike price $900, expires 11/18/16	(240		)
	Amgen, Inc., (ASE),
55	strike price $175, expires 11/18/16	(303		)
	Apple, Inc., (CBOE),
25	strike price $130, expires 11/18/16	(62		)
	Baxter International, Inc., (CBOE),
128	strike price $51, expires 11/18/16	(960		)
	Boeing Co., (CBOE),
95	strike price $148, expires 11/18/16	(4,275		)
	Comcast Corp., (ASE),
155	strike price $68, expires 11/18/16	(465		)
	Facebook, Inc., (CBOE),
100	strike price $142, expires 11/18/16	(6,100		)
	Fluor Corp., (CBOE),
75	strike price $57.50, expires 11/18/16	(562		)
	MGM Resorts International, (ASE),
85	strike price $28.50, expires 11/18/16	(1,275		)
	Microsoft Corp., (CBOE),
185	strike price $62.50, expires 11/18/16	(2,220		)
	PepsiCo, Inc., (CBOE),
71	strike price $111, expires 11/18/16	(959		)
	Procter & Gamble Co., (ASE),
55	strike price $88, expires 11/18/16	(3,548		)
	Prudential Financial, Inc., (ASE),
85	strike price $92.50, expires 12/16/16	(3,485		)
	Qualcomm, Inc., (CBOE),
105	strike price $75, expires 11/18/16	(3,202		)
	Texas Instruments, Inc., (ASE),
125	strike price $75.50, expires 11/18/16	(563		)
	United Health Group, Inc., (CBOE),
55	strike price $150, expires 11/18/16	(632		)
	Visa, Inc., (ASE),
110	strike price $88, expires 11/18/16	(385		)
	Total Call Options Written (premiums received-$67,156)	(38,965		)
	Total Investments, net of call options written
	(cost-$356,264,382)—150.6%	317,389,522
	Other liabilities in excess of other assets—(50.6)%	(106,604,538		)
	Net Assets—100.0%	$	210,784,984

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Notes to Schedule of Investments:

*Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of official closing prices, last reported sales prices, or if no sales or closing prices are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services. The Fund’s investments are valued daily using prices supplied by an independent pricing service or broker/dealer quotations, or by using the last sale or settlement price on the exchange that is the primary market for such securities, or the mean between the last bid and ask quotations. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.

The Board of Trustees (the “Board”) has adopted procedures for valuing portfolio securities and other financial instruments in circumstances where market quotations are not readily available (including in cases where available market quotations are deemed to be unreliable), and has delegated primary responsibility for applying the valuation methods to Allianz Global Investors Fund Management LLC (the “Investment Manager”) and Allianz Global Investors U.S. LLC (the “Sub-Adviser” or “AllianzGI U.S.”), an affiliate of the Investment Manager. The Fund’s Valuation Committee was established by the Board to oversee the implementation of the Fund’s valuation methods and to make fair value determinations on behalf of the Board, as instructed by the Board.

During the reporting period the Fund’s former Investment Manager merged with and into AllianzGI U.S. (the “Merger”). The following describes the implementation of the Board’s procedures prior to the Merger. The Sub-Adviser monitors the continued appropriateness of methods applied and identifies to the Investment Manager circumstances and events that may require fair valuation. The Investment Manager, in turn, determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Investment Manager (in consultation with the Sub-Adviser) determines that a valuation method may no longer be appropriate, another valuation method may be selected or the Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review and ratify the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Valuation Committee. Following the Merger, AllianzGI U.S. took on the responsibilities of both the Investment Manager and the Sub-Adviser.

Short-term debt instruments maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing premiums or discounts based on their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.

The prices used by the Fund to value investments may differ from the value that would be realized if the investments were sold, and these differences could be material. The Fund’s net asset value (“NAV”) is normally determined at the close of regular trading (normally, 4:00 p.m. Eastern Time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.

(a)All or partial amount segregated for the benefit of the counterparty as collateral for call options written and long-term and short-term loan financing.

(b)Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $48,531,244, representing 23.0% of net assets.

(c)144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.

(d)Step Bond—Coupon is a fixed rate for an initial period then resets at a specific date and rate.

(e)In default.

(f)Non-income producing.

(g)Fair-Valued—Securities with an aggregate value of $1,101,530, representing 0.5% of net assets.

(h)Illiquid.

(i)Perpetual maturity. The date shown, if any, is the next call date.

(j)Debtor-in-possession financial obligations.

(k)Principal amount includes approximately $23,914 extended to two indirect, wholly-owned subsidiaries located in Brazil through an intercompany note secured by all or substantially all of the assets of the Brazilian subsidiaries.

(l)$57,552 of this amount is being held in escrow for the benefit of the debtor by an agent. PIK interest is not charged on the amount held in escrow until drawn by the debtor.

(m)At October 31, 2016, the cost basis of portfolio securities (before call options written) for federal income tax purposes was $357,284,222.

Gross unrealized appreciation was $1,483,519, gross unrealized depreciation was $41,339,254 and net unrealized depreciation was $39,855,735.

The difference between book and tax cost basis was attributable to wash sale loss deferrals and the differing treatment of bond amortization.

(n)Transactions in call options written for the nine months ended October 31, 2016:

	Contracts		Premiums
Options outstanding, January 31, 2016	1,870		$	102,810
Options written	13,416		560,391
Options terminated in closing transactions	(3,803	)	(141,991		)
Options expired	(9,775	)	(454,054		)
Options outstanding, October 31, 2016	1,708		$	67,156

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:

· Level 1 — quoted prices in active markets for identical investments that the Fund has the ability to access

· Level 2 — valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs

· Level 3 — valuations based on significant unobservable inputs (including the Valuation Committee’s own assumptions and securities whose price was determined by using a single broker’s quote)

The valuation techniques used by the Fund to measure fair value during the nine months ended October 31, 2016 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.

The Fund’s policy is to recognize transfers between levels at the end of the reporting period. An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input, individually or in aggregate, that is significant to fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used. Assets categorized as Level 1 or 2 as of period end may have been transferred between Levels 1 and 2 since the prior period due to changes in the valuation method utilized in valuing the investments.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each major category of assets and liabilities for Level 2 and Level 3, in accordance with U.S. Generally Accepted Accounting Principles.

Equity Securities (Common and Preferred Stock)—Equity securities traded in inactive markets are valued using inputs which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or evaluated price quotes received from independent pricing services that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable, the values of equity securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Convertible Bonds & Notes—Convertible bonds & notes are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of convertible bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Corporate Bonds & Notes—Corporate bonds & notes are generally comprised of two main categories: investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Senior Loans—Senior Loans generally are valued by independent pricing services based on the average of quoted prices received from multiple dealers or valued relative to other benchmark securities when broker-dealer quotes are unavailable. These quoted prices are based on interest rates, yield curves, option adjusted spreads, credit spreads and/or other criteria. To the extent that these inputs are observable, the values of Senior Loans are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Option Contracts—Option contracts traded over-the-counter (“OTC”) and FLexible EXchange (“FLEX”) options are valued by independent pricing services based on pricing models that incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts based on a given strike price. To the extent that these inputs are observable, the values of OTC and FLEX option contracts are categorized as Level 2. To the extent that these inputs are unobservable the values are categorized as Level 3.

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

A summary of the inputs used at October 31, 2016 in valuing the Fund’s assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):

				Level 2 -		Level 3 -
				Other Significant		Significant
	Level 1 -			Observable		Unobservable		Value at
	Quoted Prices			Inputs		Inputs		10/31/16
Investments in Securities - Assets
Convertible Bonds & Notes	$	—		$	134,098,588	$	—	$	134,098,588
Corporate Bonds & Notes	—			75,039,256		—		75,039,256
Common Stock	73,938,021			—		—		73,938,021
Convertible Preferred Stock:
Electrical Components & Equipment	—			1,849,095		—		1,849,095
Financial Services	—			2,272,249		—		2,272,249
Food Products	819,254			1,629,030		—		2,448,284
Media	—			—		13		13
Oil, Gas & Consumable Fuels	1,928,545			900,900		—		2,829,445
Pharmaceuticals	3,745,030			1,755,485		—		5,500,515
All Other	13,584,512			—		—		13,584,512
Senior Loans	—			—		1,088,155		1,088,155
Warrant	—			—		13,362		13,362
Short-Term Investment	—			4,766,992		—		4,766,992
	94,015,362			222,311,595		1,101,530		317,428,487
Investments in Securities - Liabilities
Call Options Written, at value:
Market price	(38,965		)	—		—		(38,965		)
Totals	$	93,976,397		$	222,311,595	$	1,101,530	$	317,389,522

At October 31, 2016, the Fund had no transfers between levels.

Schedule of Investments

AllianzGI Diversified Income & Convertible Fund

October 31, 2016 (unaudited) (continued)

A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the nine months ended October 31, 2016, was as follows:

												Net
										Net		Change in
	Beginning							Accrued		Realized		Unrealized			Transfers		Transfers		Ending
	Balance							Discounts		Gain		Appreciation/			into		out of		Balance
	1/31/16		Purchases			Sales		(Premiums)		(Loss)		Depreciation			Level 3		Level 3		10/31/16
Investments in Securities - Assets
Convertible Preferred Stock	$	581,250	$	—		$	—	$	—	$	—	$	(581,237	)	$	—	$	—	$	13
Senior Loans	—		1,187,812			—		—		—		(99,657		)	—		—		1,088,155
Warrant	—		10,113		†	—		—		—		3,249			—		—		13,362
Totals	$	581,250	$	1,197,925		$	—	$	—	$	—	$	(677,645	)	$	—	$	—	$	1,101,530

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at October 31, 2016:

	Ending Balance		Valuation	Unobservable	Input
	at 10/31/16		Technique Used	Inputs	Values
Investments in Securities - Assets
Convertible Preferred Stock	$	13	Liquidation Value	Recovery Rate	$	0.01	*
Senior Loans	1,088,155		Model Price	Proprietary Data Used in Model	$	91.61
Warrant	13,362		Fundamental Analytical Data Relating to the Investment	Price of Warrant	$	0.361131

* Preferred stock trades are in lots of 1,000.

† Issued via corporate action.

The net change in unrealized appreciation/depreciation of Level 3 investments held at October 31, 2016, was $(677,645).

Glossary:

ADR — American Depositary Receipt

ASE — American Stock Exchange

CBOE — Chicago Board Options Exchange

DIP — Debtor-in-Possession

PIK — Payment-in-Kind

Item 2. Controls and Procedures

(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR270.30a-3(c))), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits

(a) Exhibit 99.302 Cert. — Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

SIGNATURES

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.

Registrant: AllianzGI Diversified Income & Convertible Fund
By:	/s/ Thomas J. Fuccillo
Thomas J. Fuccillo,
President & Chief Executive Officer
Date: December 28, 2016
By:	/s/ Lawrence G. Altadonna
Lawrence G. Altadonna,
Treasurer, Principal Financial & Accounting Officer
Date: December 28, 2016

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.

By:	/s/ Thomas J. Fuccillo
Thomas J. Fuccillo,
President & Chief Executive Officer
Date: December 28, 2016
By:	/s/ Lawrence G. Altadonna
Lawrence G. Altadonna,
Treasurer, Principal Financial & Accounting Officer
Date: December 28, 2016