Exhibit (h)(13)(b)(1)

EXPENSE WAIVER AGREEMENT
Allianz Funds
1633 Broadway
New York, NY 10019

October 4, 2011

Allianz Global Investors Fund Management LLC
1633 Broadway
New York, NY 10019

Ladies and Gentlemen:

     This Expense Waiver Agreement (this “Agreement”) is entered into as of the date first set forth above between Allianz Funds (the “Trust”), on behalf of its series as set forth in Exhibit A hereto (each a “Fund” and, together, the “Funds”), and Allianz Global Investors Fund Management LLC (“AGIFM”), on the following terms:

     1. The Trust is an open-end management investment company that has multiple separate investment portfolios, including the Funds.

     2. Pursuant to an Amended and Restated Administration Agreement dated June 4, 2008 (the “Administration Agreement”) and an Amended and Restated Investment Advisory Agreement dated May 5, 2000 (the “Advisory Agreement” and, together with the Administration Agreement, the “Management Agreements”), the Trust has retained AGIFM to provide the Trust and the Funds, and the Funds’ shareholders, with investment advisory, administration and other services.

     3. During the term of this Agreement, for each Fund listed under “Fund” in Exhibit A, for the share classes of such Fund specified adjacent under “Classes,” AGIFM shall waive its fees payable under the particular Management Agreement specified adjacent under “Agreement” in the amount or according to the schedule specified adjacent under “Expense Waiver.” In each case, the amount waived will first be determined as aggregated across all share classes specified under “Classes” and then prorated among the specified share classes according to the average daily net assets attributable to each share class.

     4. This Agreement shall be effective as of November 1, 2011 for a term lasting through October 31, 2012.

     If the foregoing correctly sets forth the agreement between the Trust and AGIFM, please so indicate by signing and returning to AGIFM the enclosed copy hereof.

Very truly yours,
ALLIANZ FUNDS
By: Name:	/s/ Brian S. Shlissel Brian S. Shlissel
Title:	President

ACCEPTED AND AGREED TO:

ALLIANZ GLOBAL INVESTORS FUND MANAGEMENT LLC

By: Name:	/s/ John C. Maney John C. Maney
Title:	Managing Director and Chief Executive Officer

Exhibit A

			Expense Waiver (stated as a
			percentage of average daily net
			assets of the Fund or attributable
			to the specified share classes, as
Fund	Classes	Management Agreement	applicable)
Allianz AGIC International	All Classes	Advisory Agreement	0.05%
Allianz AGIC Pacific Rim	All Classes	Advisory Agreement	0.05%
Allianz NFJ Dividend Value	All Classes	Advisory Agreement	0.025% on assets in excess of $7.5 billion and by an additional 0.025% on assets in excess of $10 billion
Allianz NFJ International Value Fund	All Classes	Administration Agreement	0.075%
Allianz NFJ Small Cap Value	All Classes	Advisory Agreement	0.025% on assets in excess of $3 billion, by an additional 0.025% on assets in excess of $4 billion and by an additional 0.025% on assets in excess of $5 billion
Allianz NFJ Small Cap Value	Institutional Class Administrative Class	Administration Agreement	0.05%

[Exhibit A to Allianz Funds Expense Waiver Agreement]