Allianz Global Investors U.S. LLC (“AllianzGI U.S.”), the investment manager of AllianzGI Diversified Income & Convertible Fund (the “Fund”) (NYSE:ACV), announced today that the Fund’s Board of Trustees approved revisions to the Fund’s strategy of writing (selling) covered call options on stocks held in its equity portfolio (the “Option Strategy”). The Fund’s objective is to provide total return through a combination of current income and capital appreciation, while seeking to provide downside protection against capital loss. Under normal market conditions, the Fund will seek to achieve its investment objective by investing in a combination of convertible securities, debt and other income-producing instruments and common stocks and other equity securities.

The Fund’s current Option Strategy is disclosed as follows:

The Fund expects to normally employ a strategy of writing (selling) covered call options on the stocks held in its portfolio (the “Option Strategy”). It is expected that the Fund will ordinarily write call options on the individual stocks held in its portfolio, and with respect to up to approximately 70% of the value of each position. The Fund initially intends to write covered call options on approximately 50% of the Fund’s common stocks, but may write covered call options on approximately 30% to 80% of the Fund’s common stocks from time to time, depending on market conditions. The Fund’s use of the Option Strategy may vary from time to time, depending on market conditions and other factors.

Effective immediately, the Fund’s Option Strategy and related disclosure is revised in its entirety as follows:

The Fund expects to normally employ a strategy of writing (selling) covered call options on the stocks held in its portfolio (the “Option Strategy”). The Fund will ordinarily write call options on the individual stocks held in its portfolio, and with respect to up to approximately 70% of the value of each position. The Fund will normally write covered call options on up to 80% of the Fund’s common stocks, with the percentage varying from time to time, depending on market conditions and other factors. The Fund’s use of the Option Strategy may vary from time to time, depending on market conditions and other factors, and the Fund may determine not to employ the Option Strategy at all during certain periods.

The change to the Option Strategy is intended to afford the Fund’s portfolio managers greater flexibility in managing the strategy by decreasing the lower range of stocks in the Fund’s portfolio on which it will ordinarily write options from 30% to 0%, and making clear that the Fund may determine not to employ the Option Strategy at all during certain periods.

Risks Associated with the Fund’s Option Strategy. The ability of the Fund to achieve current gains to support Fund dividends is partially dependent on the successful implementation of its Option Strategy. There are several risks associated with transactions in options on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objective. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful to some degree because of market behavior or unexpected events. The Fund’s ability to use options successfully will depend on the ability of AllianzGI U.S. to predict pertinent market movements, which cannot be assured. As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. In other words, as the Fund writes covered calls over more of its portfolio, the Fund’s ability to benefit from capital appreciation of its common stock holdings becomes more limited. The Fund is a closed-end management investment company. There can be no assurance that the Fund will achieve its stated objectives.

About Allianz Global Investors

Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have more than $583 billion in AUM for individuals, families and institutions worldwide and employ over 650 investment professionals.

At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs. (Data as of September 30, 2017)

Disclosures

AllianzGI U.S., an indirect, wholly-owned subsidiary of Allianz Asset Management of America L.P. serves as the Fund's investment manager and is a member of Munich-based Allianz Group.

The Fund’s daily New York Stock Exchange closing market prices and net asset values per share as well as other information, including portfolio statistics and performance is available at https://us.allianzgi.com/en-us/products-solutions/closed-end-funds or by calling the Fund’s shareholder servicing agent at 800-254-5197.

Statements made in this release that look forward in time involve risks and uncertainties and are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in a Fund’s performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

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