Allianz Global Investors Fund Management LLC 1633 Broadway New York, NY 10019 October 4, 2011 Ladies and Gentlemen:

Exhibit (h)(13)(b)(iii)

Allianz Global Investors Fund Management LLC
0000 Xxxxxxxx
Xxx Xxxx, XX 00000

October 4, 2011

Ladies and Gentlemen:

     Pursuant to an Expense Waiver Agreement effective as of November 1, 2011 between Allianz Funds (the “Trust”) and Allianz Global Investors Fund Management LLC (“AGIFM”), AGIFM has agreed to certain waivers of its fees payable under the Amended and Restated Investment Advisory Agreement dated May 5, 2000.

     In connection with this, NFJ Investment Group LLC (“NFJ”) agrees to waive a portion of its fees payable under the Portfolio Management Agreement dated May 5, 2000 between AGIFM and NFJ with respect to the series, and in the amounts, specified in Exhibit A, for a term lasting from November 1, 2011 through October 31, 2012.

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

Very truly yours,

		ALLIANZ		GLOBAL INVESTORS FUND MANAGEMENT LLC
		By: Name:		/s/ Xxxxx Xxxxxxxx Xxxxx X. Xxxxxxxx
		Title:		Managing Director

ACCEPTED AND AGREED TO:
NFJ Investment Group LLC
By: Name:		/s/ Xxxxxxx X. Xxxxxxxx Xxxxxxx X. Xxxxxxxx
Title:		Managing Director, Chief Operating Officer

Exhibit A

		Expense Waiver (stated as a percentage
		of average daily net assets of the Fund or
		attributable to the specified share
Fund		classes, as applicable)
Allianz NFJ Dividend Value		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 Small Cap Value		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