NAI Allianzgi International & Premium Strategy Fund

Investment Company Act file number

811-21724

AGIC International & Premium Strategy 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:

February 29, 2012

Date of reporting period:

May 31, 2011

Shares

Value*

COMMON STOCK—96.4%

Australia—6.7%

Biotechnology—3.1%

123,948

CSL Ltd.

$4,489,795

Commercial Services & Supplies—0.6%

189,217

Downer EDI Ltd.

790,701

Metals & Mining—3.0%

55,687

BHP Billiton Ltd.

2,651,850

18,601

Newcrest Mining Ltd.

787,964

9,801

Rio Tinto Ltd.

856,106

4,295,920

Belgium—1.1%

Chemicals—0.8%

25,259

Tessenderlo Chemie NV

1,111,775

Oil, Gas & Consumable Fuels—0.3%

27,391

Euronav NV

398,589

China—0.2%

Personal Products—0.2%

465,000

Ruinian International Ltd.

326,312

Denmark—0.7%

Construction & Engineering—0.6%

9,950

FLSmidth & Co. A/S

827,240

Electrical Equipment—0.1%

4,800

Vestas Wind Systems A/S (b)

145,214

Finland—1.4%

Auto Components—0.5%

13,200

Nokian Renkaat Oyj

645,205

Communications Equipment—0.9%

178,126

Nokia Oyj

1,240,510

France—6.9%

Automobiles—0.4%

14,943

Peugeot S.A. (b)

635,196

Commercial Banks—1.5%

27,495

BNP Paribas

2,154,377

Diversified Telecommunication Services—1.9%

118,394

France Telecom S.A.

2,711,728

Electric Utilities—0.3%

9,219

Electricite de France S.A.

374,736

Shares

Value*

Electrical Equipment—0.9%

19,616

Alstom S.A.

$1,218,503

Media—0.4%

21,394

Vivendi S.A.

599,287

Oil, Gas & Consumable Fuels—1.5%

36,497

Total S.A.

2,108,087

Germany—6.5%

Automobiles—1.0%

21,187

Daimler AG

1,502,647

Chemicals—1.9%

34,176

K&S AG

2,732,453

Diversified Financial Services—0.8%

15,459

Deutsche Boerse AG

1,221,743

Electric Utilities—0.8%

38,991

E.ON AG

1,108,874

Multi-Utilities—0.7%

16,213

RWE AG

946,295

Pharmaceuticals—1.0%

17,065

Bayer AG

1,402,488

Semiconductors & Semiconductor Equipment—0.3%

11,500

Aixtron SE

458,885

Greece—0.1%

Commercial Banks—0.1%

29,019

National Bank of Greece S.A. (b)

201,254

Hong Kong—3.2%

Airlines—0.7%

425,000

Cathay Pacific Airways Ltd.

1,018,494

Diversified Financial Services—0.4%

734,000

First Pacific Co., Ltd.

633,014

Real Estate Management & Development—2.1%

180,000

Hang Lung Group Ltd.

1,169,883

159,500

Kerry Properties Ltd.

814,771

586,000

New World Development Ltd.

999,962

2,984,616

Ireland—0.0%

Insurance—0.0%

48,618

Irish Life & Permanent Group Holdings PLC (b)

7,347

Shares

Value*

Italy—2.4%

Electric Utilities—1.3%

271,908

Enel SpA

$1,871,346

Oil, Gas & Consumable Fuels—1.1%

66,956

Eni SpA

1,605,704

Japan—15.8%

Auto Components—0.4%

29,200

Tokai Rika Co., Ltd.

537,592

Automobiles—1.4%

48,300

Toyota Motor Corp.

2,018,911

Beverages—0.3%

34,000

Kirin Holdings Co., Ltd.

477,322

Building Products—0.7%

29,500

Daikin Industries Ltd.

986,515

Commercial Banks—0.3%

81,900

Resona Holdings, Inc.

362,560

Construction & Engineering—0.4%

64,000

Kinden Corp.

519,601

Consumer Finance—0.2%

46,500

Promise Co., Ltd. (b)

335,082

Diversified Telecommunication Services—1.6%

48,700

Nippon Telegraph & Telephone Corp.

2,291,697

Electronic Equipment, Instruments & Components—0.2%

27,300

Mitsumi Electric Co., Ltd.

298,143

Leisure Equipment & Products—1.7%

23,000

Nikon Corp.

540,459

36,200

Sankyo Co., Ltd.

1,924,421

2,464,880

Machinery—1.8%

301,000

Hino Motors Ltd.

1,656,933

36,500

Shima Seiki Manufacturing Ltd.

991,658

2,648,591

Marine—2.1%

133,000

Kawasaki Kisen Kaisha Ltd.

448,536

147,000

Mitsui OSK Lines Ltd.

788,249

450,000

Nippon Yusen KK

1,701,432

2,938,217

Shares

Value*

Multiline Retail—0.2%

88,500

Daiei, Inc. (b)

$315,474

Pharmaceuticals—0.6%

11,200

Astellas Pharma, Inc.

427,112

19,700

Daiichi Sankyo Co., Ltd.

382,346

809,458

Road & Rail—0.4%

8,600

East Japan Railway Co.

501,925

Software—0.2%

1,300

Nintendo Co., Ltd.

302,253

Tobacco—0.2%

81

Japan Tobacco, Inc.

313,505

Trading Companies & Distributors—2.1%

545,900

Sojitz Corp.

1,020,405

153,300

Sumitomo Corp.

2,052,577

3,072,982

Wireless Telecommunication Services—1.0%

119

KDDI Corp.

853,467

282

NTT DoCoMo, Inc.

525,374

1,378,841

Norway—5.1%

Chemicals—2.7%

63,200

Yara International ASA

3,810,648

Commercial Banks—2.4%

232,600

DnB NOR ASA

3,509,190

Singapore—0.8%

Airlines—0.8%

99,000

Singapore Airlines Ltd.

1,137,090

Spain—7.6%

Commercial Banks—2.1%

260,361

Banco Santander S.A.

3,103,001

Construction & Engineering—0.2%

5,517

ACS Actividades Construcciones y Servicios S.A.

265,344

Diversified Telecommunication Services—3.7%

216,087

Telefonica S.A.

5,254,835

Shares

Value*

Electric Utilities—1.0%

162,409

Iberdrola S.A.

$1,440,906

Insurance—0.6%

226,669

Mapfre S.A.

872,271

Sweden—1.6%

Commercial Banks—0.8%

95,400

Nordea Bank AB

1,120,881

Personal Products—0.8%

20,850

Oriflame Cosmetics S.A. SDR

1,111,530

Switzerland—8.1%

Chemicals—0.9%

3,892

Syngenta AG (b)

1,345,315

Electrical Equipment—1.9%

101,818

ABB Ltd. (b)

2,737,579

Food Products—0.4%

8,413

Nestle S.A.

540,885

Insurance—2.7%

14,565

Zurich Financial Services AG (b)

3,902,037

Pharmaceuticals—1.6%

12,695

Roche Holdings AG

2,235,233

Textiles, Apparel & Luxury Goods—0.6%

1,640

Swatch Group AG

817,595

United Kingdom—27.1%

Aerospace & Defense—0.2%

56,269

BAE Systems PLC

306,393

Beverages—1.9%

130,071

Diageo PLC

2,772,317

Capital Markets—0.3%

53,500

ICAP PLC

427,021

Commercial Banks—2.0%

98,123

Barclays PLC

448,461

133,443

Royal Bank of Scotland Group PLC (b)

93,879

88,325

Standard Chartered PLC

2,371,389

2,913,729

Food & Staples Retailing—1.6%

462,495

WM Morrison Supermarkets PLC

2,313,828

Shares

Value*

Food Products—2.9%

127,149

Unilever PLC

$4,127,548

Industrial Conglomerates—0.1%

17,062

Cookson Group PLC

193,484

Insurance—1.6%

760,522

Old Mutual PLC

1,646,798

227,246

Standard Life PLC

786,894

2,433,692

Machinery—0.8%

84,128

Charter International PLC

1,081,775

Metals & Mining—4.1%

32,097

Anglo American PLC

1,607,073

67,080

BHP Billiton PLC

2,660,182

22,080

Rio Tinto PLC

1,538,584

5,805,839

Oil, Gas & Consumable Fuels—6.2%

302,677

BP PLC

2,330,657

Royal Dutch Shell PLC,

76,148

Class A

2,753,385

103,690

Class B

3,742,683

8,826,725

Pharmaceuticals—0.4%

25,592

GlaxoSmithKline PLC

556,396

Road & Rail—0.9%

331,510

Stagecoach Group PLC

1,297,446

Tobacco—2.2%

48,408

British American Tobacco PLC

2,172,144

27,934

Imperial Tobacco Group PLC

1,002,032

3,174,176

Wireless Telecommunication Services—3.0%

1,536,950

Vodafone Group PLC

4,273,628

Total Common Stock (cost—$207,179,786)

138,050,221

PREFERRED STOCK—0.4%

Germany—0.4%

Media—0.4%

23,486

ProSiebenSat.1 Media AG (cost—$782,459)

610,026

Principal

Amount

(000s)

Value*

Repurchase Agreement—2.7%

$3,836

State Street Bank & Trust Co., dated 5/31/11, 0.01%, due 6/1/11, proceeds $3,836,001; collateralized by Freddie Mac, 6.75%, due 3/15/31, valued at $3,914,600 including accrued interest (cost—$3,836,000)

$3,836,000

Total Investments (cost—$211,798,245) (a)(c) —99.5 %

142,496,247

Other assets less liabilities—0.5%

733,235

Net Assets—100%

$143,229,482

*

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 last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services.

Portfolio securities and other financial instruments for which market quotations are not readily available or for which a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to procedures established by the Board of Trustees, or persons acting at their discretion pursuant to procedures established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price. 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. Short term securities 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 their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days. Investments initially valued in currencies other than U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the net asset value (“NAV”) of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange (“NYSE”) is closed.

The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold and these differences could be material. The Fund’s NAV is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the NYSE on each day the NYSE is open for business.

The prices of certain portfolio securities or other financial instruments may be determined at a time prior to the close of regular trading on the NYSE. When fair valuing securities, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time the Fund’s NAV is calculated. With respect to certain foreign securities, the Fund may fair-value securities using modeling tools provided by third-party vendors. The Fund has retained a statistical research service to assist in determining the fair value of foreign securities. This service utilizes statistics and programs based on historical performance of markets and other economic data to assist in making fair value estimates. Fair value estimates used by the Fund for foreign securities may differ from the value realized from the sale of those securities and the difference could be material. Fair value pricing may require subjective determinations about the value of a security or other assets, and fair values used to determine the Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same investments. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities or other assets held by the Fund.

(a)

Securities with an aggregate value of $138,652,900, representing 96.8% of net assets, were valued utilizing modeling tools provided by a third-party vendor.

(b)

Non-income producing.

(c)

At May 31, 2011, the cost basis of portfolio securities for federal income tax purposes was $211,947,352. Gross unrealized appreciation was $66,228 , gross unrealized depreciation was $69,517,333; and net unrealized depreciation was $69,451,105.

The difference between book and tax cost basis was attributable to wash sales.

Level 2 -

Level 3 -

Other Significant

Significant

Level 1 -

Observable

Unobservable

Value at

Quoted Prices

Inputs

Inputs

5/31/11

Investments in Securities - Assets

Common Stock:

Ireland

$7,347

—

—

$7,347

All Other

—

$138,042,874

—

138,042,874

Preferred Stock

—

610,026

—

610,026

Repurchase Agreement

—

3,836,000

—

3,836,000

Total Investments

$7,347

$142,488,900

—

$142,496,247

Net Change

Beginning

Accrued

Net

in Unrealized

Transfers

Transfers

Ending

Balance

Discounts

Realized

Appreciation/

into

out of

Balance

2/28/11

Purchases

Sales

(Premiums)

Gain (Loss)

Depreciation

Level 3

Level 3*

5/31/11

Investments in Securities - Assets

Common Stock:

Australia

$10,384,547

$3,671,822

$(4,636,363

)

—

$223,338

$(66,928

)

—

$(9,576,416

)

—

Total Investments

$10,384,547

$3,671,822

$(4,636,363

)

—

$223,338

$(66,928

)

—

$(9,576,416

)

—

Registrant: AGIC International & Premium Strategy Fund

By

/s/ Brian S. Shlissel

President & Chief Executive Officer

Date: July 14, 2011

By

/s/ Lawrence G. Altadonna

Treasurer, Principal Financial & Accounting Officer

Date: July 14, 2011

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/ Brian S. Shlissel

President & Chief Executive Officer

Date: July 14, 2011

By

/s/ Lawrence G. Altadonna

Treasurer, Principal Financial & Accounting Officer

Date: July 14, 2011