01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 03.2 How we engage Principle 7 8 9 03.2.3 Selecting and engaging While we are not allowed to compel retail with fund managers fund managers to use our engagement In the context of engagement and fund- guidelines, we do ask for details on of-fund approaches, the research and proxy voting, the engagement process selection of fund managers is a major and portfolio composition. Our detailed focus for our Multi Asset team. Over the questionnaire looks at whether there is a last two decades, we have developed and proxy voting policy in place, its guidelines, enhanced our fund research capabilities whether proxy voting is done internally to independently and systematically select or delegated to an external provider, the most promising managers. We follow and how the engagement process a stringent process and collate 昀椀ndings in works. We request examples of previous a central shared database called MARS. engagement e昀昀orts. We continuously enhance our research For exchange traded fund (ETF) and selection process to adapt to changes strategies, we meet with providers on a in the regulatory environment and ful昀椀l quarterly basis and discuss the provider’s our clients’ requirements. As part of this, sustainable products and policies. This can we undertake deep and comprehensive be done by o昀昀ering input on the evolution due diligence that encompasses fund of sustainable screens and KPIs, and manager interviews and an exhaustive providing advice on which markets are questionnaire. Important considerations well served by sustainable products. such as investment philosophy, team The funds we recommend for investment and research capabilities, portfolio are regularly screened for compliance construction, and sustainability e昀昀orts with our standards, including are evaluated and compared to sustainability aspects. We continue competitive strategies. to improve and enhance this process Assessing sustainability capabilities by updating our questionnaire at and processes in a systematic way is least annually, or whenever there are crucial. When analysing a sustainable changes in the regulatory environment, strategy, we look at factors such as to o昀昀er our clients the most promising the engagement approach, including sustainable strategies. proxy voting, engagement reporting and transparency. Allianz Global Investors Sustainability and Stewardship Report 2023 45