01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 03.9 Transparently managing conflicts of interest Principle 3 7 Our 昀椀duciary duty requires us to 2. Our core business is investment • Global oversight – AllianzGI has • Training – we have implemented exercise any rights – including management – managing money and established a Global Proxy Voting employee training designed to prevent engagement – in the best interest of assets for our clients. Where a client’s Committee to provide oversight of the perceived or actual conflicts of interest our clients. This includes identifying, fund holds securities in a sponsor proxy voting process. This reports to the from constituting or giving rise to a monitoring and actively and fairly company, a perceived con昀氀ict of interest Investment Executive Committee. material risk of damage to the interests managing any con昀氀icts of interest that may arise if we exercised the proxy • Conflict management – there are of our clients. may arise from our activities. vote or engaged in topics on behalf instances when we may not wish to • Risk management – to manage We regularly review existing and new of our client that may impact our own cast a proxy vote in strict adherence potential conflicts in our engagement business processes, new products and commercial interests or arrangements. to our voting guidelines. Where a activities, the Risk Management services, new business relationships and 3. We may sometimes have clients that potential material conflict of interest function has developed clear and internal restructuring measures to ensure advocate a voting position with respect arises between the company’s interest transparent internal escalation we identify con昀氀icts of interest at the to a proxy vote on a company that we and those of a client with respect to guidance. The guidance distinguishes earliest reasonable opportunity. view to be inconsistent with the long- proxy voting, the Global Proxy Voting between non-public and public We have identi昀椀ed the following major term best interests of other clients. Committee will convene to evaluate the engagement activities. potential con昀氀icts of interest with respect 4. We may invest in a company that is also issue, considering information from all In 2023, the Proxy Voting Committee to our stewardship activities: a signi昀椀cant distributor of our products. relevant sources. convened three times to decide on proxy 1. AllianzGI is owned by Allianz, a global 5. A director, o昀케cer or employee of Allianz • Functional separation – a separation voting decisions that constituted a potential insurance and 昀椀nancial group whose SE or AllianzGI may also be a director of of processes and management within con昀氀ict of interest. This concerned voting interests and views may not always a company that we invest in. AllianzGI helps ensure that individuals matters relating to our parent company, align with what we consider best for Our governance structure and policies who are clients or have business Allianz, and major distributors. our clients. and processes for managing con昀氀icts of relationships with the firm are not interest in proxy voting and engagement able to exercise improper influence include a Con昀氀ict of Interest Policy over our proxy voting decisions. Proxy published in our Stewardship Statement, voting rests entirely with the investment which comprises the following elements: platform in line with pre-defined oversight procedures. Allianz Global Investors Sustainability and Stewardship Report 2023 71