01 03.6 Conflicts of interest Principle 3 Introduction 02 Sustainable investing Our fiduciary duty requires us to exercise any rights We have a dedicated governance structure and a set of In 2021, the Proxy Voting Committee convened twice 03 – including engagement – in the best interest of our policies and processes for managing conflicts of interest to decide on proxy voting decisions that constituted a Active stewardship clients. This includes identifying, monitoring and actively in proxy voting and engagement, including a Conflict conflict of interest in our view. Both concerned voting 03.1 Our engagement approach and fairly managing any conflicts of interest that may of Interest Policy which we publish in our Stewardship matters relating to our parent company, Allianz. 03.2 Engagement outcomes arise from our activities. We regularly review existing Statement. These comprise the following elements: We bring all voting matters related to Allianz to the by theme and new business processes, new products and services, Committee’s attention for decision-making on a regular 03.3 Collaborative engagements new business relationships and internal restructuring • Global oversight – AllianzGI has established a Global basis. This included election of a board member of 03.4 E scalation where initial measures to ensure we identify conflicts of interest at Proxy Voting Committee to provide oversight of the Allianz at another company and approval of the engagement is not enough the earliest reasonable opportunity. proxy voting process. remuneration policy. In both cases the Committee 03.5 I nfluencing companies through • Conflict management – There are instances when confirmed our analysts’ proposals, which resulted in proxy voting We have identified the following major examples we may not wish to vote proxies in strict adherence an against vote in the case of the election. 03.6 Conflicts of interest of potential conflicts of interest with respect to our to our voting guidelines. Where a potential material 03.7 Industry engagement stewardship activities: conflict of interest arises between the company’s and commitments 1. A llianzGI is owned by Allianz, a global insurance interest and those of a client with respect to 04 and financial group whose interests and views may proxy voting, the Global Proxy Voting Committee AllianzGI as a sustainable business not always align with what we consider best for will convene to evaluate the issue, considering our clients. information from all relevant sources. 05 2. Our c ore business is investment management – • Functional separation – A separation of processes Appendix managing money and assets for our clients. Where and management within AllianzGI helps ensure a client’s fund holds securities in a sponsor company, that individuals who are clients or have business a perceived conflict of interest may arise if we relationships with the firm are not able to exercise exercised the proxy vote or engaged in topics on improper influence over our proxy voting decisions. behalf of our client which may impact our own Proxy voting rests entirely with the Investment platform. commercial interests or arrangements. • Training – We have implemented employee training 3. W e may sometimes have clients that advocate a designed to prevent perceived or actual conflicts of voting position with respect to a proxy vote on a interests from constituting or giving rise to a material company that we view to be inconsistent with the risk of damage to the interests of our clients. long-term best interests of other clients. • Risk management – To manage potential conflicts 4. W e may invest in a company that is also a significant in our engagement activities, the Risk Management distributor of our products. function has developed clear and transparent internal escalation guidance. The guidance distinguishes between non-public and public engagement activities.