EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 by levels of conviction, a low conviction rating still means research effort allows allianzGI to obtain information there is some degree of conviction and a low-rated stock is more quickly and more accurately than the market by still a potential candidate for inclusion in a portfolio. Stocks going directly to the source. Grassroots Research® has been which attract a negative view can be vetoed to indicate credited with identifying numerous under-followed or pre- they should not be included in portfolios. viously und iscovered opportunities. Serving as a comple- conviction lists are shared globally. an advantage of this ment to traditional research, the Grassroots Research® approach is that we fully capture the stock preferences of field force conducts practical investigative fieldwork, high- the whole investment platform, making previously hidden lighting both risks and opportunities. research and investment ideas more widely available. Grassroots Research® produces research that is proactively conviction lists also highlight where opinions differ which requested by investment professionals. currently we com- also helps to promote debate and discussion of ideas. mission over 30 studies per month across the globe to sup- fundamental research activities are supported and com- port conviction in individual stocks and sectors. In-depth plemented by the proprietary Grassroots® Research® net- information is gathered on under-researched marketplace work. trends, the competitive environment and global business Grassroots Research® developments impacting current and potential investments. While Grassroots Research® does not work equally well in Grassroots Research®, a separate and proprietary research all sectors, since it is based on the premise of reaching the entity with over 350 market researchers and reporters, relevant stakeholders, it is particularly valuable in the provides an additional level of investigative fieldwork and consumer, retail, pharmaceutical, telecom services, IT and market research at the local level, across the globe. This leisure industries. Source: allianz Global Investors for illustrative purposes only. Idea generation is facilitated by our Global collaboration Step 3: Team Stock Selection System, an online resource which enables interactive com- once a working universe of stocks has been established munication across the firm. Regular company engagement through Idea Generation, the portfolio managers go is also a core element of the Idea Generation process, with through their own process of stock selection. This leve- the firm’s equity platform meeting over 1,000 businesses a rages in particular the stock selection of allianzGI’s Global year. Growth team. Here, Stock Sponsors present their ideas at all these inputs are cross-checked by the team to source the a weekly meeting, alongside a written investment case for best investment ideas that allianzGI’s global investment all team members to read in advance. platform can offer. 15