EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 az DmaS SRI 15 50 75: a maximum of 20% of the total ensure that this is the case, the certification organization fund may invest in non-SRI exposure in active or passive audits the candidate fund. The decision to award the SRI target funds and long derivatives positions. Short deriva- label is taken independently by the certification body on tives positions are not restricted with respect to SRI criteria. the basis of the audit report. The selected funds are the ESG research is used for risk management, it impacts the registered on an official list of the ministry of finance. The weights of the assets in the portfolio and it has a constrai- multiGestion process is the same as for the other funds of ning power. the team with additional restriction from the Label ISR list. for the fund we apply minimum exclusion criteria follo- The investment process starts with a quantitative analysis wing allianzGI’s Sustainable and Responsible Investment for idea generation. The vast universe of the 40,000 funds Exclusion policy. additionally, a best-in-class approach is is filtered into about 90 groups of assets on a monthly applied that excludes all securities issued by companies basis, with a behavioural approach that generates lists of belonging to the 20% with the weakest SRI Rating based investment ideas. The funds that have received the atten- on a region and sector neutral evaluation in the global tion of fund analysts will be included in a long list, and an equities and EuR bond segment of the fund. extensive qualitative analysis will be applied to certain The fund’s investment process includes top-down and bot- funds on this list. tom-up elements. In terms of ESG, first securities are excluded The fund selection committee meets monthly to decide the based on a best-in-class approach and then the described funds in the investment universe. The target fund universe minimum exclusions are applied. is usually represented by around 650 funds. Allianz Smart Energy, Allianz Clean Planet, The allocation is based on a predominantly quantitative Allianz Positive Change, Allianz Better World approach to market cycles and a fundamental approach Defensive, Allianz Better World Dynamic, (fmaIc). Allianz Better World Moderate, from this selection list restricted to the Label ISR criterion Allianz Global Water, Allianz Food Security, and allocation inputs for certain types of assets (equity funds, bond funds, money market funds, etc.), the manager Allianz Sustainable Health Evolution in charge of the aVIp multi Tempéré ISR fund builds the portfolio, monitoring of allocations and risks is then applied all funds listed above are SDG-aligned funds, which means throughout the life of the fund. that the funds aim to invest worldwide in companies and projects which aim at a positive change on the environ- Allianz Valeurs Durables, Allianz Actions Euro ment and society and fulfil SDGs. Convictions, Allianz Europe Equity SRI, The allianz better World funds are considered article 9 Allianz Epargne Actions ISR Solidaire, funds (products that have sustainable investment as their Allianz Epargne Durable (*) objective). for the SDG-aligned funds, sustainable investments linked There is full integration of the financial and ESG analysis of to SDGs seek both financial returns and positive change. the companies in our investment decision-making process. Thus, our ESG evaluation is incorporated in our company’s Investments do not significantly harm any of the sustai- fundamental evaluation in the same way as traditional nable investment objectives: for the funds, negative impact financial criteria, with the aim to construct a portfolio with should be avoided (do no significant harm principle), an optimal ESG and financial profile. for our SRI analysis, unless it is an acceptable trade-off for a positive change we rely on external research provided by several extra- (e.g. more copper is needed to produce more electric financial rating agencies, with whom we have establi- cars). shed long-term partnership. Nonetheless, far beyond data Allianz Multi Tempéré ISR (*) processing from external research providers, our SRI Research team conducts complementary, in-depth, quali- The fund is a fund of funds managed by the multiGestion tative analysis on the ESG profiles of the companies. for ma Team and invests in funds which comply with the french more information on the ESG analysis process please see Label. This leads to a limited list of target funds which must our answer to question 3.5). respect a series o f criteria divided into six themes defined In addition to our SRI analysis, our selection of stocks is by french decree in order to obtain the SRI label. To based on an in-depth analysis of each company from a financial perspective. 18