AllianzGI Principal Adverse Impact Statement Page 3 I PURPOSE AND OBJECTIVES This Principal Adverse Impact Statement outlines how Allianz Global Investors considers principal adverse sustainability impacts of its investment decisions on behalf of the funds and discretionary mandates (the “Clients”) for which any of the Allianz Glob al Investors entities listed in Appendix 1 (herein referred to as “Allianz Global Investors”) act as appointed investment manager. Principal adverse impacts are impacts of investment decisions that result in negative effects on sustainability factors (i.e. environmental, social and employee matters, respect for human rights, anti ‐ corruption and anti ‐ bribery matters) — even if they do not affect the value of an investment. Allianz Global Investors has a framework in place to identify and assess those impacts. Principal adverse impacts that we consider include amongst others environmental, human rights and labour rights aspects. This Statement describes Allianz Global Investors’ approach to, inter ‐ alia, its regulatory obligations and highest industry standards resulting from applicable rules, regulations and applicable global regulatory principles . I I APPLICABLE AREA This Statement is applicable to the management of assets by Allianz Global Investors. It applies to listed equities, listed corporate fixed income and private markets. Certain exceptions may apply to specific investment assets where ide ntification of principal adverse impact for technical reasons cannot be applied. This Statement is not applicable to Clients where Allianz Global Investors has delegated the portfolio management to a third - party asset manager. III DETAILS OF THE DUE DIL IGENCE POLICIES ON THE PRINCIPAL ADVERSE IMPACTS OF INVESTMENT DECISIONS ON SUSTAIN ABILITY FACTORS 1. Introduction Investment decisions might cause, contribute to or be directly linked to effects on sustainability factors that are defined a s environmenta l, social and employee matters which include topics such as respect for human rights, anti ‐ corruption and anti ‐ bribery matters. These effects can be negative, material or likely to be material. ‘Princ ipal adverse sustainability impacts’ are defined as those impacts of investment decisions that result in negative effects on sustainability factors. These impacts are derived from the issuers as well as projects that are related to invested securities. Allianz Global Investors considers such principal adverse impacts of its investment decisions with respect to its investment assets. Scope of this consideration applies to listed equities, listed corporate fixed income and private markets 1 . Allianz Global Investors is a Principles for Responsib le Investment (PRI) signatory since 2007. As stated by the PRI principles, signatories commit amongst other to “incorporate ESG issues into investment analysis and decision - making processes”, whereby ESG issues refer to both: the impact of ESG - related risk s on investments as well as their impacts on sustainability factors 2 . Our due diligence policies on the principal adverse impacts of investment decisions on sustainability factors aims to ensure that principal adverse impacts are appropriately considere d in accordance with regulatory requirements. 1 Please note that this does not extend to the investment decisions of 3 rd party assets that Allianz Global Investors GmbH does not manage. 2 For more information on ESG issues as defined by PRI, please see here: https://www.unpri.org/Uploads/x/l/q/maindefinitionstoprireportingframework_971173. pdf (page 3)