Stewardship Statement

Allianz Global Investors Stewardship Statement Value. Shared.

AllianzGI Stewardship Statement Contents 3 Background 4 Principles 5 Discharging our stewardship responsibilities 6 Managing conflicts of interest in relation to stewardship 8 Monitoring investee companies 10 Engagement strategy 11 Escalation of stewardship activities 12 Acting collectively with other investors 13 Proxy voting 15 Reporting on stewardship activities 16 Assurance 16 Contact 2

AllianzGI Stewardship Statement Background Active stewardship is a key element of our commitment at Allianz Global Investors to shape pathways towards a sustainable future. As an active investment manager, we believe that constructive engagement dialogue with investee companies is essential. Moreover, the exercising of shareholder voting rights is a fiduciary responsibility to our clients and a core part of our role in driving positive change for some of the most important issues affecting the long-term development of investee companies. This statement sets out our engagement policy for the long term across a range of different and stewardship approach, including the steps investment strategies, and pay close attention we take to meet regulatory obligations and the to growth prospects, return on capital, good principles of certain Stewardship Codes and governance, market positioning and quality of codes of best practices that apply in the franchises. Furthermore, we believe that material jurisdictions in which we operate in Europe, environmental and social considerations are North America and Asia. crucial to the success of a company looking for long-term outperformance. Allianz Global Investors refers to the global investment management business, which Consistent with our investment philosophy and operates under the marketing name Allianz approach, we routinely engage in dialogue with Global Investors (AllianzGI) through affiliated investee companies and seek to proactively entities worldwide. AllianzGI is an active present a viewpoint, seek change where investment manager serving institutional and necessary, and monitor the results of our retail clients around the world. The business is engagement. Our investment views are influenced diversified across equity, fixed-income, multi- by the outcomes of these engagements and are asset and alternative strategies and diversified linked to the proxy voting process, forming a by region. consistent stewardship approach. AllianzGI has a strong investment culture based on bottom-up, fundamental research. We invest 3

AllianzGI Stewardship Statement Principles Discharging our stewardship responsibilities AllianzGI’s stewardship activities include monitoring aimed at improving corporate practices and disclosure and engaging companies on a broad range of issues, of information at an industry or market level. including, but not limited to strategy, performance, capital management, corporate governance and Active investment strategies benefit from the exercising of shareholder rights, risk management, operational voting rights. AllianzGI sees proxy voting as a core part of our issues, audit and accounting, management remuneration investment and stewardship processes and our fiduciary duty and incentives, environmental, social and business in managing our clients’ assets. We have robust policies for conduct issues, transparency and disclosure. major corporate governance and proxy voting matters and put substantial effort into developing and debating our views AllianzGI sees the value of engagement to be in sharing and positions. Our proxy voting decision-making process our knowledge, views and perspectives with boards and involves close collaboration between portfolio managers management of investee companies with the aim of helping and our Sustainability Research and Stewardship team. Our to improve performance and to better assure their long- engagement activities inform proxy voting, while corporate term business prospects, ultimately in the interest of our governance analysis undertaken for proxy voting purposes clients. We also find that exposure to a broader range of feeds into investment research. AllianzGI’s integrated stakeholders at investee companies, particularly non- approach to stewardship is enabled by our investment executive board members, enhances our understanding philosophy, the structure of our investment platform, and of the business, its strategy and value drivers, as well as our our global collaboration system, as follows: knowledge of the governance, culture and sustainability approach of the companies we invest in, which enriches 1. W e are an active manager running a large number our investment analysis. Critically, it helps to assess quality of long-term fundamental strategies. This creates a of leadership and oversight, and to build confidence and substantial pool of portfolio managers who are willing trust in the board and management. to engage with investee companies to help improve performance or mitigate risk. Portfolio managers In addition to direct company engagements, we undertake also participate in and contribute to public policy targeted thematic engagements, public policy engagements engagements, where intervention is considered and participate in collaborative engagement initiatives in the best interests of our clients. 4

AllianzGI Stewardship Statement 2. O ur investment platform comprises more than 700 investment professionals who collaborate to identify opportunities across major asset classes and geographies and facilitate understanding of the issues and trends that affect companies, industries and markets. 3. A llianzGI has specialist Sustainability Research and Stewardship teams managing thematic research and engagement strategy and developing a thematic approach structured across three strategic themes that we believe are critical: climate change, planetary boundaries and inclusive capitalism. The fundamental role of these teams is to share their expertise in the consideration of ESG factors to identify risks and opportunities that have not been fully priced in by the markets, thus supporting enhanced stock selection for the benefit of the investment decision makers. The Stewardship team leads AllianzGI’s engagement and proxy voting activities globally. It facilitates our engagement efforts and often leads engagements on corporate governance, environmental, social and business conduct matters. Furthermore, the Stewardship team contributes to public policy engagements and collective engagement in multi-stakeholder initiatives. 4. A llianzGI’s global collaboration system ensures that all sector research and issuer analysis, third-party and proprietary sustainability research, engagement notes and other outputs are readily available to investment staff. This enables all fund managers and analysts across the company to review and discuss internal research and comments when making investment recommendations or selecting issuers for portfolios. It also facilitates real-time communication for investment professionals, helping us to run an effective proxy voting process, provide and collect feedback on company engagements and share engagement outcomes. 5

AllianzGI Stewardship Statement Managing conflicts of interest in relation to stewardship As a fiduciary to our clients, we have a duty at AllianzGI how and whether to engage with issuers or vote proxies to act in our clients’ long-term best interests, and to never to our investment platform which is intentionally put the firm in a position where its own interests conflict insulated from our other business functions to ensure with its duty to its clients, or where its duty to one client that such decisions are based solely on the interests of results in an irreconcilable conflict with its duty to other our clients. clients. AllianzGI has a regulatory duty to manage conflicts of interests fairly, both between itself and its 3. A llianzGI may from time to time have clients that clients and between different clients. Stewardship of our advocate a voting position with respect to a proxy vote clients’ assets requires diligence in monitoring and on a company that we view to be inconsistent with the identifying potential conflicts of interest, whether they long-term best interests of other clients. To this end, are internal or external in nature. AllianzGI has created a clear separation between the proxy voting and the client relationship functions. To ensure proper stewardship in our clients’ best interests, AllianzGI has implemented Global Corporate Governance 4. W e may invest in a company that is also a significant Guidelines (documents: allianzgi.com), policies and distributor of our products. procedures, and employee training designed to prevent perceived or actual conflicts of interest from constituting or Other potential conflicts of interest include: giving rise to a material risk of damage to the interests of – A n investee company that is also a client our clients. Examples of potential conflicts include (but are – A n investee company where a director, officer or not limited to): employee of AllianzGI is also a director of that company 1. A llianzGI is owned by Allianz SE, a global insurance and We have a dedicated governance structure and a set of financial group whose interests and views on particular policies and processes in place for managing conflicts of matters may not always align with those AllianzGI interest in proxy voting and engagement. An overview of considers best for our clients. To address the potential this is provided below. conflicts that could arise based on our relationship with our parent company, AllianzGI has imposed strict Governance controls and information barriers designed to insulate our decision-making process from improper influence AllianzGI is managed and overseen by the Executive and to ensure that we are able to carry out our Committee (ExCo). With respect to all investment matters, investment decisions and stewardship activities in a the responsibility for ensuring our approach is designed to manner consistent with the interests of our clients. meet our obligations to our clients rests with the Investment Executive Committee (IEC), comprised of the firm’s senior 2. T he core business of AllianzGI is investment investment leadership. The Compliance and Risk management - managing money and assets for our Management functions provide further governance clients. Where a clients’ fund holds securities in a sponsor oversight by regularly evaluating our processes and company, a perceived conflict of interest may arise if we reviewing decisions to ensure that we have taken exercised the proxy vote or engaged in topics on behalf appropriate actions. of our client which may impact our own commercial interests or arrangements. This potential conflict will be The structure and business of AllianzGI are further mitigated by ceding the ultimate decision making on described at: https://www.allianzgi.com/en/our-firm. 6

AllianzGI Stewardship Statement Regulatory framework and conflicts of Training - AllianzGI has implemented global and local interest policy policies, including Codes of Ethics and Business Conduct, which are designed to ensure employees always put first the Our policies and procedures governing conflicts of interest interests of our clients and take care to avoid even the are designed to ensure that our conduct is in line with all appearance of impropriety. Such policies require our applicable regulatory requirements. The legal entities that employees to disclose all potential conflicts and, if together form AllianzGI are registered with and supervised applicable, recuse from voting decisions in cases in which by the relevant regulatory authorities in jurisdictions in which there is a potential conflict or even a potential perceived we operate around the world. conflict of interest. Specifically, portfolio managers or Proxy Committee members with a personal conflict of interest Global oversight - AllianzGI has established a Global Proxy regarding a particular proxy vote must recuse themselves Voting Committee to provide oversight of the proxy voting and not participate in the voting decisions with respect to process. The Committee reviews and discusses any proxy that proxy. We review and train all employees on such voting issues that may raise material conflicts of interest policies at least annually. between AllianzGI and its clients. It approves proxy voting decisions where a conflict of interest has been identified, Management - To manage potential conflicts in our and based on internal analysis, where the proposed vote engagement activities, AllianzGI has developed a clear and direction departs from AllianzGI’s policy recommendation. transparent internal escalation guidance. The guidance The decision making is based on AllianzGI’s Global distinguishes between non-public and public engagement Corporate Governance Guidelines summarising our position activities and assigns decision-making authority for on specific issues, including issues of corporate governance proposed engagements with clients, major suppliers, non- and corporate actions, and gives a general indication as to governmental organizations, policymakers, media and how we will vote in such instances. other parties. Our approach to managing potential conflicts in engagement activities, including collective engagement Conflict management - There are instances when we may initiatives and public policy engagements, is set out below: not wish to undertake proxy voting in strict adherence to the guidelines. Where a potential material conflict of interest – Affiliated companies: We normally refrain from formal arises between the company’s interest and those of a client engagement with affiliated companies. However, we are with respect to proxy voting, the Global Proxy Voting willing to provide informal feedback to the boards and Committee will convene to evaluate the issue, taking into management of affiliated companies, including account information from all relevant sources, including the explanation of any votes against management or our portfolio management team, the stewardship analyst, position on issues and concerns raised by other investors. management of a company presenting a proposal, shareholder groups and independent proxy research – Directors and employees: In instances where directors services. or employees of AllianzGI or our affiliated companies hold directorships or advisory roles at a company we are Other potential conflicts of interest in voting clients’ proxies engaging, those persons will be excluded from are addressed through the application of the Global engagement or voting. Corporate Governance Guidelines and Proxy Voting Policy, which is implemented through an unaffiliated third-party – Clients and significant suppliers: We do not change proxy voting service provider. our general approach to engagement with clients and significant suppliers. All deviations from the guidelines are documented and reviewed by our Compliance function to ensure AllianzGI employees comply fully with relevant policies and procedures. Functional separation - A separation of processes and management within AllianzGI helps ensure that individuals who are clients or have business relationships with the firm are not able to exercise improper influence over our proxy voting decisions. Proxy voting rests entirely with the investment platform. We have robust policies and procedures in place designed to ensure that our investment professionals’ proxy voting decisions are not subject to improper influence and that individuals who work in client service, sales and marketing or other non-investment functions are not in a position to influence the voting process. 7

AllianzGI Stewardship Statement Monitoring investee companies The performance of our investment portfolios depends Monitoring is accomplished by: on that of the companies we are invested in; it is therefore – F ollowing public announcements by investee companies essential that we continually monitor different aspects and their industry peers of these companies’ performance. – R eviewing interim and final results announcements, trading updates and other information provided by AllianzGI’s global investment platform comprises over investee companies 700 investment professionals who collaborate to guide – R eviewing annual reports and reference documents clients with investment decisions. Portfolio managers take – R eviewing corporate governance practices and responsibility for monitoring companies in their respective shareholder alignment as part of company research portfolios while Sustainability and Stewardship analysts and prior to voting at shareholder meetings monitor companies and issues where material ESG risks have – R eviewing environmental, social and business conduct been identified and engagements initiated to address those. risks at investee companies as part of the research process Our monitoring process for investee companies covers: – R eviewing third-party research and meeting third-party – S trategy implementation and significant developments analysts and industry experts that can impact delivery and value – A ttending investor presentations and events – F inancial performance and key value drivers, assessed – M eeting with management and investor relations on a by reference to the strategy and main Key Performance regular basis Indicators (“KPIs”), as well as key competitors and – M eeting with Board chairpersons or non-executive broader industry directors (where possible and appropriate) to discuss – C apital management issues matters related to strategy, governance, management – C orporate governance practices and alignment with team performance and succession, risk management, minority shareholders data security and cyber defence, management of – Q uality and effectiveness of the leadership team environmental and social impacts, business conduct and (ie, board and management), and succession planning culture, etc – M aterial risks, including environmental and social issues, – E ngaging in dialogue with investee companies on that are likely to impact performance, share price and specific issues of concern identified during the research dividend payments, and mitigation measures and monitoring process or to encourage companies to – Q uality of company reporting, including from the seize emerging opportunities accounting, audit and sustainability perspectives, as – E xercising voting rights at shareholder meetings of well as quality of management discussion and analysis investee companies – I dentification of financial, operational or reputational – I n exceptional cases, attending general meetings of issues at an early stage, which may result in a significant investee companies. loss in investment value – S ustainability strategy, targets and implementation including the company’s pathway towards net zero. 8

AllianzGI Stewardship Statement AllianzGI’s global collaboration system enables investment professionals to share files, external reports and research notes in a structured and fully searchable manner. By enhancing the flow and transparency of investment-related information, we make monitoring of investee companies more efficient, and maximise the benefits of our global resources to the advantage of our clients. Furthermore, our investment professionals have daily interactions and open engagement in regional morning meetings, strategy meetings, investment committees etc. where they discuss emerging news and its possible impact on issuers both within client portfolios and within the watch list of preferred issuers. We support the development of corporate governance best practice standards aimed at helping companies to prevent governance failures that can result in value destruction. We expect all companies to consider the risks that such codes of best practice seek to address, and to either adopt respective recommendations or develop and disclose alternative arrangements that are equally effective but may be more appropriate for the business. AllianzGI, therefore, supports the “comply or explain” principle, and our research and investment professionals give careful consideration to all explanations of departures from respective codes of best practice. As an active investment manager, we may from time to time receive material non-public information from companies or their advisers (eg, through “market soundings” of potential transactions in a company’s securities). The default position of AllianzGI is that we wish to avoid receiving such information, because it makes us an “insider” and therefore restricts our ability to trade shares of the relevant company. However, from time to time, we may selectively decide to participate in a market sounding or similar event and thus receive what may be deemed material non-public information. This decision can only be made by the Global Head of Investments, regional and asset-class Chief Investment Officers, Heads of Trading or a senior investment professional at AllianzGI to whom one of these individuals has delegated authority. We have designed and implemented policies and procedures to ensure that in such situations we comply with all relevant laws and regulations governing the possession and restricting the use of material non-public information. 9

AllianzGI Stewardship Statement Engagement strategy At AllianzGI, engaging in dialogues with investee feedback, challenging corporate practices and seeking companies is an integral part of the investment process. change, and, in rare circumstances, public interventions. Our investment professionals interact with companies on The most common engagements are around strategy, a regular basis and use these interactions as an opportunity operational and financial performance, capital for engagement. All investment professionals are management, corporate governance and proxy voting involved in engagement activities. issues, as well as environmental and social practices of investee companies. While our preference is to engage Our engagement strategy rests on two pillars: investee companies confidentially, we are prepared to escalate engagement activities publicly if we conclude that Risk-based approach: Our risk-based approach focuses on the confidential approach has gone as far as it can without the material ESG risks that we identify. Targeting is closely delivering progress, and that our engagement objective related to the size of our exposure, whether per market, would be best served by escalation. fund or considering total value of investment. The focus of engagements is determined by considerations such as Engagement can take various forms, including: significant votes against company management at past – Electronic correspondence general meetings and sustainability issues that we identify – F ace-to-face meetings and conference calls with investor as below market practice. Engagements can also be relations, executive directors and senior management, triggered by controversies connected to sustainability or board chairpersons and non-executive board members, governance. Engagement activities typically relate to an company secretaries, as well as heads of operational, investee company’s strategy, operational or financial controls and sustainability functions performance, capital management, corporate governance – F ormal letters to boards and management and ESG risks and impacts. – D iscussions with company advisers and other external stakeholders Thematic approach: We also lead themed engagement – P roxy voting and communication of voting decisions projects. These are either linked to our three strategic to investee companies sustainability themes – climate change, planetary – D ialogue and collaboration with other shareholders boundaries and inclusive capitalism – or related to – P ublic interventions, through co-filing/filing shareholder governance themes within specific markets or more broadly. resolutions, speaking at shareholder meetings, and We identify thematic engagement projects based on topics commenting in the media. that we deem to be important for our portfolio investments, for example energy transition or climate change. We AllianzGI sees stewardship as an ongoing process, which is prioritise them based on the size of our holdings per market not limited to the circumstances where escalation is deemed or portfolio, and factor in the priorities of our clients. We necessary. For example, we would engage in dialogue with observe on these particular topics – climate change and the chairperson or a non-executive director of our investee the energy transition – an increasing number of requests companies even if there are no material concerns to from clients for engagement. address. We believe this two-pronged approach will allow us to As an active investment manager, AllianzGI sees engagement achieve better balance between ESG risk reductions in as a way to reduce investment risk, help improve corporate our portfolios and leading clients and companies on an performance and better assure long-term business inclusive transition pathway to a sustainable future. The prospects of investee companies. Consequently, while we approach also improves our ability to set out engagement keep records of our engagements and positive stewardship objectives clearly at the outset. outcomes, we consider success of our engagements an integral part of our investment performance. All AllianzGI’s All direct engagements will be coordinated between engagement notes and outcomes are available on our AllianzGI’s internal stakeholders in a transparent and global collaboration system, thus allowing all portfolio inclusive way using our global collaboration system. managers and analysts to reflect these in their investment Our engagement activities include monitoring, providing decisions. 10

AllianzGI Stewardship Statement Escalation of stewardship activities In our engagements, companies are not always – J oining collaborative engagement initiatives co- responsive to our concerns, or their actions do not give ordinated by investors, trade associations and other due consideration to the interests of minority shareholders. organisations where these seek to address market If we conclude that our concerns cannot be resolved or industry-wide concerns through standard interactions with investee companies, – E xpressing concerns through company advisers, for we may start a more focused engagement approach example in merger and acquisition (M&A) situations and consider escalation to achieve our engagement – C o-filing/filing resolutions at shareholder meetings objectives. The chosen engagement approach will – R educing or exiting our investment position as and depend on the circumstances and the nature of our when appropriate (any decision to reduce or exit an concerns. Escalation options are not mutually exclusive investment position will be taken at a portfolio level). and can be combined depending on the situation. AllianzGI will consider making public statements as a last Engagement is typically escalated through additional resort when all other channels of constructive dialogue meetings with management and a more intensive dialogue have been exhausted. with the board chairperson and non-executive directors. We prefer to address the issues of corporate governance For all public interventions, a clear internal escalation and succession planning, risk management and internal procedure is in place. Depending on the nature of concern controls, quality of audit, executive remuneration, and long- and preferred escalation action, our public interventions will term sustainability matters directly with a non-executive be reviewed following a dedicated reputational risk process board chairperson, lead/ senior independent director and involving senior management as appropriate. Our parent other non-executive board members – thereby gaining company, Allianz SE, will be notified as appropriate. senior input on the matters of concern. We also consider emphasising our position to the board in writing if we have the impression that direct interaction has been unsuccessful. AllianzGI prefers direct engagement with companies; but, where direct engagement does not progress as satisfactorily or where our shareholding is insufficient for an effective escalation in our own right, we consider other options, including, but not limited to: – Voting against resolutions at shareholder meetings – C ollaborating with other institutional investors on single issues 11

AllianzGI Stewardship Statement Acting collectively with other investors AllianzGI participates in collective engagement when – E uropean Fund and Asset Management Association this route offers the most effective way of achieving (EFAMA) engagement objectives and is in the best interests – E uropean Leveraged Finance Association (ELFA) of our clients. Collaboration with other investors in – F orum per la Finanza Sostenibile (Italian Responsible company engagements is particularly important where Investment Forum) share ownership is dispersed, and it is difficult to have – F orum pour l´Investissement Responsable (French Social shareholder voice heard through individual engagements. Investment Forum) – G erman Investment Funds Association (BVI) AllianzGI’s decision to initiate or join a collective engagement – H ong Kong Investment Funds Association (HKIFA) will depend on a number of factors, including: – I nstitutional Investors Group on Climate Change (IIGCC) – I nternational Corporate Governance Network (ICGN) – T he specific issue of concern – T he UK Investment Association (IA) – E xtent to which we can exert influence on our own – T he UK Investor Forum – T rust and alignment in views and objectives with – UN PRI other investors – A greement on strategy and potential escalation Please refer to the AllianzGI Sustainability and Stewardship – P robability of success. Report 2021 for an overview of activities and different sustainability initiatives in which we participate. AllianzGI’s collective engagement activities are undertaken in compliance with relevant statutory rules and guidelines We see it as our fiduciary duty to raise and seek to address from regulatory authorities, including on market abuse, issues that can impact the long-term sustainability and insider dealing and concert party regulations. performance of our investments through public policy engagement. In our approach we seek to speak with one AllianzGI is a member of multiple trade associations, voice across all regions and asset classes and help external investor networks and other bodies that facilitate investor stakeholders understand the rationale for our involvement engagement, and we leverage these when and as and how they can address investor concerns. For this appropriate. At any given time, AllianzGI may be actively reason, all proposed public policy engagements are involved with several investor organisations and projects reviewed following a dedicated reputational risk process that facilitate discussion, sharing of information and involving senior management as appropriate. collective engagement at an issuer or public policy level, including, but not limited to, the following: – A ssociation Francaise de la Gestion Financiere (French Asset Management Association) – C limate Action 100+ – C ouncil of Institutional Investors (CII) 12

AllianzGI Stewardship Statement Proxy voting AllianzGI’s approach to proxy voting of external audit, and sustainability-related issues. Exercising voting rights at shareholder meetings is a We apply proprietary Corporate Governance Guidelines fiduciary duty to our clients and a core part of AllianzGI’s across our holdings globally. We put great effort and care role as an active investor and of our stewardship process. into developing in-house views and positions on corporate Our goal is to vote at shareholder meetings of all companies governance and proxy voting matters. The Global we invest in where AllianzGI has the authority to exercise Corporate Governance Guidelines are underpinned by voting rights. detailed proxy voting policies that help to shape our voting decisions, while our proxy voting process ensures that AllianzGI is bound by the terms of investment management significant governance and voting matters, and potential agreements with our clients, including those related to conflicts of interest, are assessed on a case-by-case basis. proxy voting. We therefore may refrain from voting, or only vote on specified holdings/proportion of holdings in AllianzGI’s Global Corporate Governance Guidelines are institutional clients’ portfolios if so mandated by the client. approved by our Global Proxy Voting Committee. We AllianzGI respects the right of clients in segregated accounts review our Global Corporate Governance Guidelines and to retain voting rights, request that voting rights are related policies at least once per year, considering changes exercised in line with the client’s voting policy, or delegate in market developments, vote turn-out, regulatory proxy voting and engagement activities to a third-party amendments and changes in expectation levels of our service provider. We do not provide clients with the option clients. We include feedback from our service provider on to influence voting decisions on a case-by-case basis. the applicability of our voting policy in the review process. Finally, AllianzGI may refrain from voting if share blocking can be applied due to market regulation or custodian All proposed changes to the guidelines and the voting practices, or where specific market/custodian requirements policy require consultation with the investment platform make it impractical to vote. involving equity portfolio managers and analysts in all our locations globally. Input from our investment teams enables us to create a nuanced approach that combines global Global Corporate Governance Guidelines best practice standards for corporate governance with the and policy review knowledge of how these can be best applied and promoted in local markets. AllianzGI’s approach to corporate governance and proxy voting is set out in our Global Corporate Governance Proxy voting service providers Guidelines (documents: allianzgi.com). The Guidelines outline our expectations regarding corporate governance All proxy voting research and initial voting recommendations practices at investee companies, including composition are generated based on our own proprietary proxy voting and effectiveness of corporate boards, shareholder rights, policy. Proxy voting research is provided by Institutional capital-related authorities, executive compensation, quality Shareholder Services (“ISS”), a third-party proxy voting 13

AllianzGI Stewardship Statement service provider. AllianzGI uses an electronic proxy voting AllianzGI aims to have one integrated view when it comes platform provided by ISS to cast our votes. In addition, we to proxy voting decisions and will only depart from this have access to various other sources of sustainability approach in exceptional circumstances when differing research, corporate governance indicators, as well as sell- votes by investment teams can be justified by strategy- side analysis that we use to supplement our analysis and specific considerations. assessment. AllianzGI encourages investee companies to engage with us Proxy voting and internal consultation long in advance of shareholder meetings. We favour robust process dialogue that leads to improvements in corporate practices rather than voting against management proposals at shareholder meetings. Whenever practical, we will seek The general approach of AllianzGI, which applies globally, discussions with companies on contentious issues. Where is to use corporate governance analysis as an important we hold a significant stake or have been engaging the input into company research, internal ratings and company company, we will endeavour to advise the company in engagement. Our investment platform has processes advance of any decision to vote against or abstain on designed to link portfolio managers and the Sustainability management proposals. Research and Stewardship teams, and through their collaboration we are able to highlight ESG risks and Securities lending substandard practices in investee companies. AllianzGI has adopted a risk-based approach to proxy Securities lending can play a role in enhancing returns voting research and analysis. This means the Stewardship where it is deemed appropriate. We do not actively engage team focuses its effort on reviewing shareholder meeting in securities lending on behalf of either our mutual funds proposals for the proportion of holdings in our portfolios or assets for institutional clients, whether via an in-house deemed particularly important to us and potentially higher securities lending desk or a third-party agency. However, risk, mainly large aggregate positions across our strategies, where an individual institutional client requests us to facilitate core holdings in individual funds, companies with an securities lending through external agency lending – for ongoing engagement activity, etc. Our proxy voting policy example via an independently selected custodian – we is consistently applied to the remaining holdings. strive to support this activity within our operational process frameworks. Once reviewed, proposals are logged within our global collaboration system which is accessible to our investment teams. This means they can review potentially contentious proposals for holdings in their portfolios and discuss them with the Stewardship team for further analysis before reaching a consensus decision. For policy overrides, internal consultations involving analysts and portfolio managers take place through this system as well. We do not automatically support company management or the board, which is evidenced by our voting statistics. 14

AllianzGI Stewardship Statement Reporting on stewardship activities At AllianzGI stewardship activities are undertaken for – A ll engagement records are maintained in our global and in the interests of our clients. AllianzGI is committed collaboration system alongside other research notes to ensuring a high degree of transparency in our proxy and comments from analysts and portfolio managers. voting activities and the decisions taken on behalf of our We provide clients with an overview and examples of clients. stewardship activities for their funds on request, on an ad-hoc basis and during annual reviews. We report on our stewardship activities as follows: – A llianzGI publishes an annual summary report providing – O ur proxy voting records are disclosed on a continuous an overview of our proxy voting and engagement basis one day after the respective shareholder meetings activities on our corporate website (documents: of our investee companies. A full disclosure of all our allianzgi.com). votes, including vote direction and rationale for votes against management, as well as summary voting – A llianzGI places high importance on the value of research statistics is available on our corporate website and sharing of intellectual capital. We publish selected (Proxy Voting Dashboard) research and policy papers on our corporate website (allianzgi.com). – A llianzGI has provided a standard monthly reporting offering for sustainable investments to its clients since 2020. Depending on the investment strategy, clients can view their sustainable investments compared to the product benchmark. Our reporting contains carbon emissions information that enables investors to see the carbon footprint of their portfolios in absolute and relative terms as well as an overview of the engagement activities relevant to the fund. – F und specific proxy voting activity reports are provided to institutional clients who wish to receive them at a frequency in line with their own requirements. 15

AllianzGI Stewardship Statement Assurance Independent assurance over proxy voting processes is performed at AllianzGI by the following departments and activities: Internal audit is performed by the Internal Audit department of Allianz Asset Management AG, the holding company of AllianzGI. The primary purpose of the Internal Audit department is to examine, evaluate and report independently on the adequacy and effectiveness of the internal control framework by applying a risk- and process-based audit approach, which forms an annual audit plan. Proxy voting is included in the annual audit plan on a periodic basis. The scope of the audit typically covers all aspects and components of proxy voting described in this document, and associated policies. Additionally, Internal Audit provides an independent assessment of the adequacy and effectiveness of the control environment and recommends improvements to it, where appropriate. Contact for matters relating to proxy voting and engagement: Dr Antje Stobbe Head of Stewardship Tel: +49 (0) 69 24431 2630 Email: [email protected] www.allianzgi.com 16

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