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