Market terminology A Active ownership Active ownership is defined as taking an active role as a shareowner to promote the long-term success of companies in such a way that society and the ultimate providers of capital also prosper. This often includes active share voting and the engagement with companies, regulators and governments. Article 6, 8 or 9 products In the context of SFDR (SFDR: EU Sustainable Finance Disclosure Regulation), each fund has to be self-classified by asset managers into one of three categories: Article 6, 8 or 9. – Article 6 (only) funds do not integrate any kind of sustainability into the investment process (“non-sustainable” products) – Article 8 funds promote environmental or social characteristics (“light green” products) – Article 9 funds have sustainable investment as its objective (“dark green” products) At Allianz Global Investors, our three ESG product categories help provide transparency on the SFDR characteristics of our products: – ESG risk-focused products are classified as Article 6 (only) funds – Sustainability-focused products aim at meeting the requirements of Article 8 – Impact-focused products generally aim at meeting the requirements of Article 9 Consistent with AllianzGI’s commitment to offering clients a high standard of sustainable investment products, our approach to Article 8 goes beyond the minimum regulatory requirements. B Best-in-class/best-in-universe/best-effort investing Best-in-class : this approach aims to select/weight the best issuers in each sector, in theory without excluding any sectors; Best-in-universe : this approach aims to select/weight the best issuers in the initial universe. Unlike the best-in-class approach, certain sectors may be excluded if their contribution to sustainable development is not sufficient relative to issuers in other sectors represented in the initial universe; AllianzGI Sustainable Investing – Glossary 5