Sustainable and Responsible Investment Exclusion Policy


For certain investment funds issued and managed by Allianz Global Investors (AllianzGI) the so called SRI Strategy applies.

SRI Strategy
means a Sub-Fund’s investment strategy which is consistent with the principles of “sustainable and responsible investment”, which are the two central factors which aim to address the sustainability risk and return of an investment in securities of an issuer. The term “sustainable” includes, but is not limited to, themes such as resource management, climate risks and natural resources scarcity (environmental factors), distribution of wealth, healthcare & welfare, labour and gender rights, level of democracy (social factors), government effectiveness, fiscal transparency, business independence and level of corruption (governance factors). The term “responsible” includes, but is not limited to, stewardship, engagement and active ownership. These “sustainable and responsible” principles are set by a Sub-Fund’s investment manager in a certain relationship to each other and define a Sub-Fund’s investment universe which may be used within the framework of the implementation of the SRI Strategy. SRI Strategy may also be based on SRI ratings to apply negative or positive screens on a Sub-Fund’s investment universe.

AllianzGI Sustainable and Responsible Investment Funds

AllianzGI Sustainable and Responsible Investment Funds therefore apply minimum exclusion criteria for United Nations Global Compact Violators, controversial weapons or companies that derive more than a certain percentage of their revenues from weapons, companies that derive more than a certain percentage of their revenue from thermal coal extraction and utility companies that generate more than a certain percentage of their revenues from coal, companies involved in the production of tobacco, and companies involved in the distribution of tobacco in excess of a certain percentage of their revenues as shown below.

United Nations Global Compact Principles

AllianzGI Sustainable and Responsible Investment Funds refrain from investing in securities issued by companies with severe controversies regarding the principles of the United Nations Global Compact1. An internal engagement process is applied in case a company owned in our dedicated Sustainable and Responsible Investment Funds should be involved in a severe controversy regarding the UNGC principles. This active engagement may extend over some years. Should this engagement not be able to effect any change, our Sustainable and Responsible Investment Funds will divest from the positions held.

Weapons

AllianzGI Sustainable and Responsible Investment Funds refrain from investing in:

  • Securities issued by companies involved in controversial weapons (anti-personnel mines, duster munitions, chemical weapons, biological weapons, depleted uranium, white phosphorus and nuclear weapons)
  • Securities issued by companies that derive more than 10% of their revenues from the involvement in military equipment and services.

Climate Change

AllianzGI Sustainable and Responsible Investment Funds refrain from investing in:

  • Securities issued by companies that derive more than 10% of their revenue from thermal coal extraction
  • Securities issued by utility companies that generate more than 20% of their revenues from coal.

Tobacco

AllianzGI Sustainable and Responsible Investment Funds refrain from investing in:

  • Securities issued by companies involved in the production of tobacco
  • Securities issued by companies involved in the distribution of tobacco in excess of 5% of their revenues.

AllianzGI uses ISS-Ethix as the provider for Environmental, Social and Governance (ESG) research data which is used for the above mentioned exclusions.

1) More information can be found at https://www.unglobalcompact.org

Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Past performance is not a reliable indicator of future results.

This material is prepared by Allianz Global Investors and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions and investment limits expressed are as of the date indicated below and may change as subsequent conditions vary. The information and opinions and investment limits contained in this material are derived from proprietary and nonproprietary sources deemed by Allianz Global Investors to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Allianz Global Investors, its officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader.

This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, Allianz Global Investors funds, financial product or any other investment vehicle or any trading strategy nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

This material is issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted.

Allianz Global Investors, May 2020 

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