AMP Capital Ethical Leaders Conservative Fund

Product Name

AMP Capital Ethical Leaders Conservative Fund

Issuer

AMP Capital NZ

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2007

Asset Classes

Diversified / Multi-asset

Markets

New Zealand

Investment Approaches

ESG Integration

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 10 Renewable energy and climate change solutions
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Investment2 More sustainable companies
  • Default selected inclusion No inclusions

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 56 Animal cruelty
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 45 Genetic engineering
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

The Ethical Leaders Conservative Fund is managed to specific ‘responsible investment’ criteria which prohibit investments in certain companies or activities, and encourages investment in companies with strong environmental, social and governance characteristics. An investment process is employed that combines financial analysis with a sustainability focus. The portfolio takes a responsible investment approach, which integrates environmental, social and governance factors while avoiding companies or industries with recognised high negative social impact and encourages investment in companies with strong environmental, social and governance characteristics. This fund is governed by the Ethical Leaders Charter.


Description


The Ethical Leaders Funds have a very clear mission – to invest for the long term while making the world a better place. The AMP Capital Ethical Leaders Conservative Fund is governed by the Ethical Leaders Charter, which provides the minimum environmental social and governance requirements for the underlying managers. This Charter outlines key areas of positive focus for investment which takes into account environmental, social, governance, labour standards and ethical considerations. It also means ruling out companies making significant money – more than 10% of their revenue – from industries we believe have a negative impact. 

Specifically, the AMP Capital Ethical Leaders Balanced Fund will avoid exposure (either directly or indirectly through underlying managers and funds) to companies with a material exposure to the production or manufacture of: 

>              tobacco 
>              nuclear power (including uranium) 
>              armaments 
>              gambling 
>              alcohol, and 
>              pornography. 

A company deriving more than 10% of its total revenue from these industries constitutes material exposure. 

However, those companies involved in the production of tobacco or “controversial weapons”, or essential components of them, a zero-revenue materiality test applies. Controversial weapons are considered to be land mines, cluster munitions, nuclear weapons and biological or chemical weapons. 

In addition, with the combustion of fossil-fuels being the main source of global greenhouse gas emissions, the AMP Capital Ethical Leaders Balance Fund seeks to limit exposure to companies which have a material exposure to the most carbon intensive fossil fuels by excluding any company that has more than a 10% exposure (as measured by percentage of market capitalisation, or other appropriate financial metric) to one, or a combination of, the following: 

>              mining thermal coal 
>              exploration and development of oil sands 
>              brown-coal (or lignite) coal-fired power generation 
>              transportation oil from oil sands 
>              conversion of coal to liquid fuels/feedstock.

Other products certified by the Responsible Investment Association Australasia (RIAA)

AMP Capital Ethical Leaders Growth Fund

AMP Capital Ethical Leaders NZ Shares Fund

AMP Capital Ethical Leaders Balanced Fund