AMP Capital Ethical Leaders Diversified Fixed Income Fund

Product Name

AMP Capital Ethical Leaders Diversified Fixed Income Fund

Issuer

AMP Capital

Category

Investment

Type

Fund or Trust

Target

Wholesale

Certified Since

2007

Asset Classes

Fixed income

Markets

Australia

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
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water
  • Investment2 More sustainable companies
  • No inclusions5 No inclusions

It fully excludes:

    Overview

    The AMP Capital Ethical Leaders Funds offered give investors access to responsible investing opportunities across a wide range of asset classes, including shares, property and fixed income. The Funds takes a multi-manager approach, where specialist investment managers, who demonstrate competitive advantages in their fields of investment, source investments for the Funds. In constructing the Funds, we aim for diversification across - asset classes (in the case of the AMP Capital Ethical Leaders Conservative, Balanced and Growth Funds - investment managers, and - investment styles and approaches. The Funds are managed within a responsible investment framework. This means that the underlying investment managers combine traditional investment metrics with environmental, social and governance criteria to identify investments that meet acceptable standards, in areas such as environmental performance, social impact, ethics, labour standards and corporate governance. Two specialist committees– the Investment Committee and the Ethics Committee–maintain the investment focus and the Funds’ responsible investing integrity.


    Description


    As described above, Ethical Leaders I Ethics Charter applies also to this product, especially as this relates to corporate bonds. ESG criteria are applied in the management of the Ethical Leaders Balanced Fund’s government bond portfolios. 

    AMP Capital’s ESG research team, led by Dr Ian Woods, provides a list of governments to be excluded from the benchmark based on a detailed assessment of how well countries are addressing the various ESG risks they face. This covers 70 of the most commonly invested government bonds, including all OECD countries and key emerging market economies. ESG criteria are applied in the management of the Ethical Leaders Balanced Fund’s government bond portfolios. 

    The Ethical Leaders Balanced Fund’s sovereign bond managers avoids the countries that rank in the bottom quartile of the rankings. The principal sovereign risks considered by the ESG research team are associated with governance, corruption and rule of law. The ESG research team is increasingly focusing on key socio-economic criteria that they believe are not well captured in standard credit ratings of sovereigns. 

    The international bond mandate also requires the manager to invest a portion of the fund in green bonds (neutral weight of 30% of the mandate). 

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

    AMP Capital Ethical Leaders International Share Fund

    AMP Capital Ethical Leaders diversified funds: Balanced, Growth, High Growth & Conservative

    AMP Capital Ethical Leaders Australian Share Fund

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