A diversified strategy that blends asset classes and investment managers, with the objective of providing investors with competitive returns over a range of markets. We combine a stringent investment approach with a responsible investment philosophy, outlined in the fund’s Charter of Operation. An Ethics Committee fulfils an environmental, social and governance (ESG) oversight role for the fund.
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 Growth 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 Growth 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:
> nuclear power (including uranium)
> alcohol, and
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 Growth 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.