AMP Capital Ethical Leaders International Share Fund

Product Name

AMP Capital Ethical Leaders International Share Fund

Issuer

AMP Capital

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2005

Asset Classes

International equities

Markets

Australia, 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 52 Human rights abuses
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

The AMP Capital Ethical Leaders Funds offered 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


The fund’s objective is to provide competitive investment returns aligned with client values  which engages with companies for a better future.


In addition to assessing a manager's investment capability, consideration is also given to a manager's ability to substantially meet the responsible investment criteria outlined in the AMP Capital Ethical Leaders Charter of Operation (Charter). At a minimum, a manager must also be able to meet the negative screening criteria listed in the Charter. Managers will also be well-regarded if they can pro-actively apply supply sustainable and responsible investment criteria to their security selection approach, above and beyond these exclusions, on behalf of the Funds.

The Funds are governed by an ethical charter which prohibits investments in companies operating within sectors recognised to have a high negative social impact. This means that the Funds 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 range 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 of oil from oil sands, and 
-       conversion of coal to liquid fuels/feedstock.

We may update these exclusions, from time to time, following review and approval by the Ethics Committee.

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

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

AMP Capital Ethical Leaders Australian Share Fund

AMP Capital Ethical Leaders Diversified Fixed Income Fund