AMP KiwiSaver Scheme - AMP Growth Fund

Product Name

AMP KiwiSaver Scheme - AMP Growth Fund

Issuer

AMP Wealth Management NZ

Category

KiwiSaver

Type

KiwiSaver

Target

Retail

Certified Since

2022

Asset Classes

Diversified / Multi-asset

Markets

New Zealand

Investment Approaches

Negative Screening, Engagement and voting

It Includes:

    It has some level of screening for:

    • Riaa icons 36 Armaments
    • Riaa icons 33 Fossil fuels
    • Riaa icons 50 Nuclear power

    It fully excludes:

    • Riaa icons 36 Armaments
    • Riaa icons 33 Fossil fuels
    • Riaa icons 35 Tobacco

    Overview

    Approach to sustainable investment The Manager has adopted a Sustainable Investment Philosophy. This will initially be implemented for securities, but it is intended to be implemented progressively over all asset classes over time as more sustainable investment options become available. This encompasses three key elements: Sustainable investment exclusions Exclusions play a role in delivering part of our Sustainable Investment Philosophy. For "AMP"-branded Funds, we use a mandate structure which allows certain sectors and securities to be excluded. Integration of environmental, social and governance (ESG) considerations into our investment decisions Where possible, the Manager will implement a weighting to the “good” by overweighting our exposures to companies that have a higher ESG rating where we consider it appropriate to do so based on factors such as expected returns, volatility and liquidity. We seek to achieve this overweighting by preferring indices (where available and appropriate) that re-weight portfolios to companies that have higher ESG ratings relative to others. Stewardship through voting and engagement with companies AMP believes that stewardship is an important aspect of sustainable investing. The stewardship approach has two key aspects: (1) voting through shares held; and (2) engagement with companies. Stewardship activities will be undertaken by BlackRock exercising its rights or engaging with companies on our behalf or in consultation with us. These activities focus on (1) board quality; (2) environmental risks and opportunities; (3) capital strategy and capital allocation; (4) compensation that promotes long-termism; and (5) human capital management. Monitoring and compliance We monitor underlying investments on an ongoing basis to ensure compliance with our Sustainable Investment Philosophy, including ensuring that BlackRock and custom index providers apply our exclusions. We also have processes in place to help identify any investment in excluded securities and ensure that these are divested promptly. We use customized indices for some underlying funds, and regularly check that these indices are functioning as intended. Governance and reporting Our Sustainable Investment Philosophy is overseen by our Investment Committee and regularly reviewed and updated. Our areas of focus will continue to evolve and change over time as we consider client and regulator feedback on sustainable investing issues. We will publish voting and engagement outcomes and make these publicly available on our website no less than six-monthly. In addition, we will provide regular updates on our areas of focus as part of regular communications to clients. Exclusion Description type All companies that provide components or services used in the manufacturing of controversial weapons, including: Controversial weapons – Anti-Personnel Mines – Biological and Chemical Weapons – Cluster Weapons – Nuclear Weapons – Depleted Uranium – White Phosphorus Civilian firearms All producers of civilian firearms and any companies that earn more than 5% of their revenue from the distribution, retail and supply of civilian firearms. Military weapons All companies deriving 5% or more revenue from the production of conventional weapons, weapons systems, components and support systems and services Fossil fuel All companies that earn revenues from the exploration, extraction, production, refinement, transportation and storage of fossil fuels, including: – Arctic oil & gas – Oil & gas – Oil sands – Shale energy – Thermal coal Nuclear power All companies generating (or that have installed capacity to generate) more than 5% of their electricity from nuclear sources Tobacco All producers of tobacco products and all companies that earn more than 5% of their revenue from the distribution, retail and supply of tobacco-related products. Palm oil All producers and any companies that earn revenue from the distribution and supply of palm oil. Whale products Companies that derive revenue from whale meat production. UN Global Compact violators Any companies that are assessed to be non-compliant with the UN Global Compact principles. Primary industry exclusions Any companies with Primary Industry Exclusions as defined by GICS codes2Integrated – Oil & Gas –Coal –Oil & Gas Drilling – Oil & Gas Equipment – Oil & Gas Exploration and Production – Tobacco NZ Super Fund exclusions Any companies on the NZ Super Fund exclusion list. The exclusions criteria in the table above identify companies directly involved with each of the areas noted, or if they are the majority owner (50% ownership or more) of other companies involved in any of the criteria we are looking to exclude. An additional ‘significant ownership filter’ is used to identify and exclude companies who own between 10% and 50% of any companies with any involvement in one of the exclusions in the table above. In our approach we only apply the significant ownership filter when we have total exclusion of the activity, e.g. controversial weapons, fossil fuel, palm oil, etc. Integration of environmental, social and governance (ESG) considerations into our investment decisions Where possible, the Manager will implement a weighting to the “good” by overweighting our exposures to companies that have a higher ESG rating where we consider it appropriate to do so based on factors such as expected returns, volatility and liquidity. We seek to achieve this overweighting by preferring indices (where available and appropriate) that re-weight portfolios to companies that have higher ESG ratings relative to others. Stewardship through voting and engagement with companies AMP believes that stewardship is an important aspect of sustainable investing. The stewardship approach has two key aspects: (1) voting through shares held; and (2) engagement with companies. Stewardship activities will be undertaken by BlackRock exercising its rights or engaging with companies on our behalf or in consultation with us. These activities focus on (1) board quality; (2) environmental risks and opportunities; (3) capital strategy and capital allocation; (4) compensation that promotes long-termism; and (5) human capital management. Monitoring and compliance We monitor underlying investments on an ongoing basis to ensure compliance with our Sustainable Investment Philosophy, including ensuring that BlackRock and custom index providers apply our exclusions. We also have processes in place to help identify any investment in excluded securities and ensure that these are divested promptly. We use customised indices for some underlying funds, and regularly check that these indices are functioning as intended. Governance and reporting Our Sustainable Investment Philosophy is overseen by our Investment Committee and regularly reviewed and updated. Our areas of focus will continue to evolve and change over time as we consider client and regulator feedback on sustainable investing issues. We will publish voting and engagement outcomes and make these publicly available on our website no less than six-monthly. In addition, we will provide regular updates on our areas of focus as part of regular communications to clients. More information on the Manager's approach to sustainable investment is available at amp.co.nz/si.


    Description


    The AMP KiwiSaver Growth Fund follows the AMP Sustainable Investment Philosophy principles. The approach has three key elements: Sustainable Investment Exclusions; Integration of ESG considerations into our investment decisions; and Stewardship through voting and engagement with companies. Please see attached the threshold/ screening applied to the AMP Growth Fund.

     
    Thresholds for Screening_Q19response.docx 126.22 KB

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