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

Product Name

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

Issuer

AMP Capital

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2005

Certification Symbol

Responsible investment

Asset Classes

Diversified / Multi-asset

Markets

Australia

Investment Approaches

Negative Screening, ESG Integration

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 32 Green property
  • 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 31 Sustainable water
  • Investment2 More sustainable companies

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 34 Logging
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

The Ethical Leaders (EL) diversified funds 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 funds' Ethics Charter. An Ethics Committee fulfills an environmental, social and governance (ESG) oversight role for the funds.


Description


The diversified funds' objectives are to provide competitive investment returns aligned with client values  which engages with companies for a better future.

 The EL Ethics Charter requires the underlying managers to the fund to:

  • not invest in companies with any exposure to tobacco manufacturing (0% revenue threshold);
  • not invest in companies with a material exposure (10% of revenue) to gambling; alcohol; pornography; uranium (and nuclear power) and armaments;
  • not invest in companies with a material exposure (20% of company value) to thermal coal mining; brown coal power generation; oil sands production; transport infrastructure associated with oil sands; and coal to oil or gas processes;
  • invest in green bonds (up to 30% of the funds' corporate fixed income allocation);
  • invest in the better performing companies in other sectors.

The RIL Ethics Committee regularly reviews portfolio holdings and as a result of the review may require the underlying manager to justify the ESG rationale for holding a particular company.  If the Ethics Committee is not satisfied with the response it may either a) request the underlying manager to engage with the company on the particular ESG issue(s) of concern b) require divestment of the company.  If it is concluded that the company is to be divested, the rationale for the divestment is reviewed every two years, to see if divestment is still appropriate.

Engaging with companies and policy makers on important ESG issues is a key feature of the fund.  We currently have four key engagement themes:

  • Climate change
  • Human rights and supply chain
  • ESG disclosure by companies
  • Corporate governance including CEO pay
In addition, the fund engages with individual companies on company specific issues or topical ESG issues including ethics in the banking sector, sugar and anti-microbial resistance. 

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

AMP Capital Ethical Leaders Diversified Fixed Income Fund

AMP Capital Ethical Leaders International Share Fund

AMP Capital Ethical Leaders Australian Share Fund