AMP Capital Hedged Global Fixed Interest Fund

Product Name

AMP Capital Hedged Global Fixed Interest Fund

Issuer

AMP Capital NZ

Category

Investment product

Type

Fund/Trust

Target

Wholesale

Certified Since

2017

Certification Symbol

Responsible Investment

Asset Classes

Fixed income & cash

Markets

New Zealand

Investment Approaches

ESG Integration, Positive Screening

It Includes

  • Riaa icons 11 More sustainable companies
  • Investment2 Social impact investments
  • Riaa icons 10 Renewable energy
  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare & medical products
  • Riaa icons 13 Sustainable transport
  • Riaa icons 14 Education
  • Riaa icons 15 Social & community infrastructure
  • Riaa icons 31 Sustainable water
  • Riaa icons 30 Sustainable land management & agriculture
  • Default selected inclusion No specific inclusions

It Excludes

  • Riaa icons 33 Fossil fuels
  • Riaa icons 34 Logging
  • Riaa icons 35 Tobacco
  • Riaa icons 50 Nuclear energy (including uranium)
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 56 Animal welfare
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Riaa icons 55 Pornography
  • Riaa icons 45 Genetic engineering
  • Default selected exclusion No specific exclusions

Overview

The AMP Capital Hedged Global Fixed Interest Fund is a diversified portfolio of international fixed interest securities using a combination of specialist investment managers within a sustainable and responsible framework Recognising that environmental, social and ethical considerations, labour standards and corporate governance factors can positively impact long-term business success, the portfolio targets competitive investment performance with clear social and environmental outcomes. The multiple manager approach provides exposure to a range of sectors and securities as well as diversification across investment approaches.


Description


The objective of the AMP Capital Hedged Global Fixed Interest Fund is to outperform, over the medium term, the weighted average return of the market indices used to measure performance of the underlying funds/assets in which the fund invests.

The Responsible Investment 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 Responsible Investment 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
>      Sugar and obesity
>      Responsible finance, including payday lending
>      Corporate governance 

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.

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