Responsible Returns Investment Tool

Product Name	AMP Capital Responsible Investment Leaders Australian Share Fund
Issuer	AMP Capital
Category	Investment product
Type	Fund/Trust
Target	Retail, Wholesale
Certified Since	2005
Certification Symbol	Responsible Investment
Asset Classes	Equities - Australian only
Markets	Australia
Investment Approaches	Negative Screening, ESG Integration, Engagement
It Includes	More sustainable companies
It Excludes	Fossil fuels Logging Tobacco Nuclear energy (including uranium) Human rights abuses Labour rights violations Animal welfare Armaments Alcohol Gambling Pornography Genetic engineering

Overview

A multi-manager strategy that blends Australian Equity 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 Responsible Investment Leaders (RIL) fund’s Ethics Charter. An Ethics Committee fulfills an environmental, social and governance (ESG) oversight role for the fund. The fund also actively engages with companies on a range of ESG issues including climate change; human rights and supply chain and corporate governance.

Description

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

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

not invest in companies that manufacture tobacco (0% of revenue);
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 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 have four key engagement themes:

Climate change
Human rights and supply chain
ESG disclosure by companies
Corporate governance

In addition, the fund engages with individual companies on company specific issues and topical ESG issues including ethics in the banking sector, payday lending practices and anti-microbial resistance.

AMP Capital Responsible Investment Leaders Australian Share Fund

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