The AMP Capital Sustainable Share Fund gives investors access to companies listed on the Australian Securities Exchange, with the objective of providing competitive returns and avoiding companies scoring poorly in Environmental, Social and Governance characteristics.
The Sustainable Share Fund has been developed on the core belief that the assessment of intangible factors within the realm of environmental, social and governance considerations can have a meaningful impact on the operational and financial performance of a company. This belief is backed by extensive research conducted by AMP Capital and others across academia, NGO’s, Governments and industry bodies into the importance of considering non-financial factors when investing in a company. AMP Capital’s Sustainable Investments philosophy and related research may be found at http://www.ampcapital.com.au/about-us/esg-and-responsible-investment/esg-resources
The ESG Investment Research Team is responsible for the provision of proprietary sustainability research which is integral to the management of the Fund. Through the integration of sustainability research, the Fund invests in companies that are attractive in terms of their future earnings growth and are rated positively in terms of their assessed standing in relation to ESG factors. The Fund is also precluded from investing in companies that are rated non-investment grade within this framework.
AMP Capital was one of the first asset managers in Australia to integrate social and environmental factors into the financial assessment that is undertaken by Portfolio Managers, rather than simple screening.
AMP Capital is an industry leader in terms of engaging companies on governance issues. AMP Capital’s activities in this area are well-publicised. Our Corporate Governance Policy and half-yearly Corporate Governance Updates are available on the company website (www.ampcapital.com.au
) and further information is available on request. The Sustainable Fund’s constructive engagement process focuses particularly on corporate governance. This process is outlined below.
The fund will not invest in companies with a material (10% of revenue) to:
•alcohol production and sales
•tobacco production and sales
•gambling production and provision
•pornography production and distribution
•armaments, including controversial weapons; and
•uranium mining and nuclear power
In addition, the fund excludes companies with a material exposure (20% of company value)
•thermal coal mining; and
•brown coal generation
In assessing companies in other sectors, we consider the sustainability risks and consider the ESG performance of the company, though consideration of a broad range of issues, including: OH&S, greenhouse gas emissions; environmental performance, employee and community relations and corporate governance.