Provide an example per asset class of your benchmarks, objectives, incentives/controls and reporting requirements that would typically be included in your managers’ appointment.
The RIL funds take a multi-manager approach, where specialist investment managers, who demonstrate competitive advantages in their fields of investment, source investments for the Funds. The funds are managed within a responsible investment framework. This means that the underlying investment managers combine traditional investment metrics with environmental, social and governance criteria to identify investments that meet acceptable standards, in areas such as environmental performance, social impact, ethics, labour standards and corporate governance.
Two specialist committees – the Investment Committee and the RIL Ethics Committee – maintain the investment focus and the funds’ responsible investing integrity. More information on our responsible investing approach and the two specialist committees is in the ‘Our investment approach’ section of the Information Memorandum for the RIL funds which is available at the following link:
Provide additional information relevant to your organisation's appointment processes of external managers.
AMP Capital provides external managers we appoint or survey with our ESG and Responsible Investment Philosophy, which outlines our organisational beliefs and commitments in relation to ESG issues. This document is available at the following link:
The RIL Charter also articulates specific ESG policy requirements which are reflected in contractual arrangements (IMA) with managers and are monitored by the AMP Capital RIL Ethics Committee.
The RIL Charter is available at the following link:
The contractual terms may typically cover:
• Screening / exclusions (where relevant)
• Assessment of ESG performance of companies within the portfolio management process
• Stock selection including identification of the most attractive stocks in the investment universe according to ESG criteria e.g. Leaders vs Unengaged companies.
• Regular ESG reporting (e.g. monthly / quarterly) confirming that portfolio holdings continue to meet the ESG requirements of the fund (Charter).
• Attribution reports
• ESG engagements undertaken with investee companies, and
• Voting statistics (for, against, abstained) and any other ESG issues of interest.
If a company falls below our responsible investing standards, it is our policy that the relevant manager sells its investment in the company within six months. The underlying managers are required to monitor companies against our responsible investing standards on an ongoing basis. If a manager breaches our policy, we may elect to terminate the services of that manager.