AMP Capital's managed investments have a very small exposure to externally managed Securitised Assets. This typically includes Mortgages and some Asset Backed Securities. From an ESG perspective, investing in Securitised Assets may give rise to issues or challenges over ‘transparency’ and/or ‘look through’ to the underlying assets (e.g. bundled loans). Where such challenges or transparency issues exist AMP Capital may seek to limit or avoid exposure to these types of assets.
As an example, the AMP Capital Responsible Investment Leaders (RIL) Diversified Fixed Income Fund* invests in securities and debt in both developed and emerging markets. The fund portfolio is managed internally by AMP Capital’s Fixed Income team as well as portions of the portfolio which are managed externally though a multi-manager platform. The fund applies an ESG framework which incorporates in-house and external ESG research, grey listings and some limits to exposure / non-investable grade securities. This includes limits to CDS exposure and the fund avoids investments in Asset Backed Securities. AMP Capital does due diligence on externally managed portfolios, including through the RIL Ethics Committee which monitors compliance with the fund charter.