For many years, AMP Capital has offered clients the ability to invest in a range of multi-manager funds. These funds are designed to provide a single investment solution, blending a range of specialist investment managers in a single fund.
These funds aim to provide diversification across asset classes, manager types and manager styles (active, enhanced index, passive), with the aim of achieving growth with smoother returns by negotiating the ups and downs of the market.
As AMP Capital actively manages the selection and appointment of investment managers (for multi-manager funds), we are constantly assessing and implementing new opportunities with the potential to improve the risk and return outcomes of clients' portfolios.
In 2018, we implemented a number of changes to our International Equities underlying manager line up which affirmed the ESG credentials of the RIL range of funds:
- We appointed two new leading ESG managers:
1. Boston Partners, who run the Boston Partners Global Equity strategy, a customised ESG mandate incorporating an ESG score from RobecoSAM, a specialist in sustainable investing.
2. C Worldwide Ethical, who run the C Worldwide Global Ethical strategy. C Worldwide utilise GES Investment Services to provide ESG data to manage their global ethical strategy. They collaborate with other investors through GES to engage with the company management on ESG issues. C Worldwide has been a UNPRI signatory since 2012.
- We also expanded Lazard’s existing mandate to include emerging markets and amending the benchmark to MSCI All Country World Index. Lazard engages MSCI’s ESG research in addition to employing GMI Ratings and Trucost as part of its investment process.
In 2018 we also undertook a broad range of engagement activities on behalf of clients. The main themes included: Child labour & treatment of workers, climate change & energy efficiency, gender diversity, the environment, corporate governance, pollution, executive pay, responsible banking and animal welfare.
Our external managers also exercise votes on the shares they hold on our behalf including for passive strategies. AMP Capital monitors the voting activities of external managers and where we may have concerns with regard to a specific issue, we can also choose to engage with the external manager.
AMP Capital also undertakes periodic reviews of our external managers with regard to their approach to considering ESG issues. Where possible, we also seek opportunities throughout the year to meet and discuss their approaches to voting and ESG integration more broadly.