AMP Capital's externally-managed funds include the Responsible Investment Leaders (RIL) range of funds, the Future Directions Funds (FDF) and the ipac funds (ipac)*. RIL, FDF and ipac are each fund-of-funds, and their multi-manager teams appoint external managers with differing investment insights, both sector and style-based. The funds invest predominantly in Australian and international shares, with smaller allocations to fixed income, property and alternatives.
RIL funds: As their name suggests, AMP Capital's RIL funds are managed within a responsible investment framework, providing clients the opportunity to invest with a higher conviction on ESG issues. The RIL Charter provides for the criteria and governance of these investments. Specialist committees under the charter govern the appointment of external managers, asset allocations, fund operation and integrity, performance and ESG issues. These committees include the RIL Work Group, the AMP Capital Sector and Diversified Investment Committee(s), and the RIL Ethics Committee. They are supported by AMP Capital's ESG experts and advisory committee, and by research and ESG manager ratings from our investment consultants Willis Towers Watson.
The RIL range of funds apply an ESG framework in investing in a diverse portfolio of assets across a range of external managers. These managers must demonstrate adherence to the RIL Charter which outlines the responsible investment policy of the fund. This includes some screening or limits to exposure and a preference toward better performing companies based on bottom up analysis and consideration of issues such as corporate governance, labour standards, community and environment.
Further details and information on the AMP Capital RIL range of funds including fund profiles, RIL Charter and performance reports can be found at http://www.ampcapital.com.au/institutional-investors/investing-with-us/multi-manager/responsible-balanced-fund.
FDF and ipac: For the larger FDF and ipac range of funds, external consultant ratings may be considered in the manager selection and appointment processes. In line with AMP Capital's ESG and Responsible Investment Philosophy, we encourage both our external consultants and our external managers to incorporate ESG issues within the services they provide and the investments they manage on our clients' behalf. For FDF and ipac, our initial focus has been on external equities managers.
AMP Capital works with our consultant Willis Towers Watson as well as our own ESG specialists to review external manager approaches to ESG integration. FDF and ipac external managers may generally use ESG criteria as an input to their investment thinking and as a tool to develop a more comprehensive view of an underlying company's key business risks and overall management quality.
AMP Capital engages periodically with external managers to ascertain the extent to which they incorporate ESG considerations in their decision-making and stock selection processes. This is monitored through the manager due diligence and appointment process, one-on-one meetings and engagement with external managers, issuing ESG surveys / questionnaires to underlying managers and AMP Capital's monitoring of their proxy voting activities.
* AMP Capital Funds Management Limited (AMP Capital) ABN 15159557721, AFSL 426455 is the responsible entity of the Responsible Investment Leaders (RIL) range of funds and the Future Directions Funds (FDF) and issuer of the Product Disclosure Statements (PDS) for these Funds and ipac asset management limited, ABN 22 003 257 225, AFSL 234655 is the responsible entity of the ipac funds (ipac) and issuer of the Product Disclosure Statement (PDS) for these Funds. To invest, investors will need to obtain the current PDS from AMP Capital before making a decision to acquire, continue to hold or dispose of units in the relevant Fund.