Not for release or distribution in the US.

AMP Capital has formally excluded companies that have a material exposure to the most intensive fossil fuels from the investible universe of its Responsible Investment Leaders (RIL) range of funds.

In response to client demand, the RIL Charter of Operation, which guides the investment decisions of the RIL funds, has been amended to ensure the funds do not invest in companies that have a more than 20 per cent exposure to:

  • Mining thermal coal
  • Exploration and development of oil sands
  • Brown-coal (or lignite) coal-fired power generation
  • Transportation of oil from oil sands
  • Conversion of coal to liquid fuels/feedstock

The impacted funds include the RIL diversified funds, the RIL Australian Share Fund, the RIL Diversified Fixed Income Fund and the RIL International Share Fund.

AMP Capital Head of Environmental, Social and Governance Research Ian Woods said: "The Charter of Operation requires the RIL funds to avoid investing in companies with a material exposure to activities that have a high negative social impact including the production and manufacture of tobacco, nuclear power (including uranium), armaments, alcohol, pornography and gambling. Increasingly, responsible investors also want their portfolios to mirror their views on the need to address climate change.

"Under the terms of the charter, most companies with material fossil fuel exposure are already excluded. However, we feel having a formal limit on fossil fuels more clearly reflects investors' growing interest and concern regarding these investments."

The formal limit will exclude 56 companies from the Responsible Investment Leaders' investible universe.

Dr Woods added: "Our clients expect us to invest their funds in a manner that suits their social conscience while at the same time meeting investment objectives. This move enhances our ability to do that."

AMP Capital is a signatory to the United Nations' Principles for Responsible Investment and a member of the Investor Group on Climate Change (Australia/New Zealand). AMP Capital is currently Australia's largest manager of responsible and sustainable investment funds with approximately $3 billion in funds under management.

To view the RIL Charter of Operation, visit: http://www.ampcapital.com.au/AMPCapitalAU/media/contents/Documents/RIL/RILCharter.pdf

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