AMP Capital divests $440m tobacco-related stocks
AMP Capital has introduced a decision-making framework for its investment portfolio capable of screening out particular companies on ethical grounds.
The company announced the new framework late last week and said it was incorporated into AMP Capital’s existing environmental, social and governance (ESG) and responsible investment philosophy, which is applied across the business.
Under the new framework, AMP Capital said it had considered all sectors in which it invests and had concluded that manufacturers of tobacco, cluster munitions, landmines, biological and chemical weapons do not meet the minimum ethical standards required and will be excluded from its investable universe.
It said that as a result of the decision, approximately $440 million worth of tobacco manufacturing-related equity and fixed income holdings would be divested from AMP Capital’s portfolios representing the largest divestment of tobacco securities to date in Australia.
Approximately $130 million invested in manufacturers of cluster munitions and landmines would also be divested.
Commenting on the move, AMP Capital chief executive, Adam Tindall said the firm had a long-term focus on responsible investing supported by an integrated approach to considering ESG factors across all asset classes.
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
