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
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
