Industry super fund Asset Super has appointed AMP Capital’s Responsible Investment Leaders balanced fund as manager of its socially responsible investment (SRI) option, replacing Maple-Brown Abbott.
The $24 million SRI option, which has about 250 members invested, is currently being transitioned. The change follows advice from Asset’s consultant, Mercer Investment Consulting, which favours a balanced fund approach to SRI, employing a specific socially responsible screen across all standard asset classes.
David Fayle, Asset’s finance and investment manager, said: “AMP recognises that environmental, social and ethical considerations, labour standards and corporate governance factors can impact long-term business success.
“By investing through managers, or in funds, which have a demonstrable system for taking these factors into account, the AMP funds support their overall objective of generating competitive returns within a sustainable and responsible framework.”
Maple Brown Abbott used a screen for investments across Australian equities and property without any specific screen for other asset classes such as international shares and bonds.
The RIL fund, managed through AMP Capital’s investment and ethics committees, aims at achieving moderate-to-high returns with medium levels of volatility over the long term. It plans to also invest in sustainable alternatives, such as clean technology and sustainable forestry.
Asset Super introduced SRI options in May 2006 when the Anglican Provident Fund appointed Asset to take over about $25 million in funds. The option, which excludes investments in armaments, liquor, gambling and tobacco, was extended to all members in October 2006.