Backing sustainability through our Diversified Funds

We have made some small changes to the Australian shares allocations within the Diversified Funds. The major result of the changes is an increased weighting toward the Sustainable Alpha investment style. This reflects its recent strong performance and broad acceptance as a ‘mainstream’ investment style.

Our Sustainable Alpha investment style has close to a six year track record and has outperformed both the S&P/ASX 200 index and the median manager across growth and value cycles since launching in 2001.

With its consistent performance and broad acceptance as a mainstream investment style, the natural step was to implement a greater allocation to it, within the Australian shares sector of AMP Capital’s Diversified Funds range.

What makes the style different from others? It has the ability to look beyond traditional indicators of corporate performance. Our Sustainable Alpha approach aims to systematically integrate social and environmental assessment with financial measures to give deeper insights into a company’s growth and risk elements.

This proprietary and specialised method has proved highly effective in identifying key factors for corporate growth and success.

The changes we are implementing, including a few other smaller ones, will result in the following target weightings for our diversified funds’ Australian shares sector.

Investment style	New weighting	Previous weighting
Active Quant	19%	22%
Capital	19%	22%
Enhanced Index	25%	25%
Other	3%	0%
Sustainable Alpha	15%	9%
Value Plus	19%	22%

 

You can invest in our Sustainable Alpha approach through the Diversified Funds or the AMP Capital Sustainable Share Fund.

 

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Find more information on the Diversified Funds.

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