Sustainable Share Fund questions and answers

1.

How do I invest in the AMP Capital Sustainable Share Fund?

It’s easy to invest in the AMP Capital Sustainable Share Fund. All you need to do is complete the application form found in the relevant Product Disclosure Statements (PDS). Then send your application to us with your initial investment amount. Please note the minimum investment for the fund is $30,000.

The PDS also contains helpful information to guide you through the application process. You can request the PDS in two ways. It can be mailed to you directly, or you can download a PDS online.

Once you have completed and signed the application form, return it to us together with either your cheque or direct debit information and we will take care of the rest.

2.

What does the AMP Capital Sustainable Share Fund invest in?

The Fund uses an innovative approach to invest primarily in companies listed on the Australian Securities Exchange (ASX) that we believe are more likely to succeed now and into the future. We select companies that are pro-active in taking environmental, social and governance responsibilities into account and also have strong financial performance. We have found that these companies are generally more successful and subsequently have the potential to add greater investment value.

3.

How are investments selected for the Fund?

We use our Sustainable Alpha investment process to select investments for the Fund. The process systematically integrates environmental, social and governance analysis with financial analysis to look beyond traditional indicators of corporate success. This helps us add value for investors by selecting undervalued companies that will provide superior performance now and into the future.

A key element of our process is to look for the hidden value of a company. Our research of the top 100 companies listed on the ASX reveals that more than 75 per cent of the value of the typical Australian company is made up of intangible factors, often not included in company balance sheets.

These include factors such as corporate reputation, the way a company manages and retains its employees, the quality of its value chain, its occupational health and safety practices, and its commitment to environmental and socially responsible practices.

4.

What type of companies does the Fund invest in?

Many of the companies we invest in operate in what we call "industries of the future". Companies in these industries are often forecast to experience above average growth rates as increasing government regulation and changing social needs create an accelerated demand for their products.

Some of our recent investments in industries of the future include companies involved in cancer detection equipment, blood products, online advertising and renewable energy. All of these companies were selected for both their high standard of environmental, social and governance practices as well as their strong financial performance.

Babcock & Brown Wind Partners, for example, is a specialised investment portfolio focusing on the wind energy generation sector. The portfolio comprises an interest in 25 wind farms diversified by geography, currency, equipment, supplier, customer and regulatory regime.

As well as considering industries of the future, we consider companies in traditional sectors such as banking, insurance and property, where those companies are leaders in social and environmental performance. These companies are assessed on corporate social responsibility factors that include environmental management, community relations, workplace practices, corporate governance and human rights.

Do you invest in companies involved in mining and oil production?

Some sectors may demonstrate considerable environmental, social or governance risks. For us to consider investing in companies operating in these sectors, they are required to show proof that they are capable of managing these risks. In industries such as oil and mining, we expect companies to take a proactive and leading approach to corporate social responsibility. If they can demonstrate this is the case, in addition to meeting all the Fund’s other financial and sustainability criteria, we will consider them for investment. An example of such a company is BHP Billiton. In addition, through our constructive engagement process we meet with managing directors and key staff of the companies in which we invest to encourage them to improve their social, environmental and governance performance. For investors, this means that important environmental and social issues will continue to be considered by the companies in which the Fund invests.

For industries which we judge to be the least sustainable on their social and environmental performance outcomes we have particularly stringent requirements. This results in exclusions of companies with material exposure to the production or manufacture of alcohol, armaments, gambling, nuclear (including uranium), pornography and tobacco. Material exposure is considered to be exposure at a maximum of 10% on financial criteria such as revenue.

How can I find out more about the AMP Capital Sustainable Share Fund?

To find out more about the AMP Capital Sustainable Share Fund please refer to the Product Disclosure Statement, contact your financial adviser, or call Private Client Services on 1800 188 110, between 8.30 am and 5.30 pm (Sydney time), Monday to Friday.

Why choose AMP Capital Investors?

AMP Capital Investors has one of the largest portfolios of investments with a sustainable focus in Australia – more than $2.18 billion as at 31 March 2008. We were also one of the first fund managers to systematically integrate environmental, social and governance factors with financial measures.

Our dedicated team of portfolio managers and social/environmental research specialists produce regular research papers that outline our views on best practice standards and investment policies. These are available to the public through our website and are also presented at industry and government forums.

AMP Capital was a founding institution of the Investors' Group on Climate Change (IGCC). IGCC assists the investment industry to include the impacts of climate change in investment analysis.

In line with our commitment to incorporating environmental, social and governance (ESG) issues into our investment decisions, we are also a signatory to the United National Principles for Responsible Investing. These principles aim to provide an internationally agreed framework to help institutional investors incorporate ESG issues into investment decision making and ownership practices.