AMP has made an initial capital deployment of $25.58 million (USD 17.4 million) into BlackRock’s Global Renewable Power Fund IV.
The strategy has made investments into two global climate infrastructure businesses: Canadian based solar energy operation, Recurrent Energy, and German commercial and industrial solar startup, Enviria.
More investments will be added over time to reach AMP’s capital commitment of $66.1 million in the Global Climate Fund.
AMP’s Aaron Klee, General Manager Investment Management and Services, said the company believes AMP is the only KiwiSaver provider in New Zealand investing private equity of this scale into renewable power, for its members through a Global Climate Fund.
These initial investments are “right on point” with the new fund’s focus of making a tangible difference through climate change.
“We know that to meet global climate targets, significant investment in climate infrastructure is required. New Zealanders are increasingly looking for their investments to be part of the solution.
These initiatives not only offer high-quality investment opportunities but also contribute to the critical transition to a low-carbon economy.”
Klee says international investments were always going to be a necessary first cab off the rank by the AMP Global Climate Fund, but an announcement on New Zealand-based investments is not far off.
“In this initial investment phase, AMP has committed to invest about $68 million in global private markets and is looking to double that amount in New Zealand-based renewable energy infrastructure, which we hope to be able to announce by year end.”
AMP expects its Global Climate Fund to grow to $365-457 million over the next few years to potentially become the largest climate impact fund of its kind in New Zealand, providing a unique opportunity for AMP KiwiSaver members.
“Most retail customers aren’t able to participate in private equity investments of this nature due to the high barriers to entry, minimum investment sizes and commitment periods,” says Klee.
“However, due to the size and scale of our diversified funds, customers in AMP KiwiSaver, NZ Retirement Trust and Managed Fund diversified funds will automatically be investors in these Global Climate Fund ventures, as the fund will make up a small proportion of the asset allocation across all risk profiles.”
Klee says with this fund, AMP wants to invest into infrastructure investments directly, rather than just by investing in shares in companies via share markets in New Zealand and around the world.
“Our fund has a key point of difference from most other sustainable or responsible investment funds in the market in that it makes specific investment into initiatives that deliver long-term structural change to help with mitigating the impact of climate change,” Klee said.
“Unfortunately, there’s a widespread lack of understanding about which providers are truly committed to climate action or sustainability, and what actions they are taking. While many sign up to various climate initiatives, far fewer take direct positive action.”
AMP’s dedication to sustainable investing is reflected in its recent achievement of the highest level of classification (Sustainable Plus) for all 23 of its RIAA certified funds.
“These certifications affirm our strong commitment to sustainability and transparency. By achieving this high standard, we aim to build trust in the marketplace and provide our customers with confidence that we do what we say we are going to do,” Klee added.
AMP Wealth Management NZ first partnered with BlackRock in 2021 when they made the pivotal decision to appoint BlackRock Investment Management Australia to provide key investment services.
This appointment aimed to leverage BlackRock’s unparalleled expertise and global insights to change the way we have invested AMP-branded funds.
The partnership has been instrumental in driving positive outcomes for AMP’s customers and the broader community.
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