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AMP Wealth Management NZ says it is well on its way to driving growth in its Global Climate Fund, with an international investment in partnership with US-based investment company BlackRock.
AMP has made an initial capital investment of $28 million into BlackRock’s Global Renewable Power Fund IV, which was focused on Canadian-based solar energy operation Recurrent Energy and German commercial and industrial solar start-up Enviria.
AMP general manager Aaron Klee said it was committed to investing about $75m in global private markets and was looking to double that amount and invest $150m in New Zealand-based renewable energy infrastructure by the end of the year.
“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,” Klee said.
“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.”
Ultimately, Klee said, AMP was looking to increase the Global Climate Fund to between $400-500m over the next few years, potentially becoming the largest climate impact fund of its kind in New Zealand,
He said 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 was not far off.
“These initial investments are right on point with the new fund’s focus of making a tangible difference through climate change,” he said.
“These initiatives not only offer high-quality investment opportunities but also contribute to the critical transition to a low-carbon economy.”