Mercy Super has pulled its investment with AMP Capital’s Ethical Leaders Balanced Fund, citing concerns over liquidity following a number of other funds – including LGIAsuper and Legalsuper – redeeming their own investments.
“In recent times, there has been negative press surrounding AMP Capital stemming from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry as well as inappropriate culture within their senior management team,” Mercy Super said in a note to members.
“This contributed to several large superannuation funds withdrawing their investment from the fund requiring AMP Capital to place certain restrictions on future redemptions.”
Mercy Super also voiced concern over the departure of “key staff responsible for the socially responsible characteristics of the fund”. Portfolio manager Kristen Le Mesurier, who oversaw AMP Capital’s diversified multi-asset funds, including the Ethical Leaders fund, left the business in August 2020 before taking up the role of head of ESG at Platypus Asset Management.
“Given this, the trustee had concerns over the ability of the AMP Capital Ethical Leaders Balanced Fund to continue to deliver on its initial goals. There are also concerns over the potential liquidity of the fund in the short-term which could put at risk our members’ ability to withdraw their allocation within this investment,” Mercy Super said.
Mercy took the action on 15 February, and is currently investigating other investment opportunities for its Socially Responsible option.
