AMP Wealth Management New Zealand has made significant strides in expanding its Global Climate Fund, with a recent international partnership involving BlackRock, the US-based investment giant.
The Kiwi wealth manager announced an initial capital injection of $28 million into BlackRock’s Global Renewable Power Fund IV. This fund is currently focused on solar energy investments, specifically through Canada-based Recurrent Energy and German industrial solar start-up Enviria.
According to AMP General Manager Aaron Klee, the company is on track to invest $75 million in global private markets by year’s end, with ambitions to double that figure to $150 million, primarily targeting renewable energy infrastructure projects within New Zealand.
“Most retail investors are unable to participate in private equity opportunities of this scale due to the high entry barriers, including significant minimum investment sizes and long commitment periods,” Klee said.
However, he noted that investors in AMP’s KiwiSaver, NZ Retirement Trust, and Managed Fund portfolios will benefit from these initiatives. The Global Climate Fund will form a small, yet strategic part of their diversified asset allocations, encompassing all risk profiles.
Looking forward, AMP aims to grow the Global Climate Fund to between $400 million and $500 million over the coming years, potentially positioning it as the largest climate-focused impact fund in New Zealand.
While the initial investments have focused internationally, Klee signalled that New Zealand-based projects are on the horizon, in line with the fund’s broader strategy of combating climate change.
“These investments are perfectly aligned with the fund’s objective of driving meaningful climate action,” Klee said. “Not only do they represent high-quality investment opportunities, but they also contribute to the vital transition toward a low-carbon economy.”