Australia: Future Fund''s Tobacco Investments Face Chop

Source from:  Tobacco World  10/26/2012

The taxpayer owned fund future put its $ 219 million investment in the tobacco under review, and will consider the case for ditching controversial holdings. The $ 80 billion fund has accumulated its share of big tobacco at the same time work was introducing its plain packaging laws, which drew criticism from health advocates and some members of the government. But the fund’s managing director, Mark Burgess, today said the fund’s governance committee was considering the investment in cigarette manufacturers after a request from the board.

“This work has been started, and will include a review of the costs and consequences of exclusion, as well as the board’s ability… and the duties and obligations to act in the area,” Mr. Burgess said. "Its early days in this process, but the committee will present its findings to the board and the board will make a determination, and it will be announced publicly at the appropriate time.” The Future Fund, a stash for future pension liabilities of public servants, conducting a series of actions, including tobacco, British American Tobacco, Philip Morris and Lorillard, which owns brands Kent and Gold brands. Until now, it has defended the investment saying that they do not violate any Australian or International laws. Finance Minister Penny Wong also refused to intervene, saying funds solutions should remain independent from the state. In recent months its board, chaired by David Gonski, has faced intense pressure from health groups to reconsider the investments. Some foreign sovereign wealth funds have excluded themselves from tobacco, and the Fund for Future previously sold its shares in favor of the companies that participated in the creation of cluster bombs. Mr. Burgess denied the decision to review the tobacco investments that were influenced by public pressure and the letter from the Attorney General Nicholas Roxon, who as health minister last year wrote a request to the fund no longer, invest in tobacco. "We are not responding to a specific question or the environment. It is simply the board sub-committee and the board believes that it is in the normal course of review,” he said. Mr. Burgess did not say when the review will report its findings in tobacco investments, which were worth $ 219 million at the end of September. Enditem