Australia: Malcolm Turnbull Urged to Dump Investments in Tobacco Companies

Source from:  Sydney Morning Herald 10/23/2015

Prime Minister Malcolm Turnbull, who has been controversially targeted by Labor over his extensive offshore investments, has updated his pecuniary interests to include a European investment fund that holds shares in pharmaceutical companies and cigarette maker British American Tobacco.

In an update to the register of member's interests, Mr Turnbull has restored an investment in the "Vanguard" fund which focuses on stocks across Western Europe.

Vanguard had been incorrectly removed from his declaration in July due to an "administrative error" and this week's update was to clarify that he still has a financial interest in the exchange-traded fund.

Among its top 10 holdings are multinational food giant Nestle, Swiss pharmaceutical company Novartis, GlaxoSmithKline and British American Tobacco, the world's biggest cigarette maker.

Brands of the London-based British American Tobacco include Dunhill, Kent, Lucky Strike and Pall Mall. The company recently announced a half-yearly profit of £2.65 billion ($5.66 billion).

The Australian newspaper reported this week that two of Mr Turnbull's other investment funds hold shares in Japan Tobacco, maker of Camel cigarettes.

Under pressure by the Bill Shorten-led opposition last week over his investments registered in the tax haven Cayman Islands, Mr Turnbull insisted he and wife Lucy invested in offshore funds and did not directly pick individual stocks.

Mr Turnbull's office declined to comment but anti-tobacco campaigner Simon Chapman said it was difficult to know exactly where funds invest their money but said he would expect Mr Turnbull might consider "pulling out" of those particular funds.

"I'd be fairly sure this is an example of an inadvertent investment in a tobacco company," he said.

"Tobacco companies are highly profitable, which is why they are included in so many investment portfolios."

Professor Chapman, who spent time on the board of the NSW Cancer Institute with Lucy Turnbull, said he chose to invest his superannuation under the ethical investment guidelines but could not be sure if any of his money was tied up in big tobacco.

This month Sydney University said it would look at its investment strategy after it was revealed that almost $2 million of its $1.4 billion investment portfolio was tied up in British American Tobacco shares.

Like the Australian National University, Sydney University has divested mining and other stocks in companies that contribute to global warming but as a result invested in tobacco and alcohol companies, including multinational Diageo.

Ethical Investment Australia discourages investments in tobacco companies because their product cannot be consumed at safe levels.

According to FTSE data, British American Tobacco makes up 1.18 per cent of the Vanguard fund, which tracks common European stocks. Enditem