NZ Superannuation Fund to Quit Tobacco Investments

Source from:  sg.news.yahoo.com Business Reuters - Tuesday, October 23 10/23/2007

Tuesday, October 23The NZ Superannuation Fund had NZ$37.6 million ($28.1 million) - WELLINGTON, Oct 23 - The New Zealand's government pension fund said on Tuesday it planned to sell all investments in tobacco stocks. The New Zealand Superannuation Fund said investment in tobacco stocks was not consistent with its responsible investment framework and ran counter to New Zealand's support for global anti-tobacco policies. "This decision was based on product safety issues and New Zealand's commitment to specific international conventions," Chief Executive Adrian Orr said in a statement. The NZ Superannuation Fund had NZ$37.6 million ($28.1 million) invested in tobacco stocks as at June 30, just under 0.3 percent of its total assets. "The decision to divest from tobacco stocks should not be seen as a precedent for future decisions or actions," Orr said, adding that the fund was assessing other industry issues. The fund issued a list of 21 companies, including British American Tobacco Plc , Imperial Tobacco Group and Altria Group , in which investment would not be allowed. (Full details see: http://www.nzsuperfund.co.nz/news.asp?pageID=2145831983) New Zealand has strict anti-smoking laws, which prohibit smoking in offices, shops, restaurants, hotels and public buildings. The NZ Super Fund, set up in 2003 to fund future pension costs for the ageing population, has around NZ$13.1 billion in funds under management. It is aiming to reach NZ$100 billion by 2025. It is required to invest to maximise returns without undue risk, and to avoid prejudice to New Zealand's international reputation. The Fund appoints fund managers to invest on its behalf in a wide range of assets. In the year to June 30, the NZSF had a return of 14.6 percent on funds invested. Three weeks ago NZSF rejected calls by lobby groups to withdraw its investment in French oil company Total S.A. , because of that company's involvement in Myanmar. Enditem