Two KiwiSaver firms pull pin on cluster bombs
Concerns over controversial and possibly illegal investments in clusterbomb manufacturers have led two major KiwiSaver providers to announce they’re either reviewing or planning to divest their controversial holdings.
A Herald investigation, Dirty Secrets of KiwiSaver, disclosed three KiwiSaver providers had signed up more than 400,000 New Zealanders to funds with stakes in cluster- bomb manufacturers, raising questions over whether these investments were breaking the law.
Westpac, AMP and Aon were found to run more than a dozen funds between them that had invested a combined $ 2.3 million in companies identified as producing the banned weapons.
When questioned over clusterbomb holdings, Westpac on Thursday said it was “not aware of any noncompliance with any legislation as a result of the funds’ holdings”.
But yesterday a bank spokesman elaborated, saying stock selection decisions were “done by the third party managers of the underlying funds”, and acknowledged a change of tack.
“We acknowledge the concern and are reviewing accordingly,” the spokesman said.
Therese Singleton, AMP’s general manager of insurance and investments, said the fund had been “moving to remove exposure from cluster munitions in accordance with its legal obligations” over the past few years but it would now accelerate planned changes.
“By the end of October this year, that indirect exposure will further reduce to 0.006 per cent and [ AMP Capital] has undertaken to fully exit these investments by the end of 2016, therefore exceeding its legal obligation,” she said.
Between them, AMP and Westpac manage $ 7.5 billion in about 725,000 individual KiwiSaver accounts.
Aon, which according to annual KiwiSaver disclosures to the FMA had invested $ 192,136 of client funds into cluster- bomb makers, failed to answer questions for the second day running.
In Wellington, the Government and the police were still formulating their response to the apparent lawbreaking practice with high- level meetings expected early next week.
A spokesperson for Commerce Minister Paul Goldsmith said references in Parliament on Wednesday where the minister said he had been told there was “some indication” the investments broke the law referred to preliminary verbal advice only and a more formal briefing would soon take place. “We’ve asked our officials at MBIE and we will probably get some additional advice from Crown Law,” the spokesperson said.
Questions to Police National Headquarters yesterday on whether they would follow up the minister’s “indi- cation” of possible law- breaking were not answered by publication time.
After an international campaign seeking to ban cluster- bomb use New Zealand signed up to an international treaty and passed legislation in 2009 banning investments in companies manufacturing the weapons.
Parliamentary speeches in December 2009 during the Cluster Munitions Prohibition Bill's third reading — considered a guide to how the law should be interpreted — suggest fund providers and managers would find it difficult to claim ignorance as a defence.
National Party MP John Hayes said at the time: “The wording of the offence is not directed at investors who unknowingly find themselves with an investment in a company involved in cluster munitions production, but there would, however, be a reasonable expectation that fund managers and investors would investigate the full portfolio of a company before investing.” A dairy farmer has admitted breaking the tails of nearly 50 cows. Jeffrey Antony Wright, 36, was managing a North Otago dairy farm when he failed to control his frustrations with his herd. Wright told Christchurch District Court that he was under immense financial stress and working long hours. It’s never too late for love as Western Bay councillor Margaret MurrayBenge and former Reserve Bank governor and National Party leader Don Brash have found. Murray- Benge, 74, and Brash, 75, have been enjoying each other’s company in Tauranga. Murray- Benge said: “We are developing a very close and special relationship . . . He really is lovely. He has a great brain. We are in daily contact.” Herald blood campaign