Fund managers review gun investments
The New Zealand Superannuation Fund and KiwiSaver providers are reviewing their exposure to gun-related investments following the Government’s ban on semiautomatic weapons.
A spokeswoman for the $41.2 billion Super Fund said it was reviewing its exclusion policy to ensure it was consistent with the Government’s gun control legislation.
“We are working as quickly as possible to make this happen and expect that our internal processes will be complete by the time the Government’s legislation is in place.” Prime Minister Jacinda Ardern has said the law change will be in place by April 11.
The spokeswoman said the fund had some small passive shareholdings in three American arms companies — by virtue of their inclusion in global market indices — worth $1.3 million in total.
Those companies are American Outdoor Brands, which owns Smith & Wesson; Sturm Ruger; and Vista Outdoor.
She said other companies which manufacture weapons may also be captured by the legislation and it was reviewing the sector with the help of global index provider MSCI.
The spokeswoman said it would publish the names of any companies it decided to exclude, and the reasons why.
Meanwhile, KiwiSaver providers have also been scrambling to check their exposure to the sector.
In 2016, providers pulled out of controversial companies involved in making cluster bombs and anti-personnel mines, as well as nuclear weapons.
But research by KiwiSaver provider Simplicity has found only five out of 21 providers have specific across the board bans on investing in firearms-related companies.
Those providers are Simplicity, Nikko, Juno, Amaranth and KiwiWealth.
Outside of the five, Booster, Quay Street and SuperLife offer specific ethical or responsible investment funds which screen out all armaments investments.
That does not mean remaining providers are definitely invested in gunrelated companies, but many are likely to have indirect investments through index funds.
A spokeswoman for ANZ said it had holdings in companies which were involved in the manufacture of defence componentry but the investment totalled less than 1 per cent of its funds under management. “We are not invested in any civilian gun makers.”
The spokeswoman said it would review its investments.
Booster chief executive David Beattie said none of its funds currently held any direct investment in companies involved in the manufacture or selling of militarystyle semi-automatic guns and assault rifles.
Sam Stubbs, managing director of Simplicity, urged other providers to get rid of all weapons investments quickly.
He said Simplicity's ban excluded gun manufacturers but not retailers which sell guns. Its funds invest in Walmart, which sells firearms.
He said they had to draw the line somewhere and decided it was the gunmakers that needed to be excluded.
Stubbs said he expected bans by other funds would also focus on manufacturers.