KEY POINTS:
The New Zealand Super Fund has decided to quit investment in tobacco companies, citing its commitment to global anti-tobacco policies.
The Guardians of New Zealand Superannuation said today investments in tobacco companies represented 0.3 per cent, $37.6 million, of total assets.
Guardians chief executive Adrian Orr said the decision should not be read as a precedent.
The decision comes three weeks after the fund resisted pressure to divest in French oil company Total SA due to that company's controversial investment in Myanmar (Burma).
"In assessing the issue of tobacco manufacture, the board concluded that the fund's investment in this sector was inconsistent with our responsible investment standards," Mr Orr said.
"This decision was based on product safety issues and New Zealand's commitment to specific international conventions."
The fund was started in 2003 to help fund pension costs for the ageing population.
It currently has around $13.1 billion under management. Fund guidelines recommend investment in companies that do not contravene environmental, social and governance standards set against international conventions.
- NZPA
