New Zealand Superannuation Fund

The New Zealand Superannuation Fund accumulates and invests state contributions to help future governments pay for the increasing costs of superannuation entitlements in New Zealand. The Fund is managed by Guardians, who are appointed by the Governor General on the recommendation of New Zealand’s Minister of Finance.[i]

Since 2008, the New Zealand Superannuation Fund excludes all companies involved in the manufacture and testing of nuclear explosive devices. The Fund draws its definition of nuclear weapons from the New Zealand Nuclear Free Zone, Disarmament and Arms Control Act of 1987, and accordingly defines a nuclear explosive device as “any nuclear weapon or other explosive device capable of releasing nuclear energy, irrespective of the purpose for which it could be used, whether assembled, partly assembled, or unassembled, but does not include the means of transport or delivery of such a weapon or device if separable from and not an indivisible part of it.”[ii] On 10 June 2013, the New Zealand Superannuation Fund announced an extension of its exclusion policy to companies that are “involved in the operation or management of military bases where nuclear explosive devices are deployed, maintained, refitted, stored or developed.”[iii] New Zealand Superannuation Fund, however, does not exclude companies that are involved in the production of all specifically designed nuclear weapons delivery systems.[iv]

The exclusion policy applies to the portfolios that are managed exclusively for the New Zealand Superannuation Fund. The vast majority of its other funds are covered by the policy as well. However, the policy does not extend to two pooled hedge fund mandates that hold bonds or equities.[v]

The exclusion list, which is based on information from screening agency MSCI[vi], currently contains 18 companies for involvement with nuclear explosive devices, cluster munitions and anti-personnel mines: AECOM; Ashot Ashkelon; Babcock & Wilcox; Fluor; General Dynamics; Hanwha; Honeywell International; Huntington Ingalls; Intermec; Jacobs Engineering; Kratos; Lockheed Martin; Northrop Grumman; Orbital ATK; Poonsang; Serco; Singapore Technologies and Textron.[vii]

We commend the New Zealand Superannuation Fund for adopting a public policy on nuclear weapons. We recommend the New Zealand Superannuation Fund exclude all nuclear weapons producing companies involved in all delivery systems specifically designed for nuclear weapons. Furthermore,the Fund should extend the scope of the policy to all financial products, including assets in pooled hedge fund mandates. We look forward to engaging with New Zealand Superannuation Fund, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.

 

The New Zealand Superannuation Fund's policy on nuclear weapons is leaky. Tell them to fix it!

Congratulations New Zealand Superannuation Fund!

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Congratulations New Zealand Superannuation Fund. I saw on www.dontbankonthebomb.com that you have a policy limiting investments in nuclear weapons. I think it’s really important that you share my concern about these weapons, and I appreciate that there is a public policy.

However, the policy does have some loopholes and the Don’t Bank on the Bomb report shows how you still might invest in nuclear weapons producers. I am concerned about this, because the New Zealand Superannuation Fund also invests my money and I don’t want to be associated in any way with the production of these inhumane weapons.

It would be great if the New Zealand Superannuation Fund made the following changes to make the policy airtight:
• Exclude all nuclear weapons producing companies involved in all delivery systems specifically designed for nuclear weapons;
• Extend the scope of the policy to all financial products, including assets in pooled hedge fund mandates.

With kind regards,

Or :

Tweet: Even @NZSuperFund knows investing in #nuclear weapons should be restricted. Strengthen the policy & say #goodbyenukes! http://ctt.ec/1UfVO+

 

Website: Twitter:
https://www.nzsuperfund.co.nz/ @NZSuperFund

 

[i]           New Zealand Superannuation Fund, “Purpose and Mandate”, website New Zealand Superannuation Fund (https://www.nzsuperfund.co.nz/nz-super-fund-explained/purpose-and-mandate), viewed 3 June 2015.

[ii]           New Zealand Superannuation Fund, “Investments in companies associated with nuclear weapons”, p.2, December 2008, available at https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/Public%20Report%20Nuclear%20Weapons%2012%20Dec%20Final%20V3.pdf, viewed 3 June 2015.

[iii]          New Zealand Superannuation Fund, written response to Profundo dated 27 May 2014; New Zealand Superannuation Fund, “New Zealand Superannuation Fund excludes nuclear base operators”, June 2013, website New Zealand Superannuation Fund (https://www.nzsuperfund.co.nz/news-media/new-zealand-superannuation-fund-excludes-nuclear-base-operators), viewed 3 June 2015.

[iv]          New Zealand Superannuation Fund, “Investments in companies associated with nuclear weapons”, p.2, December 2008, available at http://www.nzsuperfund.co.nz/files/Public%20Report%20Nuclear%20Weapons%2012%20Dec%20Final%20V3.pdf, viewed 3 June 2015.

[v]           New Zealand Superannuation Fund, “Background Paper on Cluster Munitions and Investments”, 4 December 2008, p.1, available at https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/Guardians%20Background%20Paper%20on%20Cluster%20Munitions%204%20April%202008.pdf, viewed 3 June 2015; New Zealand Superannuation Fund, written response to Profundo dated 12 August 2014.

[vi]          New Zealand Superannuation Fund, written response to Profundo dated 27 May 2014.

[vii]          New Zealand Superannuation Fund, “Companies excluded from the New Zealand Superannuation Fund as at 31 March 2015”, p.1, 31 May 2015, available at https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/March%202015%20Exclusion%20List.pdf, viewed 3 June 2015.

Who divests?

Policy Research

The financial institutions presented all have publicly available policies – or summaries thereof – excluding investments in nuclear weapons producing companies. Since the banking group usually sets the investment policy and since the group directly or indirectly supervises its subsidiaries, we research the group policy only.

The Hall of Fame section highlights financial institutions that have comprehensive policies preventing investments in nuclear weapon producers. These policies meet all of the criteria.
The Runners-Up provides information on existing policies and makes recommendations for how to strengthen them.

Criteria:

Hall of Fame finanical institution policies policy must:

1. Exclude all nuclear weapon associated companies

The policy excludes:

  • whole companies not only nuclear weapons related projects
  • companies associated with nuclear weapons including through joint ventures
  • companies regardless of their country of origin
  • companies regardless their country of operation

2. Exclude all nuclear weapon associated activities

The policy excludes companies associated with:

  • development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services, and;
  • delivery systems such as missiles, that are specifically developed for nuclear tasks. This includes technology that is designed for ‘dual use’ (military and civilian) but excludes technology that is not designed for, but can be used in nuclear warfare. It does not include delivery platforms such as bombers and submarines.

3. Apply to all the institution’s products and services

The institution applies the policy:

  • for the entire Group, including subsidiaries
  • in all markets
  • to all asset management classes – passive and active, internal and external.
  • to all existing and future investments.

The financial institutions in the Hall of Fame have not engaged in any financial relationships with any of the nuclear weapon associated companies listed in this report. The policies of over 80 financial institutions were analysed for this report.

Runners-Up are financial institutions whose nuclear weapons policy does not meet all of the above criteria .

Methodology

To identify financial institutions with a policy on nuclear weapons, we research a variety of sources: NGO reports, screening-agency information, financial institution reports and websites, information from campaigners and other public sources. For practical reasons, the scope of this report is limited to those financial institutions that have an investment policy or a summary of that policy in English. The list of institutions in the Hall of Fame is not exhaustive. We welcome additions from those able to provide them.

For the purposes of this report, nuclear weapon producers are defined as companies that produce key components to test, develop, maintain, modernise and deploy nuclear weapons. There are countless companies involved in the broad nuclear weapons complex, and this report only details those most heavily involved in the production and maintenance of nuclear warheads and their delivery systems (such as missiles and launch tubes). The report does not include companies involved in the production of delivery platforms (such as nuclear capable bombers and submarines).

In advance of this report, all financial institutions were asked to fill in a standardised questionnaire with detailed questions on the scope and content of their policies. Financial institutions that did not respond are not included. Of the thirteen financial institutions listed in the Hall of Fame, six publish a list of companies that they exclude from their investment universe. The companies excluded are listed in the profiles of the financial institutions as a resource. Three other financial institutions in the Hall of Fame work with an inclusion list rather than an exclusion list. The remaining four do not make their lists public.

Each financial institution profile in the Hall of Fame includes a brief description of the institution, a summary of key policy elements, and the exclusion list if applicable. We researched investments in companies on our producers list for each of the financial institutions listed in the Hall of Fame. None of the financial institutions listed in the Hall of Fame invest in any of the 26 identified nuclear weapon producers.