New Zealand Superannuation Fund

The New Zealand Superannuation Fund was established to save now to pay for the future cost of providing universal superannuation (pension) to New Zealanders. The Fund is managed by Guardians, who are appointed by the Governor General on the recommendation of New Zealand’s Minister of Finance.[1] As of December 2017, the Fund was worth NZ$37.91 billion (€22.3 billion).[2]

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.”[3] 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.”[4] New Zealand Superannuation Fund, however, does not exclude companies that are involved in the production of all specifically designed nuclear weapons delivery systems.[5]

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.[6]

The exclusion list as of December 2017, which is based on information from screening agency MSCI[7], contains 10 companies for involvement with nuclear explosive devices: AECOM; BWX Technologies; General Dynamics; Fluor; Honeywell International; Huntington Ingalls Industries; Jacobs Engineering; Lockheed Martin and Serco.[8]

How to improve the policy:

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.

[1] 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 23 January 2018.

[2] New Zealand Superannuation Fund, “Monthly Performance and Portfolio Report – December 2017”, page 3, available from: https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/December%202017%20Performance%20Report%20.pdf, viewed 23 January 2018.

[3] 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 23 January 2018.

[4] 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 23 January 2018.

[5] 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 23 January 2018.

[6] New Zealand Superannuation Fund, “Background Information on Cluster Munitions and Investments”, 4 April 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 23 January 2018; New Zealand Superannuation Fund, written response to Profundo dated 12 August 2014.

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

[8] New Zealand Superannuation Fund, “NZ Super Fund Exclusion List”, December 2015, NZSF website (https://www.nzsuperfund.co.nz/how-we-invest-responsible-investment/exclusions), viewed 23 January 2018.

Last updated March 2018