26 Aug 2011

Super Fund caught breaching investment rules again

7:57 pm on 26 August 2011

The New Zealand Superannuation Fund has been caught breaching its own investment rules again, this time in cluster bomb manufacturers.

The Green Party says that the fund currently invests $2.5 million in five companies that have involvement in the production of cluster bombs, which is in breach of the fund's rules and New Zealand's obligations under the Cluster Munitions Convention.

Two weeks ago, the Green Party said that the fund had been investing in tobacco.

Co-leader Russel Norman says profiting from the production of cluster munitions is immoral and an embarrassment to the reputation of the fund.

He says it needs to screen companies more effectively.

The Guardians of the Super Fund say they continue to review their investments and are comfortable they are acting in accordance with the fund's responsible investment policies.

Its head of communications Paul Gregory says the Fund excludes any investments that are found to breach its responsible investment criteria.

And he says the Fund is still investigating whether the five companies are actually linked to cluster bombs.