12 Aug 2011

Super Fund audits investments after glitch

9:42 am on 12 August 2011

The Superannuation Fund is defending its screening processes despite breaking its own rules by accidently putting money into the tobacco industry.

Under its own rules, the Super Fund does not invest in tobacco, cluster munitions or the manufacture or testing of nuclear warheads and explosive devices.

The Green Party tries to monitor its investments, and on Thursday highlighted the fund's shareholding in Shanghai Industrial Holdings, a subsidary of which is in the tobacco industry.

The Super Fund is now selling its 80,000 shares in the compnay.

A spokesperson for the Guardians of the Fund, Paul Gregory, says in general the fund has good checks and balances in place, but is aware of the potential for such errors.

The fund is close to completing an audit of its investments and is updating the list of companies it will not invest in.