Super Fund divests from cluster bombs

The New Zealand Superannuation Fund is to divest from seven companies involved in cluster munitions and nuclear explosive devices.

Fund chief executive Adrian Orr said the divestment amounted to $37 million, or 0.3 percent of its portfolio.

Shares would be sold in six companies involved in the manufacture of the cluster munitions, one of which is also involved in the simulated testing of nuclear explosive devices.

The fund will also divest from another company involved in simulated testing.

The move follows the Government joining 93 other countries signing a treaty banning cluster munitions and a review of the nuclear issue.

Mr Orr said the fund had never invested in companies that manufactured nuclear bombs, which are illegal in New Zealand, but had decided to exclude companies involved in simulated testing of such devices because they were critical to their manufacture.

The fund has excluded companies involved in landmines, whaling and tobacco in the past.

Mr Orr said he believed the fund would not be contemplating further areas for exclusion and in the future would work with other funds to encourage ethical behaviour by companies.

The companies to be divested from because of their involvement in cluster munitions are:

* Goodrich Corporation;

* Honeywell International;

* L-3 Communications;

* Lockheed Martin;

* Northrop Grumman;

* Poonsang Corporation; and

* Raytheon.

It would also divest from Honeywell International for its involvement in simulated nuclear testing.

Lockheed Martin was also involved in simulated nuclear testing.

The fund also named the following companies as being involved in cluster munitions but said it had either never invested in them or had already divested:

* Alliant Techsystems;

* General Dynamics;

* Hanwha;

* Singapore Technologies Engineering; and

* Textron Systems.

NZPA