Clearer investment guidelines wanted

By Phil Boeyen, ShareChat Business News Editor

Thursday 26th April 2001

There's been a call for more specific guidelines on socially responsible investing to be included in the New Zealand Superannuation Bill.

A group representing Australia's Commonwealth Bank has appeared before the select committee asking for more comprehensive wording for a clause which instructs the guardians of the Superannuation Fund on how to invest the money.

The clause currently instructs the guardians to "manage the fund so as not to damage New Zealand's reputation as a good international citizen".

The Commonwealth Group, which represents investment managers in New Zealand and Australia as well as other interests including the ASB Bank and Sovereign, says it views socially responsible investing (SRI) as a permanent feature in the funds management industry.

"Given the potential size of the Superannuation Fund, its approach to SRI is very likely to create a benchmark for the rest of the New Zealand investment market," the group says.

The Commonwealth Group is recommending that the legislation should instruct the guardians to "develop sustainable economic, social and environmental outcomes from investments that would enhance New Zealand's reputation."

The group says the aim of its submission is to make the legislation as robust as possible.

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