The request to global index providers, including S&P Global, MSCI and FTSE Russell, is to remove companies involved in controversial weapons manufacture from the major index funds.
The open letter calls for global indices to exclude companies involved in the manufacture of cluster munitions, anti-personnel mines and chemical, biological and nuclear weapons from the main benchmarks. The initiative highlights a growing expectation that index providers need to reflect investor practices and expectations, making it easier for investors to actively avoid investing in companies that still manufacture controversial weapons.
David Beattie, Principal, said, “Booster has always taken a responsible approach to investing. Kiwi investors are increasingly wanting to know that their investments are not supporting harmful or controversial activities. Becoming a co-signatory to this global initiative is further confirmation of our commitment to responsible investing.”
Since the initiative’s launch, over 115 signatories across the world, controlling USD $6.167tn in assets, have signed the open letter (as at 7 Jan 2019).
Read the full press release here