Future Fund backs away from tobacco
The Future Fund Board of Guardians have announced its decision to de-invest from primary producers of tobacco producers from its investment portfolio.
The decision to remove the connection between tobacco producers and the country’s national piggy bank came after a review of its investments was announced in October last year.
Chairman of the Board, David Gonski, said the Board had made the decision following a careful evaluation of the issues surrounding investment in tobacco producers.
“The Board noted tobacco’s very particular characteristics including its damaging health effects, addictive properties and that there is no safe level of consumption. In doing so the Board also considered its investment policies and approach to environmental, social and governance issues,” Mr Gonski said.
“As a result, the Board determined that in this instance it is appropriate to exclude primary tobacco product manufacturers.”
The Future Fund’s exposure to securities issued by 14 entities involved in tobacco production totalled approximately $222 million at 31 December 2012 (0.3% of the value of the Future Fund).