ETHAN ROGACION (HE/HIM)
Did you know that the University has a lot of money? Well, I mean clearly not enough for it to function properly, but a lot of money nonetheless. Te Herenga Waka, like all other businesses, endeavours to invest its money in a way that generates the highest returns. However, there have been calls for greater scrutiny and transparency about how the University invests.
With over 400 signatures behind them, Student Justice for Palestine (SJP) Pōneke has recently launched an open letter to the University Foundation—which manages the University’s investment portfolio—demanding that it does three things.
Namely, they call on the Foundation to divest from any funds with ties to the Israeli government. In addition, they demand that it implements a boycott, divest, sanctions (BDS) policy against Israel. Further, SJP also encourages the granting of scholarships and fellowships to Palestinian students and academics.
What does the Foundation Do?
As an SJP organiser told Salient, the Foundation has been less than transparent about the places that it invests. “It’s been a real uphill battle,” they say. “I mean, I think it’s how finance works: it’s not set up for accountability or disclosure.”
The Foundation’s Statement of Investment Policy and Objectives (SIPO) document, which is publicly available on its website, gives some hints as to where the University’s money is going. Across 31, highly dense and deeply commerce-pilled pages, the Foundation—vaguely—describes what it is that it does.
Put simply, they are responsible for ensuring the donations given by the University’s benefactors (i.e., not our tuition fees) are either used for the purpose they were donated for, or alternatively “provide a sustainable and stable annual distribution”. At the same time, they endeavour to invest their money in a responsible way. Whatever that means.
The Foundation is also “one of only two universities in Australasia who have signed up to UNPRI (United Nations Principles for Responsible Investment).” These principles require signatories, in the interests of their beneficiaries, to incorporate environmental, social, and corporate governance issues into their decision making. In their last appraisal from UNPRI, the Foundation received three stars in the “Policy Governance and Strategy” module, and a perfect five stars in the “Confidence building measures” field.
“With respect to climate, the Foundation notes that ANZ has a Responsible Investment Framework that guides their approach to investing. Climate risks and opportunities are considered throughout the investment decision making process with the aim to encourage the companies they invest in to align with the transition to net zero greenhouse gas emissions by 2050.”
Show Me the Money:
Where is the Foundation Investing?
According to the Foundation’s 2023 financial statement, the Foundation does not directly dictate what funds and other shares their portfolio is invested into. Instead, “these investments are managed by both [ANZ] and Nikko Asset Management Ltd.” That means that, much like everyone else with a Kiwisaver or a term deposit with their bank, the University has very little control over what their money gets invested in.
However, unlike most people, the University has shitloads of money to invest. A spokesperson for the Foundation told Salient that, as of 30 June 2024, it had $109 million invested across its portfolio. That’s enough to buy a controlling share in the New Zealand Herald, or 21 million flat whites. Take your pick.
That spokesperson also revealed to Salient that “one of the investment funds in which the Foundation invests currently holds four bonds issued by the Israeli Government, amounting to approximately 0.58% of the ANZ fund in question.” This amounts to a total investment in Israel of $47,532.
“The Foundation … recognises the need to continuously review and improve its approach to ensure it can continue to achieve its objectives, in what is frequently a rapidly changing landscape.”
Seven to 15 percent of the Foundation’s investments is also held in Nikko’s SRI Equity Fund, which only has holdings in New Zealand and Australian securities.
The Foundation’s Next Steps
While the Foundation currently has holdings in the Israeli government, this will not be the case for much longer, due to ANZ exiting the wholesale funds management market. According to a Foundation spokesperson, “This means the Foundation is currently seeking alternative fund managers and will need to exit the ANZ funds by the end of August 2024.”
“The process to identify new fund managers to replace ANZ has put an emphasis on high environmental, social and governance standards and fund managers that are transparent through their reporting and engagement with investors like the Foundation.”
Marcail Parkinson, VUWSA President and student representative on the Foundation Board told Salient that, “Essentially, they’re trying to find a new fund manager, and as the Student Representative, I thought that it was a really great time to find [one] that is more ethical and sticks more to our CIPO.”
Parkinson said that she is advocating for the Foundation to select a fund manager that “we can have more transparency and disclosure around, but it’s not something that happens often in the financial sector overall, it seems.”
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