Scott Ludlam (WA, Australian Greens) Share this | Link to this | Hansard source

asked the Minister for Finance and Deregulation, upon notice, on 19 January 2012:

(1) What is the current dollar value of equities owned or held in trust by the Future Fund; or funds under its management; or managed on behalf of the Future Fund by its investment managers, in each of the following companies:

  (a)   Alliant Techsystems Inc;

  (b)   The Babcock & Wilcox Company;

  (c)   Babcock International Group;

  (d)   BAE Systems;

  (e)   Bechtel Corporation;

  (f)   European Aeronautic Defence and Space Company (EADS);

  (g)   Finmeccanica;

  (h)   GenCorp Inc;

  (i)   General Dynamics;

  (j)   Goodrich Corporation;

  (k)   Honeywell International;

  (l)   ITT Corporation;

  (m)   Jacobs Engineering Group Inc;

  (n)   Larsen & Toubro Limited;

  (o)   Lockheed Martin Corporation;

  (p)   Northrop Grumman Corporation;

  (q)   Redhall Group;

  (r)   Rockwell Collins;

  (s)   Rolls-Royce;

  (t)   Safran Group;

  (u)   Serco Group; and

  (v)   Thales Group.

(2) Can a list be provided detailing the nations whose nuclear weapons programs the Future Fund considers to be: (a) legitimate; and (b) illegitimate.

(3) Does the Future Fund consider India's nuclear weapons programs to be legitimate.

(4) On what basis does the Future Fund consider it unacceptable to invest in companies that manufacture cluster munitions and anti-personnel landmines, but acceptable to investment in those that manufacture nuclear weapons.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The answer to the honourable senator's question is as follows:

(1) The Future Fund Management Agency has advised that the value of the Future Fund's holdings in the companies in question as at 19 January 2012 was:

(2) No, the Future Fund Board of Guardians does not make its investment decisions based on such a consideration. The Board's investment decisions are based on the requirements of the Future Fund Act 2006 and the Nation-building Funds Act 2008, the risk and return requirements of the mandate and the application of the Fund's investment strategy, policies and processes. The Board considers Australia's obligations under the international conventions and treaties it has ratified. These are explained in the Board's Statement of Investment Policies, which includes a policy on managing environmental, social and governance (ESG) issues.

(3) See response to Question 2.

(4) In applying the framework to its investment decisions, the Board first considers the activities of an entity or funding activity and then considers whether an investment is consistent with its policies. Where the Board becomes aware that the activities of an entity or funding activity may contravene an international treaty ratified by Australia, the Board will consider the exclusion or removal of the investment from the portfolio.