Grosvenor dumps Vanguard over cluster bombs
The Grosvenor Default Saver Fund is switching its investments in the Vanguard International Share Index Funds into the UBS MSCI World SRI Index ETF that Grosvenor already uses in its Socially Responsible Investment funds.
This will remove from the Default Saver Fund the small, indirect and unintended exposure to cluster bomb manufacturers that exist in the Vanguard Index Fund. Grosvernor chief investment officer David Beattie says the firm has around $200 million invested in Vanguard fund, but overall New Zealand managers have around $2 billion in the fund across KiwiSaver and non-KiwiSaver funds.
Beattie says the firm will just "suck it up" on costs. Currently it charges a management fee of 0.38% on the fund and it will now pay 0.38% to use the MSCI fund.
"We will be a philothropic charity on that front."
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