NZ Super Fund ruling likely to increase scrutiny on investment processes

In a decision last week, the court granted an application by the Palestine Solidarity Network for a review of NZ Super Fund’s ethical investment policies.

The network was concerned about investments in companies trading with illegal Israeli settlements, including Airbnb, Booking.com, Expedia and Motorola.

The Guardians of the NZ Super Fund are required to manage and administer it in a manner consistent with avoiding prejudice to New Zealand’s reputation as a “responsible member of the world community”, under the New Zealand Superannuation and Retirement Income Act.

The High Court found that the fund’s policy documents did not meet this obligation and were therefore unreasonable and unlawful.