New fund out; Booster in

David Beattie

Booster Chief Investment Officer and Joint CEO, David Beattie, says the company will  switch all of its current core international shares investments into the new Vanguard fund on behalf of investors in its KiwiSaver, Superannuation and Investment products.

Managed by Vanguard Australia, the Vanguard International Shares Select Exclusions Index Fund tracks the MSCI World ex Australia ex Tobacco ex Controversial Weapons ex Nuclear Weapons Index, providing investors with exposure to more than 1500 listed companies across 20 developed international markets excluding Australia.

The new fund has been specifically designed to address recent concerns about indirect exposure to controversial companies included in the standard Vanguard International Shares Index Fund. However Beattie says it's important to clarify that the new fund should not be labelled as ‘ethical’ or ‘socially responsible’.

Whilst it excludes investments in companies associated with controversial weapons, such as the manufacture of cluster bombs, landmines and nuclear weapons, it will continue to include investments in a range of civilian and military weapons which a true ‘ethical’ or ‘socially responsible’ investment fund would normally filter out.