Disarm your degree - International Campaign to Abolish Nuclear ...

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Disarm your degree - International Campaign to Abolish Nuclear ...

2IntroductionSUMMARYAuthor/researcherNicola BoyleDate of publicationJanuary 2013AcknowledgmentsTim WrightTomohiro MatsuokaAnanta Malhotran In 2012 the International Campaign to Abolish Nuclear Weapons (ICAN)contacted all public universities in Australia in an effort to find out whetherthey invest any of their funds in companies that produce nuclear weapons.In most cases, we lodged freedom-of-information requests.n ICAN was able to confirm that four universities do invest in nuclearweapons producers and 12 do not. For the remaining 17 universities,insufficient information was available. We found that most universities donot have ethical investment policies for externally managed funds.n Many of the companies that are heavily involved in the US, Britishand French nuclear weapons programmes are listed on foreign stockexchanges. Australian public universities – some of which haveendowments exceeding $1 billion – routinely invest in international markets.n Any investments in nuclear weapons companies by Australian publicuniversities undermine efforts for a nuclear-weapon-free world. Theyalso undermine the legitimacy of Australian government commitments toachieve nuclear disarmament worldwide.n Any use of nuclear weapons would have catastrophic humanitarian andenvironmental consequences, and violate multiple fundamental principlesof international humanitarian law. Supporting the nuclear weapons industryis both unethical and irresponsible.n Divesting funds from nuclear weapons producers is a way for Australianpublic and private institutions, including universities, to contributemeaningfully towards the achievement of a nuclear-weapon-free world. Itwould reinforce the illegality and illegitimacy of nuclear weapons.n Students can write to their vice-chancellors and financial officers toencourage their universities to divest from nuclear weapons producers.Publishing articles in student newspapers and raising the issue at meetingsof student clubs is an effective way to promote divestment.


DISARM YOUR DEGREE3Nuclear weapons divestmentIn February 2012, the International Campaign to Abolish Nuclear Weapons(ICAN) commenced a global divestment campaign to build pressure on nuclearweapons producers to end their involvement in nuclear weapons work. ICANpublished a report calling on hundreds of financial institutions around theglobe to divest funds from nuclear weapons producers.Don’t Bank on the Bomb: A Global Report on the Financing of Nuclear WeaponsProducers detailed the investment of banks, insurance companies, pension fundsand asset managers in companies that manufacture, modernise and maintainnuclear weapons and their delivery vehicles. It urged financial institutions toapply ethical standards when investing and encouraged clients and concernedcitizens to take action to apply pressure to these institutions to divest.Australian public university investmentsThis report is a continuation of the global divestment campaign against thenuclear weapons industry. It provides information on investments of 33Australian public universities from December 2011 to July 2012. It focuseson investments in 23 nuclear weapons companies based in the United States,Britain, France, India, the Netherlands and Italy that are heavily involved inmodernising and maintaining nuclear warheads, as well as developing themissiles, submarines and bombers used to deliver them.It identifies four universities as having investments in nuclear weaponscompanies and 12 universities as not having any such investments. For theremaining 17 universities, insufficient information was available to determinewhether they have investments in such companies.With the information and arguments provided in this report and Don’t Bankon the Bomb, students, academics, administrative staff, alumni and the widercommunity can put pressure on their universities to divest from nuclearweapons producers and develop ethical investment policies to exclude nuclearweapons from their direct and indirect investments through fund managers.University investment fundsAustralian public universities receive their funding from various sources,including students, federal and state governments and private donors.Depending on the size of the university, their endowments can be billions ofdollars. These funds are spent on various university expenses, placed in cashdeposits with banks and financial institutions or invested in equities eitherdirectly or through fund managers. These equities can include shares and bondsin both domestic and international markets.Many Australian public universities invest their funds through external fundmanagers, including fund managers who exclusively manage funds of publicsector institutions. Fund managers often invest university funds withoutdirection from the university. However, universities are able to have a say in themanagement of their investments.


4 INTRODUCTIONMost companies involved in nuclear weapons production are listed oninternational stock exchanges. None are listed on the Australian stock exchange.Universities can therefore only have investments in nuclear weapons companieswhen they invest directly in the company or when they invest in internationalmarkets through fund managers. As university endowments can often be quitelarge, particularly for large universities, it is possible that investments in nuclearweapons companies can be significant.Some universities have developed ethical investment policies to ensureuniversity investments avoid companies that are involved in socially andenvironmentally damaging practices. Excluded investments include thosethat act at the expense of human rights and public safety such as alcohol,tobacco, gambling and weapons companies. However, where ethical investmentpolicies exist, the universities generally only apply the standards to their directinvestments and not their investments through external fund managers.Why should universities divest?Supporting the nuclear weapons industry heightens the risk of nuclear weaponsproliferation and use and undermines efforts to achieve a nuclear-freeworld.Universities’ spending of public funds on such an industry especiallyundermines the legitimacy of Australian government commitments for anuclear-weapon-free world.Nuclear weapons are inhumane, illegal and environmentally damaging aswell as a great threat to peace and security worldwide. Any use of nuclearweapons would violate international law and indiscriminately cause catastrophichumanitarian harm and widespread, long-term and severe environmentaldamage. By purchasing the shares and bonds of nuclear weapons companies,universities indirectly fund the modernisation and build-up of nuclear arsenalsworldwide. This is both unethical and irresponsible.Throughout history universities have been at the forefront of change and havedriven the implementation of socially and ethically responsible practices. Itis time for universities to be directly involved in the movement for a nuclearweapon-free-worldby divesting their funds from this destructive industry.What can divestment do?Although divesting from nuclear weapons producers by one university alonewill not end nuclear weapons production, divestment sends a clear signal todefence contractors, the financial sector and governments that involvement inthe nuclear weapons industry is unacceptable.Divestment helps to build acceptance of the illegality and illegitimacy ofnuclear weapons, and draws attention to their catastrophic humanitarian andenvironmental effects. Divestment can significantly impact on the investmentdecisions of fund managers and other educational institutions, helping to buildpressure on a company to end its involvement in nuclear weapons work.


DISARM YOUR DEGREE5University investments at a glanceInvesting in nuclear weapons companiesAustralian National University$840,060 (estimate only)Swinburne University of Technology Amount unknownUniversity of Sydney $2,282,483University of Wollongong $134,000Not investing in nuclear weapons companiesCharles Darwin UniversityFlinders UniversityMurdoch UniversitySouthern Cross UniversityUniversity of BallaratUniversity of CanberraUniversity of New EnglandUniversity of Southern QueenslandUniversity of Sunshine CoastUniversity of TechnologyUniversity of Western AustraliaVictoria UniversityInsufficient information on investmentsCentral Queensland UniversityCharles Sturt UniversityCurtin UniversityDeakin UniversityEdith Cowan UniversityGriffith UniversityJames Cook UniversityLa Trobe UniversityMacquarie UniversityMonash UniversityQueensland University of TechnologyUniversity of AdelaideUniversity of MelbourneUniversity of NewcastleUniversity of New South WalesUniversity of South AustraliaUniversity of Western SydneyNote: Australian Catholic University, RMIT and the University of Tasmania havenot been included in the report due to delays in responses to our inquiries.


6 INTRODUCTIONNuclear weapons companiesThe companies heavily involved in the maintenance, modernisation andmanufacture of nuclear weapons that are the focus of this report are:n Babcock International – United KingdomBabcock International is involved in the development of a new classof nuclear-armed submarine for the United Kingdom. It also assistswith the maintenance of the country’s existing fleet of Vanguard-classnuclear-armed submarines.n Babcock & Wilcox Company – United StatesThe Babcock & Wilcox Company supplies the US government withvarious nuclear components for its defence programmes. It operates thePantex plant of the National Nuclear Security Administration, where itmodernises nuclear warheads.n BAE Systems – United KingdomBAE Systems is involved in the development of a new class of nucleararmedsubmarine for the United Kingdom to replace the Vanguard class.It is also part of a joint venture that is producing nuclear missiles for theFrench air force.n Boeing – United StatesBoeing is involved in the maintenance of the 500 or so MinutemanIII intercontinental ballistic missiles in the US nuclear arsenal. It isresponsible for guidance, flight controls, secure codes, weaponssystems testing and engineering.n European Aeronautic Defence and Space – the NetherlandsThe European Aeronautic Defence and Space Company, or EADS, isa Dutch company that produces and maintains submarine-launchednuclear missiles for the French navy, and is part of a joint venture that isbuilding nuclear missiles for the French air force.n Finmeccanica – ItalyFinmeccanica holds a one-quarter share in MBDA, a joint venture thatis building nuclear missiles for the French air force. The missiles arecapable of being launched from the Mirage 2000N fighter plane and thenew Rafale fighter plane.n GenCorp – United StatesGenCorp is involved in the design, development and production of landandsea-based nuclear ballistic missile systems for the United States.It is currently producing propulsion systems for Minuteman III and D5Trident nuclear missiles.n General Dynamics – United StatesGeneral Dynamics provides maintenance, engineering and technicalsupport for US nuclear-armed submarines. It built the Ohio-classsubmarines for the US navy, many of which are equipped with Tridentnuclear-tipped missiles.


DISARM YOUR DEGREE7n Goodrich Corporation – United StatesGoodrich Corporation is a US-based company supplying systems andservices to the aerospace and defense industries. It is a wholly ownedsubsidiary of United Technologies Corporation. Goodrich is a leadingsupplier of acoustic and structural products for the US defense market.It is involved in the production of US nuclear-armed submarines.n Honeywell International – United StatesHoneywell International produces approximately 85 per cent of the nonnuclearcomponents for US nuclear weapons. It is involved in simulatednuclear testing and the life-extension programme for the US navy’sTrident II nuclear missiles.n ITT Corporation – United StatesITT Corporation’s subsidiary ITT Information Systems is involved in themaintenance of the nuclear weapons on board of the US Ohio-classsubmarines.n Jacobs Engineering – United StatesJacobs Engineering owns a one-third share in the Atomic WeaponsEstablishment, which designs, manufactures and maintains the nuclearwarheads for the United Kingdom’s submarine-launched intercontinentalballistic missiles.n Larsen & Toubro – IndiaLarsen & Toubro is involved in the design and construction of fivenuclear-armed submarines for the Indian navy, each of which will beequipped with 12 missiles. The company has also tested a launchsystem for India’s nuclear missiles.n Lockheed Martin – United StatesLockheed Martin is involved in the production and maintenance ofnuclear weapons for both the United States and United Kingdom. It isresponsible for the construction of submarine-launched Trident II D5nuclear missiles.n Moog Inc. – United StatesMoog Inc. designs and manufactures motion and fluid controls andcontrol systems for aerospace, defense, industrial and medical devicemarkets. It appears on the investment exclusion lists of several financialinstitutions for its involvement in nuclear weapons production.n Northrop Grumman – United StatesNorthrop Grumman leads a joint project responsible for producing andmaintaining Minuteman III nuclear intercontinental ballistic missiles forthe United States. Roughly 500 such missiles form the core of the USland-based nuclear arsenal.n Raytheon – United StatesRaytheon is involved in a project that aims to stretch the lifecycle of theTrident II D5 nuclear missiles of the US navy. It appears on the exclusionlists of a number of financial institutions owing to its involvement in theUS nuclear weapons programme.


8 INTRODUCTIONn Redhall Group – United KingdomRedhall Group operates within the nuclear weapons industry viacontracts with the British Ministry of Defence carrying out mechanicaland electrical engineering activities at the Atomic WeaponsEstablishment in Aldermaston and Burghfield.n Rockwell Collins – United StatesRockwell Collins is involved in a project to extend the lifecycle of theTrident II nuclear weapons of the US navy. It also manufactures aircraftused to deliver US nuclear weapons. It appears on the exclusion lists ofa number of financial institutions owing to its nuclear weapons work.n Rolls-Royce – United KingdomRolls Royce is part of a joint venture in the United Kingdom to developSuccessor, a new class of nuclear-armed submarine. It is also involvedin the maintenance of the existing fleet of Vanguard-class nuclear-armedsubmarines.n Safran – FranceSafran is part of a joint venture to build the new M51 submarinelaunchednuclear missiles for the French navy, which each delivermultiple warheads. Its subsidiaries Snecma and Sagem provide thepropulsion and navigation systems for these missiles.n Serco Group – United KingdomSerco owns a one-third share in the joint venture AWE-ML, whichruns the British Atomic Weapons Establishment. It is responsible formanufacturing and maintaining the nuclear warheads for the country’ssubmarine fleet.n Thales – FranceThales is part of a joint venture to build the new M51 submarinelaunchednuclear missiles for the French navy, which each delivermultiple warheads. EADS’s subsidiary Astrium is the lead contractor,whereas Thales is a main subcontractor.


10 INVESTMENTS IN DETAILUniversity of CanberraThe University of Canberra confirmed on 9 March 2012 that it does not holdany investments directly or in trust in any of the companies listed in this report.SOUTH AUSTRALIAFlinders UniversityFlinders University confirmed on 28 February 2012 that it does not holdany investments in the companies listed in this report, including investmentsmanaged by external fund managers.University of AdelaideThe University of Adelaide confirmed on 19 June 2012 that it does not haveany direct investments in any of the companies listed in this report. However, itcould not confirm whether or not its investments with fund managers were inany of the companies listed.The university invests its funds through two fund managers, MercerInvestments (Australia) Limited and Macquarie Private Portfolio Management.It has said that it does not hold any information on specific companies in whichits funds in Mercer Investments are invested. However, none of its funds withMacquarie Private Portfolio Management appear to be invested in any of thecompanies listed in this report.Mercer lists its top 10 portfolio holdings for some of its funds in itsquarterly reports. In its latest quarterly report, the portfolios listed didnot have investments in any of companies in this report. ICAN contactedMercer regarding its investments. However, it refused to disclose any otherinformation.University of South AustraliaUniversity of South Australia has been unable to confirm whether or notit directly invests in any of companies listed in the report. However, it didconfirm that it does not invest through external fund managers.We cannot definitively conclude that the university does not have investmentsin nuclear weapons companies. However, as the companies listed in this reportare listed on international stock exchanges and most universities use fundmanagers to invest in international equities, it would appear unlikely that theuniversity has investments in the companies listed in this report.NEW SOUTH WALESCharles Sturt UniversityCharles Sturt University confirmed on 20 March 2012 that it does not havedirect investments in any of the companies in this report. However, it couldnot confirm whether or not its investments with fund managers were in any


DISARM YOUR DEGREE11of the companies listed. The university’s funds are managed through the NSWTreasury Corporation within the Medium Term Fund, the Long Term Fundand 2 Australian Share Funds.ICAN has attempted to obtain information from NSW Treasury Corporationconcerning its portfolio holdings. However, it has so far been unresponsive toour inquiries. The fund manager also does not disclose its portfolio holdings inits annual or quarterly reports.Macquarie UniversityMacquarie University confirmed on 4 April 2012 that it does not directly investin the companies listed in this report. However, it was unable to confirmwhether or not its investments through fund managers were in any of thecompanies. The university’s funds are managed through MLC Australian ShareTrust, Zurich Investment Series – Australian Shares Fund and Gresham PrivateEquity Co Investment Fund.The university also holds a series of direct investments in fixed interestsecurities with Australian banks and NSW Treasury Corporation. TheUniversity has a minor cash deposit with UBS Global Asset Management– Cash Plus Fund and an investment with UBS Global Asset Management –Property Securities Fund.As the shares invested with MLC Implemented Consulting and ZurichInvestment Series are only in Australian stock-exchange-listed companies, theseinvestments are not in any of the companies listed in this report. As none ofthe holdings publicly disclosed on the Gresham Investment House websiteare companies listed in this report, its also appears unlikely the university hasinvestments in the listed companies through the Gresham Private Equity CoInvestment Fund.University of New EnglandThe University of New England confirmed on 14 February 2012 that it doesnot invest in any of the companies listed in this report.University of NewcastleThe University of Newcastle has been unable to confirm whether or not ithas investments in any of the companies listed in this report. However, it hasconfirmed that all its investments are held with fund managers.The fund names are:• ANZ Cash Plus Fund• Ausbil Dexia Australian Active Equity Fund• BT Wholesale Ethical Share Fund• Bennelong Australian Equities Core Fund• Mercer Overseas Shares Plus Fund (Unhedged)• BGI Hedged International Alpha Equity Fund (Active Currency and Country)• GPT Wholesale Shopping Centre Fund• GPT Wholesale Office Fund• Macquarie Global Property Securities Fund (Hedged)


12 INVESTMENTS IN DETAIL• Macquarie Property Securities Fund• BGI Global Ascent Fund• Mellon Global Alpha Plus• Quellos Fund of Hedge Funds (Kel Fund)• Franklin Templeton Multisector Bond Fund• Perpetual TrusteesANZ Cash Plus Fund, Ausbil Dexia Australian Active Equity Fund, BennolongAustralian Equities Core Fund, Macquarie Property Securities Fund, andFranklin Templeton Multisector Bond Fund do not have funds in internationalequities. As all of the companies listed in this report are listed on internationalstock exchanges and not the Australian stock exchange, it is unlikely any ofthese funds invest in the companies listed in this report.Mercer Overseas Share Plus Fund, BGI Hedged International Alpha EquityFund, BGI Global Ascent Fund and Mellon Global Alpha Plus all invest ininternational equities. It is possible that these funds invest in the companieslisted in this report. Only some of these funds publicly disclose informationabout their portfolio holdings. The publicly disclosed information is insufficientto determine whether or not these funds invest in nuclear weapons companies.It is positive that the university is investing in BT Wholesale Ethical ShareFund, as this fund specifically excludes investments in companies involved inthe manufacture of all weapons and armaments.There is not enough publicly disclosed information on the following fundsto determine whether they have investments in international equities or thespecific companies listed in this report: GPT Wholesale Shopping CentreFund, GPT Wholesale Office Fund, Macquarie Global Property SecuritiesFund (Hedged), BGI Global Ascent Fund, Quellos Fund of Hedge Funds (KelFund) and Perpetual Trustees.The university’s Investment Policy Statement (30 June 2006) states in Section 2.2Socially Responsible Investment that in regard to direct investment:[The University of Newcastle] will not knowingly invest in an organisation thatoperates at the expense of the environment, human rights, the public safety,the communities in which the organisation conducts its operations or thedignity of its employees.However, in regards to managed funds it states:The University has an obligation to maximise returns on assets under itscontrol, to diversify risk and to ensure the funds are efficiently managed.This objective will require investment through managed funds at the presentscale of the University’s assets. The University will consider the policies ofinvestment managers of managed funds with regard to socially responsibleinvestment objectives along with all other managed funds when implementingthis investment policy.It is positive that the university has a socially responsible investment policy forits direct investments, especially as it appears that companies involved in nuclearweapons production would fall within the scope of the policy. However, theuniversity should apply this policy to its funds with fund managers as well.


DISARM YOUR DEGREE13University of New South WalesThe University of New South Wales confirmed on 3 May 2012 that it does notdirectly invest in any of the companies listed in this report. However, it couldnot confirm whether or not its investments with fund managers were in any ofthese companies, stating that its fund managers only provide information onfund performance and not fund investments.The university’s fund managers and fund names are:• Pimco Australian Bond Fund – EQT PIMCO Wholesale Australian BondFund• Legg Mason Australian Bond Trust – Legg Mason Asset Australian BondTrust• State Street Global Advisors Global Index Plus (Hedged) Trust• State Street Global Advisors Global Index Plus Trust• BlackRock Wholesale Indexed Australian Equity Fund• Schroder Australian Equity Fund• Maple-Brown Abbott Australian Equity Fund• Maple-Brown Abbott Australian Equity TrustApart from funds managed by State Street Global Advisors, all of thesefunds only invest in Australian stock-exchange-listed companies. As none ofthe companies listed in this report are on the Australian stock exchange, it isunlikely any of these funds invest in the companies listed in this report.As the university’s investments with State Street Global Advisors are in indexfunds that invest in international markets, it is possible that the university hasinvestments in companies listed in this report. However, if the index doesinvest in the companies listed in this report, it would be very difficult for theuniversity to ask State Street Global Advisors to exclude these companies fromthe index. This is because fund managers only passively control index fundsand cannot easily exclude companies from them, as this can potentially breachthe product prospectus of the fund.The university has what it describes as an ‘overarching ethical policy’ (InvestmentPolicy, ‘General Principles 1.1’, Version 2.0, 1 December 2010), which states:UNSW should be seen as a socially responsible investor and has incorporatedthe following overarching ethical investment policy: The University will notknowingly and directly invest in an organisation that operates at the expenseof the environment, human rights, the public safety, the communities in whichthe organisation conducts its operations or the dignity of its employees.It is positive that the university has an ethical investment policy, especially asit appears that companies involved in nuclear weapons production would beincluded within the scope of the policy. However, the university should assessits investment policy on how it should be applied to index funds to ensure it isnot in breach of its policy.It would also be helpful if the university clarifed the meaning of ‘knowinglyand directly’ in its investment policy, as other universities have applied an ethicalpolicy to direct investments and not indirect investments.


14 INVESTMENTS IN DETAILSouthern Cross UniversitySouthern Cross University confirmed on 21 February 2012 that it does not haveinvestments in any of the companies listed in this report, and it does not investany of its funds through external fund managers.University of SydneyThe University of Sydney confirmed on 23 February 2012 that as of December2011 it had investments through its fund managers in several companieslisted in this report. The total exposure across all entities was 0.31% of theuniversity’s Long Term Investment Funds with a value of $2,282,483.The companies and values of the funds invested were:Company Value Percentage of totalBabcock International $2,820 0.0004%BAE Systems $103,510 0.0141%Boeing $35,710 0.0049%Finmeccanica $31,600 0.0043%Goodrich Corporation $501,400 0.0685%Honeywell International $1,019,200 0.1392%Jacobs Engineering $286,000 0.0391%Larsen & Toubro $565 0.0001%Northrop Grumman $19,800 0.0027%Raytheon $52,800 0.0072%Rockwell Collins $62,978 0.0086%Rolls-Royce $134,200 0.0183%Safran $17,600 0.0024%Serco Group $13,000 0.0018%Thales $1,300 0.0002%Total $2,282,483 0.31%The university is in the process of developing an environmental, social andgovernance framework for its investment activities. When ICAN contactedThe Vice-Chancellor, Dr Michael Spence, he stated that he would ensure ourconcerns were considered in the process.University of Technology SydneyThe University of Technology Sydney confirmed on 19 March 2012 that it doesnot invest directly in any of the companies listed in this report, and it does notinvest any of its funds through external fund managers.University of Western SydneyThe University of Western Sydney confirmed on 22 March 2012 that it doesnot have any direct investments in any of the listed companies in this report.However, it could not confirm whether or not its investments with fundmanagers were in any of these companies, as its fund managers do not provideinformation on specific companies. Its fund managers include Tcorp Hour-Glass Cash Facility, Tcorp Hour-Glass Long Term Growth Facility, OptimixWholesale Growth Trust and Optimix Wholesale Balanced Trust.


DISARM YOUR DEGREE15There is no publicly disclosed information available for the portfolio holdingsof Optimix Wholesale Growth Trust and Optimix Wholesale Balanced Trust.However, both of these funds invest in international equities. Therefore, it ispossible that they invest in the companies listed in this report.ICAN has attempted to obtain information on NSW Treasury Corporation’sportfolio holdings. However, it has so far been unresponsive to our inquiries.The fund manager also does not disclose its portfolio holdings in its annual orquarterly reports.University of WollongongThe University of Wollongong confirmed that as of 2 March 2012 it hadindirect investments in several of the companies listed in this report through itsfund manager, MLC Implemented Consulting, within its global equity portfolio.The exposure represented 0.12% of the overall university portfolio and totalled$134,000. The companies listed and the values of the funds invested were:BAE Systems $37,900Larsen & Toubro $79,200Northrop Grumman $10,300Raytheon $6,800Total $134,000NORTHERN TERRITORYCharles Darwin UniversityCharles Darwin University confirmed on 23 February 2012 that it does nothave investments in any of the companies listed in this report, includinginvestments managed by external fund managers.QUEENSLANDCentral Queensland UniversityCentral Queensland University confirmed on 14 February 2012 that it doesnot directly invest in any of the companies listed in this report. However, itcould not confirm whether or not its funds with external fund managers wereinvested in these companies. The university’s funds are managed throughQueensland Treasury Corporation and Queensland Investment Corporation.ICAN has been unable to obtain information on QIC or QTC shareholdings.Although they are both government-owned corporations, we have been advisedthat freedom of information laws do not apply to their commercial activities.Griffith UniversityGriffith University has been unable to confirm whether or not it invests inany of companies listed in the report, including investments managed byexternal fund managers. The university’s funds are managed through two fundmanagers, Queensland Investment Corporation and Queensland Treasury


16 INVESTMENTS IN DETAILCorporation. ICAN has been unable to obtain information on QIC or QTCshareholdings. Although they are both government-owned corporations, wehave been advised that freedom of information laws do not apply to theircommercial activities.James Cook UniversityJames Cook University confirmed on 17 May 2012 that it does not have directinvestments in any of the companies listed in this report. However, it couldnot confirm whether or not its investments with fund managers were in any ofthese companies because the information provided by its fund manager did notdetail investments in specific companies.The university’s funds are managed through Mercer Investments. As of 31December 2011, James Cook University’s portfolio listed shares and bondsin overseas equities. As Mercer only publicly discloses its top 10 holdings incertain funds, there is insufficient information to determine whether or not theuniversity has investments in any of the companies listed in this report.The university’s Financial Management Practice Manual (Version 12-01, 12 March2012) has a section on excluded investments. This section states:Where Finance Committee determines types of industries (eg tobacco oruranium) or companies (eg immoral staff practices concerning WHS) should beexcluded on ethical grounds these will be registered as excluded and adviceprovided to Fund Managers. A register of excluded investments shall bemaintained by the Executive Director, Finance and Resource Planning.However, the university does not currently have a register of excludedinvestments. It is positive that the university has an ethical investment policy,especially as there is scope for nuclear weapons companies to be excluded fromits investments. However, the university should develop a register of excludedinvestments that includes the companies listed in this report to ensure that itdoes not invest in these companies, either directly and indirectly.University of Sunshine CoastThe University of Sunshine Coast stated on 13 February 2012 that it is notinvolved in any form of equities, shares, bonds or trust activities.University of Southern QueenslandThe University of Southern Queensland confirmed on 13 June 2012 thatit does not have investments in any of the companies listed in this report,including investments managed by external fund managers.Queensland University of TechnologyQueensland University of Technology confirmed on 15 February 2012 that itdoes not directly invest in any of the companies listed in this report. However,it could not confirm whether or not its funds with external fund managers were


DISARM YOUR DEGREE17invested in these companies. The university’s funds are managed through twofund managers, Queensland Investment Corporation and SciVenture Pre-SeedFund. ICAN has been unable to obtain information on QIC shareholdings.QIC does not publicly disclose its portfolio holdings and although it is agovernment-owned corporation, freedom of information laws do not applyto its commercial activities. From the information provided online, SciVenturePre-Seed Fund looks unlikely to invest in the companies listed in this report, asits investment focus is in start-up companies.VICTORIADeakin UniversityDeakin University has been unable to confirm whether or not its investmentsare in any of the companies listed in the report, including investments managedby external fund managers.Monash UniversityMonash University confirmed on 14 June 2012 that it did not directly invest inany of the companies listed in this report. However, it was unable to confirmwhether or not its investments managed by external fund managers were inany of these companies. The university’s funds are managed through threefund managers: MLC Implemented Consulting Ltd, BT Investment Funds andMacquarie Investment Management Ltd.MLC Implemented Consulting has investments in several of the companieslisted in this report, including BAE Systems, Larsen & Toubro, NorthropGrumman and Raytheon, within its global equity portfolio. This suggeststhat the university is likely to have investments in several of the companies inthis report. As Monash would not disclose the fund names where its fundsare invested, it is difficult to determine whether or not the university hasinvestments in any other companies listed in this report.La Trobe UniversityLa Trobe University confirmed on 15 June 2012 that it does not directly investin any of the companies listed in this report. However, it was unable to confirmwhether or not its funds managed by external fund managers were investedin these companies. The university’s funds are managed through two fundmanagers: Industry Funds Management and Victorian Funds ManagementCorporation (VFMC).Industry Funds Management and VFMC do not publicly disclose theirportfolio holdings. However, they both invest in international equities, whichmeans that it is possible that they have funds in companies listed in this report.


18 INVESTMENTS IN DETAILSwinburne University of TechnologySwinburne University of Technology confirmed on 15 February 2012 thatit invests funds through its fund managers in several companies listed in thisreport. These investments were in two separate trust funds. As at 15 February2012, BAE Systems represented 0.89% of one fund, EADS represented 0.39%and 0.53% of two separate funds, Jacobs Engineering represented 0.11%of one fund and Northrop Grumman represented 0.57% and 0.69% of twoseparate funds. The university would not provide dollar values.BAE Systems 0.89%EADS 0.39% and 0.53%Jacobs Engineering 0.11%Northrop Grumman 0.57% and 0.69%University of BallaratThe University of Ballarat confirmed on 19 April 2012 that it does not investdirectly in any of the companies listed in this report, and it does not invest anyof its funds through external fund managers.University of MelbourneThe University of Melbourne confirmed on 3 May 2012 that it does not investdirectly in any of the companies listed in the report. However, it could notconfirm whether or not its funds with external fund managers were investedin these companies. The university’s funds are managed through the VictorianFunds Management Corporation (VFMC).VFMC does not publicly disclose its portfolio holdings. However, it does investin international equities, meaning it is possible that it has funds in companieslisted in this report.Victoria UniversityVictoria University confirmed on 27 March 2012 that it does not invest directlyin any of the companies listed in this report, and it does not invest any of itsfunds through external fund managers.WESTERN AUSTRALIACurtin UniversityCurtin University has been unable to confirm whether or not it invests directlyor indirectly in any of the companies listed in this report.Edith Cowan UniversityEdith Cowan University confirmed on 20 April 2012 that it does not directlyinvest in any of the companies listed in this report. However, it could not


DISARM YOUR DEGREE19confirm whether or not its investments with fund managers were in any of thecompanies listed. The university has investments in Schroder Balanced FundStandard Class, Blackrock Scientific Wholesale Diversified Stable Fund and ValeCash Management Fund.All funds appear to invest in international equities. Therefore, it is possible thatthey have funds in the companies listed in this report. The latest fund reportsdo not provide information on portfolio holdings.The university has a section on responsible investment in its Investment Policy(3 December 2011). Policy Content 7.1.10 states:Where consistent with the University’s fiduciary responsibility to act in the bestlong-term interests of its beneficiaries, the University will:a) Ensure environmental, social and labour force factors are taken intoaccount for any direct investments made by the University; andb) Access the capabilities of external investment managers to incorporatethese issues.It is positive that the university has an ethical investment policy, especiallyas there is scope to exclude nuclear weapons companies from its direct andindirect investments. The university should ensure nuclear weapons companiesfall within the policy and work with its fund managers to apply it to its indirectinvestments by finding out more about its investments.Murdoch UniversityMurdoch University confirmed on 10 April 2012 that it does not haveinvestments in any of the companies listed in this report, including investmentsmanaged by external fund managers.University of Western AustraliaThe University of Western Australia confirmed on 9 March 2012 that it doesnot have investments in any of the companies listed in this report, includinginvestments managed by external fund managers.


20Pathways forwardRECOMMENDATIONUniversities should develop ethical investment policies that exclude nuclearweapons companies both from their direct investments and their investmentsthrough fund managers. They should work with their fund managers toimplement these ethical policies on their managed investments.GET INVOLVEDWrite to university vice-chancellorsWriting to the vice-chancellor of a university is a great way to showyour concern about Australian public university investments in nuclearweapons companies. The university vice-chancellor is the chief executiveof the university and makes important decisions regarding the university’smanagement. By sending the vice-chancellor a letter, you can send a clearmessage that university investments in nuclear weapons companies areunacceptable and should be addressed.If the vice-chancellor receives multiple letters from concerned students,academics and members of the community, this could build pressure to directthe financial department to divest the university’s funds from nuclear weaponscompanies. If the university has not yet provided sufficient information onits investments, the vice-chancellor may find out more about the university’sinvestments and disclose this information.If your university currently does not have investments in nuclear weaponscompanies, sending a letter to your vice-chancellor could also help supportthe university to not begin investing in these companies and encourage theuniversity to develop an ethical investment policy.ICAN has already sent letters to the vice-chancellors of the four universitiesthat have investments in nuclear weapons companies. We have received oneresponse from the University of Sydney. We encourage concerned students,academics, administrative staff and community members of the three otheruniversities to write to their vice-chancellors to elicit a response.


PATHWAYS FORWARD21Contact details for vice-chancellorsAustralian National UniversityProfessor Ian Young AOVice-Chancellor & PresidentAustralian National UniversityCanberra ACT 0200P: +61 2 6125 2510F: +61 2 6257 3292vc@anu.edu.auCentral Queensland UniversityProfessor Scott BowmanP: + 61 (0) 7 49309752F: + 61 (0) 7 49309018vc-cquniversity@cqu.edu.auCharles Darwin UniversityProfessor Barney GloverVice-ChancellorCharles Darwin UniversityDarwin NT 0909P: +61 8 8946 6040F: +61 8 8927 3480vc@cdu.edu.auCharles Sturt UniversityProfessor Andrew VannOffice of the Vice-ChancellorCharles Sturt UniversityPanorama AvenueBathurst NSW 2795P: +61 2 6338 4209F: +61 2 6338 4809vc@csu.edu.auCurtin UniversityProfessor Jeanette HacketP: +61 8 9266 7001F: +61 8 9266 2779vc@curtin.edu.auDeakin UniversityProfessor Jane den HollanderGeelong Waterfront Campus1 Gheringhap StreetGeelong VIC 3220P: +61 3 5227 8503F: +61 3 5227 8500vcoffice@deakin.edu.auEdith Cowan UniversityProfessor Kerry O. CoxP: +61 8 6304 2205vc@ecu.edu.auFlinders UniversityProfessor Michael N BarberP: +61 8 8201 3904kay.anderson@flinders.edu.auGriffith UniversityProfessor Ian O'ConnorOffice of the Vice ChancellorGold Coast/Griffith UniversityParklands DriveSouthport Qld 4222P: +61 7 5552 8830F: +61 7 5552 8777James Cook UniversityProfessor Sandra HardingVice-Chancellor’s OfficeJames Cook UniversityTownsville Qld 4811P: +61 7 4781 4165F: +61 7 4781 4050vc@jcu.edu.auLa Trobe UniversityProfessor John DewarContact: Mr David EnsorP: +61 3 9479 3397F: +61 3 9479 3353d.ensor@latrobe.edu.auMacquarie UniversityProfessor Steven SchwartzP: (02) 9850 7440vc@mq.edu.auMonash UniversityProfessor Ed ByrneContact: Kerrie EdwardsP: +61 3 9902 9851kerrie.edwards@monash.eduMurdoch UniversityProfessor Richard HiggottP: 9360 6300r.higgott@murdoch.edu.auQld University of TechnologyProfessor Peter Coaldrake AOGPO Box 2434Brisbane QLD 4001P: +61 (7) 3138 2367F: +61 (7) 3138 4061Southern Cross UniversityProfessor Peter LeeP: 61 2 6620 3703vc@scu.edu.auSwinburne University ofTechnologyProfessor Linda KristjansonP: +61 3 9214 8163lkristjanson@swin.edu.au


22 PATHWAYS FORWARDUniversity of AdelaideProfessor Warren BebbingtonUniversity of Adelaide SA 5005P: +61 8 8313 5780F: +61 8 8313 4343vice-chancellor@adelaide.edu.auUniversity of BallaratProfessor David BattersbyVice-Chancellor's OfficeUniversity of BallaratPO Box 668Ballarat VIC 3353P: +61 3 5327 8500s.scott@ballarat.edu.auUniversity of CanberraProfessor Stephen ParkerUniversity of Canberra ACT 2601P: 02 6201 5000F: 02 6201 5036stephen.parker@canberra.edu.auUniversity of MelbourneProfessor Glyn Davis9th Floor, Raymond Priestley BldgThe University of MelbourneVictoria 3010 AustraliaP: +61 3 8344 6136F: +61 3 9347 7253 / 9341 6060vc@unimelb.edu.auUniversity of New EnglandProfessor Jim BarberOffice of the Vice-ChancellorUniversity of New EnglandArmidale NSW 2351P: +61 2 6773 2004F: +61 2 6773 3710vc@une.edu.auUniversity of New South WalesProfessor Frederick G Hilmer AOP: +61 2 9385 2788F: +61 2 9385 1949vice-chancellor@unsw.edu.auUniversity of NewcastleProfessor Caroline McMillenP: +61 2 4921 5101F: +61 2 4921 5115jenny.brockelsby@newcastle.edu.auUniversity of South AustraliaProfessor Peter HøjP: +61 8 830 20502F: +61 8 830 20501Peter.Hoj@unisa.edu.auUniversity of Southern QldProfessor Jan ThomasP: +61 7 4631 2187vc@usq.edu.auUniversity of Sunshine CoastProfessor Greg HillOffice of the Vice-Chancellor ML3University of the Sunshine CoastMaroochydore DC QLD 4558P: +61 7 5430 1101F: +61 7 5430 1105vcoffice@usc.edu.auUniversity of SydneyDr Michael SpenceOffice of Vice ChancellorA14 QuadrangleUniversity of Sydney NSW 2006P: +61 2 9351 5051F: +61 2 9351 4596University of Technology SydneyProfessor Ross MilbournePO Box 123Broadway NSW 2007P: +61 2 9514 1333F: +61 2 9514 1300E: julia.tompkins@uts.edu.auUniversity of Western AustraliaProfessor Paul JohnsonVice-ChancelleryUniversity of WA (M464)35 Stirling HighwayCrawley WA 6009P: +61 8 6488 2808F: +61 8 6488 1013E: paul.johnson@uwa.edu.auUniversity of Western SydneyProfessor Janice ReidP: +61 2 9678 7801F: +61 2 9678 7809E: vc@uws.edu.auUniversity of WollongongProfessor Paul WellingsVice Chancellor’s UnitUniversity of WollongongWollongong NSW 2522P: +61 2 4221 3932F: +61 2 4227 1771E: paul_wellings@uow.edu.auVictoria UniversityProfessor Peter DawkinsP: +61 3 9919 4011F: +61 3 9919 5099E: vice-chancellor@vu.edu.au


DISARM YOUR DEGREE23Publish an article in your student magazine or newspaperIf you’re a student currently enrolled in a university, writing an article for yourstudent magazine or newspaper is a great way to raise awareness of universitiesinvesting in nuclear weapons companies. Raising awareness will increasediscussion of the issue and could pressure your university into divesting itsfunds and developing an ethical investment policy. Most universities havestudent magazines or newspapers run by their student unions. Contact theeditor of the magazine to see how you can get your article published.Student Union ActivismIf you’re a current student, raising the issue of university investments in nuclearweapons companies through a student club is a great way to build pressure onthe university to divest. University student unions often have clubs focused onsocial justice issues. If you are already involved in one of these clubs, discusswith your group how you could raise awareness at the university and show thatstudents are opposed to the university investing in nuclear weapons companies.For example, organise an event, demonstration or petition. If you are notalready involved in a student club, sign up and get involved.Student unions often have a student-elected president who represents studentson official university councils and committees. Speaking with and writing to thepresident of the student union about your concerns of the university investingin nuclear weapons companies is also a great way to raise awareness and buildpressure on the university to divest its funds from nuclear weapons companies.The student president can represent your concerns at meetings with universitystaff who make decisions about the running of the university.CONCLUSIONAustralian public university investments in nuclear weapons companiesundermine efforts to achieve a nuclear-free-world. Nuclear weapons are thegreatest immediate threat to the peace and security of society and any use ofthem would cause widespread, long-lasting, humanitarian and environmentaldevastation. By financing the companies that produce nuclear weapons,universities are financing the maintenance and modernisation of nucleararsenals worldwide. As Australian public universities are partly funded by theAustralian government, public funds are being invested in a destructive industryand are undermining the government commitments to disarmament.This report has identified four universities that have investments in nuclearweapons companies. These universities as well as all universities who may haveinvestments must divest their funds from these companies. Furthermore, alluniversities should develop ethical investment policies to ensure their funds arenever invested in this industry in the future and should work with their fundmanagers to ensure these policies are implemented.A growing number of financial institutions and foreign-government-ownedpension funds are opting to exclude nuclear weapons producers from theirinvestment portfolios. It is time for universities and academic institutions inAustralia to follow suit and join the campaign for a nuclear-free world.

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