Have a look at the ANU endowment 2013 report.
The key line is:
Investments LTIP (which typically stands for Long Term Investment Portfolio) – $165mill
The stocks to be divested represent around 5.1 per cent of the University’s Australian equity holdings and approximately one per cent of its total investment holdings.
The University Council also agreed to move to an outsourced management of domestic equities using an enhanced index manager.
The selection of the manager will include assessment of their ability to meet the University’s SRI requirements.
There are two things to note from this.
- WTF is a bunch of boffins managing a $165 million investment portfolio. Most organisations like this have outsourced this years ago (for better or worse).
- They said they plan to use “an enhanced index manager”.
For a not for profit (nfp) organisation like this they will be overweight Australian equities (because nfp’s just lurrve the franking credit refund). The most relevant index is the ASX/S&P300.
As you know, there are a lot of mining companies in the ASX300.
Here is the sector breakdown.
So Materials (resources) & Energy (oil/gas/coal) make up 22.5% of the ASX/S&P300.
Sooooo, the ANU makes a big song & dance about selling 5.1% of its direct equities which are in “black listed” companies.
But then outsources the domestic equities portfolio to an enhanced index manager who will most probably try aim to outperform the ASX/S&P300 index with has a 22.5% weighting in the companies they are so desperate to avoid.
So somehow it’s not okay to have a 5.1% exposure to something DIRECTLY.
But via one degree of separation, it is okay to have a 22.5% exposure to something.