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Category Finance
Type Policy
Approved by Vice-Chancellor, 1 July 2026
Date policy took effect 3 July 2026
Last approved revision 
Sponsor Chief Financial Officer
Responsible officer Financial Controller

Purpose

The University is committed to:

  • the principles of leadership, social accountability, sustainability, community and partnership across all aspects of its operations, including in the selection and management of investments, and
  • ensuring the University obtains, as far as possible, the best return on its investments.

This Policy clarifies the application of these principles to the selection and management of investments made by or on behalf of the University of Otago or its Related Parties.

Organisational scope

This Policy applies to the University of Otago parent and is intended to apply as far as possible to wholly owned subsidiaries and the University of Otago Foundation Trust.

Definitions

Collective Investment Vehicles
Entities which allow investors to pool their money and invest into a diversified portfolio of securities. This is a form of “indirect” investment under this Policy.
Exchange Traded Funds
Funds traded on recognised exchanges holding a number of underlying liquid securities. This is a form of “indirect” investment under this Policy.
Related Parties
For the purposes of this Policy, subsidiaries wholly owned by the University, and the University of Otago Foundation Trust.
University of Otago Foundation Trust
A registered charitable trust established in 2002 to receive and administer donations, bequests and sponsorship monies gifted to the University, governed independently by a board of trustees in accordance with a trust deed.

Content

  1. Alignment with strategic vision and principles, frameworks and statements

    1. This Policy reflects the University’s strategic vision set out in Vision 2040:
      1. Our people and knowledge transforming lives, connecting communities, and nurturing the environment in Otago, Te Waipounamu, Aotearoa, the Pacific, and the world.
    2. The Policy reflects the University’s strategic principles set out in Vision 2040, most relevantly:
      1. Academic freedom: acting as a critic and conscience of society
      2. Leadership: demonstrated through integrity, honesty and accountability
      3. Social accountability: contributing significantly to local, regional, national and global advancement; supporting and promoting equity, inclusivity, diversity and reciprocity; behaving ethically and with compassion
      4. Community and partnership: being a Te Tiriti led University and a partner of mana whenua; building and maintaining rewarding relationships with the city of Dunedin and other cities and local authorities, industry, government agencies, and other universities and organisations in Aotearoa, across the Pacific and beyond; and with alumni, friends and supporters
      5. Stewardship: maintaining and enhancing our intellectual capital and physical, digital, and financial resources
      6. Sustainability: demonstrated by the University’s ongoing commitment to the United Nations Sustainable Development Goals; and engaging with the wider community, external groups and authorities to encourage and support sustainability locally, nationally and globally.
    3. Under this policy, ethical investment, including the management of investments, is that which aligns with the principles in the University’s strategic documents and frameworks. These include:
      1. Pae Tata | Strategic Plan to 2030 (PDF)
      2. Māori Strategic Framework 2030
      3. Pacific Strategic Framework 2022–2030 (PDF)
      4. Equity and Diversity Strategic Framework
      5. Tī Kōuka: The Sustainability Strategic Framework 2022–2030 (PDF)
    4. This Policy arises from and is to be read in conjunction with the University’s Statement on Institutional Neutrality.
      Free speech and institutional neutrality – University of Otago
    5. This Policy recognises that ensuring the University obtains the best return on its investments will support the University in achieving its strategic vision.

  2. The University of Otago Foundation Trust

    1. The University of Otago Foundation Trust administers a significant long-term investment portfolio with a fiduciary duty to act in the best interests of the University.
    2. The University of Otago Foundation Trust is committed to sustainable investment, to the principles of the University, and to avoiding prejudice to the University’s reputation
    3. The University of Otago Foundation Trust’s Statement of Investment Policy and Objectives sets out its own requirements for prudent investment and risk management, return objectives, and sustainable investment.
    4. While the University of Otago Foundation Trust is independent, it will be informed by this policy when reviewing and applying its Statement of Investment Policy and Objectives to the selection and management of investments, noting that the sole purpose of the Foundation Trust is to uphold the values and successes of the University.

  3. Positive investments

    1. This Policy encourages and does nothing to prevent the University or its Related Parties from selecting investments that deliver positive social, sustainability, or community and partnership impacts in addition to acceptable financial returns.

  4. Prohibited investments

    1. The University or its Related Parties will not directly or indirectly invest in the following sectors or entities, recognising that they are inconsistent with ethical investment as described in this Policy:
      1. Tobacco: entities involved in the manufacture of tobacco products
      2. Armaments: entities involved in the manufacture, distribution, or sale of anti-personnel landmines, cluster munitions, nuclear weapons, biological or chemical weapons, or any other weapons deemed illegal under international law, or of civilian automatic and semi-automatic firearms, magazines or parts
      3. Fossil fuels: entities involved in the mining of coal and tar sands, or the exploration and production of oil and gas.
    2. The University acknowledges that compliance with clause 4.a. can and will be ensured by excluding these sectors or entities from investment consideration in advance. Compliance can be supported through analysis and vetting of Collective Investment Vehicles and Exchange Traded Funds before they are utilised.

  5. Grounds for divestment

    1. The University acknowledges that investments in entities may become inconsistent with ethical investment as described in this Policy, including where investments are directly or indirectly held in entities which subsequently become engaged in:
      1. Actions involving corruption: entities proven to be engaged in illegal or criminal activity, including money laundering, human trafficking or bribery
      2. Actions causing unlawful environmental harm: entities proven to cause significant, deliberate, and ongoing environmental degradation, including deforestation or unremediated toxic waste dumping
      3. Actions involving unlawful violation of human or labour rights: entities proven to be complicit in systematic human rights abuses, including forced labour or child exploitation.
    2. Where it becomes apparent that direct or indirect investments are held which are inconsistent with ethical investment as described in this Policy, such investments will be divested in accordance with clause 7. of this Policy.

  6. Engagement and advocacy

    1. The University can positively influence corporate behaviour through active engagement and shareholder advocacy, while acknowledging the University’s Statement on Institutional Neutrality.
    2. Where appropriate, the University or its Related Parties may:
      1. Engage with sectors or entities to encourage practices that align with this Policy
      2. Exercise voting rights to support shareholder resolutions that align with this Policy
      3. Collaborate with others to advance investments that align with this Policy.
    3. For the avoidance of doubt, nothing in this Policy prevents a member of the University community from expressing views about any sector or entity behaviour, consistent with the principles of academic freedom and the University’s Statement on Free Speech.

  7. Transitional arrangements

    1. Where this Policy requires divestment, every effort must be made to ensure a responsible and orderly transition, and to minimise transaction costs.
    2. While every attempt must be made to exclude prohibited investments from Collective Investment Vehicles or Exchange Traded Funds, if discovered, it is acknowledged that materiality thresholds and timelines for divestment may need to be determined.
    3. In the case of the University of Otago Foundation Trust, divestments will be managed in accordance with the Statement of Investment Policy and Objectives.

  8. Complaints

    1. Any member of the University community who wishes to raise a complaint regarding compliance with this Policy:
      1. may do so by emailing cfo@otago.ac.nz in the first instance, or
      2. may make a disclosure in accordance with the Protected Disclosures Policy.
        Protected Disclosures Policy
    2. In the case a complaint regarding a Related Party, the Chief Financial Officer or recipient of a protected disclosure must consult the Related Party as far as necessary or appropriate to enable a response to the complaint.

Related policies, procedures and forms

Contact

If you have any queries regarding the content of this policy or need further clarification, contact:

Chief Financial Officer
Email cfo@otago.ac.nz

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