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

Purpose

This Procedure outlines the University’s expectations for review, reporting and decision-making under the Ethical Investment Policy for the University’s wholly owned subsidiaries and the University of Otago Foundation Trust.

Organisational scope

This Procedure 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

Grounds for Divestment
As defined in the University’s Ethical Investment Policy.
Prohibited Investments
As defined in the University’s Ethical Investment Policy.
Related Party
For the purposes of this Procedure, a Related Party is a board of a subsidiary wholly owned by the University, and the Board of Trustees of 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. 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. While the University of Otago Foundation Trust is independent, the University encourages the Trust, and its agents and advisors, to apply this Procedure as far as possible.

  2. Prohibited investments

    1. This Procedure is predicated on the principle that a Related Party will conduct, or obtain, from its agents and advisors, reviews at six monthly intervals which identify whether any Prohibited Investments are held by the Related Party, and if held, that the Related Party will make a determination regarding divestment in each case.
    2. The expectation is that a Related Party will provide in writing to the University Council as soon as practicable after 31 December each year:
      1. an assurance that no Prohibited Investments were held in the previous calendar year, or
      2. if Prohibited Investments were held, all relevant information, including when the holdings were acquired, the materiality of the investments, and any approach to divestment which has been or may be undertaken.
    3. In relation to any Prohibited Investment held by a Related Party the University Council reserves the right to:
      1. request further information from the Related Party, and
      2. following consultation with the Related Party, to communicate its expectations regarding divestment.

  3. Grounds for divestment

    1. Related Parties will conduct, or obtain from their agents and advisors, reviews at six monthly intervals to determine whether any investments are held where Grounds For Divestment exist, and if held, that the Related Party will make a determination regarding divestment in each case.
    2. Related Parties will provide in writing to the University Council as soon as practicable after 31 December each year:
      1. an assurance that no investments were held in the previous calendar year where Grounds For Divestment exist, or
      2. if investments were held where Grounds For Divestment exist, all relevant information including when the holding was acquired, materiality, and any approach to divestment which has been or may be undertaken.
    3. In relation to any investment held where Grounds For Divestment exist the University Council reserves the right to:
      1. request further information from a Related Party, and
      2. following consultation with the Related Party, to communicate its expectations regarding divestment.

  4. Complaints

    1. Consistent with the Ethical Investment Policy, any member of the University community who wishes to raise a complaint regarding compliance with this Procedure:
      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 of 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.
    3. If, after consultation about a complaint with a Related Party, the Chief Financial Officer or recipient of a protected disclosure has reasonable grounds to believe that a Related Party holds a Prohibited Investment or an investment where Grounds For Divestment exist, then:
      1. the Vice-Chancellor must be consulted, and
      2. the Vice-Chancellor shall determine whether to refer the complaint to the University Council, and
      3. the procedures in clause 2.c. and clause 3.c shall apply.

Related policies, procedures and forms

Contact

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

Chief Financial Officer
Email cfo@otago.ac.nz

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