Kiwi Wealth issued a white paper saying that sector exclusions were a blunt instrument to tackle responsible investment. They could work against investors and meant managers were neglecting their fiduciary duty to act in investors’ best interests.

“Not only are sector exclusions inflexible and limited in building investor value, it’s an approach that doesn’t necessarily effect any real or positive change in the behaviour of companies within excluded sectors.”

But Simplicity founder Sam Stubbs, who has excluded sectors including pornography, guns and fossil fuels, said the view was short-sighted.

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