The state-owned Superannuation Fund is looking at getting rid of its shares in firearms as a result of the Christchurch mosque attacks.
The fund specifically excludes investment in cluster munitions or nuclear arms, and in light of the planned gun law reform it is reviewing whether a broader weapons exclusion is needed.
It has $1.3 million invested in three firearms retailers and manfacturers: American Outdoor Brands Corporation, Sturm Ruger and Vista Outdoor.
Chief executive Matt Whineray said it would be talking to the board next week about selling out of those three companies and excluding firearms from its portfolio.
"At this stage we haven't seen the legislation but we know pretty much what that's going to say so we've got a good position to have a discussion with the board."
The government expects to pass legislation banning most semi-automatic rifles by the end of next week.
The Arms (Prohibited Firearms, Magazines and Parts) Amendment Bill will ban semi-automatic rifles and military style semi-automatics (MSSAs) with the exception of firearms such as .22 calibre rifles and shotguns with magazines that cannot hold more than five rounds of ammunition.
Parts, magazines and ammunition which can be used to assemble a prohibited firearm or convert a lower-powered firearm into a semi-automatic will also be banned.
Police said yesterday 211 firearms had been surrendered since the afternoon of the Christchurch terror attacks.
Some people had handed in their guns even before the government announced the suite of changes to firearm laws.
There have been almost 1500 calls to the police 0800 information line about the changes, and about 900 online web forms have been filled in.