About $60 million of Kiwisaver funds are being invested in companies supplying weapons and components used by the Israeli military for the conflict in Gaza.
Most investors don’t know this says Barry Coates, chief executive of the ethical investment charity Mindful Money.
He says $9.3m of Kiwisaver funds are invested in Boeing, the largest supplier of weapons to Israel – including missile guidance systems, bombs and aircraft.
Mindful Money research also found $9.6m of Kiwisaver funds has been invested in Rolls-Royce Holdings whose German subsidiary makes engines for Israeli battle tanks.
Kiwisaver has invested $8.1m in Honeywell too. Those funds will help make components for missiles and drones.
Ethical investments sought
Mindful Money’s annual surveys show that most people have ethical concerns about where their money is put to use. They don’t want it invested in weapons.
Of the three million people enrolled in Kiwisaver, he says most weren’t told where their money was invested.
“Where your money is invested has consequences ‒ for people, for workers, for the environment, for climate change.”
Most investors want to avoid human rights violations, animal cruelty, fossil fuels, social harm from tobacco, alcohol and gambling, as well as weapons.
Demand for more ethical options had driven a huge change in investing over the last five years, Coates says.
This has seen Kiwisaver and investment fund managers advertise their investment policies. Today they are likely to say their investments are ethical, sustainable or using ESG [environmental, social and governance] policies.
“But the objective test is where they invest our money. Investing in weapons companies that profiteer from unjust wars is deeply offensive to most Kiwis” Coates says.
The Mindful Money website has resources – including a fund checker and a fund finder tool – available to help people review their Kiwisaver fund and be matched with a new one if necessary.
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