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Investing ethically in KiwiSaver in wake of Russian invasion

14th March 2022

Millions of Kiwis are part of the KiwiSaver retirement scheme, where money is invested each paycheck, and more of them are interested in exactly where their money is going.

This article originally featured on 1News and was written by Breakfast. 

Millions of Kiwis are part of the KiwiSaver retirement scheme, where money is invested each paycheck, and more of them are interested in exactly where their money is going.

Not everyone is confident, however, figuring out where their provider is putting their money and if it aligns with their values, Frances Cook, financial author and investments editor at Business Desk told Breakfast.

Last month, 1News revealed hundreds of KiwiSaver and investment funds were found to be investing money into Russian companies, including major state-backed institutions.

Some KiwiSaver funds are already pulling investments out of Russian state-linked companies and government bonds.

This month, the New Zealand Defence Force asked for the urgent withdrawal of any of its KiwiSaver scheme funds invested in Russian and Belarusian markets.

Some funds have also invested in companies involved in fossil fuels, animal testing and weapons.

Ethical investing has become more prominent and Cook recommends people with KiwiSaver accounts take the opportunity to discover where their money is going and if they support it.

Cook said some funds had invested directly in Russian bonds, which in effect was lending money to the Russian government.

"I think a lot of people don't want to be supporting that regime," she told Breakfast.

Cook also said some companies were 'greenwashing', where they say the right things and say ethical investing is important to them, but may not be putting in the "hard yards".

Cook encourages people to head to Mindful Money to check the ethics of their KiwiSaver funds. KiwiSaver providers also have their investments listed on their websites.

She said ethical investing looks different for everyone and it’s good to check your money is being invested in places that align with your values.

Cook said if you don't agree with where your provider was investing, it was easy to move to another one.