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KiwiSaver has been criticised for continuing to invest in companies linked to settlements in the Israeli-occupied West Bank.
photo: IRD/Screenshot
An ethical investment group has raised new concerns about KiwiSaver funds that invest in companies involved in building and financing Israeli settlements in the occupied West Bank.
Research by Mindful Money shows that investment in such companies increased 20% to $85 million in the six months to March.
last month, Supreme Court of the United Nations Calls Israeli settlements in the occupied Palestinian territory illegal, although Israel disputes that.
Be prudent with your finances Chief executive Barry Coates said the charity identified a number of companies involved in the settlement, covering broad categories including demolition, financing and surveillance.
He said index funds – where KiwiSaver investments follow an index – were one reason to invest in such companies.
“A lot of the money is because these companies are included in index funds, so they’re included in broad funds,” Coates said.
“But at the same time, there are also some active investment funds that have decided to actively invest in these companies even though they are not included in the index.”
A UN report previously pointed out that Israeli settlements Violations of Palestinian human rights.
Coates criticised KiwiSaver funds for continuing to invest in the companies after Mindful Money wrote to fund managers in November 2023 asking them to divest from the companies linked to the settlement.
“The Palestinian people are being forced off their land and homes with the support of the Israeli army and multinational corporations,” he said.
“It may be legal for KiwiSaver and other investment funds to invest in these companies, but it is certainly an unacceptable ethical position.”
Coates said research by Mindful Money found that in the long term, returns on investments in ethical companies were “at least as high, if not higher” than those that ignored them.
Last year, nonprofit fund managers Simplicity sells stakes in three Israeli banks Relevant to settlement financing.
KiwiSaver investors who want to check their fund’s investment status can visit Be prudent with your finances website.
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