Nukes still in KiwiSaver

Investments in companies involved with nuclear weapons still feature in dozens of KiwiSaver funds, according to research by ethical investment group Mindful Money.

The KiwiSaver schemes of ANZ, ASB, AMP, BNZ, Kiwi Wealth and Westpac were among those with funds still tainted with exposure to nuclear weapons despite a public outcry in 2016 following media coverage.

There were also default funds, including those of Westpac, AMP, ANZ and Kiwi Wealth, with exposure to companies involved with the nuclear arms industry.

The total exposure across the nearly $60 billion of KiwiSaver funds was just over $130 million, Mindful Money found.

Barry Coates, the former Green MP who founded Mindful Money, which people can use to check what their KiwiSaver is invested in, said the Government should ban KiwiSaver default funds from investing in companies profiting from nuclear arms.

Mindful Money compiled its list of nuclear weapons companies from the exclusion lists of giant sovereign wealth funds including the New Zealand Super Fund, the Norwegian Nordea fund, and the Danske Bank Danish fund.

This list, which includes multi-national giants like Honeywell, BAE Systems, Boeing and Rolls Royce, was checked against the portfolios of KiwiSaver funds at March 31, which are the latest full portfolios available.

Only a small part of these businesses’ operations may be in the nuclear weapons arena, such as supplying components for weaponry, or maintaining military bases on which weapons are kept.

ANZ, ASB, AMP, BNZ, Kiwi Wealth and Westpac all had responsible investment policies designed to exclude investments in companies involved in making or maintaining nuclear weapons, but Coates said the policies ‘‘had holes in them’’.

The Government was reviewing the rules around the giant default KiwiSaver funds, which together hold a combined $9.25b, and Coates called for a ban all investments in companies profiting from the nuclear arms industry.

He said there was strong public support for a ban. A recent survey showed nearly 80 per cent of KiwiSavers did not want to profit from weapons.

Mindful Money’s research coincides with the beginning of an international effort to highlight just how much money was still being spent globally on nuclear weapons.

Mindful Money found some KiwiSaver schemes which had pledged publicly to get rid of nuclear weapons investments still held shares in companies linked to the weapons.

Westpac’s KiwiSaver has a blanket exclusion on all companies involved with nuclear weapons but it does say: ‘‘In certain situations, we invest in Collective Investment Vehicles (CIVs) where it may not be practical or cost effective to directly hold the underlying assets.

The use of CIVs is evaluated on a case-by-case basis.’’

It’s exposure, Mindful Money found, was through Rolls Royce and Chemring in the United Kingdom, and United Technologies in the United States.

AMP’s exposure was though Boeing and Airbus, Mindful Money found.

It’s policy was not to invest in such companies, but that it could still happen through ‘‘underlying’’ overseas managers.

ANZ’s exposure was through BAE Systems and United Technologies.

ASB pledged to de-weaponise its KiwiSaver in late 2016, following moves by Westpac and ANZ to do the same. It had holdings in Boeing, United Technologies, and Harris Corporation, Mindful Money found.

BNZ fund’s exposure was from Mitsubishi and US company Honeywell. Kiwi Wealth was invested in Airbus, Boeing, AECOM.

Mindful Money found exposure to nukes in many smaller KiwiSaver schemes too, including the Medical Assurance Society scheme for doctors and other health workers.

A recent survey showed nearly 80 per cent of KiwiSavers did not want to profit from weapons.