The investments of the default KiwiSaver providers should be reviewed to make sure they are in line with New Zealanders’ values and expectations, says Labour’s Finance spokesperson Grant Robertson.
“Most New Zealanders would be appalled that their KiwiSaver funds are being invested into cluster bombs and land mines.
“The fact there are 500,000 people in default funds, many of whose investments will have gone in automatically, puts a greater duty of care on those providers.
“There is also significant government funding going into default funds, such as the member tax credit, so this is an issue for the government.
“ACC and the Super Fund are not allowed to invest in such munitions, so why should KiwiSaver funds, especially those given the official green light from the Government?
“The Kiwisaver Act gives powers to the Minister to impose terms and conditions on default providers as they see fit. The Government needs to review the conditions to give New Zealanders confidence that their money is being invested appropriately,” says Grant Robertson.