• $71.9 million of KiwiSaver and retail funds invested in weapons companies
• $179.9 million invested in two other non-weapons companies.

Annual survey data shows that 80% of Kiwis want to avoid investing in weapons

Comprehensive new analysis by charity Mindful Money reveals New Zealand KiwiSaver funds have dramatically increased their investment in weapons companies, with total weapons investments reaching $392.4 million – a staggering 40.9% increase from the previous year.

The research exposes how KiwiSaver providers are seeking short term profits from war. A contributor to the increase was a surge in sales of military weapons used in the bombardment of Gaza. New Zealand investment in the production of weapons used in Gaza, through KiwiSaver and retail investment funds, totalled $71.9 million a rise of 18.9% over the year to end March 2025.

The latest annual survey revealed that 80% of New Zealand investors want to avoid investing in weapons. But the surge in weapons investment by KiwiSaver and investment funds shows the growing misalignment with the values of KiwiSaver investors during some of the world’s deadliest conflicts since World War II.

Barry Coates, Mindful Money Founder and CEO commented: “There has been a huge rise in weapons investment by New Zealanders. The chase for higher returns means that Kiwis’ hard-earned savings are being used to invest in companies whose weapons have resulted in the devastation of Gaza.”

Gaza Conflict Connections Raise Ethical Concerns

Few New Zealanders realise there is a direct connection between their savings and companies supplying weapons to the Gaza conflict. In addition to New Zealand’s retail investment in weapons companies, there has been a major increase in New Zealand investment in non-weapons companies supporting operations in Gaza, such as Caterpillar and Amphenol. Investment in those two companies alone totalled $189 million, up 39% over the year to end March 2025.

Few KiwiSaver fund providers tell their customers that their hard-earned savings are being invested in companies complicit in a brutal conflict that has led to mass killing and starvation of Gaza’s people. So far the conflict has resulted in the deaths of 2,000 Israelis and 63,000 Palestinians according to official figures, although this does not include many others missing under rubble or those who have died from starvation.

Barry Coates said: “We can all see evidence of Palestinians being killed trying to get food for their starving children. The companies supporting the weapons, ammunition, bulldozers and technology need to be held to account for their actions. They should not be benefiting from our investment.”

Global Weapons Industry Boom Drives Investment Returns

The surge in New Zealand weapons investments reflects a broader global boom in the defence industry driven by multiple major conflicts. The S&P Aerospace & Defence Industry has seen extraordinary growth with a 16.5% increase in the past year alone and a staggering 307% growth over the past decade.

This growth has been accelerated by Russia’s invasion of Ukraine on February 24, 2022, as well as internal conflicts within countries and regional tensions worldwide. Weapons companies have recorded higher short term profits, leading to huge investment increases from KiwiSaver and investment providers chasing higher returns.

The Values Gap: 80% Opposition vs Growing Investment

The findings reveal a stark disconnect between New Zealanders’ stated values and where their retirement savings are actually invested. Research shows that 80% of New Zealanders want to avoid investing in weapons companies through their KiwiSaver or investment funds. Yet investments in this sector continue to surge.

This gap highlights a fundamental challenge in the KiwiSaver system. Many New Zealanders may be unknowingly funding companies involved in conflicts, through their retirement savings, even though they personally oppose that use of their funds. Few if any KiwiSaver providers have asked their customers if they agree to more of their savings being used for investments linked to civilian deaths and human rights violations on a massive scale.

Barry Coates explained: “When Kiwis go online to see Mindful Money’s free disclosure of their investments, many are shocked to find they are invested in issues such as weapons. A typical reaction is “I didn’t sign up for this.” They can and should challenge their fund providers. Or, if they are not satisfied, they can use the Mindful Money website to find a fund that does not invest in weapons.”

Managed Funds Show Similar Patterns

The weapons investment surge isn’t limited to KiwiSaver funds. The analysis reveals that managed fund investments in weapons grew to $509.2 million by March 2025. Firearms companies increased by 64%, while military weapons investments in managed funds grew by 24% over the previous year. This shows the trend toward increasing weapons investments spans across New Zealand’s broader investment landscape.

Barry Coates pointed out: “Many Kiwis recognise that weapons are necessary for defence, but they don’t want their savings supporting weapons companies that indiscriminately sell their weapons to whoever will pay. All too often weapons from major NATO suppliers end up being used in conflicts where human rights are violated.”

Walmart Leads Firearms Investment Surge

KiwiSaver investment in companies producing and selling firearms has more than doubled, with a 110% increase. This is despite heightened awareness amongst the New Zealand public about the dangers of weapons proliferation in the wake of the Christchurch Mosque shootings.

The most dramatic individual company increase involves Walmart, where New Zealand KiwiSaver investment reached $115.8 million – representing a massive 144% increase over the year and 40% growth in just six months. While primarily a general merchandise retailer, Walmart sells shotguns, rifles, ammunition, and firearm components like scopes at stores across the United States.

Walmart has made progress in the wake of widespread concern over mass shootings in the US. They have raised the minimum age for firearm purchases to 21, stopped selling handguns and certain rifles like the AR-15, and no longer offer ammunition for military-style weapons. However, they continue to sell other weapons alongside food, clothing and hardware items.

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