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Investments in weapons companies by New Zealand KiwiSaver funds have jumped by more than 40 percent in the past year, reaching $392.4 million, according to new analysis from the charity Mindful Money.
In total, $900 million of New Zealanders’ savings is invested in weapons companies, including firms supplying the conflict in Gaza, the charity’s research found, despite annual survey data from the Voices of Aotearoa: Demand for Ethical Investment in New Zealand 2025 finding that 80 percent of New Zealand investors want to avoid funds that invest in weapons.
Few New Zealanders realise there is a direct connection between their savings and companies supplying weapons to conflict areas such as Gaza and Ukraine, the charity says, and the surge in investments reflects a broader global boom in the defence industry driven by multiple major conflicts.
The findings reveal a stark disconnect between New Zealanders’ stated values and where their retirement savings are actually invested. Although research shows that the majority of New Zealanders want to avoid investing in weapons companies through their KiwiSaver or investment funds, investments in this sector continue to surge.
The charity says 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.
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 percent, while military weapons investments in managed funds grew by 24 percent over the previous year. This shows the trend toward increasing weapons investments spans across New Zealand’s broader investment landscape, the charity says.
“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,” Barry Coates, Mindful Money Founder and ceo says.
Despite the concerning trends, the research identifies hope for values-based investors. Mindful Money has identified 36 weapons-free funds from 13 different KiwiSaver providers, offering alternatives for New Zealanders who want their retirement savings aligned with their ethical values.
New Zealanders concerned about weapons investments can check their specific KiwiSaver fund using Mindful Money’s free Fund Checker tool available on their website https://mindfulmoney.nz
The tool provides detailed analysis of individual fund holdings, and the Fund Finder suggests alternatives for those seeking investments aligned with their values.
In June, Mindful Money announced the winners of the fifth annual Ethical and Impact Investment Awards. These awards celebrate outstanding investors and individuals who have shown strong commitment and expertise in advancing sustainability and impact. The winner was Pathfinder Asset Management, with Generate KiwiSaver Highly Commended.
