Cutting Off Finance For Putin’s War

Mindful Money has today released an analysis showing which New Zealand retail investment funds are invested in Russian government bonds and major companies.

This adds to the list covering all KiwiSaver funds and a list of the funds that have sold off their holdings over the past five months.

New Zealanders have been shocked to find out that some of their hard-earned savings are invested in government bonds issued by the Putin regime or in companies linked with the Kremlin.

Barry Coates, CEO of Mindful Money commented: “Kiwis do not expect their KiwiSaver or investment funds to be invested in companies that are financing Putin’s invasion of Ukraine. These funds should sell their investments - divest now.”

People around the world are mobilising against Putin and the Russian oligarchs. It is helping to de-legitimise Putin’s aggression and build pressure for regime change. Collective global action to divest is driving down the share price of companies, the value of Russian bonds and the exchange rate. On the London Stock Exchange, Russian shares have lost over US$450 billion in value.”

Mindful Money’s analysis showed hundreds of KiwiSaver and retail investment funds held those investments as recently as five months ago. New Zealand investments totalled over $100 million. That was a time when Putin had already amassed troops on Ukraine’s border.

The value of those investments has now fallen by 90-99% on the London Stock Exchange. The longer the funds left it to divest, the greater their losses. Many funds have still not sold those investments (divested).

Barry Coates added: “These investments in the Russian government and major companies have not only contributed to massive human suffering, but they have been shockingly bad financial investments. Kiwi investors expect better from their investment providers.”

“Most New Zealanders didn’t sign up to investments that support Putin’s war mongering when they opened a KiwiSaver account. Nor did they sign up to losing money on those investments.”

The irony is that most KiwiSaver and investment funds in New Zealand claim to be managing Environmental Social and Governance (ESG) risks.

Barry Coates continued: “If funds really were managing ESG risks, surely they would have sold off their investments in Russian government bonds, Russian state-owned banks and companies and other big companies aligned to the Putin regime.”

“Beware of greenwash when funds say they are responsible investors. Members of the public should not believe all of the marketing claims they see.”

“There are now choices. Ethical funds with high standards are available in New Zealand. It is quick and easy to do research before investing. Mindful Money is a charity that provides a free service for people who want to know what companies are in the KiwiSaver or investment fund.”

Barry Coates is CEO of Mindful Money www.mindfulmoney.nz

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