Over half of people apathetic to where KiwiSaver invested

Last year there was a huge backlash from the public after revelations many KiwiSaver funds invested in tobacco companies and controversial weapons makers. Picture / 123rf

Over half of KiwiSavers are apathetic as to where their money is invested, research suggests.

A survey of 1000 people by Westpac has revealed 40 per cent don't care where their money is invested and a further 16 per cent don't want to know.

Simon Power, Westpac New Zealand's general manager of consumer banking and wealth,
said the figures were surprising.

"It did surprise me. But I also think as organisations like ours become more focused on doing the right thing...more information will become available."

Power said KiwiSaver was still maturing and education around what providers invest into was still bedding in.

Last year there was a huge backlash from the public after the Herald and RNZ revealed many KiwiSaver funds invested in tobacco companies and controversial weapons makers.

Simon Power, Westpac New Zealand's general manager of consumer banking and wealth. Picture / Dean Purcell.

Many providers moved quickly to exclude the investments.

Westpac has just implemented its responsible investment strategy which will integrate environmental, social and governance (ESG) factors into its KiwiSaver decision-making process.

Power said it didn't want to rush to implement restrictions without thinking it through.

"It has taken a while. We wanted to broaden it beyond just removal."

The bank has taken out tobacco and controversial investments as well as those in whaling companies.

But it will also use its investment weight to influence companies its invests in.

Westpac's research revealed 41 per cent of respondents preferred to have their money in a fund which invests in companies making a positive environmental or social contribution.

Fourteen per cent disagreed with that approach, while 45 per cent said they were not concerned.

Women and adults under 35 years of age were more likely to agree that they would prefer to invest in companies that make a positive environmental or social contribution.

Power said the demographics indicated interest in responsible investment was going to be an issue of increasing importance.

But the views were more split when it came to whether investing in companies that make a positive environmental or social contribution was more important than the KiwiSaver rate of return.

Only 24 per cent agreed with that idea while 31 per cent didn't agree and a further 45 per cent didn't have an opinion on it.