New Zealanders’ savings are increasingly being invested in companies active in illegal Israeli settlements on occupied Palestinian territories, according to analysis from charity Mindful Money, as KiwiSaver and managed retail fund investments in these companies surge to $323 million.
The charity's data found investments in companies active in illegal Israeli settlements have increased nearly 99% from March 2024 to March 2025.
This comes as the UN Human Rights Office last Friday found 158 business enterprises from 11 countries are currently involved in activities in illegal Israeli settlements.
These activities include providing supplies and equipment that help maintain and construct illegal settlements, surveillance, polluting and dumping waste in Palestinian villages, and demolishing the homes of Palestinians.
Mindful Money's analysis, published on Monday, also comes after Foreign Minister Winston Peters announced at the UN General Assembly in New York over the weekend that New Zealand will not be recognising the State of Palestine at this time.
Mindful Money aims to provide transparency for New Zealanders when it comes to their KiwiSaver and other managed fund investments through research and website tools.
The analysis found KiwiSaver funds went up from $92,263,695.73 to $179,178,231.39 - this is a percentage change of 94.20%.
Managed funds jumped from $70,261,430.88 to $143,909,055.54 - a percentage change of 104.82%.
The total retail funds saw a shift from $162,525,126.61 to $323,087,286.93 - a 98.79% increase.
These changes were over a period from March 31, 2024 to March 31, 2025.
For this analysis, Mindful Money sources portfolio data from the Companies Office Disclose Register and then researches indirect investment in external funds to get a full picture of fund holdings.
The holdings are then matched with Mindful Money’s global database of companies of concern.
Mindful Money says identification of the companies comes from an analysis of a range of sources including: the UN Human Rights Council database of companies supporting illegal Israeli settlements in occupied Palestinian territories, the American Friends Service Committee and the UK-based Action on Armed Violence (AOVC) for companies supplying the conflict in Gaza.
The charity names Palantir, Motorola Solutions, Alstom SA, Caterpillar and Lockheed Martin as some of the largest companies with New Zealand KiwiSaver and retail fund investment.
Mindful Money says in a 2023 United Nations Human Rights Council Report, Motorola was identified as “supporting the maintenance and existence of these settlements”.
Other companies include Alstom which the charity says has been a major partner in Jerusalem Light Rail which is “a project that will help cement Israel’s hold on occupied East Jerusalem”.
Lockheed Martin, which is also listed, “supplies the Israeli government with a wide variety of weapons" that have targeted Palestinian civilians and lead to the destruction of homes and critical infrastructure, the charity says.
Mindful Money says there appears to be no direct financing from New Zealand investors towards weapons used by Hamas.
'Fund managers need to up their game on human rights'
Mindful Money's co-chief executive Kate Vennell says “New Zealand investors should be able to avoid investing in companies whose activities support this harm”.
“Fund managers need to up their game on human rights.”
The charity's other co-chief executive Barry Coates says: “Earlier this year, 91% of Kiwis said they want to avoid investing in companies that violate human rights.”
“Yet their KiwiSaver and investment funds are doing the opposite, ramping up the amount of investment in companies facilitating breaches of human rights in Palestine.”
Coates says over the past two years, Mindful Money has informed fund managers about the companies that are undertaking these activities and called for all KiwiSaver and managed funds to avoid investing in these companies.
However the charity says it noticed fund managers had been investing even more over the past year "to chase short term profits".
Coates says the data shows the increase in investment in these companies far exceeded the increase in their share price, showing there was a specific allocation of a larger share of the investment portfolio to these companies.
“The fact there’s been a major increase is surprising and disappointing.”
The charity says people could check their funds on its website and it now has a tag OPT (Occupied Palestinian Territories) for companies that invest in illegal Israeli settlements and/or provide weapons being used and sold in Gaza by the Israeli military.
Where the Government stands
In a statement over the weekend, Foreign Minister Winston Peters said there was a concern that “a focus on recognition, in the current circumstances, could complicate efforts to secure a ceasefire by pushing Israel and Hamas into even more intransigent positions”.
“New Zealand has long been a staunch advocate of the two-state solution and a defender of Palestinians’ right to self-determination.”
Peters said New Zealand remained committed to doing its part to alleviate the immense suffering in Gaza and would be providing $10 million more in humanitarian aid.
Prime Minister Christopher Luxon told reporters the conflict would not end by New Zealand recognising Palestinian statehood at this time.
“It will only end through a ceasefire reached through negotiation, dialogue, diplomacy and leadership, and that remains our focus."
New Zealand was “pro-peace” and neither “pro-Palestine nor pro-Israel”, he said.
"We oppose any actions by Israel to undermine the two-state solution, and will continue to call on the Israeli government to comply with international law.”
"We expect Israel to enable unfettered humanitarian aid into Gaza, and to end all illegal settlement activity and current military action,” Luxon said.
‘Wrong side of history’
The Green Party has called the decision not to recognise Palestinian statehood cowardly while Labour said it put New Zealand on the wrong side of history.
Labour foreign affairs spokesperson Peeni Henare said: “Recognition of Palestine and sanctions on Israel send a clear message to Israel and the world: New Zealand will not stand by while Israel disregards human life and dignity, and international law.
“Christopher Luxon has dragged his heels on this while his coalition partners squabbled and has ultimately made the wrong call. Gaza residents continue to deal with bombs, starvation, lack of medical care, and displacement every hour of the day.”
Greens co-leader Marama Davidson said “Palestine needs our action, and our Government needs to take a stand and send a clear message to Israel that the genocide needs to stop. The killing needs to stop”.
On social media platform X, Act leader David Seymour wrote he was proud the Government had shown independence in foreign policy.
“Without political hype, we have worked through the issues as a Coalition and come to the right position on a terrible situation where there are no easy options.”
New Zealand's decision is considered out of step with its partners as Australia, Canada and Britain all officially recognised Palestinian statehood over the weekend.
Currently, the State of Palestine is recognised as a sovereign state by 157 out of the 193 United Nations member states.
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