NZ academics push pension fund to divest from Israel
More than 700 New Zealand academics have signed a letter urging UniSaver, the national university pension fund, to divest from companies connected to Israel’s defence sector — a move supporters say is an “ethical duty” and critics call “a political crusade.”
Dr David Cumin
The open letter, organised by a group called University Workers for Palestine (UW4P), claims UniSaver’s investments make members “complicit in genocide” in Gaza. The group names Elbit Systems, Caterpillar, and Palantir among the companies it wants removed from the portfolio, citing their alleged role in “Israel’s occupation and war crimes.”
UniSaver Rejects Bespoke Divestment Demands
In a response reported by Scoop and The Spinoff, UniSaver said its default investment strategy “does not make bespoke exclusions” for particular groups of members.
The fund, which manages more than NZ$3 billion in retirement savings, said creating separate mandates to reflect specific political or ethical concerns would raise costs for all members.
UniSaver’s exposure to Israeli-related firms represents less than 0.1% of its total holdings.
Accusations of Double Standards
Opponents of the campaign say the pressure to divest from Israel reflects selective moral outrage rather than genuine ethical consistency.
Dr David Cumin of the Israel Institute of New Zealand told J-Wire the campaign “has little to do with human rights and everything to do with political ideology.”
“These same academics aren’t demanding divestment from China, Iran, or Russia — all of which commit documented atrocities,” he said. “Targeting Israel alone exposes the double standard at play.”
A Broader Trend of Academic Activism
The call for divestment comes amid growing campus activism around the Israel–Hamas conflict. Since the 7 October 2023 Hamas attacks on Israel, New Zealand universities have hosted rallies and petitions supporting the Boycott, Divestment, and Sanctions (BDS) movement.
Critics say this wave of activism risks eroding academic neutrality and alienating Jewish staff and students.
“Turning pension schemes into political weapons is part of a broader pattern,” one senior lecturer told J-Wire on condition of anonymity. “It’s less about financial ethics and more about importing overseas culture wars into our institutions.”
Global Context
Similar divestment debates have emerged internationally. University pension funds in the UK, US, and Australia have faced pressure to withdraw investments linked to Israel, with financial regulators warning that politicising retirement funds could breach fiduciary duties.
UW4P describes its campaign as part of a “global movement for Palestinian liberation” and has previously called for New Zealand universities to cut academic ties with Israeli institutions.
What Happens Next
UniSaver has not announced any further review of its investment policy. The fund’s statement says its trustees “take members’ concerns seriously” but must balance ethical considerations with “legal and fiduciary obligations.”
For now, it appears UniSaver will hold its course — leaving the debate over what constitutes “ethical investment” firmly in the public sphere.
