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Mike's Minute: KiwiSaver reality vs ideology · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from Newstalk sed B. Follow
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• 0:16
  Speaker 2: Given the issues around key, we say we're got to
• 0:18
  Speaker 2: talk to you about this. So this Kei We saber
• 0:21
  Speaker 2: business and miracle any of us are saving anything to
• 0:23
  Speaker 2: become remotely independent in retirement. Last week we told you
• 0:26
  Speaker 2: about the morning Star rankings, right, how the biggest operator
• 0:28
  Speaker 2: in the market was performing so poorly. And now we
• 0:30
  Speaker 2: have yet another cracket where the money is actually being invested.
• 0:33
  Speaker 2: Group called Mindful Money is upset over the increase in
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  Speaker 2: funds going to fossil fuel producers. We have apparently a
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  Speaker 2: twenty percent increase in the last six months. That's despite
• 0:43
  Speaker 2: the amount of new money flowing into kei we savers
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  Speaker 2: only seven percent. Now, Mindful Money is clearly of the
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  Speaker 2: view that the whole transition away from fossil fuels is
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  Speaker 2: still an urgent and present thing, when clearly it is not.
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  Speaker 2: What we have here is a clash of reality vi ideology.
• 0:58
  Speaker 2: The reality is Keiwi saver funds look for returns right.
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  Speaker 2: The ideology is that no matter how unrealistic it is
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  Speaker 2: to run the world on sun and when we still
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  Speaker 2: need to sacrifice even more to get there. If there's
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  Speaker 2: been one crushing realization this past year or so around
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  Speaker 2: that it is the simple truth that the transition to
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  Speaker 2: renewables has been found out and badly. Genesis have half
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  Speaker 2: a million tons of coal standing by for this winter
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  Speaker 2: to keep the lights on. They have another half million
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  Speaker 2: tons on order, with a backup order of another two
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  Speaker 2: hundred thousand tons. Someone minds that coal. That's good business.
• 1:29
  Speaker 2: Good business pays dividends. And don't even look if you
• 1:32
  Speaker 2: hate coal at India and China, coal is booming. Doesn't
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  Speaker 2: make it nice or palatable, but it's real. And investment
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  Speaker 2: is about reality where in a time I think where
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  Speaker 2: the cold hard truth of what we thought was going
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  Speaker 2: to be easy isn't. It might not even turn out
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  Speaker 2: to be that real. The last thing we need a
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  Speaker 2: quisaber funds playing dumb games like the banks and looking
• 1:51
  Speaker 2: to deny legitimate activity the financial lifeblood it needs to
• 1:55
  Speaker 2: produce goods and services that people actually want. What we
• 1:58
  Speaker 2: want in kwisabor is a pull of money that grows
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  Speaker 2: that happens by investing in relevant activities that turn a
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  Speaker 2: dollar and pay a dividend. Moral indignation doesn't fund retirement.
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