May 2018 - Christian Kiwisaver Scheme
Ethical at heart

Ethical at heart

Welcome to the first edition of the quarterly newsletter under the Christian KiwiSaver Scheme banner.

As you know, in March we relaunched our KiwiSaver scheme with a new name. Underneath the new name, there are three simple words: ethical at heart. We chose these words because ethics run through everything we do, not just how we invest your money. We apply Christian values to the way we conduct our business and interact with you, our members, and others. It’s the way we’ve always done it.

As Christians, we want to be good stewards of the resources we have been given. In the Bible, stewardship is interpreted as a concept which goes beyond financial management, it’s also about the good we do for others. While making profits is acceptable and necessary, it should not be at any expense, for example through dishonesty, theft, monopoly or the exploitation of the poor. Our mission at Christian KiwiSaver Scheme is to try and ‘do good’ with your money – seeking healthy long-term returns whilst avoiding certain industries that would generally be inconsistent with a Christian worldview, and investing positively in others. We’ve just uploaded a short video on to our website of me explaining what it is to make investment choices that resonate with what we believe.

The quarter ended March was an interesting one. In our last newsletter, we heralded the long overdue return of volatility to the markets. Volatility between quarters, including negative returns, is normal and not a time to panic. The three Funds all returned positive returns for the year ending 31 March 2018. There’s more on this below.

Later in May, we will be sending you your personal annual statement for the year ended 31 March 2018. You can also log-in to your account on the Scheme’s website to check your account details.

Thank you again for your ongoing support of Christian KiwiSaver Scheme!

Mark Wilcox
Chief Executive

Investment returns to 31 March 2018

Investment returns to 31 March 2018

Returns over one, three and five years were all positive. However, in the latest quarter investors were reminded that returns are not always positive. The three-month returns were affected by many things but largely concerns about international trade, growth and interest rates. Where will the trade tensions between nations lead? What might they do to growth? Do current interest rates reflect the expected outcome?

These concerns led to some large share price movements in the quarter. Despite the ongoing uncertainties we remain cautiously invested (across each of the Income, Balanced and Growth Funds). By cautious we mean invested in assets where we expect to get a fair return and the capital back over the long haul.

Investment returns at 31 March 2018, before fees and tax:

3 Months 1 Year (p.a.) 3 years (p.a.) 5 years (p.a.)
Income Fund 0.7% 4.0% 4.2% 4.6%
Balanced Fund -1.0% 6.2% 7.1% 8.0%
Growth Fund -1.7% 7.6% 8.7% 9.8%

Are you missing out on the free KiwiSaver money?

Are you missing out on the free KiwiSaver money?

Every year there are some KiwiSaver members, including members of the Christian KiwiSaver Scheme, missing out on receiving the Government’s free KiwiSaver money. That is like flushing money down the drain!

The Government paid $697 million, yes that’s $697 million, to KiwiSaver members accounts in 2017. Of this just under $0.5 million was paid to Christian KiwiSaver Scheme members. Did you get your share of this? Do you know how much you can get?

How much can I get?

The Government pays 50c for every $1 you pay in, but there is a limit. The Government’s money is credited to your KiwiSaver account. To get the maximum amount of $521.43 from the Government, you need to pay at least $1,042.86 each year. This equates to $20 a week. Here are some examples of how this works:

Your personal contributions Money from Government
Weekly Annual Annual
Over $20 Over $1,042.86 $521.43 max
$20 $1,042.86 $521.43 max
$15 $781.14 $390.57
$10 $521.43 $260.71
$5 $260.71 $130.35

If you are an employee and earn $34,762 p.a. or more, and contribute the minimum 3% of your pay to KiwiSaver then you’ll qualify for the maximum without having to do anything else.

If you want to receive the maximum amount for the year ending 30 June 2018 year then you can make a top-up contribution if you wish to do so. But this needs to be done before the end of June 2018.

Who can get this free money?

The Government will make an annual payment into your KiwiSaver account as long as you:

  1. have made personal contributions to your KiwiSaver account during the year;
  2. are aged between 18 and 65*; and
  3. were resident mainly in New Zealand.

*Eligibility for the Government’s money can extend beyond 65 if you have not been in KiwiSaver for five years; in which case it ceases after five years membership.

You can make personal contributions to your KiwiSaver account by deductions from your pay, or regular payments, or lump sum payments.

Do I need to be employed?

No, you don’t have to be in paid employment to get the free Government money. You just need to meet the three conditions above. If you’re not sure about your personal situation, contact us on 0508 738 473.

How does the money get into my KiwiSaver account?

In July each year, we claim the Government money (called a ‘member tax credit’ contribution) from the Government on behalf of every Christian KiwiSaver Scheme member who is eligible. The claim is based on the amount of personal contributions paid over the 12 months ending 30 June.

Not sure about your personal situation

You are welcome to contact us to check on your situation, or you can log-in to your member section of the Christian KiwiSaver Scheme website to access your personal information.

Is it worth contributing to get this free money?

In our opinion yes.

Once this free money from the Government is in your account it is then invested on your behalf. Small amounts can add up to a lot over time – see the example in the table below:

EXAMPLE
1 year After 5 years After 10 years After 20 years
Personal contributions 1,042.86 5,214.30 10,428.60 20,857.20
Money from Government 521.43 max 2,607.15 5,214.30 10,428.60
Total $1,464.29 $7,821.45 $15,642.90 $31,285.80

Thinking about entering the property market?

Thinking about entering the property market?

Since 1973 The New Zealand Anglican Church Pension Board has been offering mortgage finance. We offer competitive interest rates to Christian KiwiSaver Scheme members and Christians of all denominations. Our regular rates are 97.5% of the averaged rates of the five major banks. We also offer special rates for mortgages over $100,000.

We offer both table and interest-only mortgages. Finance is also available for new builds. We require a 20% deposit, regardless of whether it is owner-occupied or an investment property.

Returns earned from mortgages are put back into the Board’s funds to serve our Christian mission, not into shareholder’s pockets like at a bank. The returns also form part of the investment portfolio for Christian KiwiSaver Scheme.

The staff at the Board are here to help you with any questions you might have regarding your mortgage or potential finance. Customer service is one of our strengths.

Contact us about providing finance for your new property today!