Chris | Christian Kiwisaver Scheme

Investment Knowhow – August 2025 in Review

by Chris | 1 Sep, 2025 | General, Investment, KiwiSaver

Welcome to our monthly investment catch up. In this edition we discuss what went well in the markets last month, what captured the attention of our investment team, and we share insights into some of the actions the investment team took in the portfolios.

What went well in August?

Interest rate cut boosted optimism – The Reserve Bank reduced the Official Cash Rate to 3.00% in August, helping with mortgages, loans, and overall confidence in the economy.
NZ share market showed modest gains – The NZX 50 rose 0.8% for the month, reflecting cautious optimism among KiwiSaver members.
Currency exchange rates showed some stability – The New Zealand dollar held relatively steady against major currencies, reducing uncertainty for imports, exports, and offshore investments.
Global trade showed tentative recovery – Demand in Asia improved, but global trade remains fragile due to tariff tensions.
Global share markets rose – Gains in Europe and Japan helped investors grow their overseas investments, despite mixed performance in the US.

What captured our attention?

China’s economy slowed – Weaker growth in China reduced demand for New Zealand exports like dairy, meat, and logs.
Fuel and food costs stayed high – Elevated oil and gas prices, along with persistently costly groceries, kept pressure on inflation and household budgets.
US–China trade tensions – Ongoing disputes between the two largest economies unsettled global markets and affected NZ exporters.
Australian economy cooled – As New Zealand’s largest trading partner, slower growth in Australia raised concerns about the potential spillover effects on our own economy.
Longer term bond yields stayed high – Rising yields have reduced the value of existing bonds, which can lower returns for conservative funds.

Market Commentary.

August was a month of mixed results for investors. Global share markets mostly held firm, with US tech and AI companies continued to outperform. However, higher bond yields caused some ups and downs, so not all parts of the market moved in the same direction.

Emerging markets were uneven. Slower growth in China and ongoing trade tensions with the US made it harder for global markets and New Zealand exporters. Some parts of Asia’s technology sector performed well, providing bright spots. Here in New Zealand, the NZX 50 rose modestly, supported by solid local company results and improving investor confidence.

Bond yields stayed high, which lowered the value of existing bonds and affected more conservative KiwiSaver funds. Commodity prices were mixed: energy costs spiked at times, increasing costs for households and businesses, while dairy and other exports were slightly softer due to lower global demand.

Investors are staying cautious but engaged. Many are watching developments in China, Australia, and the US, alongside inflation trends and company earnings. The Reserve Bank’s recent rate cut has given a boost to confidence, but uncertainties remain, particularly around energy costs and global trade.

Looking ahead, August’s mixed results show why it’s important to understand the mix of assets in your KiwiSaver fund, so you know how your investments may react to global and local developments.

What this means for your portfolio.

This month, our investment team sold selected New Zealand shares that had performed well but now appeared overvalued relative to our assessment of their true worth. This was a positive move for clients, as it allowed us to lock in past gains and reduce the potential risk of future price declines in those shares.

One of the key strengths of active management is flexibility. Rather than holding a fixed equities portfolio, we actively monitor market trends, company performance, and broader economic conditions. When we think a share is overpriced or the risk is too high, we act to adjust our holdings. This helps us adapt to changing circumstances and move capital toward opportunities that better support our long-term goals for members.

During the month, we held our quarterly Investment Committee meeting. Our Investment Committee helps ensure our decisions are well-informed, balanced, and aligned with the long-term goals of each fund. It brings together a separate set of experienced voices to review our approach, assess risks, and guide strategy. For investors, this means greater confidence that their money is being managed thoughtfully, with oversight and accountability. The Committee also helps maintain consistency and values-based decision-making, especially when navigating complex or changing economic conditions.

Overall, these actions reflect our commitment to actively managing your portfolio with care, discipline, and a long-term focus.

The New Zealand Anglican Church Pension Board trading as Anglican Financial Care is the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund and The New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available on the Documents page of the AFC website (Pension Fund and The Retire Fund) and https://christiankiwisaver.nz/documents/ (Christian KiwiSaver Scheme).

Giving Our Young People a Strong Financial Start – Without Sacrificing Our Own Security

by Chris | 1 Sep, 2025 | Financial Planning, General, KiwiSaver

We all want the best for our children, nieces, nephews, and young people we care about. Watching them grow from toddlers to teens to independent adults is one of life’s greatest joys, but it’s no secret that the journey can be expensive. While we wouldn’t trade the experience for anything, there’s a fine balance between giving them a great start and protecting our own financial wellbeing.

So how do we support their future without putting undue pressure on our own finances? Depending on the age of your young ones, we have a simple strategy across the ages. These small steps don’t require deep pockets, and they’ll ease the financial pressure on you later on too.

👶 Under 5s
We can all get caught up buying endless toys, which are fun for a while, but then break or get passed on. Instead, consider starting a “parent and grandparent fund.”

Open a savings account and invite loved ones to contribute a small monthly amount. Over time, this can grow into a meaningful fund for school costs, a laptop, or even university fees. If you’re able, set up a KiwiSaver account for them and put in some money each month, for a powerful head start towards their first home.

🧒 Ages 10–14
Kids at this age crave independence. Channel that energy by encouraging small chores for pocket money. Let them help set the rates, to teach negotiation, build a good savings habit, and understand the value of effort. They’ll begin to understand that money doesn’t just “appear,” and that their time and skills have worth. In the years ahead, they’ll be grateful they began early and had the freedom to make thoughtful spending choices.

👦 Ages 14–16
Now’s the time to support their first job. Maybe dishwashing at a café or helping a neighbour with gardening. These experiences build confidence, teach workplace etiquette, and help them understand employment basics like contracts and pay. Early work experience also boosts their chances of landing jobs after school or uni. The’ll also love the ‘pay rise’ from their previous pocket money!

🧑 Over 16s
Before they leave school, help them master the basics of money management. Help them set up two bank accounts for themselves: one for spending, one for saving. Encourage goals like keeping a few hundred dollars in the spending account as a buffer, and to transfer a small amount to savings each month. Teach them to compare interest rates and understand compound growth. If they want a credit card, and you believe they are ready for one, start with a low limit and stress the importance of paying it off monthly.

💡 The Long View
These small steps may seem modest now, but they compound over time. By the time your young person is ready to leave home, they’ll be equipped with financial confidence, discipline, and a sense of independence, all without compromising your own financial future.

Let’s raise financially savvy young adults, together.

The New Zealand Anglican Church Pension Board trading as Anglican Financial Care is the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund and The New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available on the Documents page of the AFC website (Pension Fund and The Retire Fund) and https://christiankiwisaver.nz/documents/ (Christian KiwiSaver Scheme).

Investment Knowhow – July in Review

by Chris | 11 Aug, 2025 | Investment, KiwiSaver

Welcome to our monthly investment catch up. In this edition we discuss what when well in the markets last month, what captured the attention of our investment team, and we share insights into some of the actions the investment team took in the portfolios.

What went well in July?

🇳🇿 NZ share market moved higher – The NZX 50 rose during July, with several large companies in healthcare and utilities helping to lift the index.
🎢 Economy performed better than expected – GDP growth came in stronger than forecast, lifting confidence in the outlook for jobs and spending.
🌍 Exports remained strong – Dairy, meat, kiwifruit and tourism earnings stayed healthy, supporting the wider economy.
US markets reached new highs – The S&P 500 and Nasdaq climbed to record levels, helped by strong technology earnings and optimism around AI. This boosted KiwiSaver funds with offshore shares.
Technology sector continued to perform – Global leaders like Microsoft, Meta and Nvidia delivered strong results, lifting global market sentiment.

What captured our attention?

⚖️ Reserve Bank’s next move – With inflation easing but still above the long term average, markets are watching closely to see if the RBNZ hints at any rate changes.
🌍 Impact of new U.S. tariffs – Any shifts in American trade policy could flow through to global markets, affecting NZ exporters and investment returns.
Strength of the U.S. dollar shifting — After earlier expectations of decline, the dollar is showing renewed strength. That matters for KiwiSaver investors with overseas exposure.
Oil price movements – Geopolitical tensions and OPEC supply changes could push fuel prices up, affecting inflation and consumer spending.
Investor sentiment – With markets at or near record highs in some regions, we’re watching whether confidence holds or starts to cool.

Market Commentary

Global share markets finished July on a positive note, with US indexes reaching new highs. This was mainly thanks to strong earnings from tech and AI companies, which lifted investor confidence. Early hopes for better trade relations helped too, although some late-month tariff announcements reminded everyone that risks remain.

Emerging markets also did well, supported by growth in Asian tech sectors. Here in New Zealand, the NZX 50 rose about 1.3%, following the global trend. The Reserve Bank held the Official Cash Rate steady at 3.25%, hinting that a future rate cut might be possible if inflation keeps easing.

Bond yields moved slightly lower, which helped fixed income returns. Commodity prices were mixed and energy stayed strong, but copper and some farm products fell due to softer demand forecasts.

Investors stayed optimistic overall but cautious. They’re watching company earnings closely and keeping an eye on any signals from central banks. Looking ahead, key things to watch are trade talks, economic data from the US and China, and any changes in interest rate policies.

With the economy showing both positives and uncertainties, we might see some market ups and downs in the coming weeks, but there are still good opportunities for investors willing to stay patient.

What this means for your portfolio?

This month, we increased protection on the portion of our portfolio invested in Australian dollar-denominated assets. Currency movements can have a meaningful impact on investment value, and the Australian dollar has faced increased volatility. By adding protection, such as currency hedging or reallocating risk, we aim to reduce the potential impact of unfavourable exchange rate changes. This helps preserve capital and provides clients with more stable and predictable investment outcomes.

Our current exposure to offshore assets, which are denominated in foreign currencies, remains well positioned. We’re comfortable with how these investments are performing and have made no changes to those allocations this month.

We also adjusted several holdings and allocated funds into term deposits, each chosen with specific maturity dates and interest rates to suit our strategy. These moves are based on ongoing analysis of interest rate trends and potential policy decisions, particularly from the Reserve Bank of New Zealand.

We regularly monitor our entire portfolio and remain flexible. When opportunities arise or risks shift, we’ll adjust the portfolio, whether that’s individual assets or the overall mix, to align with our clients’ goals.

The New Zealand Anglican Church Pension Board trading as Anglican Financial Care is the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund, and the New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available on the Documents page of the AFC website (Pension Fund and The Retire Fund) and https://www.christiankiwisaver.nz/documents/ (Christian KiwiSaver Scheme).

Is Your Life Reflecting What Truly Matters?

by Chris | 11 Aug, 2025 | Financial Planning, General, Life after 65

At any point in life, it’s natural to pause and question the rhythm of your days—how you spend your time, where your money goes, and whether those choices reflect your values. It’s easy to slip into autopilot, checking off tasks and chasing goals without asking: Is this the life I want to be building?

When you slow down long enough to ask that question, money inevitably enters the conversation. How you earn, spend, save, or give often mirrors deeper values and unconscious patterns. Understanding where your beliefs about money come from can be surprisingly empowering.

Money behaviours don’t emerge in a vacuum. They’re shaped by early experiences. Perhaps you witnessed financial hardship and vowed never to feel that stress again. Or maybe money was always available, and you came to see it as something that would never run out. These imprints influence how you make decisions today.

Exploring your money mindset isn’t about judgement, it’s about clarity. By uncovering the roots of your financial beliefs, you can reshape your relationship with money to better serve your life’s purpose.

A powerful read on this topic is The Soul of Money by Lynne Twist. She challenges the idea that fulfilment comes from endless abundance and introduces the concept of sufficiency, the quiet confidence that what you have is enough. That shift in mindset moves you from scarcity to purpose, making your spending a reflection of your values.

Ask yourself: If you won the lottery tomorrow, how would your life change? Would you need millions to be happy, or would a simpler sum bring the same joy and peace? If your answer leans toward “life would mostly stay the same, just with more choices,” you’re already aligning your values with your financial reality.

This perspective is valuable at any age, from young adults forging their path to retirees downsizing with intention. When you shift focus from chasing more to choosing what matters, life begins to feel lighter. You stop reacting and start creating.

This isn’t just financial advice, it’s life advice. Because meaning isn’t found in income brackets. It’s found in the quiet assurance that your choices, both with time and money, reflect what you truly care about.

The article above is for educational purposes only and is not financial advice. Please seek advice from a qualified financial adviser when making decisions about your financial situation.

The New Zealand Anglican Church Pension Board trading as Anglican Financial Care is the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund, and the New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available on the Documents page of the AFC website (Pension Fund and The Retire Fund) and https://www.christiankiwisaver.nz/documents/ (Christian KiwiSaver Scheme).

Budget 2025 and KiwiSaver: Commentary from Christian KiwiSaver Scheme

by Chris | 26 May, 2025 | KiwiSaver

The 2025 Budget announcements on changes to KiwiSaver invite us to reflect on how we prepare for the future.

Among the most significant shifts is the planned increase in the contribution rate from 3% to 3.5% initially, and to 4% by 2028. As the manager of Christian KiwiSaver Scheme, Anglican Financial Care supports this change. Even a small increase in regular savings can make a meaningful difference over time, especially when invested wisely. This is about fostering financial resilience.

At the same time, we know many families are feeling the pressure of rising living costs. For those doing it tough, it’s important to know that while the contribution rate is increasing, individuals are still able to choose to stay at the 3% contribution level. KiwiSaver remains flexible, and although making consistent contributions is best, you can choose to suspend them for 12 months (or more). Our helpful and friendly Christian KiwiSaver Scheme team can assist our members to make any of these changes.

Back to the good points with the Budget announcements, we’re especially encouraged by the decision to extend the KiwiSaver contribution rules to working 16 and 17 year-olds. Getting young people to start saving early will bear fruit across their lifetime, building a stronger foundation for their future. But again, for those struggling with their day to day needs, the same flexibility described above applies to these young workers.

There are also going to be adjustments to the Government’s KiwiSaver contribution, down from about $520 per year to $260 (and this will only be available to those earning less than $180,000). While we are sorry to see the Government contribution being reduced, it was always, frankly, a ‘gift’. The heart of KiwiSaver remains in each person’s ongoing effort to save, supported by employers and by the long-term investment strategies of scheme managers.

At Anglican Financial Care, we remain committed to supporting our members through whatever changes lie ahead.

Christian KiwiSaver Scheme is managed and issued by The New Zealand Anglican Church Pension Board (trading as Anglican Financial Care). The Product Disclosure Statement can be found here Documents | Christian KiwiSaver Scheme.

Making the most of your KiwiSaver savings after 65

by Chris | 21 Mar, 2025 | Financial Planning

Turning 65 is an important milestone, not just in life but also in your financial journey. For Christian KiwiSaver Scheme members, it marks the point where you can access your retirement savings. However, this doesn’t mean your KiwiSaver membership has to come to an end.

Many members choose to keep their accounts open beyond 65, continuing to manage their savings in a way that aligns with their long-term financial needs. At Anglican Financial Care, we know that planning for retirement is personal, which is why we send a letter to our Christian KiwiSaver Scheme members the month before they turn 65. This is an opportunity to start the conversation about your options, ensuring you have the information you need to make decisions that are right for you.

Here are the options available to you once you reach 65:

Keeping your account open

Reaching 65 does not mean you have to close your Christian KiwiSaver Scheme account. Many of our members choose to keep their funds invested beyond this age, giving them the flexibility to access their savings when needed while continuing to benefit from our faith-aligned investment approach.

Keeping your account open also allows you to continue adding to your savings, should you wish to do so. If you’re still working, you can continue your contributions to grow your balance further.

Making regular withdrawals

If you would like to supplement your retirement income while keeping your remaining savings invested, you can set up regular fortnightly or monthly withdrawals from your Christian KiwiSaver Scheme account. This option allows you to access your money gradually, while your remaining balance continues to work for you.

A $200 minimum applies to each regular withdrawal.
The minimum withdrawal amount may change in the future.

This approach can provide a steady stream of money while maintaining long-term investment potential.

Occasional one-off withdrawals

If you prefer more flexibility, you can make one-off withdrawals when needed. This option allows you to leave your savings invested while accessing funds at times when you need them – whether it’s for an unexpected expense, a special occasion, or a larger financial commitment.

A $1,000 minimum applies to each one-off withdrawal.

This option gives you the ability to manage your savings in a way that fits your lifestyle and financial needs.

Full withdrawal

If you decide to take out all of your savings, you can make a full withdrawal from your Christian KiwiSaver Scheme account. This means you will no longer be a member of KiwiSaver.

While some members choose this option, others prefer to leave their funds invested, ensuring they can access their savings gradually over time.

Making the right decision for you

Only you can decide how to manage your KiwiSaver savings after 65. Whether you continue investing, make partial withdrawals, or withdraw your full balance, it’s reassuring to know that Christian KiwiSaver Scheme gives you flexibility in managing your retirement funds.

As you approach this important milestone, we’re here to help. Our team at Anglican Financial Care is committed to supporting you in making informed decisions that align with your needs. If you have any questions about your options, don’t hesitate to get in touch.