Jamuel Enriquez, Author at Christian Kiwisaver Scheme

Investing ethically since 1972

by Jamuel Enriquez | 2 Aug, 2022 | Investment, KiwiSaver

A KiwiSaver Scheme that invests ethically is important to many Kiwis. Christian KiwiSaver Scheme (CKS) has always had an ethical approach to its investments and is always seeking to participate in the good God is doing in the world.

In a recent survey, Consumer found that ethical investing is important to a large proportion of their respondents, “our survey found 45% said they wanted a fund that provides a good return and invests responsibly – both were equally important.” (Birdsey, 2022)

CKS has followed a robust ethical investing approach since its establishment in 2007 (shortly after the Government introduced KiwiSaver). Our ethical investing approach is at the heart of our investment activity, but did you know that our approach has existed since long before KiwiSaver was even created in Aotearoa?

Anglican Financial Care (AFC), the fund manager of CKS, has invested ethically since its inception in 1972 – that’s 50 years of investing with an ethical approach. In a sense, AFC boldly pioneered ethical investing in Aotearoa New Zealand long before other KiwiSaver Schemes. Other fund managers only started ethical investing in recent years.

As an overview, here are the sectors which our Ethical Investment Policy addresses:

Alcohol
Animal Welfare
Armaments and defence
Fossil fuels
Gambling
Pornography
Tobacco

To read more about our thoughtful approach to ethical investing please read our Ethical Investment Policy here.

We believe God is active in restoring the world and it is important for us to express this by way of investing ethically, while being responsible with your finances.

“And whatever you do, whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father through him.”

Colossians 3:17 (NIV)

Notes

Birdsey, N. (2022, June 8). KiwiSaver satisfaction survey 2022. Consumer. Retrieved from https://www.consumer.org.nz

Investment Returns at 31 March 2022

by Jamuel Enriquez | 12 May, 2022 | Investment

Investment returns (before tax and fees) for the quarter ending 31 March 2022 are:

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The last quarter was all about the increase in uncertainty. Markets dislike when there is an increase in doubt. Uncertainties increased with the dreadful Russian invasion of Ukraine and with regard to the future level of interest rates. The outbreak of conflict only further inflamed inflation fears. Many central banks around the world (Japan excepted) raised their official overnight cash rate and inferred that further increases were likely. Talk of the unwind of policies that were implemented to counter the expected COVID impacts also spooked some market participants. All of this increased uncertainty led to falls in both share and bond prices (bond prices fell as interest rates rose) over the quarter.

What happens now very much depends on expectations with regards to the Ukraine situation and inflation. Central banks are expected to keep raising rates in an effort to control inflation. Inflation can have a nasty effect on the economy. The question then may become whether central banks have raised interest rates too far or too fast. Will this (raising of interest rates) lead to a slowdown in the economy, and by how much?

The International Monetary Fund (IMF) has downgraded its global growth forecast to 3.6% (from 4.4%) in response to the Ukraine situation and the lockdowns in China. The 2023 projection was lowered to 3.6%, from 3.8%. The IMF has also bumped up its inflation forecast for advanced economies to 5.7% and for emerging and developing countries to 8.7%.

As readers will be aware we have been cautious in recent times as we believed both share and bond prices may have been too high given the uncertainties that existed. However, we have and still remain cautiously invested and diversified. In this environment we held and continue to hold a higher than normal cash level. This cash will, and has been used as and when we see opportunities.

A fierce storm (Mark 4:35)

by Jamuel Enriquez | 12 May, 2022 | KiwiSaver

It is typical for investments to go through changes, much like the fierce waters the disciples experienced in Mark 4:35 before Jesus calmed the storm. These different changes could be exciting, but can also cause a little uncertainty.

KiwiSaver is a savings scheme designed to help set you up for your retirement, as well as provide other member benefits such as helping you purchase your first home if you are eligible. For most people KiwiSaver is a long-term investment or a product you can invest in even after retirement.

It is important that whatever weather event you are experiencing, you focus on the long-term goals you have for your KiwiSaver. Remembering these goals may help avoid making snap decisions. It may also be useful not to look at your balance daily, bearing in mind that KiwiSaver is a long-term investment.

Some of the goals you have for your KiwiSaver may have been the initial reason you chose the type of fund you are currently invested in (based on your risk tolerance). Understanding the reason you chose that fund may help determine whether your fund is still right for you.

In the past, we have written articles about KiwiSaver that may help inform you regardless of what weather event you are in:
• Different KiwiSaver scenarios for different life stages
• What is ‘investment risk’?
• Quick tips for your KiwiSaver

Here at Christian KiwiSaver Scheme we strive to help you feel supported as you think about your financial wellbeing. If you require professional financial advice for your situation, we always recommend you speak with an Authorised Financial Advisor.

Investment Returns at 31 December 2021

by Jamuel Enriquez | 9 Feb, 2022 | Investment

Investment returns (before tax and fees) for the quarter ending 31 December 2021 are:

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A positive quarter for funds, particularly those with exposure to shares. Long term returns were good across all the funds. COVID news continued to dominate but despite the markets being concerned at times shares carried on with their upward track, with some share performances in international equity markets performing strongly. Fixed interest (bonds) investments however were mixed with concerns around the inflation and interest rate outlook holding back returns in that sector.

Investment Outlook for 2022

by Jamuel Enriquez | 9 Feb, 2022 | Investment

The themes that may dominate in the next year (a continuation from late 2021) are inflation, interest rates and growth. Growth enhancing policies may recede, spare capacity in the economy is minimal and the re-opening growth surge is probably over. There is a lot of uncertainty as to how supply issues and labour shortages (and how long each may last) will affect outcomes. A fear is that labour shortages could result in wage growth which then results in higher inflation. These and other factors may determine how high inflation goes and how long it persists.

The inflation outlook may influence how quickly Government Central Banks raise official cash rates. Many expect major Central Banks to increase their respective cash rates this year. The level of interest rates in turn could impact on share prices (and other asset prices). We believe how far and fast interest rates rise will have a significant bearing on returns. Concerns around COVID continue to linger. Any geo-political developments could also surprise and affect returns.

The broad theme to start 2022 appears to be one of more optimism in the global economic recovery. Some research suggests the Omicron variant is much less deadly than Delta, giving markets confidence that the hit to growth from recently imposed COVID restrictions in some places (and more restrained consumer behaviour more generally) will be fleeting and the recovery will resume after a few months of disruption. There is little doubt though that whatever eventuates the markets could fluctuate, wildly at times. Rest assured, as we have mentioned previously, we are doing our best in these times of heightened uncertainty. The portfolios remain diverse and we focus on investments that we believe are more at the quality end of the spectrum.

Anglican Financial Care Celebrates 50 years

by Jamuel Enriquez | 9 Feb, 2022 | General

Photo of the Board meeting in Wellington in March 1992

This year, Anglican Financial Care (AFC) celebrates its 50th birthday. The 1972 General Synod of the Anglican Church approved a Church Canon to establish Anglican Financial Care, originally known as The New Zealand Anglican Church Pension Board (“Board”). The General Synod of the Anglican Church also approved the establishment of The New Zealand Anglican Church Pension Fund (“Pension Fund”).

Over the past 50 years, AFC has developed into a multi-faceted and professional organisation that provides a multitude of financial services to the Anglican Church and other Christian denominations, including the administration of three separate retirement savings schemes (Pension Fund, The Retire Fund and Christian KiwiSaver Scheme). AFC has also provided other financial services such as a welfare fund, a health fund, a supplementary support fund and mortgage finance.

Anglican Financial Care also provides ancillary services to the wider Church including the administration services for the Anglican Insurance Board and the Baptist Union Superannuation Scheme, as well as a role coordinating the Inter-Church Bureau (an inter-denominational body tasked with monitoring the impact of legislation on the wider Church’s affairs).

While our services have grown over time, our mission and purpose have remained the same. We hope to tell you more about our story over the coming year as we celebrate this amazing milestone. For now, if you would like to learn more about Anglican Financial Care click here. We are very proud to have served our members for 50 years and look forward to continuing to serve you in the years ahead!