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by Jo Cheramie | 30 Jul, 2020 | Investment
What is responsible investing?
What is responsible investing and is it just another piece of jargon that is difficult to understand and bears no relation to our day to day life? At Christian KiwiSaver Scheme, we believe that responsible investing is an important foundation for choosing the investments that we undertake on behalf of our members.
Looking at it straightforwardly, responsible investing could be compared to shopping for eggs in the supermarket. When you find the eggs on the supermarket shelves, you are confronted by a range of different choices – bio organic eggs, paddock eggs, free-range, caged, cage-free, barn raised, etc. The selection is vast and comes with a range of prices to match your choice. So how do you choose? Would you buy solely on the price going for the cheapest eggs no matter what? Would you prefer organic eggs? Or perhaps you are concerned for the chicken’s welfare and would not select eggs from caged chickens?
On a personal level in the egg scenario, if animal welfare is an ethical concern for you and you respond by choosing free-range eggs, you could be considered to be behaving like a responsible investor.
On a broader level, when you (or your KiwiSaver provider on your behalf) are investing responsibly, you are considering investments which reflect your values and take into account how companies manage their responsibilities, for example in their dealings with the environment or the community.
You may recall either working for or hearing about, companies that were out to maximise their profit no matter the cost. However, over recent years, there has been a move to balance the interests of shareholders with other concerns such as social and environmental welfare.
There has been a big change in our supermarkets with plastic bags being replaced by reusable ones. There had been community concern about the effect that plastic bags were having on the environment due to the sheer numbers going into landfills and turning up in our waterways and oceans. This concern about the impact on our environment influenced the government to put laws in place to reduce the amount of plastic being used.
As a community, we have become interested in a variety of social and environmental issues, and this has translated into broader concerns about where KiwiSaver funds are invested. At Christian KiwiSaver Scheme we seek to avoid investments in products such as tobacco, guns and other arms manufacturing, gambling, and adult entertainment. How companies behave with regard to the environment, their employees and others, and the way they govern themselves are also things we think about when making investment decisions for our members.
Not already a member of Christian KiwiSaver Scheme? Join other like-minded Kiwi Christians growing their savings ethically today!
Membership of the Christian KiwiSaver Scheme is offered only to:
- employees of organisations whose primary activities are in our opinion Christian mission or ministry. This includes employees of charitable entities associated with or operating in the Christian Church, or employees of entities which we approve as having a Christian special character; and
- persons who express a Christian faith and have a commitment to Christian community involvement when applying (and their immediate family members and dependants).
Christian KiwiSaver Scheme is managed and issued by The New Zealand Anglican Church Pension Board (trading as Anglican Financial Care). The Product Disclosure Statement and Fund Updates are available under Documents.
by Jo Cheramie | 8 Aug, 2019 | General, Investment, KiwiSaver
Many of us have grown up with the stories of Winnie the Pooh. If we didn’t, some of us may have seen the recent movie called ‘Christopher Robin’ which re-introduces Winnie the Pooh to a wider audience.
Many of us would be surprised to know that Winnie the Pooh owned a gun in 100 Acre Wood. We would be puzzled as to why they would own guns in that wood as they don’t hunt, and they don’t have target practice. Yet, in one account of Winnie the Pooh’s exploits, there was a knock on the door of his tree. Winnie answered the door … with a gun in his hands.
When A. A. Milne started writing about Winnie the Pooh in 1926, it was a different time with a different attitude toward guns. Like climate change, guns and munitions have increasingly become something that people are concerned about.
After the attacks on the Al-Noor Mosque and the Linwood Islamic Centre in Christchurch earlier this year there has been a growing concern about whether New Zealand KiwiSaver providers have invested funds in arms or munitions. There are some providers that have invested in this industry. But the Christian KiwiSaver Scheme is not one of those; it is among a small number of KiwiSaver providers that provide ethical investments and excludes munitions.
In a recent Colmar Brunton survey, over 70 percent of respondents answered that it was important for them that their KiwiSaver money was not invested in weapons. The survey found that a lot of members didn’t know if their funds were invested in munitions at all.
In New Zealand, there are over 2.7 million people signed up with KiwiSaver. The New Zealand Herald quoted a 2018 Consumer survey finding that around seven out of 10 people wanted their money invested ethically. But only around 8,600 people had signed up to specifically targeted ethical investment funds. While some people may hesitate in investing in ethical funds as they may feel these funds give lower returns, some of the best companies in the current market are those that are the most sustainable companies – they look after the environment and their employees. So thinking seems to be changing among investors.
Remember you can log into your account and check which fund your money is invested in. Or, if you prefer, give us a call on (0508) 738 473.
Winnie the Pooh image from www.disneyclips.com
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by Jo Cheramie | 8 Aug, 2019 | General, Investment
Some of you are asking what’s a PIR and what’s the fuss about them? Your PIR is your Prescribed Investor Rate and this is the tax rate that applies to investment earnings in certain types of investments including KiwiSaver. Having the wrong PIR will cost you money.
There are three PIR rates: 10.5%, 17.5% and 28%. As a general rule if your taxable income is above $48,000 then your PIR should be 28%.
It’s important to have the correct PIR. If your PIR is too high then you will be paying more tax than you need to. We understand that Inland Revenue hasn’t been giving refunds in these situations. If your PIR is too low then you could be facing a tax bill.
Has Inland Revenue been in touch with you about your PIR? Earlier this year Inland Revenue identified 450,000 New Zealanders who they determined were on the wrong PIR. Inland Revenue has started contacting those who appeared to have a PIR that was too low and advising how much tax they owe.
Inland Revenue recently replaced their computer system and that means it can now check your PIR against your personal taxable income. Your PIR is based on your income. If your income changes (up or down), this might mean a change in your PIR. Your residency status can also affect your PIR.
A guide to calculating your PIR is available to help you.
You can log into your Christian KiwiSaver Scheme account and check your PIR. If you need to change your PIR then send us an email. If you’re not sure then you can phone us on 0508 738 473.
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by Jo Cheramie | 8 Aug, 2019 | KiwiSaver, Life after 65
From 1 July 2019, the age 65 restriction on joining was removed and this group of New Zealanders (and permanent residents) can now join and invest in KiwiSaver.
KiwiSaver is now an investment option for New Zealanders who are 65 or older. So why join KiwiSaver at this stage of life? Well, it provides an opportunity invest into a professionally managed savings product without your money being ‘locked away’ (as is the situation for those aged under 65 except in certain circumstances). The other thing is that life expectancy is increasing meaning your savings need to work harder to last over a longer period.
Christian KiwiSaver Scheme offers members a choice of three investment funds – Growth, Balanced and Income. The Income Fund has the lowest level of risk attached to it.
Christian KiwiSaver Scheme offers its members a KiwiSaver scheme that is invested under universally accepted Christian values. Long before it became trendy we were investing our funds in an ethical and responsible way. As Christians we like to make investment choices that resonate with what we believe.
While Christian KiwiSaver Scheme does not offer its members a “pension” we can pay your savings to you as a regular income each month or quarter. The frequency is your choice. You can also withdrawal large amounts (or your whole balance) at any time. We do not currently charge a transaction fee for regular payments or other payments.
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by Jo Cheramie | 4 Dec, 2018 | General
Greetings and peace in the name of our Lord Jesus Christ.
At the end of another busy year, it is my pleasure and delight to wish you all a holy and blessed Christmas. This is a holy time in the Church’s year when we pause to celebrate the birth of Jesus over 2000 years ago. Jesus was born in a stable in the town of Bethlehem in very humble circumstances, and the first to offer their worship were shepherds who responded to a message from an angel who told them the Good News that a Saviour was born, the Messiah, the Lord.
People have all sorts of ways of keeping in touch with this. Some people go on tours to the Holy Land to visit Bethlehem. They come back with nativity scenes, figures of Mary and Joseph and the baby Jesus which they set up in their living rooms. Some bring back other reminders of the Holy Land; water from the Jordan River, or a stone that might be incorporated into a church building. Christians have been making these kinds of pilgrimages for centuries and bringing back reminders of the story to help make it a present reality for us today.
Bethlehem today is a very different place from that depicted in our carols and Christmas cards. It is surrounded by a wall designed to keep Palestinian people out of Israel. It has frequently been caught up in the violence of conflict in that part of the world. Modern-day Bethlehem is a reminder that the world is ridden with division and violence, where injustice, misuse of power and violence abound, and where those who are powerless are expected to be submissive to those with power. This reflects the way many people of the world think the Church should be as well; compelled into submission.
This is not the way of God. Jesus is the fullness of God revealed to us in a whole human life. He comes in vulnerability, as a helpless child, to be alongside us and to share our humanity. He invites us to follow him. He never attempts to force us to follow, but he comes as the fullness of God’s grace and love to win us over. He shows us that the God we worship and that Christians believe in refuses to come in force, but in humility and in love.
The carol, “O little town of Bethlehem” has this line in the first verse: “the hopes and fears of all the years are met in thee tonight.” God is aware of the messiness of life and comes to be alongside us on our journey. God comes to dispel the darkness that we face, to be with us as we cope with the messiness of life and the difficulties we find ourselves in. God comes to open up a future laden with hope that is beyond our imagination; a future where there is justice and love. In short, God comes to give us a taste heaven. This Christmas, give your hopes and your fears to God. For Jesus is born to bring love into the world. He is with us and alongside us, working for love, peace and hope, that these gifts may be received in our hearts and in the hearts of every human being, so that all may know God’s love.
Once again, may you and yours have a holy and blessed Christmas, and a Happy New Year.
The Very Reverend Lawrence Kimberley
Board Chair
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by Jo Cheramie | 4 Dec, 2018 | Investment
When it comes to investing young people have a huge advantage: TIME. Time – you can never get it back. It’s the asset money can’t buy. The sooner savings begin, the sooner compound interest can start and its ‘magic’ needs time.
Being in KiwiSaver gives a practical way for parents to talk to their children about money, about budgeting, about investing for the future, about learning to appreciate that saving is a slow process. Appreciating the difference extra contributions make. Appreciating that there is no such thing as a free lunch and so fees are charged. Great news, from 1 January 2019 we’re not going to be deducting fees for members under age 18.
Getting young people into regular savings and investment habits will help with setting them on a path to a secure financial future. You can help with this in your role as a parent, grandparent, older sibling, godparent.
Savings and investments are for many purposes. Saving to spend on something specific like a holiday, a car. Saving for future events such as tertiary study. Saving for the just in case event. Saving for the longer term and that is where KiwiSaver fits in.
KiwiSaver can work well if young people are invested in the right investment fund, and regular contributions are made. Once they reach 18 then there are the other benefits of the Government contributions and once they start work, employer contributions.
Investing in a KiwiSaver scheme also provides younger members with an opportunity to understand how market-linked investments work through the diversification of asset classes (shares, property, fixed interest etc.) and that, while investment returns can go up and down, over time they generally grow.
KiwiSaver is a great option to consider for longer-term saving. Christian KiwiSaver Scheme provides the opportunity to belong to a scheme that cares about how investment returns are made.
