Investment Knowhow – August 2025 in Review

Investment Knowhow – August 2025 in Review

by | 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

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

by | 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).

Is Your Life Reflecting What Truly Matters?

Is Your Life Reflecting What Truly Matters?

by | 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).

Walking alongside you through serious illness

Walking alongside you through serious illness

by | 11 Aug, 2025 | Financial Planning, General, Investment, KiwiSaver

At Anglican Financial Care, our commitment to our members goes beyond helping them save for retirement. When life takes an unexpected turn, we aim to provide support as a way of walking alongside our members during times of illness, uncertainty, and change.

Every year in New Zealand, thousands of people are told: “You have cancer.” These words can turn life upside down. For those individuals and their whānau, the journey ahead can be challenging not only; medically and emotionally, but financially as well.

A serious illness can affect more than just your health. It can limit your ability to work, disrupt your daily routines, and create financial stress. In these moments, having options and knowing support is available can offer real peace of mind. How Anglican Financial Care supports members facing serious illness

For members of Christian KiwiSaver Scheme and of other schemes through Anglican Financial Care, we offer several ways to help ease financial stress during a health crisis:

No matter which of our schemes you belong to, Anglican Financial Care is here to support you. We offer a range of options that may help ease financial pressure during a serious illness, because when life gets difficult, we believe no one should face it alone.

1. Accessing savings through ‘Serious Illness Withdrawal’

If you are facing a serious illness such as cancer or another condition, you may be eligible to apply for a Serious Illness Withdrawal from your account. This option is available to members of Christian KiwiSaver Scheme and some members of the Pension Fund.

To be eligible, the condition or illness must either permanently affect your ability to work or pose a serious and imminent risk to your life.

If you qualify, this type of withdrawal may allow you to access some or all of your retirement savings early. These funds can provide vital breathing space when you’re unable to work or facing unexpected medical bills.

It’s important to know that this option is available only for those who meet strict criteria, as confirmed by a medical professional. If you’re unsure whether you qualify, we encourage you to contact our team – we’re here to guide you through the process.

2. Financial hardship withdrawal options

If your illness causes significant financial pressure, but you don’t meet the threshold for a Serious Illness Withdrawal, you may be able to apply for a Significant Financial Hardship Withdrawal. This can provide early access to your savings to help cover essential living costs or medical expenses.

3. Mortgage support

If you hold a mortgage through Anglican Financial Care, we can work with you to ease your financial commitments. Adjusting your repayment terms or exploring other options can provide much-needed relief when your focus needs to be on your health.

4. Financial assistance grants and loans

Financial assistance is available to eligible Anglican clergy, their widows, widowers, and dependents to help cover costs such as medical treatment, travel for healthcare, or essential living expenses during times of hardship.

Every request is handled individually, with compassion and confidentiality.

5. Guidance and support

While we cannot provide you with financial advice around your insurance needs, we can listen, understand, and help you navigate your options, within your personal AFC product.

At AFC, you’re never just a number. Our team is here to walk alongside you, providing care and someone to speak to, when you need it most.

Reflecting on community and care

Days like Daffodil Day, held annually in August by the Cancer Society of New Zealand, remind us of the importance of standing together. Daffodil Day makes us think how we can each show up for people facing serious illness, whether through donations, encouragement, or practical support.

At Anglican Financial Care, this belief in walking alongside others is woven into everything we do. Serious illness can feel isolating, but with the right support, no one has to face it alone.

Christian KiwiSaver Scheme, The Retire Fund, and the New Zealand Anglican Church Pension Fund 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.

Anglican Church Backs Christian KiwiSaver Scheme

Anglican Church Backs Christian KiwiSaver Scheme

by | 17 Jun, 2024 | General, KiwiSaver

At the Anglican Church’s General Synod/te Hīnota Whānui in May 2024, the Christian KiwiSaver Scheme received strong backing from the Church with a resolution that encourages all Anglican institutions to select the Scheme as their employer chosen KiwiSaver scheme.

The details of the KiwiSaver scheme founded on Christian values and Christian ethical frameworks was explained to the Synod and subsequently reported on the Anglican Taonga website.

The full article is here

Your KiwiSaver Check Up

Your KiwiSaver Check Up

by | 17 Jun, 2024 | General, KiwiSaver

Just like you get a Warrant of Fitness for your car, it’s important to regularly check your KiwiSaver Scheme to make sure it’s still set up the way you want. Here are some easy tips to make sure your KiwiSaver is in top shape. We recommend doing this once a year, either at the start of the year or when you get your annual member statement.

1.   Check if Your Investment Profile is Right for You.

This is about where your money is invested. Does your choice of investment fund, match the level of risk you are comfortable taking?
The Sorted website has a handy tool called Investor Profiler. You answer a few questions, and it helps you find out what type of investor you are and what kind of investment mix is best for you.

2.   Are You Contributing Enough?

Think about whether you can afford to put in more money or make extra contributions. If you stopped making contributions, is it time to start again?

The Sorted website also has a KiwiSaver Calculator. Answer a few questions to see how big your balance could be at age 65 and how much you could get each week in retirement. Try different contribution rates to see how they affect your savings.

3.   Is your Personal Investor Rate (PIR) correct?

Your PIR is the tax rate we use to calculate the tax on your investment earnings. Make sure you’re using the right PIR. You don’t want too much tax taken from your earnings, or too little and end up with a tax bill. Your PIR for the current tax year is based on your total taxable income in either of the last 2 tax years. If that changes, your PIR might change too. Inland Revenue can also tell us to change your PIR if they think it’s wrong. Our website has a guide to help you calculate your PIR

That’s it! Checking these three things every so often will help make sure your KiwiSaver account is working for you. Our team is happy to help with any questions you have.