Ethically growing your investment

Ethically growing your investment

by | 1 Feb, 2019 | General, Investment

As Christian KiwiSaver Scheme members we are a group of “ethically-minded Christians” who believe in the value of sound stewardship and in investing in assets that reflect Christian values.  That could sound rather boring and dull.

However, one of our investments is neither boring nor dull but rather exciting.  Back in 1992, The New Zealand Anglican Church Pension Board had the foresight to purchase a block of land in the Tukituki Valley, a spectacular part of the Hawkes’ Bay.

The Māori word ‘Tukituki’ means to demolish; this possibly refers to the power of the river when it is in full flood.  The Tukituki River flows all the way from the Ruahine Ranges out to the Pacific Ocean in the southern part of the Hawkes’ Bay coastline.

Aerial view of Hapua Forest Park before harvesting.

While that English translation of Tukituki has that meaning of demolition, the Board’s investment in the Tukituki Valley had the opposite meaning.  The Board purchased that block of land and developed a 672 hectare pine forest which it named Hapua Forest.  That block is bringing new life and growth.

The first forest was planted during the 1992-1993 season.  This planting occurred at a time when planting trees were not seen as positively as today in terms of countering the effects of global warming.  During their lifetime, these trees bring new life and contribute positively to their environment by, such things, providing oxygen and improving air quality, conserving water and stabilising the soil.

As you can see from the picture below, that first forest has now matured and is in the process of being harvested.  Harvesting started back in 2016 and should be completed during 2019.

Harvesting in the Hapua Forest.

But the land is not being left barren once that first crop is harvested.  As land becomes available after the harvesting, further tree planting is occurring.  This process started during the 2018 winter.  So far, approximately 62,500 new seedlings have been planted. Up to now, one quarter of the forest area has been replanted.

New seedling growing in Hapua Forest Park.

Whereas members in other KiwiSaver schemes may have shares in a forestry company, Hapua Forest is something that Christian KiwiSaver Scheme members directly own part of.  While the Board bought the Hapua Forest back in the 1990s, the Christian KiwiSaver Scheme has owned a portion of it since the Scheme started in 2007.

Just as the trees in the Hapua Forest take up to 25 years to mature before they could be harvested, KiwiSaver savings are also a long-term investment looking toward when we retire and can benefit from the savings.  For younger members that could be around 40 years – a period akin to nearly two crops of maturing pine trees at the Hapua Forest.  Like the value of those trees in the Hapua Forest our KiwiSaver investment will fluctuate in value over time but will benefit Scheme members and our climate over their life.

Christmas message

Christmas message

by | 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

Getting back into a savings habit is good for you

Getting back into a savings habit is good for you

by | 27 Jul, 2018 | General

In a recent NZ Herald article Retirement Commissioner Diane Maxwell said “I was terrible with money, I didn’t think I was going to live to grow old.” She went on to say “I look back and I could weep over all the money I’ve wasted.”

How many times have you said something similar to yourself? Or are thinking why bother saving for retirement?

But it can be hard to restart saving when there are so many other demands on your income. Here are a few reasons why getting back into a savings habit is good for you.

Pay yourself first

“Pay yourself first” is one of the pillars of personal finance and considered a golden rule by many financial planners. The basic idea is simple. As soon as you get paid, put some of your pay into your savings account(s). You do this before you pay your bills or buy groceries.

Paying yourself an amount that works for your budget is one of the easiest ways to get saving. Saving small amounts can make a big difference to getting ahead. It also has good physiological benefits. When you prioritise savings, you’re telling yourself your future is the most important thing to you, not that takeaway coffee. While money cannot buy happiness, it can provide peace of mind. By moving savings to the front of the queue, you’re able to set money aside before you rationalise ways to spend it.

By making your savings automatic, chances are you won’t miss the money as it grows in its own separate accounts. You might put some of these savings into KiwiSaver for the long-term and some into another savings account for shorter term goals and unexpected financial bumps.

It’s never too late to start saving.

Sources: www.investopedia.com and sorted.org.nz/guides/paying-ourselves-first

What money are you missing out on by not contributing to your KiwiSaver account?
  1. The annual Government contribution,
  2. If you’re an employee, your employer’s contributions, and
  3. Lost investment earnings.

If you would struggle to meet your financial commitments if you restarted regular contributions from you pay to KiwiSaver, then consider making regular small payments throughout the year to be at least be eligible for the government’s annual contribution. You can still make these contributions direct to your KiwiSaver scheme provider while you are on a contribution holiday. You’ll need to contribute $1,042.86 (that’s about $20 a week) to qualify for the maximum government contribution of $521.23. You can also contribute less than this and still qualify for a lower government contribution.

Financial wellbeing

Most New Zealanders are confident in their ability to manage money but about 25% have no cash savings, according to recent ANZ research exploring the financial knowledge, attitudes and behaviours of adults in Australia and New Zealand.

Starting to save, even a small amount, is one of the most important factors for people feeling higher financial wellbeing.

This research grouped the surveyed New Zealanders in the following four groups:

What is meant by ‘financial wellbeing’? Commonly agreed components of financial wellbeing are:

  • Being able to meet financial commitments
  • Having resources to enjoy life
  • Having the ability to cope with unexpected financial shocks, and
  • To feel in control and satisfied with your current situation while having positive views and plans for your financial future.

Financial wellbeing will be different for everyone.

The research also showed financial wellbeing was not based solely on income or wealth but feelings and expectations about a current and future financial situation. People could have relatively high levels of financial wellbeing without necessarily having a high income, and vice-versa.

What is consistently found in a variety of research on financial wellbeing is that the most important behaviours were active saving, not borrowing for everyday expenses and restrained spending.

People are generally fitter and healthier in their 60’s and 70’s than the previous generation and more are keen to keep working longer. While many were still working because of the value and satisfaction it gave them, nearly a third of Kiwis still working after 65 say they have to do so to pay the bills.

The government paid pension, New Zealand Superannuation, is $400.87 per week after tax for a single person living alone ($20,845.24 pa). There are different NZ Superannuation rates for your different living arrangement, go to the Ministry of Social Developments website for more information.

It’s never too late to start saving.

Sources:

  1. ANZ: Financial Wellbeing: A Survey of Adults in New Zealand April 2018
  2. BNZ Financial Futures research: https://blog.bnz.co.nz/2018/04/the-unexpected-secret-to-a-happy-retirement/
KiwiSaver gives the self-employed great options

KiwiSaver gives the self-employed great options

by | 26 Jul, 2018 | General, KiwiSaver, Membership

If you’re self-employed then KiwiSaver provides a handy and cost-effective option to save for retirement. If you know someone who is self-employed then tell them, your friends and your family about Christian KiwiSaver Scheme, a KiwiSaver scheme for Christians that reflects Christian values and is founded on ethical and responsible investment principles. Send them a link to this article.

You don’t have to be in paid employment to join, it’s open to:

  • workers who are self-employed
  • those not in paid employment
  • students
  • children.

Self-employed people have great options:

  • They can choose the amount they save in KiwiSaver
  • They can make contributions on a regular basis or lump sum payments every so often
  • They choose their KiwiSaver scheme (pick ours!)
  • They are entitled to the government’s annual contribution of up to $1,042.86
  • They are entitled to all of the other KiwiSaver benefits.

It’s never too late or too early to start but the earlier saving starts the better off the saver is likely to be. Saving a little over a long time has proven to be a really good option.

Ethical at heart

Ethical at heart

by | 11 May, 2018 | General

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

Thinking about entering the property market?

Thinking about entering the property market?

by | 10 May, 2018 | General

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!