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).

If you’ve been dreaming of owning your own home, now could be the moment to take that first step. Interest rates have been dropping, bringing a sense of affordability back to the mortgage market. Housing stock is healthy, giving buyers more options and time to make considered choices.

For New Zealanders looking to settle into a place of their own, there’s renewed optimism. And one of the most helpful tools you may already have, is your KiwiSaver.

How to use KiwiSaver towards purchasing your first home

If you’ve been contributing to your KiwiSaver for at least three years, you may be eligible to withdraw most of your savings to go toward your purchase.

Here’s what you need to know:

• Eligibility: You must have been a member of a KiwiSaver scheme for at least three years and be buying a home you intend to live in, purchasing land you intend to build on, or purchasing a home to build on, or move onto, Māori land
• How much you can withdraw: You can take out everything except $1,000. That includes your contributions, your employer’s contributions, government contributions, and investment earnings.
• Important rules:
  • The property must be your primary residence; it cannot be an investment or rental property.
  • The funds are paid to your solicitor on or before settlement, not directly to you. If the purchase does not occur, the funds must be returned to your KiwiSaver account.

Getting started

Using your KiwiSaver to buy a home takes planning, but it’s a manageable process. Here’s a step-by-step guide to help you get started:

1. Check your eligibility

Confirm you’ve been in KiwiSaver for at least three years and are purchasing your first home (or qualify under the previous homeowner pathway). If you’re unsure, get in touch with Kāinga Ora or your KiwiSaver provider.

2. Look at your balance and budget

Check how much is in your KiwiSaver account and consider how much you’ll need for your deposit. Most lenders prefer a 20% deposit, but you may be eligible for a low-deposit mortgage (such as a First Home Loan) with just 5%.

If you’re planning on buying a house with a partner, you might be eligible to both apply for a first home withdrawal.

3. Contact your KiwiSaver provider early

Let your provider know you’re planning a first-home withdrawal. They’ll give you a form to complete and a list of required documents. These typically include:

• A copy of the signed sale and purchase agreement
• A statutory declaration confirming you meet the criteria
• ID and proof of address
• (If applicable) a letter from Kāinga Ora confirming second-chance eligibility

4. Work closely with your lawyer

Let your lawyer know early in the process that you’re using KiwiSaver. They’ll handle receiving the funds and applying them correctly on settlement day.

TIP: Ask your KiwiSaver provider how long processing takes. It’s usually around 10 working days, but can be longer.

Lending on Māori Land

For many Māori whānau, the dream of homeownership includes building on whenua tuku iho – ancestral Māori land. But mainstream lenders are often unable to support home loans on this land due to legal complexities around ownership structures.

At Anglican Financial Care, we recognise the importance of connection to whenua and whakapapa. That’s why we offer a unique home loan service designed specifically for those wanting to build, buy, or relocate a home on Māori freehold land.

How does it work?

Instead of using the land as collateral, we secure the loan using the house itself, registered through the Personal Property Securities Register. This approach respects the communal ownership of Māori land while making financing more accessible.

Who is it for?

This service is available to those connected to our Christian community, for example, members of the Christian KiwiSaver Scheme or employees of Anglican organisations. Applicants must have the legal right to build or live on the land, usually through a license to occupy.

This offering is grounded in our values of stewardship, care, and equity. By supporting housing on Māori land, we’re respecting cultural heritage and the ability for whānau to live in a way that honours connections to each other and to the land.

Take the first step with confidence

Buying your first home is a significant milestone. Start by exploring your KiwiSaver balance and checking your eligibility. Explore the options available to you, talk to your provider, your lawyer, and your support network.

If you have questions about how Christian KiwiSaver Scheme or our Māori land lending service might support your journey, we’re here to help.

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.