Interest Rate Update - 2022
As has been widely reported, the Reserve Bank of Australia has raised the official interest rate by 25 basis points. This is the first increase since November 2010. It represents the start of the retirement of emergency monetary settings that were designed to support the economy through the COVID pandemic.
The AIDF monitors these market conditions as well as the circumstances of our borrowers very actively. During the pandemic this resulted in the AIDF offering interest only terms to clients designed to assist schools and other organisations manage their cash flow through very challenging times.
While the major banks have already announced that they are passing on the increases in full, the AIDF has analysed the likely impacts and has instead opted for a graduated adjustment designed to encourage our borrowers to assess interest rate risk over the medium term.
The updated interest rates for AIDF Lending and Investment rates are available here. Please note the new rates for:
- Loans will apply from the 1 June 2022; and
- Investments will apply from 9 May 2022
The AIDF rates are commercially attractive compared to those offered within the broader banking sector. In addition, no account keeping or transaction fees apply to our savings and investments products.
The AIDF has continued to fund a broad range of projects throughout the Diocese. The Diocesan schools and agencies have continued to fund significant improvements and new buildings while a number of our parishes have borrowed to extend their facilities. These have all been made possible because of our investors who choose to invest their money with the Fund. In short, your continued support/investment in the AIDF is an investment in the missional, education and charitable works of our Anglican Community.
By way of an update the Donations made by the AIDF to our local churches or agencies in 2021 from investments held in our Online Community Saver Accounts & Online Community Notice Accounts amounted to $52,000. This has been a very successful in allowing our clients to support specific entities directly.
Please do not hesitate to contact Adam, Leila or Sarah at the AIDF directly if you have any questions about these interest rate adjustments.
Trevor Ament
Chief Executive Officer
May 2022
The Riverina Anglican College - Junior School - Stage 1
TRAC is a Diocesan co-educational school located in Wagga Wagga in southern NSW. The College offers an affordable education emphasising academic, cultural and sporting excellence and growth in Christian values. The College commenced operating in January 1999 and over the last 20 or so years the College has grown significantly with enrolments now in excess of 900 students.
Prior to 2021 TRAC was a secondary school only. However, in 2019 the College Board took the decision to expand and establish a Junior School. TRAC approached the AIDF at that time to seek funding to assist with the construction and development of Stage 1.
Construction commenced in early 2020, funded by AIDF and the project was successfully completed within time and budget constraints for classes to commence at the start of 2021.
The building is modern and contemporary including an open plan learning space, separate classrooms, bathrooms, offices and staff room.
Demand for enrollments has been overwhelming and work is already underway on the Stage 2 building.
The AIDF is delighted to invest in Anglican education across our region and continues to seek to support the mission of the Diocese.
AIDF Online Community Saver Accounts
The AIDF has recently processed the annual distribution of donations to parishes and diocesan agencies which totaled in excess of $54,000.
A major initiative of the AIDF has been to offer our customers the opportunity to financially support their parish or favourite diocesan agency directly by investing in our Online Community Saver account.
The Community Saver account provides our investors with an attractive interest rate and in addition, the AIDF donates a further percentage (currently 0.5%) to the customer’s parish or nominated diocesan agency.
AIDF investors have certainly embraced this initiative as the Online Community Saver account balances now exceed $10,600,000.00
Our Online Community Saver account allows the AIDF and our investors to support local parishes and the mission of the Diocese of Canberra and Goulburn.
The AIDF has donated in excess of $394,000 over the last 8 years which has been very well received by parishes, ministry units and agencies of the Diocese.
AIDF Annual Report 2019
The AIDF is pleased to provide our Annual Report for 2019.
The AIDF’s history of financial strength and performance has continued during 2019. A summary of the results are as follows:
1) Operating surplus of $904,394 (2018: $961,635)
2) Reserves increased to $9,918,967 (2018: $9,431,089)
3) Investor Base of $66,017,627 (2018: $68,554,533)
4) Liabilities of $20,488,915 (2018: $12,572,289)
In addition, during 2019 the AIDF undertook the following:
-
Continued focus on diversification of Investment & loan portfolio
-
AIDF Loan interest rate reduction to assist our borrowers
We would like to thank our investors for their ongoing support of the AIDF.
AIDF Online Community Saver Accounts
The AIDF has recently processed the annual distribution of donations to parishes and diocesan agencies which totaled in excess of $55,000.
A major initiative of the AIDF has been to offer our customers the opportunity to financially support their parish or favourite diocesan agency directly by investing in our Online Community Saver account.
The Community Saver account provides our investors with an attractive interest rate and in addition, the AIDF donates a further percentage (currently 0.5%) to the customer’s parish or nominated diocesan agency.
AIDF investors have certainly embraced this initiative as the Online Community Saver account balances now exceed $10,465,000.
Our Online Community Saver account allows the AIDF and our investors to support local parishes and the mission of the Diocese of Canberra and Goulburn.
As detailed below, the AIDF has donated in excess of $340,000 over the last 7 years which has been very well received by parishes, ministry units and agencies of the Diocese.
July 2020
New Early Learning Centre for Burgmann Anglican School
Burgmann Anglican School is a co-educational Diocesan school located in Gungahlin, ACT with two campuses. The Valley Campus caters for students from Preschool to Year 5 and Year 9 to 12, while the Forde Campus caters for Preschool to Year 2 and Year 6 to 8. Burgmann strives to provide a supportive and inspirational environment that seeks to develop students' full intellectual and personal potential.
Burgmann opened in 1999 with 24 students. Last year the school celebrated its 20th birthday and now boasts a vibrant community of more than 1500 students.
During 2018, in response to significant demand for enrollments, the School approached the AIDF seeking funding for the construction and development of a 90 place Early Learning Centre (ELC) at the Valley Campus.
Construction commenced in early 2019, funded by AIDF and the project was successfully completed within time and budget constraints for classes to commence at the start of 2020.
The building is modern and contemporary including an open plan learning space, separate playrooms, bathrooms, cooking facilities and staff room along with a new outdoor playground.
With strong ongoing demand for enrollments at the School, the new ELC will support the future growth of the School and provide state of the art facilities for learning.
The AIDF is delighted to invest in Anglican education across our region and continues to seek to support the mission of the Diocese.
May 2020
AIDF – COVID-19 Response
The AIDF has supported our customers and the Diocesan community for more than 50 years and will continue to do so as the COVID-19 situation unfolds.
The AIDF COVID-19 Financial Response is significant and has been developed to provide as much assistance as possible to all Agencies, Schools, Entities and individuals of the Diocese at this time.
Details are as follows:
Loan Repayments
All existing loans which are currently repaying principal and interest will have the option to convert to interest only repayments from 1st April to 31st December 2020.
Interest rate changes
Rate reductions commencing 1 April 2020 as follows:
-
Diocesan Schools, Anglican Church Property Trust, Diocesan Agencies, and Parish lending rates:
-
A reduction of 150 basis points from 5.25% to 3.75%;
-
-
Parish Housing lending rate:
-
A reduction of 80 basis points from 3.40% to 2.60%;
-
-
Home Loan lending rate:
-
A reduction of 80 basis points from 3.40% to 2.60%; and
-
-
Master Asset Finance Facility (MAFF) lending rate:
-
A reduction of 140 basis points from 4.40% to3.00%.
-
Savings Accounts
Rate reductions commencing 1 April 2020 as follows:
-
Cash Management Account (CMA) – a reduction to 0.75%
-
Online Community Saver Accounts & Online Community Notice Accounts - a reduction to 1.00%.
-
The AIDF donation of 0.50% to your Parish or identified Agency has been maintained
-
-
Access Accounts - unchanged
Term Investment Accounts
Rate reductions commencing 1 April 2020 as follows:
|
3 to 9 months |
1.85% |
|
9 to 18 months |
2.10% |
|
18 to 24 months |
2.20% |
|
24 to 36 months |
2.35% |
|
36 months |
2.50% |
These adjustments will have a positive impact for Parishes, Schools, Agencies and individuals within the Diocese who borrow from the AIDF. Donations made to local churches from investments held in our Online Community Saver Accounts & Online Community Saver Notice Accounts will remain at 0.50% pa.
The AIDF is a key agency of the Anglican Diocese of Canberra and Goulburn as it provides a range of financial services, including investment products and loans to our Anglican community. It is important to note the financial capacity and strength of the AIDF at this time. In summary the financial strength of the AIDF can be defined through:
-
The ongoing strong financial performance of the AIDF;
-
The establishment of its Reserve (Net assets) which has been built to ~ $10 million in 2020:
-
This represents a capital adequacy ratio of 13.0%.
-
-
The external facilities of $40 million which are secured by direct mortgages on specific properties:
-
The total value of the mortgage security which is $140 million;
-
-
The investments of the AIDF have and continue to diversify; and
-
The AIDF’s Ordinance states that the Fund shall be guaranteed by the Diocese.
The AIDF’s rates remain commercially attractive compared to those offered within the broader banking sector. In addition, no account keeping or transaction fees apply to our savings and investment products.
The AIDF has continued to fund a broad range of projects throughout the Diocese. Improvements within Parishes, the construction of, and extensions to Diocesan schools have all been made possible because of people like you who choose to invest their money with the Fund. In short, your ongoing support/investment in the AIDF is an investment in the religious, education and charitable works of our Anglican Community.
The health and safety of our customers, staff and the greater community is vitally important, which is why we have made the decision to temporarily close our branch / office.
AIDF Staff will be working from home for the foreseeable future and we expect that this will have a minimal impact on our day to day operations. Please do not hesitate to contact Adam, Leila or Sarah on ph (02) 6247 3744 or via email (aidf@aidf.com.au) should you require any further information.
Kind Regards,
Trevor Ament
Chief Executive Officer
The AIDF is pleased to provide our Annual Report for 2018.
The AIDF’s history of financial strength and performance has continued during 2018. A summary of the results are as follows:
1) Operating surplus of $961,635 (2017: $984,511)
2) Reserves increased to $9,431,089 (2017: $8,829,454)
3) Investor Base increased to $68,554,533 (2017: $60,537,334)
4) Liabilities reduced to $12,572,289 (2017: $19,470,057)
In addition, during 2018 the AIDF undertook the following:
-
Continued focus on diversification of Investment & loan portfolio
-
AIDF School Loan interest rate reduction to assist Diocesan Schools
-
Renewal of Bank Loan facility agreements
We would like to thank our investors for their ongoing support of the AIDF.
Interest Rate Update - 1 August 2019
As was widely reported, the Reserve Bank of Australia recently again lowered the official interest rate.
The AIDF Board has approved adjustments to our rates to pass this onto all our clients. Updated interest rates for AIDF Lending and Investment rates are available here. This adjustment will apply from the 1 August 2019.
The AIDF rates remain commercially attractive compared to those offered within the broader banking sector. In addition, no account keeping or transaction fees apply to our savings and investments products.
This adjustment will have a positive impact for parishes and schools who borrow from us. Donations made to local churches from investments held in our Online Community Saver Accounts & Online Community Notice Accounts will remain at 0.50% pa.
The AIDF has continued to fund a broad range of projects throughout the Diocese. Improvements within parishes, extensions to Diocesan schools have all been made possible because of people like you who choose to invest their money with the Fund. In short, your ongoing support/investment in the AIDF is an investment in the religious, education and charitable works of our Anglican Community.
In closing, I would like to advise the AIDF’s financial performance and position has continued to strengthen over 2018. The audited financial statements for the year ended 31 December 2018 are available here.
Please do not hesitate to contact Adam or Leila at the AIDF directly should you require any further information.
Trevor Ament
Chief Executive Officer
1 August 2019
AIDF Online Community Saver Accounts
The AIDF has recently processed the annual distribution of donations to parishes and diocesan agencies which totalled in excess of $55,000.
A major initiative of the AIDF has been to offer our customers the opportunity to financially support their parish or favourite diocesan agency directly by investing in our Online Community Saver account. The Community Saver account provides our investors with an attractive interest rate (currently 2.1%) and in addition, the AIDF donates a further percentage (currently 0.5%) to the customer’s parish or nominated diocesan agency.
AIDF investors have certainly embraced this initiative as the Online Community Saver accounts now exceed $12,150,000.
Our Online Community Saver account allows the AIDF and our investors to support local parishes and the mission of the Diocese of Canberra and Goulburn.
Interest Rate Update - 1 July 2019
As was widely reported, the Reserve Bank of Australia recently lowered the official interest rate.
The AIDF Board has approved adjustments to our rates to pass this onto all our clients. Updated interest rates for AIDF Lending and Investment rates are available here. This adjustment will apply from the 1 July 2019.
The AIDF rates remain commercially attractive compared to those offered within the broader banking sector. In addition, no account keeping or transaction fees apply to our savings and investments products.
This adjustment will have a positive impact for parishes and schools who borrow from us. Donations made to local churches from investments held in our Online Community Saver Accounts & Online Community Notice Accounts will remain at 0.5% pa.
The AIDF has continued to fund a broad range of projects throughout the Diocese. Improvements within parishes, extensions to Diocesan schools have all been made possible because of people like you who choose to invest their money with the Fund. In short, your ongoing support/investment in the AIDF is an investment in the religious, education and charitable works of our Anglican Community.
In closing, I would like to advise the AIDF’s financial performance and position has continued to strengthen over 2018. The audited financial statements for the year ended 31 December 2018 are available here.
Please do not hesitate to contact Adam or Leila at the AIDF directly should you require any further information.
Trevor Ament
Chief Executive Officer
20 June 2019
TRAC - New STEM Building
The Riverina Anglican College (TRAC) is a Diocesan co-educational secondary school located in Wagga Wagga in southern New South Wales. The College offers an affordable education emphasising academic, cultural and sporting excellence and growth in Christian values.
The College commenced operating in January 1999 and over the last 20 years the College has grown significantly with enrolments now in excess of 700 students.
In 2017 the College was reaching capacity and approached the AIDF seeking funding for the construction of a new Science, Technology, Engineering and Mathematics (STEM) Facility. The building consists of science teaching and laboratory spaces, a preparation and staff area and associated storage and ancillary areas.
Construction took place over the second half of 2018, funded by AIDF and the project was successfully completed within time and budget constraints for classes to commence at the start of 2019.
With strong demand for enrolments at the College, the new STEM building will support the future growth of the College and provide state of the art facilities for all students.
The AIDF is delighted to invest in Anglican education across our region and continues to seek to support the mission of the Diocese.
May 2019
AIDF Annual Report 2017
The AIDF is pleased to provide our Annual Report for 2017.
The AIDF’s history of strength and success has continued for 2017. A summary of the results are as follows:
1) Operating surplus of $984,511 (2016: $652,188 – 9 months)
2) Reserves increased to $8,829,454 (2016: $8,194,943)
3) Investor Base increased to $60,537,334 (2016: $58,255,267)
4) Liabilities reduced to $19,470,057 (2016: $34,249,702)
In addition, during 2017 the AIDF undertook the following:
-
Reviewed and updated all Risk Management policies and procedures
-
Launched our new Online Transaction Services system (Internet Access)
-
Prepared the application for an Australian Financial Services Licence (AFSL).
We would like to thank our investors for their ongoing support of the AIDF.
AIDF - Online Community Saver Account
The AIDF has recently processed the annual distribution of donations to parishes and diocesan agencies which totalled in excess of $60,000 (2017 - $56,000).
A major initiative of the AIDF has been to offer our customers the opportunity to financially support their parish or favourite diocesan agency directly by investing in our Online Community Saver account. The Community Saver account provides our investors with an attractive interest rate (currently 2.5%) and in addition, the AIDF donates a further percentage (currently 0.5%) to the customer’s parish or nominated diocesan agency.
AIDF investors have certainly embraced this initiative as the Online Community Saver accounts now exceed $11,500,000.
Our Online Community Saver account is just another way that the AIDF and our investors are supporting local parishes and the mission of the Diocese of Canberra and Goulburn.
AIDF January 2017 Update
The Anglican Investment & Development Fund (AIDF) was established in 1967 and this year we celebrate our 50 anniversary. Further details will be provided over 2017 to recognise the tremendous support of our investors and those who have committed so much in the development, oversight and success of the AIDF. The AIDF has operated successfully since its inception by providing a means to:
Finance developments that promote, support and expand the mission of the Diocese; and
-
Allow Ministry Units, Parishioners, Diocesan agencies, Schools and others the opportunity to support missional activities across the Diocese through investing with the AIDF.
An investment in the AIDF is an ethical investment in the ministries of the Diocese. Every dollar invested enables the AIDF to facilitate the ministry of schools, Diocesan agencies, community service providers and the Parishes through loans and by providing high yielding accounts and term investments. Investors enjoy fee free transactions and benefit from rates of return that are well above the alternative offerings from the banks. AIDF’s investors are a fundamental reason the AIDF has been so successful over its long history.
During 2016 the Board considered and recently approved a change to our financial year end which will now be 31 December 2016. This aligns the AIDF with the other agencies of the Diocese and will have no impact on investors or borrowers.
Today the fund has grown to hold approximately $100m in total assets. The AIDF’s operations are guaranteed by the Diocese and its financial performance has continued to strengthen over 2016. This is evidenced by the initial financial results for 2016:
-
Investor funds growing significantly to reach $60m (2015: $39.7m);
-
The loans portfolio is $82m (2015: $85m);
-
Net assets have increased to $8m (2015: $7m); and
-
Distributions to Parishes as a result of the Community Saver Account increased to $58k (2015: $47k).
The expertise and quality of the AIDF Board plays a key role in this success. Our board members bring a wealth of experience across the areas of finance, legal, business management, risk and governance.
The Board wishes to thank investors for their ongoing support and looks forward to supporting the mission of the Diocese and all our clients over 2017.
Statutory Compliance Update January 2017
As you are aware the AIDF provided a commentary on its statutory compliance in its 2016 report to Synod. The report noted the possible changes to the regulatory environment being proposed by APRA and ASIC.This article provides an update with the latest information.
Australian Charities and Not-for-Profits Commission (ACNC)
The AIDF is a registered charity and complies with its obligations under the ACNC legislation. There are no changes to report concerning AIDF’s obligations under the ACNC legislation.
Australian Prudential Regulation Authority
APRA has granted an exemption from Banking Act 1959 to religious charitable development funds (RCDFs) and the AIDF has the benefit of that exemption. The previous exemption order expired on 31 December 2016 and a new order came into effect from 1 January 2017.
Australian Securities and Investments Commission
ASIC also reviewed its exemption from the fundraising provisions of the Corporations Act 2001 that apply to charitable investment fundraisers (CIFs). A new instrument (ASIC Corporations (Charitable Investment Fundraising) Instrument 2016/813) came into effect from 1 January 2017.
Terminology
APRA and ASIC use slightly different terminology. APRA uses the concept of affiliated retail investor, while ASIC uses the term retail non-associated client. While there are subtle differences in the definitions, to all intents and purpose the terms are interchangeable. APRA refers to bodies such as the AIDF as RCDFs, while ASIC refers to them as CIFs. In this update we will use the ASIC terms of retail non-associated clients and CIFs.
AIDF Update
The AIDF has been working to ensure it complies with the new regulatory guidelines for CIFs and, to this end, has adopted the following strategies.
As of 1 January 2017:
The AIDF will only offer investment products to associated clients, namely Anglican parishes and ministry units, Diocesan agencies, Anglican schools, clergy and staff.
The AIDF will not offer new investment products to voluntary workers until ASIC has approved the criteria by which a person is considered to be a voluntary worker.
From 1 January 2017 and before 31 December 2017:
All existing "access accounts" held by retail non associated clients will be converted to a term account with at least a 31 day notice period, which requires clients to provide the AIDF 31 days' notice in order to withdraw funds from their account. Please note – immediate access to funds under circumstances of hardship will be considered by the AIDF in accordance with its policy.
As a result of these changes the AIDF has decided to apply for an Australian Financial Services Licence (AFSL) which will allow us to offer notice and term investment products to any individual or entity, whether they are associated clients or not.
For those who will be affected by the change to 31 day notice accounts, we will contact you well before the cut-off date (31 December 2017) to assist you with the transition and to answer any queries you may have.
We have spoken to as many clients as we can and we do not expect these changes will have a major impact on our clients. That is we are being told, and our research supports this, that a large majority of our non-associated clients use the AIDF investment accounts to place surplus funds (that they don’t need day to day) to receive a good return and to support the Diocese and their Parish directly.
If you have any questions regarding the above please feel free to contact us on ph 6247 3744 or by email at aidf@aidf.com.au.
Change to Six-Monthly Interest Payment Run
To align with the change in our end of financial year the interest payments for call accounts and cheque accounts will now be made at the end of June and the end of December. These were previously March and September.
Term investment interest payments are not affected and Online Community Saver accounts will continue to have interest paid monthly.
Parish and Diocesan entity Cash Management accounts will now have interest paid monthly.
Interest Rate Update
As was widely reported, the Reserve Bank of Australia recently lowered the official interest rate.
The AIDF Board has approved a small adjustment to our own rates. Updated interest rates for AIDF Investment rates are available here. This adjustment will apply from the 1 September 2016.
As you are aware, the AIDF is a key agency of the Anglican Diocese of Canberra and Goulburn and provides a range of investment products and lending services to our Anglican Community.
The AIDF investment rates remain commercially attractive compared to those offered within the broader banking sector. In addition, no account keeping or transaction fees apply to our savings and investments products.
This adjustment will have an immediate effect for parishes and schools who borrow from us, as rates applying to their loans will be adjusted. Donations made to local churches from investments held in Online Community Saver Accounts will remain at 0.5% pa.
Over the past year, we have continued to fund a broad range of projects throughout the Diocese. Improvements within parishes, extensions to Diocesan schools and the development of new ministries have all been made possible because of people like you who choose to invest their money with the Fund. In short, your ongoing support/investment in the AIDF is an investment in the religious, education and charitable works of our Anglican Community.
In closing, I would like to advise the AIDFs financial performance and position has continued to strengthen over 2015-16. The audited financial statements for the year ended 31 March 2016 are available here.
Please do not hesitate to contact Leila or Nynka at the AIDF directly should you require any further information.
Trevor Ament
Executive Director
29 August 2016
Financial Statements
I am delighted to publish the Anglican Investment and Development Fund’s (AIDF) 2016 financial statements. The audited financial statements for the year ended 31 March 2016 are available here.
The financial highlights for 2016 and 2015 are:
|
|
2016 |
2015 |
|
Net interest revenue |
$2,951.800 |
$2,440,204 |
|
Operating revenue |
$3,049,345 |
$2,440,204 |
|
Operating expenses |
$2,038,807 |
$1,146,085 |
|
Net profit |
$1,010,538 |
$1,572,238 |
|
Total comprehensive income |
$1,010,538 |
$626,581 |
|
General reserve |
$7,805.255 |
$7,174,719 |
|
Investor’s fund |
$48,529,932 |
$43,219,243 |
|
Loans |
$84,119,287 |
$95,616,961 |
|
Distributions to the Trustee |
$380,002 |
$500,000 |
The AIDFs financial performance and position has continued to strengthen over 2015-16. The Board manages AIDF’s security and operations safely and prudently. This is evidenced by:
- The continued strong financial performance of the AIDF since its inception with Total Comprehensive Income of $1.011 million in 2016;
- The AIDF has established and built its Reserve (Net assets) to $7.8 million;
- The AIDF’s Investor funds have continued to grow and that growth has come from both Agencies and individuals;
- The Loan portfolio is closely monitored by the Board;
- All funding and therefore loans are now secured by direct mortgages which has strengthened and clarified the security position of the AIDF;
- The AIDF’s financial strategy includes maintaining commercial lines of credit. The refinancing of the external facilities was completed by 31 March 2016.
The financial facilities now in place are:
-
a $40 million overdraft facility with the Australia and New Zealand Banking Group, and
-
a $20 million overdraft facility with Westpac Banking Corporation.
- The expertise and quality of the AIDF Board with a majority of independent directors; and
- The guaranteed of the fund by the Diocese of Canberra and Goulburn contained in section 16 of the AIDF Ordinance.
I wish to acknowledge the enthusiasm and professionalism brought to their roles by Board members and the AIDF staff. The AIDF is fortunate to have people of such calibre working to ensure the success of the organization.
I look forward to working with the Board and the AIDF team in the coming year as we work to continue to strengthen the organisation and its performance.
Trevor Ament
Executive Director
29 August 2016