Treasury and Investment Services
Uniting for the Common Good
Neil King
Executive Director
Presentation 2013
1
Treasury and Investment Services
Investing and Managing funds with advisory, authorisation and oversight in
matters relating to investments and borrowing in all parts of the Synod
Treasury and Investment
Services Umbrella
•
Uniting Financial Services (Brand
name)
•
Compulsory Borrowing through UCTAL (minute
114/09SC)
•
Community of Faith Investments
(UCAPT)
•
Investment Services
•
UCTAL
•
Treasury Services
•
Ethical Investing
•
Property Development Advice to Church Orgs
•
Compulsory Deposits (minute 52/00C)
•
Financial Risk Advisory Services
Presentation 2013
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Investments must involve numbers …
42
30m
152m
1, 950
110m
11k
280
1
35m
9
5
165m
225m
4.8m
722m
540
1.019bn
171m
Presentation 2013
100m
300m
5+1
3
3
Our Story…
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Synod 2011 mentioned challenges and
re-imagining …
Regulatory:
How we respond:
APRA, ACNC, (UBIT) Aged
Care, Gonski( Schools),
WHS, IFRS
Faith, Hope, Love,
Stewardship,
Integrity and Honour
Economic & Other:
T and I beliefs:
GFC lingering, Europe,
Election, Resources,
Basel 3, Investment
Returns
To be Purposeful,
Prudent, Inclusive
and Generous
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Synod 2013 re-imagining …
OR
1 Cor. 12:15-23
Now if the foot should say, “Because I am not a hand, I do not belong to the body,” it
would not for that reason stop being part of the body. 16 And if the ear should say, “Because
I am not an eye, I do not belong to the body,” it would not for that reason stop being part of
the body. 17 If the whole body were an eye, where would the sense of hearing be? If the
whole body were an ear, where would the sense of smell be? 18 But in fact God has placed
the parts in the body, every one of them, just as he wanted them to be. 19 If they were all
one part, where would the body be? 20 As it is, there are many parts, but one body.
15
The eye cannot say to the hand, “I don’t need you!” And the head cannot say to the feet,
“I don’t need you!” 22 On the contrary, those parts of the body that seem to be weaker are
indispensable, 23 and the parts that we think are less honourable we treat with special
honour.
21
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Why a smaller distribution?
•
Distribution suspended after distributing average of $12m
since start of GFC – generously continued in spite of lower
profitability average of $1.8m over same period.
•
Banking Covenants required “Net Worth of $30m” against
our net worth at June (capital=retained earnings etc.) of
$35m
•
We should have capital closer to $100m for our business
activities.
Presentation 2013
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•
Through the new restructure, as approved by SSC, UR & UCTAL
Boards, the Property Trust and UCTAL will borrow $150m as
contributory capital and liquidity.
•
Borrowing peaked at $300m with the facility now at $225m which is
guaranteed by the Property Trust.
•
Of the $225m, we have borrowed an average of $171m for the last
3 years.
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The amount that the Property Trust is borrowing is not for distribution but
allows for a liquidity and capital position relative to business activities.
It should also assist in possibly allowing a distribution in 2013/2014.
What else might help to allow a distribution?
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We are improving and revitalising our ….
Processes, Partnerships, Prudential and Portfolio Management
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Introducing some Structural Changes….
• Since shortly before last Synod we have had significant changes to the
Board with new appointments and a new Chair
•The Board has recruited directors with risk management and credit skills to form
nucleus of a new look Credit Committee
•Internal audit functionality outsourced to KPMG
•New Executive Director
•Imminent change to structure, capital position and banking facilities
•New team with property lending skills to improve management of loan portfolio
•3 new team combinations with a Prudential team, a Portfolio and a Partnership
team ….
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De-risking and re-risking ….
$800
$700
Commercial
Lending
reduction of
$111m
Sep-11
Mar-13
$600
Property
Portfolio
reduced by
$31m
$500
$400
$300
Equities
reduction of
$23m
$200
$100
$111
$34
$0
Commercial
Mortgages
Presentation 2013
Church Loans
Equities
Property
Cash & Liquid
Securities
High Yield Investments
12
By helping our Partners to develop ….
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We also need your help ….
Monthly UCAPT Investment Liability Balances ($M)
185.0
180.0
175.0
170.0
165.0
160.0
155.0
150.0
145.0
140.0
135.0
UCAPT Investments
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30-Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
178.1
177.0
171.8
163.9
163.2
160.3
158.2
156.1
154.0
152.4
Apr
May
Jun
14
We also need your help ….
•Your investment can, and will make a difference
•Community of Faith Debentures are invested in the Property Trust
•Our team offers a caring service and is ready to assist
•Hopefully you visited our UFS stall or will make suggestions via our feedback
forms on your table
•By filling in these feedback forms you can help direct us to where we go next.
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So that’s our Story…
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To conclude ....
280
540
1,950
110
1
9
42
Presentation 2013
5
17