Growing your Gift Account

Your donations can earn returns tax-free until you’re ready to grant them, helping you create a bigger impact over time.

Gift Accounts with balances over $20,000 NZD attract tax-free investment growth, helping your donations do more good over time.

Choosing an investment option

By default, your Gift Account balance (when over $20,000) is invested in our rolling term deposits, guaranteeing modest growth whilst preserving capital. You can choose to keep some or all of your balance in term deposits, or you can put some or all of it in another investment option.

Make sure to consider:

• Risk tolerance: Our pooled and adviser-managed funds are designed to perform well over the long-term, but like any investment, you may see short-term drops in value.

• Time horizon: If you're looking to distribute a large portion of your Gift Account's funds in the next five years, consider keeping that portion in term deposits, to preserve the capital.

Once you've decided how you'd like to invest your Gift Account funds, or if you'd like to change your investment plan, contact us.

Investment options

We offer three investment options for Gift Accounts:

• Term deposits

• Pooled socially-responsible investment funds

• Adviser-managed portfolios

Investment growth is calculated monthly and credited to your Gift Account balance for future gifting.

Term deposits

By default, Gift Accounts with balances over $20,000 NZD are pooled and invested in a series of rolling term deposits, giving:

• Guaranteed but modest growth

• Minimal risk of capital loss

• Simple, stable management

If you prefer capital stability, and intend to grant out your funds in the short-to-medium term, this is the best option for you. However, your funds wouldn’t grow as much as we’d expect them to in a well-performing investment portfolio.

Pooled socially-responsible investment funds

Our pooled socially-responsible investment (SRI) funds take account of a range of social and environmental factors and exclude investments in weapons and armaments, nuclear weapons, tobacco, child labour, alcohol, gambling, pornography, fossil fuel stocks, and factory farming.

Funds invested in the Growth SRI and Conservative SRI funds are managed on behalf of The Gift Trust by Bloomsbury Associates, and held by FNZ as custodian. The value of funds invested in the funds may go down as well as up.

The Gift Trust recommends you obtain independent financial advice before making investment decisions.

SRI Growth fund

Our SRI Growth fund is a diversified portfolio allocated to 80% equity and property, and 20% fixed income and cash. It is likely to achieve higher returns over 10 years or more, but is expected to show higher volatility in the value of funds held throughout that period.

Investment fees: 1.3% p.a. Projected long-term return (after fees): 6.12% p.a.

Asset class	Target allocation (%)	Investment products
Australasian equities	7.8%	Perpetual Ethical SRI Fund (3.9%) Australian Ethical Investment Ltd Australian Shares Fund (3.9%)
International equities	68.3%	Australian Ethical Investment Ltd International Shares Fund (22.8%) Pathfinder Responsible Investment Fund Wholesale, NZD hedged (45.5%)
New Zealand property	2.8%	Goodman Property Trust (0.9%) Kiwi Property Group Limited (1%) Precinct Properties New Zealand Limited (0.9%)
International property	1.1%	Pathfinder Global Property Trust
Fixed interest	18%	Vanguard Ethically Conscious Global Aggregate Bond Index Fund (9%) Direct term deposits & NZ Government Stock (9%)
Cash account	2%

SRI Conservative fund

Our SRI Conservative fund is a diversified portfolio allocated to 30% equity and property, and 70% fixed income and cash. It is likely to achieve higher returns than bank deposits over a five-year period and with lower volatility than our SRI Growth fund.

Investment fees: 1.01% p.a. Projected long-term return (after fees): 5.16% p.a.

Asset class	Target allocation (%)	Investment products
Australasian equities	3.8%	Perpetual Ethical SRI Fund (1.9%) Australian Ethical Investment Ltd Australian Shares Fund (1.9%)
International equities	24.4%	Australian Ethical Investment Ltd International Shares Fund (8.1%) Pathfinder Responsible Investment Fund Wholesale, NZD hedged (16.3%)
New Zealand property	1.3%	Goodman Property Trust (0.4%) Kiwi Property Group Limited (0.5%) Precinct Properties New Zealand Limited (0.4%)
International property	0.5%	Pathfinder Global Property Trust
Fixed interest	68%	Vanguard Ethically Conscious Global Aggregate Bond Index Fund (34%) Direct term deposits & NZ Government Stock (34%)
Cash account	2%

Adviser-managed portfolios

If you work with a financial adviser, you can choose to have your Gift Account funds managed according to a personalised investment strategy. All adviser-managed portfolios are reviewed and approved by The Gift Trust to ensure alignment with our ethical and governance standards, giving you tailored growth while maintaining philanthropic integrity.