Uniting Financial Services assures investment security
In light of recent market events and in response to recent print media speculation, Uniting Financial Services would like to assure all its investors that:-
All investments with Uniting Financial Services remain secure;
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We have no exposure to failed financial entities in the United States or in Australia; and
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We remain well capitalised and funded for what further challenges investment markets may have for us.
With the important role UFS undertakes for the Uniting Church in Australia, Synod of NSW and the ACT, great care and diligence is taken with all investment decisions, supported by a robust governance structure and compliance regime.
Investments by individuals with Uniting Financial Services remain guaranteed by the substantial assets and resources of the Uniting Church in Australia Property Trust (NSW), the body constituted to hold the property assets of the Uniting Church in NSW.
Our investment strategy combines our ethical principals with an investment philosophy of avoiding high risk non transparent asset classes; hence we had no investment in Collateralised Debt Obligations (CDO) products that the recent media has focused on, we do not hold any investments in overseas stock markets and, as at the 30 September 2008, our investments in listed securities on the Australian stock market totaled 4% of our investment portfolio of $1.21 billion dollars.
Uniting Financial Services holds no exposures in Australian Listed Property trusts, with the aggregate market value of its direct commercial property assets having increased in value for the twelve months to 30 June 2008.
We remain well funded in meeting our strategic initiatives for the future as prior to the credit squeeze in late 2007, we secured very favourable funding terms from Westpac and the Commonwealth Banks for a further two and three years respectively. Uniting Financial Services is well capitalised having significantly increased retained earnings to $122 million as at June of this year.
Please also refer to our “Frequently Asked Questions” section attached. Should any Uniting Church organisation or investor have any concerns they are invited to contact us on 1300 133 673 and we will be only too happy to answer any concerns you may have.
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Tony DiMauro
Chief Executive
Uniting Financial Services
1 October 2008
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FREQUENTLY ASKED QUESTIONS ABOUT INVESTMENT SECURITY | |
| Q1 |
Has Uniting Financial Services (UFS) suffered any losses directly associated with failed institutions in the US or Australia?No.Uniting Financial Services has received several queries concerning its investment decisions and management of investments and balance sheet and wishes to assure its investors that it has no exposure to any of the failed entities highlighted by the media. All investment decisions are supported by a robust governance structure and compliance regime. Our investment strategy combines our ethical principles with an investment philosophy of avoiding high risk non transparent asset classes. |
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Q2 |
Is my investment in UFS secure?The Uniting Financial Services balance sheet of $1.21 billion dollars which includes retained earnings of $122 million dollars in June of this year supports all investor funds lodged. All investment decisions are supported by a robust governance structure and compliance regime and strategies of avoiding high risk non transparent asset classes.Uniting Financial Service is also the holder of Australian Financial Service License No. 292186, requiring it to meet very stringent capital and liquidity balance sheet reporting covenants on a monthly basis. In addition to the balance sheet of Uniting Financial Services, all investments by individual investors with Uniting Financial Services are guaranteed by the substantial assets and resources of The Uniting Church in Australia Property Trust (NSW), the body constituted to hold the property assets of the Uniting Church in NSW. All investments by Uniting Church entities with Uniting Financial Services ultimately vest in The Uniting Church in Australia Property Trust (NSW). |
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Q3 |
If the US crisis continues, will my investment in UFS be secure?Whilst there may be slight shifts in the valuation of investment portfolio, Uniting Financial Services holds only 4% of the value of its investment portfolio in securities listed on the Australian Share market, with the remainder in secure fixed interest cash products, direct property investments and secured commercial and church loans. The market value of our direct property investments have increased over the past twelve months in direct contradiction to the performance of the Listed Property sector. We remain very confident of our ability to withstand significant and further prolonged volatility in investment markets.All investment will continue to be managed with great care and diligence and our investment decisions and strategy will continue avoiding high risk asset classes. |
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Q4 |
Does UFS have a direct exposure to Collaterised Debt Obligations (CDOs) that are linked to the sub prime crisis in the US?No, UFS has not invested in such assets. |
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Q5 |
What assets does UFS invest in?UFS has a diverse range of investments made up of first mortgage secured commercial property and church lending, Investment grade and liquid fixed interest securities, direct property investments in the capital cities of Sydney, Melbourne and Brisbane, cash held with the four major Australian banks and investments in the listed securities on the Australian stock market. |
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Q6 |
How is UFS coping in this environment?UFS remains well capitalised with retained earnings to the value of $122 million dollars recorded in June of this year. UFS remains well funded having secured very favorable funding terms from Westpac and Commonwealth Banks for a further two and three years respectively. Uniting Financial Services loan arrears (from its borrowers) remain manageable with the number and market value of non performing loans associated with our investment portfolio actually reduced from 2007 to 2008. |
