27 Sep 2019

Today's business news: What you need to know

3:20 pm on 27 September 2019
Reserve Bank governor Adrian Orr.

Adrian Orr Photo: RNZ / Dom Thomas

Latest - The Reserve Bank (RBNZ) has bought $US100 million worth of green bonds through the Bank of International Settlements - the global central bank grouping.

The bonds are invested in projects with clear environmental or climate change benefits.

RBNZ governor Adrian Orr says the investment, which is coming from its foreign exchange reserves, fits the bank's policy of backing responsible, sustainable investment with long-term benefits in line with the government's climate change policies.

Auckland Council's surplus slumps

The Auckland Council annual surplus has slumped as a fall in interest rates has hit the value of investments.

The group's net surplus of $175 million for the June year compares with $660m the year before.

Auckland Council says a significant fall in interest rates cost it $654m.

The group's revenue rose 7 percent over the year to nearly $4.9 billion, with costs up 5 percent, while borrowing pushed the debt level to $8.7bn.

However, the council says cash flows from operations are strong.

Kiwisaver providers drop fees

Mounting pressure has seen KiwiSaver providers drop their fees in the past year, according to research by Canstar.

It found fees for growth funds fell 8 percent, with fees for balanced funds down 6 percent, and conservative funds down 4 percent.

Average net returns across all of the types of funds fell too.

Christchurch Airport profit dives

Christchurch International Airport's annual profit has fell 35 percent to $57.5m.

Revenue was down 13 percent to $200m, despite a slight rise in passenger numbers and a lift in earnings.

Its decline was due to a significant reduction in the value of its investment properties.

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