Chief Executive´s
Report
Over the 2012/2013 financial
year, the Trust has maintained
its focus on responsible
guardianship, effective
philanthropy, collaboration
to nurture and celebrate
this tremendous region, and
continuous improvement of
our processes so that they are
accessible, fair, thoughtful and
professional.
Investing wisely
The 13.24% return on the Trust’s
investments over the year, together with
continued discipline in both donation and
operational expenditure, enabled the Trust
to make significant progress in restoring
the value of the fund following the falls in
financial markets during the global financial
crisis. At over $285million at year end, the
Trust fund has been restored in respect of
inflation and population growth. Over the
coming year, it is hoped that further capital
growth will restore the level of reserves
required to ensure consistent levels of
donations in the face of future fluctuations
in financial markets.
Strong returns from New Zealand,
Australian and global equities provided a
strong absolute return in the fund over the
financial year. All asset classes performed
positively, with almost all of the Trust’s fund
managers outperforming their benchmarks
since inception of their management of
Trust Waikato funds. Overall, the Trust fund
outperformed the benchmark portfolio for
the fund.
The Trust regularly reviews its investment
objectives and strategic asset allocation
and monitors fund performance closely.
Over several years, the Trust has diversified
its investment portfolio significantly to
strengthen its returns and lower risk in
the face of uncertain financial markets
around the world. During the financial
year, the Trust further diversified its
strategic asset allocation by making an
allocation to NZ private equity. The Trust
continues to hedge almost all of its offshore
investments against currency fluctuations.
As a responsible asset owner, the Trust
considers the ways in which each of its fund
managers addresses environmental, social
and governance issues in their investment
decision processes.
Every $1 Trust Waikato donated in 2012 was split between these sectors
3% environment
27% social services
3% Tangata Whenua
21% sport and recreation
19% economic and
community development
11% art and culture
5% health
5% law, business and
religious associations
5% education and research
1% funding and voluntarism
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C H i e f E x e c u t i v e ’ s R E P O R T
