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Investing Wisely
The Trust continues to focus
on maintaining the value of the
capital fund over time so that
it is worth just as much as for
future generations as it is today.
As a signatory to the Principles
for Responsible Investment
(www.unpri.org), the Trust also
continues to think about the
sustainability of its investment
portfolio.
Over the last five to six years, the Trust has maintained
strong investment discipline to rebuild the fund to a
target level of reserves, such that the Trust can reasonably
expect to maintain a consistent level of donations despite
fluctuations in investment markets. For the forthcoming
year, the level of reserves has enabled a significant increase
in the donations budget.
The Trust completed its annual review of its investment
objective and strategic asset allocation but made no changes
in either asset allocation or fund managers during the year.
The investment objective continues to be:
a.
Wherever possible, improve environmental, social
and governance conditions around the world.
b. Maximise the total amount of income that can be
provided by the investments of the Trust over the
long term subject to a prudent and appropriate
level of risk.
c.
Maintain the real value of the capital of the Trust
with regards to both inflation and population
growth in the region.
d. Protect inter-generational equity with regard to
the capital of the Trust and the amounts available
Strategic Allocation of Financial Assets
for distribution on an annual basis.
To achieve the above objectives the investment
strategy will seek to provide a minimum return of
[CPI + population growth] + 3.5% per annum over a 7
year period (after fees and operating expenses) with
moderate volatility of returns.
The Trust’s investments returned 11.6% over the year, bringing
the value of the fund to over $331million. Over the year,
both asset allocation and manager selection added to the
performance over benchmark. Strong absolute returns from
most asset classes, but particularly from global and Australasian
equities and infrastructure, contributed to the performance.
75%
Total Growth Assets
Australasian Equities
10%
New Zealand
Private Equity
5%
Global Equities
25%
Property
17.5%
Infrastructure
10%
Credit
7.5%
NZ Fixed Interest
5%
Global Fixed Interest
15%
Cash
5%
25%
Total Defensive Assets
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