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Tena koutou katoa –
Greetings to you all.
Trust Waikato has a vision of resilient and vibrant
communities throughout the region it serves. In
contributing to that vision, the Trust aims to invest wisely
the capital fund with which it is entrusted and to donate
effectively the proceeds of those investments to benefit
communities.
Chair’s Report
Investing Wisely
Trustees see their role as guardians of the capital fund.
We aim to grow the fund to keep pace with both inflation
and population growth in the region, without taking on
undue risk. Established in perpetuity, the Trust strives to
ensure that the fund will be worth just as much for future
generations as it is for our communities today.
The Trust regularly reviews its investment objectives
and strategic asset allocations, and monitors fund
performance closely. Investments are diversified across
a range of asset classes: global equities, Australasian
equities, private equity, unlisted property, infrastructure,
global credit, global fixed interest, New Zealand fixed
interest and cash.
As an asset owner, the Trust takes its investment role
seriously, and wants to ensure its investment returns
are sustainable and beneficial for communities and our
environment. The Trust continues to be a signatory to
the Principles for Responsible Investment (PRI). The PRI
provide an aspirational set of guidelines for ensuring that
environmental, social and governance issues are taken
into account by investors.
I am pleased to report that, despite market volatility, the
Trust’s investments have continued to experience steady
growth, returning 7.6% in the financial year. This is well
above the benchmark return of 5.0% for the portfolio.
As at 31 March 2016, Trust funds were valued at over
$343 million, with healthy reserves enabling us to make
consistent levels of donations. The Trust set a record
$11.2 million donations budget in 2015. Due to the level
of reserves, we have set another strong budget for 2016.
Total Income Assets 25%
Total Growth Assets 75%
STRATEGIC ALLOCATION OF FINANCIAL ASSETS
5
%
CASH
5
%
NZ FIXED
INTEREST
15
%
GLOBAL FIXED
INTEREST
5
%
NZ PRIVATE
EQUITY
7.5
%
GLOBAL
CREDIT
10
%
AUSTRALASIAN
EQUITIES
17.5
%
UNLISTED
PROPERTY
25
%
GLOBAL
EQUITIES
10
%
INFRASTRUCTURE
"To the many groups and volunteers within our
region, I thank you for making a real difference
in our communities. It is a privilege to serve
you and to help make our communities more
resilient and vibrant."