28 AUGUST

NEW ZEALAND GAZETTE

3215

Although off-shore equities were largely responsible for the loss, our manager achieved a better than index result, whereas the manager responsible for New Zealand equities failed to achieve targets related to that market. For this reason, the trust appointed Forsyth Barr Frater Williams as its new manager for the forthcoming year to manage this part of its investment portfolio.

Trustees spent considerable time and effort in grappling with its investment policy, and acting upon the advice of its investment consultant and studying past trends, they are optimistic that improved results will be achieved within the relatively near future.

It would be appropriate to refer to a recent survey which canvassed the views of a number of respected professional managers to gauge the forecast returns of each class of asset class before tax and expenses.

One of the most important factors is the improved forecast performance of both New Zealand and overseas equities. Hopefully I can report an improved position in my next annual report.

Donations

Donations authorised during the year amounted to $723,410, including a further district secondary schools’ technology grant of $248,413, compared to $1,555,856 the previous year.

Donation Assessment Process

Last year I referred to the district socio-economic survey which was to be carried out this year. The purpose of the survey was to assist trustees in deciding where best to channel its donations for the wider community to benefit. At the time of writing this report, the final draft copy of the survey has now been received.

Trustee Appointment

During the year, Mr Laurance Cooney, of Ashburton, retired from the office of trustee. Mr Cooney was a long-standing trustee whose experience and wise counsel made a most important contribution of the affairs of the trust.

Mrs Heather Sim of Methven was appointed to replace him, and her knowledge of the Methven and Ashburton districts will prove to be valuable.

Appointment of Auditor

The trust appointed Martin Wakefield, Chartered Accountants of Timaru to act as auditors to the trust.

Trustees’ Training Day

On 26 August 2002, trustees spent a complete training day under the leadership of a professional advisor.

Some of the subjects covered were:

• Legal responsibilities of trustees
• Strategic planning
• Alternative ways of improving the donation process
• Understanding of legal obligations

Appreciation

Trustees spent a challenging and frustrating year in struggling with the complexities of the investment sector. They all have diverse experience and knowledge, and make worthwhile contributions to the affairs of the trust, and I know that they would prefer to be involved in deciding where best to channel donations in the district, as distinct from spending the majority of their time on investment issues.

However, these functions go hand in hand, and I express my sincere thanks to them for working together to achieve their main objective – making the district a better place to live in.

In all its activities, the trust relies on the co-operation and experience of its administrative staff, and the way they have diligently carried out their responsibilities during the year has been particularly commendable.

P. F. MCILRAITH, Chairperson.

Date: 12 August 2003.

Consolidated Statement of Financial Performance for the Year Ended 31 March 2003

| Less expenses— | | | | |
| Direct investment expenditure:|
| Management fees | 78,554 | | 182,782 |
| Consultancy fees | 42,431 | | 21,316 |
| Total direct investment expenditure| 120,985| | 204,098 |
| | 902,713 | | 1,126,214 |

| Less operating expenditure:|
| Advertising | 7,834 | | 9,855 |
| Auditors’ fees | 4,050 | | 4,050 |
| Interest | 184 | | 3 |