2408 NEW ZEALAND GAZETTE, No. 86 4 AUGUST 2014

TRUSTEES’ REPORT

On behalf of the Trustees I am pleased to present the Annual Report of the Trust for the year ending 31 March 2014.

The past financial year provided an environment in which the Trust was able to consolidate its investment portfolio to realise potentially better financial performances from its investments for the future. This has allowed the Trust to continue to meet the needs of our communities for financial assistance.

DONATIONS

During the year the Trust approved 629 donations, totalling a net $4.6 million. The number of applications received during the year decreased to 792, a fall of nearly 4.7% over the previous year. The Trust approved 82% of those applications, while 141 applications (18%) were declined and 22 applications (3%) were withdrawn by the applicant. All applications received, except those withdrawn by the applicant, were presented to the Board for consideration.

The average request of $10,518 was lower (prior year $13,506) than the previous year, while the average donation amount approved increased, from $5,366 to $5,490. As a result the ratio of the average request to the average donation decreased slightly for 2013/14 to 1.92. This excludes ongoing donations such as the Regional Sports Trusts and Summer Reading Programme.

The Trust values its unique relationship with the four Regional Sports Trusts operating within our region, and the funding we provide to them continues to generate strong benefits for their communities. The support for the Regional Sports Trusts has remained the same from the previous year. The Trust’s Summer Reading Programme, has now completed its 17th successful year of operation. The Summer Reading Programme now covers a wider age range than it did when it started, as well as now offering a condensed mid-winter programme. The Trustees appreciate the continued efforts of the staff at the participating libraries, particularly those on the organising committee, in offering this programme – we recognise that the success of the programme would not be possible without their on-going support. A further series of ‘Maths is Fun’ programmes was supported by the Trust, in several locations throughout the region during the school holidays.

FINANCIAL

As part of its strategy, the Trust reviews its investment portfolio on an annual basis. Following this review the Trust has begun adjusting its investment strategy to place greater emphasis on income rather than growth, to ensure its continued ability to meet community requests for funding, which can only be done from realised income. The Trust has also determined to move away from managed fund investments to direct holding of equity investments (shares). Part of this strategy is to invest in Private Equity partnerships with New Zealand Companies, in New Zealand Companies. This change in strategy was implemented in the early part of the 2013/2014 financial year.

As at 31st March 2014, the Trust’s net assets were $148.2 million, which was an increase of $2.6 million from the previous year. The net gain from investments for the year was $9.1 million, which after the payment of administration expenses and donations led to the Trust’s overall net surplus of $2.6 million. The surplus includes $2.1 million of unrealised losses on our investments, related to changes in currency values as well as market movements.

The Trust’s net assets were $8.0 million above the adjusted capital base of the Trust of $140.3 million. The Trust’s, operating expenses for the year were 9% above budget, at $1.9 million, slightly higher than the previous year. In part this increase in operating expenses was due to the higher than normal costs incurred in Brokerage Fees. These fees were the result of the change in the investment portfolio during the year.