Finances recover Grants budget confirmed
The Trust has now recovered from the effects of the 2008/09 global financial meltdown and the grants process has returned to normal.
TrustLine, June, 2010
The Trust enjoyed a 28.2% return on investments, or $236 million, for the year to March 31, 2010. This was the highest percentage return ever, although it was off a low base because the value of investments fell below $800 million the previous year.
During the financial turmoil the Trust remained confident of the underlying value of its investments and no changes were made to the investment profile. Asset values rose as markets recovered.
As a result, Trustees have decided to set a $45 million grants budget for the year through to March 31, 2011. This will be distributed across the 10 funding sectors, including Community Building Projects, where the Trust helps with capital building costs for community projects.
Returns on investments remain vital for the Trust’s operations because the revenue stream funds the grants budget. Work is now underway to smooth out the effects of market fluctuations so a stable grants budget can be guaranteed from year to year.
The Trust has contracted international investment advisor Cambridge Associates to help guide investment decisions. Cambridge Associates has already begun work to benchmark the Trust’s returns against similar institutions around the world and help set up systems to remove short-term volatility from the grants budget.