T R U S T W A I K A T O
A N N U A L R E P O R T 2 0 1 1 / 2 0 1 2
Investing
Wisely
Trust Waikato
was established by government statute in 1988 to hold the
shares of Trust Bank Waikato (formerly the Waikato Savings Bank).
Its financial resources exist because for several decades local people
banked with the local community bank.
In 1996, the Trust sold its banking shares and invested in a range of financial assets. The
initial value of the capital fund in 1996 was $169.8million. At 31 March 2012, that capital
fund had grown in value to over $261.5million. Over the 24 years of the Trust, more than
$125million has also been donated to communities around the Trust region.
Trustees see their role as guardians, or kaitiaki, of the capital fund for both current and
future generations in this region. Ideally the Trust’s capital fund will be worth just as much
for our grandchildren and their grandchildren and their grandchildren, as it is for us today.
That means investing wisely to grow the value of the fund to keep up with inflation and
population growth, as much as possible, while still donating consistently to assist local
communities today. Sometimes that’s a delicate balancing act.
During the year the Trust formally reviewed the governance of its investments and finances
as part of our commitment to ensure sound governance of all aspects of the Trust’s work.
For the year ended 31 March 2012, the Trust’s investments returned 6.07%. During the
year, the Trust completed implementing the following strategic asset allocation:
strategic
asset
allocation
The Trust continues to be a signatory to the Principles for Responsible Investment (PRI),
an initiative of the United Nations and the investment community. The PRI provide an
aspirational set of guidelines for ensuring that environmental, social and governance issues
are taken account of by businesses and investors. The Trust takes seriously its role as an
asset owner and wants to ensure its investment returns are sustainable and beneficial for
communities and our environment.
In May 2011 the Trust jointly hosted, together with the Responsible Investment Association
of Australasia (RIAA), a Shareholder Investment Forum. A number of overseas shareholder
engagement organisations came to New Zealand to talk about responsible investment
practice. The focus was on the ways investors can engage with the companies in which
they invest to encourage sustainable practices.
The Trust fund is increasingly invested in funds managed with ‘responsible investment’
issues in mind, whether that be by excluding certain kinds of investments or by choosing to
invest in assets adding to the sustainability of our world. In the coming year, the Trust will
continue to implement its commitment to responsible investing.
Ideally the Trust’s
capital fund will be
worth just as much for
our grandchildren’s
grandchildren, as it is
for us today
I n v e s t i n g w i s e l y
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