6
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.
The Trust’s investments returned 11.1% over
the year, which brought the Trust fund to over
$307million at year end. The Trust fund has been
restored in respect of inflation and population
growth since the falls in value during the Global
Financial Crisis. The Trust is at the point of having
rebuilt the reserves required to maintain a higher
and consistent level of donations in the face of the
inevitable fluctuations in financial markets.
The Trust regularly reviews its investment objectives
and strategic asset allocation and monitors fund
performance closely. Over several years, the Trust
has diversified its investment portfolio significantly
to strengthen its returns and lower risk in the face of
uncertain financial markets around the world.
During the financial year, the Trust further
diversified its strategic asset allocation by making
an allocation to global credit and increasing and
diversifying the allocation to global property. The
Trust appointed a global credit manager and a new
unlisted property manager, and transitioned part of
its global equities investment to a new fund manager.
Strong returns from New Zealand and global equities
provided a strong absolute return in the fund over
the financial year. At 11.1%, the Trust fund also
outperformed the benchmark portfolio for the fund,
which returned 9.9%.
The Trust continues to hedge almost all of its offshore
investments against currency fluctuations, though it
has taken a tactical position in light of the high value
of the New Zealand dollar over the year.
As a responsible asset owner, the Trust considers the
ways in which each of its fund managers addresses
environmental, social and governance issues in their
investment decision processes. The Trust continues to
be a signatory to the Principles for Responsible
Investment
Trust Waikato is the guardian of a
significant capital fund on behalf of current
and future generations in this region.
Investing wisely
Strong returns
from New Zealand
and global equities
provided a strong
absolute return in
the fund over the
financial year.
Strategic Allocation of Financial Assets
NZ Fixed Interest
Global Fixed Interest
Cash
15%
5%
5%
25%
Total Defensive Assets
Australasian Equities
NZ Private Equity
Global Equities
Property
Infrastructure
Global Credit
10%
5%
25%
17.5%
10%
7.5%
75%
Total Growth Assets
