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Chairman’s Review
Kia Ora, Greetings
The conclusion of our 2014 financial year sees us approaching a major milestone for the Rotorua Energy Charitable Trust as we turned 20 on 3rd June 2014.
For two decades, my fellow Trustees and those who served before us have worked to achieve the Trust’s vision of helping to create “a safe and vibrant district, where people are proud to live, work, invest, play and educate their families”.
So, what difference are we making? We believe a significant one!
During the past 20 years, we’ve made 4,288 community grants totalling $90.3 million. $5.8 million of this funding has been provided by way of Tertiary Study Awards to support 841 students from our district.
During the past year alone, we’ve provided 300 community grants totalling $2.6 million and helped 40 students pursue a higher education with $281,000 in Tertiary Study Awards.
Every dollar we grant and every scholarship we provide has had a positive effect – not only on individuals young and old, but also on Rotorua as a collective community.
As we look back on the past year in particular, we’ve made steady progress toward achieving our vision.
Some highlights include:
Calling for Major Grants:
Recently we called for expressions of interests from organisations throughout the Rotorua District with ideas for capital projects that require an injection of major funds in excess of $750,000. This is the first request the Trust has made for expressions of interest related to major project ideas since 2006.
Untagged Funding a Success:
In 1998 the Trust commenced granting community groups funding for operational costs. That year the Trust granted $75,000 to support 25 community groups. This year 100 community groups have shared in more than $500,000.
This funding helps community groups fund costs that keep their doors open such as salaries and wages.
Because there are essentially ‘no strings attached,’ the untagged funding allows groups to put the grant
toward their area of greatest need.
Elections Held Unopposed:
In September, all current Trustees stood for re-election and each was re-elected unopposed. This is the first time in the Trust history this has happened. Each of us thanks the Rotorua community for their confidence in our service and we look forward to working on your behalf for another three-year term.
The Trust’s ability to make a difference is possible due to the investment returns that the Trust receives from its “Perpetual Capital Fund” which is managed by our wholly owned subsidiary, Perpetual Capital Management Limited (PCML). The fund returned 12.4% over the year resulting in a current portfolio value of $135.03 million after meeting investment management expenses and distributions to the Trust.
Additionally, our investment portfolio achieved a significant milestone this year in that we exceeded our reserve target of $131.76 million for the first time since the global financial crisis took hold. During the recession, the Trust continued to provide grants and study awards – although to a lesser degree than prior to the financial crisis.
Now that we’ve reached our reserve target once again, this has given Trustees the ability to be able to provide even more grants to the Rotorua District community.
I want to thank the PCML investment team. It is their prudent strategy that allows the Trust to continue investing millions each year and working toward our goal of creating a healthy community from the inside out.
In closing, I would like to sincerely thank our small but dedicated staff members, CEO Stuart Burns, and all my fellow Trustees for their ongoing efforts and continued support throughout the year.
Thank you.
Grahame W Hall, QSO, JP
Chairman