Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Investment Performance – As Good as Gold

“Investment Performance – As Good as Gold”

The West Coast Development Trust (WCDT) has produced its fourth successive year of returns which have outperformed industry benchmarks for its asset allocation. The Development Trust was capitalised with $92 million received from the Crown in 2001 – this was its part of the $120 million adjustment package distributed to the region to compensate for the loss of access to indigenous forestry in the 1990s.

The major contributor to profit was an outstanding $9.8 million received in investment income, with an overall yield of 9.3% on funds managed. The investment income was $3 million (42%) above budgeted levels for the year.

The Trust invests it’s assets based on the following allocation targets:

Statement of Investment Policy and Objectives

TARGET ASSET ALLOCATION LEVELS

Class 2004-05
Australasian Equities 5%
Australasian Listed Property 5%
International Equities 10%
Active Trading Fund 5%
Alternative Investments 5%
NZ Fixed Interest 60%
Cash 10%
Total 100%

The Development Trust has continued to emphasise stability of income, absolute positive returns and the maintenance of liquidity in its capital portfolio, to ensure it has an earning stream and capacity to undertake its private equity and lending portfolios within the West Coast region.

Last year The Development Trust approved West Coast distribution investments of a total of $12.7 million into 18 clients. Since its establishment, The Development Trust has processed over 450 enquiries, and analysed 85 client applications, and has approved over $36 million of investments within the region.
The West Coast Development Trust produced an excellent Group operating profit of $7.2 million for the year to 31/03/05. It allocated $3.8 million of the operating profit into community distributions and projects, the largest of which was a $1.8 million regional literacy project to be carried out over three years.

The bumper profit has been conservatively utilised in the Trust accounts this year by allocating $2 million into provisions against any future potential adverse investment outcomes.

The Group surplus after provisions and community distributions was $3.4 million, which gave a 3.28% growth on the fund, which brings the Group net equity to $110 million at 31 March 2005.

In the last four years The Development Trust has achieved operating profits totalling over $25 million, and from this has allocated over $5 million into community projects and built a $2 million provision, adding over $18 million to it’s opening equity.

It now holds over $110 million in funds.

The West Coast region has had its 21st successive quarter of growth and in recent National Bank Surveys has consistently been one of New Zealand’s fastest growing regions. “This is an outstanding turnaround over past performance and reflects our region’s strong and diverse economy,” says Development Trust chair Frank Dooley.

“However this growth leads to its own set of challenges which are around meeting shortages of skills, labour, housing and in supporting enhancement in infrastructure services such as transport, health and education.”


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news