Quarter One


What We Do


Describing exactly what it is we do at Trust Management has always been challenging as our services are tailored to our clients unique needs.

Seeing our clients succeed is what gives meaning to the work we do, and why we relentlessly pursue continual improvement in the services and solutions we provide.


Our corporate profile sets out how we assist our clients to achieve their outcomes. It includes examples of how each area of our business has assisted clients to improve outcomes for their charitable purpose and beneficiaries.


​We hope that this corporate profile gives you a deeper insight into what we do and who we are. If there’s an area of your Trust that isn’t running completely to your liking the chances are we can contribute some ideas to lift performance.

Trust Management News and Articles

“Artificial Intelligence”
The Future of Finance and Accounting?

Since the creation of double entry bookkeeping 500 years ago, which was considered one of the greatest advances in the history of business, the accounting profession has not seen much innovation. However, the world of accounting is just the latest in a number of industries affected by the rise of Artificial Intelligence (AI).

AI has created a tsunami of innovation and that innovation has increasingly impacted on the accounting industry. So here are our views on the future of AI as it pertains to the accounting industry.


Profile: Grant Hope

By day, Grant Hope is Trust Management’s Chief Executive in charge of strategy and governance.


By night, you can quite literally find him with his hands in the dirt or attaching bait to a hook at his cherished Kaipara Harbour lifestyle block.

Fund News

Property Fund Purchases
Hornby Supermarket


The Trust Investments Property Fund previously announced the purchase of a Countdown supermarket in Hornby Christchurch.


The property located at 17 Chappie Place was purchased through a tender process from the listed property company, Investore and settlement occurred on 23 March.


Fund Returns


The Balanced Fund invests in the other five sector funds, maintaining a moderate risk profile with a well-diversified asset allocation of approximately 35% Fixed Interest, 35% Shares and 30% Property. The Fund has a strong focus on the distribution of income and its returns tend to be reasonably stable.

The March quarter saw investors retreat to safe havens in the face of mounting concern about trade wars and increasing political risks. Most share markets fell, while fixed interest and property markets made modest gains. During the period markets generally became more volatile.

The Fund’s return was 0.0% for the quarter, with the more defensive asset classes neutralising the falls in share markets. Despite this flat performance, the return for the March year was still 9.3%.

The Fund’s strategic asset allocation was changed in December 2016, with a lower target weighting to International Bonds (10% down from 20%) offset by higher allocations to NZ Bonds (25% up from 18%) and Australasian Shares (15% up from 12%). These changes boosted calendar year 2017’s return by around 0.8%.

The underlying investment backdrop for the Fund remains positive, with solid and synchronised economic growth, rising company profits and accommodative monetary policies. However an uncertain political environment and gradually tighter monetary policies point to higher volatility over the next year or two. Markets also need to consolidate further after the strong returns of recent years.

To 31 March 2018

Inception Date 01/06/2006


The Fund returned 1.2% for the March quarter and 8.3% for the March year. Valuations at quarter-end were little changed from those in December.

Following the purchase of two Auckland properties, 2 Freight Place and 421 East Tamaki Road, in late 2017, the Fund recently bought the Countdown Supermarket in Hornby, Christchurch for $21.5m with settlement completed on 23 March. The purchase price represents a yield of 6.3%.

The portfolio has a long weighted average lease term, now extended to 10.9 years following this latest purchase. The Fund still has surplus cash and is looking to buy additional properties, most likely in the industrial sector.

The Fund has a strong emphasis on generating regular income for investors via its quarterly distributions. The performance of the Fund is shown in the table alongside the returns of the NZX 90 Day Bank Bill Index + 2.5% as a comparison. Solid revaluation gains have underpinned the performance of the Fund in recent years.

To 31 March 2018

Inception Date 01/03/2001


The Fund returned -1.0% for the March quarter, compared to the benchmark return of -1.4%. The March year still showed a very healthy 23.0% gain, well ahead of the benchmark return of 15.5%.

During the period markets became more volatile, as investors digested rising interest rates and stronger global data. There was a growing dispersion in sector and stock returns as higher interest rates, stronger growth, and the threat of tariffs impacted sentiment.

Announcements by a2Milk, Fletcher Building, Sky TV, Summerset and CBL had a large impact on the index over the three months. a2 Milk rose 54% to be NZ's largest listed company, after its earnings increased 26% and it announced a major deal with Fonterra. Retirement village operator Summerset (up 28%) also performed strongly. These returns contrasted sharply with those of Fletcher Building and Sky TV (both down 20%). CBL’s voluntary administration was a major disappointment for investors.

With overall market valuations elevated, the Fund’s returns over the next year or two are expected to be rather lower than those seen in recent years.

The Fund has an ethical screen in place whereby stocks whose major activities involve alcohol, tobacco, armaments, pornography and gambling are excluded from the portfolio, along with companies involved in the production and/or extraction of fossil fuels.

To 31 March 2018

Inception Date 01/12/2002


The Fund returned -2.2% in the March quarter (benchmark -2.3%), to give a solid 11.6% return for the March year (benchmark 11.0%). In local currency terms, the US market was down 1.2% for the three months, while the Japanese market lost 5.8% and the UK market fell 8.2%.

Despite healthy and synchronised economic growth and a generally strong trend in company earnings, share markets lost ground as investors retreated to safe havens, amid concerns about trade wars, political risks and increased regulation in the technology sector.

Rising interest rates, relatively full valuations and the need for a period of consolidation after the strong gains of recent years suggest modest returns for most share markets over the next year or two.

The Fund invests in an indexed product that excludes companies involved in the manufacture of tobacco and controversial weapons. This product tracks the MSCI World ex-Australia Index excluding these sectors of the market. The Fund’s foreign exchange exposures are 50% hedged to NZ dollars.

To 31 March 2018

Inception Date 01/12/2005


The Fund returned 0.7% for the March quarter (benchmark 0.5%) and 4.4% for the March year (benchmark 4.6%).

Long-term yields in the New Zealand market were reasonably stable over the three months, in line with the trend in Australia, and ignoring the rising trend in the US. The yield on the Government Stock 2027 maturity closed the quarter at 2.72%, the same as at the start of the year and marginally under the 2.74% yield on US 10-year Treasuries.

The Reserve Bank left the Official Cash Rate unchanged at 1.75%, noting that monetary policy will remain accommodative for a considerable period.

Given the general trend towards (mildly) higher inflation and the zero margin between New Zealand and US yields, we remain cautious on the market, expecting long-term interest rates to rise in the coming year and offer better opportunities to lengthen the current maturity profile.

The Fund’s strategy continues to prioritise the level and stability of distributed income.

To 31 March 2018

Inception Date 01/09/2005


The Fund returned 0.7% for the quarter, in line with the benchmark’s 0.7%. The March year return was 3.3% (benchmark 3.5%).

After rising sharply in January and February, long-term sovereign bond yields fell in March as investors sought safe havens amidst the threat of trade wars and political uncertainty. The yield on US 10-year Treasuries rose 0.33% in the quarter to close at 2.74%. Yields in other markets also generally rose, if to a lesser extent.

Inflation in the US (2.2%), Europe (1.1%) and Japan (1.5%) remains low, but tight labour markets, easy monetary policies and (in the US) tax cuts may boost inflationary pressures from here. Tighter monetary conditions and increasing issuance of bonds in the US will also put upward pressure on interest rates.

Current yields are still low by any historical comparison and continue to offer little, if any, margin over inflation. We expect returns for the Fund to be modest until interest rates move somewhat higher.

The Fund invests in an index fund that invests only in sovereign securities. This product tracks the FTSE World Government Bond Index hedged to Australian dollars. A further hedge is applied to hedge the Australian dollar exposure to NZ dollars. Returns tend to lag the benchmark slightly as the cost of hedging is excluded from the benchmark return calculation.

To 31 March 2018

Inception Date 01/09/2005

Under the Financial Markets Conduct Act this communication may be deemed to be an advertisement for an offer of units. Trust Investments Management Limited is the issuer of the units to be issued under the offer to which this advertisement relates. A product disclosure statement for the offer, which sets out the terms and conditions of the offer, is available, and can be obtained at www.trustmanagement.co.nz/investment-products.