END OF YEAR   UPDATE

 

Trust Management launches 101 series

 

Trust Management provides services to a diverse range of charities. The services we offer cover a wide range of disciplines and the Trustees who serve on the Boards of our clients come from varied backgrounds, some with in-depth commercial knowledge in specific areas others committed volunteers who have had little exposure to the investment or business world.

 

It is with this diversity of knowledge in mind, that Trust Management is developing an educational series of papers, aimed at giving a basic oversight of key topics using simple terminology, in easy to understand language. These papers are not intended to be the definitive guide on their given topic, but seek to provide enough explanation that readers will be able to understand the overall concepts of each topic.

How Unit Pricing Works
 

This article seeks to explain how unit pricing works, and how the use of unit pricing and registry systems provide equitable outcomes for all investors and/or account holders.

 

Bond Basics
 

Most investment portfolios of charities have an allocation to bonds. Bonds are less risky than shares, but may still generate negative returns from time to time.

 

A bond can be thought of like a loan...

 

 

Trust Management News

Kevin Third, Diocesan Manager 

Anglican Diocese of Auckland

 

Kevin Third, Diocesan Manager for the Anglican Diocese of Auckland passed away unexpectedly on Sunday, 6 December 2015.

 

Trust Management worked closely with Kevin on a number of matters, most recently in relation to the implementation of a centralised accounting service for Ministry Units. Kevin's contribution to the Diocese was significant, and he will be sadly missed by the staff of Trust Management and the Diocese.

 

Kevin was well respected amongst the Diocese and the wider Church as evidenced by those who attended his funeral, in some cases travelling considerable distances to show their respects.

 

Our thoughts are with Kevin's family and friends, as well as with the staff of the Diocesan office during this difficult time.

 

Ministry Accounting Service

 

Trust Management was appointed in July 2015 by the Anglican Diocese of Auckland to implement a centralised accounting solution to allow for the consolidation of more than 80 ministry units within the Diocese.

 

The move to a centralised accounting service was in response to changes in legislation and regulation, through the recent amendments to the Finanical Reporting Act and the introduction of Public Benefit Entity accounting standards.

 

Implementing a centralised accounting service over such a geographically spread area, to a wide range of largely volunteer treasurers with varying degrees of expertise, and in such a short time frame was a challenge of significant proportions.

 

We are pleased to announce that the project is progressing very well, with nearly 65% of ministry units choosing to opt into the centralised system early, with the remaining ministry units scheduled to come on-board in early January.

 

Though the project remains ongoing, it is timely to acknowledge the volunteer treasurers who have worked with us to ensure the project progresses succesfully. 

John Williams Appointed to SmartShares Board

 

The NZX recently announced that it has appointed John Williams from Trust Management as an independent director to the stock market operator's SmartShares board.

 

Trust Management is pleased the NZX have recognised John’s skills and expertise with John's appointment which reflects the quality and professionalism of the executive team at Trust Management.

 

I am sure you will join us and congratulate John on this appointment.

 

 

Fund News

Property Fund Acquistion

 

We are pleased to announce that The Warehouse Limited (TWL) has triggered its option under the current lease for the expansion of its South Island Distribution Centre located in the IZone industrial subdivision - Christchurch. The Executive have been in discussions with TWL for some time regarding this expansion that will see the use of the vacant site adjoining the current property.  Works are expected to commence early in 2016 with the building being completed in early 2017. The mechanism for the development is low risk with TWL providing an agreed return on the land and building cost. The Fund is holding funds for the works.​

 

A new 10 year lease will be entered into for the whole property from practical completion of the works in 2017. The new lease will positively contribute to further extending the Fund's weighted average lease term.

 

We will make further announcements in the New Year once the documentation and terms have been finalised.

Balanced Fund Review

 

On an annual basis we review the investment strategy and asset allocation of each of our Funds. We recently completed our review of the Balanced Fund, a copy of which is available via the link below.

 

The review concludes that the Fund is highly suited to charitable investors who require a balanced, highly diversified investment portfolio with a strong focus on income.

 

The three and five year income and capital returns of the Balanced Fund have achieved its investment objectives and exceeded our expectations.

 

Fund Returns

 

We will distribute a short newsletter in January once the December unit prices have been finalised. Returns and Unit Prices are also published on a monthly basis to our website, click on the button to follow the link.

 

 

 

Christmas Office Closure

 

 

It has been a busy year, both for our staff and our clients, but a very rewarding and enriching year at the same time.

 

Our office will be closing on Wednesday, 23 December 2015 and reopening on Tuesday, 5 January 2016.

 

From 5 January 2016 to 11 January 2016 our office will be open but operating with reduced staffing levels, as we encourage our staff to have a well earned break with family and friends.

 

We look forward to meeting up with our clients and investors again in the New Year, and we wish you all the best for the festive season.