Principles for Responsible Investment

Trust Management is a signatory to the UNPRI.


The Principles for Responsible Investment commonly known as the ‘UNPRI’, is an organisation promoting the implementation of responsible investment principles.

Signing the internationally-recognised Principles for Responsible Investment allows an organisation to publicly demonstrate its commitment to responsible investment.

Signatories also have access to a wealth of information and tools for collaboration.

You can view the signatories, by using the search tools at


If you have any questions about Trust Management’s approach to responsible investments, please do not hesitate to contact us.

Trust Management News and Articles

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2019 New Zealand Charities Conference

Over 2 days in April, Anne Edwards - General Manager Finance attended the 2019 New Zealand Charities Conference, “Future prospects for charity law, accounting, and regulation”. Attending the conference reflects our commitment to having a strong voice in shaping the regulatory environment that impacts our clients.

Building on the success of 2018, this multi-disciplinary conference covered legal, accounting and related practical issues associated with the charitable sector, and aimed to:

  • Inform and educate on important topics for charities

  • Strengthen links, contacts and collaboration within the sector community

  • Share lessons learnt and best practice that have worked for others, within New Zealand and beyond

  • Stimulate discussion and input into the review of the Charities Act 2005.

Profile: Anne Edwards 
General Manager - Finance

Anne Edwards, Trust Management’s General Manager of Finance, believes her thirst for knowledge, attention to detail and passion for the stories numbers tell are the traits that allow her to excel at her job.


A newer member of the Trust Management family, Anne came to the company in 2015 with an impressive career background. With almost 30 years in the industry, she spent nearly half of her career as Associate Director at UBS New Zealand and has served a broad range of respected and well-known clientele.

Fund News


Trust Management has added its voice to the engagement initiative promoted by the NZ Super Fund to strengthen controls on social media content.

The number of investors involved in the engagement exceeds 50, and represents total assets under management of more than $4 trillion NZD.

Trust Management’s CEO, Grant Hope, said ‘We see engagement on ESG matters as an important role for investment managers, ensuring that the views of our investors are heard by the companies which they invest in'. 

Social Media Content Controls
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The Manager of the Trust Investments Property Fund confirmed on 10 May 2019, the unconditional purchase of 104-140 Neilson Street in Onehunga/Penrose for $16.4m.


The site is leased to NZ Bus, a company associated with Infratil and is utilised as a bus depot. It is a large piece of land being over 2 hectares in size located on a key arterial route. The lease has 7 years to run with the tenant having 2 x 6 year Rights of Renewal (requiring 12 months notice to exercise the renewal period).

The property has a rental review due in November and valuation advice supports that it is likely that the rental increase will reach the rental review cap of $870,000. 

The property has characteristics of a ground lease with its low level of improvements and therefore minimal operating expense exposure. This is a strategic land holding and one of the few largely undeveloped land holdings in Penrose.


Settlement date is scheduled for 10 June 2019.

Strategic Land Purchase for the Property Fund
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Non-Core Asset Sold

The Manager is pleased to advise that an unconditional contract to sell the Harbourside Centre, Porirua has been secured.


The Harbourside Centre is 50% owned with Rātā Foundation.  Both parties identified the property as a non-core asset within our respective portfolios.  The sale price is $7.5m (100%) with settlement due at the end of June.  The sale price represents a premium to the asset valuation.  In recent years the Manager has been repositioning the property for disposal – a key initiative was to Unit Title the retail premises which was completed in November.


Fund Returns


The Balanced Fund invests in the other five sector funds. It has a moderate risk profile with a well-diversified target asset allocation of 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 Fund returned 5.0% for the March quarter, with strong returns from Shares complemented by continued solid performance from Property and Fixed Interest. The return for the 12 months to March 2019 was 9.4%.

The quarter was the best for global shares since 2010 as investors remained confident that central banks would continue to offer monetary policy support and underpin earnings growth. Bond markets also rallied strongly amid signs of deteriorating global growth, with yields falling close to multi-year lows. Property companies benefited from the further fall in interest rates.

Global economic growth is slowing and corporate profit growth rates are easing. The investment environment remains supported by easy monetary policies although US policy is now close to neutral. Valuations are not unreasonable as long as inflation and interest rates remain at low levels. After the recent rally across all asset classes, we expect returns to be more modest from here.  

To 31 March 2019

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Inception Date 01/06/2006



The Fund returned 1.5% in the March quarter to give 11.8% for the 12 months to March 2019, reflecting solid rental income and capital growth in the portfolio. A key milestone was achieved in December with the Fund growing to over $200m.

The emphasis for the Fund over the quarter was the “on-boarding” of the four properties purchased at the end of 2018, being the industrial property at 105 Wiri Station Road and three commercial properties in Christchurch. These properties provided additional diversification to the Fund and added 17 new tenants to the portfolio.

Following the lease on the Countdown supermarket at Lynfield, Auckland being extended to 2027, only 3.7% of the rental income is exposed to lease expiry risk in 2019. This aligns with the low risk nature of the Fund, with lease expiries spread across a wide range of maturity years.

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

To 31 March 2019

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Inception Date 01/03/2001



The NZ market (S&P/NZX 50 Portfolio Index) delivered a very strong 11.0% for the quarter, more than reversing the losses of the December quarter. The rally in the market was prompted by a swift reversal in US monetary policy and added stimulus in China and occurred despite some poor earnings results for many domestic companies.

The sharp drop in NZ 10-year bond yields from 2.8% four months ago to 1.8% prompted significant demand for higher-yielding stocks, notably in the property, infrastructure and electricity sectors.

The Australian equity market also performed strongly (+10.9% in AUD and +10.1% in NZD) over the quarter, registering its best quarterly gain since 2009.

The Fund returned 9.7% for the quarter, underperforming its benchmark. Underweightings in utilities, real estate and Fisher & Paykel Healthcare were a drag on performance, as were holdings in Kathmandu (-18%), Abano Healthcare (-39%) and Syrah Resources (-29%). This was partly offset by a significant recovery in premium growth stocks, notably a2 Milk (28%), Mainfreight (16%) and Macquarie Group (18%). Holdings in technology companies Vista (31%), Xero (13%), and Serko (12%) also boosted performance.

The most recent reporting and annual general meeting season in NZ on balance provided negative surprises, especially from companies with a more domestic focus, such as Z Energy, Sky Network TV, Heartland Group, and Fletcher Building.

During the quarter the Fund added to its Spark and Contact Energy positions, funded from exiting Challenger and reducing investment in Air New Zealand, Tourism Holding, Metlifecare, Fletcher Building, Oceania and Restaurant Brands.

To 31 March  2019

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Inception Date 01/12/2002


Share markets rebounded strongly in the March quarter, resulting in the best quarterly return for global shares since 2010. Investors remained confident that central banks would continue to offer policy support and underpin earnings growth. Despite a slowdown in global economic growth and corporate earnings, no Brexit resolution and no US/China trade deal, accommodative monetary policy held sway during the quarter as low inflation persisted and bond yields plunged.

The Fund returned 11.4% in the quarter (benchmark 11.6%) to give a return of 8.9% for the 12 months to March 2019 (benchmark 8.8%). In local currency terms, the US market (S&P 500 Index) rose 13% and the other major markets were up 5-10%. The NZ Dollar appreciated about 2% in the quarter, slightly reducing returns to investors.

Monetary policy remains accommodative and valuations are still reasonable given current interest rates. The speed of the recent rally is nonetheless a little disconcerting. We anticipate more modest returns from here as earnings growth moderates, accompanied by episodes of volatility.

The Fund invests in an indexed product that excludes companies involved in the manufacture of tobacco, controversial weapons or nuclear weapons. Relative to the MSCI World ex-Australia Index, the Fund also targets a 20% improvement in the ESG score as well as a 50% reduction in current and potential carbon emissions. The Fund’s foreign exchange exposures are 50% hedged to NZ dollars.

To 31 March 2019

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Inception Date 01/12/2005


The NZ Fixed Interest market surged ahead in the March quarter, extending the strong rally since June 2018. The benchmark S&P/NZX NZ Government Stock Index returned 3.1%, with the yield on the 10-year Government Stock 2029 maturity plunging to 1.81%, 0.6% below the corresponding US Treasury 10-year maturity and under the Reserve Bank’s 2% inflation target.

The Fund returned 2.6% in the quarter (benchmark 3.1%) to give a 6.6% return for the 12 months to March 2019 (benchmark 7.4%).

Lower yields offshore, prompted by weak manufacturing data out of Europe, China and Japan, and a soft housing market in the US, were important factors in the rally. Adding fuel to the fire, the Reserve Bank kept the Official Cash Rate (OCR) at 1.75%, but noted that, given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of the next move was down. Adding fuel to the fire, the Reserve Bank kept the Official Cash Rate (OCR) at 1.75%, but noted that, given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of the next move was down” as confirmed by the 25bp cut on 8 May 2019


Recent economic indicators show NZ’s economic growth is moderating, with the latest data showing GDP growth of 0.6% in the December quarter and 2.8% for the calendar year. However the labour market remains strong, with 60,000 more people employed than a year ago. Low business confidence, a slower housing market and lower net migration are constraining activity but increased public spending in health, housing and infrastructure is offsetting much of this.


A feature of the market in the quarter was the maturity of a large number of securities, which has lengthened the duration of the market from about 4.8 years to 5.6 years.


We view the current market as offering little value at current yields, given they are significantly below the midpoint of the Reserve Bank’s 1-3% inflation target range.

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

To 31 March 2019

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Inception Date 01/09/2005


Global bond markets performed strongly in the March quarter as the world’s major central banks either indefinitely delayed tightening monetary policy (US) or extended their accommodative policies (European Central Bank, Japan). Weak manufacturing data out of China, Germany and Japan, a low inflation reading out of the US, further Brexit uncertainty and no sign of a US/China trade agreement all contributed to the bullish sentiment.

Long-term sovereign bond yields declined by around 0.3% in most markets, the yield on US 10-year Treasuries falling from 2.72% to 2.41%. 10-year yields in Japan and Germany turned negative. At quarter end, negative-yielding bonds surpassed US$10 trillion, about 20% of worldwide investment-grade debt.

The Fund returned 2.5% for the quarter (benchmark 2.5%), giving a return of 4.2% for the 12 months to March 2019 (benchmark 4.5%).

Despite global inflation remaining constrained, it is difficult to see much value in global bond markets at current yields. In time the gradual reversal of quantitative easing in the US and Europe and the need to fund an annual US budget deficit of around US$1 trillion will likely put some upward pressure on long-term interest rates. We expect modest returns from the Fund until interest rates move 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 Fund’s 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 2019

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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