The Otago Community Trust (OCT) has reported its annual results, and is pleased it has maintained its budgeted granting activity up to March 31, 2022, despite the challenging time for markets and the trust’s investment portfolio.

 The conflict in Eastern Europe, volatile exchange rates, rising inflation, and share markets weakening notably in the last quarter of the financial year resulted in a lower-than-expected level of growth in the value of the trust’s investment portfolio, trustees said.

 Trust chief executive Barbara Bridger said despite the challenging environment, grants approved for the year totalled $10.3M, up from $8.6M in 2021.

“Over the past year we have continued to work with our communities to support significant capital projects, social service and welfare programmes, and community response activities.”

The trust was pleased to have approved $4.6M into several capital projects across the region, she said.

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 Trust senior investment consultant David Kandziora from Russell Investments said while there continued to be uncertainty in investment markets, the trust was focused on a long-term approach.

 “With the current asset allocation, we expect to see a negative return one year in every five, on average. The trust has achieved an annual investment return of approximately 7.3 per cent over the past 10 years, beating its benchmark,” David said.

OCT’s investment return for the year was 0.3 per cent - down from 21.8 per cent in 2021. Granting of $10.3M saw net assets reduced to $308.6M, down from $319.2M in 2021.

A significant proportion of the OCT’s global equities investments were also moved into a sustainable shares fund in December 2021, reducing exposure to carbon emissions and divestment from fossil fuel reserves within its global equities investments.

 This move has further improved the OCT’s overall environmental, social, and governance (ESG) investment profile.

 The financial results were formally presented at Otago Community Trust’s annual public meeting in Alexandra on Tuesday (October 4).

OCT chair Diccon Sim said the community owned charitable trust has an important role in supporting communities, and it remained confident its grants budget of $10M for the next financial year was appropriate.

Prior to the annual public meeting, trustees held their regular September board meeting where over $500,000 in community grants were approved.

OCT is a philanthropic organisation which applies its funds for charitable and other purposes to benefit the community. The trust has its origins in the Dunedin Savings Bank, established in 1864 by public spirited citizens seeking to encourage thrift within the community, and distribute surplus profits to charitable causes.