The Eastern and Central Community Trust (ECCT) has appointed Forsyth Barr to run an almost $52 million shares portfolio previously managed by Auckland boutique, Elevation Capital.
According to the 2024 ECCT annual report, the $51.8 million mandate change – amounting to almost a quarter of the charitable fund’s total assets – occurred post the March 31 balance date.
Elevation has been a long-standing feature of the Hastings-based community trust portfolio, which is advised by the Michael Chamberlain-owned consulting firm, MCA.
But in line with peer trusts, the ECCT saw a marked performance turnaround in the latest financial year after nudging a 1.5 per cent return during the previous reporting period.
“For the year ended 31 March 2024 the investment returns were 13.8%,” the annual report says. “The Trust funds are now valued at $228m, an increase of 15.94% from the previous year. ECCT is in good stead, with solid reserves and strong policies relating to its investments and finances.”
Over the 10 years to the end of March the ECCT fund reported annualised returns of about 7.8 per cent versus the benchmark 9 per cent. The trust targets a 70:30 split between growth and income assets.
ECCT, headed by David Clapperton who took over in 2022, also formed a new investment committee during the reporting period, appointing Peter Simpson as a non-voting independent adviser.
Among other compliance duties, the new ECCT committee “will consider diversifying our investment portfolio to include social impact investments to our strategic asset allocation”, the annual report says.
“The Trust retains MCA as its Investment Advisor to provide ongoing advice and recommendations over the Trust’s investments.”
Elsewhere, Community Trust South also reported more upbeat financial results with annual returns of 9.8 per cent after fees for the 12 months to March 31 compared a loss of almost 1 per cent over the 2022-23 year.
But while Trust South beat its target return of 4 per cent above inflation by 1.8 per cent, the portfolio underperformed the benchmark asset mix by 3 per cent.
The Invercargill-headquartered charitable fund, advised by Australian consulting firm JANA since January last year, also dialled up its growth exposure to 70 per cent over the 2023/24 period from the previous 65 per cent.
JANA took over from Aon as Trust South investment adviser in 2023: Aon won the consulting role in 2016, replacing then-incumbent, MCA.
Trust South global equities portfolio rose from $73.5 million as at March 31, 2023, to more than $90 million 12 months later while international fixed income holdings fell to almost $10.8 million compared to $26.5 million in the previous report.
As well, the community trust added a $16 million private credit exposure during the latest financial year.
Total Trust South assets under management increased slightly year-on-year to $246 million (2023: $239 million) but with an aim to replenish capital to $305 million.
In a release, Trust South investment committee chair, Mel Montgomery, said: “It is pleasing to be able to present this positive financial result and provide this significant support to the community, however there is a need to ensure a balanced approach is taken to rebuild the capital of the Trust for future generations in perpetuity and so the Trust has reduced its grants budget for this current year ending 31 March 2025 to $6.5 million.”