Establishment

It was agreed at the last conference in Christchurch, that due to the ongoing pressure on funding from sponsors, the Nuffield Trust would establish and grow a Capital Fund. This Capital Fund has been established with the ultimate objective of providing an independent funding stream for at least one scholarship per annum. The initial target is in the vicinity of some $700,000 in today’s real terms.

The fund was initially established with a bequest of $45,000 from a Mrs Grace White in England. Since then, we have received a very generous donation from the organising committee of the International Conference in Rotorua, together with various donations from some 17 scholars and their families.

The fund now stands at just on $203,000 and on behalf of future scholars and the current Trustees, we would like to thank those of you who have supported the challenge that has been set, that will contribute to the ongoing sustainability of the Nuffield organisation in New Zealand.

Some of the commitments that have been made are ongoing and some may not be realised until some future point in time (bequests); but we would like to take this opportunity to remind you all of the aspirations this organisation has in this regard, and to seek your continued support with this project. Nuffield’s success at providing an opportunity for members to develop their leadership potential is unquestionable and we must ensure that it is recognised and appreciated and to do that we must also be seen to be “doing our bit” in terms of funding.

Investment

The Trustees have until now had the funds invested in a Term Deposit. The time has now come to investigate a more appropriate vehicle for that investment.

To this end, the Trustees have engaged the North Island Investment Advisory Manager of FMG, to develop and implement an appropriate investment strategy. This strategy will recognise the Trustees investment obligations under S13E of the Trustees Act and take into account the need:

- for diversity with an agreed measure of conservatism
- to maintain and preserve the real value of the capital fund as well as the income stream
- to optimise long term returns while minimising risk and maintaining liquidity
- to monitor and report performance on a regular basis and rebalance the portfolio as circumstances change
- to employ “experts” in the field to advise and recommend and then take any action as directed by the Trustees.

FMG have been selected to quote on providing this service for us due to their affinity with the rural sector, their performance as investment managers which rates amongst the best in New Zealand, and their transparent fee structure.