As you are aware from last week’s bulletin, as a result of the generosity of Mal McLennan and other members of the club, we have been able to increase to the Trust capital by $102,500, whereby now stands at approximately $220,000.
As was advised at the Club’s AGM last December, the Trustees have resolved to undertake investment of the capital with the aim of increasing both income and capital growth.
The first initiative being a loan of of NZ$25,000 to SPBD Singapore to be on lent as micro-financing for particular purposes to individuals in the Pacific Islands, expected to be in Fiji. The loan will be for a period of 3 years with an interest rate of 6%. The Trustees have received confirmation that the Trust’s tax free Charitable Status is not exposed by the making of the loan outside New Zealand.
The Trustees are in process of completing the loan documentation with the intention that the loan be advanced within the next month.
The Trustees are cognisant of the need to diversity investments other than through the SPBD loan and bank term deposits and to seek capital growth of the Trust fund. Representatives of the Trust have met with a Fund investment advisor and the Trustees have resolved to invest up to N$100,000 in a diversified income fund being a conservative fund managed through the investment advisors firm. These funds can be redeemed on short notice.
The Trustees are in the process of completing all documentation and expect the initial investment to be made within he next month with funds to be invested as term deposits mature.
As to the balance of capital, being approximately $95,000 the Trustees will be arranging for this sum to be initially placed on term deposit while they consider it’s appropriate investment but ensuring diversification of the Trust’s investments.